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| Qualified Pension Plan (QPP) FAQs - See immediately below Tax Deferred Annuity (TDA) FAQs Qualified Pension Plan FAQs How do I buy back prior service? In order to purchase previous service ("buyback") a member must complete an application to have the service reviewed for credit. On the application, the member must indicate what years of service they wish to buy and the member must provide verification of his/her service and salary. Acceptable forms of verification are W2’s, Social Security printouts detailing the name of the employer, or end of the year payroll stubs that indicate earnings to date. Once this information is received by BERS, your service will be reviewed to determine if it is pensionable service, and if so, the cost to buy-back that service. The cost to buy-back service in Tiers 1 and 2 is based on your present earnings. The cost to buy-back service in Tiers 3 and 4 is based on the salary you were earning at the time the service was rendered.
How can I determine if I’m a member of BERS? Generally, your payroll stub displays a pension number. Pension numbers beginning with 5 are members of BERS. BERS pension deductions are usually coded as BOE414(h) on your payroll stub.
Is the transfer of one’s membership automatic? No. If a member of BERS accepts a position wherein they are eligible for membership in another city or state system, they must request that their BERS service, contributions, and pension reserves be transferred to the new system. In order to request a transfer of your membership to another system, you must first enroll in the other system then submit a completed transfer application to BERS. You must indicate your new membership number with the other system on the transfer application.
What if I get divorced, remarry, or otherwise change my marital status. Can I change my beneficiary(ies)? How? You may change your beneficiaries at any time. In order to change your beneficiary, a member must complete a change of beneficiary form and submit the form to BERS. Members should be aware that they must complete a separate change of beneficiary form for the pension plan and the TDA.
If I don’t designate a beneficiary won’t the money automatically go to my husband and children? No. If a member dies and has not designated a beneficiary, the benefits will be paid to the member's estate, except the in case of accidental death in which case the law stipulates how the benefit should be paid.
If I take a pension loan how long do I have to repay it? The maximum repayment period for a pension loan is 48 months.
If I have a loan and I die, what happens? Loan insurance for a Tier 1 or Tier 2 becomes fully effective 90 days after the issuance of a loan. Loan insurance for a Tier 3 or Tier 4 becomes fully effective 30 days after the issuance of a loan.
Do I have to repay my loan before retiring? Any outstanding loan balances must be satisfied prior to retiring. You have two options on repaying an outstanding loan at retirement: You may make a lump sum payment in the full amount of the outstanding loan. You may elect to have the outstanding loan balance removed from your ASF or MCAF account (you would have no out-of-pocket expense), however, your pension will be actuarially reduced. The reduction to your pension is a permanent reduction and continues for the life of your pension and that of any beneficiary you have designated to receive a pension upon your death.
I just started with the Board of Education and enrolled in the pension plan. I was told I had to join the 57/5 program. What is the 57/5 Program? The 57/5 program is a retirement program within Tier 4. Members who joined the BOE on or after June 28, 1995 and who are in eligible positions are mandated to participate in the 57/5 program. This program allows a member with 10 years of membership service to retire at age 57 and receive an unreduced retirement allowance.
I’m in tier 4 and I have to work until I’m age 62 in order to get my pension, can I switch over to the 57/5 program? No. A member of Tier 4 who was in an eligible position for the 25 Year Early Retirement Program on June 28, 1995 does not have the option of participating in the 57/5 program.
I’m in Tier 3/4, does the City contribute to my pension? The City of New York does not contribute to the individual account of a Tier 3/4 member. The City of New York does make employer contributions on an annual basis to the Board of Education Retirement System in amounts certified to cover the cost of benefits for Tier 3/4 members.
How much notice must I give the retirement system before I retire? A Tier 1 or Tier 2 member must file a retirement application with BERS at least 30 days prior to the date of their retirement. A Tier 3/4 member is required to give only 1 day’s notice. It is in the best interest of all members to prepare for their retirement at least 90 days prior to the date they want to be retired. This period of time will allow the retirement system to have an approximation of benefits prepared and leave ample time for the member to make the wisest decision as to what retirement option they wish to take. Also, if a member has terminal leave, annual leave, or sick leave accruals, they should meet with their timekeeper to determine when they will no longer be on payroll. The retirement system requires this information in order to determine the correct retirement date.
I thought I wanted to retire, but I’ve changed my mind. What can I do? A member may rescind their retirement application up to the day of retirement. Once the retirement date has arrived, the member is retired and may not rescind their application. [top] [return to home]
Can
I take a TDA loan? No. A BERS member who transfers their membership to NYCERS may not continue to contribute to the BERS TDA Program. You may be able to withdraw your TDA investment or roll it over into another investment vehicle such as another TDA, a 401(k) plan, 457 plan, or IRA. If you elect to withdraw your TDA contributions prior to age 59 ½, you may be taxed and penalized for the premature withdrawal. Click here for more information about TDA Transfers, Rollovers, Distributions and Withdrawals. Any active member of BERS on payroll may join the TDA Program. How
do I join the TDA Program? Can
I change my TDA contribution rate? Can
I select the investment option(s) for my TDA contributions? When you retire, resign, or otherwise end your employment with the City of New York, you have several options available to you. If You Are Retired At retirement, you may arrange to receive regular payments through the purchase of an annuity, make a direct withdrawal, rollover, or transfer of your account. You can also elect TDA Deferral status at retirement, which allows you to leave your contributions and investment results in the TDA Program until Required Minimum Distributions begin at the age of 70½ . If you leave employment after attaining vested rights in the pension system, you may withdraw the balance of your TDA account or you may elect to have a TDA Deferral status. Electing TDA Deferral status allows you to continue your participation in the Fixed and Variable Programs on a tax-deferred basis. Should you leave employment for any reason before vesting in the pension system, you may withdraw the balance of your TDA account at any time. If you do not withdraw your QPP account balance, your TDA account will continue to accrue investment returns for up to five years from the date of your resignation. A withdrawal of your QPP account balance will automatically terminate your participation in the TDA Program.
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