1. What is the NYC Tier 6 Pension Formula?

The NYC Tier 6 Pension formula calculates the annual pension benefit for New York City employees under Tier 6 retirement plan. It uses a multiplier of 1.67% applied to 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 (total years worked)
• \( FAS \) — Final Average Salary (average of highest 5 consecutive years of earnings)
• \( 1.67\% \) — Pension multiplier for Tier 6 members

Explanation: The formula calculates the annual pension amount by multiplying 1.67% times the number of years served times the final average salary.

3. Importance of Pension Calculation

Details: Accurate pension calculation is essential for retirement planning, understanding retirement benefits, and making informed decisions about retirement timing and financial preparation.

4. Using the Calculator

Tips: Enter years of service as a decimal (e.g., 25.5 years) and final average salary in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for NYC Tier 6 pension?
A: NYC Tier 6 applies to most NYC employees hired on or after April 1, 2012, including teachers, civil service employees, and other public workers.

Q2: What is Final Average Salary (FAS)?
A: FAS is the average of your highest five consecutive years of earnings, which is used to calculate your pension benefit.

Q3: Can I increase my pension benefit?
A: Yes, by working additional years, achieving higher salary levels, or through pension enhancement programs if available.

Q4: When can I retire with full benefits?
A: Full retirement age varies but is typically 63 for Tier 6 members, with reduced benefits available earlier.

Q5: Are there other factors that affect my pension?
A: Yes, factors like early retirement reductions, disability benefits, and survivor benefits can affect your final pension amount.