NYSTRS Pension Factor Table and Age Reduction Rules by Tier

How the Pension Factor Determines Your Benefit

Your NYSTRS pension is calculated with a straightforward formula:

Maximum Annual Pension = Pension Factor × Final Average Salary

The pension factor is a percentage based on your membership tier and total years of credited service. More years means a higher factor, and each tier has its own multiplier schedule.

Pension Factor by Tier

Tiers 2, 3, and 4 (Article 15)

These tiers share the same graduated multiplier structure:

• First 20 years: 1.67% per year (33.33% at 20 years)
• Years 20–30: 2.00% per year (53.33% at 30 years)
• Beyond 30 years: 1.50% per year (60.83% at 35 years)

At 25 years, your pension factor is 43.33%. At 30 years, it's 53.33%. At 35 years, 60.83%.

Tier 5

Tier 5 uses the same multiplier schedule as Tiers 2–4: 1.67% for the first 20 years, 2.00% for years 20–30, and 1.50% beyond 30.

Tier 6

Tier 6 applies a flat 1.75% per year for the first 20 years and 2.00% per year thereafter. At 25 years, the factor is 45%. At 30 years, 55%.

Unreduced Retirement Ages

Retiring at your tier's unreduced age means no penalty applied to your pension factor. These thresholds vary:

• Tier 1: Age 55 with 5+ years of service (no reductions at any age)
• Tiers 2, 3, and 4: Age 62 with 5+ years of service, or any age 55+ with 30+ years of service (the "30 and 55" rule)
• Tier 5: Age 62 with 5+ years of service, or age 57+ with 30+ years of service
• Tier 6: Age 63 with 5+ years of service, or age 58+ with 30+ years of service (the age 58 threshold is new under Chapter 58 of the Laws of 2026)

The 30-and-55 Rule

For Tier 4 members — the largest cohort approaching retirement — this is the key provision. If you have 30 or more years of credited service, you can retire at age 55 with zero age reduction. Your full pension factor applies to your FAS, producing your Maximum annual benefit.

Without 30 years, you must wait until age 62 for an unreduced pension. Every year you retire before 62 (with fewer than 30 years of service) reduces your benefit permanently.

Age Reduction Penalties

If you retire before your tier's unreduced age without meeting the service threshold, NYSTRS applies permanent reductions to your Maximum pension.

Tiers 2, 3, and 4

For members with fewer than 30 years of service, reductions are prorated by age when retiring before 62. The maximum reduction is 27% at age 55.

Tier 5

• Age 62: 0%
• Age 61: 6.67%
• Age 60: 13.33%
• Age 59: 18.33%
• Age 58: 23.33%
• Age 57: 28.33%
• Age 56: 33.33%
• Age 55: 38.33%

Tier 6

6.5% per year for each year before age 63 (unless you have 30+ years and qualify for unreduced at age 58). A Tier 6 member retiring at age 55 with fewer than 30 years of service faces a 52% reduction.

Running the Numbers

Take a Tier 4 member with 28 years of service and a $95,000 FAS retiring at age 55:

• Pension factor at 28 years: 33.33% (first 20 years) + 16.00% (8 years at 2%) = 49.33%
• Maximum annual pension at 62: $95,000 × 49.33% = $46,864
• Age reduction at 55: 27% (the maximum for Tiers 2, 3, and 4)
• Reduced annual pension: $46,864 × 73% = $34,211

That's a $12,653 per year difference — permanent, for every year of retirement. Two more years of service would push this member past 30 years and eliminate the age reduction entirely under the 30-and-55 rule.

The NYSTRS Retirement Guide includes tier-specific pension factor tables, age reduction calculators, and worked examples for every scenario from 20 to 35+ years of service.

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