STATE OF NEW YORK
________________________________________________________________________
10939
IN ASSEMBLY
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:
1 Section 1. Subdivision a of section 517 of the retirement and social
2 security law, as amended by chapter 18 of the laws of 2012, the second
3 undesignated paragraph as amended by section 1 of part KK of chapter 55
4 of the laws of 2024, is amended to read as follows:
5 a. Members shall contribute three percent of annual wages to the
6 retirement system in which they have membership, provided that such
7 contributions shall not be required for more than thirty years, for
8 general members, or twenty-five years, for police/fire members, except
9 that beginning April first, two thousand [thirteen] twenty-six for
10 members who first become members of the New York state and local employ-
11 ees' retirement system on or after April first, two thousand twelve, the
12 rate at which each such member shall contribute in any current plan year
13 (April first to March thirty-first) shall be determined by reference to
14 the wages of such member in the second plan year (April first to March
15 thirty-first) preceding such current plan year as follows:
16 [1. members with wages of forty-five thousand dollars per annum or
17 less shall contribute three per centum of annual wages;
18 2. members with wages greater than forty-five thousand per annum, but
19 not more than fifty-five thousand per annum shall contribute three and
20 one-half per centum of annual wages;
21 3. members with wages greater than fifty-five thousand per annum, but
22 not more than seventy-five thousand per annum shall contribute four and
23 one-half per centum of annual wages;
24 4. members with wages greater than seventy-five thousand per annum but
25 not more than one hundred thousand per annum shall contribute five and
26 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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1 5. members with wages greater than one hundred thousand per annum
2 shall contribute six per centum of annual wages] 1. members with base
3 wages of seventy-five thousand dollars per annum or less shall contrib-
4 ute three per centum of annual wages;
5 2. members with base wages greater than seventy-five thousand per
6 annum, but not more than one hundred thousand per annum shall contribute
7 four per centum of annual wages; and
8 3. members with base wages greater than one hundred thousand per annum
9 shall contribute five per centum of annual wages.
10 Notwithstanding the foregoing, in the first year in which a member has
11 established membership in the New York state and local employees'
12 retirement system, such member shall contribute a percentage of annual
13 wages in accordance with the preceding schedule based upon a projection
14 of annual wages provided by the employer.
15 Notwithstanding the foregoing, during each of the first three plan
16 years (April first to March thirty-first) in which such member has
17 established membership in the New York state and local employees'
18 retirement system, such member shall contribute a percentage of annual
19 wages in accordance with the preceding schedule based upon a projection
20 of annual wages provided by the employer. Notwithstanding the foregoing,
21 when determining the rate at which each such member who became a member
22 of the New York state and local employees' retirement system on or after
23 April first, two thousand twelve shall contribute for any plan year
24 (April first to March thirty-first) between April first, two thousand
25 twenty-two and April first, two thousand [twenty-six] twenty-eight, such
26 rate shall be determined by reference to employees annual base wages of
27 such member in the second plan year (April first to March thirty-first)
28 preceding such current plan year. Base wages shall include regular pay,
29 shift differential pay, location pay, and any increased hiring rate pay,
30 but shall not include any overtime payments.
31 The head of each retirement system shall promulgate such regulations
32 as may be necessary and appropriate with respect to the deduction of
33 such contribution from members' wages and for the maintenance of any
34 special fund or funds with respect to amounts so contributed.
35 § 2. Paragraphs 1 and 2 of subdivision a of section 613 of the retire-
36 ment and social security law, as amended by chapter 510 of the laws of
37 2015, the second undesignated paragraphs of paragraphs 1 and 2 as
38 amended by section 2 of part KK of chapter 55 of the laws of 2024, are
39 amended to read as follows:
40 1. Except as provided by paragraph two of this subdivision, members
41 shall contribute three percent of annual wages to the retirement system
42 in which they have membership, except that beginning April first, two
43 thousand [thirteen] twenty-six for members who first become members of a
44 public retirement system of the state on or after April first, two thou-
45 sand twelve, the rate at which each such member shall contribute in any
46 current plan year (April first to March thirty-first, except for members
47 of the New York city employees' retirement system, New York city teach-
48 ers' retirement system and New York city board of education retirement
49 system, plan year shall mean January first through December thirty-first
50 commencing with the January first next succeeding the effective date of
51 the chapter of the laws of two thousand fifteen that amended this para-
52 graph) shall be determined by reference to the wages of such member in
53 the second plan year (April first to March thirty-first, except for
54 members of the New York city employees' retirement system, New York city
55 teachers' retirement system and New York city board of education retire-
56 ment system, plan year shall mean January first through December thir-
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1 ty-first commencing with the January first next succeeding the effective
2 date of the chapter of the laws of two thousand fifteen that amended
3 this paragraph) preceding such current plan year as follows:
4 [(i) members with wages of forty-five thousand dollars per annum or
5 less shall contribute three per centum of annual wages;
6 (ii) members with wages greater than forty-five thousand per annum,
7 but not more than fifty-five thousand per annum shall contribute three
8 and one-half per centum of annual wages;
9 (iii) members with wages greater than fifty-five thousand per annum,
10 but not more than seventy-five thousand per annum shall contribute four
11 and one-half per centum of annual wages;
12 (iv) members with wages greater than seventy-five thousand per annum
13 but not more than one hundred thousand per annum shall contribute five
14 and three-quarters per centum of annual wages; and
15 (v) members with wages greater than one hundred thousand per annum
16 shall contribute six per centum of annual wages] (i) members with base
17 wages of seventy-five thousand dollars per annum or less shall contrib-
18 ute three per centum of annual wages.
19 (ii) members with base wages greater than seventy-five thousand per
20 annum, but not more than one hundred thousand per annum shall contribute
21 four per centum of annual wages; and
22 (iii) members with base wages greater than one hundred thousand per
23 annum shall contribute five per centum of annual wages.
24 Notwithstanding the foregoing, during each of the first three plan
25 years (April first to March thirty-first, except for members of New York
26 city employees' retirement system, New York city teachers' retirement
27 system and New York city board of education retirement system, plan year
28 shall mean January first through December thirty-first commencing with
29 the January first next succeeding the effective date of chapter five
30 hundred ten of the laws of two thousand fifteen) in which such member
31 has established membership in a public retirement system of the state,
32 such member shall contribute a percentage of annual wages in accordance
33 with the preceding schedule based upon a projection of annual wages
34 provided by the employer. Notwithstanding the foregoing, when determin-
35 ing the rate at which each such member who became a member of the New
36 York state and local employees' retirement system, New York city employ-
37 ees' retirement system, New York city teachers' retirement system and
38 New York city board of education retirement system, on or after April
39 first, two thousand twelve shall contribute for any plan year (April
40 first to March thirty-first, except for members of the New York city
41 employees' retirement system, New York city teachers' retirement system
42 and New York city board of education retirement system, plan year shall
43 mean January first through December thirty-first commencing with January
44 first next succeeding the effective date of chapter five hundred ten of
45 the laws of two thousand fifteen) between April first, two thousand
46 twenty-two and April first, two thousand [twenty-six] twenty-eight, such
47 rate shall be determined by reference to employees annual base wages of
48 such member in the second plan year (April first to March thirty-first)
49 preceding such current plan year. Base wages shall include regular pay,
50 shift differential pay, location pay, and any increased hiring rate pay,
51 but shall not include any overtime payments or compensation earned for
52 extracurricular programs or any other pensionable earnings paid in addi-
53 tion to the annual base wages.
54 The head of each retirement system shall promulgate such regulations
55 as may be necessary and appropriate with respect to the deduction of
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1 such contribution from members' wages and for the maintenance of any
2 special fund or funds with respect to amounts so contributed.
3 2. A member of the New York city employees' retirement system who is
4 eligible to be a participant in the twenty-five-year and age fifty-five
5 retirement program, as defined by paragraph five of subdivision a of
6 section six hundred four-b of this article shall contribute two percent
7 of annual wages to such system effective on the starting date of the
8 elimination of additional member contributions, as defined in an
9 election made pursuant to paragraph ten of subdivision e of section six
10 hundred four-b of this article, except that beginning April first, two
11 thousand [thirteen] twenty-six for members who first become members of
12 the New York city employees' retirement system on or after April first,
13 two thousand twelve, the rate at which each such member shall contribute
14 in any current plan year (April first to March thirty-first, provided,
15 however, that plan year shall mean January first through December thir-
16 ty-first commencing with the January first next succeeding the effective
17 date of the chapter of the laws of two thousand fifteen that amended
18 this paragraph) shall be determined by reference to the wages of such
19 member in the second plan year (April first to March thirty-first,
20 provided, however, that plan year shall mean January first through
21 December thirty-first commencing with the January first next succeeding
22 the effective date of the chapter of the laws of two thousand fifteen
23 that amended this paragraph) preceding such current plan year as
24 follows:
25 [(i) members with wages of forty-five thousand dollars per annum or
26 less shall contribute three per centum of annual wages;
27 (ii) members with wages greater than forty-five thousand per annum,
28 but not more than fifty-five thousand per annum shall contribute three
29 and one-half per centum of annual wages;
30 (iii) members with wages greater than fifty-five thousand per annum,
31 but not more than seventy-five thousand per annum shall contribute four
32 and one-half per centum of annual wages;
33 (iv) members with wages greater than seventy-five thousand per annum
34 but not more than one hundred thousand per annum shall contribute five
35 and three-quarters per centum of annual wages; and
36 (v) members with wages greater than one hundred thousand per annum
37 shall contribute six per centum of annual wages] (i) members with base
38 wages of seventy-five thousand dollars per annum or less shall contrib-
39 ute three per centum of annual wages.
40 (ii) members with base wages greater than seventy-five thousand per
41 annum, but not more than one hundred thousand per annum shall contribute
42 four per centum of annual wages; and
43 (iii) members with base wages greater than one hundred thousand per
44 annum shall contribute five per centum of annual wages.
45 Notwithstanding the foregoing, during each of the first three plan
46 years (April first to March thirty-first, provided, however, that plan
47 year shall mean January first through December thirty-first commencing
48 with the January first next succeeding the effective date of chapter
49 five hundred ten of the laws of two thousand fifteen) in which such
50 member has established membership in the New York city employees'
51 retirement system, such member shall contribute a percentage of annual
52 wages in accordance with the preceding schedule based upon a projection
53 of annual wages provided by the employer. Notwithstanding the foregoing,
54 when determining the rate at which each such member who became a member
55 of, New York city employees' retirement system, on or after April first,
56 two thousand twelve shall contribute for any plan year (April first to
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1 March thirty-first, provided, however, that plan year shall mean January
2 first through December thirty-first commencing with the January first
3 next succeeding the effective date of chapter five hundred ten of the
4 laws of two thousand fifteen) between April first, two thousand twenty-
5 two and April first, two thousand [twenty-six] twenty-eight, such rate
6 shall be determined by reference to employees annual base wages of such
7 member in the second plan year (April first to March thirty-first)
8 preceding such current plan year. Base wages shall include regular pay,
9 shift differential pay, location pay, and any increased hiring rate pay,
10 but shall not include any overtime payments.
11 § 3. Subdivisions f and g of section 613 of the retirement and social
12 security law, as amended by chapter 18 of the laws of 2012, and the
13 second undesignated paragraphs of subdivisions f and g as amended by
14 section 2 of part KK of chapter 55 of the laws of 2024, are amended to
15 read as follows:
16 f. Anything in subdivision a of this section to the contrary notwith-
17 standing a member employed as a uniformed court officer or peace officer
18 in the unified court system who first joins the New York state and local
19 employees' retirement system on or after January first, two thousand ten
20 shall contribute four percent of annual wages to the New York state and
21 local employees' retirement system, except that beginning April first,
22 two thousand [thirteen] twenty-six for members who first become members
23 of the New York state and local employees' retirement system on or after
24 April first, two thousand twelve, the rate at which each such member
25 shall contribute in any current plan year (April first to March thirty-
26 first) shall be determined by reference to the wages of such member in
27 the second plan year (April first to March thirty-first) preceding such
28 current plan year as follows:
29 [1. members with wages of forty-five thousand dollars per annum or
30 less shall contribute three per centum of annual wages;
31 2. members with wages greater than forty-five thousand per annum, but
32 not more than fifty-five thousand per annum shall contribute three and
33 one-half per centum of annual wages;
34 3. members with wages greater than fifty-five thousand per annum, but
35 not more than seventy-five thousand per annum shall contribute four and
36 one-half per centum of annual wages;
37 4. members with wages greater than seventy-five thousand per annum but
38 not more than one hundred thousand per annum shall contribute five and
39 three-quarters per centum of annual wages; and
40 5. members with wages greater than one hundred thousand per annum
41 shall contribute six per centum of annual wages] 1. members with wages
42 of seventy-five thousand dollars per annum or less shall contribute
43 three per centum of annual wages;
44 2. members with wages greater than seventy-five thousand per annum,
45 but not more than one hundred thousand per annum shall contribute four
46 per centum of annual wages; and
47 3. members with wages greater than one hundred thousand per annum
48 shall contribute five per centum of annual wages.
49 Notwithstanding the foregoing, during each of the first three plan
50 years (April first to March thirty-first) in which such member has
51 established membership in the New York state and local employees'
52 retirement system, such member shall contribute a percentage of annual
53 wages in accordance with the preceding schedule based upon a projection
54 of annual wages provided by the employer. Notwithstanding the foregoing,
55 when determining the rate at which each such member who became a member
56 of the New York state and local employees' retirement system on or after
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1 April first, two thousand twelve shall contribute for any plan year
2 (April first to March thirty-first) between April first, two thousand
3 twenty-two and April first, two thousand [twenty-six] twenty-eight, such
4 rate shall be determined by reference to employees annual base wages of
5 such member in the second plan year (April first to March thirty-first)
6 preceding such current plan year. Base wages shall include regular pay,
7 shift differential pay, location pay, and any increased hiring rate pay,
8 but shall not include any overtime payments.
9 The head of the New York state and local employees' retirement system
10 shall promulgate such regulations as may be necessary and appropriate
11 with respect to the deduction of such contribution from members' wages
12 and for the maintenance of any special fund or funds with respect to
13 amounts so contributed.
14 g. Members who first join the New York state teachers' retirement
15 system on or after January first, two thousand ten shall contribute
16 three and one-half percent of annual wages to the New York state teach-
17 ers' retirement system, except that beginning April first, two thousand
18 [thirteen] twenty-six for members who first become members of the New
19 York state teachers' retirement system on or after April first, two
20 thousand twelve, the rate at which each such member shall contribute in
21 any current plan year (July first to June thirtieth) shall be determined
22 by reference to the wages of such member in the second plan year (July
23 first to June thirtieth) preceding such current plan year as follows:
24 [1. members with wages of forty-five thousand dollars per annum or
25 less shall contribute three per centum of annual wages;
26 2. members with wages greater than forty-five thousand per annum, but
27 not more than fifty-five thousand per annum shall contribute three and
28 one-half per centum of annual wages;
29 3. members with wages greater than fifty-five thousand per annum, but
30 not more than seventy-five thousand per annum shall contribute four and
31 one-half per centum of annual wages;
32 4. members with wages greater than seventy-five thousand per annum but
33 not more than one hundred thousand per annum shall contribute five and
34 three-quarters per centum of annual wages; and
35 5. members with wages greater than one hundred thousand per annum
36 shall contribute six per centum of annual wages] 1. members with wages
37 of seventy-five thousand dollars per annum or less shall contribute
38 three per centum of annual wages;
39 2. members with wages greater than seventy-five thousand per annum,
40 but not more than one hundred thousand per annum shall contribute four
41 per centum of annual wages; and
42 3. members with wages greater than one hundred thousand per annum
43 shall contribute five per centum of annual wages.
44 Notwithstanding the foregoing, during each of the first three plan
45 years (July first to June thirtieth) in which such member has estab-
46 lished membership in the New York state teachers' retirement system,
47 such member shall contribute a percentage of annual wages in accordance
48 with the preceding schedule based upon a projection of annual wages
49 provided by the employer. Notwithstanding the foregoing, when determin-
50 ing the contribution rate at which a member of the New York state teach-
51 ers' retirement system with a date of membership on or after April
52 first, two thousand twelve shall contribute for plan years (July first
53 to June thirtieth) between July first, two thousand twenty-two and July
54 first, two thousand [twenty-six] twenty-eight, such rate shall be deter-
55 mined by reference to the member's annual base wages in the second plan
56 year (July first to June thirtieth) preceding such current plan year.
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1 Annual base wages shall not include compensation earned for extracurric-
2 ular programs or any other pensionable earnings paid in addition to the
3 annual base wages.
4 The head of the New York state teachers' retirement system shall
5 promulgate such regulations as may be necessary and appropriate with
6 respect to the deduction of such contribution from members' wages and
7 for the maintenance of any special fund or funds with respect to amounts
8 so contributed.
9 § 4. Section 1204 of the retirement and social security law, as
10 amended by chapter 18 of the laws of 2012, the second undesignated para-
11 graph as amended by section 3 of part KK of chapter 55 of the laws of
12 2024, is amended to read as follows:
13 § 1204. Member contributions. Members who are subject to the
14 provisions of this article shall contribute three percent of annual
15 wages to the retirement system in which they have membership, except
16 that beginning April first, two thousand [thirteen] twenty-six for
17 members who first become members of the New York state and local police
18 and fire retirement system on or after April first, two thousand twelve,
19 the rate at which each such member shall contribute in any current plan
20 year (April first to March thirty-first) shall be determined by refer-
21 ence to the wages of such member in the second plan year (April first to
22 March thirty-first) preceding such current plan year as follows:
23 [a. members with wages of forty-five thousand dollars per annum or
24 less shall contribute three per centum of annual wages;
25 b. members with wages greater than forty-five thousand per annum, but
26 not more than fifty-five thousand per annum shall contribute three and
27 one-half per centum of annual wages;
28 c. members with wages greater than fifty-five thousand per annum, but
29 not more than seventy-five thousand per annum shall contribute four and
30 one-half per centum of annual wages;
31 d. members with wages greater than seventy-five thousand per annum but
32 not more than one hundred thousand per annum shall contribute five and
33 three-quarters per centum of annual wages; and
34 e. members with wages greater than one hundred thousand per annum
35 shall contribute six per centum of annual wages] a. members with wages
36 of seventy-five thousand dollars per annum or less shall contribute
37 three per centum of annual wages;
38 b. members with wages greater than seventy-five thousand per annum,
39 but not more than one hundred thousand per annum shall contribute four
40 per centum of annual wages; and
41 c. members with wages greater than one hundred thousand per annum
42 shall contribute five per centum of annual wages.
43 Notwithstanding the foregoing, during each of the first three plan
44 years (April first to March thirty-first) in which such member has
45 established membership in the New York state and local police and fire
46 retirement system, such member shall contribute a percentage of annual
47 wages in accordance with the preceding schedule based upon a projection
48 of annual wages provided by the employer. Notwithstanding the foregoing,
49 when determining the rate at which each such member who became a member
50 of the New York state and local police and fire retirement system on or
51 after April first, two thousand twelve shall contribute for any plan
52 year (April first to March thirty-first) between April first, two thou-
53 sand twenty-two and April first, two thousand [twenty-six] twenty-eight,
54 such rate shall be determined by reference to employees annual base
55 wages of such member in the second plan year (April first to March thir-
56 ty-first) preceding such current plan year. Base wages shall include
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1 regular pay, shift differential pay, location pay, and any increased
2 hiring rate pay, but shall not include any overtime payments. Effective
3 April first, two thousand twelve, all members subject to the provisions
4 of this article shall not be required to make member contributions on
5 annual wages excluded from the calculation of final average salary
6 pursuant to section twelve hundred three of this article. Nothing in
7 this section, however, shall be construed or deemed to allow members to
8 receive a refund of any member contributions on such wages paid prior to
9 April first, two thousand twelve.
10 Members who are enrolled in a retirement plan that limits the amount
11 of creditable service a member can accrue shall not be required to make
12 contributions pursuant to this section after accruing the maximum amount
13 of service credit allowed by the retirement plan in which they are
14 enrolled. The state comptroller shall promulgate such regulations as may
15 be necessary and appropriate with respect to the deduction of such
16 contribution from members' wages and for the maintenance of any special
17 fund or funds with respect to amounts so contributed. In no way shall
18 the member contributions made pursuant to this section be used to
19 provide for pension increases or annuities of any kind.
20 § 5. Subdivision 2 of section 182 of the education law, as amended by
21 chapter 18 of the laws of 2012, is amended to read as follows:
22 2. Employee contributions. In the case of any electing employee,
23 contributions at the rate of three per centum of [his] such electing
24 employee's state salary shall be deducted by the state comptroller as
25 the employee contribution, provided however, that such employee contrib-
26 ution shall be made by the state in accordance with subdivision one of
27 this section during such period as (a) either section seventy-a of the
28 retirement and social security law or section five hundred twenty-eight
29 of this title provides that the contribution of each member of the New
30 York state employees' retirement system or the New York state teachers'
31 retirement system in the employ of the state shall be reduced by at
32 least eight per centum of [his] such member's compensation, or (b)
33 employee contributions to either such system are no longer required by
34 reason of such system becoming noncontributory for state employees.
35 Notwithstanding any other law to the contrary, beginning April first,
36 two thousand [thirteen] twenty-six any electing employee appointed on or
37 after April first, two thousand twelve, the rate at which each such
38 employee shall contribute in any current plan year (January first to
39 December thirty-first) shall be determined by reference to the wages of
40 such member in the second plan year (January first to December thirty-
41 first) preceding such current plan year as follows:
42 [(a) members with wages of forty-five thousand dollars per annum or
43 less shall contribute three per centum of annual wages;
44 (b) members with wages greater than forty-five thousand per annum, but
45 not more than fifty-five thousand per annum shall contribute three and
46 one-half per centum of annual wages;
47 (c) members with wages greater than fifty-five thousand per annum, but
48 not more than seventy-five thousand per annum shall contribute four and
49 one-half per centum of annual wages;
50 (d) members with wages greater than seventy-five thousand per annum
51 but not more than one hundred thousand per annum shall contribute five
52 and three-quarters per centum of annual wages; and
53 (e) members with wages greater than one hundred thousand per annum
54 shall contribute six per centum of annual wages] (a) members with wages
55 of seventy-five thousand dollars per annum or less shall contribute
56 three per centum of annual wages;
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1 (b) members with wages greater than seventy-five thousand per annum,
2 but not more than one hundred thousand per annum shall contribute four
3 per centum of annual wages; and
4 (c) members with wages greater than one hundred thousand per annum
5 shall contribute five per centum of annual wages.
6 Notwithstanding the foregoing, during each of the first three plan
7 years (January first to December thirty-first) in which such member has
8 established membership in the Education Department Optional Retirement
9 Program, such employee shall contribute a percent of annual wages in
10 accordance with the preceding schedule based upon a projection of annual
11 wages provided by the employer, provided, further, however, that
12 notwithstanding any other law to the contrary, on and after April first,
13 two thousand twenty-six, for any electing employee who is subject to
14 this paragraph, the state shall contribute an additional one percent of
15 the employee contribution pursuant to the provisions of this section on
16 behalf of the employee.
17 § 6. Paragraph (d) of subdivision 2 of section 392 of the education
18 law, as added by chapter 18 of the laws of 2012, is amended to read as
19 follows:
20 (d) Notwithstanding any other law to the contrary, beginning April
21 first, two thousand thirteen any electing employee appointed on or after
22 April first, two thousand [twelve] twenty-six, the rate at which each
23 such employee shall contribute in any current plan year (January first
24 to December thirty-first) shall be determined by reference to the wages
25 of such member in the second plan year (January first to December thir-
26 ty-first) preceding such current plan year as follows:
27 [(i) members with wages of forty-five thousand dollars per annum or
28 less shall contribute three per centum of annual wages;
29 (ii) members with wages greater than forty-five thousand per annum,
30 but not more than fifty-five thousand per annum shall contribute three
31 and one-half per centum of annual wages;
32 (iii) members with wages greater than fifty-five thousand per annum,
33 but not more than seventy-five thousand per annum shall contribute four
34 and one-half per centum of annual wages;
35 (iv) members with wages greater than seventy-five thousand per annum
36 but not more than one hundred thousand per annum shall contribute five
37 and three-quarters per centum of annual wages; and
38 (v) members with wages greater than one hundred thousand per annum
39 shall contribute six per centum of annual wages] (i) members with wages
40 of seventy-five thousand dollars per annum or less shall contribute
41 three per centum of annual wages;
42 (ii) members with wages greater than seventy-five thousand per annum,
43 but not more than one hundred thousand per annum shall contribute four
44 per centum of annual wages; and
45 (iii) members with wages greater than one hundred thousand per annum
46 shall contribute five per centum of annual wages.
47 Notwithstanding the foregoing, during each of the first three plan
48 years (January first to December thirty-first) in which such member has
49 established membership in the State University Optional Retirement
50 Program, such employee shall contribute a percent of annual wages in
51 accordance with the preceding schedule based upon a projection of annual
52 wages provided by the employer, provided, further, however, that
53 notwithstanding any other law to the contrary, on and after April first,
54 two thousand twenty-six, for any electing employee who is subject to
55 this paragraph, the state shall contribute an additional one percent of
A. 10939 10
1 the employee contribution pursuant to the provisions of this section on
2 behalf of the employee.
3 § 7. Paragraph (d) of subdivision 2 of section 6252 of the education
4 law, as added by chapter 18 of the laws of 2012, is amended to read as
5 follows:
6 (d) Notwithstanding any other law to the contrary, beginning April
7 first, two thousand [thirteen] twenty-six any electing employee
8 appointed on or after April first, two thousand twelve, the rate at
9 which each such employee shall contribute in any current plan year
10 (January first to December thirty-first) shall be determined by refer-
11 ence to the wages of such member in the second plan year (January first
12 to December thirty-first) preceding such current plan year as follows:
13 [(1) members with wages of forty-five thousand dollars per annum or
14 less shall contribute three per centum of annual wages;
15 (2) members with wages greater than forty-five thousand per annum, but
16 not more than fifty-five thousand per annum shall contribute three and
17 one-half per centum of annual wages;
18 (3) members with wages greater than fifty-five thousand per annum, but
19 not more than seventy-five thousand per annum shall contribute four and
20 one-half per centum of annual wages;
21 (4) members with wages greater than seventy-five thousand per annum
22 but not more than one hundred thousand per annum shall contribute five
23 and three-quarters per centum of annual wages; and
24 (5) members with wages greater than one hundred thousand per annum
25 shall contribute six per centum of annual wages] (1) members with wages
26 of seventy-five thousand dollars per annum or less shall contribute
27 three per centum of annual wages;
28 (2) members with wages greater than seventy-five thousand per annum,
29 but not more than one hundred thousand per annum shall contribute four
30 per centum of annual wages; and
31 (3) members with wages greater than one hundred thousand per annum
32 shall contribute five per centum of annual wages.
33 Notwithstanding the foregoing, during each of the first three plan
34 years (January first to December thirty-first) in which such member has
35 established membership in the Board of Higher Education Optional Retire-
36 ment Program, such employee shall contribute a percent of annual wages
37 in accordance with the preceding schedule based upon a projection of
38 annual wages provided by the employer, provided, further, however, that
39 notwithstanding any other law to the contrary, on and after April first,
40 two thousand twenty-six, for any electing employee who is subject to
41 this paragraph, the state shall contribute an additional one percent of
42 the employee contribution pursuant to the provisions of this section on
43 behalf of the employee.
44 § 8. Notwithstanding any other provision of law to the contrary, none
45 of the provisions of this act shall be subject to section 25 of the
46 retirement and social security law.
47 § 9. This act shall take effect immediately and shall be deemed to
48 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 member’s
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.
