New Legislation Impacts Tier 6 NYSTRS Members

6/4/2026

Issue No. 2026-6

To: Chief School Administrators 
College and University Presidents 
District Contacts 
Employer Secure Area Contacts

Two pieces of legislation impacting NYSTRS members were recently enacted as part of the state budget. Both affect the benefits of Tier 6 members (i.e., members with a date of membership on or after April 1, 2012). One extends the temporary change that determines member contribution rates solely on base wages for two more years. The second lowers the age at which members can retire without an age-related reduction.

The legislation was enacted as part of Chapter 58 of the Laws of 2026. See below and refer to the Legislation/2026 Legislation page for additional information.

Please note these changes will not impact the estimated employer contribution rate (ECR) applicable to fiscal year 2026-27 member salaries that was provided in Administrative Bulletin 2026-1. The estimated annual cost of these changes is 0.46% of pay, or $94.9 million. This cost will first be reflected in the ECR applicable to fiscal year 2027-28 salaries. 

Tier 6 Contribution Rate Change Extended Two More Years 

Part XX of Chapter 58 of the Laws of 2026 is a further two-year extension of Chapter 56 of the Laws of 2022 (Part SS), which was due to expire on June 30, 2026. This provision amended the Retirement and Social Security Law to permit the employee contribution rate for Tier 6 members to be determined using only a member’s annual base wages for contributions to be made during the fiscal years ending June 30, 2027 and June 30, 2028.

Compensation earned for extracurricular programs or any other pensionable earnings paid in addition to annual base wages will not be included in the employee contribution rate determination, as it normally would.

Although the employee contribution percentage rate for those years will be determined only on base wages, Tier 6 members must pay the applicable employee contribution rate on all their pensionable earnings.

As a reminder, the Tier 6 employee contribution rate for each of the member’s first three years of membership is based on projected reportable earnings provided by the employer. Thereafter, their employee contribution rate is determined by a two-year look-back using actual salary reported. 

Under the new law, the employee contribution rate of a Tier 6 member in the fourth school year of membership and later for the school year ended June 30, 2027 would be based only on the member’s base salary in the school year that ended on June 30, 2025. Likewise, their employee contribution rate for the school year ended June 30, 2028 would be based only on that member’s base salary in the school year ended on June 30, 2026.

Change to Age at Which Tier 6 Members May Retire Without an Age-Related Reduction

Part XX of Chapter 58 of the Laws of 2026 amends various sections of the Retirement and Social Security Law to change the age at which Tier 6 members may retire without reduction of their retirement benefit from age 63 to age 58 with the completion of 30 or more years of service credit. This legislation is effective immediately and shall be deemed to have been in full force and effect on and after April 1, 2026.