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NYS Comptroller

Thomas P. DiNapoli

Overtime and Earnings Limits for Tier 6

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Overview

Retirement and Social Security Law limits pensionable earnings, that is, the earnings that can be included in the calculation of a NYSLRS pension. Tier 6 members are subject to limits on the amount of overtime and the total earnings that can be included.

Overtime Limits

Overtime limits depend on whether you are in the Employees’ Retirement System (ERS) or the Police and Fire Retirement System (PFRS).

Employees’ Retirement System Members

Overtime pay in excess of an annual cap is not pensionable and cannot be used in a final average salary (FAS) 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.

Calendar Year Overtime Limit
2020 $17,067
2019 $16,779
2018 $16,406
Fiscal Year* Overtime Limit
*The State’s fiscal year runs April 1 through March 31.
**Prorated overtime cap for April 1, 2017, through December 31, 2017.
2017** $12,036
2016 $15,608
2015 $15,490
2014 $15,261
2013 $15,000

Police and Fire Retirement System Members

Overtime pay in excess of 15 percent of your regular annual wages is not pensionable and cannot be used in the calculation of your FAS.

Reporting Information for Employers

Employers submitting a Legacy file 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.

Earnings Limitations

Pensionable earnings (the earnings that can be included in the calculation of a NYSLRS pension) for ERS and PFRS Tier 6 members are limited to the Governor’s salary.

From April 1, 2012 through December 31, 2018, the Governor’s annual salary was $179,000. It was increased to $200,000 as of January 1, 2019, and will increase to $225,000 as of January 1, 2020.

The earnings limit is applied on a State fiscal year (April 1 – March 31) basis and will be prorated for Fiscal year end 2019 and 2020. The maximum earnings that can be applied toward your pension are shown in the chart below.

Earnings Period Earnings Limit
Beginning April 1, 2020 $225,000
April 1, 2019 through March 31, 2020 $206,250
April 1, 2018 through March 31, 2019 $184,250

Reporting Information for Employers

Employers should continue to report earnings and days worked once the member reaches the Governor’s salary limit, however, only take contributions from earnings below the limit.

(Rev. 11/19)