You should also break down for people who work less time example 5-10 years... this would apply to people who come into mta later in life who will never see 25-30 years of service...
Thanks for this info the breakdown was very informative… I’m Tier 4 started in 2007… TA. I’ve friends in MTA bus I’ll definitely share this with them… you’ve a new subscriber.
Could you please explain the 63/10 (now 63/5) equity Tier 6 pension plan. It states on NYCER a member would leave with an unreduce pension, having 10 years of credited svc and 63 years of age.
If you work for Transit and don’t complete at least 25 years of service and are at least 55 years old, you will retire under the provisions of the 63/5 plan. Under the 63/5 plan, if you leave with less than 20 years of service, the formula used to calculate your pension is slightly different: 1.67% times Final Average Salary times Years of Service If you have more than 20 years of service but not at least 25: 35% times FAS for the first 20 years Plus; 2% times FAS times the number of years of services in excess of 20.
What happens to Extra contributions paid on Non-Pensionable wages? In your example of 2022 Earnings, Of 100,000 on only 79,500 is Pensionable. What happens to increased(%) & excess($) contributions paid on the 20,500??? Do we get that back as a lump sum?
During 2022-2024, Tier 6 members will only contribute on their base wages, no contributions should be deducted for any overtime earned. However, after 2024, unless legislative changes are made, it will revert back to how it was before where although only earnings up to the cap are pensionable, contributions are paid on all earnings whether pensionable or not, which is extremely unfair in my opinion. This is why in my opinion it’s extremely important to only endorse politicians who will make tangible changes to the issues that affect us as transit workers’ as they are the ones that can draft legislation to amend Tier 6, just like how Tier 4 was ultimately amended.
I'm tier 6 I started working for Mta at 53 years of age I want to retire at around 73 years of age which is 20 years vested How would that be calculated? And will I earn an ok pension by atleat $3000 a month. If I'm making $100 k a year?
Hi, Under Tier 6, it would depend based on your base salary because the full $100,000 may not be pensionable. But, we can use an example, let’s say all wages were pensionable and your final average salary came out to $100,000, being that you wouldn’t have 25 years of service, the 63/5 rules apply so the formula would be: 35% times $100,000 =$2,916.67 per month If you did less than 20, the formula changes, let’s say you did 19 years, it would come out to: 1.67% times 100,000 times 19 =$2,644.17 per month
They need to replace tier 5-6 back to Tier 4 asap. The state and local governments have 16k vacancies as we speak. Nobody wants to work a public service job with a terrible pension.
