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.
I retired in June 2023 and have not received my final calculations. I have called and emailed several times and was told there is no end in sight. I had them check that all my paperwork is in order and was assured that it is.
Can someone look into this and try to expedite please. It is going on for 3 years and have gotten no information. Thank you so much and I look forward to hearing from you.
Your message is important to us, and we have sent you a private message in response.
Can I select my Pension Payment Plan before retiring? Currently it is Single Life Allowance. What happens if i die before I retire? Do my benefeciaries receive anything?
When you apply for retirement, you’ll have the option to choose the maximum amount payable (Single Life Allowance) or a reduced benefit in exchange for possibly continuing payments to a beneficiary upon your death.
Most members who die while they’re still working will leave their beneficiaries what’s called an “ordinary death benefit.” This is a lump sum payment that’s usually equal to one year of your earnings per year of service, up to a maximum of three years.
For more information, visit our members Death Benefits page.
For account-specific information, 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 have been retired since 9/29/2021 and still have not received my finalization letter I called numerous times and was told we are working on the back log It’s 4yrs now and I am still waiting Please look into this matter as I’m hoping I wasn’t lost in the system. Thank you
Your message is important to us, and we have sent you an email in response.
I retired at the end of 2020 and still have not received a final recalculations of my pension. I have sent emails and was advised to send a letter which I did. My former payroll department also filled out and sent in the required forms and I still have not had the final recalculation. I was told that there was no specific time frame for recalculation of final pension to be done. Please advise
We’d like to help. Your message is important to us, and we have sent you an email in response.
I believe that I am also receiving an estimated monthly amount after more than 2 years. I also would like to know whether I am correct and, if so, approximately how much longer before I receive a finalized amount. I have asked this question by email several times and have not received an answer.
We’re sorry for the trouble getting through by email. Your message is important to us, and we have sent you a private message in response.
I retired in November 2020 and to my knowledge I am still receiving an estimated pension. It is going on 5 years now. Can you tell me when I will get my actual pension?
We’d like to help. Your message is important to us, and we have sent you a private email in response.
My pension was recalculated and it diminished after being re-calculated according to NYSLRS. It was due to my employer (PANYNJ) not reporting a contract retro payment in the years it was earned accurately. Instead, it was reported as a lump sum. Totally disrupting the algorithm. What is being done to prevent this? Id would like a response.
BFR
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