Over 4,200 municipal workers—more than anticipated—have signed up so far for the city's early retirement incentive.

For workers at mayoral agencies, the last date to file for early retirement at the New York City Employees Retirement System was Sept. 24.

The incentive aims to help the city trim its workforce and close budget gaps. Under an agreement with municipal unions, the city pledged not to lay off any workers while the program is under way.

"There has been a lot of interest in the early retirement incentive," said DC 37 Executive Director Lillian Roberts, noting that participation is higher than during the last incentive in 2000, when only 1,500 workers took part.

"Hundreds upon hundreds of members sought help from the union's counselors as they were making their decision on whether to retire, and we will continue to provide assistance as non-mayoralty agencies offer their early retirement programs," Ms. Roberts said.

Two incentive plans offered
The incentive is divided into two programs:

  • Part A is a traditional program modeled on past incentives. Participants must be at least 50 and have 10 years of service and two years of membership in a pension plan. Part A provides up to 36 months of extra credited service, but participants may be subject to a penalty of reduced pension payments based on their age at retirement, except for people in the Chapter 96 plan, who may qualify for a year of bonus credit.

  • Part B allows qualified members with 25 years of credited service in pension tiers 2 and 4 to retire as early as 55 without the usual penalties for retiring before 62. Part B does not offer any extra pension credits.

The legislation creating the early retirement programs permits employers to decide whether to opt into the Part A program and to determine the enrollment period. At city and state agencies that fail to establish a starting date for Part B, the legislation requires that the open period begin automatically on Jan. 1, 2003.

While the early retirement incentive is closed at mayoral agencies, other public sector employers in the city will be offering it.

  • At the Health and Hospitals Corp., the open period will be from Nov. 1 to Dec. 30 for Part A. Participants must notify their employer by Dec. 9 and file with NYCERS by Dec. 16.
    o The open period for Part B at HHC is from Nov. 1 to Jan. 29, 2003. The last day to file with NYCERS is Jan. 15.

  • At the New York City Housing Authority, the open period for Part A started Sept. 4 and will last until Dec. 2. Employees must notify the Authority by Nov. 11 of their plan to retire. The filing deadline with NYCERS is Nov. 18.

  • The open period for Part B at the Housing Authority lasts from Oct. 3 to Dec. 31. The deadline for filing with NYCERS is Dec. 17.

  • At the City University of New York, the open period for Part A isOct. 3 to Dec. 31. CUNY must be notified by Dec. 10, and the last filing date with NYCERS will be Nov. 17.

  • The Part B open period is from Oct. 31 to Jan. 28. The last day to file with NYCERS will be Jan. 14.

  • Local 384 "Gittleson" clerical employees at CUNY are not eligible for the early retirement incentive. Local 384 decided not to take part because as a condition for participation, CUNY wanted the local union to agree to decrease the number of clerical workers required by an employment floor in the university system.
For more information on the Early Retirement Incentive program or on union counseling sessions, call (212) 815-1200. New retirees are urged to join the DC 37 Retirees Association. Call (212) 815-1781.