Average employer pension contribution rates will decline slightly for New York's civilian public employees and rise for police and fire employees in the 2027-28 state fiscal year.
State Comptroller Thomas DiNapoli said the Employees' Retirement System rate will decrease from 17.6% to 17.3% of payroll, while the Police and Fire Retirement System rate will increase from 36.5% to 37.4%.
The rates apply to more than 3,000 participating employers in the New York State and Local Retirement System. Individual bills vary based on employee salaries, benefit plans and how workers are distributed among the six membership tiers.
Payments under the new rates are due Feb. 1, 2028. Employers can receive a discount by paying by Dec. 15, 2027.
NYSLRS includes more than 300 retirement-plan combinations and pays service and disability retirement benefits to public workers along with death benefits to survivors.
The system paid more than $17.5 billion in benefits during the fiscal year that ended March 31, 2026. The Employees' Retirement System has about 1.2 million members and 493,000 retirees and beneficiaries receiving payments.
The Police and Fire Retirement System has about 79,000 members and 42,000 retirees and beneficiaries receiving benefits.
Contribution rates are based on investment performance and actuarial assumptions. DiNapoli's office said other factors include salary growth, employer plan choices, retirement patterns and recent changes affecting Tiers 5 and 6.
The retirement fund's assumed long-term investment return will remain 5.9%, below the 7% median reported for public pension funds in July 2026.
NYSLRS had a funded ratio of 96.8% as of March 31 and an estimated value of $309.7 billion as of June 30. A higher funded ratio indicates the system has more of the assets projected to be needed for promised benefits.
DiNapoli's office provides employers with two-year pension-bill projections to help with local budget planning.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.