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.
For more information, including limits for other tiers, visit our Final Average Earnings page.
Types of Earnings Included in Your FAE
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.)
- Regular earnings (see earnings limit for Tier 6);
- Overtime earned in the FAE period (see overtime limits for Tier 5 and overtime limits for Tier 6);
- Compensatory overtime;
- Holiday pay; and
- Longevity payments (maximum of one per FAE year), if earned in the years used in the FAE calculation.
In most cases, the following payments will not be included in your FAE calculation:
- Unused sick leave;
- Payments made as a result of working your vacation;
- Any form of termination pay;
- Payments made in anticipation of retirement; and
- Any payments made for time not worked.
Hello-
I’ve been retired 2.9 years. The Final Average Salary calculation for me has not yet happened. I’ve seen the standard response (paraphrasing here) “we are working through these and appreciate your patience”…that’s not really an acceptable response.
If I owed NYS taxes, would I be allowed to say “I’m working on it and appreciate your patience” without getting fined, charged interest, etc. we are waiting for lengthy periods of time and then with no interest while you’ve retained and used our money for other things. It’s like the NYS retirees are giving the state no-interest loans for several years.
What can be done about this?
I am waiting 2 years and 5 months also. I was told A)If I die my spouse will be moved to top of list and B) it’s a minimal amount so don’t worry about it!!
Hello, two years back my pension transferred from NYCERS to NYSLRS. So far i have 18 years of service. When i compared NYSLRS vs NICERS for 20 years’ service
NYSLRS is calculating with 3.5 % whereas NICERS is @ 4 %. Most of service is with city (NICERS). I am losing 5 %.
Can i transfer again to NICERS? and why NYSLRS is paying less than NICERS
Your transfer from NYCERS to NYSLRS may be irrevocable. For more information about your transfer and your NYSLRS benefits, we recommend speaking with a customer service representative. You can call 866-805-0990, press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
Like so many commenters on this site, I have been waiting way too long (almost three and a half years) for my final benefit recalculation. NYSLRS has been answering all queries on this subject with uninformative boiler-plate language for YEARS ! I know personally retirees who waited over 5 years to get their recalculation, and with no explanation as to why. That is unconscionable. When is NYSLRS going to actually DO something to address this ? (that is an actual question, not just a complaint)
Your message is important to us, and we have sent you a private message in response.
I understand that my FAE will be based on my 3 highest earning consecutive years – but I cannot seem to find a more precise explanation of exactly how that is calculated. For example, if I retired today (8/22/2024) – and my 3 highest earning consecutive years have been the last 3 – how exactly are the earnings for each of the 3 years calculated? i.e., presuming the end date for “year 1” is 8/21/2024 (yesterday, my last day on the payroll, per this hypothetical example) – when calculating for FAE purposes, are my “year 1” earnings (NOT including any additional earnings for unused vacation time, etc.):
A) what I was paid for the actual days between 8/22/2023 (which was in the middle of a pay period) through 8/21/2024, or
B) the total of all paychecks I received between 8/22/2023 and 8/21/2024
Clearly, these 2 amounts would be different – which is why I am asking for a more thorough explanation.
For account-specific questions about your final average earnings, please call our customer service representatives at 866-805-0990, press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
There is nothing account specific re: the question I asked – it was a general question about how FAE is calculated for everyone.
As of July 30th, 2024, I have been retired for 4 years, 7 months – and am still waiting for my final recalculation to be done. I have contacted NYSLRS several times in the last 4+ years, with no results. I’ve always been told they can’t give me a timeframe for completion.
The last call I made, I was told that they could see there was no examiner assigned to my case, and they found this concerning, however, there was nothing they could do for me to speed the process up. This is beyond frustrating.
Your message is important to us, and we have sent you a private message in response.
I want to retire with 28 years of service. What can i expect in retirement with a 140.000 salary?
Most members can sign in to Retirement Online to estimate their NYSLRS pension based on information we have on file for them. You can enter different retirement dates and adjust earnings and service credit totals to compare retirement outcomes.
For account-specific questions, please message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
Based on what I have read, I really don’t know if or when I should retire from State service. For example, if my effective retirement date is 9/1/24. I should expect to start receiving benefits at the end of the next month or beyond. I know each situation is different but, why would I have to wait any specific period of time.
Retirement benefits are paid monthly.
For most members, you will receive your first pension payment at the end of the month following your retirement month. Certain situations may delay your first payment, for example we must have proof of your date of birth on file before we can pay out any benefits.
If you have account-specific questions, please message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
Within the time that these calculations are being made, do I get any sort of payment from my retirement while waiting?? I see 1- 3 years for calculations in the comments that seems like alot of unpaid bills for some people. If so is this a well known fact the waiting period is that long? If not people should be informed well before retirement to make other arrangements while waiting, not every person will have the foresight to prepare for something they were expecting to have within a month or two after. Thank you for your time
For most members, you will receive your first pension payment at the end of the month following your retirement month.
When you retire, your pension payment is based on the salary and service information we have on file for you at retirement. In some cases, slight adjustments are made to the initial amount after we receive and process final payroll information from your employer.
NYSLRS is working hard to complete recalculations and to provide retroactive payments as quickly as possible. We apologize for the length of time this is taking for some retirees. We are working to improve our service in this area and we thank you for your patience.
Can you please clarify the FAE 10% limitation rules for Tier 6 ERS members? The chart above says 10% above the average of the previous TWO years cannot be used in the FAE calculation. However, NYSLRS and NYCERS usually have nearly identical rules, and the NYCERS website explicitly states “The Bill does not make changes to the 4-year lookback period for affected Tier 3 and Tier 6 members”, meaning the rule remains 10% above the average of the previous FOUR years cannot be used in the FAE calculation. Can you please clarify whether the 10% limit applies to the previous TWO or FOUR years for Tier 6 ERS members? If the change has been made to two years, a quote from the legislation would be ideal. Thanks!
The new law provided Tier 6 members in the New York State and Local Employees’ Retirement System a final average salary based on their highest salary earned over three consecutive years, where the salary earned in any year cannot exceed the average of the previous two years by more than 10%. This can be found in subdivisions a and b of section 608 of the retirement and social security law. For specific questions related to the New York City Employees’ Retirement System, please contact them directly.
If you have a second job but in the same retirement system does that money earned go on top of the 10% or is included as part of the 10%. I’ll just use one year as an example
Job 1 $80,000 + $8000 = $88,000 FAS
Job 2 $10,000 + $88,000 = $98,000 FAS
Yes, if you work for two employers in the same retirement system during the period used to calculate your final average earnings (FAE), earnings from both employers would be used in calculating your FAE and your limit.
For account-specific information about how this may apply in your situation, please message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
Can you please clarify the FAE 10% limit rules for Tier 6 ERS members? The chart above says that more than 10% above the average of the previous TWO years will not be counted. However, NYSLRS and NYCERS usually have nearly identical rules, and NYCERS’ website explicitly states that “The Bill does not make changes to the 4-year lookback period for affected Tier 3 and Tier 6 members”, meaning the FAE limit is 10% above the average of the previous FOUR years. Can you please confirm whether the FAE limitation for Tier 6 ERS members is now 10% above the average of the previous TWO years or the previous FOUR years? If it has been changed to two years, can you please show us where in the legislation it says this?
The new law provided Tier 6 members in the New York State and Local Employees’ Retirement System a final average salary based on their highest salary earned over three consecutive years, where the salary earned in any year cannot exceed the average of the previous two years by more than 10%. This can be found in subdivisions a and b of section 608 of the retirement and social security law. For specific questions related to the New York City Employees’ Retirement System, please contact them directly.
Good afternoon,
I will now be retired from NYS for three years in July, I have been “Waiting patiently” for my additional service credit calculations for unused sick leave to finalize my final salary. Once this takes place will I be compensated in interest accrued during this waiting period ?
Thank you in advance
For questions about your recalculation, you can call our customer service representatives at 866-805-0990, press 2, then follow the prompts.
Sick leave credit is taking more than 2 years, Why?
NYSLRS is working hard to complete recalculations and to provide retroactive payments as quickly as possible. We apologize for the length of time this is taking for you. We are working to improve our service in this area and we thank you for your patience.
I can answer this for you as I asked it as well. No. You will not receive ANY interest for the money the State held onto while they calculated your final calculation. It took me months to finally get this answer. They said there is nothing in the law that allows them to pay interest.
I asked this question already. The answer is No. You will not be compensated any interest. I was told the law does not allow for them to pay it.
Is geographic location pay included in the “regular earnings”?
Yes, location pay would generally be considered regular earnings.
For information specific to your retirement plan and tier, please message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
I was wondering when my pension would be finalized? I’ve been retired for a year and a half. I also worked for the Retirement System for 18 years. Please advise. Thank you.
NYSLRS is working hard to complete recalculations and to provide retroactive payments as quickly as possible. We apologize for the length of time this is taking for you. We are working to improve our service in this area and we thank you for your patience.
2 years and counting is more than enough time
2 years + is more than enough time
Does the calculation of the FAE change if you retire on an ERS accidental disability pension?
Disability benefits depend on your tier and retirement plan. You can find information about the disability benefit that would apply to you, and how they are calculated, in your retirement plan publication.
For account-specific information, you can message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.