Whether you are just joining or have been a member of the State and Local Employees' Retirement System for a number of years, you need to understand the importance of being vested.

As a vested member, even if you leave public employment you can apply for and receive a guaranteed retirement benefit when you reach age 55. Your benefit will be based on your service and the salary earned when you were an active member.

If you are a Tier 1 or Tier 2 member, you are eligible for a benefit on the first day of the month following your 55th birthday. Members of Tiers 3 and 4 are eligible for a benefit on their 55th birthday.

Tier 3 and 4 vested members with at least five but less than 10 years of service credit also have the option of voluntarily withdrawing their membership and receiving a refund, or rolling their contributions over to an Individual Retirement Account or another qualified retirement plan.

If you have at least five years of service, you might consider keeping your contributions intact and file for a pension when you are eligible.

Q: How is a vested benefit calculated?

A: Generally, the retirement plan you were covered by in your last public employment determines how your benefit is calculated. For more information, check your plan booklet at www.osc.state.ny.us/retire/publications/index.htm#ersmembers.

Q: If I am vested, off payroll and no longer working for a public employer, will the system automatically start paying me a pension as soon as I meet eligibility requirements?

A: It is up to you to file a retirement application when you become eligible and wish to receive your benefit. To receive your vested pension at the earliest possible date, file a retirement application no earlier than 90 days before the date you become eligible.

Q: With a vested retirement, will my pension be reduced if I retire at an early age?

A: If you are a Tier 2, 3 or 4 member and work until you are 62, or are 55 or older and have 30 or more years of service credit, you can retire with a full pension.

However, if you retire before meeting these requirements, your pension is permanently reduced.

The closer your retirement date is to the day you turn 62, the less of a reduction there will be in your pension.

If you are a vested member and no longer work for a public employer, it may be to your advantage to file your retirement application when you are 55, even if you will receive a reduced benefit.

While there may be a reduction in your pension, it would take more than 19 years after age 62 to recover the benefits you receive between the ages of 55 and 62. (Reductions do not apply to Tier 1 members.)

Q: How can I get more information?

A: Learn more about vesting at www.osc.state.ny.us/retire/members/vesting.htm. You can also contact our Call Center toll-free at 866-805-0990, or 518-474-7736 in the Albany area.