An April 2024 State law temporarily excluded overtime pay earned from April 1, 2022 through March 31, 2024 from the calculation of Tier 6 contribution rates, lowering rates for some members.
How the Law Impacts Tier 6 Contribution Rates
As a Tier 6 member, the percentage you contribute to NYSLRS is set at the beginning of each State fiscal year on April 1. The minimum contribution rate is 3 percent, and the maximum is 6 percent.
For most members, your rate is calculated based on what you earned two State fiscal years prior, including regular pay, holiday pay, longevity pay—and normally, overtime pay. However, the April 2024 law temporarily excluded overtime pay from the calculation of contribution rates, lowering rates for some members.
| If you made mandatory contributions toward your retirement and earned overtime pay during the following state fiscal year: | Then, the law may impact your contribution rate for the following state fiscal year: |
|---|---|
| April 1, 2022–March 31, 2023 | April 1, 2024–March 31, 2025 |
| April 1, 2023–March 31, 2024 | April 1, 2025–March 31, 2026 |
The law does not impact your contribution rate 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.*
*As a new NYSLRS member, your rate is based on a projected annualized wage provided by your employer, rather than your actual earnings. For more information about how your contribution rate is calculated, read our blog post, How Your Tier 6 Contribution Rate Can Change, or visit our Member Contributions page.
Contribution Rate Changes and Refunds for Overpayments
We reviewed earnings information from employers, removed overtime pay earned from April 1, 2022 through March 31, 2023, and recalculated contribution rates.
If your contribution rate for the previous State fiscal year (April 1, 2024–March 31, 2025) was lowered, we notified your employer and sent you a letter with information about your new rate and possible refund.
If you overpaid member contributions and are due a refund, we sent you another letter notifying you of the amount.
- If you are employed by the State, your refund was processed automatically through State Payroll and included in either your 10/29/2025 or 11/05/2025 NYS paycheck.
- If you work for a local employer (city, town, village, county, school, etc.), we credited the amount to your employer, and they will issue your refund to you, which can take up to 8 weeks from the date of the letter you received.
(Note: If you are not due a refund, you will not receive another letter from NYSLRS.)
We also excluded overtime pay from earnings for April 1, 2023 through March 31, 2024 when we calculated contribution rates for the current State fiscal year (April 1, 2025–March 31, 2026). In March, we notified your employer and directed them to use this rate beginning April 1. Therefore, we will not need to recalculate rates or issue refunds again, and there is no action required on your part.