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Office of the New York State Comptroller’s Seal

NYS Comptroller

Thomas P. DiNapoli

Coordinated Plan

For ERS Tier 3 and 4 Members

(Articles 14 and 15)

Contributing Toward Your Retirement

Effective October 1, 2000, you are required to contribute 3 percent of your gross earnings toward your retirement benefits, until you either accrue ten years of service credit or have been a member of the Retirement System for ten years after your date of membership.

Under Internal Revenue Code Section 414(h) (as of July 1, 1989), your required contributions are tax-deferred until they are distributed to you. These contributions are reportable for federal income tax only when you withdraw or retire from the Retirement System. Therefore, your contributions are:

  • Not reported as wages for federal income tax;
  • Reported as wages for New York State and local income taxes;
  • Reported as wages for Social Security;
  • Reported as wages to the New York State and Local Employees’ Retirement System, and used in the calculation of all benefits paid by the Retirement System; and
  • Calculated on your full gross earnings, before any reductions for any other tax-deferred plan.