Tuesday, April 06, 2021

EARLY RETIREMENT INCENTIVE ALIVE IN ALBANY; Update: ERI is in Revenue Bill

This is from Buffalo reporter Tom Precious on Twitter. There is an update with a link to the bill below.


Some budget numbers from Cuomo:


The ERI is in the revenue bill. You can read it yourself.

Here is Dan Clark's piece:

Kudos to GratefulKaz for pointing this out on the last post.

The Early Retirement Incentive is only for New York City teachers, and certain public employees. You can find the details in Part KKK on page 183 of the Revenue bill. Here's a link to the Revenue bill again.

(The page numbers are the numbers in the center of the text.)

Happy reading!


Don't expect me to translate from legaleze to English.

112 comments:

Anonymous said...

If the ERI goes though we will see a tsunami of teachers getting out of Dodge. This should be seen as a big statement to horrid working conditions that NYC teachers have been facing since Bloomberg destroyed our once great career.

Anonymous said...

It depends on what the ERI looks like.

What would be most attractive?

The incentive they offered to ATRs was not attractive at all. Just 50,000 dollars.

When will we see details?

James Eterno said...

Severance package for ATRs was a one time payment. This is different as it gives pension credit. As soon as we have details, we will post them.

Anonymous said...

ERI is in the revenue bill. Page 183

https://nyassembly.gov/leg/?default_fld=%0D%0A&leg_video=&bn=A03009&term=&Summary=Y&Actions=Y&Memo=Y&Text=Y

Anonymous said...

ERI bill text is posted here https://nynow.wmht.org/blogs/economy/live-blog-the-new-york-state-budget-is-due-april-1/

Anonymous said...

Is someone who opted in to a 25/55 plan excluded?

Thall67 said...

Does anyone know if we are covered under Article 15 of the Social Security Retirement Act (NY)? That seems to be where all the penalties are

Anonymous said...

The language is very dense, but it appears to help those who were either already eligible to retire but sticking around to rack up a bigger pension and maybe those who were already old enough to retire but needed another year or two of service to be eligible.

I think the real winners are those who are 55 with 24 years or who are 62 with 19 years. I don't think is worth it for 50 year olds unless they are so desperate to get out that they're willing to take huge pension hits. Am I reading that correctly, James?

Anonymous said...

What a sickening, repulsive profession, excuse me - job, teaching in the NYCDOE has become. Reading these comments and the gleeful anticipation of a hopeful escape is a sad expose on life as a teacher. Cuomo has a golden bullet in his gun with ‘early retirement’ etched on it and everybody is waiting for him to pull the trigger, so they can run out the door. Your heart and soul will be trampled and climbed over without a thought. A neon caricature of Mulgrew’s face will be over that said door with the slogan, “We did it!”, and his hand will be out stretched. Make your own choice carefully.

Anonymous said...

Anything for someone who is 40 with 19 years?

Anonymous said...

I tried reading it, it is insane. So confusing and long.

Will there be another opt into 25/55 or is it just if you are 55 now with 25 years and now would be able to retire without penality?

Ex. If you are 49 can you opt into 55/25 if you were on an unpaid leave the last time it was offered in 2008?

Thall67 said...

That’s what politics and mayoral control have done to this profession here in the Big Apple. Bloomberg tried to make it a job not a profession ,DeBlaaah changed the role of school safety, hired a whack job as Chancellor, replaced whatever discipline was left with restorative justice circles and our Union fiddled while a killer virus circulated amongst us in our workplace. Considering all of this I’m sure you’re not surprised that teachers are running for the hills to escape. I’m not happy or proud of it just saddened by it. That being said, I will certainly carefully consider my options, should this legislation present any reasonable options to me. You do the same.

Anonymous said...

My head hurts!

I need a translator!

What does this mean?

Anonymous said...


yes: 55/25 retire no penalty

no: buy into 55/25

If you are 49 and did NOT buy into 55/25 you're working till you're 62 if Tier 4 OR over 55 with 30 years.

maureen esposito center said...

Do you know if NY State employers are included

Siegal said...

I can’t follow it at all hopefully some people will decipher it soon. I’m 50 with 26 years and I bought in to 55/25.

Scruffygrognard said...

I'm 50 with 28 years in (before any incentive). It looks like I'd get the incentive (1 month per year... pushing me over 30 years of service) BUT would have my pension benefits reduced by 25% (5% reduction per year younger than 55).

Really crappy...

Unknown said...

Would this ERI be of any use to a teacher who had the years of service (29 and in 25/55) but is short of the their 55th birthday by a year and a half? If the month per year incentive pushes me to 31 years, but I'm only 53 and a half , would I be penalized or do added months push my "age" up as well? If not, I guess I have to forgo this and just stick around another year or so, and then take terminal leave. Also what is the window to avail ourselves to this ERI? Looks like its basically this June only.

Anonymous said...

Finally Mulgrew got something right

Anonymous said...

1) I think you can not take "terminal Leave" and are required to take for your unused CARS days the 3 payouts as terminal pay.. So, you only add on the one month for each year of credited service to your pension service credit.

2) The additional present value of future employer contributions for the benefit in Part A
is $84,800 per person. (age 55 retiree)
The additional present value of future employer contributions for the benefit in Part B
is $68,000 per person. (age 55 and 25 years)

Anonymous said...

I do not see the ERI as appropriate reparations. We deserve and must demand reparations for
the criminal mismanagement of the DOE under Joel Klein , Cathy Black, Denis Walcott, Carmen Farina, Richard Carranza, namely all the crony capitalistic stooges hired by the Plutocratic Michael Bloomberg and the ne0-communist nihilist Bill De Blasio. We need justice NOW!

Anonymous said...

Unknown 8:23amand others looking at the ERI:

I am 52.5 and have 29 years. Like many of us, I will have to consider the plusses and minuses of this deal.

It seems we get penalized if we are younger than 55. [5% a year?] So for me, maybe 10-12% hit.

But, we get the added years of service credit - which may cancel out some or most of that hit for some of us who are under 55.

It will be interesting to see the details, and how they calculate FAS in our cases.

I might be willing to take a 10% or less hit - I still like my job, but, if I may respond to some views expressed here, if I retire from the DOE it does not mean I will never work with kids again, or work in education. This is about a contractual right to retire and receive pension. Many of us will work in other ways for years to come.

Best of luck to all!

Anonymous said...

You guys are a joke, just like this job. What a sad pathetic existence. Teacher? Sad! I've never seen people hate a job so much. I do too, by the way.

Anonymous said...

Wise up educators. ALL THAT GLITTERS IS NOT GOLD.
Wise up, awaken, and never surrender.

Anonymous said...

This job sucks. D75 is nothing but paperwork. No joy, no real effort required. Administration only cares about CYA and does not give a damn about the teachers, forgot about the students. Make sure your bulletin board is up for your remote class and smile when visited by the Superintendent. All part of the plan-

Anonymous said...

IF you are 55 (or more) and currently lacking a few years of service credit to retire, this may get you to 30 service years and thus you could retire without penalty.

If you are a 25/55 and are 55 or more and lack a few years of service to retire this may get you to 25 service years and thus you could retire without penalty.

(My assumption is that folks understand what is meant by 'penalty'...it is the SEVERE hit for retiring and collecting without the requisite years of service.)

If you don't hit the age number (55) this is probably NOT the incentive for you.

Anonymous said...

Will be interesting to see how the NYCTRS deals with an ERI. They are closed. People who retired from my building well before the pandemic are still waiting for pension decisions that provide what they are due. And then there's the UFT...

Anonymous said...

I rather drive a school bus than do this job .

Anonymous said...

Are these the same reductions as if there were no RI or are these % higher?

Ex 6% for 2 years under 62=12%
then 3% a year for each year from 60 to 55 so 3x5=15%

So does a person without an RI get a 27% reduction if they are age 55 with only 22 years of service?

Does the 27 get deducted from 60% or 50%?

So confusing-Chaz's chart says it would be a 32.1 percent payout so if the reduction the same without without a RI?

Anonymous said...

What is CYA?

Anonymous said...

Speaking as someone who hates their job, has had a couple of pension consultations and is in their 50s, the job sucks, the UFT sucks at protecting active teachers BUT if you’re tier 4 the retirement benefits are pretty damn good. Get a consultation! So if you’re close to collecting full benefits, try to stick it out. Having a specific TDA goal amount and an exit plan keeps me motivated. Good luck everyone.

Anonymous said...

I'm 40. Have $420k in tda. Resigning after next year. 20 and out. Yes, it is that bad.

Anonymous said...

CYA = cover your ass

Anonymous said...

WE EDUCATORS DESERVE REPARATIONS.
EDUCATORS LIVES MATTER.

Anonymous said...

I called a pension consultant at the end of March. We made a ZOOM appointment for September. So in the interim, how do we eventually get informed if one is eligible for the ERI, what would be the estimated yearly pension, can one access their TDA before the age of 55, will we immediately be eligible for continuing medical/dental benefits? I said in this blog before, anyone over the age of 50, with 25 plus years of service credit, this ERI is a big deal. Good or bad, don't expect to see anything like it again in your remaining work careers.

Anonymous said...

www.trsnyc.org
go to planning tools and add 1 month per year of service, then recalculate what your pension will be.
the nice thing i see is that they are NOT taking away our CAR days as the earlier draft seemed to say would happen. anyone else notice that?

Anonymous said...

It seems that those of us who have 25+ years but haven't reached the age of 55 are out of luck. If my interpretation is correct, nobody can collect before 55, even with this ERI. I was hoping they would allow those of us with 25/55 plans to retire after 25 years regardless of age (and immediately collect), but guess not. We've been paying into it for years and years, and others will be getting it for free.

Anonymous said...

@12:03- Original bill said you would get terminal pay but not terminal leave

Anonymous said...

12:11 Here we go again resenting colleagues. This time it’s those who meet the criteria for eri. Yuck! I wish I could benefit but I can’t. Sure I feel a little resentment building when I think of me not benefiting. But then I remind myself that envy is not an attractive character trait.

Anonymous said...

so, did it pass?

Anonymous said...

@12:03 and @12:29

Final bill does not have terminal leave; only option is terminal pay

Anon2323 said...

@11:49 unless you been teaching 15 plus STFU. If the working conditions were like they were in late 90's early 2000s it would be such a better place to work for, less stress, less paperwork, less observations, less cell phones.

@12:05 we are in same boart as you know 40 with 19 years nearly in books. Best we can hop for is 50/25. We are so stuck.

Besides calling UFT for help or information, this is the ultimate treasure trove of invaluable infortmation that is so precisely accurate. I still go and check posts from.
https://chaz11.blogspot.com/

Anonymous said...

Anon2323, I'm the 40 with 19 years. I'm leaving after next year. 20 years at 2% per year. I will live with the pension penalty. I have enough money to live off of. I'm retired, for good, at 42 years old. September 2022....

Anonymous said...

20 years in and only 54. What are my chances? Am I S.O.O.Luck?

Thall67 said...

Im 25 years in and 54

Unknown said...

I am 56 and completing 24 years in June. What are my chances anyone who read the bill?

Anonymous said...

@4:13
Does the penalty work out better than delaying to 62 and filing?

Issue as I see it is your FAS is in 2022 $ and you'll be applying for pension in 2022+ (time till you get to 55 or.... 62)

Anonymous said...

I turn 50 the first week of sept, 27+ years in.
payed into 55/25
if i can- im out

Jeffrey said...

You get 24 extra months as the incentive. And you have the age. This seems to work for you.

Thall67 said...

Would I still be paying the 27% penalty according to this law

Anonymous said...

When you are 55 you’ll have 30 or more years. Why did you pay into the 55/25 program?

Unknown said...

I hope so Jeffrey. You made my day. I hope you are accurate. Thanks for responding.

Anonymous said...

You’re not gonna get the 2 percent per year factor until you’re 62. You’re pension if you leave at 41 with 20 years will be like 6 grand a year after all the penalties. Good thing you have millions saved.

Anonymous said...

I paid as peace of mind- like insurance- and glad i did.

Jc said...

55 in Oct w 32 yrs, would I qualify?

Anonymous said...

Could you explain? I'm 58 with 35 yrs and I don't see any benefit at all. Unless I'm still young enough to suffer a penalty?

Anonymous said...

The way I read it, we (lifers, 58, 35 years) we would only be able to retire "without penalty" but I don't know what that means.

Anonymous said...

They are not.
https://www.nysut.org/news/2021/april/media-release-state-budget

Thall67 said...

This is the only place that even mentions the Retirement Incentive. Thank god for this blog.

WorriedATR said...

44 with 23 years. What do you think?

Anonymous said...

My coworker joined doe in 2011 and was told by HR that she was required to pay into 55/25 in addition to her regular required pension contributions.did anyone ever hear of this??as I recall, 55/25 was a CHOICE.did anything change?I dont think it makes sense for her.does she have recourse?

R Gold said...

You never know what can happen to you and paying into 55/25 is an insurance plan just in case you can't make it to 30 years. There would be no reduction

Anonymous said...

Incentive or not, aren't a lot of teachers leaving this year?

Are there actually education undergraduate students in the pipeline? Who wants to be a teacher in 2021?

Administration loves new hires they can grill in exchange for tenure, many won't make it 3 years.

Is there really a plan, in my school the administration is clearly driving the staff hard to impress the office downtown, upper management anyone?

How long does a principal work before they get a cushy district gig?

Anonymous said...

Hello James,

I know the specifics of the ERI are still unclear, but with your knowledge and experience, you may be able to help on a few general questions.

Those of us under 55 may have to pay a penalty, but my question is, if we opt into the ERI and get our pension penalty, will we still "seamlessly" switch from being on active payroll to retiree payroll, without a gap [of waiting until we turn 55 yrs]?

Someone in the comments mentioned we can't collect pension until we are 55. If that is true, there would be little point to the ERI for someone like me, who is 52 1/2. I would be getting a penalty and then, no pay for 2.5 yrs. I would be better off working a bit more, and taking terminal leave.

Also would our health insurance also seamlessly switch?

I know this is all still up in the air, but maybe you know if we can start collecting pension checks right away [with penalty] or if we have to wait till we are age 55.

Thank you!

Scruffygrognard said...

JC... you'd get 32 months (bringing you up to 34 or 35 years, depending on the number of months over 32 years that you currently have) BUT would take a 5% hit to your pension (1 year younger than 55).

Anonymous said...

If you are 55 and have 30 plus years, you can retire. No penalty.

This is the issue. People don’t know when they can leave and collect a full pension.

Anonymous said...

Part A says you get the extra service only if you:

would reach 25 years of service
considering the additional service credit provided in Part A.

We already have 25 years. I don't think we qualify for extra service.

And Part B only allows us to retire "without penalty." Since I'm 58, and did 55/25, I already have no penalty (I believe.)

I get nothing and I don't believe JC gets extra service. Please let me be wrong! I'd be soooooo happy to be wrong.

David Suker said...

The new ERI = The Old Rubber Room.

David Suker said...

The new ERI = The Old Rubber Room.

David Suker said...

The new ERI = The Old Rubber Room.

Anonymous said...

But if you did 55/25 that was already true, right?

Anonymous said...

3 Teachers' interpretations:

SubPart A is for Pension Credit (ERI) with 3 scenarios:
1. You are "otherwise eligible for retirement" = 62+, You have 30+yrs, and/or you bought into 25/55 AND are years/age qualified
2. You are 50+ with 10+ yrs and you did NOT buy into 25/55 (NOTE: you will pay penalties) OR
3. You are 50+ with 10+ yrs and you DID buy into 25/55 you can use Pension Credit to qualify for early retirement to enjoy the Pension Credit without penalty


SubPart B is for 25/55 one time opt-in for immediate retirement (if qualified) and did NOT buy into 25/55

-----

Overall, the ERI is very heavy on the years requirement (25 minimum) and seems to differentiate between the 25/55 opt-ins or NOT with the phrase "without regard to age." It's also very clearly crafted for NYC DOE and offers steep penalties for those that do not nearly make the 25 year requirement. Some examples; "+" means you bought into 25/55:

30/53+ - You can retire under #1 (previously you could not retire until 55)
25/55+ - You can retire under #1
22/52+ - You can retire under #2 (penalty, 6%x2, 3%x8, not enough 'catch-up credit for #3)
10/50+ - You can retire under #2 (penalty; 6%x2, 3%x10 ... 42% the max)
25/50+ - You can retire under #3
24/52+ - You can retire under #3
28/50+ - You can retire under #3
---------------------------------
25/62 - You can retire under #1
28/50 - You can retire under #2 (penalty; 6%x2, 3%x10 ... 42% the max)
10/50 - You can retire under #2 (penalty; 6%x2, 3%x10 ... 42% the max)
25/54 - You can retire under #3
25/55 - You can retire under SUBPART B
28/57 - You can retire under SUBPART B

I'm sure there are those that gravitate towards the penalty language in page 189 like I did, but in order to explain the difference between bullet-point #2 and 3 "without regard to age" and bullet point #1 "otherwise eligible" as well as SUBPART B, there has to be a recognition that 25/55 buy-ins are being treated differently than those that did not. Hope this makes sense but I think there's a lot of 25/55 negativity here and it doesn't read like this for the 3 teachers here that read this ad nauseum. They want people out BUT you need the years or the penalties are likely not worth it; very similar to the pension penalties you would otherwise face with early retirement before age 62 and not enough years, understanding you DO have the option to retire at age 50-54 which was NOT an option since the 1991 buy-out window. So if you really want to leave, you do have the chance there, but they're not going to let you off the hook without a penalty unless you have close to the 25 years AND bought into 25/55; that's our final interpretation and that's the best we can do. Good luck everyone!

Anonymous said...

3 Teachers' interpretations:

SubPart A is for Pension Credit (ERI) with 3 scenarios:
1. You are "otherwise eligible for retirement" = 62+, You have 30+yrs, and/or you bought into 25/55 AND are years/age qualified
2. You are 50+ with 10+ yrs and you did NOT buy into 25/55 (NOTE: you will pay penalties) OR
3. You are 50+ with 10+ yrs and you DID buy into 25/55 you can use Pension Credit to qualify for early retirement to enjoy the Pension Credit without penalty


SubPart B is for 25/55 one time opt-in for immediate retirement (if qualified) and did NOT buy into 25/55

-----

Overall, the ERI is very heavy on the years requirement (25 minimum) and seems to differentiate between the 25/55 opt-ins or NOT with the phrase "without regard to age." It's also very clearly crafted for NYC DOE and offers steep penalties for those that do not nearly make the 25 year requirement. Some examples; "+" means you bought into 25/55:

30/53+ - You can retire under #1 (previously you could not retire until 55)
25/55+ - You can retire under #1
22/52+ - You can retire under #2 (penalty, 6%x2, 3%x8, not enough 'catch-up credit for #3)
10/50+ - You can retire under #2 (penalty; 6%x2, 3%x10 ... 42% the max)
25/50+ - You can retire under #3
24/52+ - You can retire under #3
28/50+ - You can retire under #3
---------------------------------
25/62 - You can retire under #1
28/50 - You can retire under #2 (penalty; 6%x2, 3%x10 ... 42% the max)
10/50 - You can retire under #2 (penalty; 6%x2, 3%x10 ... 42% the max)
25/54 - You can retire under #3
25/55 - You can retire under SUBPART B
28/57 - You can retire under SUBPART B

I'm sure there are those that gravitate towards the penalty language in page 189 like I did, but in order to explain the difference between bullet-point #2 and 3 "without regard to age" and bullet point #1 "otherwise eligible" as well as SUBPART B, there has to be a recognition that 25/55 buy-ins are being treated differently than those that did not. Hope this makes sense but I think there's a lot of 25/55 negativity here and it doesn't read like this for the 3 teachers here that read this ad nauseum. They want people out BUT you need the years or the penalties are likely not worth it; very similar to the pension penalties you would otherwise face with early retirement before age 62 and not enough years, understanding you DO have the option to retire at age 50-54 which was NOT an option since the 1991 buy-out window. So if you really want to leave, you do have the chance there, but they're not going to let you off the hook without a penalty unless you have close to the 25 years AND bought into 25/55; that's our final interpretation and that's the best we can do. Good luck everyone!

Anonymous said...

I will be turning, 53 in May with 25 yrs in September plus the 25 months. Does this mean I get hit with a 10% penalty on the 25 years or on the 27 years and 5 months?

Siegal said...

Will the union weigh in on this at some point and offer explanations? I hope so I’m 50 with 26 years pretty much ready to go but not with a penalty and no health how is that an incentive?

Anonymous said...

48 in September
25 Years 7 months

Too young for the ERI from what I can see...

Jc said...

Thanks to all who have replied & all on this blog because it really is the only place where there is ANY info on ERI

Anonymous said...

They need to present workshops ASAP in order to give people the opportunity to make informed decisions on something that will impact the rest of their lives. I'm 58 with nearly 23 years in, I've made my choice to retire in June. But for a lot of people, they are on the fence, and need to really get precise and detailed information. I hope the UFT is on this.

Anonymous said...

Anon 10:52

Very interesting presentation of the info, thank you!

Sorry to ask individual questions, but I am still trying to clarify.

I am Tier 4, 29 yrs, Age 52 1/2 currently. Under normal circumstances, I would be able to retire with full pension at 30 yrs/ 55 age. I did not buy into 25/55 or any other programs.

I am hoping, though it seems less and less likely, that I can opt in to this ERI, get 29 months of pension credit, and be able to retire. I realize there is a going to be a penalty.

Would I get a penalty on my years being less than 55? [that would be about 2 1/2 yrs] OR a penalty on my years being less than 62? [I don't need to be 62 to get full pension, only 55, so it doesn't seem like I should be penalized the additional 7 years]?

10 + years of penalty is prob too much, but also doesn't make rational sense.

Also, assuming one opts in - do we get to go right from regular payroll to retiree payroll, and maintain our health coverage, or is there a gap [until 55 or some other time]?

If I am facing major penalties plus a gap, there is no point to this for someone like me. I can literally work one more year or more, to get my 30 yrs+ , and use my terminal leave, and prob get no penalties, maybe a short gap in time from active to retiree.

Any insights you have are welcome - I realize this is up in the air at the moment.

Best!

Anonymous said...

DID IT PASS??

Anonymous said...

I'm age 64, with 19 years (including this year).
Was planning to work 1 more year.
My understanding is that I would receive 19 months of service credit, which would put me over 20 years, and full benefit.
Is this correct?

Anonymous said...

I'm 49 with 22 years of service. I am ready to go due to personal life changes.....this does nothing for me :( Good luck and congrats to those that will benefit from this! I am hoping there is some way it can be good for me

Anonymous said...

Gotta be 50+ for any of this. You have to have 25+ years (w the pension credit) also or be 62+ or else it's a big penalty. The big incentive is being allowed to leave without penalty at 50-61 with the 25+ yrs of service. It's a cherry on top for those with 30+ yrs because of all that sweet pension credit. If you're 50 and 30+ yrs in, I want to be you! Going out with a bang. If you would have to pay a penalty, I would avoid this.

Anonymous said...

I read this:

1. You are "otherwise eligible for retirement" = 62+, You have 30+yrs, and/or you bought into 25/55 AND are years/age qualified

...as an "and". In other words, you have to be otherwise eligible to retire (#1) AND #2 OR #3.

You are saying that semicolon at the end of #1 is an "or."

I cannot f'ing believe that my life decision hangs on the meaning of a semicolon.

OR I didn't interpret "otherwise eligible for retirement" correctly. I thought it meant obscure requirements I didn't know about AND one of the other options.

WHY HASN'T THE UNION SPOKEN ON THIS?!? They knew what was in the bill. They should have had lawyers who already analyzed every possible interpretation of it. We should not have to be trying to figure it out ourselves.

Anonymous said...

CRITICAL! Submit papers in April, retire July 1 or risk interruption in income! What is the downside of not submitting paperwork 3 months prior to retirement date?

Anonymous said...

@ Anon 12:24:00 PM: Did you buy into 25/55? Probably not with the # of years, meaning you would fall under the #2. Do the year to get to 30 then the world's your oyster. Yes, you missed out on an automatic +3% on your pension but none of these penalties (2 years or 9) is worth that small addition to your pension. You can take a leave or what have you til age 55, congrats on getting all those years in! The DOE just isn't that desperate to get rid of people in your position it would seem to me.

Anonymous said...

As I see it the ERI/Buyout reads as such:

Part A:
If you are eligible to retire, meaning if you are age 62, or if you are age 55 with 30 or more years of service, or if you bought into the 25/55 program and have the requisite years of service and age, you get ERI credit of one month per year of service and can retire without penalty.

If you are between the ages of 50 and 61, have at least 10 years of service, and did not opt into the 25/55 program, you will be eligible for one month per year of ERI. If your years of service plus the ERI add up to 30 or more years, you can retire without penalty. If they do not add up to 30 years, you can retire but will incur an early retirement penalty.

If you are between the ages of 50 and 61, have at least 10 years of service, and did opt into the 25/55 program, you will be eligible for one month per year of ERI. If your years of service plus the ERI add up to at least 25 years, you can retire without penalty. If they do not add up to 25, you can retire but will incur an early retirement penalty.

Part B:
If you are at least 55 years old and have at least 25 years of service credit, but did not opt into 25/55, you will be able to retire without penalty but will not be eligible for the additional 1 month per year ERI.

Anonymous said...

I know how you feel. Hopefully another one comes out next year, you and quite a few others who missed this can sign up.Hope things work out. Goodluck!

Anonymous said...

I called the union and was told the uft and the city are now negotiating final details and once that is done the union will update and inform members. They could not,however, say when that will be. Hopefully it will only be a few days but who knows.

Anonymous said...

Just want to make this clear for me-
i turn 50 in sept
i have 27.6 years right now
i bought into and completed 55/25.

IF the city approves- i can retire with 60% fas(includes pension credit)
and collect immediately

The Veteran NY Teacher said...

I have a (non 55/25) person I work with who does not understand the word “PENALTY”.. she thinks if she retires at 55 with 28 years she gets 56% and interprets that as the penalty.
No, no no.
The penalty means she gets nothing like 56% (since she’s under 62:

A prorated reduction of up to 27% when retirement occurs before age 62 with less than 30 years of NYS service.

One more thing, You can retire at 54 (or 53 or 52...) you cannot collect till 55. Period, full stop. (Actually , Tier I could but that’s another story)

Michael Gatton said...

From TRS website:

The recently passed New York State budget includes early retirement provisions for certain public employees, which may include some TRS members. However, the City must first decide on the scope and other details before TRS can provide any information. We will post updates when available on our website and social media.

Hopefully their calculators will allow us to figure out our individual situations.

Anonymous said...

I always thought no matter how many years you had, you couldn't collect until 55. 62 if you have under 30 years.

Florence Calandrella said...

Hi I have 27 years and am 52 does anyone know if I'm eligible to retire if this eri passes?

Florence Calandrella said...

Will I receive a penalty?

Anonymous said...

And there is the main issue, argument and conundrum. If you cannot collect until the age of 55, then the ERI is of no benefit even if you have 25+. I am 52 with 26 years. If they really wanted to clear the books of the high priced staff they would allow everyone 50+/25+ to go and hire newbies. This bill still has alot of interpretation to go, but the State did not make this an easy, friendly out.

Prehistoric pedagogue said...

4:43PM. Afraid not. Even with 30 years you will be penalized if you collect your pension before age 55

Florence Calandrella said...

Ok thank you both for your reply

Anonymous said...

@8:33- this is 4:43- thank you
i thought the incentive was to get people out of the system
NOONE is going income free for an extended period of time.
Basically it should be called the 55 year old incentive

Anonymous said...

But would I be eligible for additional service credit under Part A at 58 with 35 years?

Unknown said...

If you didn’t opt in 55/25 but reach 25 years with 2 years credit how is fas calculated anyone.?

Anonymous said...

Good luck James answering all the what about me and my personal situation questions. You’re teachers. Read and comprehend it yourself. Embarrassing.

Anonymous said...

So, for many of us, we wait for the UFT and NYC details.

Penalties for being under 55 will be a big issue for some.

Not collecting pension checks until 55 another issue, especially for those of us in early 50s.

Would someone lose health coverage or need to go on COBRA etc? Another issue.

Loss of Terminal leave, another issue.

For those who can retire with no major issues - KUDOS and good luck! And well-deserved!

The Veteran NY Teacher said...

It goes without saying - or should - that you can’t collect till 55 (and retirements incentives don’t change this). Period. Full stop.

Obviously this might get the 55+ to the magic 30 ... or increase (slightly) the pensions of those who already hit 55/30 ...or get 55/25 to the magic 25...or increase (slightly) the pensions of those who already hit 55/25.

Don’t expect too many takers. Certainly almost NONE under age 55.

Anonymous said...

12:43: I read it as you(non-opt-In to 25/55) can get only one benefit out of 2, either 25 months of credit or no reduction. If you select no reduction then you retire with unpunished pension. If you select 25 months credit then you would be punished with reduction.

Anonymous said...

If you have a well funded TDA and have been contributing to the 457, you probably could go out early (if you have 25 years, are in 55/25 and are between 50-55) and be okay.

You can start drawing from your 457 within 45 days of separation without the 10% penalty. Chase a side hustle, tutor, coach, etc. to bring in some bridge income. Some of you have paid off homes, low or rent stabilized apartments, or HDFC / Mitchell-Lama co-ops. Could be a good time to downsize your home too and use some of the equity to carry you a few years. Maybe you reconsider paying for your child's private college tuition. It can be done, the larger question is how many of you are in a financial position to leave early and for a few years pursue something that is your passion to bridge the gap?

If you still have a mortgage, debt, etc. this probably isn't going to help you.

You can COBRA the health insurance for two years. If you have a spouse who is still working and eligible to pick you up on their insurance, you can go that way too.

Anonymous said...

But as far insurance goes, don't the Union pays for it? Even if we are between 50 and 55. I was told are health, Dental, Vision and Rx. Continues as usual until 65 when Medicare takes over?

Unknown said...

Seems good to me.I would buy in.

Anonymous said...

Retirement. If you have Ghi, you pay about $76 per month if you are single. The money is for the optional rider that gives you drug coverage. This amount can be increased by ghi/emblem health. But for 2021 it went down a few bucks. If you don’t select it, no drug coverage in retirement. Be alert. This has happened to teachers I know. They forgot to check the box for optional rider. Your UFT welfare fund drug coverage ends 2 months or so after you retire. Not sure how eyes and dental covered. I do not use UFT welfare fund participating providers. Get a consultation for accurate info. My opinion.... pension cost of living increases suck. Basically nothing. You better have other savings to supplement as inflation eats away at pension. Best wishes to everyone to make it out in good health.

Bronx ATR said...

@4:13,
UFT pays for nothing. The city pays for it all. The only thing they control is SHIPP. If you don’t buy into it after a year of being retired, you’re barred - even if you are a member in good standing. (It’s the only plus to remaining a UFT member after retiring. Mulgrew, et al use retirees like old whores for their votes.) They’re still lying to those retiring. I just got a long pamphlet from Murphy explaining how wonderful the retiree chapter is and how democratic and how we are so lucky to be the only union that allows retirees to vote. Make your own choices, but don’t do it based fear and lies.

Anonymous said...

@Bornx ATR and 7:56 AM. Thank you both for the details. Appreciate the guidance. I hope they have further details when it is finally adopted by NYC . We are going to need all the fine prints explained to ensure we don't miss out on the benefits. Be safe and Best regards.

Not will to die yet said...

When will this ERI be deciphered by the talking heads and suits and the info be presented to members so we can decide if an opt in is an option.

No plain English explanation of things coming from any agency that is involved in carrying this out or over seeing it.