Service Retirement Benefits and Allowances Overview
Explore detailed information on pension and retirement benefits, membership services, beneficiaries, computation of retirement allowances, early retirement reductions, and service retirement examples under Tier III/IV. Learn about service credit, death benefits, fractional beneficiaries, and more available options at retirement. Plan your retirement wisely based on the provided calculations and scenarios.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
PENSION & RETIREMENT
MEMBERSHIP SERVICE Service Credit Membership service Transferred service Prior service Amann service Military service _____________________ Total Service Credit Service Credit Available For Purchase You may purchase credit for optional service. To obtain a cost letter contact TRS at (888)8NYC-TRS / (888)869-2877 or visit http://www.trs.nyc.ny.us
BENEFICIARIES QPP Beneficiaries Death benefit Plan #2 One Year s salary, up t o a maximum of three years salary plus MCAF and ASAF. (reduces after retirement 1styear 50% 2nd year 25% 3rdyear and all years after 10%) TDA Beneficiaries Fractional Beneficiaries QPP Beneficiaries (available options at retirement)
COMPUTATION OF ALLOWANCE SERVICE RETIREMENT Tier III/IV 3% contribution for 10 years Fewer than 20 years =1.67% x number of years x FAS* 20 30 years= 2% x number of years x FAS More than 30 years = 60% for first 30 years, each additional year above 30 years @ 1.5% In addition a benefit on the Annuity Savings Accumulation Fund (ASAF) Reduction for early retirement between ages of 55 and 62 with fewer than 30 years of service** * FAS- Average earned salary of best three consecutive years with certain limitations. ** Unless enrolled in 55/25 or 55/27 program
REDUCTION FOR EARLY RETIREMENT Tier IV Age Reduction % Benefit 55 27% 73% 56 24% 76% 57 21% 79% 58 18% 82% 59 15% 85% 60 12% 88% 61 6% 94% 62 0% 100%
SERVICE RETIREMENT EXAMPLE TIER IV 19 Years of Service (Example 2A) 20 Years of Service (Example 2B) Date of retirement : Age: Years of Service: FAS: ASAF: 7/1/21 63 20 $86,800 $ 8,900 Date of retirement: Age: Years of Service: FAS: ASAF: 7/1/20 62 19 $85,600 $ 8,400 $86,800 X 40% =$34,720 $8900 X .0974 =$866 $900 + $ 900 $34,700 $85,600 X 31.73% =$27,160 $8,400 X .094 =$790 $800 + $ 800 Retirement Allowance $27,200 $28,000 Retirement Allowance $35,600 Difference for 1 year =$7,600 6
SERVICE RETIREMENT EXAMPLE TIER IV 30 Years of Service (Example 1B) 29 Years of Service (Example 1A) Date of retirement Age at retirement Years of Service FAS ASAF 7/1/21 58 30 $100,049 $12,600 Date of retirement: Age at retirement: Years of Service: FAS: ASAF: $100,049 X 58% =$58,028 X .79 = $45,842 7/1/20 57 29 $100,049 $12,000 $100,049 X 60% =$60,029 ASAF = $12,600 X .0871 =$1,097 + $1,100 Retirement Allowance $60,000 ASAF = $12,000 X .0861 =$1,033 + $ 1,000 $45,800 $61,100 Retirement Allowance $ 46,800 Difference for 1 year = $14,300 7
SERVICE RETIREMENT EXAMPLE TIER IV Did not opt-in 55/25 Plan Opted-In 55/25 Plan Date of retirement: 7/1/2020 Age: Years of Service: FAS: ASAF: Date of retirement: Age: Years of Service : FAS: ASAF: $100,000 X 56% = $12,000 X .0861 + Retirement Allowance 7/1/2020 57 28 $100,000 $ 12,000 $ 56,000 $ 1,000 57 28 $100,000 $ 12,000 $100,000 X 56% = $56,000 x .79 $ 44,200 $12,000 X .0861 $ 1,000 Retirement Allowance $ 45,200 $ 57,000 Difference for opting-in $ 11,800 per year8
OPTIONS AVAILABLEAT RETIREMENT Maximum Option 1 Option 2 Option 3 (five year certain) Option 4 (10 year certain) Option 5-1 (pop-up on Option 1) Option 5-2 (pop-up on Option 2)
TDA INVESTMENT OPTIONS TDA funds Fixed Return Fund Diversified Equity Fund* Balanced Fund* International Equity Fund* Sustainable Equity Fund* U.S. Equity Index Fund* International Equity Index Fund* *Based on the monthly unit values TDA retirement options Direct rollover Annuitization Deferral RMD Withdrawal
