Thursday, July 3, 2014

Tier 4, 5, 6 Pension Plans Comparisons: The later you enter, the more you get screwed

Thanks to Jeff Kaufman for sending this to ICE Mail. We used to joke about Tier 12 - we're up to Tier 6 so we are half way there. Coming one day - Work 'till you are 80 --- but we know the reality -- few will make it to full pension.



Tier 4 Pension Plan (applicable to members hired before 01/01/10)
Employee Pension Contribution.............3% for ten years, *0% after (*except for special earlier retirement)
Final Average Salary................Top three consecutive years
Full Retirement Age..................62 years of age
Pension Vesting Period..........................5 years
Multiplier, less than 20 years.....1.67% per year
Multiplier 20 years or more........2.0% per year
Multiplier more than 30 years.....1.5% per year
Retiree Health Benefits Vesting Period..............10 years of service
 Special Requirements................Full Retirement 30/55
Special Requirements.................Full Retirement 25/55
Age Reduction Factor
55(.73)56(.76),57(.79),58(.82),59(.85),60(.88),61(.94)

Tier 5 Pension Plan (applicable to members hired on or after 01/01/10 and before 04/01/12)
Employee Pension Contribution.............3% until retirement
Final Average Salary................Top three consecutive years
Full Retirement Age..................62 years of age
Pension Vesting Period..........................10 years
Multiplier, less than 25 years.....1.67% per year
Multiplier 25 years or more........2.0% per year
Multiplier more than 30 years.....1.5% per year
Retiree Health Benefits Vesting Period..............10 years of service
 Special Requirements................Full Retirement 30/57
Age Reduction Factors
55(.62),56(.67),57(.72),58(.77),59(.82),60(.87),61(.93)

Tier 6 Pension Plan (applicable to members hired on or after 04/01/12)
Employee Pension Contribution.................3.5%-6% until retirement
Final Average Salary....................Top five consecutive years
Full Retirement Age......................63 years of age
Pension Vesting Period.............................10 years
Multiplier, less than 20 years.........1.67% per year
Multiplier 20 years or more............1.75% per year
Multiplier more than 30 years.........1.75% per year
Retiree Health Benefits Vesting Period..................15 years of service
 Special Requirements....................None
Age Reduction Factors 
55(.48), 56(.55),57(.61),58(.68),59(.74),60(.81),61(.87),62(.93)

2 comments:

  1. Can anyone point to where it is documented that tier 6 teachers need to teach 15 yrs to access retirement health benefits? This page on the uft site says 10 yrs. http://www.uft.org/new-teacher-articles/time-think-about-your-retirement Thank you...

    ReplyDelete
  2. I called the dept of labor relations at 55 water street and they said this article has bogus data in it, there was no change in tier 6 vesting for health benefits, I suggest that you either fix the post or take it down.

    ReplyDelete

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