Recently enacted legislation temporarily changes the calculation of Tier 6 contribution rates. The earnings that the rate is based on will not include overtime for a period of two years. This new legislation will result in lower contribution rates for some Tier 6 members.
The legislation was effective as of April 1, 2022 and will apply to contributions that you are withholding from member earnings from April 1, 2022 through March 31, 2024.
What You Need to Do
By September 30, 2022, you must provide a breakdown of pensionable earnings reported for some of your Tier 6 employees from April 1, 2020 through March 31, 2022, which is the earnings period used to calculate the contribution rates affected by the legislation.
Reporting contacts received an email letting them know that a notification is available in Retirement Online. To view the notification, sign in to Retirement Online and select the notification titled, “Provide overtime earnings for rate recalculation.” This notification will provide a link to a new “Summary Page” in Retirement Online where you can report the information to NYSLRS. This page will list only the employees at your location who may be impacted by the legislation.
Once you are on the Summary Page, follow the step-by-step instructions in our How-To Guide to provide earnings information for each of the employees listed.
Next Steps and Contribution Refunds
Once we have reviewed the reported earnings, we will recalculate each member’s contribution rate and determine whether their rate needs to be lowered. You’ll receive a notification in Retirement Online when new rates are available on the Member Contribution Rate page.
Employers who respond by September 30, 2022 will receive a credit in early December (when you submit your November report) for any excess member contributions made since April 1, 2022. You will be responsible for reimbursing the employee.
We will also notify affected members that their rate has been lowered and that they will be receiving a refund.
By issuing credits in December, we hope you will be able to refund employees by the end of the year so that amended W-2 wage and tax statements won’t be necessary.
If You Need Help
If you have difficulty signing in to Retirement Online, call our Retirement Online Employer Help Desk at 844-619-9614 (press 1, then 1) or use our help desk form (select “Retirement Online Troubleshooting” from the dropdown menu).
If you have questions about reporting information in to Retirement Online, call 866-805-0990 (press 1, then 5) or use our help desk form (select “Monthly Employer Reporting” from the dropdown menu).
If your employees have questions or would like information about which Tier 6 members may be affected, please refer them to our Member Contributions page.
Rev. 9/22