Tag Archives: loan balance

How an Unpaid NYSLRS Loan Can Affect Your Pension

As a NYSLRS member, if you have contributions on file with us, you may be able to take out a loan against them. However, you need to be cautious about this decision. If you retire with an outstanding loan balance, you cannot pay off your loan after you retire. In order to recover the funds that weren’t paid back before you retired, your pension benefit will be permanently reduced.

The amount of your pension reduction is based on three things:

  • Your age at retirement
  • Your loan balance at retirement
  • The type of your retirement (regular service or disability)

Outstanding Loan Balances & Permanent Pension Reductions for 2016

The permanent reduction you receive will be based on your retirement date. So, if you had retired in 2015 with an outstanding loan balance, the permanent reduction would be different than if you retire in 2016. Here are some loan reduction examples if you retire in 2016 with an outstanding loan:
2016 Unpaid Loan Reductions

How to Avoid a Permanent Pension Benefit Reduction

To avoid a permanent reduction, you can increase the amount of your loan payments so your loan is paid in full before you retire. Though loans are repaid through regular payroll deductions, you can make additional payments or pay your loan in full at any time. There are no prepayment penalties. You can also pay off your loan in a lump sum when you retire (before your effective date of retirement). If you wish to pay off your loan, we will tell you what the payoff will be at that time.

Make your check or money order payable to NYSLRS, write “loan payment” and your retirement registration number or the last four digits of your Social Security number on your check, and include your contact information in your cover letter to us. We will apply the payment to your loan and send you an acknowledgment letter. Payments should be mailed to:

NYSLRS
Attn: Accounts Receivable Unit
110 State Street
Albany, NY 12244

If you have any questions about loans or reductions, please visit our Loans page.

Your Member Annual Statement is Coming

We’ve started distributing the 2017 Member Annual Statements (MAS) to more than 600,000 NYSLRS members. The mailing is done in stages, taking six to eight weeks to complete. School employees receive their statements first; most others should expect to see theirs by mid-July.

Your statement contains important information about your NYSLRS membership, including your reported salary, service credit and beneficiaries. Depending upon your own circumstances, you may also see projected annual benefits, loan balances or past service account balances.

When You Receive Your Statement

Be sure to review the information in your statement carefully. If you need to change your address, email or phone number, or update your beneficiaries, you can use Retirement Online — our convenient and secure self-service tool. You can contact us to correct most errors, but if you have a question about your reported salary, please contact your employer.

Because the information is valuable year round, after you check it over, file your MAS away securely. It’s very likely you’ll reference it again at some point in the future.

Member ID Cards

Your statement also includes a member identification card, with both a registration number and a NYSLRS ID number. The NYSLRS ID is new this year, part of our upgrade to a new computer system. When the upgrade is complete, we will phase out the old registration numbers and replace them with the NYSLRS ID.

As identity theft becomes more and more prevalent, please help us protect you and your personal information. Reference either your registration or NYSLRS ID number — not your Social Security number — whenever you contact us.

When you receive your statement, be sure to clip out your ID card. Save it in a secure and easily accessible place, so you’ll always have your NYSLRS identification numbers handy.

Questions about Your MAS?

2017 Member Annual Statement TutorialCheck out our interactive, online presentation. It features a page-by-page explanation of your MAS as well as answers to common questions. View the entire presentation, or go directly to the information you need.

We can provide MAS reprints once we finish mailing statements — usually by mid-July. You can contact us at that time if you need to order a reprint.