Service Retirement – Eligibility

• Basic Eligibility Requirement
  You may retire at age 55 or older with five or more years of credited New York State (NYS) service.

• Other Eligibility Criteria for Tier 1 Members
  If you are a Tier 1 member, you may also retire: a) at any age with 35 years of service, or b) at age 55 with less than five years of service, if two years are credited since age 53.

• Final Average Salary
  Your FAS is generally the average of your highest three consecutive years of salary earned. If you are a Tier 1 member, you are also eligible for a five-year FAS calculation, which (if you have a membership date before June 17, 1971) can include termination pay and non-regular compensation. Refer to the FAS section of the Active Members' Handbook for a complete explanation of what may be included in your FAS.

• Pension Factor – Tiers 1 and 2
  Your pension factor equals the sum of: a) 1.8% per year of credit for NYS service before 1959, and b) 2% per year for NYS service after 1959, and c) if eligible*, 1% per year for prior out-of-state service, as long as this service does not bring your total service above 35 years. The maximum pension factor is generally 79% (which includes 4% for two years of credit under Article 19/Benefit Enhancement). 
  
  If you are a Tier 1 or Tier 2 member, the pension factor is reduced by 5% for each year your New York State service totals less than 20 years. 
  
  If you are a Tier 2 member and retire before age 62 with less than 30 years of service, the pension factor is also reduced based on your age at retirement.
  
  *All Tier 1 members are eligible for a maximum of 10 years of credit for out-of-state public school teaching prior to joining NYSTRS, provided a benefit for this service will not be paid by another state or the federal government. Tier 2 members can only receive credit for out-of-state service if it was credited under a previous Tier 1 membership in NYSTRS.
   

• Pension Factor – Tiers 3 and 4
  Your pension factor equals either: a)
  1 2/3% per year if you have less than 20 years of service, or b) 2% per year if you have between 20 and 30 years of service. Under Tier 4, you would receive 1 1/2% for each additional service year beyond 30.
  
  If you retire before age 62 with less than 30 years of service, the pension factor is reduced based on your age.

  If you are a Tier 3 member, you may retire under either Tier 3 or 4.  You automatically receive the better benefit, which is usually Tier 4 because: a) Tier 3 benefits are reduced at age 62 (or immediately if you retire on or after age 62) by half the Social Security benefit you accrued in NYS public service, and b) Tier 4 has better reduction factors if you retire before age 62 with less than 30 years of service, and c) Your maximum pension factor is unlimited under Tier 4, but is limited to 60% under Tier 3.

• Tiers 1 and 2
  You must: a) have at least 10 years of NYS service (and, if you are a Tier 2 member, at least five years of the service must have occurred since last becoming a member), and b) be totally and permanently incapacitated from further teaching service, and c) cease teaching because of the disability. 
   
• Tiers 3 and 4
  You must: a) have at least 10 years of NYS service (or five years, if you are a Tier 3 member eligible for Social Security disability benefits who is retiring under Tier 3), and b) be totally and permanently incapacitated from all further gainful employment, and c) file a disability application with NYSTRS within 12 months from the last date you were on the payroll (or, if you are placed on leave of absence without pay for medical reasons, no later than 12 months after the date your leave has been terminated).

  Under Tiers 3 and 4, the service requirement is waived if the disability resulted from an accident sustained in the performance of your teaching duties.
   

• All Tiers
  A disability retirement benefit is generally 1/3 of your final average salary. However, the benefit may be more or less depending on your age and service credit. For an estimate of your disability retirement benefit, please refer to your most-recent Benefit Profile, or contact the System.

Print a Disability Retirement Application Package (RET-54.1) or obtain one by calling our Hotline at (800) 782-0289.

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In-Service Death Benefit – Eligibility
(with post-retirement coverage for Tiers 2, 3, and 4)

• Tier 1
  You are covered by an in-service death benefit if you have at least three months of service since last becoming a member, and at the time of death:

You are in service being paid for employment reportable to NYSTRS, or

You had been in service within the previous year and had not otherwise been gainfully employed (other than in service reportable to NYSTRS) since leaving teaching, or

You had left the payroll because of a disability and had remained disabled until death.
 

• Tiers 2, 3 and 4
  You are covered by an in-service death benefit if you have at least one year of service since last becoming a member, and at the time of death:

You are in service being paid for employment reportable to NYSTRS, or

You had been in service within the previous year, and had at least one year of continuous employment since last entering your employer's service, and had not otherwise been gainfully employed (other than in service reportable to NYSTRS) since leaving teaching, or

You had left the payroll because of a disability and had died while on an approved medical leave.
 

In-Service Death Benefit  – Calculations
(with post-retirement coverage for Tiers 2, 3, and 4)

• Tier 1
  The in-service death benefit is generally equal to 1/12 of your last 12 months of regular compensation for each year of service, to a maximum of three times your earnings. (The amount may be larger if you are eligible to retire without a pension reduction. This is sometimes referred to as the Death Gamble.)

• Tiers 2, 3, and 4 (In-Service)
  The in-service death benefit is generally equal to one year's salary after a year of service, and it increases to a maximum of three years' salary after three or more years of service. The benefit is reduced after age 60.

• Tiers 2, 3, and 4 (Post-Retirement)
  If the in-service death benefit is in effect at retirement, coverage would generally continue after retirement if you retire no later than one year after you leave the payroll. Gainful employment (other than in service reportable to NYSTRS) between the date you ceased teaching and your date of retirement will jeopardize your eligibility for this benefit.

The post-retirement benefit amount depends on how soon after retirement your death occurs, as follows:

1st Year...50% of the death benefit in effect at retirement

2nd Year...25% of the benefit at retirement

3rd & Ensuing Years...10% of the benefit at age 60 or at retirement if earlier.

Tier 3 and 4 Accidental Death Benefit

• Eligibility
  You must be a Tier 3 or 4 member who dies as the result of an accident sustained in the performance of your duties.
   

• Calculation
  The benefit would be an annual payment equaling 50% of the regular salary earned during your last year of service. This benefit would be paid in lieu of an in-service death benefit.

Vested Death Benefit

• Eligibility
  You are covered by this benefit if you: a) have at least 10 years of service credit, and b) are not covered by the in-service death benefit, and c) die before retirement.
   
• Calculation
  The benefit would equal 1/2 of the in-service death benefit that would have been paid if you had died on the last day of creditable service.

• Eligibility 
  You may elect to receive a death benefit while living if: a) you qualify for a disability retirement benefit (not including the service credit requirement, which would be waived), and b) have either a terminal illness resulting in a life expectancy of no more than 12 months or a medical condition requiring extraordinary care or treatment.
   
• Calculation
  The benefit would be a one-time only payment equal to the death benefit that would have been paid if you had died on the last day of reportable service. It is paid in lieu of a monthly retirement benefit, and no death benefit would be payable to a beneficiary.

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