After consultation, the New York State Teachers' Retirement System (NYSTRS) has determined that employees retiring from districts that choose to participate in Part B of Chapter 105 of the laws of 2010 (the governor’s 55/25 early retirement incentive) will be allowed to combine the state incentive with a local incentive.
This determination does not apply to Part A of Chapter 105 (one month of credit per year of service, up to 36 months service credit for targeted employees), unless the employer chooses to grant an exemption.
For more information
Higher Ed: Benefit provided to members of the Optional Retirement Program (ORP) under Part A of Chapter 105
Eligible employees who participate in an optional retirement program (ORP) would receive a retirement incentive of one-twelfth for each year of service multiplied by 15 percent multiplied by the employee's annual salary, up to a maximum benefit equal to 45 percent of salary. The total calculation could not exceed 45% of salary. Colleges would deposit the payment into a 403B up to its maximum allowable and any extra money could be made in 3 equal installments over 24 months.
For more information contact:
SUNY Employee Benefits - (518) 320-1430
CUNY Central Human Resources - (212) 794-5336
Governor signs incentive bill into law
As expected, Gov. Paterson today signed into law the early retirement incentive for most public employees, also known as Chapter 105 of the laws of 2010.
The legislation contains two options - Part A and Part B:
Part A: Employers have the option of offering eligible targeted employees one month of additional service credit for every year of service, up to 36 months.
Part B: Employers would be allowed to establish a three-month window waiving the early retirement penalties for employees at least 55 years old.
Employers would be able to opt in to either or both parts of the plan. The two state options may not be combined with the NYSUT early-retirement option or any local incentives.
An employee's eligibility depends on whether the employer opts into one or both of the incentives. The employer decides who is eligible.
Under Part A: Only targeted employees who are at least 50 years of age with at least 10 years of service are eligible. Penalties for retiring before reaching 30 years of service still apply under part A.
Under Part B: Eligible employees must be at least 55 years of age and have at least 25 years of service.
Neither option can be combined with a local incentive or Chapter 45.
Enrollment windows and deadlines may be set by the employer and also vary depending which option the employer chooses to offer.
Senate passes retirement incentive for public employees
The state Senate - by a 55-1 vote - today passed an "early retirement incentive" for most public employees. The measure, already passed by the Assembly, is expected to be signed by the governor.
Assembly passes public employee retirement incentive
By a vote of 132-3, lawmakers in the Assembly passed an early retirement incentive for most public employees. The Senate is still considering the bill.
This week, Gov. Paterson's early retirement incentive (ERI) proposal was introduced in the Assembly and Senate; A.11144 (Abbate) / S.7909 (Savino) .
The new incentive, which will require employer opt in, is similar to the 2002 ERI. Part A will allow employers to offer an additional one month of service credit for every year of credited service up to 36 months to targeted employees. Part B of the bill is a local option 55/25 retirement incentive.
Under the governor's proposal, employees would not be able to combine the Part A, Part B, the NYSUT only 55/25 (Chapter 45 of the laws of 2010) or any local incentive.
Also, the normal early retirement penalties would still be in place for any member taking the Part A incentive who retires prior to age 62 with less than 30 years of service.