Tier 6 reform a 'priority' for unions in 2026

The reforms to the Tier 6 pension plan would be the first since 2024.

United Federation of Teachers

The United Federation of Teachers is going full tilt on pushing for reforms to the state’s Tier 6 retirement plan this legislative session, seeking the first updates to the pension plan since 2024.  In an interview earlier this month, Michael Mulgrew, president of the UFT, reiterated his goal to lower the retirement age for municipal employees on the Tier 6 plan from 63 to 55. 

“Affordability has become a massive issue, but we have the data showing that all of these public sector agencies have openings because we can't fill these jobs,” he said. “When you tell people they have to work to 63, they aren't coming. It's just going to get worse if we don't make changes.” 

Mulgrew said he expects the changes the union is pushing for would cost $500 million statewide, which he said is negligible when looking at the overall size of the state’s budget.  

To pressure lawmakers on the change, the union has launched a 'Fix Tier 6' campaign in schools across the city, so teachers get involved in pushing the reforms. It will culminate in a March 8 rally in Albany, just as budget season in the cold capital begins to heat up.  

"Tier 6 is driving away new teachers," said Maggie Joyce, a teacher and UFT union leader in the Bronx. "Teachers coming out of college are looking at the fact that they have to work until age 63, and that's scaring them away from our system. We have to fix Tier 6." 

Teachers hope that lowering the retirement age will draw more New Yorkers to the profession.

United Federation of Teachers

Most workers now in Tier 6

Created by former Governor Andrew Cuomo in 2012 during a period of fiscal uncertainty, the Tier 6 plan covers most public employees whose tenure began after April 1, 2012. Under Tier 6, workers are required to contribute more into their pension plans – up to 6 percent of their earnings – as their salary increases.  

The plan also capped the amount of pensionable overtime pay for municipal workers, raised the retirement age and curtailed early retirement options for those looking to leave the workforce at 55. As of March 2025, between the New York State and Local Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS), more than 485,000 New Yorkers are in Tier 6, making up 66 percent of all retirement system members.  

Most of the rest – about 208,000, or just over 28 percent – are in Tier 3 or 4, which have the same level of benefits. Those in Tier 3 or 4 face a 27 percent cut in their pensions for retiring at 55 and only pay three percent of their gross annual salaries into their pension for the first ten years of employment. Those in Tier 6 pay up to six percent for the entirety of their career and receive a 52 percent reduction in benefits if they retire at 55.

Unions aligned on reform

Henry Garrido, the executive director of District Council 37, said that reforming Tier 6 is the union’s “number one priority for our state legislative agenda.” 

But the union leader disagreed with Mulgrew on the UFT’s goal to lower the retirement age, arguing that pushing to lower each worker’s contribution to their pension instead would make a larger difference for the municipal workforce. 

"For most of the city workers, they're not lasting long enough to early retire,” he said. “It would be much more beneficial for the city and its workers by lowering the contribution. We think that's charging people more to do the same work, it's just inherently unfair, and we want to see that change." 

Mario Cilento, the president of the New York State AFL-CIO said in an emailed statement that fixing Tier 6 is a “priority” for the union coalition.  

“Tier VI has become an obstacle to recruitment and retention, causing staffing shortages that threaten the quality of public services such as education, health care, transportation and emergency response, which are essential to our communities,” he said. “Every public sector worker deserves to live their retirement years with dignity, self-respect and financial independence. Fixing Tier VI will go a long way toward making that a reality for our public sector workforce in this state.” 

In 2024, a coalition of public-sector unions successfully pushed reforms to Tier 6 through the state budget, hoping to make it easier to attract New Yorkers to government jobs. Under those reforms, an employee's final average salary is now calculated by the three consecutive years when an employee earned the most instead of five years. 

Also as part of those reforms, Tier 6 members’ overtime earnings are excluded from the calculation of how much they contribute to their pensions. Unions didn’t push for further changes last year, but are throwing their hats back in the ring this year, an election year for Governor Kathy Hochul, who was governor when the previous reforms were passed.

But Hochul has ruled out tax increases on rich New Yorkers that could potentially pay for pension reforms, and she has thrown her weight behind other costly priorities like universal childcare.  

"Governor Hochul is proud to support New York's state and municipal employees and has enacted significant reforms to enhance the retirement benefits for Tier 6 members," a spokesperson for Hochul said in a statement.  "Governor Hochul continues to negotiate in good faith with the senate and assembly to pass a budget that makes New York safer and more affordable.”

Regardless of Hochul’s priorities, UFT members, over 78,000 of whom are in Tier 6, according to the union, will keep pushing for reform. 

"Teaching is an exciting, interesting and demanding job. To newer teachers –  who are using all of their energy mastering their work in the classroom – retiring at age 63 is an ungodly number,” said Peter Saccoccio, a Brooklyn Teacher. “So our message is – we have a vice, let's try to fix this."