NYC-WTC_000195490

NYC 9/11 Public Portal Document

system prior to July, 1973. In general, other than the uniformed forces. Tier I members with 25 years of service may retire at age 55 and receive a benefit which is 55 percent of final year’s salary. Members of the uniformed forces under Tier I are eligible to retire after 20 years of service on a half-pay retirement allowance.

Tier II covers all employees who joined City pension systems between July, 1973 and June, 1976. Tier II benefits are generally lower than Tief I benefits.

Tier III legislation was enacted statewide in 1976 to cover employees joining pension systems on and after July 1,1976, excluding uniformed police officers and firefighters, who continue to be members of Tier II. Tier III benefits are based on a three-year average salary and include a Social Security offset to the benefit calculation.

Tier JV was enacted under Article 15 of the Laws of 1983, to supersede Tier III. All Tier III members with th? exception of uniformed police, fire and correction employees were transferred to Tier IV effective September 1, 1983. The Tier IV plan is more costly than Tier III, predominantly because it eliminated the Social Security offset feature of Tier III. ' /

On June 29, 1984, the New York Court of Appeals held that the provisions of the Tier IV legislation which eliminated the immediate refunding of terminated employees’ contributions and reduced death benefits, could not be applied to Tier IV members who held membership in the Tier III plan before September 1,1983. Subsequent Court decisions indicate that Tier IV members who were former Tier III'members have rights in certain cases to elect to receive benefits (which they may deem more favorable) originally provided under Tier III. In 1986, State legislation was enacted which further enhanced benefits to Tier IV plan participants. Specifically, ordinary death benefits were amended to become nearly identical to those received by Tier II members. It should be noted that this legislation is a reversal of reductions in these death benefits that were intended to partially offset the employer cost of the removal of the Social Security offset.

State legislation enacted in 1985 enables teachers hired since July, 1976 to retire with no reduction in benefits at age 55 provided they have 30 years of service. Similarly, in 1988, State legislation was enacted which entitles uniformed sanitation workers hired since July, 1976 to retire with no reduction in benefits at age 55 provided they have 30 years of seryice. An improved retirement plan for correction officers and sanitation workers was approved in 1990 and 1991, respectively. This plan allows correction officers and sanitation workers to retire with 20 years of service at half pay, with the provision that the members pay for the enhanced benefit through increased payroll deductions!. Other improvements include State legislation enacted in 1989 and effective July 1,1990, which allows non-vested Tier IV members who leave City service to withdraw their contributions upon termination of f employment. And, in 1990, the State passed into law the ability for Tier III and Tier IV members to take loans on their pension contributions. In 1993, the State enacted legislation which extended the 1990 correction officers i improved retirement plan, discussed above, to correction captains. Similar to the previous plan, the correction captains are now eligible to retire with 20 years of service at half pay with the provision that members pay for the enhanced benefit through increased payroll deductions.

Pursuant to an agreement between the City and the Municipal Labor Coalition, Chapter 96 of the Laws of 1995 was enacted to allow Tier II, in and IV civilian employees to purchase improved pension and health insurance ' benefits through increased payroll deductions. Participants must contribute an additional 4.35 percent of salary for all service rendered through the beginning of January 1998, and as a result of Chapter 422 of the laws of 1997, 2.85 percent thereafter. Chapter 96 granted existing pension members the option of joining an improved plan to receive pension payability upon attaining age 55 and 25 years of service. New employees are mandated into a separate plan that provides pension payability at age 57. In addition, eligible participants in physically taxing titles can retire at age 50 with 25 years of service for an additional 6.33 percent of salary as provided under Chapter 96, and 4.83 percent of salary as provided under Chapter 422. !

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