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Help Fix Tier 6 Survey

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It’s been over a decade since Tier 6 became part of the New York state pension system. Since then, thousands of DC37 members earn a significantly reduced pension as compared to earlier tiers. Below is just a short list of major problems with Tier 6:
Problems with Tier 6

1: Variable Contribution Rates – Tier 4 members are set at 3% per year contribution. However, Tier 6 Members are set at varying rates dependent upon income. The rates are as follows:

              $45,000 or less = 3%

              $45,001 – $55,000 = 3.5%

              $55,001 – $75,000 = 4.5%

              $75,001 – $100,000 = 5.75%

              $100,001 + = 6%

2: Contribution Rates continue throughout an Employees Career – whereas Tier 4 member contributions cease at 10 years.

3: Overtime Ceiling –  Wages for pension purposes means regular rate of pay + 1) $15,000 cap + Consumer price Index for inflation until 2018. – In 2018 and thereafter, additional increase on overtime ceiling determined by Consumer Price Index for inflation. (2023 = $19, 729)

4: Wages – also capped at Governor salary; Wages are not 1) sick/vacation/accrual time paid in lump sum; no termination pay; no retirement incentive pay

5: Age 63 Full Retirement Age (RSSL Sec 603(a-1)

6: Early Retirement Reduction at Age 55 = 52% Reduction – Tier 4 is 27%

7: Pension payable with 20 years of service is 1.75% per year (35%) with 2% per year payable only after completion of additional years

8: Final Average Salary – Five Consecutive Year calculation

9: Final Average Salary – no year can exceed the previous 4 year average used.

10: No 30 year leniency for early retirement – must meet age requirement or face reduction (Not NYCERS).

We are putting together a strong coalition to fight back and make public service retirement fair for everyone … but we can’t do it without you! In order to move forward, we need your input. Please take your time to participate in the survey below to help us identify which issues with Tier 6 are the most important to you.

 

The deadline to participate in the survey is Friday, February 2nd, 2024.

STAY INFORMED

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