Special 20- and 25-Year Plans

For PFRS Tier 2, 3 (Article 11), 5 and 6 Members, (Sections 384, 384-d and 384-e)

Contributing Toward Your Retirement

Special 20- and 25-Year Plans
For PFRS Tier 2, 3 (Article 11), 5 and 6 Members
(Sections 384, 384-d and 384-e)

Tier 6 Contribution Rates - Messaging for 2024 Law

Overtime Pay Temporarily Excluded From Tier 6 Contribution Rates

Overtime pay earned between April 1, 2022 and March 31, 2024 will 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.

For more information, visit our Member Contributions page.

Tier 2 and 3 (Article 11) Members

You are not required to contribute toward your retirement. However, you can make voluntary annuity savings contributions, which will earn interest and provide an annuity above and beyond your regular pension benefit when you retire. You can contribute any whole percentage from 1 percent to 10 percent. Voluntary contributions are taken after taxes. At retirement, the annuity you receive would be treated as taxable income, however because you made post-tax contributions, a portion of your pension would be non-taxable. To begin making voluntary contributions, complete an Election to Make Voluntary Contributions (RS5379), and submit it to your payroll office.

If you withdraw these contributions before you retire, you may be taxed on more than just the interest portion of your refund, and you may also be subject to a tax penalty. Please read the election form carefully before submitting and speak to a tax advisor if you have questions.

Tier 5 Members

You must contribute 3 percent of your reportable earnings toward your retirement benefits until you retire, unless your plan limits creditable service to 20, 25 or 32 years.* In that case, you won’t contribute after the maximum service credit allowed has been reached. These are mandatory contributions; they will not provide an additional annuity when you retire.

Tier 6 Members

You must contribute a percentage of your reportable earnings toward your retirement benefits (see chart below) until you retire, unless your plan limits creditable service to 20, 25 or 32 years.* In that case, you won’t contribute after the maximum service credit allowed has been reached.

For your first three years of membership, we use the annual wage provided to us by your employer (on your membership application) to determine your contribution rate. After three years, we base your contribution rate on what you actually earned in the last completed State fiscal year (April 1 to March 31). Part-time employee contribution rates are determined based on annualized wages. Contribution rates are set April 1 each year. These are mandatory contributions; they will not provide an additional annuity when you retire.

Annual WageContribution Rate
$45,000 or less3.00%
$45,000.01 to $55,0003.50%
$55,000.01 to $75,0004.50%
$75,000.01 to $100,0005.75%
More than $100,0006.00%

 


*There may be some exceptions. For example, PFRS members covered by a collective bargaining agreement requiring the employer to offer a non-contributory plan that was in effect on January 9, 2010, and was still in effect on the date of employment, may not need to contribute. Any change in employment, however, could result in the employee being required to contribute.