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.
