The UFT is launching a Fix Tier 6 campaign in an effort to improve the pension benefits for its more than 50,000 members who have joined the New York City pension system since April 2012.

Unlike Tier 4 members, these newer members cannot retire with an unreduced pension at age 55 with 30 years of service. They must work another eight years. Their final average salary calculation, which determines the size of their pension, uses the last five years of employment, rather than the last three years used for Tier 4.

Pension contributions are another area where the two tiers diverge. Many Tier 4 members, both retired and in-service veterans, only contributed 3% of their salary for 10 years. But Tier 6 educators must contribute for their entire career, with teachers typically contributing 4.5% to 6% of their salary.

“Now more than ever, as we face staffing shortages, we must fix Tier 6 so our newest members are treated fairly and equitably, and we can recruit and keep talented new educators,” UFT President Michael Mulgrew said.

Pension benefits are determined by the state Legislature; they are not a subject of collective bargaining. The UFT, working closely with its state affiliate NYSUT, is lobbying Albany lawmakers and Gov. Kathy Hochul to make improvements to Tier 6 to bring it in line with Tier 4. The legislative session begins in January.

Mulgrew cautioned that fixing Tier 6 would not be quick or easy. Pension reform typically happens piecemeal, with different legislative changes over time adding up to significant improvements.

Mulgrew, a member of the original Tier 4, said that tier was initially “terrible,” and it took 18 years to fix aspects of it. It was only in 2000 that elected officials in Albany changed Tier 4 member contributions from career-long to 10 years going forward.

Subsequently, those Tier 4 members who opted into the voluntary 55/25 program in 2008 contributed 4.85% in their first 10 years on the job and contribute 1.85% until their 25th year. Mid-generation Tier 4 members contribute 4.85% for the first 10 years and 1.85% until 27 years of service, while late-generation Tier 4 educators contribute 4.85% for 10 years and 1.85% each year for the remainder of their career.

At the union’s New Retiree Luncheon and the Retired Teachers Chapter meeting in November, Mulgrew appealed to union retirees to help their in-service counterparts. He reminded the retirees that union members before them fought for changes to improve benefits and conditions for Tier 4 members, and they should, in turn, help to set things right for future educators.

“Just as Tier 1 members helped fix Tier 4, Tier 4 members are going to help Tier 6 because that’s what we do for each other,” he said.

The UFT and NYSUT successfully lobbied the state Legislature and the governor in 2022 to reduce the vesting period for late-generation Tier 4 members and all of Tier 6 members from 10 years to five years, guaranteeing a pension for Tier 6 members with at least five years of service.

But there is a lot more work to do to create fairness for Tier 6 educators, Mulgrew said.

Retirement at age 63 means many Tier 6 members have to work for more than 40 years in “the most challenging school district in the country,” he said.

In public service, 30 years is a career, and Tier 6 educators deserve the “dignity of a secure retirement” after that length of service, NYSUT President Melinda Person said.

“Fixing Tier 6 is about professional dignity for our newest members, and it’s about solidarity and fairness,” she said. “We’re going to get this done — no matter how long it takes — because what affects one NYSUT member affects us all.”