New Laws Affecting Member Contribution Rates
The 2026-27 New York State Budget includes new laws that affect member contribution rates.
- Reduces Tier 6 contribution rates effective October 1, 2026.
- Excludes overtime pay temporarily from the calculation of Tier 6 contribution rates.
- Changes the contribution requirements for the 20- and 25-year plans (Sections 383-e and 383-f).
NYSLRS will be working closely with you to make the necessary changes. For more information about next steps, visit the New Laws Affecting Tier 6 Contribution Rates page.
Mandatory Contributions
Most members are required to contribute a percentage of their earnings toward their retirement. Whether a member contributes, and how much, depends on their tier. However, exceptions may apply to some members of the Employees’ Retirement System (ERS) or the Police and Fire Retirement System (PFRS) depending on their retirement plan.
You must report member contributions on your monthly report. For more information, including taxability of contributions and refunding contribution overpayments, refer to the Member Contributions section of the Enhanced Reporting Guide.
Tier 6
ERS and PFRS Tier 6 members are required to contribute a percentage of their earnings for all their years of public service.
Tier 6 contribution rates are based on their earnings and subject to change each year on April 1. For information about viewing Tier 6 member contribution rates in Retirement Online and updating your payroll records each year to withhold the correct amount, visit the Annual Changes to Tier 6 Contribution Rates page.
Reduced Contribution Rates for Tier 6 Members Effective October 1, 2026
A new law reduces Tier 6 contribution rates effective October 1, 2026.
| Annualized Wage or Actual Earnings | Contribution Rate Through 9/30/26 | Contribution Rate Effective 10/1/26 |
|---|---|---|
| $45,000 or less | 3.00% | 3.00% |
| $45,000.01 to $55,000 | 3.50% | 3.00% |
| $55,000.01 to $75,000 | 4.50% | 3.00% |
| $75,000.01 to $100,000 | 5.75% | 4.00% |
| $100,000.01 to $125,000 | 6.00% | 5.25% |
| $125,000.01 or greater | 6.00% | 5.75% |
Exceptions for ERS:
- New York State Correction Officers are not required to contribute after 30 years of service.
Exceptions for PFRS:
- Members enrolled in a retirement plan limiting the amount of creditable service they may accrue are not required to contribute once they reach the maximum amount of service allowed by their plan.
- If a union-negotiated collective bargaining agreement requiring an employer to offer a non-contributory 20- or 25-year plan was in effect on January 9, 2010, any new employees who joined while that agreement was in place and elected the special plan are not required to contribute.
- The contribution rates for Tier 6 members who were automatically enrolled in the 20-Year (Section 383-e) Plan are currently higher than the contribution rates listed above for Tier 6 members of other retirement plans. However, a new State law reduced the contribution rates for Tier 6 members who elected coverage under the 20-Year (Section 383-e) Plan.
Tier 5
ERS and PFRS Tier 5 members are required to contribute 3 percent of their earnings for all their years of public service.
Exceptions for ERS:
- New York State Correction Officers are not required to contribute after 30 years of service.
- Uniformed Court Officers and Peace Officers employed by the Unified Court System are required to contribute 4 percent of their earnings for all their years of public service.
Exceptions for PFRS:
- Members enrolled in a retirement plan limiting the amount of creditable service they may accrue are not required to contribute once they reach the maximum amount of service allowed by their plan.
- If a union-negotiated collective bargaining agreement requiring an employer to offer a non-contributory 20- or 25-year plan was in effect on January 9, 2010, any new employees who joined while that agreement was in place and elected the special plan are not required to contribute.
Note: A new State law reduced the contribution rates for Tier 5 members who elected coverage under the 20-Year (Section 383-e) Plan.
Tiers 3 & 4 (Articles 14 & 15)
ERS Tier 3 and 4 members covered under Article 14 or Article 15 were required to contribute 3 percent of their earnings until they had been a member for 10 years or they had 10 years of credited service, whichever occurred first.
Tier 3 (Article 14)
PFRS Tier 3 members covered under Article 14 are required to contribute 3 percent of their earnings for 25 years.
Tier 3 (Article 11)
PFRS Tier 3 members covered under Article 11 are not required to contribute if you offer a non-contributory plan.
Note: A new State law changed the contribution rates for Tier 3 members who elected coverage under the 25-Year (Section 383-f) Plan.
Tiers 1 & 2
ERS and PFRS Tier 1 and 2 members are not required to contribute if you offer a non-contributory plan.
Note: A new State law changed the contribution rates for Tier 1 & 2 members who elected coverage under the 25-Year (Section 383-f) Plan.
Voluntary Contributions
ERS and PFRS Tier 1 and 2 members and PFRS Tier 3, 5 and 6 members who are not required to contribute can make voluntary contributions to NYSLRS. Members who choose to do so will receive an annuity at retirement in addition to their pension. Members can contribute any whole percentage of their earnings from 1 to 10 percent. However, they can only start, change or stop voluntary contributions once every 12 months.
Starting Voluntary Contributions
To start making voluntary contributions, the member must:
- Complete the Election to Make Voluntary Contributions (RS5379) form.
- File the election form with their payroll office.
Your payroll office must:
- Complete the employer portion of the election form.
- Fax it to us at 518-486-4382 or mail it to the address on the form.
We will notify your payroll office when to begin taking deductions. If your payroll office begins taking deductions before receiving confirmation, the voluntary contributions will be rejected.
Changing the Percentage of Voluntary Contributions
To change the percentage that they voluntarily contribute, the member must:
- Complete a new Election to Make Voluntary Contributions (RS5379) form.
- File the new election form with their payroll office.
Your payroll office must change the percentage deducted beginning with the payroll period following receipt of the new election form.
Stopping Voluntary Contributions
To stop making voluntary contributions, the member must:
- Complete the Cancellation of Election to Make Voluntary Contributions (RS5378) form.
- File the cancellation form with their payroll office.
Your payroll office must:
- Complete the employer portion of the cancellation form.
- Fax it to us at 518-486-4382 or mail it to the address on the form.
Your payroll office must stop taking deductions beginning with the payroll period following receipt of the cancellation form.
If You Need Help
If you have questions or for help with Retirement Online, use our help desk form (select Monthly Employer Reporting or Retirement Online Troubleshooting from the dropdown) or call 866-805-0990 (press 1 to access the employer menu, then follow the prompts).
Rev. 8/26