Calculating Pension Best 3 Years Tier 4

In Finance by Sam

When calculating your pension, I was always told the best 3 years out of the last 5 years. Well I asked NYCERS when I retired that exact question and I was told its not like that.

The best 3 years in a row in your career is what’s used or the last 36 months (whichever is more), what gets confusing is that in your last 5 years you will only get credit for pension purposes 10% over the previous year you earned – not paid, and most likely you earned the most in those last 5 years in your career. But apparently there are situations where your best 3 years could have happen maybe before your last 5 years. Use the form provided below for a better understanding of the calculations used by NYCERS.

Just for example purposes only:

Year 5 : You make 50,000 = you get credited for 50,000.

Year 4: 80,000 you will only get credited for 55,ooo.

Year 3: 90,000 you will only get credited for 88,000.

Year 2: 100,000 you will only get credited for 96,800.

Year of retiring 130,000 you will only get credit for 106,480.

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