Benefit improvements for NYSLRS Tier 5 and 6 members

here’s good news for members of the New York State and Local Retirement System. If you’re in Tier 5 or 6, new laws passed recently will improve your benefits.*

The new law will lower Tier 6 member contribution rates for NYSLRS members. That means most Tier 6 members will pay a smaller percentage of earnings toward contributions. Remember, NYSLRS pensions are a lifetime benefit based on your earnings and years of service, not how much you contribute. Lower contribution rates mean more money stays in your paycheck, and it won’t affect your benefits when you retire. (Learn more at bit.ly/NYSLRS-defined-benefits.)

As of Oct. 1, 2026, Tier 6 member contribution rates will be:

• $45,000 or less: 3% (no change)
• $45,000.01 to $55,000: 3% (currently 3.5%)
• $55,000.01 to $75,000: 3% (currently 4.5%)
• $75,000.01 to $100,000: 4% (currently 5.75%)
• $100,000.01 to $125,000: 5.25% (currently 6%)
• $125,000.01 or greater: 5.75% (currently 6%)

The new law will raise the annual overtime limits for members of Tiers 5 and 6. That means more overtime earnings can be included in the calculation of your pension, which can mean a higher benefit when you retire.

Your overtime limit for 2027 will be $30,000 and will increase by 3% each calendar year thereafter. Currently, the overtime limit for 2026 is $24,070.60 for Tier 5 and $21,589 for Tier 6.

You can find more information — including additional laws affecting NYSLRS benefits — on the 2026–27 State Budget Measures Affecting NYSLRS page at osc.ny.gov/retirement/2026-laws.

*This information is for members of the Employees’ Retirement System, administered by NYSLRS. It does not explain how the laws affect New York State Teachers’ Retirement System benefits. Also, the new law allowing NYSTRS Tier 6 members with 30 years of service to retire at age 58 with no benefit reduction does not apply to NYSLRS Tier 6 members.