Service Credit |
|
Pension Factor |
| Less than 20 years |
= |
1 2/3% per year |
| 20 to 30 years |
= |
2% per year for all service |
| 30 or more years |
= |
60% plus 11/2% for each additional year over 30 years |
If
you retire prior to age 62 and have less than 30 years of service, you will receive a percentage of the pension factor based on your age at retirement as follows: (The percent is prorated by month.)
Age |
Percent |
|
Age |
Percent |
55 |
73% |
|
59 |
85% |
56 |
76% |
|
60 |
88% |
57 |
79% |
|
61 |
94% |
58 |
82% |
|
62 |
100% |
|
| The following examples show how working one more year and attaining 20 years of service (when all years are at 2%) and 30 years of service (when there is no age reduction) will significantly increase your pension factor:
|
| Attaining 20 Years |
| At age 55: 19 years x 12/3% = 31.6% |
| |
31.6% x 73%
(percent at age 55) |
= |
23.1% |
|
| At age 56: 20 years x 2% = 40% |
| |
40% x 76% (percent at age 56) |
= |
30.4% |
|
| |
|
|
|
|
| Attaining 30 Years |
| At age 55: 29 years x 2% = 58% |
| |
58% x 73% (percent at age 55) |
= |
42.3% |
|
| At any age: 30 years x 2% |
| |
(no age reduction) |
= |
60.0% |
|
|
Step 2 —Compute the Final Average Salary |
| Use the three-year FAS, as described in the Final Average Salary section above.
|
| Step 3 —Calculate the Pension |
| Multiply pension factor (Step 1) by FAS (Step 2). This is your annual Maximum retirement benefit paid to you in 12 monthly payments. At retirement, you choose the Maximum benefit or an option that could provide payment to your beneficiary (see Benefit Payment Choices below). |
Tier 3, calculated under Tier 3 (Article 14) |
| Because of the improvements in Tier 4, to which all Tier 3 members are entitled, the Tier 3 (Article 14) benefit calculation described below would be to a Tier 3 member’s advantage only in a small number of cases. Where one calculation is obviously better, you will automatically receive that benefit. Otherwise, the System will provide you with the information to help you make your decision.
|
| Step 1—Determine the Pension Factor |
Service Credit |
|
Pension Factor |
| Less than 20 years |
= |
1 2/3% per year |
| 20 to 30 years |
= |
2% per year for all service |
| 30 or more years |
= |
60% maximum pension factor |
If you retire prior to age 62 and have less than 30 years of service, you will receive a percentage of the pension factor based on your age at retirement as follows: (The percent is prorated by days.)
Age |
Percent |
|
Age |
Percent |
55 |
70.0% |
|
59 |
83.3% |
56 |
73.3% |
|
60 |
86.7% |
57 |
76.7% |
|
61 |
93.3% |
58 |
80.0% |
|
62 |
100.0% |
|
|
Your benefit is reduced at age 62 (or immediately if you retire after age 62) by half of the Social Security benefit you accrued while in New York State public service. |
|
If you retire after age 62 and 1 month, your benefit is subject to automatic escalation each year. If you retire before 65, adjustments are applied on a prorated basis. |
|
These provisions do not apply to Tier 4 members or to Tier 3 members who retire under Article 15/Tier 4. |
Steps 2 and 3 are the same as the Tier 4 calculation. |
|
|
Disability Retirement Benefit |
| If you are no longer able to work because of a serious illness or injury, contact the System as soon as possible at (800) 348-7298, Ext. 6010. (You can find additional information in the NYSTRS pamphlet If You Are No Longer Able to Work: A Guideline for Making Decisions About Disability Retirement, which is also available on our Web site.) We will provide you with information and instructions on how to file for disability retirement, as well as estimates of your benefits. If you are critically ill, you should file for disability retirement immediately. |
| Eligibility |
Tiers 1 and 2 |
 |
You must have an active membership and at least 10 years of New York State service credit (Tier 2 members must have at least five of the 10 years of service since last becoming a member), AND |
 |
Be totally and permanently incapacitated from further teaching service, AND |
 |
Cease teaching because of the disability. |
Tiers 3 and 4 (Article 15) |
 |
You must have an active membership and at least 10 years of New York State service credit (the 10-year requirement is waived if the disability resulted from an accident sustained in the performance of your teaching duties), AND |
 |
Cease teaching because of the disability, AND |
 |
Be totally and permanently incapacitated from all further gainful employment, AND |
 |
File a disability application with NYSTRS within 12 months of the last date you were on the payroll. If you are placed on leave of absence without pay for medical reasons, you may file a disability application no later than 12 months after the date you receive notice that your employment status has been terminated. |
| Disability Retirement Benefit Calculation |
For 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. |
|
| Eligibility |
| You are covered by an in-service death benefit if you have been credited with at least three months (Tier 1) or one year (Tiers 2, 3 and 4) of service since last becoming a member, and at the time of death: |
 |
You were in service being paid for employment reportable to this System, OR |
 |
If you are a Tier 1 member, 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
|
 |
If you are a Tier 2, 3 or 4 member, 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 remained disabled until death (Tier 1) or died while on an approved medical leave (Tiers 2, 3 and 4). |
| Tier 1 Calculation |
| The greater of the following: |
 |
1/12 of your last 12 months of regular compensation for each year of service, to a maximum of three times your earnings, OR |
 |
The Death Gamble Benefit. Please contact us at 800-348-7298, Ext. 6110 for more information. (Note: To be eligible for this increased benefit, you must be eligible to retire without any service credit-related reductions in your pension.) |
| Tier 2, 3 and 4 Calculation—Paragraph 2 |
| Under legislation enacted in 2000, all Tier 2, 3 and 4 members will be covered by the Paragraph 2 Death Benefit, unless they selected Paragraph 1 (see Tier 1 Calculation above) and it is greater than Paragraph 2. All members joining on or after January 1, 2001, will be covered by the Paragraph 2 Death Benefit. |
| The benefit is one year’s salary after a year of service, increasing to a maximum of three years’ salary after three years or more of service. However, the benefit is reduced after age 60. |
| Under Paragraph 2, if the in-service death benefit is in effect when you retire, it continues after retirement. The benefit would be: |
 |
1st Year—50% of the death benefit in effect at retirement; |
 |
2nd Year—25% of the benefit at retirement; and, |
 |
3rd & Ensuing Years—10% of the benefit at age 60, or at retirement if earlier. |
| To be eligible for the continued coverage in retirement, you must retire no later than one year after you leave the payroll. Gainful employment, other than teaching, between the date you ceased teaching and the date of retirement will jeopardize your eligibility for this benefit. |
|
| Tiers 3 and 4 Accidental Death Benefit |
| If you die as the result of an accident sustained in the performance of your duties, certain surviving family members may be entitled to receive an accidental death benefit in lieu of an in-service death benefit. The annual payment to your beneficiary would be 50% of the regular salary earned during your last year of service.
|
| Vested Death Benefit |
| You are covered by this benefit if you have at least 10 years of service credit, are not covered by the in-service death benefit, and die before retirement. It would equal one-half of the in-service death benefit that would have been paid if you had died on the last day of creditable service. |
| Accelerated Death Benefit |
| You may elect to receive a one-time only payment while living if you qualify for a disability retirement benefit (the 10 years service credit requirement is waived) and 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. The benefit is paid in lieu of both a monthly retirement benefit and a death benefit paid to a beneficiary. |
| The payment is equal to the death benefit if you had died on your last day of reportable service. It may be an important benefit if you don’t have the need to provide for a beneficiary, or if you have less than 10 years of service credit and would not otherwise be eligible for a disability retirement. |
|
| At retirement you will choose either the Maximum benefit or an option. There are many factors you should consider, including your needs and goals and those of your beneficiary(ies); other sources of income; your health and age at retirement; and, the need for flexibility of coverage. You should begin planning early and carefully analyze the choices before you make your final decision. |
| The Maximum benefit provides the largest monthly payments to you for life, but provides no payment to a beneficiary except as may be provided by the Paragraph 2 Death Benefit (Tiers 2, 3 and 4 only). |
|
| An option is designed to provide a payment to a beneficiary at your death. However, selecting an option means a lower monthly benefit for you. Much like life insurance, the greater the protection an option provides your beneficiary, the greater the cost of the option to you. The cost of the option is calculated using actuarial factors, and your monthly benefit will reflect that cost.
|
|
No matter which choice you make, there are a few certainties:
 |
Your payments continue until your death, without exception.
|
 |
You cannot change your benefit payment choice more than 30 days after your retirement date. This holds true even if your circumstances change. |
Lump Sum Options
 |
Tier 1 Declining Reserve: The balance of your total reserve (the pension reserve and any Annuity Savings Fund) will be paid to your beneficiary(ies) if you die before you receive the total reserve. If you have a life-threatening illness, consider choosing the Declining Reserve (4%) since it provides the largest payment to your beneficiary if you die early in retirement. |
 |
Tiers 1 and 2 Annuity Reserve: If you have an Annuity Savings Fund and leave it in the System at retirement, the balance will be paid to your beneficiary(ies) if you die before you receive it yourself.
|
 |
Largest Non-Declining Lump Sum: This option enables members to provide the largest possible fixed payment to a beneficiary. It is not available to Tier 3 members retiring under Article 14 (Tier 3).
|
By selecting a Lump Sum Option, you may name multiple primary and/or contingent beneficiary(ies) who may be changed at any time.
|
|
| Guarantee Period Options |
|
| If you die during the first 5 or 10 years in retirement, depending on which option you select, your beneficiary receives your benefit for the balance of the 5- or 10-year period. Beyond those periods, there is no beneficiary payment. |
|
| Under these options, you may name one primary beneficiary and multiple contingent beneficiary(ies) who may be changed at any time.
|
|
| Survivor Options (Without the Pop-up Feature) |
|
If you select one of these options:
 |
You name one beneficiary only. |
 |
When you die, your beneficiary receives a percentage of your benefit for life. Your benefit will not change if you survive your beneficiary.
|
 |
Your beneficiary must be named no later than 30 days after your date of retirement and can never be changed. |
| Under these options, a surviving spouse is eligible for 50% of the Cost-of-Living Adjustment (COLA) the retiree would have received.
|
|
|
| Pop-Up Survivor Options |
|
| The same as the Survivor Options, except that if you survive your beneficiary, your payment reverts to the Maximum benefit after we receive a copy of your beneficiary’s death certificate.
|
|
| Alternative Option |
|
| This allows you to modify existing options to meet your specific needs. For example, you can establish a fixed annual payment, or a monthly income, to be paid to your beneficiary(ies). An Alternative Option must be approved by the Retirement Board. |
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