Tier VI Retirement Information
All of the information below comes from a Tier 6 Retirement Workshop that took place on 11/21/23. Some information has been updated as of 4/30/25.
Information on TRS website: https://www.trsnyc.org/memberportal/WebContent/publications/brochures/Brochure79
QPP (Pension)
1. Anyone hired after April 1, 2012 is in Tier 6.
2. QPP is a defined benefit plan (a plan defined in writing with a specific formula).
3. QPP contribution rates for Tier 6:
$0-$45K = 3%
$45K-$55K = 3.5%
$55K-$75K = 4.5%
$75K-$100K = 5.75%
Greater than $100K = 6%
**This is the percentage that comes out of every check until we retire/leave service. The amount that comes out of your check is on the bottom left of your pay stub. It is labeled TRS 414H STD**
4. All Tier 6 members are in the age 63 program. If you retire before 63, your pension will be reduced (more info below).
5. Must work for DOE for 5 years in order to be vested (vested means you have received enough credited service to receive service retirement benefits).
6. If you get another job working for NYC or NYS, you can buy your DOE time back. If you were previously a City or State employee, previously worked as a substitute teacher for an extended period of time, or served in the military, you can buy that time back, as well. You can check if you’re eligible to buy back time on the TRS website by requesting a Cost Letter.
7. In order to buy back time, you need to pay 6% of whatever your salary was at the time of employment PLUS 5% interest for each year since your employment. The sooner you purchase your previous service, the cheaper it will be.
8. Buy back options: lump sum payment; payment plan of payroll deductions over a 1-year to 10-year period (TRS will lay out a payment plan explaining how much will come out per check based on how many years you select); transfer of TDA funds; combination of transfer of TDA funds and lump sum payment.
9. Member Contributions Accumulation Fund (MCAF) is the same thing as your QPP. If you ever see MCAF referenced anywhere, it’s just another way of saying QPP.
10. Annuity Savings Accumulation Fund (ASAF) includes any supplemental contributions, which the DOE makes for certain Tier 6 members who have reached maximum salary. Eligible teachers receive $400/year. Paras, unfortunately, are not eligible for ASAF.
Pension Calculations
1. Less than 20 years of service: Multiply the amount of years you have worked by 1.67. That is the percentage of your Final Average Salary that you will receive. (ex: You worked 18 years. 18 x 1.67 = 30%).. You will receive 30% of your FAS.
2. 20 years of service: 35% of your FAS.
3. Additional years beyond 20: 35% for 20 years + 2% for each additional year (ex: 30 yrs = 55% of your FAS).
4. Check TRS to see how much service time you have. TRS and DOE can have different information. You can find your service time by going to TRSNYC - Documents - Annual Benefits Statement (ABS).
Final Average Salary (FAS)
1. Your FAS will generally be the average of your highest three consecutive annual salaries during your periods of credited service. However, if the salary earned during any year included in the three-year period exceeds the average of the previous two years by more than 10%, the amount in excess of 10% will be excluded from the calculation. **Keep an eye on this since we get raises, if you are doing a sixth in lieu, per session, summer school, coverages, or anything else that enables you to make extra money.**
Retirement
1. Retirement allowance is determined by total service credit, final average salary (FAS), and retirement age.
2. Tier 6 Service Retirement: Earliest age to apply for Tier 6 Service Retirement is 55 (with reduction). Full retirement benefits begin at 63.
3. If you resign or are terminated, you cannot officially file for retirement until 63.
Early Retirement
1. If you retire before 63, your QPP will be reduced. Only members who are retiring directly from active service or a leave of absence are eligible to retire before age 63 with reduced benefits.
2. Reductions for early retirement:
Age 62 - You receive 93.3% of benefit paid retirement after deduction
Age 61 - 87%
Age 60 - 80.5%
Age 59 - 74%
Age 58 - 67.5%
Age 57 - 61%;
Age 56 - 54.5%
Age 55 - 48%
Termination Pay
1. When you retire, you get paid for any CAR days you have accrued up to 200 CAR days. That’s the maximum.
2. CAR days are paid out at a rate of 2:1 (e.g. You retire with 100 CAR days. You get paid for the equivalent of 50).
3. 2020 Vacation Days are paid out at a rate of 1:1.
Terminal Leave
1. You can use your CAR days to leave your position before your retirement date at a rate of 2:1 (e.g. You have 100 CAR days. You can retire 50 days early).
2. Your leave has to begin and end within one semester.
3. Must give DOE at least 30 days notice. You can change your mind but you must give 30 days notice. You can return to DOE but your principal has the right to deny you your position.
Contact
1. Phone: 888.8.NYC.TRS
2. Video Conference: Schedule one-on-one meeting with a Member Services rep.
3. Email: AskTRSNYC@trs.nyc.ny.us
4. Fax: 212.918.9253
5. Mail: Send correspondence to TRS at 55 Water St., New York, NY 10041
6. UFT Call Center: (212) 331-6311
7. Everyone is entitled to one preliminary consultation each school year.
8. Everyone is entitled to a final consultation (only do this when you are positive you are retiring).
9. UFT Pension Website: uft.org/your-benefits/pension