Tag Archives: Loans

Computer System Maintenance Scheduled for Spring

Computer system upgrades are coming

This spring, NYSLRS will be conducting a series of computer system upgrades to improve services to our customers.

Monthly pension payments will not be affected. We will continue to accept mailed forms during the upgrade and requests for income verification letters will still be processed promptly.

If you have a Retirement Online account, you will not be able to sign in during the upgrade period. Although you will not be able to take out a loan or update your contact information or beneficiaries via Retirement Online, you can conduct business with NYSLRS by email, mail, and phone.

The last day to submit loan applications using Retirement Online is April 6, 2018. We will resume accepting online applications for loans after the upgrade is complete. If you need to apply for a loan during the maintenance period, you can do so by completing this paper form and mailing it to our office.

Beneficiary designation changes and contact information updates will not be available in Retirement Online during the system upgrade. If you need to update your beneficiaries during the maintenance period, you can complete this paper form and mail it to us by certified mail, return-receipt requested.

For the latest on the upgrade, please visit our Contact Us page. If you have any questions, you can contact our Call Center at 1-866-805-0990 (518-474-7736 in the Albany, NY area) or email them at www.emailNYSLRS.com.

Divorce and Your Other Benefits

We’ve written here before about how divorce affects your NYSLRS pension, what a DRO is and why it’s required. However, NYSLRS members have other benefits besides their pensions. Divorce and DROs may affect some of them as well.

Ordinary Death Benefit

As with your pension, a DRO may direct you to designate your ex-spouse as a beneficiary for some portion of your ordinary death benefit. You should file the DRO with NYSLRS as soon as it’s officially accepted by the court.  We will prepare a custom beneficiary form that complies with the DRO.  Also be sure to choose additional beneficiaries for any remainder of the benefit and submit your changes to NYSLRS.

Post-Retirement Ordinary Death Benefit

Most Tier 2, 3, 4 or 5 members of the Employees Retirement System (ERS) are covered by a post-retirement ordinary death benefit. A DRO may direct you to designate your ex-spouse as a beneficiary for some portion of the benefit. Similarly, you should file the DRO with NYSLRS as soon as it’s officially accepted by the court, and be sure to contact us to choose additional beneficiaries as allowed by the DRO.


NYSLRS members who meet eligibility requirements can borrow a certain percentage of their contribution balance. DROs may be written to prohibit members from taking future loans.

Outstanding loan balances at retirement permanently reduce retirees’ pension benefits. As a result, unless a DRO specifically provides that the ex-spouse’s share of the pension be calculated without reference to outstanding loans, the ex-spouse’s portion will also be reduced if a NYSLRS loan is not paid off before retirement.


Occasionally, NYSLRS may refund a member’s contributions because of a tier reinstatement, membership withdrawal, membership transfer or excess contributions. If the member is divorced and NYSLRS has a DRO on file, the DRO will determine whether a portion of the refund must go to the ex-spouse. Generally, if the DRO doesn’t mention a contributions refund, the member receives the full amount.

NOTE: A divorce, annulment or judicial separation revokes a member’s prior designation of a former spouse as beneficiary of certain death benefits and retirement options, except as provided by the express terms of the judgment or decree, or a DRO. So, if you have gone through a divorce, annulment or judicial separation and you do NOT have a DRO, and you wish to retain your former spouse as a beneficiary, you must resubmit your beneficiary designation to NYSLRS. The easiest way to do this is by using Retirement Online, our secure, self-service web application. You can also submit a Designation of Beneficiary form.

Top Five Pre-Retirement Goals for NYSLRS Members in 2018

January is a great time to set goals for the coming year. And setting pre-retirement goals is crucial in planning for a successful retirement. Here are five goals to consider for 2018:

Plan ahead for retirement

1. Choose a sensible savings plan that works for you.There are several ways to save for retirement, including starting a deferred compensation plan like the New York State Deferred Compensation Plan. An important part of developing a savings plan is to start early. The sooner you start saving, the more time your money has to grow. Check out our Weekly Investment Plan chart to see how a weekly investment can grow by age 65.

2. Track your expenses and income. Tracking your current expenses for a month or two will give you a better idea of how much you’re likely to spend in retirement and how much you’ll need to supplement your pension. Use the expense and income worksheets on our website to create a retirement budget. Be sure to include periodic expenses, such as car insurance and property taxes.

3. Request a pension estimate. If you’re within 18 months of your anticipated retirement date, it’s a good idea to request an estimate of what your retirement benefit will be. You can do this by sending us an email using our secure contact form or by calling 1-866-805-0990 (518-474-7736 in the Albany, NY area). If you are not certain that you’ve received credit for all your public service in New York State, you can submit a Request for Estimate form (RS6030) and be sure to provide detailed information about your public employment in section eight of the form. If your planned retirement date is farther away, you may want to use our online Benefit Calculator. This estimates your pension based on information you provide, so have your Member Annual Statement handy before you start, or sign in to your Retirement Online account to check your current service credit.

4. Pay off any NYSLRS loans. An outstanding loan balance at retirement will permanently reduce your NYSLRS retirement benefit. You cannot make loan payments after you retire, and the pension reduction does not go away after we recover the balance of the loan. Visit the Loans page on our website for information about making additional payments or increasing your loan payment amount.

5. Consider seeking the advice of a financial planner. Financial planners don’t manage your money, but can help you assess your present financial condition and develop a practical plan to meet your specific goals and needs. Also consider doing your own research by seeking Do-It-Yourself financial planning guides on the web.

If you ever have any retirement-related questions, please contact us.

Retirement on the Horizon? Here Are a Few Things to Think About

Things to think aboutYou’re probably looking forward to the day when you file your application for a NYSLRS pension. But before you retire, there are a few questions you should ask yourself. After all, by filing for retirement, you’re making critical decisions about your financial future. And once you’ve retired, some of those decisions will be irrevocable. Whether your planned retirement date is just around the corner or a few years off, this checklist could help you avoid costly mistakes.

Do I have all the service credit I think I have?
Under some retirement plans, service milestones (20 years, 30 years, full retirement age) can have a big impact on the amount of your benefit. If you’re aiming for one of these milestones, but retire just short of reaching it, your pension will take a big hit. To make sure you have enough service credit on your planned retirement date, sign in to Retirement Online to see how much service credit you currently have. You can also file a Request for Estimate form or talk with an information representative at our Contact Center (1-866-805-0990 or 518-474-7736 in the Albany, New York area).

Do I have previous service credit I want to purchase?
You may be able to buy credit for previous public employment or military service, which in most cases would increase your pension. But you can’t purchase service credit after you retire. You can use the “Information about Your Public Employment” section of the Request for Estimate form to request credit for previous public and military service. Read our booklet, Service Credit for Tiers 2 through 6, for more information.

Do you have a balance on a NYSLRS loan?
You cannot pay off your NYSLRS loan after you retire. If you retire with an outstanding balance, your pension will be permanently reduced. You can check your loan balance with Retirement Online or through our automated phone system. Call the toll-free number (above), then press 3 for members, 1 or 2 for the Employees’ Retirement System or the Police and Fire Retirement System, and 1 for loan services. If your retirement is still a few years away, you can increase your payroll deductions or send in extra payments to pay off your loan.

Am I ready to retire?
Are you really ready? The fact that you can retire doesn’t necessarily mean you should. Am I financially prepared? Am I psychologically ready for retirement? These are questions you’ll have to answer for yourself, but there are resources available:

Know Your Benefits: Leaving Public Employment

It may never come up, but, you should know what would happen with your NYSLRS membership and benefits if you ever leave public employment. Even if you no longer work for a New York public employer, you’d still be a NYSLRS member. Depending on your circumstances, that membership may come with certain benefits and responsibilities.

What Happens to My Contributions If I Leave Public Employment?

If you have less than ten years of service credit, you can end your membership and request a refund of your contributions by filing a Withdrawal Application (RS5014).

If you have not earned enough service credit to be vested (eligible for a retirement benefit) and don’t withdraw your contributions, they will continue to earn 5 percent interest for seven years. At that point, if you are still off the public payroll, by law, your membership ends automatically, and your contributions will be deposited into a non-interest-bearing account. (Your contributions are not automatically refunded.)

If you are vested, your contributions will remain on deposit with NYSLRS, and when you reach retirement age, you’ll be eligible to apply for a retirement benefit.

Leaving Public Employment

How Will Leaving Public Employment Affect My Death Benefits?

If you have at least ten years of service credit before you leave, 50 percent of your death benefit may still be payable when you die. With less than ten years of service credit, the 50 percent death benefit is only payable if you die within one year of leaving public service.

How Can I Pay Back My Outstanding Loans?

If you have an outstanding NYSLRS loan, you must still make payments directly to NYSLRS at least once every three months. You must repay your loan within five years of the date it was issued, or you will default on the loan. Defaulting on a loan may carry considerable tax consequences: You’ll need to pay ordinary income tax and possibly an additional 10 percent penalty on the taxable portion of the loan. Once you’ve left public employment, you aren’t eligible to take a NYSLRS loan.

How Can I Stay Informed About My Membership If I Leave Public Employment?

If you leave public employment, but haven’t ended your NYSLRS membership, you’ll still:

Beyond staying informed, you’ll need to keep your membership information up to date:

  • Keep your beneficiary information current, and
  • Let us know about any name or address changes (for either you or your beneficiaries).

Finally, it’s your responsibility to file an Application for Service Retirement (RS6037) when you are eligible to retire — we will not pay out a retirement benefit unless you apply for it.

For more information, read our Life Changes: What if I Leave Public Employment? (VO1800) publication.

Debt and Retirement

If you’re planning to retire in the near future, it’s a good idea to take inventory of the debts you owe. Why start your next life chapter burdened with debt and interest payments?

A high priority should be any loans you have taken from NYSLRS. You cannot pay off your loan after you retire. If you have an outstanding balance when you retire, it will permanently reduce your pension. For example, if a 60-year-old Tier 3 or 4 member of the Employees’ Retirement System retires this year owing $10,000, the annual reduction would be $560.50. And that reduction would continue even if the total reduction exceeds the amount owed. What’s more, at least part of the balance would be subject to federal taxes. Learn more about paying of a NYSLRS loan.
Debt and Retirement — How a NYSLRS Loan could affect your retirement
Another priority is paying off credit cards. The average American household with credit card debt owes more than $16,000 and pays about $1,300 a year in interest, according to a recent analysis of federal data.

Fortunately, getting a handle on your credit card debt has gotten easier. A recent federal law requires credit card statements to carry a “Minimum Payment Warning.” This tells you how long it will take, and how much it will cost, to pay off your balance if you only make minimum payments. It also tells you how much you need to pay each month to pay off the balance in three years.

If you have more than one credit card balance, most financial advisers recommend you pay as much as you can on the card with the highest interest. Pay at least the minimum, preferably more, on lower-interest cards until the high-interest card is paid off. But some advisers say it might be better to pay off the card with the smallest balance first. That will give you a sense of accomplishment, which could make the process seem less daunting.

Mortgage balances make up two-thirds of the $12.6 trillion in U.S. household debt. But should you strive to pay off your mortgage before you retire? Financial advisers differ on that question, so do your research to consider all the factors.

Read more about debt and retirement in our publication Straight Talk About Financial Planning For Your Retirement.

NYSLRS’ Top Five Retirement Myths from 2016

Retirement Myths vs FactsWith two retirement systems, six tiers and 346 retirement plan combinations, it’s quite possible that the NYSLRS benefit information your coworker is talking about may not apply to you. That’s why, periodically, we like to clear up some common misconceptions we hear from members and retirees. Here are our top five retirement myths from 2016.

Myth #1  “NYSLRS can change the rules determining pension contributions and retirement benefits.

Fact  We can’t. The contributions you make and the benefits you enjoy are dictated by law — as passed by the Legislature and signed by the Governor. NYSLRS administers these programs.

This is also true for retirement incentives; the decision to offer an incentive comes from the Legislature and the Governor. Individual employers, like your town or police department, may decide to offer their own incentives to employees, but these do not affect a member’s NYSLRS pension benefits.

Myth #2  “Your final average salary (FAS) is based on the years immediately preceding your retirement

Fact  While the number of years used to calculate your FAS varies by tier and plan, they aren’t limited to your final years of employment. We look at your entire employment history while you were a member of NYSLRS to find the consecutive years when you earned the most, and those years are used in the calculation for your FAS. For more information, visit our website.

Myth #3  “NYSLRS membership ends when you stop working for a NYSLRS participating employer.

Fact  Even when you leave public employment before you’re eligible to retire, you’re still a NYSLRS member. If you’re vested, you will be eligible for a pension benefit once you reach the retirement age specified by your plan. If you’re not vested, your contributions stay with NYSLRS and continue to earn 5 percent interest for seven years. If you leave public employment with less than 10 years of service, you can end your NYSLRS membership and request a refund of your retirement contributions.

What else happens when you leave public employment? Check out your plan publication to learn more about your benefits. You can also visit our website for more information.

Myth #4  “You can’t make extra payments to pay off a NYSLRS loan faster.

Fact  You can make additional payments or pay your loan in full at any time, with no prepayment penalties. For the payoff balance on your loan, call our automated phone service (1-866-805-0990 or 518-474-7736 in the Albany, New York area and press 3 for members; then 1 or 2 for the Employees’ Retirement System or the Police and Fire Retirement System; and then 1 for loan services). For more information, visit Loans: Getting One and Paying it Back.

Myth #5  “If Call Center lines are busy, there’s no way to get benefit information.

Fact  Even when the Call Center phone lines are busy, our automated phone system can help members and retirees with a number of tasks 24 hours a day, seven days a week.

Press 3 for Member Services, which includes current loan balance and application status information.

Press 4 for Retiree/Beneficiary Services, which includes COLA eligibility and federal tax withholding information.

Press 6 for Other Services, which includes requesting forms by fax.

Another way to get benefit information is to visit the Contact Us page on our website, which has answers to many commonly asked questions. You can also email us using our secure email form.

Avoid the myths — get the latest news about NYSLRS, your benefits and preparing for retirement with ENews, our monthly email newsletter. Sign up today, and recommend E-News to a friend.

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:

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

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

NYSLRS Tax Overview

Tax season is ramping up, so it’s a good time to talk about the tax information related to your NYSLRS pension benefit.


NYSLRS retirees and beneficiaries who receive a taxable benefit from NYSLRS are sent a 1099-R form each year. Certain NYSLRS members may also receive a 1099-R tax form if, for example, you borrow a taxable NYSLRS loan, default on a NYSLRS loan, or if you end your membership and withdraw your contributions. The 1099-R is a statement that shows:

  • The total benefit paid to you in a calendar year.
  • The taxable amount of your benefit.
  • The amount of taxes withheld from your benefit.

We mail out all 1099-R forms — more than 500,000 — by January 31, so if you haven’t already received your form, be sure to check your mail over the next few days.

If you lose your 1099-R, you can request a reprint from us starting the second week of February. Once reprints are available, we’ll process requests each night and mail them out the next day. This year, reprints will be available for calendar years 2013, 2014, and 2015.

1099-R Interactive Tutorial

1099-r tax form tutorial screenshot

Understanding your 1099-R Tutorial

We feature an interactive tutorial about the 1099-R form on our website. It walks you through a sample 1099-R, and offers a short explanation of specific boxes on the form.

Changing Your Federal Tax Withholdings

Your NYSLRS pension benefit is subject to federal taxes. You can change your federal tax withholding status at any time by sending us a W-4P form. (A handy tutorial about the W-4P form that walks you through the steps on filling it out is available on our website.)

W4-P Tax form tutorial screenshot

Understanding your W-4P Form Tutorial

We also offer a federal tax withholding calculator on our website to help you estimate how much should be withheld.

If you have other tax-related questions about your benefit, please visit our Tax FAQs.