NY S06735

Establishes a new Tier 6 retirement plan for employees hired on or after April 1, 2012 across New York State and New York City public retirement systems, with reduced benefits compared to previous tiers.

Increases normal retirement age to 63 (from 62 for state systems and 55-62 for various NYC plans) and requires 10 years of vesting (up from 5 years for most employees).

Changes benefit calculation formulas: general members receive 1.75% per year for first 20 years of service plus 2.0% for years 20-30; caps final average salary at Governor's salary and uses 5-year average (vs. 3-year previously).

Implements tiered employee contribution schedule (3-6% based on salary) beginning April 1, 2013, with higher earners contributing larger percentages.

Excludes certain compensation from pension calculations including overtime above specified caps, lump-sum payments for unused leave, termination pay, and wages from third and subsequent employers; caps unused sick leave credit at 100 days for new members.