Nycers Pay Schedule (2024)

FAQs

How long does NYCERS take to finalize their pension? ›

You will receive your first full pension check, which will include any appropriate retroactive adjustments, approxima- tely 2 months after we receive your retirement option select- ion. If NYCERS has an unusually large number of retirement applications filed at one time, the process may take longer.

Your Final Average Salary is determined by the greater of the average annual wages earned during any three consecutive calendar years or the 36 months immediately preceding your retirement date.

It takes approximately 10-15 business days for NYCERS to process your loan application. A check for the amount of the loan will be mailed to the address indicated on your loan application. The current interest rate on a Tier 1 and 2 Loan is 6%.

The average pension received by “full-career” retirees was $57,290, compared to $57,516 for last year's retirees. Among all 156,061 NYCERS retirees, 2,296 received six-figure pensions, a 15 percent increase from the 1,993 in 2021.

It usually takes between 3 – 4 months to process your pension application and receive payment. That timeframe may vary depending on many factors (e.g., incomplete application and/or missing documentation may delay your process).

You must accurately complete a retirement application that may appear to be simple, but can be deceptively complicated. Then your agency's human resources office has to review the information you provide and compile the personnel documents to accompany your retirement application.

The permitted lump sum you can take out of your final salary pension is broadly calculated as 25% of the total value of your crystallised pension benefits. It's sometimes known as a pension commencement lump sum.

The death benefit is equal to your earnings multiplied by your years of service, not to exceed three years of earnings.

There are definite advantages to a final salary pension. These include the fact that it's a guaranteed income for life that's likely to increase year-on-year; it's managed for you; you know what your income will be and your spouse, partner of dependent beneficiaries may receive benefits.

You must pay at least 2% of your gross salary per pay period and the payments must be sufficient to repay the amount borrowed, plus interest, within five years. See the Non-Payment Section of this brochure for information on how to repay your loan if you leave City service or go off payroll for any length of time.

Is a NYCERS loan taxable? ›

NYCERS' benefit payments (monthly retirement allowances, loans and excess refunds) are subject to Federal taxes, but are exempt from New York State and local income taxes if your primary residence is within New York State.

In addition to being taxable at the member's normal tax rate, if you have not reached age 55 and you choose not to roll over the taxable portion, you will also be subject to an IRS early distribution penalty tax of 10% when you file your Federal tax return.

Average Monthly Retirement Income

According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.

As such, if you have access to a $50,000 annual income in retirement, it may be enough to cover your expenses. Now the one caveat is that over time, inflation might make it so a $50,000 income no longer suffices. But for now, we'll go with that number since it's reflective of what older Americans are spending today.

Tier 4 – Members who joined NYCERS between July 27, 1976 and March 31, 2012 except Correction Officers and DA Investigators. Tier 6 – Members who joined NYCERS on or after April 1, 2012 except Correction Force and certain Sanitation Force and DA Investigators.

Factors That Speed and Slow Your Application Approval

The average time it takes to process a Social Security application is six weeks. Of course, this number can fluctuate. Several things can speed up or slow down the process of your Social Security application that are in your control.

In most cases, your first check will be issued within 30-45 days of your retirement date or the date your retirement application was received and processed, whichever is later.

You will be eligible for a service retirement benefit when you reach age 55, and have five or more years of service credit earned under this plan after July 1, 1973.

4 Months After Retirement

Allow at least four months for all final payroll to be processed and adjustments to be made to your retirement.