NYSTRS Contribution Rates by Tier: What You Pay and When It Stops

Your NYSTRS contribution rate is deducted from every paycheck, but the rules for how much you pay — and whether it ever stops — depend entirely on your tier. Here is what each tier actually pays.

Tier 1 and Tier 2: No Current Contributions

Tier 1 members (joined before July 1, 1973) and Tier 2 members (joined July 1, 1973 through July 26, 1976) do not make ongoing member contributions to NYSTRS. These tiers completed their contribution obligations decades ago under older statutory rules.

Tier 3: 3% of Gross Salary

Tier 3 members (joined July 27, 1976 through August 31, 1983) contribute 3% of their gross salary. This contribution continues for the duration of active service — there is no ten-year cutoff for Tier 3.

Tier 4: 3% for Ten Years, Then Nothing

Tier 4 members (joined September 1, 1983 through December 31, 2009) contribute 3% of gross salary, but only for their first ten years of credited service or membership. Once a Tier 4 member completes ten years, mandatory contributions stop entirely. From that point on, the employer contribution funds the pension in full.

This is one of the most significant financial advantages of Tier 4 membership. A teacher who joined at age 25 stops contributing at 35 and accumulates another 20+ years of pension-earning service with zero payroll deductions.

Tier 5: 3.5% of Gross Salary (No Cutoff)

Tier 5 members (joined January 1, 2010 through March 31, 2012) contribute 3.5% of gross salary for the full duration of their employment. There is no ten-year rule — contributions continue until retirement or separation.

Tier 6: Variable Rate Based on Salary Bracket

Tier 6 members (joined on or after April 1, 2012) pay a variable contribution rate that depends on their annual wages. The rate brackets are:

• $45,000 or less: 3.0%
• $45,000.01 to $55,000: 3.5%
• $55,000.01 to $75,000: 4.5%
• $75,000.01 to $100,000: 5.75%
• Over $100,000: 6.0%

The key detail: only base wages determined your bracket during the statutory exclusion period, not your total compensation. Chapter 55 of the Laws of 2024 (Part KK) excluded extracurricular stipends, coaching pay, summer school pay, and other non-base earnings from the calculation that determines which bracket you fall into through June 30, 2026. That period has ended; verify the rule for later salary periods with NYSTRS before relying on the same bracket treatment. During the exclusion period, you still contributed on total reportable salary, but the bracket was set using base wages only.

Tier 6 contributions also have no ten-year cutoff. You pay for your entire career.

How Contributions Affect Your Pension

Member contributions do not directly increase your pension benefit. Your benefit is calculated using the pension formula (pension factor × Final Average Salary), not the amount you contributed. Contributions fund the system's overall trust fund alongside employer contributions and investment returns.

However, if you leave NYSTRS before vesting (five years of service credit), you can withdraw your accumulated contributions plus interest. Once vested, your contributions are effectively locked into the system as part of your pension entitlement.

If you are weighing how your contribution history fits into your overall retirement timeline, the NYSTRS Retirement Guide breaks down the full pension formula for each tier alongside the contribution rules.

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