Benefit Improvements for Tier 6 Members

mportant update for New York State and Local Retirement System Tier 6 members! The recently approved 2024–25 state budget includes two new laws that improve your benefits.

Tier 6 final average earnings based on highest three years

Your pension benefit amount is determined by several factors, including your tier, service credit and Final Average Salary.

For Employees’ Retirement System Tier 6 members, your FAS will now be based on the average of your three highest consecutive years of earnings, the same as members in other tiers. Previously, your FAS was the average of your highest five consecutive years of earnings.

These improvements apply to ERS members who retired on or after April 20, 2024. If you recently retired and the change applies to you, we will automatically update your pension calculation.

For more information, visit our final average earnings webpage at www.bit.ly/final-average-earnings.

Excluding OT pay from Tier 6 contribution rates may reduce contribution rates for some

For most Tier 6 members with more than three years of service, your contribution rate to NYSLRS is based on what you earned in public employment two years prior.

Overtime pay earned between April 1, 2022, and March 31, 2024, will be excluded 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.

The rate decrease will not apply to Tier 6 members who:

• Are already paying the minimum contribution rate of 3 percent; or
• Joined NYSLRS on or after April 1, 2022.

We will work with employers to review your past earnings, determine whether your rate should be lowered and refund contribution overpayments since April 1, 2024, if your rate is lowered.

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.

For more information, visit our Member Contributions webpage at www.bit.ly/Tier-6-rates.