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.
1-06-fas-2011526
Tiers 3 and 5
If the earnings in any year included in the FAS period exceed the average of the previous two years by more than 10 percent, the amount in excess of 10 percent is excluded from the computation of your FAS.
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. The following payments are also excluded:
-
Lump sum vacation pay;
- Earnings reported from more than two separate employers; and
- Any payments that cause your earnings to exceed the Governor’s salary.*
*Visit our Tier 6 Earnings Limits page for the Governor’s current salary.