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Non-Contributory Plan with Guaranteed Benefits

For Tier 1, 2, 5 and 6 Members, and Tier 3 Members Covered by Article 11, (Section 375-e)

Limitations

Non-Contributory Plan with Guaranteed Benefits
For Tier 1, 2, 5 and 6 Members, and Tier 3 Members Covered by Article 11
(Section 375-e)

Tier 6 Final Average Earnings - Messaging for 2024 Law

Tier 6 Final Average Earnings Based on Highest 3 Years

A new law improves the pension benefits of NYSLRS Tier 6 members.

When you retire, your final average earnings (FAE) will be based on the average of your three highest consecutive years of earnings, the same as members in other tiers. If the earnings in any 12-month period in your FAE exceed the average of the previous two years by more than 10 percent, the amount above 10 percent will not be included in your FAE calculation.

Previously, your FAE was the average of your highest five consecutive years of earnings and the limit was based on the average of the previous four years.

These improvements apply to members who retire on or after:

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

For more information, visit our Final Average Earnings page.

Your plan publication will be updated accordingly in the coming months.

Tier 1

If your date of membership is June 17, 1971, or later, the wages in any 12-month period used in the FAS calculation cannot exceed the earnings in the preceding 12-month period by more than 20 percent. The amount in excess of 20 percent is excluded from the computation of your FAS.

Also, payment for up to 30 days of accumulated unused vacation will be included in your FAS calculation if:

  • Your date of membership is before April 1, 1972; and
  • Your FAS is based on the 36 months of earnings immediately preceding your date of retirement.

Tier 2 and 3

If the earnings in any year included in the FAS period exceed the average of the previous two years by more than 20 percent, the amount in excess of 20 percent is excluded from the computation of your FAS. Payment for accumulated vacation is not included in the calculation of your FAS.

Tier 5

If the earnings in any year included in the FAS period exceed the average of the previous two years by more than 20 percent, the amount in excess of 20 percent is excluded from the computation of your FAS.

Payment for accumulated vacation is not included in the calculation of your FAS, and the amount of overtime that can be included in your FAS calculation is limited to 15 percent of your salary in any given year.

Tier 6

If the earnings in any year included in the FAS period exceed the average of the previous four years by more than 10 percent, the amount in excess of 10 percent is excluded from the computation of your FAS.

Payment for accumulated vacation is not included in the calculation of your FAS. Earned compensation that exceeds the Governor’s annual salary is excluded (please refer to our Overtime and Earnings Limits for Tier 6 page for more information). Also excluded are earnings from more than two participating employers. The amount of overtime that can be included in your FAS calculation is limited to 15 percent of your salary in any given year.