April Fool No Joke: Tier 4 Pension Last Calls

The best the UFT could do on this middle of the night assault by the NY State Legislature on pensions by creating a Tier 6 was to tell people to get themselves into the system by today, April Fools. There were long lines.


Of course, as the ed deformers execute their plan they don't really expect many teachers to spend enough years to get a pension.
Pics and comments from a former NYC teacher.
Pension comparison by Loretta Prisco (Independent Community of Educators).

Teacher Comment:
The future public sector workers in NY are going to be screwed as of today, April 1 (oh, I wonder if Albany is giving us a bad April's Fools Joke).

Anyway, the pictures are depressing. So many people were lined up at 65 Court Street waiting to enroll with BERS (board of education retirement system, for those who do not know what it stands for).

Comparison of Tier 4/6

Credited Service

Tier IV

1.67% per year for those with less than 20 years of credited service

2% per year of service for those with 20 to 30 years of credited service

1.5% per year of service for each year of credited service beyond 30 years

Tier VI

1.67% per year for those with less than 20 years of credited service

For those with 20 or more years of credited service, 35% for the first 20 years plus 2% for each year of credited service in excess of 20 years

Full Retirement

Tier IV – age 57

Tier VI – age 63

Vest after

Tier IV – 5 years

Tier VI – 10 years

 

Contributions

Tier IV                                           Tier VI

4.85% for 10 years                         No contribution cutoff

                                                      Salary up to $45,000 – 3%

                                                      Salary $45,001 to $55,000 – 3.5%

                                                      Salary $55,001 to $75,000 – 4.5%

                                                      Salary $75,001 to $100,000 – 5.75%

                                                      Salary greater than $100,000 – 6%

 

Final Annual Salary (FAS)

Tier IV

Average of 3 consecutive years but the average in one year can’t exceed the average of the other two years by more than 10%

Tier VI

Average of wages earned during any continuous period of employment for which the member was credited with 5 years of credited service. However, wages earned during any year used cannot exceed the average of the previous four years by more than 10%