MTA Tier 4 vs Tier 6 Pension: Key Differences Every Employee Must Know
Your hire date determines your tier — and your tier shapes your entire retirement. Here's a clear, side-by-side comparison of MTA Tier 4 and Tier 6.
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| Feature | Tier 4 | Tier 6 |
|---|---|---|
| Hire Date | Before April 1, 2012 | On or after April 1, 2012 |
| Final Average Salary | Highest 3 years | Highest 5 years |
| Full Retirement Age | 62 (or 55 with 30 yrs) | 63 |
| Benefit Multiplier | 2% per year | 1.67% first 20 yrs, then 2% |
| Employee Contributions | First 10 years only | Entire career (3%–6%) |
| Vesting | 10 years | 10 years |
- 3-year FAS produces a higher salary average
- Earlier full retirement age (62)
- Contributions end after 10 years
- Flat 2% multiplier from year one
- 5-year FAS lowers the salary average
- Higher full retirement age (63)
- Lifelong employee contributions
- Reduced 1.67% multiplier for first 20 years
Frequently Asked Questions
Tier 4 generally offers more generous benefits: a 3-year FAS, a full retirement age of 62, and contributions only for the first 10 years. Tier 6 uses a 5-year FAS, a full retirement age of 63, ongoing contributions for your entire career, and a lower multiplier for early years.
Employees hired before April 1, 2012 are typically in Tier 4. Those hired on or after April 1, 2012 are in Tier 6. Your exact tier is based on your pension system membership date.
For most employees, Tier 4 provides higher benefits and lower lifetime contributions. However, your tier is set by your hire date and generally cannot be changed.
Both Tier 4 and Tier 6 now require 10 years of creditable service to vest, following a 2018 change that reduced the Tier 6 vesting requirement from 10 years.
Related Guides
Estimate your benefits under the Tier 6 formula.
Learn MoreThe full breakdown of the formula, eligibility, and vesting.
Learn MoreLearn when you can retire with full benefits in each tier.
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