Tier Reinstatement Q&A
General Information and Tier I and II Member Questions
Q: What is Tier Reinstatement?
A: Tier Reinstatement allows certain New York State public employees who are currently members of a participating retirement system to change their starting date membership into the retirement system. This change in the starting date of membership can affect Tier status if the new date is within the time frames for an earlier Tier. Membership, which may be used for the purposes of this statute, can be in the New York State and Local Employee Retirement System (the system in which most PEF members are currently enrolled) or one of the participating public retirement systems in New York prior to your current membership.
Q: What are the dates of the Tiers?
A: Tier I Prior to 7/1/73
Tier II 7/1/73 through 7/26/76
Tier III 7/27/76 through 8/31/83
Tier IV 9/1/83 to present
Q: What are the participating retirement systems?
A: The following are the participating retirement systems:
Q: Does Tier Reinstatement affect my seniority date?
A: No. The Tier Reinstatement legislation only affects the date on which you became a member in the retirement system. It does not affect your contractual or civil service status at all. Your seniority date remains your first date of permanent appointment to state service.
Q: How can I find out if I am eligible for reinstatement?
A: If the Retirement System's records indicate previous membership under your current name and date of birth your employer will be notified. If you do not see your name on the list sent to your agencies Human Resource Office, contact the Retirement System. For time served in another participating retirement system you must contact the ERS. Tier I and II members must file an application with the ERS. (See information below for what should be included in this correspondence.)
Q: How do I apply for Tier Reinstatement?
A: Members seeking reinstatement to Tier I or II must file an Application to Reinstate a Former Tier I or II Membership (RS 5506). Please note, Tier IV members will automatically be transferred to Tier III if their previous membership was with the same system no application is necessary.
Q: Where can I get an application to reinstate a former Tier I or II membership (RS 5506)?
A: Your agency personnel office should have a supply or you can download a copy from the internet. The Comptroller's website www.osc.state.ny.us has a link to the Retirement System. At that link select RS 5506 from A Selection of Retirement System Forms. You can also call the Tier Reinstatement Hotline at (518) 486-7925 or mail your request to:
Member Services Bureau
New York State and Local Retirement Systems
Governor Alfred E. Smith Office Building
Albany, NY 12244-0001
Q: Where do I mail completed forms?
A: Completed applications should be mailed to the Member Services Bureau address shown above.
Q: Once I submit my application for reinstatement can I change my mind and withdraw it?
A: No. Once your application is submitted for reinstatement to Tier I or II your decision is irrevocable.
Q: If I am in Tier I(B) (entered retirement system on or after 4/1/72) can I change my start date to Tier I(A) (entered retirement system prior to 4/1/72) and receive service credit for my vacation accruals?
A: Yes, Tier I members can change their starting date in the retirement system to a date that puts them in Tier I(A) and therefore allows them to use up to 30 days of vacation leave accruals in their Final Average Salary computation. In order for them to change their starting date they must follow the procedures outlined above.
Questions for Members of Tier III and IV
Q: How can Tier IV members be certain that the change has taken place?
A: You will be advised of your right to have your former date of membership reinstated in the course of other servicing such as processing requests for previous membership, general estimates and retirement applications. If you want to accelerate this process you should write to the Member Services Bureau to request reinstatement and the possible costs involved. (The address is above.)
Q: How do I apply for Tier III membership if my previous time was with another system?
A: If the time was with one of the participating systems, you need to write to the New York State Retirement System and include the following information:
Q: Will I have to pay more for my new date of membership?
A: Members being reinstated to Tiers I or II will incur no costs for the change. Tier IV members moving to a starting date that puts them in Tier III will have to pay the employee contribution for this new time added to their current time served in the Retirement System. The Retirement System will advise you of this cost and give you a choice of payment options. You may decline the change at this point if you do not want to make this purchase.
Q: If I am moving to Tier I or II will I get my past pension contributions back?
A: No, past pension contributions will not be refunded to you. According to the Retirement System this money will be transferred to the Pension Accumulation Fund to help pay for your increased benefit. Applications received by June 30, 2000 will be processed as though they were received on December 17, 1999. Contributions received between December 17, 1999 and the date the tier change is completed will be refunded. For applications received after July 1, 2000 contributions will be refunded for service after the date the application is received.
Q: As a Tier III or IV member I purchased time served in another pension system and/or withdrawn service performed after March 31, 1960. How will this be handled?
A: If you are being reinstated to Tiers I or II all of your arrears payments, plus interest, will be refunded. (See question on taxes)
Q: As a Tier III or IV member I have an outstanding loan balance. What will happen to this loan?
A: Your loan will continue to be paid off through payroll deductions.
Q: Are there any tax implications with a change in Tiers?
A: Any money applied to reduce your outstanding loan or refunded to you may be reportable for federal income tax purposes.