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Sep 9, 2026

New York State's State and Local Employees' Retirement System announces employer contributions rates for State Fiscal Year 2027-2028

In a press release issued on September 8, 2026, New York State Comptroller Thomas P. DiNapoli reported "the  employer contribution rates for the New York State and Local Retirement System  (NYSLRS) for State Fiscal Year (SFY) 2027-28. Employers’ average contribution rates will decrease from 17.6% to 17.3% of payroll for the Employees’ Retirement System [ERS] and increase from 36.5% to 37.4% of payroll for the Police and Fire Retirement System [PFRS]."

In the press release, the State Comptroller reported:

NYSLRS is made up of these two systems, which pay service and disability retirement benefits to state and local public employees and death benefits to their survivors. There are more than 3,000 participating employers in ERS and PFRS, and more than 300 different retirement plan combinations. In the SFY that ended March 31, 2026, NYSLRS paid more than $17.5 billion in benefits. ERS has about 1.2 million members with 493,000 retirees and beneficiaries receiving benefits and PFRS has 79,000 members with 42,000 retirees and beneficiaries currently receiving benefits.*

The Governor' press release notes: 

“Our state pension fund and retirement system continue to be among the strongest in the nation, even as we navigate the challenges of damaging federal policy changes, market volatility and global conflict,” DiNapoli said. “These rates, coupled with our disciplined, long-term investment strategy and prudent management, will help ensure public workers and their families receive the retirement benefits they have earned.

"Employer rates for NYSLRS are determined based on investment performance and actuarial assumptions recommended by NYSLRS’ actuary, who is required to review the actuarial assumptions and experience and to issue an annual report. The recommendations are reviewed by the independent Actuarial Advisory Committee and approved by the Comptroller. In addition to investment performance, other factors that impact rates include higher salaries, plan options selected by employers, recent legislative reforms to Tiers 5 and 6 and member retirement rates.

The press release also noted: "In 2012, DiNapoli began providing employers with access to a two-year projection of their annual pension bills. Employers can use this projection in the preparation of their budgets. Projections of required contributions vary by employer depending on factors such as the types of retirement benefit plans adopted, salaries paid, and the distribution of employees among the six membership tiers."

The press release continues, indicating:

"Payments based on the new rates are due by Feb. 1, 2028, but employers receive a discount if payment is made by Dec. 15, 2027.

"The New York State Common Retirement Fund’s long-term assumed rate of return will remain at 5.9%. DiNapoli has been a leader in the trend of public pension funds lowering their assumed rates of return to better enable New York to weather volatile markets. The median investment return assumption for public pension funds was 7% in July 2026, according to the National Association of State Retirement Administrators."

DiNapoli also announced that NYSLRS had a funded ratio of 96.8% as of March 31, 2026. NYSLRS is consistently one of the nation’s best funded retirement systems. "A high funding ratio means NYSLRS has funds available to pay retirement benefits to about 1.3 million members, consisting of over 750,000 current and former state and local government employees and more than 535,000 retirees and their beneficiaries."

The fund’s estimated value was $309.7 billion as of June 30, 2026.

* Nota Bene: The State University of New York's Optional Retirement Program is not part of NYSLRS. 

Report 

Annual Report to the Comptroller on Actuarial Assumptions

Related Work:

State Pension Fund Valued at $309.7 Billion at End of First Quarter

Fiduciary and Conflict of Interest Review

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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.

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