New York’s public employers will see higher pension bills next year, following an announcement this week from State Comptroller Thomas DiNapoli.
On Thursday, DiNapoli said contribution rates for the State and Local Retirement System (NYSLRS) will rise in the 2026–27 fiscal year, due to market volatility, salary increases, and benefit changes.
For most participating employers:
- Rates for the Employees’ Retirement System (ERS) will increase from 16.5% to 17.6% of payroll.
- Rates for the Police and Fire Retirement System (PFRS) will rise from 33.7% to 36.5% of payroll.
“These adjustments will help ensure public employees and their families receive the retirement benefits promised to them,” DiNapoli said. “New York’s pension fund remains one of the strongest and best funded in the country.”
Why the rates are going up
NYSLRS, which pays retirement and death benefits to over 1.2 million members, is influenced by several financial and demographic factors. The latest rate hike reflects:
- Turbulence in financial markets
- Rising public employee salaries
- Changes to retirement tiers, including reforms to Tier 6
- Member retirement trends
Despite the increase, NYSLRS continues to maintain a strong financial footing, with a 92.2% funded ratio as of March 31, 2025 — meaning it has nearly all the money needed to meet its long-term obligations.
Payment timing and planning tools
Employers’ payments based on the new rates are due by February 1, 2027, but those who pay early — by December 15, 2026 — will receive a discount.
To help local governments plan ahead, DiNapoli’s office provides a two-year projection tool, which takes into account variables like salary levels, employee tiers, and retirement plans.
The fund’s long-term investment return assumption remains at 5.9%, among the lowest in the nation. Only Kentucky’s system has a lower assumed return, according to national data from July 2025.
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