2024-25 State Budget Measures Affecting NYSLRS

Important update for members and retirees! The recently approved 2024-25 State Budget includes new laws that affect NYSLRS benefits. 
 

Members: Benefit Improvements for Tier 6

Tier 6 Final Average Earnings Based on Highest 3 Years

Your pension benefit amount is determined by several factors, including your tier, service credit, and final average earnings (FAE).

For Tier 6 members, your FAE will now be based on the average of your three highest consecutive years of earnings, the same as members in other tiers. Previously, your FAE was the average of your highest five consecutive years of earnings.

These improvements apply to members who retire on or after:

• April 1, 2024 for the Police and Fire Retirement System (PFRS) Tier 6.
• April 20, 2024 for Employees’ Retirement System (ERS) Tier 6.

If you recently retired and the change applies to you, we will automatically update your pension calculation.

Visit our Final Average Earnings page for more information.

Overtime Pay Temporarily Excluded from Tier 6 Contribution Rates

For most Tier 6 members with more than three years of service, your contribution rate to NYSLRS is based on what you earned in public employment two years prior.

Overtime pay earned between April 1, 2022 and March 31, 2024 will now be excluded from the calculation of Tier 6 contribution rates. This may lower contribution rates for some Tier 6 members from April 1, 2024 through March 31, 2026.

The rate decrease will not apply to:

• Members who are already paying the minimum contribution rate of 3 percent; or
• Members who joined NYSLRS on or after April 1, 2022.

If you recently retired and the change applies to you, we will automatically update your pension calculation.

Visit our Member Contributions page for more information.

Retirees: 2024 Update Regarding the Earnings Limit

Earnings Limit Suspended for School District and BOCES Employees

For most retirees who work for a public employer after retirement, the amount you can earn each calendar year, without affecting your pension, is limited to $35,000. For retirees employed by school districts and Boards of Cooperative Educational Services (BOCES), the earnings limit is now suspended through June 30, 2025.

The earnings limit suspension for school employees does not apply to retirees who work for a public college, university or charter school. If you are going to earn more than the limit, it is your responsibility to report it to NYSLRS.

Read our blog post, Working After Retirement: Retiree Earnings Limit, for more information.