Sometimes a small misunderstanding can have a big impact on your retirement benefits. We debunked some common retirement myths in an earlier blog post. Here are five more myths you should be aware of.
Retirement Myths vs Facts
I updated my contact information with my employer, so I don’t need to update it with NYSLRS.
You need to update your contact information with both your employer and NYSLRS. Your employer does not provide updated member contact information to us. Make sure we have your current mailing address, phone number and email address on file so you receive the news, correspondence and statements we send you. Retirement Online is the fastest way to view and update your contact information with NYSLRS.
I can’t estimate my pension benefit until I’m close to retirement.
Even if you are years away from retiring, you can estimate your pension benefit in minutes using Retirement Online. Enter different retirement dates and beneficiaries to see how your choices affect your potential benefit and customize your estimate by adjusting your earnings if you anticipate a pay increase before you retire. (Note: Some members may not be able to use the Retirement Online pension calculator because of their circumstances—the system will notify you if your estimate cannot be completed, and you can send us a message using our secure contact form to request one.)
If I retire with an outstanding loan, my pension payment will be reduced temporarily until the loan is paid off.
If you retire with an outstanding loan, your pension will be permanently reduced.* We do not withhold loan deductions after retirement and apply it toward the outstanding balance until it’s paid in full.
Also, all or part of your outstanding loan balance may be subject to federal income taxes. If you retire before age 59½, the IRS may charge an additional 10 percent penalty.
*Employees’ Retirement System (ERS) members can repay their NYSLRS loan after they retire. However, you would need to pay the full balance of the loan in a one-time lump sum payment. Your pension would then be recalculated to remove the reduction and your monthly payment would increase going forward, but it would not be retroactive to your date of retirement.
The only way to file for retirement and begin receiving my pension is by completing a bunch of paper forms.
You can apply for retirement in Retirement Online, which is faster and more convenient than printing and mailing forms, and there’s nothing to have notarized. And when you apply online, you can also make changes online before your date of retirement—for example, if you need to change your banking or tax information. Watch our video for more information.
I can change my pension beneficiary after I retire.
Most retirees have 30 days from the start of the month following their retirement date to change their option election. After those 30 days, only certain pension payment options let you change your beneficiary.
- The Single Life Allowance option provides the maximum monthly benefit payment to you for the rest of your life, but all payments stop upon your death, so nothing will be paid to a beneficiary.
- The Joint Allowance or Pop Up Joint Allowance options provide a lifetime benefit for a beneficiary. After the initial 30-day window, you cannot change your beneficiary for any reason.
- The Five Year Certain or Ten Year Certain options provide benefit payments to a beneficiary for a finite period if you die within five or ten years of your retirement—if you choose one of these options, you can change your beneficiary at any time. If you live beyond the five- or ten-year period, your beneficiary will not receive a pension benefit upon your death.
Note, most retirement plans also provide a post-retirement death benefit, which is a one-time lump sum payment to your beneficiaries—you can change your beneficiaries for this at any time.
You can find more facts about your NYSLRS benefits in your retirement plan publication. If you have account-specific questions, please message our customer service representatives using our secure contact form.
If I retire via disability is my ex entitled to a portion of my pension ?
NYSLRS must have an approved Domestic Relations Order (DRO) on file, and proof of divorce, to make pension payments to an ex-spouse of a member.
Until a DRO is received, the parties are responsible for adhering to any requirements or restrictions arising from the divorce action.
For questions about DROs, you or your attorney can email our Matrimonial Bureau at dro@osc.ny.gov.
How do you find what you owed when you leave on comp Do not know how much I OWE and able to pay off so I can collect my full retirement
We’d like to help resolve your issue. Your message is important to us, and we have sent you a private message in response.
I have 30 years in now they’re 4 and I’m 57 years … a few years ago I got hurt on the job and was out for 16 months do I get a penalty for retiring now?
Generally, Tier 2-4 members with at least 30 years of service credit can retire at age 55 without a reduction in their pension.
For account-specific questions about how this may apply in your situation, please call our customer service representatives at 866-805-0990, press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
How do I claim town planning credits along with my 25 years of service
To request credit for public employment before you joined NYSLRS, sign in to your Retirement Online account. In the ‘My Account Summary’ section of your Retirement Online Account Homepage, click the Manage My Service Credit button and follow the directions.
For more information about purchasing service credit, please read our publication Service Credit for Tiers 2 through 6.
If you have questions, please call our customer service representatives at 866-805-0990, press 2 and follow the prompts. You can also message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
Can I designate my two kids as my beneficiaries, instead of my spouse?
You can designate anyone you wish as your beneficiary for your death benefit or pension benefit, but you can only designate one person as the beneficiary for your pension benefit.
For questions about your beneficiary designations, please call our customer service representatives at 866-805-0990, press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
I’m in the process of divorce. I understand my ex will receive a % of my retirement payments. How long will the ex be receiving these payments? Their lifetime? X number of yrs? Thanks.
Any division of retirement benefits must be stated in the form of a Domestic Relations Order (DRO) — a legal document issued by the same court that issues the judgment of divorce. A DRO gives NYSLRS specific instructions on how benefits should be divided.
You can find more information, including a guide to Domestic Relations Orders, on our Divorce and Your Benefits page.
I just went online to check my account and it says it is locked. How do I unlock it?
You can find a step-by-step guide to unlocking your account in the Tools & Tips section of our Retirement Online page.
If you still need help, please call our customer service representatives at 866-805-0990, press 2, then follow the prompts.
How do I add my spouse as a beneficiary for my pension now while I’m working in case I die ?
As a NYSLRS member, your beneficiaries may be entitled to receive a death benefit if you die before retirement. Please see our Death Benefits page for more information and our View and Update Your Beneficiaries page to learn about changing your beneficiaries in Retirement Online. Retirement Online is the quickest and best way to manage your beneficiary information.
Otherwise, you cannot add a beneficiary for your pension until you retire. When you retire, you can choose to receive a smaller monthly benefit to provide for a possible payment to a designated beneficiary after your death. You can find more information on our Pension Payment Option Descriptions page.
I had Sick days left when I retired. How long will it take to recover that money.
NYSLRS is working hard to complete recalculations and to provide retroactive payments as quickly as possible. We apologize for the length of time this is taking for you. We are working to improve our service in this area and we thank you for your patience.
If you retire at 55 with 35 years of service in Teir 4 when does your COLA begin?
Most NYSLRS retirees are eligible for a COLA when they are at least 62 years old and have been receiving a service retirement benefit for five or more years.
You can find more information on our Cost-of-Living Adjustment page.