ARTIFICIAL INTELLIGENCE [AI] IS NOT USED IN COMPOSING NYPPL SUMMARIES OF JUDICIAL AND QUASI-JUDICIAL DECISIONS.

Jun 30, 2026

Members of the New York State Employees' Retirement System in Tier 6 to pay lower employee contributions for retirement

 




Effective October 1, 2026, Tier 6 member employee contribution rates are as follows:

 

EarningsCurrent Contribution RateNew Contribution Rate
$45,000 or less3.00%3.00%
$45,000.01 to $55,0003.50%3.00%
$55,000.01 to $75,0004.50%3.00%
$75,000.01 to $100,0005.75%4.00%
$100,000.01 to $125,0006.00%5.25%
$125,000.01 to $250,0006.00%5.75%

The Tier 6  member's contribution rate is determined by the member's annual earnings as the  new law reduced the member's "employee's required contribution rates". This means most Tier 6 members will pay less from their earnings towards their employee's retirement contributions.

Increased Overtime Limits for Tier 5 and 6 Members

For members of Tiers 5 and 6, the law limits the amount of overtime pay included in the calculation of the member's final average earnings (FAE), which is used to determine the member's NYSLRS pension. Overtime pay above the limit is not factored into the members pension. However, the law increased the annual overtime limits, allowing more overtime pay to be included in the calculation of your pension benefit.

Effective January 1, 2027:

  • For ERS Tier 5 and 6 members, the overtime limit for 2027 is $30,000 and increases by 3% each calendar year thereafter. Currently, the limit for 2026 is $24,070.60 for Tier 5 and $21,589 for Tier 6.
  • For PFRS Tier 5 and 6 members, the annual overtime limit is 25% of your pensionable, non-overtime earnings. Currently, the annual limit is 15%.

 

New York State Comptroller Thomas DiNapoli also reported that the new laws continue to improve Tier 6 Benefits.

For more information, including additional laws affecting NYSLRS benefits, click the following URL 2026 Laws page.

 

 


Editor in Chief Harvey Randall served as Director of Personnel, State University of New York Central Administration; Director of Research, Governor's Office of Employee Relations; Principal Attorney, Counsel's Office, New York State Department of Civil Service; and Colonel, JAG, Command Headquarters, New York Guard. Consistent with the Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations, the material posted to this blog is presented with the understanding that neither the publisher nor NYPPL and, or, its staff and contributors are providing legal advice to the reader and in the event legal or other expert assistance is needed, the reader is urged to seek such advice from a knowledgeable professional.

CAUTION

Subsequent court and administrative rulings, or changes to laws, rules and regulations may have modified or clarified or vacated or reversed the information and, or, decisions summarized in NYPPL. For example, New York State Department of Civil Service's Advisory Memorandum 24-08 reflects changes required as the result of certain amendments to §72 of the New York State Civil Service Law to take effect January 1, 2025 [See Chapter 306 of the Laws of 2024]. Advisory Memorandum 24-08 in PDF format is posted on the Internet at https://www.cs.ny.gov/ssd/pdf/AM24-08Combined.pdf. Accordingly, the information and case summaries should be Shepardized® or otherwise checked to make certain that the most recent information is being considered by the reader.
THE MATERIAL ON THIS WEBSITE IS FOR INFORMATION ONLY. AGAIN, CHANGES IN LAWS, RULES, REGULATIONS AND NEW COURT AND ADMINISTRATIVE DECISIONS MAY AFFECT THE ACCURACY OF THE INFORMATION PROVIDED IN THIS LAWBLOG. THE MATERIAL PRESENTED IS NOT LEGAL ADVICE AND THE USE OF ANY MATERIAL POSTED ON THIS WEBSITE, OR CORRESPONDENCE CONCERNING SUCH MATERIAL, DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP.
New York Public Personnel Law. Email: publications@nycap.rr.com