Your NYCERS Pension and Deferred Comp, in Plain English
Your NYCERS Pension and Deferred Comp, in Plain English
If you work for New York City or a participating employer, your pension may come from the New York City Employees' Retirement System, or NYCERS. Many city workers can also save in the city's Deferred Compensation Plan. Here is how the two fit together.
Book a complimentary Atlas VirtualWealth session
No obligation.
Who Is in the Tier 6 Basic Plan
Most city employees who joined NYCERS on or after April 1, 2012 are in the 63/5 Retirement Plan, also called the Tier 6 Basic Plan. Some members are in special plans instead, such as the 20-year and 22-year plans.
What You Put In
You pay a percentage of your pensionable pay until you leave city service or retire. Starting October 1, 2026, the rates run from 3% to 5.75%, depending on your wages. Your contributions earn 5% interest each year, compounded.
When You Are Vested
You are vested once you have five years of credited service, with at least two of them as a member. If you leave city service after that, you can collect a vested benefit at age 63.
How Your Pension Is Figured
You can retire with a full pension at 63 with at least five years of credited service. You can retire as early as 55, but the pension is reduced.
Your pension uses your final average salary, which is your highest three years in a row of wages. With fewer than 20 years, you get 1 2/3% of that salary for each year. With 20 or more years, you get 35% for the first 20 years, plus 2% for each year after that.
Want to see how your pension and savings fit together? By video, we will look at your pension, your deferred comp and the rest of your plan, and talk through clear next steps.
Book a complimentary Atlas VirtualWealth session
No obligation.
Saving More With Deferred Comp
The city's Deferred Compensation Plan has two parts, a 457 plan and a 401(k) plan. You can join either one or both. Both take money right from your paycheck, and both offer pre-tax and Roth options. You pick a percentage of your pay, from 1% to 75%.
For 2026, the IRS limit is $24,500 for each plan. If you are 50 or older, you can generally add an $8,000 catch-up. If you are 60, 61, 62 or 63, that catch-up is $11,250 instead. The 457 limit stands on its own. The 401(k) limit is shared with any other 401(k) or 403(b) you pay into. If your 2025 Social Security wages were over $150,000, your catch-up money has to go in as Roth. For how this affects your taxes, check with your tax preparer.
Related Pages
Ready for the Bigger Picture?
An Atlas VirtualWealth session takes about 45 minutes and looks at your pension, your deferred comp and the rest of your plan together.
Book a complimentary Atlas VirtualWealth session
No obligation.
Call 631-389-2358 or text 631-904-0901 to book.