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, your age at retirement and your final average salary (FAS). FAS is the average of the wages you earned during any five consecutive years of service when your earnings were highest. This is usually the last five years of employment.
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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 up to the annual limit, if earned in the FAS period.*
- Holiday pay.
- Noncompensatory overtime earned in the FAS period.*
- Longevity payments (maximum of five), if earned in the FAS period.
The following types of payments are not considered regular compensation and, in most cases, will not be included in your FAS calculation:
- Lump sum vacation pay.
- Wages reported from more than your primary and secondary (if applicable) employers.
- Unused sick leave.
- Payments made as a result of your working during your vacation.
- Overtime payments that exceed the limitation.
- Any payments that cause your salary to exceed that of the Governor.**
- Any form of termination pay.
- Payments made in anticipation of retirement.
- Lump sum payments for deferred compensation.
- Any payments made for time not worked.
*Overtime pay in excess of the annual limit cannot be used in the FAS calculation. 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.