NYSLRS Tier 4 Retirement: Final Average Salary, Eligibility, and Early Retirement
Who Is Tier 4
Every ERS member who joined NYSLRS between September 1, 1983, and December 31, 2009, falls under Tier 4 (Article 15). This is the largest tier among current retirees and near-retirees, covering state workers, county and city employees, school district non-teaching staff, and public authority personnel who started in that 26-year window.
Unreduced Retirement: Age 62 or the 30-Year Rule
Tier 4 gives you two paths to a full, unreduced pension:
- Age 62 with at least five years of credited service
- Age 55 with 30 or more years of credited service
The 30-year rule is the one most Tier 4 members build toward. If you hit 30 years of service at age 55, 56, or any point before 62, you can walk away with your full benefit — no early retirement penalty.
Early Retirement Between 55 and 62
Tier 4 members with at least five years of credited service can retire as early as age 55 even without 30 years. But retiring before 62 without the 30-year cushion means a permanent reduction. The amount depends on your age and credited service; use the NYSLRS estimate or early-retirement reduction table for your plan.
These reductions are permanent — they don't lift when you eventually reach 62.
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How Final Average Salary Works for Tier 4
Your Tier 4 FAS is the average of your highest three consecutive years of pensionable earnings. The key rules:
What doesn't count: termination pay, lump-sum vacation payouts that exceed statutory limits, excessive overtime, and earnings that exceed the 10% year-over-year cap.
The 10% cap: if your earnings in any of the three FAS years exceed the average of the prior two years by more than 10%, the excess gets excluded. This prevents a single high-overtime year from inflating your pension.
Use your NYSLRS estimate to see the benefit calculated for your FAS and credited service before taxes and any option reductions.
Tier 4 vs Tier 6: Key Differences
| Feature | Tier 4 | Tier 6 |
|---|---|---|
| Full retirement age | 62 (or 55 with 30 years) | 63 |
| FAS period | Highest 3 years | Highest 3 years (changed from 5 in April 2024) |
| Vesting | 5 years | 5 years (changed from 10) |
| Early retirement | Age 55 minimum | Age 55 minimum |
| Sick leave cap (Sec. 41j) | Up to 165 days | Up to 100 days |
| Employee contributions | Check your NYSLRS plan statement | 3%–6% based on wage bracket |
One important eligibility difference for near-retirees is that Tier 4 members can retire unreduced at age 55 with 30 years of service, while Tier 6 members have an unreduced retirement age of 63.
Planning Your Tier 4 Retirement
Pull your Retirement Online estimate at least 12 months out. Verify your FAS years match your pay stubs. If you're close to the 30-year mark, check whether purchasing military or prior public service credit pushes you over — that's the difference between a full benefit at 55 and a permanently reduced one.
The NYSLRS Retirement Guide covers the Tier 4 benefit formula, early retirement reduction tables, and the FAS calculation in detail, with worksheets for running the numbers yourself.
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