Many newer New York public workers pay less toward their pensions

If you first joined a New York public retirement system on or after April 1, 2012, you’re generally in Tier 6. Since October 1, 2026, members covered by NYSLRS, NYCERS, BERS, and applicable optional plans pay 3% up to $75,000, 4% up to $100,000, 5.25% up to $125,000, and 5.75% above that. The state and city teachers’ retirement systems kept their existing schedules. A covered worker earning $90,000 saves about $1,575 a year. Payroll changes are automatic.

Starting January 1, 2027, more overtime can count toward a pension. For covered employees-system members, the cap rises from about $22,000 to $30,000 and then grows 3% a year. For police and firefighters in NYSLRS, it rises from 15% to 25% of base pay. Counting more overtime can increase both future benefits and current contributions. Tier 6 members of the state and city teachers’ systems can retire without a reduction at 58 after 30 years of service instead of waiting until 63.

Unions spent years pushing to change Tier 6. Sen. Robert Jackson and Assembly Member Stacey Pheffer Amato sponsored bills proposing the lower contribution bands, while Assembly Speaker Carl Heastie publicly championed broader reform. Gov. Kathy Hochul and legislative leaders negotiated the narrower final package, and she signed it May 26. State AFL-CIO President Mario Cilento was among the plan’s chief negotiators. The enacted changes were estimated to cost about $557 million annually. Required employer pension contributions rise by about $118 million for the state and $440 million for local governments and school districts; some local leaders warned that could mean higher taxes or pressure on services.