The 25 Year Early Retirement Program (55/25 Program), which was established by Chapter 96 of the Laws of 1995, permits eligible Tier 3/4 members who have elected the Program to retire and receive payability of a retirement allowance prior to the normal retirement age of 62. Eligible participants in the Program may retire from service with payability of a full service retirement allowance at age 55 with 25 or more years of credited service (or at age 50 with 25 or more years of credited service in a physically taxing position). Participants in the Program are required to make additional member contributions over and above their regular member contributions.

WHO QUALIFIES FOR THIS PROGRAM

Those who were employed in an "eligible position" on June 28, 1995, with the NYC Board of Education or the NYC School Construction Authority (or in a city service position entitling them to membership in the New York City Employees Retirement System [NYCERS] and participation in the program), may be eligible to elect to participate in the 25 Year Early Retirement Program. You will meet that threshold eligibility requirement if, on June 28, 1995, you were:

1. in active service in an "eligible position"; or

2. on an approved leave of absence without pay from on "eligible position" and you return to active service in an "eligible position" within five years after beginning such a leave of absence; or

3. on suspension without pay from an "eligible position" and, thereafter, you are reinstated from that suspension to active service in that "eligible position"; or

4. a discontinued member not in active service who was entitled to a deferred vested benefit and later becomes a member in active service in an "eligible position".

An eligible position is any position in education service, except any position as a substitute teacher, or any other position represented by the recognized teacher organization for collective bargaining purposes, or an "eligible position" in city service as defined for members of NYCERS.

WHO DOES NOT QUALIFY FOR THIS PROGRAM

Those who were not employed in an eligible position on June 28, 1995, and who were not members of any public employment retirement system in New York State may only opt for the "Age 57 Early Retirement Program (57/5)". Those who establish membership after June 28, 1995 must participate in the 57/5 Program.

PARTICIPATION CRITERIA

To elect to participate in the "25 Year Early Retirement Program", members must submit an application to the retirement system:

• members who were in active service in an eligible position on June 28, 1995 and who wanted to participate had to submit an application no later than 5:00 p.m. on September 26, 1995.

• discontinued members with vested rights, eligible members on leave of absence without pay or on suspension or persons, otherwise eligible, who establish membership after June 28, 1995, must apply within 90 days of becoming eligible members in active service.

Once you elect to participate in the program, that election is IRREVOCABLE, except in the limited circumstances where a participant, at the time of electing the program, could not possibly accumulate at least 25 years of credited service by age 62, even if he or she were to work full time each year until age 62. Such members may withdraw within 1 year of their application date.

BENEFIT CALCULATION

An immediately payable retirement benefit is calculated in the same manner as your normal Tier 4 retirement. The benefit is reduced by a life annuity actuarially equivalent to any unpaid contribution deficiency and/or unpaid loan.

VESTING

All Tier 4 members vest at 5 years with the right to receive a pension at age 62. The 25 Year Early Retirement program does not provide for vesting or deferred payability of the program’s benefits. In order to receive a benefit under the Program, you must have 25 or more years of credited service and you are at least 55 years of age. If you terminate employment before either or both of those requirements are met, you will be covered by the regular tier vesting requirements.

REQUIRED CONTRIBUTIONS

In addition to the regular member contributions of 3% of annual wages, all participants in the 25 Year Early Retirement Program are required to make additional member contributions to BERS. For service prior to January 1, 1998, this additional contribution is at the rate of 4.35%. Thereafter, the rate is 2.85% of compensation. Participants in a physically taxing position are required to contribute another 1.98% of compensation over and above that 4.35% or 2.85% of compensation.

For all participants, the additional contribution rate will be applied to compensation earned from January 8, 1995 forward. This is the program "starting date" specified in the statute. Payments of additional contributions are tax deferred and will be made via payroll deductions, beginning with the first full payroll period after electing to participate. Additional member contributions will continue until a participant has completed 30 years of credited service.

Participants who were not members of either BERS or NYCERS on July 1, 1993 will also owe retroactive additional member contributions, with interest, for all credited service rendered prior to January 8, 1995.

Participants fully underwrite the expense of this program with additional contributions. Upon payment into the system, 50% of additional contributions are deemed to be employer contributions and 50% are deemed to be employee contributions.

Only that portion credited as employee contributions may be borrowed, refunded or withdrawn. Refunds or withdrawals are permitted only in the event of death, disability retirement, discontinuance of participation in the first year, retirement at age 62 (with active service in at least 6 months in each of the previous two 12 month periods), transfer to an ineligible position in another public employment retirement system, or termination for economic reasons. In addition, employees in physically taxing positions who retire and are at least age 55 but not yet age 62 are entitled to a refund of the employee portion of the further additional contribution of 1.98% of salary.

When a participant terminates service in an eligible position and later returns in an eligible position, they shall again become a participant. If they received a refund of the employee portion of their contributions, those contributions will be paid back with interest.

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