This year’s New York State budget cycle has inspired the government employees of the state and local
municipalities to launch another attempt to fix Tier 6 of the retirement system. More than half of Ulster
County employees active in the New York State Retirement System are Tier 6. Any changes to Tier 6 will
likely improve recruitment and retention, however, if NYS does not absorb some the associated cost, the
reform could have a significant financial impact on Ulster County, school districts and all other local
municipalities within the County. This prompted us to take a deeper dive into the differences between
Tiers. To fully understand the Tier 6 discrepancies, we look at contribution amounts, the Final Average
Salary (FAS) calculation, the pension percentage calculation, and the early retirement penalties.
New York State Tier Differences
