57/5 Retirement Plan For Tier 4 Members

PARTICIPATION election to participate in the 57/5 Plan shall be irrevocable. As a Tier 4 member you are required to contribute 3% of your gross wages until the earlier of attaining 10 years of Credited Service or upon reaching your tenth anniversary of membership. These contributions are referred to as Basic Member Contributions (BMCs) and they are held in the Member Contribution Accumulation Fund (MCAF). Participants in the 57/5 Plan are also required to contribute Additional Member Contributions (AMCs) for ALL Credited Service according to the following schedule: • 1.85% of gross wages for all Credited Service rendered subsequent to December 2, 2001 • 2.85% of gross wages for all Credited Service rendered after January 1, 1998 and prior to

December 2, 2001 • 4.35% of gross wages for all Credited Service rendered prior to January 1, 1998 In addition to the BMCs and AMCs described above, participants employed in “Physically Taxing Positions*” must contribute an additional 1.98% of gross wages on ALL Credited Service. Participants must contribute AMCs until they attain 30 years of Credited Service. AMCs are maintained in the Retirement Reserve Fund (RRF), which is an account maintained separately from the MCAF account. Fifty percent of the AMCs are considered employee contributions; the other fifty percent of the AMCs are considered employer contributions. This distinction becomes significant particularly in refunds and loans (See the Refunds and Loans sections of this brochure). *A Physically Taxing Position is a position in City service included in the official List of Physically Taxing Positi- ons established and maintained by the NYC Office of Labor Relations. Members in the 57/5 Plan employed in such positions are required to contribute more for the right to retire as early as age 50. All contributions are Federal tax deferred, meaning that you do not pay Federal taxes on the contributions, only New York State and local taxes. Contributions made while on Union leave are not Federal tax deferred. This brochure outlines the benefits of the 57/5 Retirement Plan for Tier 4 members. Any person who becomes employed in an Eligible Position after June 28, 1995 and becomes a Tier 4 member must participate in the 57/5 Plan. An Eligible Position is any position in City service except for the following: 1. Any Transit Authority member eligible to participate in the Transit 25/55 Plan 2. Any position in the uniformed forces of the Department of Correction and the Department of Sanitation 3. The positions of Bridge and Tunnel Officer, Bridge and Tunnel Sergeant, Bridge and Tunnel Lieutenant, Assistant Bridge and Tunnel Maintainer, Bridge and Tunnel Maint- ainer, Senior Bridge and Tunnel Maintainer, and Laborer with the Triborough Bridge and Tunnel Authority 4. Any position in the Division of Housing and Community Renewal 5. Any position in the unified court system 6. Any teaching position with the City University of New York 7. Any Investigator employed in a District Attorney’s office While not specifically excluded from the definition of Eligible Position, Tier 4 members who become employed in certain spe- cial occupational titles (e.g., Emergency Medical Technicians, Deputy Sheriffs, etc.) may be compelled to participate in special...

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