Article Guide
The NYCERS F241 form is an essential document for members of the New York City Employees' Retirement System (NYCERS) who wish to purchase credit for service rendered prior to their membership date. This application allows members to buy back previous service, which may enhance their retirement benefits and potentially enable them to retire sooner. To initiate this process, individuals can either submit the form directly or apply online, provided they have a MY NYCERS account and a registered PIN. It is crucial to understand that NYCERS will need to verify both salary and service history for the period in question. Typically, adequate pay records are available, but in some cases, members may need to provide additional information from their previous employers. Documentation such as W-2s, detailed Social Security earnings reports, or payroll printouts are necessary to verify earnings, while an employment history or roster card from the employer will confirm service. Members must indicate their preference for how NYCERS should obtain these records, as the buy-back process cannot proceed until all required information is received. For those uncertain about the implications of purchasing previous service or the associated costs, NYCERS encourages reaching out for assistance. Understanding the nuances of the F241 form and the buy-back process can significantly impact a member’s retirement planning.
Preview - Nycers F241 Form
NYCERS USE ONLY |
F241 |
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*241*
Application to Purchase Credit for Service
Rendered Prior to Membership Date in NYCERS
You may purchase previous service by submitting this application or by applying online (a MY NYCERS account and registered PIN are required to apply online). Please be sure to read the Fact Sheet on the back of this form. NYCERS must verify both the salary and the service history for the period of time you want to purchase. In most cases NYCERS will have adequate pay records to process your
NYCERS requires the following documentation:
To verify your earnings:
To verify your service: roster card/employment history provided by your employer.
Please check one of the boxes below to indicate how you would like your pay records and service history to be obtained. NYCERS cannot process your
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I am a NYCERS member and would like to purchase credit for previous service for the following period(s):
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Please select how you would like your pay records to be obtained (check only one):
I will reach out to the agency I worked for and I will submit to NYCERS Form #242 or Form #243 along with all of the information required to further the process of purchasing previous service.
I would like NYCERS to contact the agency and get all the information required to further the process of purchasing previous service. (If you check this box, you do NOT need to submit Form #242 or Form #243.)
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F241
FACT SHEET
What previous service can I purchase?
Tier 1 members: You are eligible to buy back full or
All other Tiers: You can buy back full or
All Tiers: You are not eligible to buy back time you worked for a private company, for the federal government, or for any government office outside of New York State.
Will the previous service I buy back make me eligible to retire sooner?
Generally, yes. In most plans, you are able to retire sooner when you buy back previous service. There are a couple of exceptions, however. Some plans don't allow all the types of previous service to count as qualifying time - such as in the Tier 1 and 2 Career Pension Plan (Plans A and C). In some Special Programs, such as the Transit 55/25 Program, the service cannot be used at all. If you are unsure of the rules under your plan, contact NYCERS before you apply to purchase any previous service.
Does it pay for me to buy back previous service?
Generally, yes. Since most of NYCERS' retirement benefits are calculated based on your years of service, the additional years - under most plans - will increase your benefit. There are a couple of exceptions:
•Some plans have a cap on the maximum number of years that can be included in your benefit calculation.
•Some plans have stricter requirements for the types of service that can be used in your benefit calculation.
If you are unsure of the rules under your plan, contact NYCERS before you apply to purchase any previous service.
How much does it cost to buy back previous service?
The easiest way to estimate the cost of your buy back is by using our online interactive calculator. All you have to do is activate your MY NYCERS account on our website (www.nycers.org). The Buy Back Calculator enables you to obtain an estimated cost to purchase previous service based on information taken from your account, as well as information you wish to include. You can try various dates, salary amounts, and other situations, to see how these amounts affect your estimate. Or you can get an estimate through the NYCERS' Call Center. Remember these are only estimates. The true cost of purchasing previous service can only be received after you actually fill out an application.
Tier 1 and 2: The cost is based on your current earnings. You will pay double your full normal deduction for the same period being claimed. For example, if you are buying back six months of service, you will have double deductions taken from your current salary for a
Tier 3 and 4: The cost is based on the wages you earned during the period claimed, multiplied by your contribution rate(s), plus interest from the date of such service to the date full payment is made at the rate of 5% compounded annually. So, the sooner you apply and pay for your previous service, the less interest you will have to pay.
Tier 6
Tier 6 Basic and Special Plan Members: The cost is 6% of the wages earned during the period you are buying back, plus 5% interest compounded annually from the date of such service to the date full payment is made.
R04/26/12
Form Characteristics
| Fact Name | Details |
|---|---|
| Form Purpose | The NYCERS F241 form is used to apply for the purchase of credit for service rendered before becoming a member of NYCERS. |
| Application Methods | Applicants can submit the form by mail or apply online through a MY NYCERS account, which requires a registered PIN. |
| Verification Requirements | NYCERS must verify salary and service history for the period being purchased. Adequate pay records are typically available, but additional information may be required from the applicant or their previous agency. |
| Documentation Needed | To verify earnings, applicants must provide W-2s, Social Security earnings reports, or payroll printouts. For service verification, a roster card or employment history from the employer is necessary. |
| Processing Timeline | NYCERS cannot process the application until all required information is received from the applicant or their agency. |
| Eligibility for Purchase | Tier 1 members can buy back New York City service, while other tiers can purchase public service rendered within New York State prior to NYCERS membership. |
| Impact on Retirement | Generally, purchasing previous service allows members to retire sooner, although some plans may have exceptions regarding qualifying service. |
| Cost Estimation | The cost to buy back service can be estimated using an online calculator available on the NYCERS website or by contacting the Call Center. |
| Cost Structure | Costs vary by tier. For example, Tier 1 and 2 members pay double their normal deductions, while Tier 3 and 4 members pay based on wages and interest rates. |
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