Tier 6 Agreement Brings Fairness, Boosts Affordability

ALBANY, NY (05/26/2026) (readMedia)-- The Civil Service Employees Association (CSEA) applauds Gov. Kathy Hochul and the state legislature for reaching an agreement on pension reform that will improve retirements for public employees under Tiers 5 and 6.

Reforms to Tiers 5 and 6 will provide meaningful financial relief to CSEA members and other public employees across New York state. This agreement includes a substantial reduction in employee contribution rates, allowing Tier 6 members to keep more of what they earn. Nearly 90% of CSEA members will now pay a 3% contribution rate, compared to roughly 30% under the previous system.

"Fighting to Fix Tier 6 is CSEA's highest priority, as affordability is one of the greatest challenges our union members face," said CSEA President Mary E. Sullivan. "At a time when workers are struggling with rising costs for housing, groceries, child care, transportation and health care, these changes will put money back into CSEA members' pockets and help working families keep more of what they earn. We applaud Governor Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie for their leadership and support in fighting for pension fairness for the public workforce."

These changes will benefit all CSEA members in Tier 6. By expanding the 3% contribution band, this agreement ensures that CSEA members can advance in their careers and earn raises without being pushed into sharply higher contribution rates that reduce their take-home pay.

The Tier 6 agreement also increases the amount of overtime that can be counted towards a Tier 6 member's pension. The previous cap of $21,589 in overtime earnings will increase to $30,000 and be indexed to inflation moving forward. This change will improve retirement security for employees who regularly work overtime throughout their careers.

This agreement is the most significant Tier 6 reform to date. These changes build on recent pension victories secured by CSEA, including reducing the vesting period, improving final average salary calculations and excluding overtime earnings from pension contribution rate calculations.

"Our union members stood up and fought for these reforms by contacting their legislators, signing postcards and taking part in rallies to fight for pension reforms," said Sullivan. "These reforms are a major step forward toward pension parity, but we still have more work to do."

###

About CSEA:

The Civil Service Employees Association (CSEA) is one of the largest and most influential unions in New York and the United States. CSEA has about 250,000 members and represents state, county, municipal, school district, child care, and private sector employees. Formed in 1910, CSEA has improved the lives of hardworking New Yorkers for more than 100 years and is the largest affiliate of the American Federation of State, County, and Municipal Employees (AFSCME). For more information, visit cseany.org.