The Part B plan allows qualified members with 25 years of credited
service in pension Tiers 2 and 4 to retire as early as age 55 without
the usual substantial Tier 2 and Tier 4 penalties for retiring before
62.
This option is available only during a three-month window period.
For school employees, the open enrollment period began June 3. It
will close Aug. 31. Mayoral agencies - whose timetable is established
by mayoral executive order - and other employers may establish their
own 90-day enrollment periods, which must end by March 31, 2003.
Those employers include state agencies, the Health and Hospitals Corp.,
the City University of New York, the New York City Housing Authority,
libraries, the Off-Track Betting Corp., the Triborough Bridge and
Tunnel Authority, MTA New York City Transit and the Office of the
Comptroller.
At city and state agencies that fail to establish a starting date,
the open enrollment period will begin automatically Jan. 1, 2003.
In addition being at least 55 years old and having 25 years of creditable
service, workers must be on the payroll from Feb. 1 to the day before
the open enrollment period starts. Workers who are on a leave of absence
without pay for 12 weeks or longer during that period will be excluded
from the plan.
None of the penalties in the Tier 2 and Tier 4 pension plans will
apply to workers who take advantage of Part B. In contrast to the
traditional early retirement plan, which grants participants up to
36 months of extra credited service toward their pension, the 25-55
no-penalty plan does not grant extra pension credit for years of service.
Participants must file their applications for the 25-55 no-penalty
plan at least 14 days before their intended retirement date. The retirement
date must be during the open period.
Part B is particularly tailored for members in the Tier 2 and Tier
4 pension plans who did not sign up for 55-25 plan offered in the
1990s. Members of Tier 1 and the 55/25 plan don't benefit from Part
B of the new early retirement incentive.