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

LEAVING CITY SERVICEREFUNDSTier 4 members in the 62/5 Plan who resign or separate from City service with less than 10years of Credited Service can voluntarily apply for a refund of the Basic Member Contributionsheld in their Member Contribution Accumulation Fund (MCAF) account inclusive of interestaccrued. However, if a member has at least five but less than 10 years of Credited Service, heor she must submit a form to NYCERS waiving the right to a Vested Retirement Benefit beforea refund can be processed. This is necessary because any Tier 4 member who leaves City servicewith at least five years of Credited Service has the right to a Vested Retirement Benefit. Tier4 members with 10 or more years of Credited Service are not eligible for a refund of their BasicMember Contributions and interest in the MCAF.LR: Chapter 389 of the Laws of 1998SR: RSSL §613 subdivision cTier 4 members in the 62/5 Plan who resign or separate from City service with less than 5 yearsof Credited Service and do not return to City service within a five-year period will have their membershipterminated by operation of law. A membership terminated in such fashion is commonlyreferred to as a “five-year out.” A five-year out can also occur if the time out of City serviceaggregates more than five years in any ten consecutive year period. Such members may applyto receive a refund of the Basic Member Contributions held in their MCAF account, inclusive ofinterest earned up to the five years after resignation or termination of covered employment.Members who last joined NYCERS prior to July 16, 1989 may leave their Basic Member Contributionsin the MCAF where such contributions will continue to accrue interest until their 62ndbirthday. However, if such members apply for a refund before age 62, interest will accrue onlyuntil five years from separation if earlier than the date of the refund.Termination of MembershipLR: Chapter 929 of the Laws of 1937; Chapter 550 of the Laws of 1938SR: NYC Administrative Code §13-146RefundLR: Chapter 470 of the Laws of 1989SR: RSSL §613 subdivision cVESTINGNEW YORK CITY EMPLOYEES’ RETIREMENT SYSTEMVesting refers to your right to receive retirement benefits, even if you terminate employmentbefore you are eligible for payment of a Service Retirement Benefit. Think of it as freezing yourretirement benefit and thawing it out when you reach age 62.LEAVING CITY SERVICEELIGIBILITY AND PAYABILITY DATEYou can vest in the 62/5 Plan if you have at least five years of Credited Service before you have separatedfrom City service. Upon reaching the age of 62, you are able to collect a Vested RetirementBenefit. The date on which you reach age 62 is commonly referred to as your Payability Date.Five-Year VestingLR: Chapter 389 of the Laws of 1998SR: RSSL §612 subdivision a28