New York State Retirement Planning
The New York State Retirement System administers the pension program for public employees in New York State. Its charge is to assist employees in making decisions that will maximize their financial resources after retirement. There are a number of features that make the NYS Retirement System an excellent base from which to build your retirement security. Some of the benefits and services provided to members of the systems include:
- The City of Yonkers and NYS Retirement System pays most of the cost of providing your pension benefits
- Your pension benefit is in addition to Social Security benefits
- Your spouse may receive pension benefits if you should pass away before him/her
- You may receive a disability pension if you become disabled
- Vesting provisions allow you to keep your retirement benefits even if you leave public service
For the most accurate information, it is important to know which system and tier you belong to. The tier status defines various guidelines such as contributions, calculation of benefits, and early retirement percentage decreases. Tier status is determined based on the date you join(ed) the system, as follows:
NY State and Local Employees
Tier 6 - April 1, 2012 or after
Tier 5 - January 1, 2010 through March 31, 2012
Tier 4 - September 1, 1983 through December 31, 2009
Tier 3 - July 27, 1976 through August 31, 1983
Tier 2 - July 1, 1973 through July 26, 1976
Tier 1 - Prior to July 1, 1973
NY State and Local Police & Fire
Tier 6 – April 1, 2012 or after
Tier 5 – January 9, 2010 through March 31, 2012
Tier 4 – there is NO Tier 4 in PFRS
Tier 3 – July 1, 2009 through January 8, 2010
Tier 2 – July 31, 1973 through June 30, 2009
Tier 1 – Prior to July 31, 1973
Detailed information on your retirement benefits is available on the Retirement System website.
City of Yonkers employees are invited to participate in the NYS 457 Deferred Compensation Plan. The NYS Deferred Compensation Plan (NYSDCP) is a voluntary retirement savings plan, available to employees through payroll deduction, that allows you to save money and defer taxes until you take distribution at retirement. The City’s current investment provider is Nationwide.
NYSDCP enables you to save for your retirement without making your contributions and investment earnings subject to federal or state income tax. You may invest your account funds in a wide variety of stocks and bonds with the flexibility to modify the percentages as you see fit. Taxes are paid only when you receive benefits from your account. This means you get to keep more of what you earn!
Representatives are available – on a monthly basis – at City Hall to provide assistance and to allow you to review your account.