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Active Members
Chapter 105 Retirement Incentive Fact Sheet
Chapter 105 of the Laws of 2010, a retirement incentive for certain public employees, provides NYSTRS participating employers with the option to offer Part A or Part B, or both parts, as described below. School districts may also elect not to offer either part of the incentive. Eligible members who retire in the open periods offered may be granted the benefits of only one of these parts or the benefit offered under Chapter 45 of the Laws of 2010.
Part A – Traditional State Incentive. (Employer must elect and bear full cost of election.)
|
School Districts, BOCES & Charter Schools |
Community Colleges* & Fashion Institute of Technology |
SUNY |
Schools for the Deaf and Blind & the Education Department |
|---|---|---|---|---|
Election Deadline |
7/30/2010 |
8/31/2010 |
8/31/2010 |
8/31/2010 |
Open Period (must be at least 30 days but not more than 90 days) |
6/02/10, or the date of election if later, not to extend beyond 8/31/2010 |
As early as 6/02/2010 but cannot extend beyond 12/31/2010 |
As early as 6/02/2010 but cannot extend beyond 12/31/2010 |
As early as 6/02/2010 but cannot extend beyond 9/30/2010 |
Savings |
Savings are required but positions do not need to be abolished |
Savings are required but positions do not need to be abolished |
Savings are required but positions do not need to be abolished |
Part A, Section 8 requires elimination of positions with narrow exceptions. Please contact your employer for more specific information. |
Billing |
5 years beginning 2011-2012 OR 1 year in 2011-2012 |
5 years beginning 2011-2012 OR 1 year in 2011-2012 |
5 years beginning 2011-2012 OR 1 year in 2011-2012 |
5 years beginning 2011-2012 OR 1 year in 2011-2012 |
*An election made by a community college to participate in the retirement incentive is subject to the approval of its sponsor.
Under Part A, eligible members will receive 1/12 of a year of retirement credit for each year of service (excluding Article 19 service) to a maximum of 3 years. In general, the pension factor limitation for Tier 1 and Tier 2 members is 85% under this incentive.
Eligibility
Members are eligible to retire under Part A if they:
- Are in an eligible position targeted by their employer.
- Are age 50 or older with at least 10 years of service, or at least age 55 or older with 5 or more years of service, or Tier 1 with 35 years of service and otherwise eligible for retirement.
- Were in "active service" on February 1, 2010, and have remained in continuous "active service" to June 2010 or to the date immediately prior to the commencement of their open period. "Active service" means being paid on the payroll, or a leave of absence with pay, or on an approved leave without pay not to exceed 12 weeks.
- Notify their employer of their intent to file under the incentive at least 21 days prior to the end of the open period.
- File their service retirement application with NYSTRS up to 90 days before their effective date of retirement, or as late as the date of retirement. The date of retirement must be during the open period set by the employer, as described above.
- Do not participate in Part B or Chapter 45.
Additional details on targeted positions can be found in the abstract of relevant positions regarding Part A of Chapter 105.
Chief Administrative Officers are not eligible for the incentive.
Reductions
Retirement reductions are based on age and service credit at retirement. Tier 1 members with less than 35 years of total service and Tier 2, 3 & 4 members with 30 or more years of service will have their pensions reduced by 5% for each year retirement precedes age 55. Tier 2, 3 & 4 members with less than 30 years will have their retirement reduced by 6% for each year retirement precedes age 62 and by 3% for each year retirement precedes age 60. All reductions are prorated. Tier 3 members must retire under Tier 4.
Waiver of Local Incentive
Unless your employer chooses to grant an exemption, you must waive any local retirement incentive. Payments for unused sick leave or vacation available under the provisions of your collective bargaining agreement generally may be paid.
Resolutions
Must be adopted by the governing authority by the date outlined above and sent to the System as soon as possible after the adoption by the clerk of the board. See the list of employers participating in Part A and the window period for each.
Affidavit
The list certifying those eligible for the state incentive must be signed by the Chief Administrative Officer and returned to the System as soon as possible after the open period begins. Affidavits cannot be accepted prior to the commencement of the open period elected by the district.
Part B – 55/25 Incentive (Employer must elect and bear full cost of their Part B election, which is different from past incentives.)
|
School Districts, BOCES & Charter Schools |
Community Colleges* & Fashion Institute of Technology |
SUNY |
Schools for the Deaf and Blind & the Education Department |
|---|---|---|---|---|
Election Deadline |
7/1/2010 |
9/1/2010 |
9/1/2010 |
9/1/2010 |
Open Period (must be 90 days in length) |
6/02/10, or the date of election if later, not to extend beyond 8/31/2010 |
10/01/2010 - 12/31/2010 |
As early as 06/02/2010 but cannot extend beyond 9/30/2010 |
As early as 6/02/2010 but cannot extend beyond 9/30/2010 |
Billing |
5 years beginning 2011-2012 OR 1 year in 2011-2012 |
5 years beginning 2011-2012 OR 1 year in 2011-2012 |
5 years beginning 2011-2012 OR 1 year in 2011-2012 |
5 years beginning 2011-2012 OR 1 year in 2011-2012 |
*An election made by a community college to participate in the retirement incentive is subject to the approval of its sponsor.
Eligibility
No additional credit is granted. Instead, Part B permits eligible Tier 2, 3 and 4 members to retire with an unreduced benefit if they:
- Are at least age 55 and credited with a minimum of 25 years of service but less than 30 years (including Article 19). Chief Administrative Officers are not eligible for the incentive.
- Were in "active service" on February 1, 2010, and have remained in continuous "active service" to June 2010 or to the date immediately prior to the commencement of their open period. "Active service" means being paid on the payroll, or a leave of absence with pay, or on an approved leave without pay not to exceed 12 weeks.
- File a service retirement application with NYSTRS up to 90 days before their effective date of retirement, or as late as their date of retirement. The date of retirement must be during the open period set by the employer, as described above.
- Do not participate in Part A or Chapter 45.
See the list of employers participating in Part B and the window period for each.
Local Incentive
There is no requirement under Part B to waive local retirement incentives. Payments for unused sick leave or vacation available under the provisions of your collective bargaining agreement may also be paid.
If an employer declares a member eligible under both Part A and Part B, the member receives the better of the two benefits, not both.
Chapter 105 FAQs
You've got questions, we've got answers. Read frequently asked questions and answers about Chapter 105 – Part A and Part B.
How to Apply for Retirement
If you are eligible for the retirement incentive, you may file your service retirement application with NYSTRS up to 90 days before your effective date of retirement, or as late as your date of retirement. Your date of retirement must be during the open period elected by your employer, as described above. If the application is mailed by registered or certified mail, it is considered received on the date it was postmarked provided it is actually received by NYSTRS.
You can print an Application for Service Retirement (RET-54) from our Web site or call us at (800) 782-0289 to request that one be mailed to you. You can also obtain one from your employer.
Retirement applications may be withdrawn if NYSTRS is notified in writing no later than 14 days after the official date of retirement.
