Tier 6 contribution rates are based on the member’s earnings.

• For a new full-time Tier 6 member, their contribution rate is based on their projected annual wage, which you provided when you enrolled them. 
• For a new part-time Tier 6 member, you calculate a projected annualized wage by using their part-time rate to determine what their annual wage would be if they were a full-time employee.

Once they have been a member for more than two full State fiscal years (April 1–March 31), their contribution rate is calculated using their actual earnings reported to NYSLRS from all public employment (not just their employment with your location*) two State fiscal years prior. The following earnings are included in the calculation of their contribution rate:

• Regular pay;
• Holiday pay;
• Longevity pay; and
• Overtime pay (up to a certain limit).

*If a member’s contribution rate is higher than you expected, this could be the reason.

Example:

• New Employee:
  • You hired John Smith, who joined NYSLRS with a date of membership of 6/1/23 (John is in Tier 6).
  • At enrollment, you provided NYSLRS with a projected annualized wage of $42,000. Based on that, NYSLRS provided you with a contribution rate of 3 percent.
  • You used this rate for the remainder of State Fiscal Year 6/1/23–3/31/24.
• March 2024:
  • When NYSLRS released contribution rates for the next State fiscal year, John’s contribution rate was still based on the projected annualized wage of $42,000 and remained at 3 percent.
  • This is because John was not yet a member for two full State fiscal years.
  • You used this rate for 4/1/24–3/31/25. This is the first full State fiscal year that John worked.
• March 2025:
  • When NYSLRS released contribution rates for the next State fiscal year, John’s contribution rate was still based on the projected annualized wage of $42,000 and remained at 3 percent.
  • Even though John was a NYLSRS member for two calendar years in June 2025, he was not yet a member for two full State fiscal years. 
  • You used this rate for 4/1/25–3/31/26. This is the second full State fiscal year that John worked.
• March 2026:
  • When NYSLRS released contribution rates for the next State fiscal year, John’s contribution rate was based on actual earnings from 4/1/24–3/31/25, the first full State fiscal year of reported earnings.
  • From 4/1/24–3/31/25, John had reported earnings of $46,000 so his contribution rate increased to 3.5 percent.

Rev. 8/26