HR Policies: 6.8.4
Statutory Retirement Plans New York State Employees' Retirement System (NYSERS)
Subject: Providing Benefits
Number: 6.8.4
Issued: 3/1/82
Revised: 6/30/98
Purpose
NYSERS provides
retirement income, disability, and death benefits to eligible employees.
Eligibility
All exempt and nonexempt employees. For statutory units appointed on a
full-time basis for at least 12 months, membership to a retirement plan
is mandatory. If less than full-time, membership is optional. Employees
who waive retirement are required to have Social
Security deducted from their pay. Participation begins on the first
day of employment.
Retirement benefits are based on the date of membership and the corresponding tier of coverage. Tier I members are employees who joined the retirement system prior to July 1, 1973. Tier II members joined between July 1, 1973 and July 26, 1976. Tier III members joined between July 27, 1976 and August 31, 1983. Tier IV members joined on or after September 1, 1983.
Vesting
Retirement benefits are vested upon completion of five full years of service
credit.
Contributions
New York State pays the full cost of the retirement program for Tier I
and Tier II members. Tier III and Tier IV members are required to contribute
three percent of their gross salary.
Tier I employees (hired prior to July 1, 1973) will have a contribution made by SUNY equal to 12% of their first $16,500 of salary plus 15% of salary above $16,500.
Tier II employees (hired between July 1, 1973 and July 26, 1976) will have a contribution made by SUNY equal to 12% of their first $16,500 of salary plus 15% of salary above $16,500.
Tier III employees (hired between July 27, 1976 and August 31, 1983) will have a contribution made by SUNY equal to 9% of their first $16,500 of salary plus 12% of salary above $16,500
Tier IV employees (hired between September 1, 1983 and July 16, 1992) will have a contribution made by SUNY equal to 9% of their first $16,500 of salary plus 12% of salary above $16,500
Tier IV(a) employees (hired after July 16,1992) will have a contribution made by SUNY equal to 8% of salary for their first 7 years of service, then 10% of salary for their subsequent years of service.
Benefits
Pension payments are based upon the employee's final average salary earned
during any 36 consecutive months of service when earnings were highest,
the number of years of credited service with the State, and the employee's
retirement age. Benefits for employees who achieve 20 years or more of
credited service the retirement benefit will equal 2 percent of
their final average salary multiplied by their years of credited service.
For less than 20 years of service, the retirement benefit will equal 1.66
percent of the final average salary multiplied by years of service.
Maximum pension benefits are limited to 75 percent of the employee's final average salary.
Tier I members may retire at age 55 with full benefits. Tier II, III, and IV members may receive full benefits at age 62, or reduced benefits beginning at age 55. A Tier II member may retire at age 55 with no benefit reduction if they have at least 30 years of credited service.
Optional Retirement Plan
Eligibility
Full-time academic and professional employees and employees with a term
appointment on a part-time basis may choose to enroll in the Optional
Retirement Plan which is administered by TIAA/CREF.
Contributions made by both SUNY and the employees vary according to which Tier they are a member. Tier III, Tier IV, and Tier IV(a) participants are required to contribute 3% of their gross salary.
Contributions made by both SUNY and the employee are used to purchase individual retirement annuity contracts from TIAA/ CREF, which are owned by the employee upon satisfaction of vesting requirements. Vesting occurs immediately for employees who own pre-existing contracts or have active membership in another State retirement plan and after 13 months for all other participants.
Once vesting occurs, employees enrolled in the Optional Retirement Plan may continue all investments in TIAA/CREF or may choose to transfer all or a portion of their CREF accumulations to one or more of the following alternative carriers: Aetna Life Insurance and Annuity Co. (AETNA), Metropolitan Life Insurance Co. (MetLife), or Variable Annuity Life Insurance Co. (VALIC).
Enrollment
Employees must complete and submit the appropriate application form(s)
to Benefit Services, in the Office of Human Resources within 30 days of
the date they first become eligible to participate. Application
forms are available from the employing department and Benefit Services,
in the Office of Human Resources.
Employees may discuss the many facets of retirement with the local hr representative or designee or a benefits representative in Benefit Services, in the Office of Human Resources.
Disclaimer
While every attempt has been made to ensure the accuracy of the above
statements, the legal documents, policies, or certificates pertaining
to this benefit prevail in the event of any discrepancy. This description
does not constitute a legal document.
Contact the local hr representative or designee or Benefit Services (607) 255-3936 for more information.