State Correction Officers and Security Hospital Treatment Assistants Plan
For ERS Tier 3, 5 and 6 Members (Article 14-CO)
Tier 3 and 5 members are required to contribute 3 percent of your reportable earnings toward your retirement benefits. Effective October 1, 2000, the 3 percent contributions required of Tier 3 members will be discontinued when you have accrued either ten years of service credit or have been a member of the Retirement System for ten years after your date of membership. Tier 5 members are required to contribute 3 percent of your reportable earnings toward your retirement benefits until you retire or have 30 years of service credit, whichever occurs first.
Tier 6 members are required to contribute a specific percentage of your reportable earnings (see chart below). During the first three years of membership, your contribution rate is based on your annual wage, as provided by your employer, on your Membership Application. After this three-year period, your contribution rate will be based on what you actually earned two years prior. For part-time employees, your contribution rate is based on your annualized wage. Contribution rates are set April 1 of each year. Regardless of whether you work on a full- or part-time basis, however, the amount of your contribution is determined by applying your contribution rate to your current gross reportable earnings. New York State correction officers’ contributions are limited to 30 years of service.
|Annual Wage||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%|
If you are employed by more than one participating employer, once you join the Retirement System, all earnings and service earned in connection with all employment must be reported to this System, even if your membership is only mandatory with one.
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.