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NYS Tier 6 Pension Formula:
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The NYS State Pension Calculator estimates the annual pension benefit for Tier 6 members of the New York State retirement system. It uses the standard Tier 6 formula to calculate retirement benefits based on years of service and final average earnings.
The calculator uses the NYS Tier 6 pension formula:
Where:
Explanation: The formula calculates the annual pension benefit by multiplying the pension multiplier (1.66%) by the years of service and final average earnings.
Details: Accurate pension calculation is essential for retirement planning, financial security assessment, and making informed decisions about retirement timing and benefit options.
Tips: Enter years of service (up to 20 years) and final average earnings in USD. Both values must be positive numbers for accurate calculation.
Q1: What is Tier 6 in NYS retirement system?
A: Tier 6 is the retirement tier for NYS employees who joined the retirement system on or after April 1, 2012, with different benefit structure than previous tiers.
Q2: What is the maximum years of service for this calculation?
A: The formula applies for up to 20 years of service. Additional service beyond 20 years may have different calculation methods.
Q3: How is Final Average Earnings determined?
A: FAE is typically the average of the highest consecutive earnings over a specified period (usually 3-5 years) before retirement.
Q4: Are there other factors that affect pension amount?
A: Yes, factors like retirement age, service credit purchases, and optional retirement plans can affect the final pension amount.
Q5: Is this calculator applicable to all NYS employees?
A: This calculator is specifically designed for Tier 6 members. Other tiers (1-5) have different pension formulas and multipliers.