Tag Archives: Overtime

Overtime and Limits for Tier 5 and 6 Members

We base your NYSLRS pension on your years of credited service and your final average salary (FAS). FAS is the average of the wages you earned during 36 consecutive months (60 consecutive months for Tier 6 members) when your earnings were highest. The calculation of your FAS can include overtime pay that you’ve earned during the FAS period.

Tier 5 and Tier 6 members have limits on how much overtime can be included in their FAS calculation. Overtime pay that exceeds these limits cannot be used in a Tier 5 or 6 member’s FAS calculation.  Therefore, members and employers are not required to make pension contributions on overtime pay that exceeds the annual limit.

Your employer should not report any overtime pay in excess of this cap to NYSLRS as it cannot be used in a member’s final average salary calculation. Each year, NYSLRS publishes the maximum overtime pay that should be reported and reminds employers not to report overtime earnings that exceed the limit.

Tier 5 Overtime Limits

The overtime limit for Tier 5 began in 2010 at $15,000 and increases each calendar year by three percent. This year, the overtime limit for ERS Tier 5 members is $17,910.78. In 2017, the overtime limit for ERS Tier 5 members will be $18,448.11. For PFRS Tier 5 members, overtime is limited to 15 percent of a member’s regular earnings.

Tier 5 & 6 overtime limits

Tier 6 Overtime Limits

For ERS Tier 6 members, the overtime limit is based on the State’s fiscal year (April 1 – March 31). From April 1, 2015 – March 31, 2016, the overtime limit for ERS Tier 6 members is $15,608. From April 1, 2016 – March 31, 2017, that limit will increase to $15,721. The fiscal year limit is adjusted for inflation based on the annual Consumer Price Index (CPI). The overtime limit for PFRS Tier 6 members is limited to 15 percent of a member’s regular earnings.

Please visit our website if you have questions about Tier 5 overtime limits or Tier 6 overtime limits.

Overtime Limits and Tier 5 & 6 Members

In the New York State and Local Retirement System (NYSLRS), Tier 5 and 6 members have limits on the amount of overtime (OT) we can use in the calculation of their pension. Any OT amount in excess of these limits will get excluded from the member’s final average salary.

For Employees’ Retirement System (ERS) and Police and Fire Retirement System (PFRS) Tier 5 members and PFRS Tier 6 members, the OT limit is based on the calendar year; for ERS Tier 6 members, the limit is based on the State’s fiscal year (April 1 – March 31).

ERS Tier 5 OT Limit

The OT limit for ERS Tier 5 began in 2010 at $15,000 and increases by 3 percent each year. This year (calendar year 2015), the OT limit is $17,389.11.

PFRS Tier 5 OT Limit

In PFRS Tier 5, any overtime paid to a member in excess of 15 percent of their regular annual wages can’t be included in their final average salary calculation. This percentage doesn’t vary.

ERS Tier 6 OT Limit

The OT limit for ERS Tier 6 began in State fiscal year 2012-13 at $15,000. The limit increases each fiscal year, and is based on the Consumer Price Index on December 31 of the previous year. This fiscal year (2015-16), the OT limit is $15,608.

PFRS Tier 6 OT Limit

In PFRS Tier 6, any overtime paid to a member in excess of 15 percent of their regular annual wages can’t be included in their final average salary calculation. This percentage doesn’t vary.

Overtime-Limit

If you’d like to know more about what can or can’t be included in your retirement calculation, find your retirement plan publication on our Publications Page. If you have questions about overtime and the overtime limit, please contact us.