Mandatory Contributions

Most members are required to contribute a percentage of their earnings toward their retirement. Member contributions depend on your tier. However, exceptions may apply to some members of the Employees’ Retirement System (ERS) or the Police and Fire Retirement System (PFRS) depending on your retirement plan.

Tier 6

For ERS and PFRS Tier 6 members, you are required to contribute a percentage of your earnings for all your years of public service. Your contribution rate is based on your annualized wage or actual earnings (see How Tier 6 Contribution Rates are Calculated).

Reduced Tier 6 Contribution Rates Effective October 1, 2026

A new law reduces Tier 6 contribution rates effective October 1, 2026.

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.

How Tier 6 Contribution Rates Are Calculated

When you join NYSLRS as a new Tier 6 member, your contribution rate is based on a projected annualized wage provided by your employer, which is a projection of a full-time employee’s annual base pay. For new part-time employees, your employer calculates a projected annualized wage by using your part-time rate to determine what your annual wage would be if you worked full-time.

Once you have been a member for more than two full State fiscal years (April 1–March 31), your contribution rate is calculated using actual earnings from all public employment two State fiscal years prior. So, contribution rates for April 1, 2026 through March 31, 2027 are based on what you actually earned in all public employment from April 1, 2024 through March 31, 2025. Earnings include:

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

Contribution rates are set at the beginning of each fiscal year on April 1. If your contribution rate changes, we notify your employer in March so they can update their payroll system to withhold the correct amount.

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.

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.

Contribution Rate Changes and Possible Refunds

In September, NYSLRS will notify employers of changes to Tier 6 members’ contribution rates effective October 1, 2026.

Contribution Rates for April 1, 2026 through March 31, 2027

To remove overtime pay from the calculation of Tier 6 contribution rates, NYSLRS requires detailed earnings information from employers. Over the next several months, we will work with employers to obtain information, recalculate contribution rates and refund any overpayments. If your contribution rate is lowered and you are due a refund, we will notify your employer, and they will issue the refund to you.

With more than 485,000 Tier 6 members, it will take several months to review past earnings, update rates and refund overpayments. We thank you in advance for your patience.

Contribution Rates for April 1, 2027 through March 31, 2028

When we calculate your contribution rate for April 1, 2027 to March 31, 2028, we will have the detailed information we need from employers to exclude overtime pay earned from April 1, 2025 through March 31, 2026. Therefore, we will not need to recalculate these rates or issue refunds again.

Tier 5

For ERS and PFRS Tier 5 members, you are required to contribute 3 percent of your earnings for all your 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)

For ERS Tier 3 and 4 members covered under Article 14 or Article 15, you were required to contribute 3 percent of your earnings until you had been a member for 10 years or you had 10 years of credited service, whichever occurred first.

Tier 3 (Article 14)

For PFRS Tier 3 members covered under Article 14, you are required to contribute 3 percent of your earnings for 25 years.

Tier 3 (Article 11)

For PFRS members covered under Article 11, you are not required to contribute if your employer offers a non-contributory plan.

Note: A new State law eliminated the contribution requirements for Tier 3 members who elected coverage under the 25-Year (Section 383-f) Plan.

Tiers 1 & 2

For ERS and PFRS Tier 1 and 2 members, you are not required to contribute if your employer offers a non-contributory plan.

Note: A new State law eliminated the contribution requirements for Tier 1& 2 members who elected coverage under the 25-Year (Section 383-f) Plan.

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How Contributions Impact Benefits

Pension Benefits

Your NYSLRS pension is a defined benefit plan, also known as a traditional pension plan. When you retire, you will receive a monthly pension payment for the rest of your life. Your pension will be calculated using a preset formula based on your earnings and years of service—it will not be based on the individual contributions you paid into the system. However, member contributions support the benefits earned by current and future retirees and are an important asset of the Common Retirement Fund, which holds and invests the money used to pay NYSLRS benefits.

Loans

Your contributions earn interest annually and determine the amount you would be eligible to borrow if you decide to take a NYSLRS loan.

Contributions earn 5 percent annual interest for members of:

• ERS Tiers 3, 4, 5 and 6
• PFRS Tier 3 (Article 14)

Contributions earn up to 5 percent interest—3 percent guaranteed, plus up to an additional 2 percent based on the earnings of the Common Retirement Fund—for members of:

• PFRS Tiers 5 and 6
• PFRS Tier 3 (Article 11)
• ERS and PFRS Tiers 1 and 2

Death Benefits

If you die while in service, the balance of your contributions in addition to any death benefits would be paid to your beneficiary.

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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. If you choose to do so, you will receive an annuity at retirement in addition to your pension. You can contribute any whole percentage of your earnings from 1 to 10 percent. However, you can only start, change or stop voluntary contributions once every 12 months.

Starting Voluntary Contributions

To start making voluntary contributions, you must:

• Complete the Election to Make Voluntary Contributions (RS5379) form.
• File the election form with your payroll office.

Changing the Percentage of Voluntary Contributions

To change the percentage you voluntarily contribute, you must:

• Complete a new Election to Make Voluntary Contributions (RS5379) form.
• File the new election form with your payroll office.

Stopping Voluntary Contributions

To stop making voluntary contributions, you must:

• Complete the Cancellation of Election to Make Voluntary Contributions (RS5378) form.
• File the cancellation form with your payroll office.

Withdrawing Voluntary Contributions

You can request a withdrawal of your voluntary contributions plus interest once every 12 months.

Withdrawing your voluntary contributions does not terminate your NYSLRS membership or impact your pension benefit. However, it will reduce the annuity you would have received at retirement.

There may also be tax implications. The Internal Revenue Service (IRS) may consider all or part of your withdrawal payment as a “deemed distribution from a qualified plan.” In other words, you may have to claim all or part of your payment as taxable income when you file your taxes the next year. Also, if you withdraw your contributions before age 59½, the IRS may charge an additional 10 percent tax penalty, unless an exception applies. NYSLRS will send you a 1099-R tax form to file with your taxes.

To withdraw your voluntary contributions, complete an Application for Refund of Excess Contributions (RS5195).

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For More Information

Find your retirement plan publication for comprehensive information about your retirement benefits and how your pension will be calculated.

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Rev. 8/26