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.
As a NYSLRS member, you have a defined benefit plan that provides a lifetime pension when you retire. Your NYSLRS pension benefit amount will be determined by several factors, including your tier, service credit, and final average earnings (FAE).
When we calculate your pension, we find the consecutive years when your earnings were highest. These are usually your years of employment immediately before retirement, but they can be anytime in your career and do not need to match up with calendar years or fiscal years.
Update: Tier 6 Final Average Earnings Based on Highest Three Years
A new law improves the pension benefits of NYSLRS Tier 6 members. When you retire, your FAE will be based on the average of your three highest consecutive years of earnings, the same as members in other tiers.
These improvements apply to members who retire on or after:
April 1, 2024, for Police and Fire Retirement System (PFRS) Tier 6.
April 20, 2024, for Employees’ Retirement System (ERS) Tier 6.
Previously, your FAE was the average of your highest five consecutive years of earnings.
If you recently retired and the change applies to you, we have updated your pension calculation — you don’t need to contact us. The new law does not apply to members who retired before the dates above.
Understanding Final Average Earnings Limits
If your earnings increase significantly through the years used in your FAE, some of those earnings may not be used toward your pension.
Your limit depends on whether you’re an ERS or PFRS member and your tier. For most members, if the earnings in any 12-month period in your FAE exceed the average of the previous two years by more than 10 percent, the amount above 10 percent will not be included in your FAE calculation.
The specific types of earnings included in your FAE calculation depend on your retirement plan and tier. Please check your plan publication for details.
In most cases, your FAE will include the payments listed below, if they are earned in the FAE period. (In some cases, restrictions may apply.)
Your 2024 Member Annual Statement is a snapshot of your NYSLRS account as of March 31, the end of the State Fiscal Year. Statements are now available in Retirement Online.
Members who opted to go paperless already received an email notifying them their Statement is available in their Retirement Online account. If you did not change your delivery preference to email, your Statement will be mailed to you by the end of June.
Click the “View My Member Annual Statement” button.
Follow the prompts.
Review your Statement carefully to make sure it’s correct.
You can use Retirement Online to:
Update your contact information.
Change your last name.
Manage your beneficiaries and update their contact information.
Visit our Member Annual Statement page if you have questions or need to correct other information in your Statement, such as the earnings reported to us by your employer or your date of birth.
Next Year Don’t Wait for the Mail
Your Statement becomes available online in early May each year. Get yours faster and help us ‘go green’ — update your delivery preference now to receive an email as soon as next year’s Member Annual Statement is available online, instead of waiting to receive it in the mail.
Estimate Your Pension Benefit. Your Statement may include one or more projections of your monthly retirement benefit. In Retirement Online, most members can create customized benefit estimates and calculate their pension payment options and enter different retirement dates and beneficiaries to see how your choices affect your potential benefit.
Review Employment History and Service Credit. You can view your recent employment history, reported earnings for the past five years and current total estimated service credit in Retirement Online. If you think you may be eligible for past service that’s not included in your employment history, you can request to purchase that service credit. Make sure to buy past service credit as soon as possible.
Manage Loan Balances or Apply for a Loan. Check Retirement Online for your current loan balance on any existing loans and manage your loan payments. It’s also the fastest and easiest way to apply for a loan with NYSLRS. You can see how much you are eligible to borrow, what the repayment amount would be and if your loan will be taxable.
This Public Service Recognition Week, we proudly celebrate more than 695,000 members and 470,000 retirees of the New York State and Local Retirement System (NYSLRS) for their service to the people of New York State.
A Brief History of Public Service Recognition Week
This week was created in 1985 to honor those who serve our nation as federal, state, county and local government employees.
Congress officially designated the first full week of May as Public Service Recognition Week. This year, it is being celebrated May 5 through 11.
NYSLRS Members Deliver Critical Services
From the smallest village to our biggest cities, New York public employees like you provide the essential services that improve our quality of life. You work for employers such as:
New York State
Couties, Towns and Villages
School Districts
Correctional Facilities
Public Libraries
Fire and Water Districts
Whether they are protecting public health and safety, driving our children to school or clearing snow from the roads, NYSLRS members deliver the critical services New Yorkers depend on. Many NYSLRS members and retirees also give back to our state by volunteering in their communities or supporting charitable causes.
Comptroller DiNapoli’s Faith in Public Service
New York State Comptroller Thomas P. DiNapoli is the administrator of NYSLRS and trustee of the Common Retirement Fund. His public service career began at 18 years old, when he won his first election to become a trustee on the Mineola Board of Education. That made him the youngest person in New York State history to be elected to public office. He is also the second longest-serving comptroller in New York State history.
Comptroller DiNapoli is understandably proud about the career path he has chosen, and he often speaks about the contributions that New York’s public employees make to their communities and their State. He encourages young people to consider a career in public service. “It’s more than a job,” he says. “It’s a career with purpose.”
Here is an important retirement planning tip — most members can create their own pension estimate in minutes using Retirement Online. Your estimate will be based on the most up-to-date account information we have on file for you. You can enter different retirement dates to see how those choices would affect your benefit. When you’re done, you can print your pension estimate or save it for future reference.
Remember, the pension amounts you’ll see are just an estimate; it is not a guarantee of what you’ll receive when you retire.
Most Tier 2 through 6 members (more than 90 percent of all NYSLRS members) can use the Retirement Online pension calculator. However, some members may not be able to because of their circumstances — for example, members who recently transferred to NYSLRS, some PFRS members, or Tier 6 members with between five and ten years of service. The system will notify you if your estimate cannot be completed using the Retirement Online pension calculator. Please contact us to request a pension estimate if you receive this notification.
Tier 5 and 6 members are subject to limits on the amount of overtime that can be included in their pension. You can earn overtime pay beyond the overtime limit, but it won’t be factored into your pension calculation. And you don’t pay member contributions on overtime pay that is above the limit.
Tier 5 Overtime Limits
The overtime limit for Tier 5 Employees’ Retirement System (ERS) members increases each calendar year by 3 percent. In 2024, the limit for Tier 5 ERS members is $22,688.85.
For Tier 5 Police and Fire Retirement System (PFRS) members, the overtime limit is 15 percent of your regular earnings each calendar year.
The overtime limit for Tier 6 ERS members increases each calendar year based on the annual increase of the Consumer Price Index (CPI). In 2024, the limit for Tier 6 ERS members is $20,459.
For Tier 6 PFRS members, the overtime limit is 15 percent of your regular earnings each calendar year.
Your NYSLRS pension will be based on your service credit and final average earnings (FAE). Your FAE is the average annual earnings you receive during the period when your earnings are highest (36 consecutive months for Tier 5 and 60 consecutive months for Tier 6). Your FAE will include overtime pay you earned up to each annual limit.
Your FAE may be limited in other ways. For example, for most members, if your earnings increase significantly in the years used for your FAE, some of those earnings might not count toward your pension. The specific limits depend on your tier. Visit our Final Average Earnings page for more information about this limit.
Your retirement plan publication provides specific information about the earnings that will be used to calculate your pension. Visit our website to Find Your NYSLRS Retirement Plan Publication.
Estimate Your Pension in Retirement Online
Most members can create their own pension estimate in minutes using Retirement Online. You can enter different retirement dates to see how those choices would affect your benefit. Sign in to Retirement Online and click the “Estimate my Pension Benefit” button to try it.
Planning on taking out a NYSLRS loan? Applying through Retirement Online is fast and convenient.
Eligibility for a NYSLRS loan is based on your tier. Generally, you’ll need to be on the payroll of a participating employer, have at least one year of service and have sufficient contributions in your account. (Note: Retirees are not eligible for NYSLRS loans.)
Retirement Online is the Fastest Way to Apply
When you use Retirement Online, NYSLRS receives your application immediately and can process your loan more quickly. It’s also an easy way to check the amount you are eligible to borrow, your balance on any outstanding loans, and more.
In the ‘I want to…’ section, click the “Apply for a Loan” button.
Follow the prompts.
As you work your way through the online application, you’ll see:
How much you are eligible to borrow;
The minimum repayment amount;
The expected payoff date; and
How much you can borrow without tax implications.
If you apply for a loan and you already have an existing loan (or loans), you’ll choose one of two options:
Multiple loans: With multiple loans, you are taking a new loan, and each of your outstanding loans has a separate five-year due date and minimum payment. The minimum payments for each of your loans are added together for one total minimum payment. This combined minimum payment amount is higher than the minimum would be if you choose a refinanced loan, but with multiple loans, as each loan is paid off, your total minimum payment goes down.
Refinance your existing loan: Refinancing your loan adds your new loan amount to your existing balance and consolidates the entire amount as one loan instead of taking separate loans. Minimum payment amounts for refinanced loans are lower than the minimum for multiple loans because when you refinance, we combine your existing loan balance with your new loan and spread out the repayment over a new five-year term. However, this increases the portion of your loan that may be considered a taxable distribution, and federal withholding can significantly reduce the loan amount that you receive.
There is a service charge of $45 that will be deducted from your loan check when it is issued. The current interest rate is 5 percent. The interest rate will remain fixed for the term of your loan.
If your case status says “Closed” before close of business on Wednesday, your check will be in the mail that Friday.
You will also receive a confirmation letter when your loan case has been completed. You can find it in your Retirement Online account under “View Documents.”
Repaying Your NYSLRS Loan
Loan payments are deducted from your paycheck. If you choose to repay the minimum amount, your payroll deduction may be increased periodically to ensure your loan will be repaid within the required five-year repayment term. You can increase your payroll deduction amount, make additional payments or pay your loan in full at any time with no prepayment penalties. Retirement Online is the easiest way to manage your loan payments. Sign in to your account and select “Manage my Loans.”
Retiring With an Outstanding NYSLRS Loan
If you retire with an outstanding loan, your pension will be reduced. You will also need to report at least a portion of the loan balance as ordinary income (subject to federal income tax) to the IRS. If you retire before age 59½, the IRS may charge an additional 10 percent penalty. If you are nearing retirement, be sure to check your loan balance. If you are not on track to repay your loan before you retire, you can increase your loan payments, make additional lump sum payments or both in Retirement Online.
Note: Employees’ Retirement System (ERS) members may repay their loan after retiring, but they must pay the full amount (that is, the amount that was due on their retirement date) in a single lump-sum payment. Once you do, your pension benefit will increase from that point on, but it will not be adjusted retroactively back to your date of retirement.
Visit Our Website for More Information
For more information about NYSLRS loans, including what happens if you go off payroll or default on your loan, visit our Loans page. Need help with Retirement Online? See our Tools and Tips blog post.
Most NYSLRS members contribute a percentage of their earnings to help fund pension benefits. For Tier 6 members (those who joined NYSLRS on or after April 1, 2012), that percentage, or contribution rate, can change from year to year based on your earnings. The minimum rate is 3 percent of your earnings, and the maximum is 6 percent.
Overtime Pay Temporarily Excluded from Tier 6 Contribution Rates
The 2024–25 State budget included a new law which temporarily excludes overtime pay 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.
A Tier 6 member’s contribution rate is calculated annually. New rates become effective on April 1, the beginning of the state’s fiscal year. Once your rate is determined for a given fiscal year, it doesn’t change for the rest of that fiscal year. We provide rates to your employer in March, a few weeks before they need to apply any rate changes.
How Your Tier 6 Contribution Rate is Calculated
If you are a new NYSLRS member, during your first three years of membership your contribution rate is based on an estimated annual wage that your employer provided when you were enrolled as a new member.
If you have been a member for three or more years, NYSLRS calculates your rate using the earnings reported to us by your employer from the last completed fiscal year, April 1, 2022 through March 31, 2023.
Rates are calculated using your base pay, which includes:
This video will help explain how your contribution rate is determined:
How Your NYSLRS Pension Works
The amount you contribute to the Retirement System does not affect the amount of your pension. A NYSLRS pension is a defined-benefit plan. Under this type of plan, once you are eligible for a pension and apply for retirement, you will receive a monthly payment for the rest of your life. The amount of your pension will be calculated using a formula based on your retirement plan, years of service and final average earnings.
You can learn more about how your pension will be calculated by reading your retirement plan publication. Use our Find Your NYSLRS Retirement Plan Publication tool to find yours.
Member Annual Statements are distributed to NYSLRS members each spring. Don’t wait for a mailed copy — get your Statement online instead! You can update your delivery preference in Retirement Online to receive an email when your Statement is available.
From your Account Homepage, click “update” next to ‘Member Annual Statement by.’
Choose “Email” from the dropdown.
Check and Update Your Contact Information
Retirement Online is the fastest way to check your contact information and update it if needed. If you don’t already have an email address on file, please provide it so that we can contact you quickly if we need to notify you about important information such as a change to your benefits. Use a personal email address you will have access to before and after you retire, rather than a work email address. You should also make sure your mailing address and phone number are current.
To update your contact information, click “update” next to your email address, mailing address or phone number to make corrections.
Use Retirement Online to Stay Informed
Your annual Statement is a snapshot of your NYSLRS account as of March 31. For the most up-to-date information year-round, sign in to your Retirement Online account.
In Retirement Online, you can view your date of membership, tier, retirement plan, estimated total service credit and more. Check out what else members can do in Retirement Online.
When it comes to managing your NYSLRS account, Retirement Online is the fastest way to do it. Skip printing forms, having them notarized and sending them through the mail — when you submit your requests online, NYSLRS has them immediately and your changes will be completed more quickly. It’s convenient, and it’s secure.
Here’s a look at some of the things NYSLRS members (not yet retired) can do online.
View Your Account Information
Sign in to Retirement Online for easy access to key information to help you plan for retirement. On your Account Homepage, you can find your date of membership, tier, retirement plan (which you can use to find your retirement plan publication), estimated total service credit and more.
Change Your Delivery Preference to Email and Help Us ‘Go Green’
Save time and reduce paper waste — help us ‘go green’ by choosing the paperless option. When you choose to receive information from NYSLRS electronically, we will send you an email when important documents and letters are ready to view in Retirement Online.
From your Account Homepage, click the “update” link next to ‘Contact by’ or ‘Member Annual Statement by.’
Choose “Email” from the dropdown menu.
If you choose “Email” as your delivery preference, you will not receive a printed copy in the mail.
Update Your Contact Information
It’s important that we have your current contact information so you receive the news, letters and statements that we send you. You can update your email address, mailing address and phone number in the ‘My Profile Information’ section of your Account Homepage. Just click “update” next to the item you’d like to change. Use a personal email address that you will have access to before and after you retire, rather than a work email address.
View and Update Your Beneficiary
NYSLRS retirement plans provide death benefits for beneficiaries of eligible members who die before retiring. It’s a good idea to review your beneficiaries from time to time to make sure your choices reflect your current wishes. Retirement Online is the fastest way to add or remove beneficiaries or update their contact information. Click the “View and Update My Beneficiaries” button to get started.
Estimate Your Pension
How much will your pension be? It’s an important question as you’re planning for retirement. In just a few steps, most members can estimate their retirement benefit based on up-to-date account information, then save or print the estimate. Entering different dates and comparing the results can help you choose the retirement date that’s right for you. From your Account Homepage, click the “Estimate my Pension Benefit” button.
Apply for a Loan and Manage Loan Payments
It’s easy to apply for a loan in Retirement Online. If you are eligible to take a loan against your retirement contributions, you can see how much you can borrow, your repayment options and whether your loan will be taxable — all before you apply. Click the “Apply for a Loan” button to start an application.
If you have an existing loan, you can click the “Manage My Loans” button to adjust your payment amount or to make an additional one-time payment.
Request Credit for Previous Service
If you worked for a participating public employer before joining NYSLRS, or if you served in the U.S. Armed Forces, you may be able to purchase service credit for that time. Click the “Manage My Service Credit Purchases” button to request credit and upload any supporting documentation.
Purchase previous service credit as soon as possible. It’s cheaper and will make it easier to calculate your final monthly pension payment.
Get Your Member Annual Statement Faster
Your Member Annual Statement can help you understand your benefits. It’s a snapshot of your NYSLRS account based on the information we have on file for you as of March 31 each year, the close of our fiscal year. Statements are available online each spring, sooner than printed copies are mailed — update your delivery preference to “Email” to get notified when it’s available online.
Generate a Mortgage Verification Letter
If you need to provide proof of your NYSLRS account information for a mortgage, you can get your own income verification letter online. From your Account Homepage, in the ‘I want to…’ section at the top right, click the “Generate Income Verification Letter” link. You can print a document that shows your contribution balance, and — if you have an outstanding loan — the date of your last loan, the current balance and the interest rate.
Apply for Retirement
When you are ready to retire, Retirement Online allows you to skip the hassle of mailing paper forms or visiting our office. You can apply for a service retirement benefit, choose your pension payment option, sign up for direct deposit and submit retirement-related paperwork online. A big advantage of applying online is that you don’t have to get anything notarized. Read our blog post about applying for retirement for more information and links to resources.
Other Online Transactions
If you previously were a member of another New York State public retirement system before joining NYSLRS, your service could be recredited and your date of membership and tier restored. You can click the “Reinstate a Previous Membership” button to get started.
If you leave public employment with less than ten years of service credit, you can use Retirement Online to withdraw your membership. However, this will terminate your membership with NYSLRS. If you have any questions, speak with a customer service representative before you submit your withdrawal application. You can message them using our secure contact form.
