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 provide verification of service and salary. Acceptable forms of verification include 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. [top]

How do I buy military service credit?

If you are a BERS member with 5 years of membership service and were honorably discharged after active service in a theatre of operation between WWII and 8/2/90, then you may be eligible to purchase up to 3 years of service. [top]

How do I pay for prior service credit, and what is the cost?

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, plus 5% interest. Military service will cost 3% of your salary from the last 12 months before you applied. You may pay for prior service credit in either a lump sum payment, post-tax payroll deductions, or with TDA funds (if applicable).[top]

As a part-time worker, how do I accumulate years of credited service?

Those in a non-teaching job whose duties are regularly scheduled to be performed only during the school year (e.g. school aide, lunchroom worker), receive one year of credited service for 1,470 hours of work. Administrative hourly employees must work 1,827 hours for one year of credited service. Substitute teachers must work 180 days for the same credit. [top]

How do I receive post-retirement medical coverage?

BERS members hired prior to 2002 will need 5 years of credited service to be eligible for post retirement health benefits. BERS members hired after January 1, 2002 will be eligible for this benefit upon completion of 10 years of credited service. [top]

Typically, your payroll stub displays a pension number. Pension numbers beginning with either 5 or 6 generally belong to BERS. BERS pension deductions are usually coded as BOE414(h) on your payroll stub. [top]

No. If a member of BERS accepts a position where they are eligible for membership in another city or state system they must request that their BERS service and contributions be transferred to the new retirement system. In order to request a transfer of your membership to another system, you must first enroll in the system, and then submit a completed transfer application to BERS. You must indicate your new membership number with the other system on the transfer application. [top]

You may change your beneficiaries at any time. In order to change your beneficiary, you must complete a change of beneficiary form and submit it to BERS. Members should be aware that they must complete a separate change of beneficiary form for the pension plan and the TDA. [top]

If I don’t designate a beneficiary will 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. [top]

The maximum repayment period for a pension loan is 48 months. [top]

If you have an outstanding loan balance at the time of your death, and it is not in default, your loan may be insured. If insured, your loan will be liquidated (paid off). Loan insurance for a Tier 1 or Tier 2 loan becomes fully effective 90 days after the issuance of the loan. Loan insurance for a Tier 3 or Tier 4 loan becomes fully effective 30 days after the issuance of the loan. Loan insurance for a 55/25 or 57/5 loan becomes fully effective 30 days after the issuance of the loan. [top]

Do I have to repay my loan before retiring?

Any outstanding loan balance 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 reduced. The reduction to your pension is a permanent reduction and continues for as long as you receive pension payments. Any beneficiary you may have designated to receive a pension upon your death will also receive a reduced benefit. [top]

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 5 years of membership service to retire at age 57 and receive an unreduced retirement allowance. [top]

I’m in tier 4 and 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. A member in active service can retire with a reduced pension between the ages of 55 and 62. [top]

I’m in Tier 4; does the City contribute to my pension?

The City of New York does not contribute to the individual account of a Tier 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 4 members. [top]

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 one 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 a retirement date with maximum benefit. [top]

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 before retirement. Once the retirement date has arrived, the member is retired and may not rescind their application.

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