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Overtime Pay Temporarily Excluded from Tier 6 Contribution Rates

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A new law 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.

Overtime Pay Temporarily Excluded from Tier 6 Contribution Rates

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?

Contribution Rates for April 1, 2024 through March 31, 2025

If we had detailed information on file from your employer, we reviewed your earnings for April 1, 2022 through March 31, 2023 and recalculated your contribution rate for April 1, 2024 to March 31, 2025. If your contribution rate was lowered, we notified your employer and directed them to use the updated rate moving forward through the end of the current state fiscal year, March 31, 2025. We also sent you a letter notifying you of the change.

If we did not have detailed information on file, we requested a breakdown of your earnings from your employer. We are currently in the process of reviewing the information we received and all contribution rates for the current fiscal year will be recalculated by mid-March. If your contribution rate is lowered, we will send you a letter notifying you of the change.

If you overpaid your contributions during this state fiscal year, you may be due a refund.

  • If you are due a refund, we will send you another letter notifying you of the amount.
    Your employer will then issue the refund to you. No action is required on your part.
  • If you are not due a refund, you will not receive another letter from NYSLRS.

Contribution Rates for April 1, 2025 through March 31, 2026

When reviewing your earnings for April 1, 2023 through March 31, 2024 to calculate your contribution rate for April 1, 2025 to March 31, 2026, we will exclude overtime pay from the calculation of your contribution rate. Therefore, we will not need to recalculate rates or issue refunds again, and there is no action required on your part.