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Date: March 18, 2014

Bulletin Number: 1314

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Subject

Tier 6 Retirement Contribution Rate Changes

Purpose

To describe the various retirement systems actions and agency responsibility regarding Tier 6 contribution rates.

Affected Employees

Employees enrolled in Tier 6 in the following Retirement Systems:

  • New York State Employees Retirement System (7Y)
  • Police and Fire Retirement System (7W)
  • New York City Teachers Retirement System (7S)
  • New York City Employees Retirement System (7U)
  • New York City Education Board Retirement System (7T)

Effective Date(s)

Institution Paychecks Dated April 3, 2014
Administration Paychecks Dated April 9, 2014        

Background

On March 16, 2012, the Governor signed legislation creating Tier 6. This new tier applies to employees joining a retirement system after March 31, 2012.
Effective with the first checks in April 2014, the legislation requires the employee contribution rate to be based on the employee’s annual wage.

The employee contribution rates are:


Wages

Contribution Rate

$45,000 or less

3%

$45,000.01 to $55,000

3.5%

$55,000.01 to $75,000

4.5%

$75,000.01 to $100,000

5.75%

More than $100,000

6%


OSC Actions

 

NYS Employees Retirement System (7Y) and Police and Fire Retirement System (7W)

OSC will automatically process the input file from the retirement systems to update the employee’s payroll record. This will reflect the appropriate 2014 Tier 6 retirement contribution rate based on the employee’s annual wage. No agency action will be necessary.

NYS Teachers Retirement System (7X)

Information regarding contribution updates will be issued in a separate bulletin for the NYS Teachers Retirement System. Tier 6 contribution rate changes will become effective in July 2014.

TIAA-CREF Retirement System (7Z)

Agencies should refer to Bulletin No. 1313 for information regarding the Tier 6 contribution rate changes for employees enrolled in the TIAA-CREF Retirement System (7Z).

Agency Actions

CUNY agencies will receive certification letters from the New York City Teachers Retirement System, New York City Employees Retirement System and the New York City Education Board Retirement System containing the new contribution rates for affected Tier 6 employees.  Agencies will be responsible for inserting a new row on the Retirement Plans Page to update the employee rates accordingly in PayServ. When updating the retirement records, please be sure to re-enter the employee’s election date.

Questions

Questions concerning this bulletin should be emailed to the Payroll Deduction mailbox.