Relates to the retirement contributions of career public employees
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Assembly Actions -
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| Apr 14, 2026 |
referred to governmental employees |
S T A T E O F N E W Y O R K
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10939
I N A S S E M B L Y
April 14, 2026
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees
AN ACT to amend the retirement and social security law and the education
law, in relation to the retirement contributions of career public
employees
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision a of section 517 of the retirement and social
security law, as amended by chapter 18 of the laws of 2012, the second
undesignated paragraph as amended by section 1 of part KK of chapter 55
of the laws of 2024, is amended to read as follows:
a. Members shall contribute three percent of annual wages to the
retirement system in which they have membership, provided that such
contributions shall not be required for more than thirty years, for
general members, or twenty-five years, for police/fire members, except
that beginning April first, two thousand [thirteen] TWENTY-SIX for
members who first become members of the New York state and local employ-
ees' retirement system on or after April first, two thousand twelve, the
rate at which each such member shall contribute in any current plan year
(April first to March thirty-first) shall be determined by reference to
the wages of such member in the second plan year (April first to March
thirty-first) preceding such current plan year as follows:
[1. members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01321-07-6
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5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] 1. MEMBERS WITH BASE
WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIB-
UTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH BASE WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER
ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
FOUR PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK STATE AND LOCAL EMPLOYEES'
RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local employees' retirement system on or after
April first, two thousand twelve shall contribute for any plan year
(April first to March thirty-first) between April first, two thousand
twenty-two and April first, two thousand [twenty-six] TWENTY-EIGHT, such
rate shall be determined by reference to employees annual base wages of
such member in the second plan year (April first to March thirty-first)
preceding such current plan year. Base wages shall include regular pay,
shift differential pay, location pay, and any increased hiring rate pay,
but shall not include any overtime payments.
The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
§ 2. Paragraphs 1 and 2 of subdivision a of section 613 of the retire-
ment and social security law, as amended by chapter 510 of the laws of
2015, the second undesignated paragraphs of paragraphs 1 and 2 as
amended by section 2 of part KK of chapter 55 of the laws of 2024, are
amended to read as follows:
1. Except as provided by paragraph two of this subdivision, members
shall contribute three percent of annual wages to the retirement system
in which they have membership, except that beginning April first, two
thousand [thirteen] TWENTY-SIX for members who first become members of a
public retirement system of the state on or after April first, two thou-
sand twelve, the rate at which each such member shall contribute in any
current plan year (April first to March thirty-first, except for members
of the New York city employees' retirement system, New York city teach-
ers' retirement system and New York city board of education retirement
system, plan year shall mean January first through December thirty-first
commencing with the January first next succeeding the effective date of
the chapter of the laws of two thousand fifteen that amended this para-
graph) shall be determined by reference to the wages of such member in
the second plan year (April first to March thirty-first, except for
members of the New York city employees' retirement system, New York city
teachers' retirement system and New York city board of education retire-
ment system, plan year shall mean January first through December thir-
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ty-first commencing with the January first next succeeding the effective
date of the chapter of the laws of two thousand fifteen that amended
this paragraph) preceding such current plan year as follows:
[(i) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(ii) members with wages greater than forty-five thousand per annum,
but not more than fifty-five thousand per annum shall contribute three
and one-half per centum of annual wages;
(iii) members with wages greater than fifty-five thousand per annum,
but not more than seventy-five thousand per annum shall contribute four
and one-half per centum of annual wages;
(iv) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(v) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] (I) MEMBERS WITH BASE
WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIB-
UTE THREE PER CENTUM OF ANNUAL WAGES.
(II) MEMBERS WITH BASE WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER
ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
FOUR PER CENTUM OF ANNUAL WAGES; AND
(III) MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER
ANNUM SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first, except for members of New York
city employees' retirement system, New York city teachers' retirement
system and New York city board of education retirement system, plan year
shall mean January first through December thirty-first commencing with
the January first next succeeding the effective date of chapter five
hundred ten of the laws of two thousand fifteen) in which such member
has established membership in a public retirement system of the state,
such member shall contribute a percentage of annual wages in accordance
with the preceding schedule based upon a projection of annual wages
provided by the employer. Notwithstanding the foregoing, when determin-
ing the rate at which each such member who became a member of the New
York state and local employees' retirement system, New York city employ-
ees' retirement system, New York city teachers' retirement system and
New York city board of education retirement system, on or after April
first, two thousand twelve shall contribute for any plan year (April
first to March thirty-first, except for members of the New York city
employees' retirement system, New York city teachers' retirement system
and New York city board of education retirement system, plan year shall
mean January first through December thirty-first commencing with January
first next succeeding the effective date of chapter five hundred ten of
the laws of two thousand fifteen) between April first, two thousand
twenty-two and April first, two thousand [twenty-six] TWENTY-EIGHT, such
rate shall be determined by reference to employees annual base wages of
such member in the second plan year (April first to March thirty-first)
preceding such current plan year. Base wages shall include regular pay,
shift differential pay, location pay, and any increased hiring rate pay,
but shall not include any overtime payments or compensation earned for
extracurricular programs or any other pensionable earnings paid in addi-
tion to the annual base wages.
The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
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such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
2. A member of the New York city employees' retirement system who is
eligible to be a participant in the twenty-five-year and age fifty-five
retirement program, as defined by paragraph five of subdivision a of
section six hundred four-b of this article shall contribute two percent
of annual wages to such system effective on the starting date of the
elimination of additional member contributions, as defined in an
election made pursuant to paragraph ten of subdivision e of section six
hundred four-b of this article, except that beginning April first, two
thousand [thirteen] TWENTY-SIX for members who first become members of
the New York city employees' retirement system on or after April first,
two thousand twelve, the rate at which each such member shall contribute
in any current plan year (April first to March thirty-first, provided,
however, that plan year shall mean January first through December thir-
ty-first commencing with the January first next succeeding the effective
date of the chapter of the laws of two thousand fifteen that amended
this paragraph) shall be determined by reference to the wages of such
member in the second plan year (April first to March thirty-first,
provided, however, that plan year shall mean January first through
December thirty-first commencing with the January first next succeeding
the effective date of the chapter of the laws of two thousand fifteen
that amended this paragraph) preceding such current plan year as
follows:
[(i) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(ii) members with wages greater than forty-five thousand per annum,
but not more than fifty-five thousand per annum shall contribute three
and one-half per centum of annual wages;
(iii) members with wages greater than fifty-five thousand per annum,
but not more than seventy-five thousand per annum shall contribute four
and one-half per centum of annual wages;
(iv) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(v) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] (I) MEMBERS WITH BASE
WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIB-
UTE THREE PER CENTUM OF ANNUAL WAGES.
(II) MEMBERS WITH BASE WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER
ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
FOUR PER CENTUM OF ANNUAL WAGES; AND
(III) MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER
ANNUM SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first, provided, however, that plan
year shall mean January first through December thirty-first commencing
with the January first next succeeding the effective date of chapter
five hundred ten of the laws of two thousand fifteen) in which such
member has established membership in the New York city employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of, New York city employees' retirement system, on or after April first,
two thousand twelve shall contribute for any plan year (April first to
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March thirty-first, provided, however, that plan year shall mean January
first through December thirty-first commencing with the January first
next succeeding the effective date of chapter five hundred ten of the
laws of two thousand fifteen) between April first, two thousand twenty-
two and April first, two thousand [twenty-six] TWENTY-EIGHT, such rate
shall be determined by reference to employees annual base wages of such
member in the second plan year (April first to March thirty-first)
preceding such current plan year. Base wages shall include regular pay,
shift differential pay, location pay, and any increased hiring rate pay,
but shall not include any overtime payments.
§ 3. Subdivisions f and g of section 613 of the retirement and social
security law, as amended by chapter 18 of the laws of 2012, and the
second undesignated paragraphs of subdivisions f and g as amended by
section 2 of part KK of chapter 55 of the laws of 2024, are amended to
read as follows:
f. Anything in subdivision a of this section to the contrary notwith-
standing a member employed as a uniformed court officer or peace officer
in the unified court system who first joins the New York state and local
employees' retirement system on or after January first, two thousand ten
shall contribute four percent of annual wages to the New York state and
local employees' retirement system, except that beginning April first,
two thousand [thirteen] TWENTY-SIX for members who first become members
of the New York state and local employees' retirement system on or after
April first, two thousand twelve, the rate at which each such member
shall contribute in any current plan year (April first to March thirty-
first) shall be determined by reference to the wages of such member in
the second plan year (April first to March thirty-first) preceding such
current plan year as follows:
[1. members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] 1. MEMBERS WITH WAGES
OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIBUTE
THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local employees' retirement system on or after
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April first, two thousand twelve shall contribute for any plan year
(April first to March thirty-first) between April first, two thousand
twenty-two and April first, two thousand [twenty-six] TWENTY-EIGHT, such
rate shall be determined by reference to employees annual base wages of
such member in the second plan year (April first to March thirty-first)
preceding such current plan year. Base wages shall include regular pay,
shift differential pay, location pay, and any increased hiring rate pay,
but shall not include any overtime payments.
The head of the New York state and local employees' retirement system
shall promulgate such regulations as may be necessary and appropriate
with respect to the deduction of such contribution from members' wages
and for the maintenance of any special fund or funds with respect to
amounts so contributed.
g. Members who first join the New York state teachers' retirement
system on or after January first, two thousand ten shall contribute
three and one-half percent of annual wages to the New York state teach-
ers' retirement system, except that beginning April first, two thousand
[thirteen] TWENTY-SIX for members who first become members of the New
York state teachers' retirement system on or after April first, two
thousand twelve, the rate at which each such member shall contribute in
any current plan year (July first to June thirtieth) shall be determined
by reference to the wages of such member in the second plan year (July
first to June thirtieth) preceding such current plan year as follows:
[1. members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] 1. MEMBERS WITH WAGES
OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIBUTE
THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
Notwithstanding the foregoing, during each of the first three plan
years (July first to June thirtieth) in which such member has estab-
lished membership in the New York state teachers' retirement system,
such member shall contribute a percentage of annual wages in accordance
with the preceding schedule based upon a projection of annual wages
provided by the employer. Notwithstanding the foregoing, when determin-
ing the contribution rate at which a member of the New York state teach-
ers' retirement system with a date of membership on or after April
first, two thousand twelve shall contribute for plan years (July first
to June thirtieth) between July first, two thousand twenty-two and July
first, two thousand [twenty-six] TWENTY-EIGHT, such rate shall be deter-
mined by reference to the member's annual base wages in the second plan
year (July first to June thirtieth) preceding such current plan year.
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Annual base wages shall not include compensation earned for extracurric-
ular programs or any other pensionable earnings paid in addition to the
annual base wages.
The head of the New York state teachers' retirement system shall
promulgate such regulations as may be necessary and appropriate with
respect to the deduction of such contribution from members' wages and
for the maintenance of any special fund or funds with respect to amounts
so contributed.
§ 4. Section 1204 of the retirement and social security law, as
amended by chapter 18 of the laws of 2012, the second undesignated para-
graph as amended by section 3 of part KK of chapter 55 of the laws of
2024, is amended to read as follows:
§ 1204. Member contributions. Members who are subject to the
provisions of this article shall contribute three percent of annual
wages to the retirement system in which they have membership, except
that beginning April first, two thousand [thirteen] TWENTY-SIX for
members who first become members of the New York state and local police
and fire retirement system on or after April first, two thousand twelve,
the rate at which each such member shall contribute in any current plan
year (April first to March thirty-first) shall be determined by refer-
ence to the wages of such member in the second plan year (April first to
March thirty-first) preceding such current plan year as follows:
[a. members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
b. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
c. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
d. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
e. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] A. MEMBERS WITH WAGES
OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIBUTE
THREE PER CENTUM OF ANNUAL WAGES;
B. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
C. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local police and fire
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local police and fire retirement system on or
after April first, two thousand twelve shall contribute for any plan
year (April first to March thirty-first) between April first, two thou-
sand twenty-two and April first, two thousand [twenty-six] TWENTY-EIGHT,
such rate shall be determined by reference to employees annual base
wages of such member in the second plan year (April first to March thir-
ty-first) preceding such current plan year. Base wages shall include
A. 10939 8
regular pay, shift differential pay, location pay, and any increased
hiring rate pay, but shall not include any overtime payments. Effective
April first, two thousand twelve, all members subject to the provisions
of this article shall not be required to make member contributions on
annual wages excluded from the calculation of final average salary
pursuant to section twelve hundred three of this article. Nothing in
this section, however, shall be construed or deemed to allow members to
receive a refund of any member contributions on such wages paid prior to
April first, two thousand twelve.
Members who are enrolled in a retirement plan that limits the amount
of creditable service a member can accrue shall not be required to make
contributions pursuant to this section after accruing the maximum amount
of service credit allowed by the retirement plan in which they are
enrolled. The state comptroller shall promulgate such regulations as may
be necessary and appropriate with respect to the deduction of such
contribution from members' wages and for the maintenance of any special
fund or funds with respect to amounts so contributed. In no way shall
the member contributions made pursuant to this section be used to
provide for pension increases or annuities of any kind.
§ 5. Subdivision 2 of section 182 of the education law, as amended by
chapter 18 of the laws of 2012, is amended to read as follows:
2. Employee contributions. In the case of any electing employee,
contributions at the rate of three per centum of [his] SUCH ELECTING
EMPLOYEE'S state salary shall be deducted by the state comptroller as
the employee contribution, provided however, that such employee contrib-
ution shall be made by the state in accordance with subdivision one of
this section during such period as (a) either section seventy-a of the
retirement and social security law or section five hundred twenty-eight
of this title provides that the contribution of each member of the New
York state employees' retirement system or the New York state teachers'
retirement system in the employ of the state shall be reduced by at
least eight per centum of [his] SUCH MEMBER'S compensation, or (b)
employee contributions to either such system are no longer required by
reason of such system becoming noncontributory for state employees.
Notwithstanding any other law to the contrary, beginning April first,
two thousand [thirteen] TWENTY-SIX any electing employee appointed on or
after April first, two thousand twelve, the rate at which each such
employee shall contribute in any current plan year (January first to
December thirty-first) shall be determined by reference to the wages of
such member in the second plan year (January first to December thirty-
first) preceding such current plan year as follows:
[(a) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(b) members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
(c) members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
(d) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(e) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] (A) MEMBERS WITH WAGES
OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIBUTE
THREE PER CENTUM OF ANNUAL WAGES;
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(B) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
(C) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
Notwithstanding the foregoing, during each of the first three plan
years (January first to December thirty-first) in which such member has
established membership in the Education Department Optional Retirement
Program, such employee shall contribute a percent of annual wages in
accordance with the preceding schedule based upon a projection of annual
wages provided by the employer, PROVIDED, FURTHER, HOWEVER, THAT
NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, ON AND AFTER APRIL FIRST,
TWO THOUSAND TWENTY-SIX, FOR ANY ELECTING EMPLOYEE WHO IS SUBJECT TO
THIS PARAGRAPH, THE STATE SHALL CONTRIBUTE AN ADDITIONAL ONE PERCENT OF
THE EMPLOYEE CONTRIBUTION PURSUANT TO THE PROVISIONS OF THIS SECTION ON
BEHALF OF THE EMPLOYEE.
§ 6. Paragraph (d) of subdivision 2 of section 392 of the education
law, as added by chapter 18 of the laws of 2012, is amended to read as
follows:
(d) Notwithstanding any other law to the contrary, beginning April
first, two thousand thirteen any electing employee appointed on or after
April first, two thousand [twelve] TWENTY-SIX, the rate at which each
such employee shall contribute in any current plan year (January first
to December thirty-first) shall be determined by reference to the wages
of such member in the second plan year (January first to December thir-
ty-first) preceding such current plan year as follows:
[(i) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(ii) members with wages greater than forty-five thousand per annum,
but not more than fifty-five thousand per annum shall contribute three
and one-half per centum of annual wages;
(iii) members with wages greater than fifty-five thousand per annum,
but not more than seventy-five thousand per annum shall contribute four
and one-half per centum of annual wages;
(iv) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(v) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] (I) MEMBERS WITH WAGES
OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIBUTE
THREE PER CENTUM OF ANNUAL WAGES;
(II) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
(III) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
Notwithstanding the foregoing, during each of the first three plan
years (January first to December thirty-first) in which such member has
established membership in the State University Optional Retirement
Program, such employee shall contribute a percent of annual wages in
accordance with the preceding schedule based upon a projection of annual
wages provided by the employer, PROVIDED, FURTHER, HOWEVER, THAT
NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, ON AND AFTER APRIL FIRST,
TWO THOUSAND TWENTY-SIX, FOR ANY ELECTING EMPLOYEE WHO IS SUBJECT TO
THIS PARAGRAPH, THE STATE SHALL CONTRIBUTE AN ADDITIONAL ONE PERCENT OF
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THE EMPLOYEE CONTRIBUTION PURSUANT TO THE PROVISIONS OF THIS SECTION ON
BEHALF OF THE EMPLOYEE.
§ 7. Paragraph (d) of subdivision 2 of section 6252 of the education
law, as added by chapter 18 of the laws of 2012, is amended to read as
follows:
(d) Notwithstanding any other law to the contrary, beginning April
first, two thousand [thirteen] TWENTY-SIX any electing employee
appointed on or after April first, two thousand twelve, the rate at
which each such employee shall contribute in any current plan year
(January first to December thirty-first) shall be determined by refer-
ence to the wages of such member in the second plan year (January first
to December thirty-first) preceding such current plan year as follows:
[(1) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(2) members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
(3) members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
(4) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(5) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages] (1) MEMBERS WITH WAGES
OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS SHALL CONTRIBUTE
THREE PER CENTUM OF ANNUAL WAGES;
(2) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
(3) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
Notwithstanding the foregoing, during each of the first three plan
years (January first to December thirty-first) in which such member has
established membership in the Board of Higher Education Optional Retire-
ment Program, such employee shall contribute a percent of annual wages
in accordance with the preceding schedule based upon a projection of
annual wages provided by the employer, PROVIDED, FURTHER, HOWEVER, THAT
NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, ON AND AFTER APRIL FIRST,
TWO THOUSAND TWENTY-SIX, FOR ANY ELECTING EMPLOYEE WHO IS SUBJECT TO
THIS PARAGRAPH, THE STATE SHALL CONTRIBUTE AN ADDITIONAL ONE PERCENT OF
THE EMPLOYEE CONTRIBUTION PURSUANT TO THE PROVISIONS OF THIS SECTION ON
BEHALF OF THE EMPLOYEE.
§ 8. Notwithstanding any other provision of law to the contrary, none
of the provisions of this act shall be subject to section 25 of the
retirement and social security law.
§ 9. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2026.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would change member-contribution rates, and the wage ranges
to which member-contribution rates are applied, for Tier 6 members
effective April 1, 2026.
Salary Range
($ in thousands) Current Rate Proposed Rate
Less than 45 3.00% 3.00%
A. 10939 11
45 to 55 3.50% 3.00%
55 to 75 4.50% 3.00%
75 to 100 5.75% 4.00%
100 or greater 6.00% 5.00%
Additionally, this bill would permanently exclude overtime pay from
the annual wages used to determine member contributions for Tier 6
members.
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), the present value of costs would increase
by approximately $2.33 billion.
The provisions of section 25 of the RSSL shall not apply.
Benefit improvements would be funded by increasing the billing rates
charged annually. The annual contribution required by all participating
employers in NYSLERS would increase by 0.8% of billable salary, or
approximately $107 million to the state of New York and $160 million to
the local participating employers. The annual billing rates for Tier 6
members would further increase by 0.1% of salary (for a 0.9% total annu-
al rate increase), with other plans increasing a lesser amount.
Required contributions will increase significantly as Tier 6 grows.
Employer costs would vary according to plan coverage and salary reported
in Tier 6.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), the present value of costs would
increase by approximately $311 million.
Benefit improvements would be funded by increasing the billing rates
charged annually. The annual contribution required by all participating
employers in NYSLPFRS would increase by 0.7% of billable salary, or
approximately $6 million to the state of New York and $25 million to the
local participating employers. The annual billing rates for Tier 6
members would further increase by 0.3% of salary (for a 1.0% total annu-
al rate increase), with other plans increasing a lesser amount.
Required contributions will increase significantly as Tier 6 grows.
Employer costs would vary according to plan coverage and salary reported
in Tier 6.
Further, we anticipate significant administrative costs to implement
the provisions of this legislation.
These estimated costs are based on 323,488 Tier 6 members with annual
salary of approximately $17 billion in NYSLERS, and 19,945 Tier 6
members with annual salary of approximately $2.1 billion in NYSLPFRS, as
of March 31, 2025.
Summary of relevant resources:
Membership data as of March 31, 2025 was used to measure the impact of
the bill, the same data used in the Actuarial Valuations dated April 1,
2025. Distributions and other statistics can be found in the 2025 Report
of the Actuary and the 2025 Annual Comprehensive Financial Report. The
actuarial assumptions and methods used are described in the 2025 Annual
Report to the Comptroller on Actuarial Assumptions, and the Codes, Rules
and Regulations of the State of New York: Audit and Control. The fair
value of assets and GASB disclosures can be found in the 2025 Financial
Statements and Supplementary Information.
Assumptions, demographics, and other considerations may have been
modified to better reflect specific provisions of any proposed benefit
change(s).
A. 10939 12
This fiscal note does not constitute a legal opinion on the viability
of the bill, nor is it intended to serve as a substitute for the profes-
sional judgment of an attorney.
This estimate, dated March 4, 2026, and intended for use only during
the 2026 Legislative Session, is Fiscal Note Number 2026-87. As Chief
Actuary of the New York State and Local Retirement System (NYSLRS), I,
Aaron Schottin Young, hereby certify that this analysis complies with
applicable Actuarial Standards of Practice as well as the Code of
Professional Conduct and Qualification Standards for Actuaries Issuing
Statements of Actuarial Opinion of the American Academy of Actuaries, of
which I am a member. I am a member of NYSLRS but do not believe it
impairs my objectivity.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
Bill Description:
This fiscal note is prepared for legislative bill draft #01321-04-6.
This bill would amend various sections of the Retirement and Social
Security Law and the Education Law to reduce the required employee
contribution rate for Tier 6 members. The salary ranges and employee
contribution rates for Tier 6 members would be changed to the following
as of April 1, 2026:
Salary Employee Contribution Rate
$75,000 and less 3.00%
More than $75,000 to $100,000 4.00%
More than $100,000 5.00%
Cost:
The annual cost to the participating employers of the New York State
Teachers' Retirement System is estimated to be $108.3 million or 0.52%
of payroll if this bill is enacted.
The System's "new entrant rate," a hypothetical employer contribution
rate that would be charged if we started a new retirement system without
any assets, is equal to 5.52% of pay under the current Tier 6 benefit
structure. This can be thought of as the long-term expected employer
cost of Tier 6, based on current actuarial assumptions. For the
proposed change to the Tier 6 benefit structure under this bill, this
new entrant rate is estimated to increase to 6.32% of pay, an increase
of 0.80% of pay.
Data:
Member data as of June 30, 2025, prepared for the most recent actuari-
al valuation was used in determining this cost. The most recent data
distributions and statistics can be found in the System's Annual Report
for the fiscal year ended June 30, 2025. System assets are as reported
in the System's financial statements which can be found in the System's
Annual Report. This data will also be provided in the System's Actuarial
Valuation Report as of June 30, 2025.
Methods and Assumptions:
A summary of actuarial assumptions and methods will be provided in the
System's Actuarial Valuation Report as of June 30, 2025. Further details
can be found in the most recent Recommended Actuarial Assumptions 2025
Report.
Actuarial Certification:
We, the undersigned actuaries for the New York State Teachers' Retire-
ment System, certify the following:
1. The actuarial assumptions, methods, and data used are reasonable
for the purposes of this fiscal note, internally consistent and are in
A. 10939 13
accordance with standards of practice prescribed by the Actuarial Stand-
ards Board and generally accepted actuarial principles and procedures.
2. We relied on member data supplied by the participating employers of
the New York State Teachers' Retirement System and assets as supplied in
the annual Financial Statements by NYSTRS' Finance Department.
3. Results were prepared based on our current understanding of the
proposal as of the date of this fiscal note. If the language or our
understanding of the proposal changes, the results could change and
require the issuance of a new fiscal note. The next annual update of the
actuarial valuation could also produce different results. Results should
not be relied upon for any other purpose.
4. This fiscal note was prepared in accordance with New York State
Retirement and Social Security Law, New York State Education Law, appli-
cable Internal Revenue Code, and accepted actuarial standards of prac-
tice as of the date of this fiscal note. This fiscal note does not
constitute a legal opinion on the viability of this legislative
proposal.
5. We are members of the American Academy of Actuaries and the Society
of Actuaries, and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
We are currently compliant with the Continuing Professional Development
Requirement of the Society of Actuaries.
Fiscal Note Identification:
This Fiscal Note, 2026-22, revised March 2, 2026, was prepared by the
Office of the Actuary of the New York State Teachers' Retirement System
and is intended for use only during the 2026 Legislative Session.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation, as it relates to the New York City
Retirement Systems and Pension Funds (NYCRS) would reduce the required
Basic Member Contribution (BMC) rates for Tier 6 members of NYCERS, TRS,
and BERS.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS TRS BERS TOTAL
2027 100.0 72.8 11.2 184.0
2028 108.5 77.3 11.8 197.6
2029 117.2 82.1 12.6 211.9
2030 126.0 87.3 13.4 226.7
2031 134.9 92.8 14.2 241.9
2032 144.0 98.8 15.1 257.9
2033 153.2 105.1 16.0 274.3
2034 162.5 112.0 16.9 291.4
2035 172.0 119.2 17.9 309.1
2036 181.6 126.8 18.9 327.3
2037 191.4 134.9 19.9 346.2
2038 201.2 143.5 20.9 365.6
2039 211.3 152.6 22.0 385.9
2040 221.5 162.1 23.1 406.7
2041 231.8 172.0 20.9 424.7
2042 205.6 182.1 22.1 409.8
2043 216.3 192.2 23.3 431.8
2044 227.2 202.4 24.5 454.1
2045 238.1 185.1 25.7 448.9
2046 249.2 195.1 27.0 471.3
A. 10939 14
2047 260.3 205.0 28.3 493.6
2048 271.5 214.8 29.6 515.9
2049 282.7 224.5 31.0 538.2
2050 293.9 234.2 32.4 560.5
2051 305.1 244.0 33.8 582.9
Projected contributions include future new hires that may be impacted.
For Fiscal Year 2052 and beyond, the expected increase in normal cost
as a level percent of pay for impacted new entrants is approximately
0.90% for NYCERS, 0.89% for TRS, and 0.90% for BERS.
The initial increase in employer contributions of $184.0 million is
estimated to be $126.7 million for New York City and $57.3 million for
the other obligors of NYCRS.
PRESENT VALUE OF BENEFITS: The Present Value of Benefits is the
discounted expected value of benefits paid to current members if all
assumptions are met, including future service accrual and pay increases.
Future new hires are not included in this present value.
INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
as of June 30, 2025 ($ in Millions)
Present Value (PV) NYCERS TRS BERS
(1) PV of Employer Contributions: 1,093.0 999.2 122.9
(2) PV of Employee Contributions: (1,181.8) (1,076.4) (133.7)
Total PV of Benefits (1) + (2): (88.7) (77.3) (10.7)
UNFUNDED ACCRUED LIABILITY (UAL): Actuarial Accrued Liabilities are
the portion of the Present Value of Benefits allocated to past service.
Changes in UAL were amortized over the expected remaining working life-
time of those impacted using level dollar payments.
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS TRS BERS
Increase (Decrease) in UAL: 323.6 M 266.3 M 28.2 M
Number of Payments: 15 18 14
Amortization Payment: 36.7 M 27.4 M 3.3 M
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2025. The census data for the
impacted population is summarized below.
NYCERS TRS BERS
Active Members
- Number Count: 99,619 71,364 37,490
- Average Age: 43.0 39.0 41.5
- Average Service: 5.2 5.7 2.2
- Average Salary: 87,100 86,500 37,900
IMPACT ON MEMBER CONTRIBUTIONS: Currently, Tier 6 members of NYCERS,
TRS, and BERS are generally required to make Basic Member Contributions
(BMC) ranging from 3% to 6% of annual wages, determined by the memberÆs
annual wages for the second prior calendar year.
Under the proposed legislation, effective April 1, 2026:
A. 10939 15
* The required BMC rates for each salary band above $45,000 would be
reduced as shown in the table below.
Salary Band Current Rate Proposed Rate
$45,000 or less 3.00% 3.00%
$45,001 up to $55,000 3.50% 3.00%
$55,001 up to $75,000 4.50% 3.00%
$75,001 up to $100,000 5.75% 4.00%
Greater than $100,000 6.00% 5.00%
* The annual wages used for the determination of the member's salary
band would exclude overtime and compensation earned for extracurricular
activities for all years. Currently, this exclusion is set to expire on
January 1, 2027.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems. In addition:
*New entrants were assumed to replace exiting members so that total
payroll increases by 3% each year for impacted groups. New entrant demo-
graphics were developed based on data for recent new hires and actuarial
judgement.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions, methods, and models used, demo-
graphics of the impacted population, and other factors such as invest-
ment, contribution, and other risks. If actual experience deviates from
actuarial assumptions, the actual costs could differ from those
presented herein. Quantifying these risks is beyond the scope of this
Fiscal Note.
This Fiscal Note is intended to measure pension-related impacts and
does not include other potential costs (e.g., administrative and Other
Postemployment Benefits). This Fiscal Note does not reflect any chapter
laws that may have been enacted during the current legislative session.
STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
sky are members of the Society of Actuaries and the American Academy of
Actuaries. We are members of NYCERS, but do not believe it impairs our
objectivity, and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
To the best of our knowledge, the results contained herein have been
prepared in accordance with generally accepted actuarial principles and
procedures and with the Actuarial Standards of Practice issued by the
Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2026-36 dated March 10,
2026 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds and is intended for use only during the 2026
Legislative Session.
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