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New York State and Local Retirement System

Are You Vested? And What It Means

Are You Vested?

Active members in Tier 2, 3 or 4 who have at least five years of credited service are vested. Tier 5 members must have ten years of credited service to be vested.

What It Means

If you leave the payroll before age 55 and are vested, you are eligible for a retirement benefit when you reach age 55. Your retirement benefit will be based on service and salary earned when you were an active member. If you are a Tier 1 or Tier 2 member, you are eligible for a benefit on the first of the month following your 55th birthday. If you are a Tier 3, 4, or 5 member, you are eligible for a benefit on your 55th birthday.

Tier 3 and 4 vested members with less than ten years of service credit have the option of voluntarily withdrawing their membership and receiving a refund or rolling over their contributions to an IRA or other qualified retirement plan.

To receive your retirement benefit at the earliest possible date, you should file a retirement application within 90 days of the date you become eligible. If the Retirement System receives your retirement application after you become eligible, your retirement is effective on the date the application is received. Remember, it is up to you to file a retirement application when you become eligible and wish to receive your benefit.

Your Benefit

Generally, your benefit is determined by the provisions of the retirement plan that you were covered by in your last public employment. However, if you were covered under a special plan, and have not met the service requirements for that plan, your retirement benefit is 1/60th (1.66 percent) of your final average salary for each year of credited service. For an explanation of your benefit, please refer to the booklet for your plan and tier in the Publications section of this site.

The vested retirement benefit is payable for your lifetime and you may elect one of several payment options to provide for a beneficiary.

A benefit reduction for early retirement is required under certain plans:

  • Regular service retirement plans for Tier 2, 3 and 4 ERS members retiring prior to age 62 with less than 30 years of service credit;
  • Regular service retirement plans for Tier 5 ERS members retiring prior to age 62 regardless of service credit;*
  • Regular service retirement plans for Tier 2 and 5 PFRS members retiring prior to age 62;
  • Special service retirement plans for Tier 2, 3, 4, and 5 ERS members (except Section 89 for Tier 2 correction officers);
  • Tier 2 ERS members covered by Section 89-a retiring prior to age 62 with less than 30 years of service credit;
  • Tier 2 ERS members covered by Section 89-b retiring between age 55 and 60 with 20 or more but less than 30 years of service or prior to age 62 with less than 30 years of service.

*Except for Uniformed Court Officers and Peace Officers employed by the Unified Court System.

If you are in one of the following plans, are vested and leave the payroll before age 55, your benefit will not be subject to an early age reduction if you retire at age 55.

  • Retirement benefits for all Tier 2 and Tier 5 PFRS members covered by special plans;
  • Tier 2 correction officers covered by Section 89;
  • Tier 2 members covered by the Section 89-e plans.

To get an estimate of your benefit, use our Benefit Projection Calculator.

(Rev. 3/10)

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