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NYS Comptroller

Thomas P. DiNapoli

Overtime Limits for Tier 6

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Employees’ Retirement System Members

Overtime pay in excess of an annual cap is not included in the definition of wages. It should not be reported to the Retirement System and cannot be used in a final average salary calculation.

Effective January 1, 2018, the overtime cap increases each calendar year. The amount of the increase is based on the increase in the Consumer Price Index for the one-year period ending September 30 of the previous year. Prior to January 1, 2018, the overtime cap increased each fiscal year.

To transition from a fiscal year to a calendar year period, the overtime cap for ERS Tier 6 members will be prorated from April 1, 2017 to December 31, 2017. The prorated overtime cap will be $12,036.

Employers should report overtime until the member has reached the overtime cap for that calendar year. Once the cap has been reached, employers should not report any additional overtime paid to that member for the remainder of the calendar year. The member’s salary and days worked must still be reported; only overtime pay that exceeds the cap should not be reported. In addition, contributions should not be collected on any overtime amounts greater than the cap.

Calendar Year Overtime Limit
2018 $16,406
Fiscal Year* Overtime Limit
*The State’s Fiscal Year runs from April 1 through March 31.
2013 $15,000
2014 $15,261
2015 $15,490
2016 $15,608
2017 $15,721

Other Earnings Limitations

Earnings from more than two separate employers in any one year will be excluded from the definition of wages for Retirement System purposes.

Police and Fire Retirement System Members

Overtime pay in excess of 15 percent of a member’s regular annual wages cannot be used in the calculation of a member’s final average salary.

Employers should report overtime until the member has reached the overtime cap for that calendar year. Once the cap has been reached, employers should not report any additional overtime paid to that member for the remainder of the calendar year. The member’s salary and days worked must still be reported; only overtime pay that exceeds the cap should not be reported. In addition, contributions should not be collected on any overtime amounts greater than the cap.

(Rev. 11/17)