The 2026-27 New York State Budget includes new laws that affect Tier 6 contribution rates:
- Reduces Tier 6 contribution rates effective October 1, 2026.
- Excludes overtime pay temporarily from the calculation of Tier 6 contribution rates.
NYSLRS will be working closely with you to make the necessary changes.
Continue Withholding Contributions at the Current Rate
Please continue to withhold Tier 6 contributions using the rates we provided to you in March. If you need to know a Tier 6 member’s current contribution rate:
- Sign in to Retirement Online.
- Click Access Reporting Dashboard button.
- After choosing location code, click Member Contribution Rates link.
Reduced Tier 6 Contribution Rates 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% |
In September, NYSLRS will notify employers when the new Tier 6 contribution rates for your employees are available in Retirement Online.
Beginning October 1, 2026, you must update your payroll records to withhold the correct amount and use the new contribution rates beginning with your October monthly report (or if you do not report monthly, beginning with the report that includes earnings for October).
The new Tier 6 contribution rates are not retroactive to April 1, 2026. Therefore, refunds will not be necessary.
Overtime Pay Temporarily Excluded from the Calculation of Tier 6 Contribution Rates
The law also temporarily excludes overtime pay earned from April 1, 2024 through March 31, 2026 from the calculation of Tier 6 contribution rates, lowering the percentage some Tier 6 members are required to contribute from April 1, 2026 through March 31, 2028.
To remove overtime pay from the calculation of Tier 6 contribution rates, NYSLRS requires detailed earnings information from employers. Therefore, we will issue the contribution rates effective October 1, 2026 while we work with you to obtain the information needed for Tier 6 members impacted by this part of the law. However, with more than 485,000 Tier 6 members, it will take several months to review past earnings, recalculate rates and refund overpayments.
Tier 6 Members Affected
The law may affect Tier 6 members who:
- Joined NYSLRS before:
- April 1, 2024 for the contribution rates effective April 1, 2026-March 31, 2027; or
- April 1, 2025 for the contribution rates effective April 1, 2027-March 31, 2028;
- Make mandatory contributions toward their retirement (most Tier 6 members);
- Contribute more than the minimum 3 percent; and
- Earned overtime from April 1, 2024 through March 31, 2026.
It will not affect Tier 6 members who:
- Joined NYSLRS on or after:
- April 1, 2024 for the contribution rates effective April 1, 2026-March 31, 2027.
- April 1, 2025 for the contribution rates effective April 1, 2027-March 31, 2028.
(Note: A new Tier 6 member’s contribution rate is based on their projected annual wage which is not impacted by the law.)
- Already pay the minimum rate of 3 percent.
- Did not earn overtime from April 1, 2024 to March 31, 2026.
Contribution Rates for April 1, 2026 through March 31, 2027
Earnings
If your organization has been using enhanced reporting since April 2024, we will begin reviewing the earnings we have on file. If not, we will email Reporting Contacts to request earnings breakdowns from April 1, 2024 through March 31, 2026 for Tier 6 members affected by this part of the law.
Note: If an employee works for more than one employer, we cannot begin reviewing their earnings until we have detailed information from all their employers.
Contribution Rates
We will recalculate contribution rates for April 1, 2026 through March 31, 2027 to exclude overtime pay earned from April 1, 2024 through March 31, 2025 and use the reduced rates effective October 1, 2026. We will notify you when the new contribution rates are available in Retirement Online.
Refunds
As a result of excluding overtime pay from the calculation of Tier 6 contribution rates, some members may have overpaid contributions to NYSLRS since April 1, 2026. We will issue a credit for the total amount of all your employees’ refunds and provide a list of the employees and the amount owed to each. You will be responsible for reimbursing each employee per the information we provide.
Contribution Rates for April 1, 2027 through March 31, 2028
When we calculate contribution rates for April 1, 2027 to March 31, 2028, we will exclude overtime pay earned from April 1, 2025 through March 31, 2026 and use the contribution rates effective October 1, 2026. Therefore, we will not need to recalculate rates or issue refunds again.
If You Need Help
If you have a question 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).
If your employees have questions, encourage them to visit our Member Contributions page. We will update it as information becomes available.
Rev. 8/26