We’ve written about how divorce may affect your pension. However, divorce can also impact your other retirement benefits.

If your ex-spouse will receive a share of your pension and other retirement benefits, NYSLRS must have an approved Domestic Relations Order (DRO) on file. A DRO is a court order specifying how benefits should be divided. It’s important to complete and file the DRO with NYSLRS well before your retirement date to avoid changes or delays in payments. Questions about the consequences of not filing a DRO on time should be addressed to an attorney.

Death Benefits and Your Beneficiaries

As of July 7, 2008, beneficiary designations for certain death benefits are automatically revoked when a divorce, annulment or judicial separation becomes final.

Ordinary Death Benefit

If you die in active service (before retiring), your beneficiaries may be entitled to an ordinary death benefit.

Accidental Death Benefit

If you die as a result of an on-the-job accident, an accidental death benefit may be payable to certain beneficiaries. The beneficiaries of this benefit are designated by law, and only those beneficiaries may receive this benefit—even if there is a DRO.

Post-Retirement Death Benefit

If you die after retiring, you may be covered by a post-retirement death benefit, which provides a one-time, lump sum payment to your beneficiaries.

Your Beneficiaries

If you are divorced, it is especially important to review your beneficiary designations to ensure your benefits will be distributed according to your wishes and your divorce agreement.  

If your ex-spouse is awarded a portion of your death benefits, a DRO will specify how much your ex-spouse will receive and direct you to name your ex-spouse as a beneficiary. You should update your beneficiaries and choose additional beneficiaries for the remainder of any benefits. However, if you do not update your beneficiary designations or if your beneficiary designations conflict with the terms of the DRO, the DRO will take precedence.

Retirement Online is the fastest and most convenient way to view and update your beneficiaries.

• Sign in to Retirement Online.
• Look under My Account Summary.
• Click View and Update My Beneficiaries button.

For more information about death benefit beneficiaries, read our blog post—Your Death Benefit Beneficiaries. Or, if you are retired or planning to retire soon, read Can You Change Your Beneficiary After You Retire?

Loans

Eligible NYSLRS members may take out a NYLSRS loan against their retirement contributions. However, even if you are eligible, a DRO may be written to prohibit you from taking future loans.

If you retire with an outstanding loan balance, your pension will be reduced. The ex-spouse’s share of the pension will also be reduced unless the DRO specifically states the ex-spouse’s share should be calculated without reference to outstanding loans.

Contribution Refunds

Occasionally, NYSLRS may refund a member’s contributions because of a tier reinstatement, membership withdrawal or membership transfer. Some members are eligible to make voluntary contributions and withdraw them as excess contributions. Generally, if a DRO doesn’t mention a contribution refund, the member will receive the full amount.

For More Divorce Information

Visit our Divorce and Your Benefits page for more information, including how divorce can affect your service credit, disability benefits or annual cost-of-living adjustment.