NYSUT Keeps Chipping Away At Tier VI

As you may know, the New York State United Teachers (NYSUT) has been busy lobbying the politicians in Albany to make some tweaks to the tier 6 pension.🐝💼

Those efforts have been bearing some fruit as of late.

First up on the chopping block: the vesting period. In 2022, Kathy Hochul and the Legislature waved their magic wands and poof! Reduced the time it takes to vest in the pension from 10 years to 5. Just like that, Tier 6 is feeling a little more like Tier 4. Of course, this was done with the lobbying efforts of NYSUT🎩🐇

But wait, there’s more! During the current legislative session, the NYSUT Leader Bulletin that I received dropped a bombshell: a major improvement to the final average salary calculation for tier 6 members. No more averaging the best 5 consecutive years; now, it’s the best 3 consecutive years. Talk about moving in the right direction! 🚀💰

The Road to Tier 4 Status:

While these changes are certainly cause for celebration, we’re not even close to Tier 4 status yet. The major issue is getting the age at which one can collect a full pension down from 63 to 55. With each step forward, we’re getting closer to a retirement plan that rivals Tier 4. 🏰💼

Stay Informed, Stay Empowered:

So, what’s the moral of this pension tale? Members need to keep the pressure on the pols. After all, knowledge is power, and a well-informed educator is a force to be reckoned with! 💪📚

Of course, you should not be relying on your pension alone to bail you out. You should be contributing 10% of your salary to your district’s 403b plan and make sure it’s not in an annuity which is high in fees and commissions.