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.
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Your pension is based on your years of credited service and your final average salary (FAS). For Tier 3 and 5 members, FAS is the average of the wages you earned during any three consecutive years of correction service or security hospital service when your earnings were highest. For Tier 6 members, FAS is the average of your highest five consecutive years of correction service or security hospital service earnings. This is usually your years of employment immediately before retirement.
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The calculation of your FAS can include, but is not limited to, the following types of payments. In some cases, certain restrictions may apply.
- Regular salary.
- Overtime earned in the FAS period.*
- Holiday pay.
- Noncompensatory overtime earned in the FAS period.*
- Longevity payments (maximum of one per year), if earned in the FAS period.
- For Tier 3 and 5 members, payment for up to 30 days of accumulated vacation, if the FAS is based on the 36 months immediately preceding retirement.
The following types of payments are not considered regular compensation and, in most cases, will not be included in your FAS calculation:
- Unused sick leave.
- Payments made as a result of your working during your vacation.
- Any form of termination pay.
- Payments made in anticipation of retirement.
- Lump sum payments for deferred compensation.
- Any payments made for time not worked.
- For Tier 6, any payments that cause your earnings to exceed the Governor’s salary.**
*Overtime pay in excess of the annual limit cannot be used in the FAS calculation. For Tier 5 members, the limit increases by 3 percent each calendar year. Please refer to our Overtime Limits for Tier 5 page for more information. For Tier 6 members, the limit increases each calendar year based on the Consumer Price Index on September 30 of the previous year. Please refer to our Overtime Limits for Tier 6 page for more information.
**Visit our Tier 6 Earnings Limits page for the Governor’s current salary.