Early Retirement Incentive

Overview

2021 Early Retirement Incentive (ERI)

This page will be updated as new information becomes available. Please check back often. Last updated 4/21/2021.

About the ERI

On April 19, 2021 Governor Cuomo signed into law Chapter 59 of the Laws of 2021, which provides the City of New York and the NY Board of Education, also known as the NYC Department of Education (DOE), the option to elect an Early Retirement Incentive (ERI).

Eligible members may not file for the ERI until the City of New York and/or the NYC Department of Education have elected to participate and established an Open Enrollment Period, and the Open Enrollment Period starts.

Chapter 59 of the Laws of 2021 contains two separate and distinct retirement options, Part A and Part B.  If the City of New York and/or NYC Department of Education elects to participate in the ERI, they may elect to participate in Part A, Part B, or both. If Part A is elected, the Mayor and/or Chancellor will then define what titles are eligible to apply for the ERI.

Please note that an eligible member can only file for Part A OR Part B. You cannot file for both.

  • Part A: Eligible members are given additional qualifying service credit for up to three years.
  • Part B: Eligible members may retire without early retirement reduction factors and are not given additional service credit.

Members must be in continuous active service (being paid on the payroll, on leave with pay, or a leave without pay for less than 12 weeks) preceding the Open Enrollment Period AND:

Part A:

Eligible members must either be:

  • Eligible for service retirement
  • 50+ years old with 10+ years of service if not otherwise eligible to retire, OR
  • In a plan that allows for retirement at 25 years of service, regardless of age. In this case, the additional service credit provided by Part A of the ERI may be used to reach the required 25 years.
Part B:

Eligible members must be:

  • 55+ years old and have 25+ years of creditable service.

What is the Benefit?

Part A
  • 1/12 year additional service credit per year of pension service
  • Maximum additional service credit is three years
  • Early retirement age reduction factors will apply under the following conditions:
    • Tier 1
      • 5% per year prior to age 55
    • Tier 2
      • Members who are age 55 or older with 30 or more years of service have no reduction
      • 55/25: 5% per year prior to age 55. For members with more than 25 years of service in a physically taxing title, there is no reduction
      • Basic Tier 2 62/5, 6% reduction for each year of the two years prior to age 62; additional 3% each year prior to age 60. For members with 30 or more years of service, there is a 5% reduction for each year prior to age 55
    • Tier 4
      • 62/5: 6% reduction for each year of the two years prior to age 62; additional 3% each year prior to age 60. For members with 30 or more years of service, there is a 5% reduction for each year prior to age 55
      • 57/5: 1/30 for first two years prior to age 57; additional 1/20 per year prior to age 55. For members with more than 25 years of service in a physically taxing title, there is no reduction
      • 55/25: 5% per year prior to age 55. For members with more than 25 years of service in a physically taxing title, there is no reduction

Age reductions are prorated for partial years.

Part B
  • Eligible members can retire with an unreduced benefit
  • Part B does not provide additional service credit

Next Steps

  • For City of New York employees, a Local Law must be passed by City Council and signed by the Mayor stating that the city is electing to participate in the ERI by June 30, 2021.
  • For NYC Department of Education (DOE) employees, a resolution must be passed by the Board of Education and signed by the Chancellor electing to participate in the ERI by May 31, 2021.
  • If the City of New York and/or the NYC Department of Education elect to participate in the ERI, they must establish an Open Enrollment Period.
  • If the City of New York and/or the NYC Department of Education elect to participate in Part A of the ERI, they must identify which titles are eligible to participate.