The 2024–25 State Budget included a new law which temporarily excludes overtime pay earned from April 1, 2022 through March 31, 2024 from the calculation of Tier 6 contribution rates. This may lower contribution rates for some Tier 6 members from April 1, 2024 through March 31, 2026.
For most Tier 6 members with more than three years of service, your contribution rate is based on what you actually earned in public employment two years prior. The minimum rate is 3 percent of your earnings, and the maximum is 6 percent. For more information about how your contribution rate is determined, read our blog post, How Your Tier 6 Contribution Rate Can Change, or visit our Member Contributions page.
Who is Affected by the Change to Tier 6 Contribution Rates?
As a Tier 6 member, you may have your contribution rate lowered if:
- You make mandatory contributions toward your retirement (most Tier 6 members); and
- You earned overtime from April 1, 2022 through March 31, 2024.
The rate decrease will not apply if:
- You already pay the minimum rate of 3 percent;
- You did not earn overtime from April 1, 2022 to March 31, 2024; or
- You joined NYSLRS on or after April 1, 2022. Your rate is based on an estimated wage provided by your employer when you were enrolled into NYSLRS rather than your actual earnings.
When Will Tier 6 Contribution Rates Be Updated?
We will work with employers to review your past earnings, determine whether your rate should be lowered and refund contribution overpayments if your rate is lowered.
Tier 6 is now the largest tier in NYSLRS. With more than 400,000 Tier 6 members, it will take several months to collect detailed earnings information from employers and change rates. We thank you for your patience while we make these rate adjustments.