Employees who join the New York State and Local Retirement System on or after April 1, 2012, are Tier 6 members. The majority* of Tier 6 members must contribute for their entire membership but, unlike the other tiers, Tier 6 contribution rates vary based on each member’s annual compensation.
The law requires employers to provide the employee’s annual wage information to the Retirement System. For your convenience, the membership application provides a formula you can use to help calculate the member’s annualized wage if they work less than full time and then enter this information on the document. We cannot register new members without this salary information. Note: A delay in registration will cause mandatory arrears to be owed by the member.
From April 1, 2012 through March 31, 2013, Tier 6 members contribute 3 percent of their reportable salary, except for Uniformed Court Officers and Peace Officers employed by the Unified Court System (UCPO), who contribute 4 percent. Beginning April 1, 2013, the contribution rate for Tier 6 members (including UCPOs) will depend on their annual wage. By March 1st of each year we will provide you with the rate that is applicable for each of your Tier 6 members for the next fiscal year (April 1st–March 31st).
|$45,000 or less||3%|
|$45,000.01 to $55,000||3.5%|
|$55,000.01 to $75,000||4.5%|
|$75,000.01 to $100,000||5.75%|
|More than $100,000||6%|
For the first three years of membership, each Tier 6 employee’s contribution rate is based on the annual wage you provide on the membership application. After this three-year period, as established by Tier 6 legislation, we base the contribution rate on what the employee actually earned two years prior.
Although a member’s contribution rate is based on the annual salary you provide, the contributions themselves are based on the member’s actual earnings.
*There will be some exceptions. For example, Police and Fire Retirement System 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 is still in effect on the date of membership, may not contribute.