If you are a Teacher, Fire Fighter, Police Officer, or Corrections Officer in NY you may be apart of the Tier 6 New York Retirement System. Although confusing, you can understand how the Tier 6 Retirement System affects your pension and your retirement future.
In the video, learn everything you need to know about the New York Tier 6 Retirement System, how it affects your pension, and your retirement!
Article I Referenced in this video to talk about the NYS Tier 6 Retirement System and how it compares to the Tier 3, Tier 4 and Tier 5 system.
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The New York State Tier 6 pension has been a subject of discussion among teachers and various employees in the state. It is essential for individuals to understand the various aspects of this pension system to make informed decisions and meet their retirement goals. In this article, we will dive into the details of the NYS Tier 6 pension, explained by a New York teacher.
The Tier 6 pension system was introduced in April 2012 as a part of Governor Andrew Cuomo’s plan to control the rising pension costs. It aimed to make the pension system sustainable and affordable while ensuring sufficient benefits for retirees. Under this system, the benefits and retirement package for public employees, including teachers, have been modified compared to previous tiers.
One of the significant changes in the Tier 6 pension is the increase in the retirement age. Previously, employees could retire at the age of 55 with 30 years of service credit or at any age with 35 years of service credit. However, Tier 6 requires employees to work until the age of 63 to receive the maximum benefits. This change extends the working years for teachers and other public employees, making it a crucial aspect to consider while planning for retirement.
Another change in the Tier 6 pension system is the reduced defined benefit plan. Previously, retirees would receive a percentage of their final average salary based on their years of service. However, Tier 6 reduces this percentage and introduces a new formula. The retirement benefit is calculated based on the average of the highest five years of salary, multiplied by a retirement factor and years of service. This change has been a concern for many teachers, especially those who were accustomed to the previous system.
Additionally, the Tier 6 pension offers a new retirement option called the Defined Contribution Plan. It allows employees to contribute a portion of their salary to an investment account, which they can manage themselves. The state also makes a contribution to this account, matching a certain percentage of the employee’s contribution. This option provides individuals with more flexibility and control over their retirement savings.
It is important to note that the Tier 6 pension system applies to public employees hired after April 1, 2012. Those hired before this date are part of the previous tiers and their retirement benefits remain unchanged. However, teachers and other employees who were already part of the system but transfer to a new position after April 1, 2012, will be subject to the Tier 6 rules for their new position.
Understanding the Tier 6 pension system is vital for teachers and public employees in New York. It allows individuals to plan for their retirement effectively, taking into account factors such as increased retirement age, reduced defined benefit plan, and the option of a defined contribution plan. Educators should consult with financial advisors or attend retirement planning workshops to ensure they make informed decisions about their retirement savings and future security.
In conclusion, the NYS Tier 6 pension system is an essential aspect for New York teachers to comprehend. The changes in retirement age, defined benefit plan, and the introduction of a defined contribution plan require careful consideration when planning for retirement. By gaining a comprehensive understanding of the Tier 6 pension system, educators can make informed decisions to secure their financial future after years of dedicated service.
Outstanding video. NYS 5 years to be vested as of 2023. I must say it’s overwhelming sad to know you have to be 66 years old to benefit having your pension.
Is this the same as the NYC NYCERS Tier 6 pension?
Are Teachers Retirement System distribution taxable in New York State?
6 sucks
I'm glad I'm a Tier 4!
Will pensions run out at some point in the future? Looking to become a future teacher but not sure if its worth contributing to the pension if they eventually run out of money.
I’m tier 4.
I work for the NYPD
Where do I get this spreadsheet I am a tier 6 DOCCS worker
Great video very informative
Fantastic explanation! I’d love to see it stacked up against tier 3 or 4
Great video. I just interviewed for a NY state position and this clears a lot of questions. I was under the impression that the requirement amount of years of work in order to be able to retire (“vested” according to what you mention in your video) were five and not ten? Also, can you get your state pension AND social security once you retire, or is it one or the other? Thanks.
Thanks Brad for the great start on the infos. Updated infos can be found here: https://www.osc.state.ny.us/retirement/employers/comparison-ers-benefits
Hey brad, old video but do you have a link to the spreadsheet so we can enter our own numbers in?
Very informative! Thank you!
This is amazing!!! What did you mean at the end “ Which will take me 3 years to pay back!” Once we retire at age 64 for our full pension are we collecting it forever if we are are paying something back? I was confused between that and “Essentially you win against retirement system!” Thank you so much, and yes I’m tier 6 as well!
I have almost 3 years in tier 6, I’m a custodian.
I’m a paramedic with two fire districts. Tier 6, but recently found out a job I had back in 2008, a fire district I was a dispatcher for, was in the NYS pension but never offered it to me. I should be able to buy my time back no? And should change tier no? Or too late for that?
They updated the tier 6
you need to adjust the content
Either your a teacher making 100k a year, or i'm missing something.
Great info, please post an updated video on this topic with the recent changes to tier 5 and 6, such as 5 year vesting and cap on contribution percentage.
2022 laws change for vesting 5 years your vested
I'm curious to know as an Opwds Dsa what I'm getting
Wait so say I have an average of $70,000 for my 5 highest years. And I work for 30 years which will put me right at 63. How much will I make a month/year?
Thanks much brotherly love Jesus Bless you
Thank you
Great information , thanks for explaining !!
If I am vested at 51 years old and decide to resign from my position, will I be able to file for NY retirement at 63? Do I have to wait until I am 55? Thank you
Thanks for explaination
Hello. Thanks for the video. The only thing I'm not getting is row "E" isn't that separate than the pension. Meaning Row "E" is a separate account that you can draw off of in retirement??
I'm signed up into this tier.
Resigning at 60 and filing retirement docs at 63 is extremely risky if you have beneficiaries. Upside is the 19% cut being erased, but you could cost your loved ones from many years of any payments at all.
Great video . If my FAS is $140K currently 26 want to retire at 55 so I’m doing 29 years of service. Can you tell me what my amount would be At 55 ? …Also if I decided to wait tell I was 63 to collect it so I can get back the full amount
I’m tier 6, I made multiple calls to NYS retirement office until I understood what i signed up and what my options were.
Thanks for putting this together.
Im an employee for OPWDD and im a Tier 6 member also. I had not clue what it even meant until now thank you, very well spoken and detailed.
What bothers me is the fact that none of the retirement system calculates education or expenses from education. All of this is overwhelming
Tier 6
Hey Mr. Finn, great video. Can you explain the @9:19 "looking for another job" comment? Are we declaring our working / retired status with NYS somewhere? If I leave NYS employment at age 40 and I'm already vested, do I need to work / "look for work" until 63 to avoid the penalty? And how does that need to be full-time work, or could it be freelance 1099 type work?
People are complaining because who wants to be rich toward the end of your life. The aches and pains of life weighing on you. 55 should be where you retire and make your 4k a month not damn near 70. At the point that money just belongs to your family you're setting up your will.
Great video. the Excel calculation really demonstrates everything. Thank you! I would add that with NYS, if you leave before being vested you can keep the money in the system for a number of years. Also, I suggest to look into consequences should you decide to resign and not file before 63 y/o.
How can we change it or modified it
Hey. Are you able to share a forced copy link to that excel document? Great video!
Very informative video,,, now at least you can calculate your own pension, not unlike in our time, whatever amount NYCERS tell us for evaluation that’s what you’re getting,,, i’m on tier4, under 25/55 plan. No idea how retirement works, until i went to one of NYCERS seminar near my 55th bday, some retained though. But this video is very informative. Only to find out how lucky i am to be in tier4 ,,, and more the 25/55 plan.
Thanks for the information Brad. I just have a question, if someone started working for 5 years already without the tier 6, and join, I know that person can pay for the previous 5 years to catch up, but will that still be considered 10 years if retiring after 10 years from work in NY?
So, thank u very much for ur video. It is a tad confusing at times. BUT, I do not believe that u are inserting or FAFTORING IN, Ur union negotiated pay raises on an annual. Or semi annual basis. But, very good video all and all
If you are hired by the City as a Tier 6, I heard that you can roll over
your retirement from a previous employer and potentially change from a
Tier 6 to a Tier 4. Can you verify this and the specifics regarding
this? *Update* It's called a "Tier Reinstatement". Current members who were previous members of a public retirement system in New York City or New York State may be eligible.