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NYS Employee Pension Formula (Tier 6):
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The NYS Employee Pension Calculator estimates the annual pension benefit for Tier 6 employees of New York State. It uses the standard pension formula based on years of service and final average earnings.
The calculator uses the NYS Tier 6 pension formula:
Where:
Explanation: This formula calculates the basic annual pension amount based on the employee's service history and final average salary.
Details: Accurate pension estimation is crucial for retirement planning, financial security assessment, and making informed decisions about retirement timing and post-retirement financial needs.
Tips: Enter years of service (must be less than 20 years for this calculation) and final average earnings in USD. Both values must be positive numbers.
Q1: What is Tier 6 in NYS pension system?
A: Tier 6 refers to the pension tier for NYS employees who joined the retirement system on or after April 1, 2012, with different benefit calculations than previous tiers.
Q2: What counts as final average earnings?
A: FAE typically represents the average of the highest consecutive years of salary, usually the final 3-5 years of employment.
Q3: Are there other factors that affect pension amount?
A: Yes, factors like retirement age, service credit purchases, and special retirement plans may affect the final pension amount.
Q4: What happens if years of service exceed 20?
A: For service beyond 20 years, different pension formulas or multipliers may apply. This calculator is specifically for service less than 20 years.
Q5: Is this calculator official?
A: This is an estimation tool. For precise pension calculations, consult with the NYS Retirement System or your human resources department.