In March, the New York State Legislature approved changes to all state retirement systems — affecting new CUNY employees who enroll in TRS, ERS, BERS or TIAA-CREF.
New employees joining the University on or after April 1, 2012, fall into a new pension category called “Tier 6.” Employees who enrolled in a pension plan prior to April 1, 2012 are not affected.
Under Tier 6, ten years of service are required for vesting. Tier 6 also requires a 3 percent employee contribution, regardless of salary, through March 31, 2013. Beginning April 1, 2013, the employee contribution rate will be indexed according to salary level up to a maximum of 6 percent and will continue for the length of the employee’s career. Tier 6 increases the eligible retirement age to 63 for members to receive unreduced benefits; employees who retire between 55 and 63 are subject to a reduction of 6.5 percent for each year preceding age 63.
Confer with the experts in your Human Resources Office to find out more.