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

NEW YORK CITY EMPLOYEES’ RETIREMENT SYSTEMESCALATION: POST-RETIREMENT INCREASESIf you retire on or after age 65, your Service Retirement Benefit increases by up to 3% a year ifthe cost of living increases by 3% or more the preceding year. If the cost of living decreases inthe preceding year, your benefit will be reduced by a corresponding percentage, but never bymore than 3% in any year. In no event will your benefit be reduced below the amount of yourinitial benefit at retirement. If you retire between ages 62 and 65, your Escalation will bereduced by 1/36 for each month your retirement precedes age 65. In order to qualify for fullpost-retirement increases, you may postpone receipt of your Service Retirement Benefit untilyour 65th birthday. Post-retirement increases are generally greater than the COLA otherwisepayable to a Tier 4 member.LR: Chapter 890 of the Laws of 1976SR: RSSL §510VESTINGThe vesting provisions in Tier 3 are similar to the vesting provisions of Tier 4. The following differencesare noted:Tier 3 members’ payability date is 62, or on a reduced basis as early as age 55; the payabilitydate for Tier 4 Members in the 62/5 plan is age 62.The reductions for Early Service Retirement are not applicable in Tier 4. Reductions do notapply because vested members in the Tier 4 62/5 plan cannot receive a Vested RetirementBenefit with a reduction prior to age 62.You may postpone receipt of your Tier 3 Vested Retirement Benefit until your 62nd birthdayin order to be eligible for partial post-retirement escalation or until age 65 for full post-retirementescalation.The Vested Retirement Benefit is calculated in the same manner as the Service Retirement Benefit.LR: Chapter 890 of the Laws of 1976SR: RSSL §516RETIREMENT OPTIONSTier 3 retirement options vary slightly from those offered in Tier 4.TIER 4 MEMBERS WITH TIER 3 RIGHTSOption 2:Joint-and-Survivor OptionOption 2 is the same as Option 2 in Tier 4 but with different percentages. You receive a reducedmonthly lifetime benefit. After your death, your surviving beneficiary receives 90% or less (youdecide on the amount in increments of 10%) of your reduced benefit. You can name only onebeneficiary and cannot change the beneficiary you name. If your beneficiary predeceases you,your reduced benefit remains unchanged and ceases upon your death.In-Service Survivor Annuity OptionIn-Service Survivor Annuity Option is an additional option available only in Tier 3. If you are inactive service, or if you have deferred receipt of benefits and have reached age 55, you mayelect to provide financial protection for your beneficiary should you die before your retirementbenefits commence. Under this option, you can elect to provide your beneficiary with a joint- andsurvivorannuity under Options 1 or 2 to be payable should you die between ages 55 and 62, orat any later time before your retirement benefit begins.68