NY A05487

Reduces employee pension contribution rates for Tier 5 and Tier 6 members of New York public retirement systems to a flat 3% of annual wages, eliminating the current tiered contribution schedule based on salary levels.

Removes wage-based contribution brackets that previously required higher earners (earning over $45,000 annually) to contribute between 3.5% and 6% based on income level.

Applies changes to multiple retirement systems including the New York State Teachers' Retirement System, New York State and Local Employees' Retirement System, and New York City retirement systems.

Eliminates certain existing provisions requiring contributions for all years of credited and creditable service for members retiring under specific programs.

Becomes effective 60 days after enactment, with no refunds issued for contributions made or collected before the effective date; estimated annual employer cost increase of $136.5 million for the Teachers' Retirement System.