PENSION & RETIREMENT

PENSION & RETIREMENT

MEMBERSHIP SERVICE Service Credit Membership service Transferred service Prior service Amann service Military service Total Service Credit Service Credit Available For Purchase You may purchase credit for optional service. To obtain a cost letter contact TRS at (888)8NYC-TRS / (888)869-2877 or visit http://www.trs.nyc.ny.us

BENEFICIARIES QPP Beneficiaries Death benefit Plan #2 – One Year’s salary, up t o a maximum of three years salary plus MCAF and ASAF. (reduces after retirement – 1st year 50% 2nd year 25% 3rd year and all years after 10%) TDA Beneficiaries Fractional Beneficiaries QPP Beneficiaries (available options at retirement)

COMPUTATION OF ALLOWANCE SERVICE RETIREMENT Tier III/IV 3% contribution for 10 years Fewer than 20 years 1.67% x number of years x FAS* 20 – 30 years 2% x number of years x FAS More than 30 years 60% for first 30 years, each additional year above 30 years @ 1.5% In addition a benefit on the Annuity Savings Accumulation Fund (ASAF) Reduction for early retirement between ages of 55 and 62 with fewer than 30 years of service** * FAS- Average earned salary of best three consecutive years with certain limitations. ** Unless enrolled in 55/25 or 55/27 program

REDUCTION FOR EARLY RETIREMENT Tier IV Age Reduction % Benefit 55 27% 73% 56 24% 76% 57 21% 79% 58 18% 82% 59 15% 85% 60 12% 88% 61 6% 94% 62 0% 100%

SERVICE RETIREMENT EXAMPLE TIER IV 19 Years of Service (Example 2A) Date of retirement: 7/1/20 Age: 62 19 Years of Service: FAS: 85,600 ASAF: 8,400 85,600 X 31.73% 27,160 8,400 X .094 790 800 Retirement Allowance 27,200 800 28,000 20 Years of Service (Example 2B) Date of retirement : 7/1/21 Age: 63 Years of Service: 20 FAS: 86,800 ASAF: 8,900 86,800 X 40% 34,720 34,700 8900 X .0974 866 900 900 Retirement Allowance 35,600 Difference for 1 year 7,600 6

SERVICE RETIREMENT EXAMPLE TIER IV 29 Years of Service (Example 1A) Date of retirement: 7/1/20 Age at retirement: 57 29 Years of Service: FAS: 100,049 ASAF: 12,000 100,049 X 58% 58,028 X .79 45,842 45,800 ASAF 12,000 X .0861 1,033 1,000 Retirement Allowance 46,800 30 Years of Service (Example 1B) Date of retirement 7/1/21 Age at retirement 58 Years of Service 30 FAS 100,049 ASAF 12,600 100,049 X 60% 60,029 60,000 ASAF 12,600 X .0871 1,097 1,100 Retirement Allowance 61,100 Difference for 1 year 14,300 7

SERVICE RETIREMENT EXAMPLE TIER IV Did not opt-in 55/25 Plan Date of retirement: 7/1/2020 Age: 57 Years of Service: 28 FAS: 100,000 ASAF: 12,000 Opted-In 55/25 Plan Date of retirement: 7/1/2020 Age: 57 Years of Service : FAS: 100,000 ASAF: 28 12,000 100,000 X 56% 56,000 100,000 X 56% 56,000 x .79 44,200 1,000 12,000 X .0861 12,000 X .0861 1,000 Retirement Allowance 57,000 Retirement Allowance 45,200 Difference for opting-in 11,800 per year 8

OPTIONS AVAILABLE AT RETIREMENT Maximum Option 1 Option 2 Option 3 (five year certain) Option 4 (10 year certain) Option 5-1 (pop-up on Option 1) Option 5-2 (pop-up on Option 2)

TDA INVESTMENT OPTIONS TDA funds Fixed Return Fund Diversified Equity Fund* Balanced Fund* International Equity Fund* Sustainable Equity Fund* U.S. Equity Index Fund* International Equity Index Fund* *Based on the monthly unit values TDA retirement options Direct rollover Annuitization Deferral RMD Withdrawal