The formula used to calculate your NYSLRS pension varies by tier and plan, but your credited service and final average salary (FAS) are the main factors. You earn service credit for paid service with participating employers, and you also may claim it for some previous public service. Your FAS is the average wage you earned during the time period when your earnings were highest (36 consecutive months for Tier 5 and 60 consecutive months for Tier 6).
Your FAS can include overtime pay that you earned during that period. However, for Tier 5 and 6 members, there are limits to how much overtime can be used to calculate your pension.
While you can earn overtime beyond the limit, anything over it will not count toward your FAS or your retirement benefit. Members and employers aren’t required to make contributions on overtime pay that is above the limit, and your employer shouldn’t report it to us.
Tier 5 Overtime Limits
The overtime limit for Tier 5 Employees’ Retirement System (ERS) members increases each calendar year by 3 percent. This year, the limit for Tier 5 ERS members is $19,001.55. For 2019, it will be $19,571.60.
For Tier 5 Police and Fire Retirement System (PFRS) members, the overtime limit is 15 percent of your regular earnings each calendar year.
Tier 6 Overtime Limits
The overtime limit for Tier 6 ERS members increases each calendar year based on the annual increase of the Consumer Price Index (CPI). For 2018, the limit is $16,406.
For Tier 6 PFRS members, the overtime limit is 15 percent of your regular earnings each calendar year.
Find more information about the overtime limit, FAS and retirement calculations in your retirement plan booklet, available on our Publications page.