For ERS Tier 3 and 4 Members
(Articles 14 and 15)
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.