In the New York State and Local Retirement System (NYSLRS), Tier 6 members make contributions based on their earnings. This means your contribution rate could change from year to year depending on how much you earned in previous years. As of April 1, 2015, there are two ways we determine the contribution rates of Tier 6 members.
For your first three years of membership, we base your contribution rate on an estimated annual wage we receive from your employer. After three years, we start using the record of your past earnings to determine your contribution rate. We call this the two-year look back.
During the two-year look back, we look back at your earnings from two years before and use that amount to determine your contribution rate for the current year. Watch the video below for more information. If you have questions about Tier 6 contributions, please contact us.
As a Tier 6 member, the contributions you make toward retirement are based on your earnings. This means your contribution rate could change from year to year depending on how much you earned in previous years.
If you’re a Tier 6 member with three or more years of membership in NYSLRS, we determine your contribution rate using a method called the two-year look back.
This means we look back at your earnings from two years before. We use those earnings to determine your contribution rate for the current year starting April first.
So, we look back to what you earned from April first to March thirty-first two years ago, and use those earnings to determine your contribution rate. This will be your contribution rate for the entire year until next April first, when we’ll do the look-back again to determine your new rate.
Remember, as a Tier 6 member, your contribution rate could change each year depending on your earnings. You may not see a change right away, but over time, you could wind up contributing more or less than you did before.
If you have any questions about Tier 6 contribution rates or your benefits, visit our website or contact us. Thanks for watching.