A New York government worker wanted $20,000 in pension contributions back after switching retirement systems. A court said no.
The worker started as an assistant district attorney in New York County in September 2007 and joined the New York City Employees’ Retirement System (NYCERS) as a tier 4 member in June 2009. In January 2020, he moved to state employment with the State Division of Human Rights and enrolled in the state retirement system as a tier 6 member.
The tier distinction matters. Tier 4 members stop making mandatory pension contributions after 10 years of membership or credited service. Tier 6 members pay in for their entire careers.
In March 2022, the worker applied to transfer his NYCERS membership into the state system. The transfer was approved in June 2022. Under New York’s Retirement and Social Security Law, a successful transfer backdates the employee’s membership to cover their full service period. So his membership date rolled back to June 2009, and his tier status upgraded from 6 to 4.
With more than 10 years now on the books, the state system calculated his “cessation date” - the point where contributions are no longer required - as March 1, 2022. It refunded about $2,550 in contributions made after that date.
The worker wanted more. He argued his cessation date should have been January 2020, when he first joined the state system. That would have meant roughly $20,000 back, plus interest.
$2,550 or $20,000 - it came down to one date.
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