Pension Calculator Nys Retirement

NYS Tier 6 Pension Formula:

\[ Pension = (1.75\% \times 20 + 2\% \times (YS - 20)) \times FAE \]

Annual Pension:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the NYS Tier 6 Pension Formula?

The NYS Tier 6 Pension Formula calculates retirement benefits for New York State employees with 20 or more years of service. It provides a structured approach to determine annual pension based on years of service and final average earnings.

2. How Does the Calculator Work?

The calculator uses the NYS Tier 6 pension formula:

\[ Pension = (1.75\% \times 20 + 2\% \times (YS - 20)) \times FAE \]

Where:

\( YS \) — Years of Service (must be 20 or more)
\( FAE \) — Final Average Earnings (USD)
\( 1.75\% \) — Pension factor for first 20 years
\( 2\% \) — Pension factor for years beyond 20

Explanation: The formula calculates 1.75% of final average earnings for each of the first 20 years of service, plus 2% for each additional year beyond 20 years.

3. Importance of Pension Calculation

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

4. Using the Calculator

Tips: Enter years of service (must be 20 or more) and final average earnings in USD. The calculator will compute your estimated annual pension benefit.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for Tier 6 pension benefits?
A: New York State employees who joined the retirement system on or after April 1, 2012, with at least 20 years of service.

Q2: What constitutes Final Average Earnings?
A: FAE typically represents the average of your highest consecutive earnings over a specified period (usually 3-5 years) before retirement.

Q3: Is there a maximum pension benefit?
A: Yes, there are maximum benefit limitations based on your tier and years of service. Consult with NYS retirement system for specific limits.

Q4: Can I retire with less than 20 years of service?
A: This calculator is for 20+ years of service. Different rules apply for early retirement with fewer years - consult your retirement plan.

Q5: How does age affect my pension?
A: While this formula focuses on service years, retirement age can affect benefit reductions or enhancements. Full retirement age varies by tier and service years.