62-5 SPD:62/5 SPD.qxd - NYCERS

More documents

Recommendations

Info

SUMMARY PLAN DESCRIPTION - 62/5 TIER 4 MEMBERS VERSION APRIL 2012PURCHASED SERVICE (BUY-BACK)Purchased Service, commonly referred to as buy-back, is previous full-time or part-time publicservice rendered in the employ of a public entity anywhere in New York State that has been fullypaid for and credited. Previous service will be credited to members who have rendered at leasttwo years of Membership Service.Generally, in order to purchase previous service, members must have been on the payroll of apublic entity (not a private entity) in a position which would have allowed membership in a publicemployee retirement system in New York City or New York State. One benefit of purchasingprevious service is the inclusion of such service as part of your Credited Service, which ultimatelywill enhance your retirement benefit. Another benefit is that purchasing such servicemay accelerate the cessation of your Basic Member Contributions (see page 6). Purchasingservice does not change your membership date.LR: Chapter 414 of the Laws of 1983, as amended by Chapter 552 of the Laws of 2000SR: RSSL §609 subdivision b(1)Application Process & CostIn order to purchase previous service, you must complete an Application (Form #241 from you;Form 242 and/or 243 from your employer) and file it with NYCERS while you are on active payroll.You may also apply online provided that you are a MY NYCERS accountholder. If you separatefrom City service, you are generally not allowed to initiate a new claim to purchase previousservice unless you are purchasing service to reach a threshold for vesting or disability, five yearsor ten years, respectively.Once your paper application or online application is filed, NYCERS will verify your previous serviceand salary earned. Verifying the salary earned is essential to calculating the cost. The cost isdetermined by multiplying 3% by the salary earned during such previous service, plus interest ata rate of 5% compounded annually. The 3% represents the Basic Member Contributions that youwould have been required to make had you been a member of a retirement system at that time.Since those monies would have generated interest at a rate of 5%, the cost also includes interest.Once the cost is calculated, NYCERS will send a cost letter containing a few payment options:A lump-sum payment of the entire amountA partial lump-sum payment and the balance paid through payroll deductionsPayment of the entire amount through payroll deductionsA direct rollover of funds from your NYC Deferred Compensation Plan account (457 or 403b)or MTA Deferred Compensation Plan account for employees of MTA Bridges and Tunnels andthe NYC Transit Authority (457 or 401k), which allows the continuation of the tax shelter onthose moniesIf you receive your cost letter and fail to send payment by the time referenced in the letter,NYCERS will automatically begin payroll deductions. Should you wish to cancel your application,you must file Form #238 prior to the date payroll deductions are scheduled to begin. If payrolldeductions have begun, you may cancel such deductions by filing Form #239. You will receivecredit for service you purchased up to the effective cancellation date. If payroll deductions havebegun and you wish to pay off the entire outstanding balance in a lump sum, you may file Form#240 and a payoff amount will be calculated and sent to you.Members who participate in the NYC Deferred Compensation Plan who wish to pay from their457 account must submit a copy of the cost letter to the NYC Deferred Compensation Plan, 40WWW.NYCERS.ORGCREDITED SERVICE11
NEW YORK CITY EMPLOYEES’ RETIREMENT SYSTEMRector Street, 3rd floor, New York, NY, within 15 days after receipt of the cost letter. You mustcomplete an "In-Service Distribution Form" at Deferred Compensation. The funds will then betransferred directly to NYCERS from the banking institution and will be applied toward the paymentof the previous service you have claimed. Members requiring more information shoulddirect inquiries to Deferred Compensation Plan Client Services at (212) 306-7760.Employees of the NYC Transit Authority or MTA Bridges and Tunnels who participate in the 457or 401(k) MTA Deferred Compensation Plan should contact such plan directly at (877) 756-4682 for detailed information.Employees of the Health and Hospitals Corporation who participate in the 403(b) Plan administeredby Prudential Retirement Services may use funds in such plan to purchase previous service.All inquiries should be directed to Prudential at (800) 458-6333.NOTE: NYCERS members, except NYC Transit Authority and MTA Bridges and Tunnels employees,may not use funds in their 401(k) Plan to purchase previous service.Time spent off payrollGenerally, members are not permitted to purchase previous service for time spent off payroll.Exceptions to this general rule have been enacted recently. For example, NYC Carpenters andSupervisory Carpenters who were laid off because of economy measures on or after June 1,1991 and who returned to service prior to July 1, 1993 can purchase the period of time duringwhich they were laid off. NYC Parks Department employees in the title of Climber and Prunerwho were laid off because of economy measures on or after July 1, 1991 and who returned toservice prior to July 1, 1995 can purchase the period of time during which they were laid off. Thelength of layoff service Carpenters and Climbers and Pruners may purchase cannot exceed 25months. Members employed with the School Construction Authority who were laid off due to economicmeasures on or after December 1, 2002 and who returned to service prior to January 8,2008 can purchase the period of time during which they were laid off.CARPENTERSLR: Chapter 697 of the Laws of 2006SR: Civil Service Law §80 subdivision 7-cCLIMBER & PRUNERLR: Chapter 182 of the Laws of 2007SR: Civil Service Law §80 subdivision 7-dSCHOOL CONSTRUCTION AUTHORITYLR: Chapter 157 of the Laws of 2010SR: Public Authorities Law §1738 subdivision 2Another exception to this general rule applies to MTA Bridges and Tunnels employees in thetitles of Bridge and Tunnel Officer, Sergeant or Lieutenant in a non-managerial position, Bridgeand Tunnel Maintainer, Assistant Bridge and Tunnel Maintainer, Senior Bridge and Tunnel Maintainerand Laborer, or NYC Transit Authority members, who are off payroll and receiving a Workers’Compensation Benefit.CREDITED SERVICELR: Chapter 300 of the Laws of 1998, as amended by Chapter 366 of the Laws of 1999SR: RSSL §609 subdivision a(4)MEMBERSHIP REINSTATEMENTCurrent members who were previous members of a public employee retirement system in NewYork City or New York State may apply to restore their original membership date. In order to be12
Page 3: NEW YORK CITY EMPLOYEES’ RETIREME
Page 7 and 8: INTRODUCTIONThe New York City Emplo
Page 11 and 12: MEMBERSHIP AND ELIGIBILITYTier 4 me
Page 13 and 14: NEW YORK CITY EMPLOYEES’ RETIREME
Page 15 and 16: CONTRIBUTIONSThe retirement benefit
Page 19: CREDITED SERVICEIn NYCERS’ define
Page 37 and 38: LEAVING CITY SERVICEREFUNDSTier 4 m
Page 43 and 44: THE SERVICERETIREMENT PROCESSFILING
Page 55 and 56: DISABILITY RETIREMENTNo one likes t
Page 58 and 59: SUMMARY PLAN DESCRIPTION - 62/5 TIE
Page 66 and 67: SURVIVORBENEFITSSUR-
Page 70 and 71:
SUMMARY PLAN DESCRIPTION - 62/5 TIE
Page 72 and 73:
Page 74 and 75:
TIER 4MEMBERS WITHTIER 3 RIGHTSTIER
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
TAXATIONTAX-
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90:
show all

62-5 SPD:62/5 SPD.qxd - NYCERS

Create successful ePaper yourself

Delete template?

Save as template?