The information below summarizes the rules for service retirement benefits,
which can vary significantly based on tier, age and service credit. You can use the Calculator to get a quick benefit estimate, or
you can request that an estimate be mailed to you. For more information, see the Benefits section of the Active
Members' Handbook or call us at (800) 348-7298, Ext. 6250.
Service
Retirement – Eligibility
- Basic Eligibility
Requirement
You may retire at age 55 or older with five or more years of credited New York
State 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.
Service
Retirement – Calculations
Your annual pension equals your
Final Average Salary (FAS) multiplied by your Pension Factor.
- 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 Benefit Enhancement/Article 19).
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.
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- 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.
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Print a Service Retirement Application (RET-54) or obtain one by calling
our Hotline at (800) 782-0289. |
