DETAILS ON THE POSSIBLE EARLY RETIREMENT INCENTIVE FROM NYCERS

While the New York City Teachers Retirement System and the UFT have been a bit tight-lipped about the possible early retirement incentive, the NYC Employees Retirement System has provided specific details.

This is what TRS is saying on its website:

News on Possible Retirement Incentive posted [4/21/2021]

A New York State law enacted April 19 (Chapter 59 of the Laws of 2021) authorizes but does not require the New York City Department of Education (DOE) to offer an Early Retirement Incentive to its employees, some of whom are TRS members. The DOE must decide by May 31, 2021 whether to offer any incentive, which provisions to offer, and which titles will qualify for certain provisions. Until the DOE’s decision is announced, TRS cannot provide information on eligibility or benefits under the potential ERI. We will post updates when available on our website and social media.

Now from the NYCERS website:

About the ERI

On April 19, 2021 Governor Cuomo signed into law Chapter 59 of the Laws of 2021, which provides the City of New York and the NY Board of Education, also known as the NYC Department of Education (DOE), the option to elect an Early Retirement Incentive (ERI).

Eligible members may not file for the ERI until the City of New York and/or the NYC Department of Education have elected to participate and established an Open Enrollment Period, and the Open Enrollment Period starts.

Chapter 59 of the Laws of 2021 contains two separate and distinct retirement options, Part A and Part B.  If the City of New York and/or NYC Department of Education elects to participate in the ERI, they may elect to participate in Part A, Part B, or both. If Part A is elected, the Mayor and/or Chancellor will then define what titles are eligible to apply for the ERI.

Please note that an eligible member can only file for Part A OR Part B. You cannot file for both.

What is the Benefit?

Part A: Eligible members are given additional qualifying service credit for up to three years.

Part B: Eligible members may retire without early retirement reduction factors and are not given additional service credit.

Members must be in continuous active service (being paid on the payroll, on leave with pay, or a leave without pay for less than 12 weeks) preceding the Open Enrollment Period AND:

Part A:

Eligible members must either be:

Eligible for service retirement

50+ years old with 10+ years of service if not otherwise eligible to retire, OR

In a plan that allows for retirement at 25 years of service, regardless of age. In this case, the additional service credit provided by Part A of the ERI may be used to reach the required 25 years.

Part B:

Eligible members must be:

55+ years old and have 25+ years of creditable service.

Part A

1/12 year additional service credit per year of pension service

Maximum additional service credit is three years

Early retirement age reduction factors will apply under the following conditions:

Tier 1

5% per year prior to age 55

Tier 2

Members who are age 55 or older with 30 or more years of service have no reduction

55/25: 5% per year prior to age 55. For members with more than 25 years of service in a physically taxing title, there is no reduction

Basic Tier 2 62/5, 6% reduction for each year of the two years prior to age 62; additional 3% each year prior to age 60. For members with 30 or more years of service, there is a 5% reduction for each year prior to age 55

Tier 4

62/5: 6% reduction for each year of the two years prior to age 62; additional 3% each year prior to age 60. For members with 30 or more years of service, there is a 5% reduction for each year prior to age 55

57/5: 1/30 for first two years prior to age 57; additional 1/20 per year prior to age 55. For members with more than 25 years of service in a physically taxing title, there is no reduction

55/25: 5% per year prior to age 55. For members with more than 25 years of service in a physically taxing title, there is no reduction

Age reductions are prorated for partial years.

Part B

Eligible members can retire with an unreduced benefit

Part B does not provide additional service credit

Next Steps

For City of New York employees, a Local Law must be passed by City Council and signed by the Mayor stating that the city is electing to participate in the ERI by June 30, 2021.

For NYC Department of Education (DOE) employees, a resolution must be passed by the Board of Education and signed by the Chancellor electing to participate in the ERI by May 31, 2021.

If the City of New York and/or the NYC Department of Education elect to participate in the ERI, they must establish an Open Enrollment Period.

If the City of New York and/or the NYC Department of Education elect to participate in Part A of the ERI, they must identify which titles are eligible to participate.