If any of the information included in this summary is in conflict with any law, rule, or regulation, it is the law, rule, or regulation that will govern.

The Age 57 Retirement Program, which was established by Chapter 96 of the Laws of 1995, permits eligible Tier 4 members who participate in the Program to retire with 5 or more years of credited service and receive payability of a full Tier 4 retirement allowance at age 57, rather than the normal retirement age of 62. Eligible participants who have 25 or more years of credited service in a physically taxing position may retire at age 50. Participants in the Program are required to make additional member contributions over and above their regular Tier 4 member contributions.

Only Tier 4 members who were not employed in an eligible position on June 28, 1995 qualify to participate when they become employed as members in active service in an eligible position. An eligible position is any position held by a member of BERS with the N.Y.C. Board of Education or the N.Y.C. School Construction Authority ("education service"), except for any position as a substitute teacher or any other position represented by the recognized teacher organization for collective bargaining purposes.

Those who were employed in an eligible position or who were discontinued members with deferred vested retirement rights on June 28, 1995, may only opt for "The 25 Year Early Retirement Program". For purposes of that program, members are deemed to be employed and eligible to participate if, on June 28, 1995, they were (1) in active service in an eligible position or (2) on approved leave of absence without pay from an eligible position and return to active service in an eligible position within five years after beginning such leave of absence or (3) on suspension without pay from an eligible position and are thereafter reinstated in active service in an eligible position.

Tier 4 members who qualify for the "Age 57 Retirement Program" fall into two categories:

(1) those for whom it is optional and (2) those for whom it is mandatory.

1. Persons who were not in an eligible position on June 28, 1995, who had established membership in any public employment retirement system in New York State (on that date or earlier) may elect to participate in this program upon being employed in active service in an eligible position. Such persons must apply to participate within 90 days of becoming eligible. The decision to participate is irrevocable. Failure to apply results in a waiver of the right to participate.

2. Persons who were not in an eligible position on June 28, 1995 and who establish membership after that date, must participate. Their participation is automatic and begins on their membership date.

After becoming a participant, if a member ceases to hold an eligible position or terminates service, they will cease to be a participant, but shall again become a participant upon return to an eligible position in active service.

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

All Tier 4 members automatically vest in a retirement benefit payable at age 62 upon completion of 5 years of credited service. In addition, Age 57 Program participants automatically vest at 5 years of credited service with the right to receive a retirement benefit at age 57. A participant who discontinues service with 5 or more years of credited service, and has paid all required additional contributions, has a vested retirement benefit payable on the earliest date they could have retired had they not discontinued service.

In addition to the regular member contributions of 3% of annual wages (ceasing after you have either 10 years of membership or 10 years of credited service), all participants in the Age 57 Retirement Program are required to make additional member contributions to BERS until they attain 30 years of credited service. The rate is 1.85% of annual wages. Participants in a physically taxing position are required to contribute an additional 1.98% of compensation.

For all participants, this contribution rate will be applied to compensation earned from all credited service rendered during or before participation and for any intervening periods on non-participation. Payments of additional contributions for salary earned after becoming a participant are pre-tax and will be made via payroll deduction. They will begin with the first full payroll period after becoming a participant, or as soon thereafter as practicable.

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

Only that portion credited as employee contributions (plus interest thereon) may be borrowed, refunded, or withdrawn. Refunds or withdrawals are permitted in the event of death, disability retirement, retirement at age 62 (with active service in at least 6 months in each of the previous two 12 months periods), or transfer (with less than 5 years of credited service) to an ineligible position in another public retirement system.

A participant in a physically taxing position who retires and is at least 57 but not yet 62, who was in active service for at least 6 months in each of the two 12 month periods immediately preceding retirement, is entitled to a refund of only that part of the employee portion of the additional contribution attributable to the 1.98% part of their additional contribution.

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

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