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New York Civil Service Tier 6 Pension Formula:
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The New York Civil Service Tier 6 pension is a retirement benefit plan for public employees in New York State. It provides a defined benefit based on years of service and final average earnings, with a standard accrual rate of 1.66% per year of service.
The calculator uses the Tier 6 pension formula:
Where:
Explanation: The formula calculates the annual pension benefit by multiplying the accrual rate (1.66%) by the total years of service and the final average earnings.
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 years of service (including partial years as decimals) and final average earnings in USD. Final average earnings typically represent the average of the highest consecutive years of earnings (usually 3-5 years).
Q1: Who is eligible for Tier 6 pension?
A: New York State public employees who joined the retirement system on or after April 1, 2012, are typically in Tier 6.
Q2: What is included in final average earnings?
A: FAE generally includes regular salary, overtime, and other pensionable earnings during the highest consecutive earning period (usually 3-5 years before retirement).
Q3: Are there maximum benefit limits?
A: Yes, Tier 6 pensions are subject to maximum benefit limits based on years of service and other factors specified by NYS retirement system rules.
Q4: Can years of service include part-time work?
A: Part-time service is typically prorated based on the percentage of full-time equivalent worked.
Q5: How does early retirement affect the pension?
A: Early retirement before the normal retirement age may result in reduced benefits through early retirement factors or penalties.