State Teacher Plans for New York

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 219 district 403(b) plans that we have graded so far in New York, 1 district has an A rating, 0 districts have a B rating, 160 districts have a C rating, 19 districts have a D rating, and 39 districts have an F rating.

If you are a teacher in New York State, here are the state teacher plan options that are available to you.

New York State NYSTRS

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the New York State NYSTRS plan is available directly from the pension website, and Karl Fisch's book on the New York State pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

New York State teachers also pay into Social Security

Administrative Fee for Supplemental Plans

$20 + 0.03% for 457 for some

New Teachers Hired On or After 1/1/2024

Defined Benefit

Employee3% for less than $45k
3.5% for $45k–$55k
4.5% for $55k–$75k
5.75% for $75k–$100k
6% for more than $100kEmployer10.11%

Multiplier

1-2/3% for less than 20 years
1.75% for 20 years
35% + 2% for greater than 20 years

Average Salary

Highest 3 consecutive years

Normal Retirement

Any age with 30 years of service
Age 60 with 25 years of service
Age 65 with 5 years of service

Cost-of-Living Adjustment (COLA)

Determined yearly by General Assembly

Veteran Teachers Hired Prior to 1/1/2001

There is one additional benefit tier between the new teacher and veteran teacher tiers compared here. The exact transition dates between these tiers are not relevant to this comparison.

Defined Benefit

Employee: 3% (first 10 years only); Employer: 10.11%

Multiplier

1.82%

Average Salary

Highest 48 consecutive months

Normal Retirement

Any age with 30 years of service
Age 60 with 25 years of service
Age 65 with 5 years of service

Cost-of-Living Adjustment (COLA)

Determined yearly by General Assembly

If you are a teacher in New York City, here are the state teacher plan options that are available to you.

New York 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green New York State Deferred Comp

New York teachers are eligible to contribute to this plan.

Fees

0.03% admin fee, $20 account fee, and a low index fee

Record Keeper

Nationwide

Target Date Fund

T. Rowe Price

NOTE: Admin fee is only applied on balances above $20,000 and stops at $200,000.

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