The 2024–25 State Budget included a law which excludes overtime pay earned from April 1, 2022 through March 31, 2024 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.
Actions Required
- Provide earnings breakdowns to NYSLRS for Tier 6 employees who may be impacted by the new law. (Applicable to employers who are still using legacy reporting or started using enhanced reporting after April 2022.)
- Update contribution rates for Tier 6 employees who were impacted by the new law. (Applicable to employers who have been using enhanced reporting since April 2022.)
- Once NYSLRS has calculated overpayments for members whose rates were lowered, we will work with you to refund contribution overpayments retroactive to April 1, 2024.
Providing Earnings Breakdowns
Applicable to employers who are still using legacy reporting or started using enhanced reporting after April 2022.
Reporting Contacts received an email letting them know a notification is available in Retirement Online. The notification provides a link to the Summary Page, which lists the employees who may be impacted by the new law. Use this page to provide a breakdown of overtime and non-overtime earnings from April 1, 2022 through March 31, 2023 and April 1, 2023 through March 31, 2024.
What You Need to Do by January 31
View Notification to Access Summary Page
View the notification in Retirement Online, which provides a link to the Summary Page.
- Sign in to Retirement Online.
- From Account Homepage, go to Notifications.
- Click View All link or search for the notification:
- Click Search Notifications link.
- Choose Location Code.
- Enter 12/31/2024 in Date Created or click calendar icon to select from date picker dialog box.
- Click Search button.
- Select notification, Provide overtime earnings for rate recalculation.
- Click Tier 6 Overtime Submission link.
Provide Earnings Breakdowns on Summary Page
Provide overtime and non-overtime earnings for the employees listed in the View All table by January 31, 2025.
For step-by-step instructions on how to manually report or use the file upload process, refer to the Summary Page How-To Guide.
If You Do Not Have Overtime Earnings to Report
For the system to identify your submission, you must review and click ‘Save’ on the Data Entry Page for at least one employee listed in the View All table. Follow these steps:
- Click a NYSLRS ID to access the member’s Data Entry Page.
- On the Data Entry Page, click Save. (Note: This step is essential.)
- Click Return to Search to go back to the Summary Page.
- On the Summary Page, click Submit.
Next Steps
Once you submit earnings breakdowns, we will review and determine whether your Tier 6 employees’ contribution rates need to be lowered.
In March, we will notify you when new member contribution rates are available in Retirement Online:
- The new rates for fiscal year 2024-25 will be for your records and will not require any action. However, action may be required to credit your employees who overpaid.
- The new rates for fiscal year 2025-26 must be updated in your payroll system beginning April 1, 2025.
In April, we will begin calculating contribution overpayments for members whose rates for fiscal year 2024-25 were lowered and notify you of refunds due to your employees.
Information for Your Employees
In March, we will send letters notifying members whose rates for fiscal year 2024-25 were lowered. If your employees have questions, encourage them to read our blog post, Overtime Pay Temporarily Excluded From Tier 6 Contribution Rates. We will update it as information becomes available.
Updating Contribution Rates
Applicable to employers who have been using enhanced reporting since April 2022.
Note: Some employers who have not been using enhanced reporting since April 2022 received updated member contributions rates for employees whose earnings for April 1, 2022 through March 31, 2023 were reported exclusively using enhanced reporting.
Reporting Contacts received an email letting them know we’ve reviewed Tier 6 employees’ earnings and recalculated member contribution rates. If your employees were impacted by the new law, updated member contribution rates are available in Retirement Online.
What You Need to Do Immediately
Review member contribution rates in Retirement Online:
- Sign in to Retirement Online.
- Click Access Reporting Dashboard button.
- After choosing location code, click Member Contribution Rates link.
By default, the table is sorted by the Last Updated Date column so members whose rates have changed will appear at the top of the table. The change is retroactive to the start of the fiscal year so the Contribution Rate Effective As Of date is 04/01/2024.
Update your payroll system immediately to withhold the correct amount for the remainder of the fiscal year and begin using the new contribution rates on your next monthly report. If you submit your next report using the previous contribution rates and withhold too much money from your employees, your Report Summary will contain information about improper withholdings, and you will be responsible for refunding the excess amount to your employees.
Next Steps
Once you submit a monthly report using the new rates, we will begin calculating contribution overpayments for each member and notify you of refunds due to your employees.
Note: If you have not been using enhanced reporting since April 2022 and received updated member contributions rates for some of your employees in January, we will begin calculating contribution overpayments for your employees in April. Please refer to the Next Steps under Providing Earnings Breakdowns.
Information for Your Employees
We will send letters notifying members whose rates were lowered. If your employees have questions, encourage them to read our blog post, Overtime Pay Temporarily Excluded From Tier 6 Contribution Rates.
Refunding Contribution Overpayments
Refunds for contribution overpayments will be retroactive to April 1, 2024. You will receive a credit for the total amount of the refunds and an email listing the employees and amount owed to each.
What You Will Need to Do
You will be responsible for reimbursing each employee per the information outlined in the email.
Information for Your Employees
We will send letters notifying members who are owed a refund.
If You Need Help
If you have questions or for help with Retirement Online, use our help desk form or call 866-805-0990 (press 1 to access the employer menu, then follow the prompts).
Rev. 1/25