What Does the NYCERS Tier 4 Plan Include?

The NYCERS Tier 4 plan includes provisions relating to retirement plans, programs, and other benefits offered to New York City employees who become members of the system on and after July 27, 1976. Some of the benefits that members enjoy are access to loans and insurance services. A person’s Tier is generally determined by the date of joining NYCERS, notes NYCERS.org.

All Tier 4 members are required to make basic contributions of three percent of their wages, including overtime, which is paid by a participating employer. These contributions cease on the earliest of the member’s 10th anniversary of membership in NYCERS or the date the member accumulates 10 years of purchased or transferred credit service. The 10 years are counted from January 1, 2000, according to NYCERS.org.

To qualify to take out a loan from NYCERS Tier 4 as of 2015, one must:

  • Complete at least one year of NYCERS membership
  • Be in active payroll status
  • Have a minimum of $1,334 in the NYCERS retirement account
  • Not be in default on a previous loan from NYCERS
  • Not be in deficit on monthly payments
  • Not be retired

Pension payments received from NYCERS are subject to federal income taxes, but part of the amounts may be excluded. Retirement allowances payable on Tier 4 are based on member’s year of service, compensation base and age.