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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.

Vested: Qualifying for a Retirement Benefit

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Becoming vested is a crucial milestone for NYSLRS members. It means you have earned enough service to qualify for a retirement benefit once you meet the age or service requirements established by your retirement plan. Vesting is automatic — you don’t have to fill out any paperwork to become vested.

Vested: Qualifying for a Retirement Benefit

Years of Service Credit to Become Vested

NYSLRS members in Tiers 2 – 6 need five years of service credit to be vested.  

If you work part-time, or if you have an unpaid leave of absence, it will take longer to become vested. For example, if you work half-time, you earn six months of credit toward vesting for each year on the job.

Sign in to your Retirement Online account to check your total estimated service credit and whether you are vested.

If you work for a school district, read our How School Employees Earn NYSLRS Service Credit blog post for information about how your service credit is determined. 

Note: Previously, Tier 5 and 6 members needed ten years of service to be eligible for a service retirement benefit. However, as of April 9, 2022, these members only need five years of service credit to be vested. The new law did not change benefit rules such as how long members must contribute, pension benefit calculations, the full retirement age, reductions to retire early or the cost to purchase previous service.

Applying for Retirement

Vesting is automatic, but you will need to apply for retirement to receive your pension — NYSLRS will not pay out your pension benefit unless you apply for it.

Pension eligibility requirements and benefit calculations depend on your tier and retirement plan. To find your tier and retirement plan, sign in to your Retirement Online account and go to the ‘My Account Summary’ section. Once you know your tier and retirement plan, you can find your retirement plan publication for comprehensive information about your benefits and filing instructions.

And when you’re ready, you can apply for a service retirement benefit quickly and easily using Retirement Online.

If you leave public employment, read about the age requirements for filing for a vested retirement benefit as well as other important information that you should know about your NYSLRS membership and benefits.