Overview
For members of Tier 5, the New York State Retirement and Social Security Law limits the amount of overtime pay included in the calculation of your final average earnings (FAE), which is used to determine your NYSLRS pension. If you earn more than the annual limit, it will not be factored into your pension and your employer should not withhold member contributions from overtime pay above the limit.
Overtime limits differ for the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS).
New Law Increases Annual Overtime Limits Effective January 1, 2027
A new law enacted as part of the 2026-27 State Budget increased the annual overtime limits for ERS Tier 5 members and PFRS Tier 5 members.
ERS Tier 5 Members
As a result of the new law, your overtime limit for 2027 will be $30,000, and it will increase by 3 percent each calendar year thereafter (as it did previously).
| Calendar Year | Overtime Limit |
|---|---|
| 2027 | $30,000.00 |
| 2026 | $24,070.60 |
| 2025 | $23,369.51 |
| 2024 | $22,688.85 |
| 2023 | $22,028.01 |
| 2022 | $21,386.41 |
| 2021 | $20,763.51 |
| 2020 | $20,158.75 |
| 2019 | $19,571.60 |
| 2018 | $19,001.55 |
| 2017 | $18,448.11 |
| 2016 | $17,910.78 |
PFRS Tier 5 Members
Your overtime limit for 2026 is 15 percent of your pensionable, non-overtime earnings (regular earnings, shift differential pay, location pay, longevity payments and top of pay grade bonus) from the previous calendar year.
As a result of the new law, your annual overtime limit effective January 1, 2027 will be 25 percent of your pensionable, non-overtime earnings (regular earnings, shift differential pay, location pay, longevity payments and top of pay grade bonus) from the previous calendar year.
For More Information
Find your retirement plan publication for comprehensive information about your retirement benefits and how your pension will be calculated.
Rev. 8/26