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RETIREMENT
BENEFITS
New York State law mandates participation in a retirement system provided you are hired in a permanent status. A new staff member has 30 days from his/her appointment date to choose a retirement program, and the choice is irrevocable. If no choice is filed within 30 days, the law mandates that the member be assigned to the City of New York Teachers' Retirement System.
If you are already a member of the NYC TRS or the NYC ERS, you may remain in that program.
If you are receiving a pension from NYS or any of its political subdivisions, you may be required to obtain approval to work, but you cannot participate in a New York State or New York retirement program.
THE CITY OF NEW YORK TEACHERS' RETIREMENT SYSTEM (TRS)
TIER IV
|
Type of Plan |
Defined Benefit Plan: Benefits are based on age, final average salary
(FAS) and years of service. |
| Vesting |
Five (5) years. |
|
Retirement Eligibility |
Minimum: Age 62 and 10 years of credited service OR age 55 with 15 years of service at an actuarially reduced rate or age 55
with 30 years or more of service with no reduction. |
|
Contribution Rates |
Employee pays 3% of regular compensation on a federally tax
deferred basis. Employer contributes a lump sum annually to its pension fund. The annual amount is determined by the actuary of
TRS. |
|
Retirement Allowance |
For employees retiring with 25 years of service: 1.67% x FAS (average salary paid for highest three consecutive years) multiplied by years of service. For years of service in excess of 25 years: 2% multiplied by FAS multiplied by years of service. |
| Tax-Deferred Annuity
(TDA) |
Employees have the option to join a tax-deferred annuity 403 (B) program which allows employees to set aside pre-tax dollars subject to a maximum exclusion allowance set forth by the IRS. |
|
Disability Benefits |
A member of TRS is eligible to retire for Ordinary Disability if he or she has 10 or more years of service credit. Benefit schedules and formulas spelled out in the laws relating to Tier IV. |
|
Death Benefit |
1/12 of last year's salary earned: salary x years of service to a maximum of 36 years or one year's salary multiplied by years
of service to a maximum of 3 years which is reduced actuarially after age 61. |
| Portability |
Service credit
transferable only to another NY public defined
benefit retirement plan. Member contributions
are refundable upon request, if one leaves
prior to vesting. |
| Loans |
Available, on member contributions. |
THE OPTIONAL RETIREMENT PROGRAM (ORP)
TEACHERS' INSURANCE ANNUITY ASSOCIATION/COLLEGE RETIREMENT EQUITIES FUND
TIER V
|
Type of Plan |
Defined Contribution Plan: Benefits are based on the amounts contributed by the employee and employer and the success of investments. |
| Vesting |
After the first 13 months of continuous employment, with contributions from the date of appointment. Immediate with an open TIAA-CREF contract. |
| Retirement Age |
Minimum: None |
|
Contribution Rates |
New ORP participants pay 3% of salary on a federally pre-tax basis. Employer pay 8% of salary for the first seven years of employment and 10% thereafter. |
|
Retirement Allowance |
Retirement benefits are based on your annuity accumulations, age retirement, and the income option you select. |
|
Tax-Deferred Annuity (TDA) |
Employees may participate in a supplemental retirement annuity program, 403 (B), which allows employees to set aside pre-tax dollars subject to a maximum exclusion allowance set forth by the IRS. |
|
Disability Benefits |
Members may choose to retire and begin annuity income at any
time. However, city-provided health benefits is dependent on appointment date, years of service CUNY service and other provisions of the Agreement between CUNY and
PSC-CUNY. |
|
Death Benefit |
Total amount in retirement and TDA accounts. |
| Portability |
Accumulations are transferable to more than
3600 educational institutions that have TIAA member contributions are refundable upon
request, if one leaves prior to vesting. |
| Loans |
Available, on member contributions. |
|
Alternate Funding Vehicles (AFV) |
Available for diversification of your ORP
investments. At present, the AFV's are Guardian
and MetLife. Please contact the Office of Human Resources. |
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM (NYCERS)
TIER IV
|
Type of Plan |
Defined Benefit Plan: Benefits are based on age, final average salary
(FAS) and years of service. |
| Vesting |
Five (5) years. |
|
Retirement Eligibility |
Full Pension: Age 62 and 10 years of credited service. Employees
who joins 57/10 plan may elect to receive a reduced pension at age 57 with 10 years credited service. |
|
Contribution Rates |
9/1/83 - Employee pays 3% of regular compensation on a federally deferred basis. Employer contributes a lump sum annually to its pension fund. The annual amount is determined by the actuary of
TRS.
7/1/92 - Present - Employee pays 5.85%. |
|
Retirement Allowance |
For employees retiring with 25 years of service: 1.67% x FAS (average salary paid for highest three consecutive years) multiplied by years of service. For years of service in excess of 25 years: 2% multiplied by FAS multiplied by years of service. |
|
Tax-Deferred
Annuity (TDA) |
403 (B) plan provided by Copeland Companies. |
|
Disability Benefits |
A member of ERS is eligible to retire for Ordinary Disability if he or she has 10 or more years of service credit. Benefit schedules and formulas spelled out in the laws relating to Tier IV. |
|
Death Benefit |
Death Benefit Plan I - One month's salary for each year of credited service up to a maximum of three years' salary or
Death Benefit Plan II - maximum benefit of three years' salary after three years of credited service. |
| Portability |
Service credit transferable only to another NYC
public defined benefit retirement plan. Member
contributions are refundable upon request, if one
leaves prior to vesting. |
| Loans |
Available, on member
contributions.
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