For Tier 5 and 6 members, overtime pay beyond the annual limits below is not included in the definition of earnings, and we cannot use it in a final average earnings (FAE) calculation.
Only report overtime until a member reaches the limit for the calendar year. You must still report the member’s salary and days worked; only omit overtime pay that exceeds the limit.
Do not withhold contributions for any overtime amounts beyond the limit.
At the beginning of each calendar year, resume reporting overtime and collecting contributions as usual.
Tier 5 ERS Members: View the Tier 5 ERS overtime limits. The limit increases by 3 percent each calendar year.
Tier 5 PFRS Members: The limit is 15 percent of a member’s wages, as determined at the beginning of each calendar year. Those wages include regular earnings, shift differential pay, location pay, longevity payments and top-of-pay-grade bonus.1
Tier 6 ERS Members: View the Tier 6 ERS overtime limits. Effective January 1, 2018, the limitation is calculated based on the calendar year (January 1 – December 31) rather than the State fiscal year (April 1 – March 31). It increases based on the change in the Consumer Price Index for the one-year period ending September 30 of the previous year.
Tier 6 PFRS Members: The limit is 15 percent of a member’s wages, as determined at the beginning of each calendar year. Those wages include regular earnings, shift differential pay, location pay, longevity payments and top-of-pay-grade bonus.1
If you have questions about reporting overtime, please email our Employer Reporting staff.
What Constitutes Overtime Payments?
For compensation to be classified as “overtime,” it must be paid for additional hours worked beyond one’s regular schedule and payment must be at a greater rate than one’s regular rate of pay. For example:
- Overtime paid at time and a half, double time or greater;
- Recall overtime; and
- Holiday premium pay for holidays worked.*
As of July 1, 2019, public safety overtime that is paid directly by a member’s participating public employer, and meets other requirements, is pensionable and needs to be reported to NYSLRS. This includes special duty assignments that involve public safety work that is directed, controlled and paid for by a public employer and reimbursed by a private entity. For more information, visit our Public Safety Overtime page.
The following are not considered payment for overtime:
- Standby pay;
- Inconvenience pay;
- Location pay; and
- Straight pay for holidays.
*Not all holiday premium pay is considered overtime. It is only considered overtime if it is paid for additional hours worked beyond one’s regular schedule and at a greater rate than one’s regular rate of pay.
Rev. 1/23
1Updated 1/24