Wow! Check your ITHP

Recently, a pre-retiree came in for a retirement consulting session.  While reviewing his NYCPPF Pension Statement it was determined that he was not doing the ITHP even though his pension statement indicated he was.  The NYCPPF failed to take the ITHP from this individual’s paycheck even though he had submitted the necessary paperwork a couple of years prior.  Unbelievable.  Unknown if this is an isolated incident or this is happening to other members.

How to verify if you are actually doing ITHP (NYCPPF Tier 2 members)

1. Go to pg 7 of your annual NYCPPF statement.
2. Find your “Required Contribution Rate”.
3. Obtain a recent paystub.
4. Find your “Total Earnings” amount for the pay period.
5. On the bottom of the paystub find your pension contribution amount (disregard the 50% contributions if you are doing that).
6. Divide the pension contribution amount by the total earnings for the pay period.
7. The result should exactly match your required contribution rate.  If the percentages match you are doing ITHP.