Why help NYSUT
Fix Tier 6?

Tier 6 members must pay into the retirement system their entire careers.
Tier 6 members must contribute more as their pay increases, starting at 3 percent and growing to 6 percent.
Tier 6 members can’t retire before 63 without heavy penalties.
Tier 6 doesn’t incentivize professionals to enter, or stay in, education.
NYSUT knows how to get this done. In 2000, we helped end career-long contributions and reduced early retirement penalties for Tier 4 members.

Why help NYSUT
Fix Tier 6?

Tier 6 members must pay into the retirement system their entire careers.
Tier 6 members must contribute more as their pay increases. For TRS members, that starts at 3 percent and grows to 6 percent. For ERS members, it starts at 3 percent and grows to 4.5 percent.
Tier 6 ERS members can’t retire before 63 without heavy penalties.
Tier 6 doesn’t incentivize professionals to enter, or stay in, education.
NYSUT knows how to get this done. In 2000, we helped end career-long contributions and reduced early retirement penalties for Tier 4 members.

Tier 6 members must pay into the retirement system their entire careers.
Tier 6 members must contribute more as their pay increases. For TRS members, that starts at 3 percent and grows to 6 percent. For ERS members, it starts at 3 percent and grows to 4.5 percent.
Tier 6 ERS members can’t retire before 63 without heavy penalties.
Tier 6 doesn’t incentivize professionals to enter, or stay in, education.
NYSUT knows how to get this done. In 2000, we helped end career-long contributions and reduced early retirement penalties for Tier 4 members.

How many members are in Tier 6? What tiers do our members belong to?

It’s been nearly 15 years since Tier 6 was added to the pension system, and 46 percent of New York State Teachers Retirement System (NYSTRS) members are now Tier 6.

In that time, over 100,000 of our members have entered public service with a pension benefit that is significantly lower than our members in Tier 4.  

Tiers 1, 2, 3: Less than 1 percent of NYSTRS members are Tier 1, 2 and 3 members.
Tier 4: 50 percent of NYSTRS members belong to Tier 4.
Tier 5: 4 percent of NYSTRS members belong to Tier 5.
Tier 6: 46 percent of NYSTRS members belong to Tier 6.

How bad is it?

Tier 6 will result in significant reductions to employee’s pensions.
Penalties for early retirement are devastating to an employee's retirement security.

It is a problem for our new members to have such a reduction in their overall retirement security but that is not all; it is a problem for all our members. 

The shortages caused by the lack of people entering public service is real; we see it every day in our schools, colleges, universities and public hospitals.  
These shortages impact our current members with larger class sizes, fewer classroom assistants, fewer substitutes and higher burnout rates. 
Without measures to retain current employees and recruit new hires — such as fixing Tier 6 — the lives of our members and those they serve, including students and patients, will be negatively impacted.

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Why women can't afford to wait?

70% OF NYSUT MEMBERS ARE WOMEN and pension inequality hits our female members hardest. When educators take time to care for children, aging parents, or family members with disabilities, they face an impossible choice: continue working into their late 60s or retire with devastating financial penalties.

Women who take even short caregiving breaks face severe retirement penalties under Tier 6, earning just 26.4% of final salary after 30 years compared to 60% in Tier 4.
Women provide most unpaid caregiving in New York and lose over $300,000 in lifetime earnings, losses that Tier 6 further compounds by forcing a choice between family and financial security.
Thirty years should count as a full career, yet Tier 6 further penalizes women for essential caregiving responsibilities such as maternity leave, child-rearing, caring for aging parents, supporting family members with disabilities, and managing family health crises.

"MAKING SURE WE HAVE A FAIR PENSION SYSTEM IS PART OF KEEPING NEW YORK AN AFFORDABLE AND FULFILLING PLACE WHERE WOMEN CAN LIVE, WORK, RAISE FAMILIES — AND RETIRE WITH DIGNITY."

NYSUT President Melinda Person

What are the differences between Tiers 4, 5, and 6?

NYSTRS Comparison	Tier 4	Tier 5	Tier 6
Membership	9/1/83 – 12/31/09	1/1/10 – 3/31/12	On or after 4/1/12
Employee Contribution	3% for first 10 yrs, 0% after 10 yrs	3.5% for entire career	3% - $45K or less 3.5% - > $45K-$55K 4.5% - > $55K-$75K 5.75% - > $75K-100K 6% - over $100K
Pension Calculation	1 2/3% per yr < 20 yrs 2% per yr for 20-30 yrs 1 ½% per yr > 30 yrs	1 2/3% per yr < 25 yrs 2% per yr for 25-30 yrs 1 ½% per yr > 30 yrs	1.67% per yr < 20 yrs, or 1.75% per yr at 20 yrs 35% plus 2% per year beyond 20 yrs
Age of First Eligibility Without Penalty	Age 55 with 30 years	Age 57 with 30 years	~~Age 63~~, Age 58 with 30 years thanks to NYSUT advocacy
Minimum yrs of srvc (aka “vesting”)	5 years	5 years	~~10 years~~, now 5 years thanks to NYSUT advocacy
Final Average Salary	Avg of 3 highest consecutive years of salary	Avg of 3 highest consecutive years of salary	~~5 year average with added restriction on includable salaries~~ Avg of 3 highest consecutive years of salary (thanks to NYSUT advocacy!)

ERS Comparison	Tier 4	Tier 5	Tier 6
Membership	9/1/83 – 12/31/09	1/1/10 – 3/31/12	On or after 4/1/12
Employee Contribution	3% for first 10 yrs, 0% after 10 yrs	3.0% for entire career	3% - $75K or less 4.25% - $75K-$100K 4.5% - over $100K Rates lowered in 2026 thanks to NYSUT advocacy
Pension Calculation	1 2/3% per yr < 20 yrs 2% per yr for 20-30 yrs 1 ½% per yr > 30 yrs	1 2/3% per yr < 25 yrs 2% per yr for 25-30 yrs 1 ½% per yr > 30 yrs	1.67% per yr < 20 yrs, or 1.75% per yr at 20 yrs 35% plus 2% per year beyond 20 yrs
Age of First Eligibility Without Penalty	Age 55 with 30 years	Age 62 with 30 years	Age 63
Minimum yrs of srvc (aka “vesting”)	5 years	5 years	~~10 years~~, now 5 years thanks to NYSUT advocacy
Final Average Salary	Avg of 3 highest consecutive years of salary	Avg of 3 highest consecutive years of salary	~~5 year average with added restriction on includable salaries~~ Avg of 3 highest consecutive years of salary (thanks to NYSUT advocacy!)

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