New York State and Local Retirement System - Comparison of ERS Key Benefits

Tier 6 Benefit Information

Comparison of ERS Key Benefits

Tiers 3 & 4	Tier 5	Tier 6
Membership Dates
Tier 3: July 27, 1976 through August 31, 1983 Tier 4: September 1, 1983 through December 31, 2009	January 1, 2010 through March 31, 2012	April 1, 2012 and after
Vesting
After earning 5 years of service credit	After earning 10 years of service credit	After earning 10 years of service credit
Employee Contributions
3% of gross salary until 10 years of membership or service credit	3% of gross salary for all years of public service except: State Correction Officers whose contributions are limited to 30 years Uniformed Court Officers and Peace Officers employed by the Unified Court System (UCPO) who contribute 4 percent for all years of public service	Members contribute for all years of public service From April 1, 2012 — March 31, 2013, 3% of gross salary, except Uniformed Court Officers and Peace Officers employed by the Unified Court System who contribute 4 percent Beginning April 1, 2013, contribution rate based on annual salary See the Tier 6 ERS member contributions.
Retirement Age
Full benefits at age 62, or at age 55 with at least 30 years of credited service Reduced benefits at age 55	Full benefits at age 62 Reduced benefits at age 55 (UCPO’s receive full benefits at age 55 with at least 30 years of creditable service)	Full benefits at age 63 Early retirement at age 55 with reduced benefits
Reductions for Early Retirement
27% reduction at age 55 See plan booklet for entire benefit reduction chart.	38.33% reduction at age 55 See plan booklet for entire benefit reduction chart.	6.5% for each year date of retirement precedes age 63
Final Average Salary (FAS) Calculation
The average of the wages earned during the three highest consecutive years of service, subject to limitations	The average of the wages earned during the three highest consecutive years of service, subject to limitations	The average of the wages earned during the five highest consecutive years of service, subject to limitations
FAS Limitation
The wages in any year cannot exceed the average of the previous two years by more than 10 percent.	The wages in any year cannot exceed the average of the previous two years by more than 10 percent.	The wages in any year cannot exceed the average of the previous four years by more than 10 percent.
Payments Not Included in FAS
Unused sick leave Payments made as a result of working vacation Any form of termination pay Payments made in anticipation of retirement Lump sum payments for deferred compensation Any payments made for time not worked	Unused sick leave Payments made as a result of working vacation Any form of termination pay Payments made in anticipation of retirement Lump sum payments for deferred compensation Any payments made for time not worked	Unused sick leave Payments made as a result of working vacation Any form of termination pay Payments made in anticipation of retirement Lump sum payments for deferred compensation Any payments made for time not worked Lump sum payments for accumulated vacation Wages in excess of the Governor’s salary, currently $179,000 For members paid by three or more employers, wages paid by more than two of those employers
Overtime Limit ¹
None	Overtime pay that exceeds the limit cannot be used in the FAS calculation For calendar year 2010, the limit was $15,000 The limit increases 3% per year for subsequent years For calendar year 2013, the limit is $16,390.91	Overtime pay that exceeds the limit cannot be used in the FAS calculation For fiscal year 2013, the limit is $15,000 The limit is indexed for inflation annually based on the Consumer Price Index
Service Retirement Benefit Calculation
With <20 years of service: 1.66% of FAS times years of credited service With 20 years of service: 2% of FAS times years of credited service plus 1.5% of FAS for years of service > 30	With <20 years of service: 1.66% of FAS times years of credited service With 20 years of service: 2% of FAS times years of credited service plus 1.5% of FAS for years of service > 30	With <20 years of service: 1.66% of FAS times years of credited service With 20 years or more of service: 35% of FAS for 20 years of service plus 2% of FAS for years of service > 20
Sick Leave Credit (Section 41(j) RSSL)
Eligible members may receive service credit for up to 165 days (200 days for some members) of unused, unpaid sick leave days at retirement.	Eligible members may receive service credit for up to 165 days (200 days for some members) of unused, unpaid sick leave days at retirement.	Eligible members may receive service credit for unused, unpaid sick leave days at retirement. The maximum number of creditable sick leave days is generally 100, but can be 165 or 200 in certain cases.

¹ Updated as of 2/13

(Rev. 4/12)