New York Eases Tier 6 Pension Rules, Raising Overtime Cap to 25%
Updated
Updated · WRGB · Jun 11
New York Eases Tier 6 Pension Rules, Raising Overtime Cap to 25%
2 articles · Updated · WRGB · Jun 11
Summary
New York’s Tier 6 pension changes lower contribution rates for municipalities and expand pensionable overtime, Nathaniel Nichols said in discussing the revised system.
The overtime cap counted toward pensions rises to 25% from 15%, increasing the share of extra pay that can factor into retirement benefits.
Teachers also gain earlier retirement eligibility under the changes, with the retirement age dropping to 58 from 63 for those with 30 years of service.
For municipalities, the revisions could reduce pension-cost pressure while altering long-term retirement planning for public employees covered by Tier 6.