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Tier 4 Pension Formula:
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New York State Retirement Tier 4 is a pension plan for public employees in New York State who joined the retirement system between July 1, 1973 and March 31, 2012. It provides retirement benefits based on years of service and final average salary.
The calculator uses the Tier 4 pension formula:
Where:
Explanation: The formula calculates your annual pension benefit by multiplying 1.67% times your years of service times your final average salary. For service years beyond 20, different calculations may apply.
Details: Accurate pension calculation helps public employees plan for retirement, understand their expected benefits, and make informed decisions about retirement timing and financial planning.
Tips: Enter your total years of service and your final average salary (average of your highest 3 consecutive years of earnings). Both values must be positive numbers.
Q1: What is Final Average Salary (FAS)?
A: FAS is the average of your highest three consecutive years of earnings, which is used to calculate your pension benefit.
Q2: Are there different calculations for years beyond 20?
A: Yes, for service beyond 20 years, different pension formulas or multipliers may apply. Consult with NYS Retirement System for exact calculations.
Q3: When can Tier 4 members retire?
A: Tier 4 members can retire at age 55 with 5 years of service, or at any age with 30 years of service (reduced benefits may apply for early retirement).
Q4: What other factors affect pension benefits?
A: Factors include retirement age, service credit purchases, overtime, and special retirement plans for specific occupations.
Q5: Is this calculator official?
A: This is an estimation tool. For official pension calculations, contact the New York State and Local Retirement System directly.