The formula used to calculate a NYSLRS pension varies by tier and plan, but your credited service and final average earnings (FAE) are the main factors. You earn service credit for paid service with participating employers, and you also may purchase credit for previous public employment. Your FAE is the average wage you earned during the period when your earnings were highest (36 consecutive months for Tier 5 and 60 consecutive months for Tier 6).
Your FAE can include overtime pay you earn during that period, but for Tier 5 and 6 members there are limits to how much overtime can be used to calculate your pension.
You can still earn overtime pay beyond the limit — it just won’t be used in your FAE. Members also aren’t required to make contributions on overtime pay that is above the limit.
The overtime limit for Tier 5 Employees’ Retirement System (ERS) members increases each calendar year by 3 percent. In 2022, the limit for Tier 5 ERS members is $21,386.41.
For Tier 5 Police and Fire Retirement System (PFRS) members, the overtime limit is 15 percent of your regular earnings each calendar year.
The overtime limit for Tier 6 ERS members increases each calendar year based on the annual increase of the Consumer Price Index (CPI). In 2022, the limit for Tier 6 ERS members is $18,233.
For Tier 6 PFRS members, the overtime limit is 15 percent of your regular earnings each calendar year.
Find more information about the overtime limit, FAE and retirement calculations in your retirement plan booklet, available on our Publications page.