Most members are required to contribute a percentage of their earnings toward their retirement.

NYSLRS pensions are defined benefit plans, also known as traditional pension plans. 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. 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.

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.

Your contribution balance earns interest annually and determines the amount you would be eligible to borrow if you decided 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

If you were to die in service, your contribution balance would be paid to your beneficiary, in addition to any death benefit your beneficiary is eligible for.

Tier 6

For ERS and PFRS Tier 6 members, you are required to contribute a percentage (see chart) 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.

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.

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. 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, your contribution rate is calculated using actual earnings from all public employment two state fiscal years prior, including:

• 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 proper amount.

Here's an example:

• SFY 2022–23:
  • You started working for a public employer and joined NYSLRS with a date of membership of June 1, 2022 (you are in Tier 6).
  • At enrollment, your employer provided us with a projected annualized wage of $42,000. Based on that, your contribution rate is 3 percent.
  • You contributed at this rate for 6/1/22–3/31/23.
• SFY 2023–24:
  • You do not have reported earnings for SFY 2021–22.
  • Your contribution rate is still based on the projected annualized wage of $42,000 provided by your employer and remains at 3 percent.
  • You contributed at this rate for 4/1/23–3/31/24.
• SFY 2024–25:
  • You have reported earnings for SFY 2022–23, but it’s not a complete fiscal year of earnings (you started on 6/1/22, partway through the fiscal year).
  • Your contribution rate is still based on the projected annualized wage of $42,000 provided by your employer and remains at 3 percent.
  • You contributed at this rate for 4/1/24–3/31/25.
• SFY 2025–26:
  • You have reported earnings for the full SFY 2023–24.
  • Your contribution rate is based on your actual earnings of $46,000 and increases to 3.5 percent.
  • You would contribute at this rate for 4/1/25–3/31/26.

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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.

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Tiers 3 & 4 (Articles 14 & 15)

For ERS Tier 3 and 4 members covered by 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.

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Tier 3 (Article 14)

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

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Tier 3 (Article 11)

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

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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.

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Voluntary Contributions

For ERS and PFRS Tier 1 and 2 members and PFRS Tier 3, 5 and 6 members who are not required to contribute, you can choose to make voluntary contributions to NYSLRS. Members who voluntarily contribute will receive an annuity based on their voluntary contributions in addition to their pension at retirement.

Members may contribute any whole percentage of their earnings from 1 to 10 percent. They can only start, change or stop voluntary contributions once during a 12-month period.

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 of voluntary contributions, 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.

Applying for a Refund of Excess Contributions

If you are covered by a non-contributory retirement plan and have made voluntary contributions under Section 21(l) or 321(l), you may apply for a refund of those excess contributions plus interest. Withdrawing your voluntary contributions does not terminate your NYSLRS membership.

If you transfer your membership from another New York State or New York City public retirement system into NYSLRS, you may also have excess contributions. You should contact us at the time of the transfer to find out the status of your contributions.

You may receive one refund of your excess contributions in a 12-month period. To apply for a refund of excess contributions, complete an Application for Refund of Excess Contributions (RS5195).

Contributions made under a contributory retirement plan or for the purchase of military service cannot be refunded as excess.

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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. 4/25