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)