Monthly Archives: April 2017

Power of Attorney

Power of AttorneyA Power of Attorney document (POA) allows an agent that you designate to make decisions for you in your legal, financial and business dealings. A POA is written legal authority given by one party (the principal) to another (the agent or attorney-in-fact) to act on the principal’s behalf. The person authorizing the other to act is referred to as the principal, grantor or the donor of the power. The person who has been granted authority to act on behalf of another (i.e. the principal) is called the agent or the attorney-in-fact.

A POA can be a helpful tool in making emergency or unexpected decisions about your retirement benefits. Usually, NYSLRS cannot release benefit information to anyone without your authorization — even to close family members. However, once we have a copy of a valid POA on record, we can discuss your pension with an agent you choose in your POA. With a valid POA, your agent can also change your address with NYSLRS or even adjust your tax withholding.

An agent cannot designate beneficiaries, elect certain options, or make certain banking decisions with a POA alone. However, with the addition of a statutory gift rider (SGR), your agent may be able to perform “gifting” transactions which include depositing money into a joint bank account, designating or changing beneficiaries or electing an option and option beneficiary. The additional gifting powers granted under a statutory gift rider must be specified on the form (Note: We cannot deposit money into an account that does not have your name on it.)

In order for a NY POA with NY SGR to be valid, the POA must contain the gift giving authority initialed by the principal, and a valid SGR must have been created on the same day as the POA. This SGR must be executed pursuant to the requirements of New York’s General Obligations Law §5-1514, which includes being notarized and witnessed by two disinterested witnesses (individuals not named in the POA), in the same manner as the execution of a will.

If you are thinking about executing a POA with a SGR, NYSLRS offers a form that combines the New York State statutory POA with a gift rider. This form meets all of New York State’s legal requirements and authorizes an agent to make all retirement transactions on behalf of a member unless specific limiting language is added. Without any modifying language, the NYSLRS POA and SGR will only allow a named agent to name himself or herself as a beneficiary only if the agent is the spouse, domestic partner, parent or child. The NYSLRS POA with a SGR only authorizes an agent to make retirement benefit transactions. For example, it won’t serve as a healthcare proxy. You can find the form at www.osc.state.ny.us/retire/forms/poa.pdf.

If a member or beneficiary chooses to execute and file the NYSLRS POA with SGR, the form must contain a valid notarization of the principal’s (grantor/donor) signature, the signature of two disinterested witnesses and a valid notarization of the agent’s signature.

NYSLRS recommends that you consult with an attorney to ensure you are using the correct form to meet the needs of you and your family.

Investing in a Cleaner Future

Saturday is Earth Day. Since 1970, April 22 has been set aside as a day to draw attention to environmental issues. Today, 47 years after the first Earth Day, we face perhaps the greatest threat to the planet: climate change as a result of carbon emissions.

As trustee of the New York State Common Retirement Fund (CRF), Comptroller Thomas P. DiNapoli seeks sound and sustainable investments in strategies and companies that are developing and using low-carbon technologies.Comptroller DiNapoli's Sustainable Investment Strategy

The CRF’s investments in New York-based companies such as Crystal IS in Green Island and the High Sheldon wind farm in Sheldon are examples of low-carbon investment opportunities that provide solid returns for the Fund, create jobs and generate local tax revenues, while helping promote a lower carbon economy.

As an investor, DiNapoli continually seeks improvements in environmental practices and lower carbon emissions from the companies in the CRF’s portfolio. For example, he has asked Exxon­Mobil and other portfolio companies to explain how they can adjust their business model to meet the worldwide effort to limit global warming, and has urged the Securities and Exchange Commission to ask fossil fuel companies to explain how they are addressing climate change. The CRF has created a $2 billion public equity index that excludes or reduces investments in the worst carbon emitting corporations, and increases CRF’s investments in companies that are lower emitters. In addition, DiNapoli has increased the CRF’s total commitment to sustainable investments to $5 billion to take advantage of the growing low carbon economy.

The Comptroller’s sustainable investment strategy is crucial to the long-term health of the CRF. Addressing investment risks presented by climate change is a major part of that strategy. Rising seas, severe storms, floods and droughts are likely to disrupt the global economy. Moving toward a low carbon future reduces risk to the CRF’s investments, spurs innovation and opens new investment opportunities.

Links:

http://osc.state.ny.us/press/releases/feb17/022317.htm

http://www.bbc.com/news/science-environment-39329304

http://time.com/4082328/climate-change-economic-impact/

 

How Much Will My Pension Be?

Estimate Your Pension

For anyone thinking about retirement, one big question looms: How much money will I have to live on after I stop working? Your NYSLRS pension is a lifetime benefit. Having a good idea of what that monthly amount will be is essential to effective retirement planning. Fortunately, we offer tools to help you estimate your future pension.

Most members* can use our Benefit Projection Calculator to estimate their pension. You can use this calculator even if your planned retirement date is a long way off. The calculator provides estimates based on information you enter. By changing each variable (date of retirement, average salary, beneficiary information), you can see the impact it would have on your pension benefit.
how to estimate pension infographic
If you are a vested member who has enough NYSLRS service to be eligible for a pension, you can request a benefit projection by calling our automated information line at 1-866-805-0990 (518-474-7736 in the Albany, New York area). This service is available 24 hours a day, seven days a week.

If you are nearing retirement eligibility and you aren’t certain that you have credit for all of your NYSLRS-eligible employment, complete and submit a Request for Estimate (RS6030) form. If you are a member of the Employees’ Retirement System (ERS), you may use this form if you will be eligible to retire within five years. Members of the Police and Fire Retirement System (PFRS) can submit this form within 18 months of their retirement eligibility date.

As part of your retirement planning process, you may also want to check on your Social Security benefits.

*At this time, you cannot use this calculator if you are in ERS Tier 5 or 6; PFRS Tier 3, 5 or 6; or certain special plans.