Choosing the Option of How Your Pension Will Be Paid

When It Comes to Retirement, This Could Be One of The Most Important Financial Decisions You’ll Make

Getting ready to retire? If you are a New York State & Local Retirement System member (NYSLRS), one of the most important things you’ll do is to decide how your retirement benefit will be paid. You do that by choosing a pension payment option.

Choose the Pension Payment Option That Will Best Meet Your Needs

There are several options from which to choose and all of them provide you with a monthly benefit for life. You may elect to have your retirement benefit paid to you as a Single Life Allowance (Option 0). This will provide you with the maximum amount payable during your lifetime, with nothing payable to your beneficiaries upon death. Or, you may elect to receive a smaller monthly benefit to provide for a possible payment to a designated beneficiary after your death.

Since choosing an option is not a decision to be made lightly, you may want to consider the following:

Does your beneficiary have other income?

Is your beneficiary receiving his or her own pension? How much Social Security benefits does he or she get? Does your beneficiary have an Individual Retirement Account or a Deferred Compensation Plan?

Do you have life insurance coverage?

Remember to factor in payments from any life insurance you may have. They can help your beneficiary make ends meet.

What are your financial obligations?

List the monthly expenses your beneficiary might have if you die. Is there a mortgage payment, car loan, other loans or obligations? Excluding your pension, will your beneficiary’s income be enough to cover all the expenses?

Answering these three questions will help you determine which option best meets your needs. You may want to consult your retirement plan booklet to help you with your choice. You may also want to consult with a financial advisor before making your option selection.

One Other Important Thing to Remember…

You must file your Option Election Form before the first day of the month following your retirement date. Though you have up to 30 days after your pension benefit becomes payable to change your selection, once the deadline has passed, you cannot change your option.

(If you are a disability retiree, you may change your option selection up to 30 days after your disability application is approved, or up to 30 days after your retirement date, whichever is later.)

2 thoughts on “Choosing the Option of How Your Pension Will Be Paid

    1. NYSLRS Post author

      To request an estimate, please email our customer service representatives using our secure email form ( and let them know the birth date of the beneficiary you are considering. Filling out the secure form allows us to safely contact you about your personal account information. Please allow five to seven business days for a response.


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