For Tier 5 and 6 members, overtime pay beyond the annual limits below is not included in the definition of earnings, and we cannot use it in a final average salary (FAS) calculation.
Only report overtime until a member reaches the limit for the calendar year. You must still report the member’s salary and days worked; only omit overtime pay that exceeds the limit.
Do not withhold contributions for any overtime amounts beyond the limit.
At the beginning of each calendar year, resume reporting overtime and collecting contributions as usual.
Tier 5 ERS Members: View the Tier 5 ERS overtime limits. The limit increases by 3 percent each calendar year.
Tier 5 PFRS Members: The limit is 15 percent of a member’s wages, as determined at the beginning of each calendar year. Those wages include regular earnings, shift differential pay, location pay, longevity payments, pre-shift briefing pay, top-of-pay-grade bonus and negotiated increases to future wages.
Tier 6 ERS Members: View the Tier 6 ERS overtime limits. Effective January 1, 2018, the limitation is calculated based on the calendar year (January 1 – December 31) rather than the State fiscal year (April 1 – March 31). It increases based on the change in the Consumer Price Index for the one-year period ending September 30 of the previous year.
Tier 6 PFRS Members: The limit is 15 percent of a member’s wages, as determined at the beginning of each calendar year. Those wages include regular earnings, shift differential pay, location pay, longevity payments, pre-shift briefing pay, top-of-pay-grade bonus and negotiated increases to future wages.
If you have questions about reporting overtime, please email our Employer Reporting staff.
What Constitutes Overtime Payments?1
For compensation to be classified as “overtime,” it must have been paid for additional hours worked beyond regular scheduled hours, regardless of pay rate. For example:
- Overtime paid at straight time, time and a half, double time or greater;
- Recall overtime;
- Holiday premium pay for holidays worked; and
- Pre-shift briefing pay.
As of July 1, 2019, public safety overtime that is paid by a public entity, and meets other requirements, is pensionable and needs to be reported to NYSLRS. This includes special duty assignments that involve public safety work that is directed, controlled and paid for by a public employer and reimbursed by a private entity. For more information, visit our Public Safety Overtime page.
The following are not considered payment for overtime:
- Standby pay;
- Inconvenience pay;
- Location pay; and
- Straight pay for holidays.