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NY State Retirement Pension Formula:
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The NY State Retirement Pension is a defined benefit plan for Tier 6 members with 20+ years of service. It provides a lifetime retirement benefit based on final average earnings and years of service credit.
The calculator uses the NY State Retirement formula for Tier 6:
Where:
Explanation: The formula calculates your annual pension by applying different percentage rates to your service years and multiplying by your final average earnings.
Details: Accurate pension calculation helps in retirement planning, understanding your future income, and making informed decisions about retirement timing and financial preparation.
Tips: Enter your Final Average Earnings in USD and the number of additional years beyond 20. Both values must be valid (FAE > 0, additional years ≥ 0).
Q1: What is Final Average Earnings (FAE)?
A: FAE is typically the average of your highest consecutive earnings, usually the last 3-5 years of employment, depending on your retirement plan.
Q2: What is Tier 6 in NY State Retirement?
A: Tier 6 refers to members who joined the retirement system on or after April 1, 2012, with different benefit structure than previous tiers.
Q3: Are there minimum retirement ages for Tier 6?
A: Yes, Tier 6 has specific age requirements: 63 for full retirement benefits, with reduced benefits available at age 55 with 10+ years of service.
Q4: Can I purchase additional service credit?
A: In some cases, you may purchase service credit for previous public employment or military service, which can increase your pension amount.
Q5: How does early retirement affect my pension?
A: Early retirement before age 63 typically results in a reduced pension amount based on actuarial reduction factors.