Chapter 504 had broad effects on New York State public retirement systems. Individuals who became TRS members after December 10, 2009, but before April 1, 2012, are affected as follows:

• Members who are represented by the United Federation of Teachers (UFT) become vested after they have ten years of service credit. (Note: This provision was superseded by Chapter 56 of the Laws of 2022, which changed the vesting requirement to five years.)
• Members who participate in the Age 55 Retirement Program ("55/27" participants) will make pension contributions of 4.85% of gross pensionable compensation until they have 27 years of service credit, and contributions of 1.85% of gross pensionable compensation after reaching 27 years of service credit.

In addition, Chapter 504 affected certain members regardless of their membership date: For all participants in the Tax-Deferred Annuity (TDA) Program who are serving in (or resigned/retired from) UFT-covered titles, the annual interest rate paid by the Fixed Return Fund is 7% as of December 11, 2009.

Note: Chapter 504 also established a new tier—Tier V—for New York State public retirement systems and the Optional Retirement Program (available to CUNY employees). This change did not apply to TRS.

The code "TRS 414H STD" represents pre-tax QPP deductions.

The code "TRS 55 PRGM" represents pre-tax QPP deductions made under the Age 55 Retirement Program. (Only certain members in Tier II, III, and IV belong to this program.)

The code "TR PN LNS" represents QPP loan payments.

The code "TRS TDA" represents TDA contributions (including your contribution limit and any applicable "catch-up" contributions).

The code "TRS TDA LOAN" represents TDA loan payments.

The code "TRS BUYBACK" represents purchase of credit for prior or Amann service.

The code "TR PN ARR AT" represents mandatory payments for membership service deficits incurred for service performed before July 1989; these funds are not federally taxable upon distribution. (Tier III and IV members)

The code "TRS 414H ARR" represents mandatory payments for membership service deficits incurred for service performed after July 1989; these funds are federally taxable upon distribution. (Tier III, IV, and VI members)

If you choose to retire earlier than normal retirement age, an age-reduction factor may be applied to your service retirement allowance, depending on your tier and retirement program.

Tier I Members

Age reductions would not apply if you are at least age 55 at your payability date. You may retire before age 55 (with an age-reduction factor) if you have at least 30 years of Total Service Credit. The chart below shows the percentage of the full benefit that you would receive in this case:

Tier II, III^, and IV Members

The chart below shows the percentage of the full benefit that you may receive if you retire before age 62 with less than 30 years of Total Service Credit. (^Please note that different age-reduction factors would apply to retirements under Tier III. However, those factors are rarely used and not shown below because Tier III members normally retire under Tier IV.)

Note: Age reductions would not apply to members who retire with at least 30 years of Total Service Credit. Participants in the Age 55 Retirement Program who retire after meeting the requirements of this program would also not be subject to age reductions; for more information, please see the What is the Age 55 Retirement Program? FAQ above.

Tier VI Members

The chart below shows the percentage of the full benefit that you may receive if you retire before age 63.

Members must provide the following to TRS:

Members must provide the following to TRS:

For both QPP and TDA loans, the maximum loan amount available to you is based on factors such as your account balance, your service credit, your current outstanding loan balance, and your highest loan balance during the previous 12 months. You may learn the maximum loan amount that you may borrow by logging in to the secure section of our website. Members may also write to TRS to obtain this information at any time; if you do so, please include your membership number in your correspondence.

The figures used by your union representative were estimates. Several factors included in the actual retirement allowance calculation may not have been known to your union representative when he or she made the estimate. These factors may have included changes in unit value, your recent investment elections, the payment option you chose, your Final Average Salary, your total service credit, and whether you took a loan or made an excess withdrawal at retirement.

For both QPP and TDA loans, the maximum loan amount available to you is based on factors such as your account balance, your service credit, your current outstanding loan balance, and your highest loan balance during the previous 12 months. You may learn the maximum loan amount that you may borrow by logging in to the secure section of our website. Members may also write to TRS to obtain this information at any time; if you do so, please include your membership number in your correspondence.

The figures used by your union representative were estimates. Several factors included in the actual retirement allowance calculation may not have been known to your union representative when he or she made the estimate. These factors may have included changes in unit value, your recent investment elections, the payment option you chose, your Final Average Salary, your total service credit, and whether you took a loan or made an excess withdrawal at retirement.

Below is a summary of the benefits of membership in TRS:

Service Retirement Allowances

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TRS' Qualified Pension Plan (QPP) is a retirement plan administered under Section 401(a) of the Internal Revenue Code. Our members' employers contribute the amount required to meet TRS' pension benefit obligation. And, in order to help fund their retirement allowances, members must also contribute to their QPP account. The amount of these contributions depends on a member's tier and other membership factors. Members become eligible to receive a service retirement allowance upon meeting requirements for service credit and age.

TDA Participation

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In addition to earning a retirement allowance through the Qualified Pension Plan, members may build their personal savings through participation in TRS' Tax-Deferred Annuity (TDA) Program.

The TDA Program, established under Section 403(b) of the Internal Revenue Code, is a supplemental retirement plan. Participation lowers current taxable income, and taxes are deferred on contributions and accumulated earnings.

Loans

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Loans are available to members under both the Qualified Pension Plan and the Tax-Deferred Annuity Program.

Members may borrow as much as $50,000; the maximum amount depends on the amount of the member's TRS funds and the amount of any balances outstanding on TRS loans and other employer-sponsored loan programs (such as the New York City Deferred Compensation Plan).

Disability Coverage

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Disability retirement coverage is available to in-service members and to members on an official leave of absence. To be eligible for an ordinary disability retirement, members must meet certain service requirements. These requirements are waived for members whose disability meets the criteria for an accident disability retirement.

Death Benefits

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Members who have at least one year of service since last joining TRS are eligible for death benefit coverage under the Qualified Pension Plan. Separate death benefit coverage is provided to participants in the Tax-Deferred Annuity Program.

At retirement, members may elect a payment option for their retirement allowance that will provide a benefit for one or more beneficiaries. Post-retirement death benefits are also available for TDA Program accounts.