Direct Deposit Pension Payments

With direct deposit, your pension payment is deposited directly into your bank account on the last business day of each month. It’s fast, convenient and secure. And if you change banks or open a new account, you can avoid delays or any interruption in receiving your pension payments by using Retirement Online to update your direct deposit information.

Keep Your Direct Deposit Information Updated

It’s important to notify NYSLRS as soon as possible if you change financial institutions or accounts. After you submit changes, we’ll send you a confirmation letter with the effective date of the change.

Important: You should keep your current bank account open until you receive our letter confirming the date we will begin depositing your pension payment into your new account.

Use Retirement Online to Update Your Direct Deposit Information

Retirement Online is the fastest and most convenient way to update your direct deposit information. Your changes will generally be applied to your next month’s pension payment.

Sign in to Retirement Online.
Look under I want to… (located at the top right).
Click Update Direct Deposit link.
Follow steps to update your bank account number and routing number.

If you have a joint account holder on your account, you’ll need to print and complete the Electronic Funds Transfer Direct Deposit Enrollment Application (RS6370) and have your joint account holder sign the form. It’s best to do this in advance, so you can upload the completed form while updating your information in Retirement Online. However, you can upload the completed form later.

Other Ways to Update Your Direct Deposit Information

You can update your direct deposit information by completing an Electronic Funds Transfer Direct Deposit Enrollment Application (RS6370) and submitting it using our secure contact form or by mail. Please note, using a paper form will take longer for the information to reach us, and it may take up to 60 days to apply your changes. Be sure to attach a voided check or have a bank representative complete section three of the form.

If you are updating account numbers but not changing banks, your bank can fax your direct deposit changes to 518-473-5323. A bank representative must include the following information on their letterhead:

Your name;
Your NYSLRS ID or retirement number;
Old and new account numbers and bank routing number; and
A bank representative’s signature.

Note: If your bank faxes your request, you don’t have to update your direct deposit information in Retirement Online or submit a paper application.

Sign Up for Direct Deposit

With direct deposit, your pension payment is deposited directly into your bank account—it’s fast, convenient and secure. You’ll avoid mailing delays, trips to the bank in bad weather and standing in line to cash a check. And you won’t need to worry about your check being lost or stolen.

Sign in to Retirement Online.
Look under I want to… (located at the top right).
Click Update Direct Deposit link.
Follow steps to add your bank account number and routing number.

For More Information

For more information, visit our Direct Deposit page, and check our Pension Payment Calendar for a list of dates pension payments are direct deposited.

Requesting Additional Service Credit

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Service credit is a major factor in calculating your NYSLRS pension. You earn one year of service credit for each year of full-time employment with a participating employer. (Read about how you earn service credit when you work part-time or how school employees earn service credit). You may also be able to request additional service credit if you worked for your current or another public employer before joining NYSLRS, or if you served in the U.S. Armed Forces and received an honorable discharge from active military duty. In most cases, you have to purchase additional service credit, but it will usually increase your pension.*

You should request additional service credit as early in your career as possible, and you must do so before retirement. The sooner you purchase your credit, the less it will generally cost.

*There are certain situations where additional service credit may not increase your pension. For example, special retirement plans for police officers and firefighters allow retirement after 20 or 25 years of service regardless of age, but not all types of public employment count toward the 20 or 25 years in these plans. Contact us if you have questions.

How to Request Additional Service Credit

You can request additional service credit in Retirement Online.

Sign in to Retirement Online.
Look under My Account Summary.
Click Manage My Service Credit Purchases button.
Click Request Additional Service Credit link.

Service Credit for Previous Public Employment

Additional service credit includes work for an employer who later joined NYSLRS or for public employment before you became a NYSLRS member.

Example:
You worked at the town library while going to school and, as a part-time employee, you chose not to join NYSLRS. When you graduated and took a full-time job at the Town Supervisor’s office, you were required to join NYSLRS. You can request credit for the part-time service at the library.

When you apply:

Enter the name of the employer and the approximate dates you worked there.
Upload any proof you may have of your previous service. We will also reach out to your former employer, but you can expedite the process by providing payroll records such as W-2 forms or pay stubs when you submit your request.

You must have two years of service credit before additional service can be credited to you.

Military Service Credit

If you served in the U.S. armed forces, you may be eligible to purchase credit toward your retirement for your military service, regardless of whether your military service was before or after you joined NYSLRS.

There are different sections of the law that allow credit for military service. The amount of military service credit you can receive, and the cost (if any), will vary depending on which section of the law allows the credit. Reserve and National Guard service may qualify if it’s considered active duty.

When applying online:

Enter the branch of military in the field for employer and the dates of your service.
Upload a copy of your Certificate of Release or Discharge from Active Duty (DD-214) or an official document showing the dates of active duty service, the branch of military and the type of discharge (to receive credit for military service, you must have received an honorable discharge).

For certain military service, you must have five years of service credit before you can apply.

Reinstating or Transferring Membership

There may be other ways to increase your retirement service credit. If you had a previous membership in a New York State public retirement system and it was terminated, you may be able to reinstate your membership. If you still have an active membership in another public retirement system in New York State but you are no longer working for the employer that participates in that retirement system, you may be able to transfer your membership to NYSLRS.

For More Information

For more information, visit our Get Credit for All Your Public Service page or read our publication, Service Credit for Tiers 2 through 6 (VO1854).

Taxes and Your NYSLRS Loan

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If you’re thinking about borrowing against your retirement contributions, it’s important to understand whether your NYSLRS loan will be subject to taxes before you apply. Once you submit a loan application and we issue a check, you cannot return an uncashed check, and the loan fee is nonrefundable.

Determining the Taxability of Your NYSLRS Loan

When you apply for a NYSLRS loan, all your existing NYSLRS loans and any loans against other retirement plans will be used in calculating the taxability of a new NYSLRS loan. If you participate in another retirement plan offered through your employer, you must disclose existing loans and the contribution balances for the following types of plans:

Deferred compensation plan (457)
Tax sheltered annuity plan (403-b)
Qualified annuity plan (403-a)
Qualified trust (401)

If You Have Existing NYSLRS Loans

If you have one or more NYSLRS loans and are considering another loan, you’ll have two options:

Multiple loans. With multiple loans, you would take out a new loan in addition to your existing loan(s). Each loan would have separate 5-year terms and minimum payments. The minimum payments for all your loans would be combined into one total repayment amount, which would be higher than the minimum payment for a refinanced loan. However, your total minimum payment would decrease as you pay off each loan.
Refinance your existing loan. With refinancing, your new loan would be consolidated with the balance of your existing loan(s) into a single loan for the entire amount. The total loan amount would be spread over a new 5-year term with one minimum payment, which would be lower than the total minimum payment for multiple loans. However, refinancing would increase how much of your loan is considered a taxable distribution, which would either subject the loan to federal taxes or significantly reduce the amount of the loan to avoid any tax implications.

Understanding the Impact on Your Taxes

While a NYSLRS loan is exempt from New York State and local income taxes, it may be subject to federal taxes. If your loan exceeds certain limits, the Internal Revenue Service (IRS) will consider all or part of it as a “deemed distribution from a qualified retirement plan.” In other words, you will have to claim all or part of your loan as taxable income when you file your taxes the next year.

NYSLRS is also required to withhold a percentage of the loan for federal taxes, which will reduce the amount you receive. The tax withholding depends on your citizenship, so the loan application asks if you are a U.S. citizen, resident alien or non-resident alien. However, the amount withheld may not cover the total amount you will owe the IRS. For example, if you take a taxable loan before you turn 59½, the IRS may charge an additional 10 percent tax penalty.

If you take a taxable loan, we’ll mail a 1099-R by January 31 of the following year to file with your taxes.

Remember: Even if a portion of your loan goes to the IRS, you’ll still have to repay the entire amount, plus interest, to NYSLRS.

We recommend that you speak to a tax advisor or a NYSLRS customer service representative before taking a taxable loan. For more information about taking a loan from NYSLRS, visit our Loans: Applying and Repaying page.

Ready to Apply for a NYSLRS Loan?

Retirement Online is the fastest and most convenient way to apply for a NYSLRS loan. When you use Retirement Online, NYSLRS receives your application immediately and can process your loan more quickly. Retirement Online will also let you know how much you can borrow, your repayment options and whether your loan is taxable.

If you don’t have an account or for help signing in to an existing account, check out our Retirement Online tools and tips for step-by-step instructions to register, reset your password, unlock your account and more.

Making Loan Payments if You Leave Public Employment

Making Loan Payments

If you leave public employment, contact us as soon as possible so we can tell you the amount you’ll need to repay each quarter. You are responsible for the repayment of your loan.

Use Retirement Online

Even if you go off the public payroll, Retirement Online is the fastest and most convenient way to manage your loan payments. You can make additional payments or pay your loan in full at any time with no prepayment penalties.

Sign in to Retirement Online.
Look under My Account Summary.
Click Manage My Loans button.

If you don’t already have an account or for help signing in to an existing account, check out our Retirement Online tools and tips for step-by-step instructions to register, reset your password, unlock your account and more.

Pay by Check or Money Order

Make your check or money order payable to the New York State and Local Retirement System and write “loan payment” and your NYSLRS ID on your check so we can ensure it’s applied to the correct account.

Mail payments to:

NYSLRS
Attn: Accounts Receivable
110 State Street
Albany, NY 12244-0001

Making Loan Payments if You Leave Public Employment

Defaulting on Your Loan

If you fail to make quarterly payments or you do not repay your loan within five years, your loan will go into default.

If you default on your loan:

We’re required by law to report your outstanding loan balance to the Internal Revenue Service (IRS) as a taxable distribution to you.
You must include the loan on your federal income tax return for the year the loan defaults. We’ll mail a 1099-R by January 31 of the following year to file with your taxes.
If you are younger than 59½ in the year the loan defaults, the IRS may charge an additional 10 percent tax penalty.
You still owe NYSLRS the amount of the outstanding loan, which will continue to accrue both interest and insurance charges until it is paid in full. If you retire with the outstanding loan, your pension will be reduced. If you withdraw your NYSLRS membership, we will deduct the outstanding loan balance from the refund of your contributions.

Note: Defaulted loans do not appear on your credit history.

For More Information

For more information about your NYSLRS membership and benefits if you leave public employment before you are eligible to retire, read our blog post, Know Your Benefits: What If I Leave Public Employment.

For more information about NYSLRS loans, visit our Loans: Applying and Repaying page.

Applying for a NYSLRS Loan in Retirement Online

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If you are eligible to borrow against your retirement contributions, Retirement Online is the fastest and most convenient way to apply for a NYSLRS loan.

Eligibility is based on your tier. Generally, you’ll need to be on the payroll of a participating employer, have at least one year of service credit and have the required minimum contributions in your account. (Note: Retirees are not eligible for NYSLRS loans.)

Applying for a NYSLRS Loan in Retirement Online

Retirement Online is the Fastest Way to Apply

When you use Retirement Online, NYSLRS receives your application immediately and can process your loan more quickly.

To get started:

Sign in to Retirement Online.
Look under My Account Summary.
Click Apply for a Loan button.

As you work your way through the online application, you’ll see:

How much you are eligible to borrow with or without tax implications;
The minimum repayment amount; and
The expected payoff date.

For Tier 3–6 members, there’s a service charge of $45, which is deducted from your loan check when it is issued.

The current interest rate, which is fixed for the term of your loan, is 5 percent.

NYSLRS loans are exempt from New York State and local income taxes. However, a NYSLRS loan would be subject to federal taxes if it exceeds certain limits. Retirement Online will show you the maximum you can borrow without tax implications.

If you apply for a loan and already have one or more existing loans, you’ll have two options:

Multiple loans. With multiple loans, you would take out a new loan in addition to your existing loan(s). Each loan would have separate 5-year terms and minimum payments. The minimum payments for all your loans would be combined into one total repayment amount, which would be higher than the minimum payment for a refinanced loan. However, your total minimum payment would decrease as you pay off each loan.
Refinance your existing loan. With refinancing, your new loan would be consolidated with the balance of your existing loan(s) into a single loan for the entire amount. The total loan amount would be spread over a new 5-year term with one minimum payment, which would be lower than the total minimum payment for multiple loans. However, refinancing would increase how much of your loan is considered a taxable distribution. To avoid any tax implications when refinancing, the amount of your new loan would be significantly less than taking out multiple loans.

When Will I Receive My Loan Check?

NYSLRS mails loan checks once a week. To check the status of your loan application:

Sign in to Retirement Online.
Look under My Cases.

If your case status is Closed before close of business on Wednesday, your check will be in the mail that Friday.

You will also receive a confirmation letter when your loan case is complete. In your Retirement Online account, click the Find Documents link to search for correspondence.

Repaying Your NYSLRS Loan

Loan payments are deducted from your paycheck. After you receive your loan check, you should review your pay stub to confirm that your employer has started payroll deductions and is deducting the correct repayment amount.

If you choose to repay the minimum amount, the payment may increase periodically to ensure you repay the loan within the required 5-year period.

You can increase your payroll deduction amount, make additional payments or pay your loan in full at any time with no prepayment penalties. Repaying your loan sooner will reduce the total amount of interest you’ll pay on the loan.

Retirement Online is the fastest and most convenient way to manage your loan payments.

Sign in to Retirement Online.
Look under My Account Summary.
Click Manage My Loans button.

If you go off payroll, you must continue to make loan payments directly to NYSLRS and pay off your loan within the 5-year period. Otherwise, you will default on your loan. For more information, read our blog post about making loan payments if you leave public employment.

Retiring With an Outstanding NYSLRS Loan

If you retire with an outstanding loan, your pension will be permanently reduced. In most cases, you’ll need to report at least some portion of the loan balance as income to the Internal Revenue Service (IRS). If you retire before age 59½, the IRS may also charge an additional 10 percent penalty.

If you are close to retirement, use Retirement Online to check your loan balance and make sure you’re on track to repay your loan before you retire.

Note: Employees’ Retirement System (ERS) members can repay their loan after retiring. If you choose to pay back your loan after you retire, you must pay the full amount of the outstanding balance that was due when you retired in a single lump sum payment. Following full repayment, the reduction would be removed, and your pension benefit would increase going forward—the adjustment would not be retroactive to your date of retirement.

For More Information

For more information about NYSLRS loans, visit our Loans: Applying and Repaying page.

Divorce and Your Other NYSLRS Benefits—Part 2

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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.

Divorce and Your Pension—Part 1

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In New York State, pensions and retirement benefits earned during the marriage may be marital property and can be divided when a marriage ends. Divorce can affect your pension and other retirement benefits in the following ways:

Your ex-spouse may be entitled to a portion of your pension.
You may be required to name your ex-spouse as the beneficiary of any death benefit.
You may be required to choose a pension payment option that provides a continuing benefit to your ex-spouse when you die.
Your ex-spouse may be entitled to a portion of your cost-of-living adjustment (COLA).

How Your Pension Can Be Divided in a Divorce

The most common method for dividing pension benefits is known as the Majauskas Formula, which gets its name from a case decided by the State Court of Appeals. This formula gives your ex-spouse one-half of the portion of your pension earned during the marriage.

How the Majauskas Formula Works

Dividing Your Pension in a Divorce - the Majauskas Formula

Example of the Majauskas Formula

Other Ways to Divide Pension Benefits

The Majauskas formula is not the only way to divide pension benefits. Other ways include using:

A hypothetical retirement benefit. NYSLRS can calculate a hypothetical pension using your final average earnings and service credit as of a specific date and then determine the ex-spouse’s share based on the terms of the divorce.
A flat percentage. Your ex-spouse can receive a percentage of your pension other than the percentage derived from the Majauskas formula.
A flat dollar amount. This option is commonly used if you retired and already receive monthly pension payments.

Formalizing the Division of Your Pension After a Divorce

Once you finalize the terms of your divorce, a judge issues a final judgment of divorce. If your ex-spouse will receive a share of your pension and other retirement benefits, a Domestic Relations Order (DRO) is needed. A DRO is a court order specifying how benefits should be divided.

NYSLRS must have an approved DRO on file to make pension payments to an ex-spouse—we cannot pay an ex-spouse based solely on a judgment of divorce or settlement agreement. It’s important to complete and file the DRO with NYSLRS well before the 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.

If your ex-spouse is not awarded a portion of your pension benefits, NYSLRS does not need a DRO.

Drafting and Filing a DRO

Draft a DRO. NYSLRS offers an online DRO template, which was developed with guidance from NYSLRS’ legal counsel. It generates a customized DRO based on the information entered about the terms of the divorce. While its use is not required, DROs prepared using the NYSLRS template receive priority review.

Get Your DRO Approved. A Supreme Court judge must sign the DRO and enter it as an official court document.

Submit Your DRO to NYSLRS. NYSLRS requires a certified copy of the signed DRO as well as proof of divorce, such as a copy of the judgment of divorce. NYSLRS legal staff will review the DRO and determine whether it complies with New York State Retirement and Social Security Law and applicable policies and procedures.

All Parties Notified. NYSLRS will send a letter to all parties notifying them whether the DRO has been accepted or rejected. If the DRO is rejected, the letter will explain why. The DRO must be amended, approved and resubmitted to NYSLRS.

For More Information

For more information about how your pension may be affected and for additional guidance on DROs, visit our Divorce and Your Benefits webpage. Also, read our blog post about how divorce may affect your other NYSLRS benefits.

Retirement Myths—Part 2

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Sometimes a small misunderstanding can have a big impact on your retirement benefits. Here are the facts you should know behind five more retirement myths.

Retirement Myths vs Facts

I don’t need to update my contact information with NYSLRS because my employer already has it.

Your employer does not provide updated member contact information to NYSLRS. You must update your contact information with both your employer and NYSLRS. Retirement Online is the fastest way to review the mailing address, phone number and email we have on file for you and update them, if needed.

I have to wait until I’m close to retirement to estimate my pension benefit.

Understanding your pension and finding out how much you can expect to receive is an important part of retirement planning. Even if you are years away from retiring, you can estimate your pension in minutes using Retirement Online. You can enter the percentage your earnings will increase each year and additional service credit if you plan to purchase service credit for a previous membership, prior employment or military service.

Note: Some members may not be able to estimate their pension using Retirement Online—for example, members who recently transferred to NYSLRS and some Police and Fire Retirement System (PFRS) members. If you receive a notification that the system cannot generate your estimate, you can request an estimate using our secure contact form (select Estimates from the Topic dropdown).

If I retire with an outstanding loan, my pension payment will be reduced but only until the loan is paid off.

If you retire with an outstanding loan, your pension will be permanently reduced. We do not apply the amount of the reduction toward the outstanding balance. Also, all or part of your outstanding loan balance may be subject to federal income tax. If you retire before age 59½, the IRS may charge an additional 10 percent penalty.

Note: Employees’ Retirement System (ERS) members can repay their NYSLRS loan after they retire. However, you need to pay the full balance of the loan in a one-time lump sum payment. Your pension would then be recalculated to increase your monthly payment going forward, but it would not be retroactive to your date of retirement.

I have to complete a bunch of paper forms and get them notarized to file for retirement and begin receiving my pension.

You can apply for retirement in Retirement Online. It’s 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 up to 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.

That depends. If you choose the Single Life Allowance option, monthly pension payments will stop upon your death and there will be no continuing payments to a beneficiary, even if you die soon after retiring. If you choose a pension payment option that provides a lifetime benefit for a single beneficiary, you cannot change your beneficiary even if they die before you do. However, if you choose a pension payment option that provides a limited benefit (for a certain period of time after retirement), you can change your beneficiary after you retire.

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 benefit any time.

Use Retirement Online

Retirement Online is the fastest and most convenient way to access your retirement account information and conduct business with NYSLRS. If you don’t have an account or for help signing in to an existing account, check out our Retirement Online tools and tips for step-by-step instructions to register, reset your password, unlock your account and more.

For More Information

Check out Retirement Myths—Part 1 where we debunk five other retirement myths. You can also find answers to the most common questions we receive from members and retirees on our Contact NYSLRS page.

Retirement Myths—Part 1

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The laws governing your NYSLRS retirement benefits can be confusing. Sometimes a small misunderstanding can have a big impact. So, let’s get prepared to make decisions based on facts, not common retirement myths.

Retirement Myths vs Facts

My NYSLRS pension is like a 401(k)-style retirement savings account, and I will get my contributions back when I retire.

Your NYSLRS pension is a defined benefit plan, also known as a traditional pension plan. When you retire, you will receive a monthly pension payment for the rest of your life. Your pension will be calculated using a preset formula based on your earnings and years of service—it will not be based on the individual contributions you paid into the system.

If I work for more than one NYSLRS participating employer at the same time, the service credit from both jobs will count toward my pension benefit.

You can only earn one year of service credit in a 12-month period. If you work part-time for two participating employers, you would receive service credit from both, up to the maximum of one year. However, if you work full-time for one NYSLRS employer and part-time for another, you would only receive one year of service credit.

For full-time employees of a school district, you receive one year of service credit per school year, even if you only work 10 months of the year. So, you won’t receive additional service credit for working over the summer.

NYSLRS administers health insurance coverage for its retirees.

NYSLRS does not administer health insurance programs. We may deduct premiums from a retiree’s monthly pension benefit to pay for health insurance coverage if their former employer instructs us to do so, but we can’t answer questions about coverage or changes in premium amounts.

If you are planning to retire soon, your employer’s human resources or personnel office should be able to answer your questions about post-retirement health insurance coverage. If you retired from a New York State agency, the New York State Department of Civil Service administers the New York State Health Insurance Program (NYSHIP). If you retired from a county, city, town, village or school district, contact your former employer.

I can take out a NYSLRS loan after I retire.

To be eligible for a NYSLRS loan, you must be a NYSLRS member and actively working for a NYSLRS participating employer. Once you retire, you cannot take out a NYSLRS loan.

NYSLRS will automatically start paying my pension as soon as I’m eligible.

Your pension is not automatic. To begin collecting your pension, you must meet the minimum age or service requirements established by your retirement plan and apply for retirement 15 to 90 days before your chosen date of retirement.

Use Retirement Online

For More Information

Check out Retirement Myths—Part 2 where we debunk five other retirement myths. You can also find answers to the most common questions we receive from members and retirees on our Contact NYSLRS page.

10 Things Retirees Should Know

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NYSLRS is one of the largest retirement systems in the world, administering benefits for more than 1.2 million members, retirees and beneficiaries. Take a look inside NYSLRS and brush up on your NYSLRS knowledge—here are 10 things retirees should know.

Not retired yet? Check out 10 Things Members Should Know.

1. Retirement Online is the Fastest, Most Convenient Way to Do Business With NYSLRS

Retirement Online is the fastest way to manage your NYSLRS account. Skip printing forms, having them notarized and sending them through the mail. When you submit your requests through Retirement Online, NYSLRS has them immediately, and your changes will be completed more quickly. It’s convenient and secure. Check out what retirees can do in Retirement Online.

2. Your Pension Benefits Are Secure

The New York State Common Retirement Fund holds and invests the assets of NYSLRS on behalf of members, retirees and their beneficiaries and continues to be one of the best-funded and best-managed public pension funds in the nation. Comptroller Thomas P. DiNapoli is the administrator of NYSLRS and trustee of the Common Retirement Fund.

3. It’s Important to Keep Your Contact Information Up to Date

Wherever retirement takes you, it’s important to keep NYSLRS informed of any changes to your contact information. That way, you’ll be sure to receive the tax information, news, correspondence and statements we send you. If you receive correspondence and statements by mail, it’s vital you review the address we have on file for you. Changing your address with the United States Postal Service (USPS) does not mean your records will automatically be updated with NYSLRS. To ensure you continue receiving mail from NYSLRS, you must submit a change of address directly to us. This is especially important if you receive your pension payment as a paper check.

4. ‘Go Green’ and Get Your Important Documents Sooner

You can help us ‘go green’ and reduce paper waste by choosing email as your delivery preference for correspondence and other important documents, such as your 1099-R tax form and Retiree Annual Statement. When you have something to view, we’ll send an email notifying you to sign in to Retirement Online. And it will save time—you’ll get access to your important documents sooner than printed copies are mailed. Learn how to get email notifications for important documents.

5. There May Be an Earnings Limit for Working After Retirement

As a NYSLRS retiree, you can work and still receive your pension. However, there may be a limit on how much you can earn each year without affecting your NYSLRS pension. An earnings limit of $35,000 generally applies to NYSLRS retirees who are under age 65 and returning to work for a public employer while receiving a service retirement benefit. However, the earnings limit for retirees employed by school districts or Boards of Cooperative Educational Services (BOCES) is suspended through June 30, 2027.

6. You Should Review Your Beneficiaries Periodically

Most NYSLRS retirement plans provide a post-retirement death benefit for beneficiaries of eligible retirees who die after retiring directly from service or within one year of leaving public employment. It’s a good idea to review your beneficiaries from time to time to make sure they reflect your current wishes. The beneficiary you named before might not be the one you would choose today. You should also review the contact information for your named beneficiaries so we can find them when needed and share this information about reporting a retiree’s death to NYSLRS with your survivors.

7. Adjust Your Tax Withholding Online

Most NYSLRS pensions are subject to federal income tax. If your last federal tax bill or return was not what you expected, Retirement Online is the fastest way to update your federal tax withholding. Changes submitted by the middle of the month will generally be applied to that month’s payment.

8. View Your Pay Stubs for Insight Into Your Monthly Pension Payments

Your pension pay stub gives you valuable insight into your monthly pension payment, including a breakdown of credits and deductions for health insurance, union dues, tax withholding or disbursements under a domestic relations order. Throughout the year, you can access your pay stubs online and see year-to-date totals.

9. Update Your Direct Deposit Information Online if Changing Banks or Accounts

Changing financial institutions or accounts will affect whether you receive your monthly pension payment. It’s important to update your direct deposit information with NYSLRS as soon as possible—and you can update your information quickly and conveniently with Retirement Online. Changes submitted online will generally be applied to your next month’s pension payment. Not using direct deposit yet? Don’t wait to receive a check in the mail—direct deposit is fast, convenient and secure. Sign up for direct deposit now and get your money sooner.

10. Generate a Pension Income Verification Letter Quickly and Easily Online

You may need proof of your retirement income for housing or as part of an application for the Home Energy Assistance Program (HEAP). With Retirement Online, you can quickly and easily generate a pension income verification letter any time you need one.