Qualified Pension Plan (QPP) Membership Eligibility
TRSNYC membership is required for some New York City public educators and optional for others. The following rules apply:
Designated employees of one the following employers may qualify for membership in TRSNYC:
- The New York City Department of Education (NYCDOE)
- The City University of New York (CUNY)
- A New York City Charter School that participates with TRSNYC for pension coverage (or a TRSNYC Participating Charter School Employer)
Membership is available to employees of the following entities:
New York City Department of Education
- Appointed teachers and pedagogues automatically become TRSNYC members as of their appointment date.
- Certain paraprofessionals^ can join TRSNYC at any time during employment. Membership would begin on the day that TRSNYC receives their request for membership through the TRSNYC website.
^Eligible paraprofessional titles include Auxiliary Trainer, Bilingual Professional Assistant, Educational Assistant, Educational Associate, Family Assistant (A & B), Family Associate, Family Worker, Health Aide, Parent Program Assistant, and Teacher Aide.
City University of New York
- Full-time employees in certain instructional and administrative titles^^ can join either TRSNYC or the Optional Retirement Program within 30 days of their CUNY appointment. If they do not make an election within that period, they are mandated to become TRSNYC members as of their appointment date. Membership would begin on the day they were appointed to their CUNY title.
- Adjuncts (teaching and non-teaching) in regular and/or substitute employment status can join TRSNYC. Membership would begin on the day that TRSNYC receives their enrollment application.
^^These are the instructional and higher educational administration series titles. Employees working solely for the CUNY Research Foundation are not eligible for TRSNYC membership.
Participating Charter School Employers
- TRSNYC Participating Charter School Employers (CS) include Charter Schools with agreement with TRS and Conversion Charter Schools. A list of TRSNYC participating Charter School Employers can be found on the Membership Eligibility section of the TRSNYC website
Some Charter School Employers use different names for certain pedagogical positions. Prior to enrollment, TRSNYC may review the eligibility for membership of a title based on the nature of the position as it pertains to the profession and science of teaching. Pedagogical titles eligible for TRSNYC membership generally include the following:
Principal |
Secretary |
Social Worker |
Assistant Principal |
Payroll Secretary |
Educational Administrator |
Teacher |
Guidance Counselor |
Dean |
School Psychologist |
School Operations Manager |
|
And, certain paraprofessionals^ also have the option of joining.
Charter School employees working in uncertified positions are ineligible for TRSNYC membership. Upon obtaining a TRSNYC membership eligible position, service rendered in such position may be eligible for pension credit.
Charter School employees whose positions do not qualify them for TRSNYC membership may be eligible for membership in the New York City Board of Education Retirement System (BERS).
^Eligible paraprofessional titles include Auxiliary Trainer, Bilingual Professional Assistant, Educational Assistant, Educational Associate, Family Assistant (A & B), Family Associate, Family Worker, Health Aide, Parent Program Assistant, and Teacher Aide.
Eligibility for TRSNYC Membership
TRSNYC membership is mandatory if: |
TRSNYC membership is optional if: |
A teacher or pedagogue employed by the NYCDOE or a participating Charter School employer.
A full-time instructional staff member employed by CUNY provided they are not a member of the Optional Retirement Program such as a Retirement Annuity Plan offered by TIAA. Full-time CUNY substitute teachers have 30 days from their Date of Appointment to join TRSNYC or TIAA. Employees working in substitute employment status have the option to become TRSNYC members. |
A paraprofessional (in the title of Auxiliary Teacher, Bilingual Professional Assistant, Educational Associate, Family Assistant (A & B), Family Associate, Family Worker, Health Aide, Parent Program Assistant or Teacher Aide) employed by the NYCDOE or participating Charter School Employer.
An adjunct employed by CUNY.
TRS-eligible titles |
The CUNY titles listed below are eligible for TRSNYC membership:
The following is a list of the more common membership-eligible titles:
Adjunct Assistant Professor |
Associate Professor |
Higher Education Associate |
Adjunct Associate Professor |
Associate Registrar |
Higher Education Officer |
Adjunct College Laboratory Technician |
Chief College Laboratory Technician |
Lecturer |
Adjunct Lecturer |
CLIP Instructor |
Medical Clinical Professor |
Adjunct Professor |
College Laboratory Technician |
Non-Teaching Adjunct (I-VI) |
Assistant Professor |
Continuing Education Teacher^^^ |
Professor |
Assistant Registrar |
CUNY Start Instructor |
Senior College Laboratory Technician |
|
Higher Education Assistant |
|
^^^Hired with the intent to work a minimum of 30 hours of work per week continuously for more than six months. This is a requirement for adjuncts.
Employees working solely for the CUNY Research Foundation are not eligible for TRSNYC membership.
SR: NYC Administrative Code §13-501; RSSL §600; EDNL §182, §2854 subdivision 3(c); and §6253.
What TRSNYC Needs from Employers
- TRSNYC needs complete demographic information, employment data (e.g., employment start/end dates, title, salary, work location, earnings and service history)
- If member is enrolled in a Defined-Contribution plan or a tax-deferred product
- If member is previously enrolled in a prior membership in a public retirement system
Enrolling in TRSNYC
Members whose TRSNYC membership is automatically established do not need to apply for membership. Membership will begin as of their appointment date. However, those individuals for whom membership in TRSNYC is optional must complete the request for membership on the TRSNYC website. Membership will begin as of when they initiated the enrollment process online.
There are four methods of enrollment:
- TRSNYC Website: A qualified individual may visit the TRSNYC website and locate the panel Enroll in TRS! on the website's homepage.
- Partner Portal: A Charter School employer may enroll on behalf of a new member by entering the required information into the Partner Portal.
- Force-In: The NYCDOE uploads a service file, an address file, and a salary file of members and potential members.
- IP44b – CUNY: On the 31st day after an appointment into a mandated TRSNYC membership-eligible position in which a pension system election has not been made, the CUNY Benefits Office will initiate the Force-In process by submitting to TRSNYC a Letter of Appointment/Employment Update (code IP44B). The IP44b is also used to provide TRSNYC with information on employment updates for employees with an existing TRSNYC membership.
LR: Chapter 890 of the Laws of 1976; Chapter 414 of the Laws of 1983, as amended Article 14 of the Retirement and Social Security Law
SR: RSSL §500 and §600.
For more information, see the Enrolling in TRS brochure.
What Employers Need to Know
- Employees in membership-eligible optional titles can enroll on the TRSNYC website.
- Membership in TRSNYC is governed by NYC/NYS law;
- TRSNYC determines final approval for membership.
TRSNYC Tiers and Membership Dates
The TRSNYC is divided into five tiers, which are distinguished by dates of membership. Tier I members may continue to make voluntary contributions to their Annuity Savings Fund through payroll deduction only if they have continually been contributing. Tier II members are not permitted to contribute to the System. The law requires Tiers III and IV members to contribute 3% of their salary toward retirement, and Tier VI must contribute from 3-6% of their salary, based on annual wages. (See chart below for tiers and dates of membership.)
Tier |
Dates of Membership |
1 |
Prior to 07/01/1973 |
2 |
7/01/1973 – 7/26/1976 |
3 |
7/27/1976 – 8/31/1983 |
4 |
9/07/1983 – 3/31/2012 |
4 (Chapter 504) |
12/11/2009 – 3/31/2012 |
6 |
On or after 3/31/2012 |
QPP Mandatory Contribution Rates
TRSNYC's Qualified Pension Plan (QPP) is a retirement plan administered under Section 401 (a) of the Internal Revenue Code. The QPP combines features of a defined-benefit pension plan with those of a defined-contribution pension plan. Benefits are provided through employer contributions, member contributions and investment income.
TRSNYC's pension benefit obligation is funded by employer contributions from the NYCDOE, CUNY, and Participating Charter School employers. The NYCDOE and conversion Charter School employers also contribute an additional amount to the accounts of eligible TRSNYC members who reach the maximum of their salary schedule. This amount is $550 per year for supervisors and $400 per year for other members. These are contractually determined and may change as part of the collective bargaining process. These monies contributed by the employer are known as the Supplemental Contribution and are allocated separately from the member contributions. For Tier I and II members, these monies are deposited in their Annuity Savings Fund ASF; for Tier III and IV members, monies are deposited into their Annuity Savings Accumulation Fund (ASAF). Tier VI members, Participating Non-Conversion Charter School employees, adjuncts, college employees and paraprofessionals are excluded from this provision. In order to help fund retirement allowances, TRSNYC members must also contribute to their QPP account. The amount of these contributions depends on a member’s tier.
TRSNYC members make pension contributions representing a percentage of their wages. Generally, pension contributions are automatically deducted from members' pay earning 5% interest, and federally tax-deferred. These contributions are due beginning on their membership date. If payroll deductions do not begin immediately, members will incur an initial deficit.
The following provides the Basic Member Contribution (BMC) and the Additional Member Contribution (AMC) rates:
- Tier I Members – Certified rate
- Tier II Members – Certified rate and 1.85%, if in the Age 55/25 Program under Chapter 19
- Tier III Members – 3% BMC for 10 years under Chapter 126 and 1.85% AMC for 55/25 and 55/27 years under Chapter 19
- Tier IV Members – 3% BMC for 10 years under Chapter 126 and 1.85% AMC for 55/25 and 55/27 years under Chapter 19 or under Chapter 504 4.85% for 27 years and 1.85% until terminating event
- Tier VI Members – BMC rate range from 3% to 6% (rate depends on wages earned)
The table below provides the contribution rates for Tier VI members:
Annual Wage |
Contribution Rate |
$45,000 and less |
3.00% |
More than $45,000 to $55,000 |
3.50% |
More than $55,000 to $75,000 |
4.50% |
More than $75,000 to $100,000 |
5.75% |
More than $100,000 |
6.00% |
Pension contributions are not required on any wages that exceed the governor's salary of New York State or the Overtime Cap. Contributions exceeding the Cap will be returned.
- For the first three plan years of membership, TRSNYC uses projected annual earnings provided by the employer(s) to determine the contribution rates. For the fourth plan year of membership and each plan year thereafter, TRSNYC uses the actual wages earned two plan years prior to the current plan year, as indicated below.
Projected Wage Method (First Three Plan Years) |
|
1st Plan Year |
2nd Plan Year |
3rd Plan Year |
Projected annual salary |
$70,000 |
$71,000 |
$72,000 |
Rate based on projected annual salary |
4.5% |
4.5% |
4.5% |
Actual wages earned in the plan year |
$72,000 |
$72,500 |
$76,000 |
Contributions made in the plan year |
$3,240 (4.5% of $72,000) |
$3,263 (4.5% of $72,500) |
$3,420 (4.5% of $76,000) |
Actual Wage Method (Fourth Plan Year and thereafter) |
|
4th Plan Year |
5th Plan Year |
Actual wages earned in the plan year |
$80,000 |
$82,500 |
Rate based on actual wages earned two plan years prior to current plan year |
4.5%
(2nd plan year) |
5.75%
(3rd plan year) |
Contributions made in the plan year |
$3,600 (4.5% of $80,000) |
$4,744 (5.75% of $82,500) |
- BMCs must be made until separation from service or retirement. These contributions are held in the Member Contribution Accumulation Fund (MCAF) and accrue 5% annual interest.
Deficits
Any shortage of member contributions is known as a deficit. The following situations may cause a deficit:
Members must resolve deficits in their QPP accounts before retirement benefits can be determined. All deficits accrue 5% annual interest.
Deficits are recouped when possible through payment plans of deductions from pay. For BMC deficits, the duration of the default plan is equivalent to the duration of the deficit period(s).
What Employers Need to Know
- Contributions made before the effective date of the law (i.e., October 1, 2000) and the member's Eligibility Date will not be refunded. Any such contributions would remain in members' accounts to help fund their retirement allowance.
- If payroll deductions do not begin immediately, members will incur an initial deficit. And, deficits that occur during the membership lifecycle incur 5% annual interest and impact the member upon retirement.
Tier Reinstatement
Section 645 of the Retirement and Social Security Law:
Section 645 of the Retirement and Social Security Law allows current and future active members of TRSNYC, who held a former membership in any NYS public retirement system, to be reinstated to their former date of membership.
There is no deadline or window to file for reinstatement. This election can be made by applying for reinstatement by filing a Membership/Tier Reinstatement Request Form (SD42) available on our website at www.trsnyc.org.
After a member applies for reinstatement, TRSNYC informs the member of their eligibility and any cost associated with reinstatement. The cost would include Basic Member Contributions (BMCs) and Additional Member Contributions (AMCs), if applicable representing the previous membership period, along with applicable interest.
Eligible retirement systems include the New York City Employees' Retirement System (NYCERS), the New York City Board of Education Retirement System (BERS), the New York City Police Pension Fund, the New York City Fire Department Pension Fund, the New York State Teachers' Retirement System (NYSTRS), the New York State and Local Employees' Retirement System (NYSLERS), and the New York State and Local Police and Fire Retirement System (NYSLPFRS).
What Employers Need to Know
- Membership reinstatement is initiated by the member.
- Once the form is received, TRSNYC will verify the former membership and former membership refund status, calculate the amounts and communicate costs to the member.
- Members must pay the lump sum amount refunded under the original membership plus 5% interest compounded annually from the date of the refund to the date of repayment.
- In most cases, the benefits of reinstatement to an earlier tier outweigh the costs but individual cases differ. Some situations will be beneficial, some might not. As a reminder, the contribution rates vary from tier to tier and reinstatement to an earlier tier may create a deficit in the account that must be paid.
- Encourage members to contact the TRSNYC Member Services Center to assist with making an informed decision.
Membership Restoration
Retired members who return to employment in a TRSNYC-eligible position can be restored from retirement to active service either on a voluntary or mandatory basis, depending on the new position. Those who are not restored to active service may be subject to earnings limitations. See Section 20: Earnings After Retirement.
Retired members may apply to TRSNYC for restoration to active service and must provide TRSNYC with a Notice of Appointment form from their employer. Upon restoration, TRSNYC will suspend a member's QPP retirement allowance payments, but any TDA annuity payments continue.
If members complete at least five years of service following restoration, their Final Average Salary (FAS) will be recalculated for the subsequent retirement allowance. Members who complete less than five years of service following restoration will receive credit for service, but their retirement allowance would be based on their previous FAS. Note: Tier I members need only four years of additional service to have their FAS recalculated.
Disability retirees can be restored to active service voluntarily or by a decision of the TRSNYC Medical Board as follows:
- If the Medical Board certifies that the member is no longer disabled, TRSNYC will notify their former employer. If this ruling occurs within 10 years of the disability retirement date, the former employer must restore the member to active employment. If more than 10 years have passed, restoration is at the former employer's discretion. If a member is restored to active service, their retirement allowance under the Qualified Pension Plan (QPP) and any annuity payments under the Tax-Deferred Annuity (TDA) Program would stop in accordance with applicable law.
- A disability retiree seeking return to active service must file a letter with the employer requesting re-employment in a TRSNYC-eligible position and must apply for restoration to active service with TRSNYC with form Application for Voluntary Restoration from Disability Retirement (code DI30). Restoration to active service requires an examination by the Medical Board and approval of the Medical Board and the Teachers' Retirement Board.
What TRSNYC Needs from Employers
- Official proof of new employment, such as the Notice of Appointment (IP44b).
- TRSNYC may also require service and salary history to assess new benefit determination, if the member completes more than 5 years of service.
What Employers Need to Know
- If a member who received a lump-sum disability benefit is restored to active service, no death benefit is payable. In addition, unless the member performs at least five years of service following restoration, any retirement benefit that the member may become entitled to receive is reduced. The calculation to determine the reduction of the new retirement benefit, if applicable, considers the value of the disability benefit already paid, minus the value of any post-retirement benefit that would have been paid. These calculations are determined by the New York City Office of the Actuary.
SR: RSSL §210; NYC Administrative Code §13-550 and §13-501 subdivision 18-b
Beneficiaries
Members designate beneficiaries for their QPP account and also for the TDA, if they are a participant of the program.
What Employers Need to Know
- When members don't have beneficiaries on file, that means any death benefits would be payable to their estate—and subject to the bureaucracy and delays of probate.
- Members can name individuals, trusts and charities as beneficiaries.
- Making a designation provides TRSNYC with clear instructions for paying benefits directly to whoever they name.
- After life-changing events such as, births, deaths, marriages, and divorces, encourage members to review and change the way they want their benefits to be paid.
- Beneficiary designations and changes may be completed on TRS' secure website. After completion, TRSNYC will send a complete list of updated designations to the member and they should notify TRSNYC of any issues or fix them online.