1. What is NYC Tier 6 Pension?

The NYC Tier 6 Pension is a retirement benefit plan for New York City employees hired after April 1, 2012. It provides a defined benefit based on years of service and final average salary.

2. How Does the Calculator Work?

The calculator uses the NYC Tier 6 pension formula:

Where:

• \( YS \) — Years of Service
• \( FAS \) — Final Average Salary (USD)
• \( 1.67\% \) — Annual accrual rate

Explanation: The formula calculates the annual pension benefit by multiplying 1.67% of the final average salary by the total years of service.

3. Importance of Pension Calculation

Details: Accurate pension calculation helps employees plan for retirement, understand their future benefits, and make informed career decisions. It's essential for financial planning and retirement security.

4. Using the Calculator

Tips: Enter years of service (can include fractional years) and final average salary in USD. Both values must be positive numbers. The calculator will compute the annual pension amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the accrual rate for NYC Tier 6?
A: The accrual rate is 1.67% per year of service for NYC Tier 6 members.

Q2: How is Final Average Salary calculated?
A: FAS is typically based on the average of the highest consecutive years of salary, usually the last 3-5 years of employment.

Q3: Are there minimum service requirements?
A: Yes, Tier 6 members generally need 10 years of service to be eligible for a pension benefit.

Q4: Can years of service include partial years?
A: Yes, partial years of service are typically credited proportionally in pension calculations.

Q5: Are there other factors that affect the pension amount?
A: Additional factors may include early retirement reductions, cost-of-living adjustments, and any applicable penalties or enhancements based on specific circumstances.