Tier 6 Pension Reforms Update and Correction
The information below is for informational purposes and does not constitute financial or investment advice. If you have questions about your individual situation, you should speak to your TIAA advisor or financial advisor. Both TRS and TIAA have contact lines to make an appointment with a representative who can address questions about your individual retirement situation.
Improvements to pensions for most PSC members went into effect October 1st, thanks to a multi-year campaign supported by the PSC and our statewide affiliate, NYSUT. This graphic overviews the improvements made to Tiers 5 and 6, including the latest gains detailed below.
Tier 6 applies to everyone hired since April 1, 2012 – almost 60% of full-time faculty and staff, and many adjuncts. Full-time CUNY workers choose between two plans in the first 30 days of employment: a defined-benefit plan and a defined-contribution plan. CUNY’s defined-benefit plan is provided by the New York City Teachers’ Retirement System (TRS). About 30% of faculty and staff are enrolled in TRS, in any tier. Adjuncts may only enroll in TRS (except at the Educational Opportunity Centers where it must be TIAA). The Optional Retirement Program (ORP), run by TIAA, is the defined-contribution plan. About 70% of faculty and staff are in the ORP. Tier 6 reforms affect the plans differently.
For TRS Pensions
CUNY employees in Tier 6 of the Teachers Retirement System (TRS) can now retire without penalty starting at age 58 after 30 years of service. The previous age was 63 regardless of years of service.
For ORP/TIAA Retirement Plans
CUNY employees in Tier VI of the Optional Retirement Program (ORP) will receive an increased contribution from CUNY to their TIAA retirement accounts of 1% of their gross pay. They will also see a reduction in their out-of-pocket employee contributions. Our This Week newsletter emailed in early October incorrectly indicated that these reductions apply to both TRS and ORP enrollees. That is not the case. ORP enrollees benefit from their reduced personal contributions; TRS enrollees can retire at 58 after 30 years service.
All ORP enrollees earning more than $45,000 contribute less toward their retirement as of October 1, 2026, with the largest reductions going to members earning $55-75k (from 4.5% of salary to 3%) and $75-100k (from 5.7% to 4%). Employees with salaries between $100-125k will see a reduction in their contribution from 6% of salary to 5.25%.
The additional take-home pay from the reduced employee contributions will vary based on title and salary step. For example, an Assistant Professor on the penultimate step would see a reduction in mandatory contributions of almost $800 in a year. A Lecturer on the same step would save over $1,700, and an assistant to HEO on that step would save over $1,600.
For employees earning less than $55,000 and more than $100,001, the increase in the employer contribution will be greater than the decrease in the employee contribution. They will see more money in every paycheck and a net increase in the total amount being invested in their TIAA ORP account.
For employees earning between $55,001 and $100,000 per year, the increase in the employer contribution will be less than the decrease in the employee contribution. They will see more money in every paycheck but a net decrease in the total amount invested in their TIAA ORP account, resulting in lower accumulations at the time of retirement. Employees in these income bands still come out ahead, but they must choose whether to put some of their additional take-home pay in an alternate investment account to maintain or increase their expected accumulations at retirement. There are options available through the CUNY TIAA plan. Talk to your TIAA advisor or financial advisor, if you have one. The PSC cannot give financial or investment advice.
Net Change in TIAA Contributions for Tier 6 Income Bands
|
Salary Range |
Increase in CUNY Contribution after 10/1/2026 | Decrease in Employee Contribution after 10/1/2026 | Change in Total Contributions to Employee’s TIAA Account |
|
Up to $45,000 |
1% | 0.00% | 1.00% |
|
45,001-55,000 |
1% |
0.50% |
0.50% |
|
55,001-75,000 |
1% |
1.50% |
-0.50% |
|
75,001-100,000 |
1% | 1.75% |
-0.75% |
|
100,001-125,000 |
1% | 0.75% |
0.25% |
|
$125,001 and over |
1% | 0.25% |
0.75% |
Learn more about how the PSC can assist you in retirement and pension planning
- Thinking About Retirement: A Checklist
- Phased Retirement
- Travia Leave
- CUNY Email address
- Quick Guide to TIAA, the Optional Retirement Plan
- TRS FAQ | Improvements were made to TRS Tier 6 in the spring 2026 legislative session. Read about them here in Clarion. We will update the FAQ to reflect the changes soon.
- Full-Timer Pension Benefits
- Part-Timer Pension Benefits
- Health Benefits Guide for full-timers eligible for Medicare and NYC Retiree Health Insurance
- Medicare Part B Reimbursement
For more information contact Sandra Zaconeta, Retirement Benefits Counselor at the PSC/CUNY Welfare Fund, at 212-354-5230 ext. 1317.
On contractual benefits such as Travia Leave & Phased Retirement: consult Faye Moore, PSC Director of Contract Administration.
Direct links to pension plan providers
- TRS: Teachers’ Retirement System
- TRS Educational Programs for Tiers I, II, III, IV, VI & Tax-Deferred Annuities (TDAs)
- TIAA: Teachers Insurance and Annuity Association-College Retirement Equities Fund
- To schedule a personal advising session with TIAA, call (800) 842-2776, Monday-Friday, 8am-8pm EST. Or go to TIAA.org/schedulenow.
