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 covered under the Section 383-e plan are higher than the contribution rates listed above for Tier 6 members of other retirement plans.

What You Need to Do Beginning April 1

In March, NYSLRS notifies you when member contribution rates for the upcoming State fiscal year are available in Retirement Online.

To view contribution rates for State Fiscal Year 2026-27 (April 1, 2026–March 31, 2027):

• Sign in to Retirement Online.
• Click Access Reporting Dashboard button.
• After choosing location code, click Member Contribution Rates link.

Members whose rates have changed will sort to the top of the table with an As of Date of 04/01/2026. Please review carefully.

Update your payroll system to withhold the correct amount beginning April 1, 2026 and use the new contribution rates beginning with your April monthly report (or if you do not report monthly, beginning with the report that includes earnings for April).

Failure to Act Results in Serious Repercussions for Your Employees

• If a member’s contribution rate increased and you do not increase the amount withheld from their earnings, your employee will owe arrears and need to pay deficient contributions plus interest which accrues monthly on unpaid balances.
• If a member’s contribution rate decreased and you do not decrease the amount withheld, your Report Summary will have “Excess Withholdings,” and you will need to refund contribution overpayments to your employee. The Improper Withholdings page in Retirement Online provides a breakdown of the amount owed to each employee.

Note: A Tier 6 member’s contribution rate is based on all employment reported to NYSLRS, not just their employment with your location. If a member’s contribution rate is higher than you expected, this could be the reason.

How Tier 6 Contribution Rates are Calculated

A new Tier 6 member’s contribution rate is based on the projected annualized wage you provided when you enrolled them. For new part-time employees, you calculate a projected annualized wage by using their part-time rate to determine what their annual wage would be if they worked full-time.

Once they have been a member for more than two full State fiscal years (April 1–March 31), their contribution rate is calculated using actual earnings from all public employment two State fiscal years prior, including:

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

Example:

• New Employee:
  • You hired John Smith, who joined NYSLRS with a date of membership of June 1, 2023 (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 April 1, 2024 through March 31, 2025–the first full State fiscal year of reported earnings.
  • From April 1, 2024 through March, 2025, John had reported earnings of $46,000 so his contribution rate increased to 3.5 percent.
  • You will use this rate of 3.5 percent for 4/1/26–3/31/27.

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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.
• The contribution rates for Tier 5 members who elected coverage under the Section 383-e plan are higher than the contribution rate listed above for Tier 5 members of other retirement plans.

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Tier 3 (Article 14)

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