(ALBANY, NEW YORK) – A deal has been reached to increase Tier 6 pensions for more than 830,000 New York State Public Employees, as well as allow Teachers with 30 years on-the-job to retire at age 58 rather than 63 - and increase the amount of overtime that can be counted towards every Municipal Tier 6 Member’s pension throughout the State.

New York State AFL-CIO President Mario Cilento released the following statement: The Union Movement’s fight to fix Tier 6 has always been about dignity, self-respect and financial independence in retirement. Whether it's a reduction in pension contribution rates, lifting the cap on pensionable overtime or reducing the retirement age, these changes are a clear victory for Public Sector Workers across this State. I am extremely proud of the unity and solidarity displayed by all our affiliated Unions in the Public and Private Sectors, as well as in the Building Trades Unions, throughout this campaign. We were able to build upon previous pension improvements over the past five years, including improvements to vesting and final average salary. This demonstrates what the Union Movement can achieve when we stand together and raise our voices to improve the quality of life for all Working People. I want to thank Governor (Kathy) Hochul and acknowledge the collaborative efforts of (State) Senate Majority Leader Andrea Stewart-Cousins, Assembly Speaker Carl Heastie and the Democratic Majorities in both Houses of the Legislature for recognizing the importance of these changes, which will address the recruitment and retention challenges of Public Employees and thereby improve the services we all rely on. 

United Federation of Teachers (UFT) Teachers Michael Mulgrew also released a statement: Albany heard us and took a major step in correcting the injustice of Tier 6. Lowering the retirement age for educators from 63 to 58 after 30 years of service will make the pensions better and fairer for current and future Employees. It shows that progress is possible when we stand together.

When the original Tier 6 reforms were first put in place, the retirement age of Public Workers hired after April 2012 was pushed from 55 to 62 to earn a full pension.

The cost-cutting measures also raised the Employee contribution and slimmed down benefits for recent hires.

The lowered retirement age only applies to Teachers and Teaching Assistants, not other Government Workers in different retirement systems.

The plan is estimated to cost the State $118 million year and $440 million to local Governments and School Districts.

The agreement is different depending on job title.

Only Educators are expected to have a reduced retirement age.

All other Workers currently eligible to retire at 63 without penalty will remain at that age.

However, pensions for all Public Employees will increase under the revised Tier 6 Program.

The deal included in the Fiscal Year 2027 State Budget features reductions in pension contributions for hundreds of thousands of Workers within Tier 6 and an increase in the amount of overtime pay that can count towards the final calculation for Workers’ Pension Benefits.

The finalized agreement is a fraction of the $1.5 billion in changes Labor Leaders pushed that would have lowered the retirement age to 55 for all Workers within Tier 6 - but the agreement is a substantial pension increase for all Municipal Workers in New York State.

“This victory is the result of diligent lobbying efforts and Member support” Transit Workers Union (TWU) Local 100 President John Chiarello said. “These changes do not happen overnight, but together we will keep fighting for the equity we deserve.”

Starting January 1st, 2027, 25% of overtime earnings for Police and Firefighters will count towards their final calculated retirement benefit, up from 15%.

For all other Employees, the amount of overtime included in the retirement benefit calculation will increase from $22,000 to $30,000.

To Directly Access This Labor News Report, Go To: NYS and Unions Change Tier 6 – LaborPress