Tag Archives: New York State Common Retirement Fund

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

10 Things Retirees Should Know 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.

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.

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.

10 Things Members 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 members should know.

Retired? Check out 10 Things Retirees Should Know.

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

10 Things Members Should Know 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 members can do in Retirement Online.

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.

2. Your Pension is a Lifetime Benefit—And Your Pension Benefits are Secure

NYSLRS pensions are defined benefit plans, also known as traditional pension plans. 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. Member contributions support the benefits earned by current and future retirees and are an important asset of the Common Retirement Fund, which holds and invests the money used to pay NYSLRS benefits. The Fund is widely recognized as one of the best-funded and best-managed public pension plans in the nation. Comptroller Thomas P. DiNapoli is administrator of NYSLRS and trustee of the Common Retirement Fund.

3. ‘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 Member 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.

4. Your Tier Determines Your Benefits

Your tier, which is based on your date of membership, determines your benefits, such as eligibility for death benefits or taking a NYSLRS loan and the formula used in the calculation of your benefits.

5. Vested Means You Qualify for a Retirement Benefit

Becoming vested is a crucial milestone for NYSLRS members. It means you have earned enough service to qualify for a retirement benefit once you meet the minimum age or service requirements established by your retirement plan. All members who have at least five years of service credit are vested.

6. Review Your Beneficiaries Periodically

NYSLRS retirement plans provide death benefits for beneficiaries of eligible members who die before retiring. 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.

7. Request Additional Service Credit as Early in Your Career as Possible

Service credit is a major factor in calculating your pension benefit. You earn a year of service credit for each year of full-time employment with a participating employer. You may also be able to request additional 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. You must submit your request before retirement, and you should do it as early in your career as possible.

8. Estimate Your Pension

Finding out how much you can expect to receive is an important part of retirement planning. Most members can estimate their pension using Retirement Online in just a few quick and easy steps. Retirement Online uses your current earnings and service information to calculate your estimate, including your final average earnings (FAE) and the amounts for the pension payment options available to you. You can fine-tune your estimate or see how different choices would affect your benefit by entering different retirement dates or a beneficiary’s date of birth.

9. Supplement Your Pension with Retirement Savings

Think of retirement security as a three-legged stool. Each leg is a source of income to help support you when your working days are done. It’s important to understand all your potential sources of income to effectively plan for the future and boost your retirement confidence. Your pension can provide a significant part of your retirement income, but it’s a good idea to supplement your pension with retirement savings and start saving early so your money has time to grow.

10. Your Retirement Plan Publication is an Essential Resource

Your retirement plan publication is an essential resource that explains your NYSLRS benefits in detail—how long you’ll need to work to receive a pension, how your benefit is determined, what death and disability retirement benefits may be available, and more. You should consult it throughout your career, but it’s especially important to read as you prepare for retirement.

A Century of Security and Stability

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A century after its creation, the New York State and Local Retirement System (NYSLRS) is widely recognized as one of the best-managed and best-funded public pension systems in the nation. Comptroller DiNapoli recently announced that the New York State Common Retirement Fund (Fund), which holds and invests the assets of NYSLRS, had an estimated value of $268.3 billion as of June 30, 2021. The security and stability of NYSLRS and the Fund are due, in large part, to the stewardship of Comptroller DiNapoli, as well as a long line of State Comptrollers that came before him. The System has also been bolstered by some key events along the way.

NYSLRS History - key events contributing to the security and stability of the Retirement System and the Fund

In the Beginning

NYSLRS’ security and stability were built in at the start. In 1918, the State Legislature created the Commission on Pensions and charged it with recommending a pension system for State workers.

After surveying pension plans in New York and other states, the Pension Commission recognized the need to calculate the cost of the pension plan through actuarial calculations, which take into account such things as employees’ salaries and how long they are expected to be retired. They also saw the need to make provisions to cover those costs through contributions and other income. They recommended a plan supported by the contributions of employers (New York State and, eventually, local governments) and employees. The improved actuarial calculations the System uses today helps to ensure that member contributions and employer annual contributions are sufficient to keep the System adequately funded.

The Pension Commission also recommended a service retirement benefit be made available to workers who reached a certain age, based on average earnings and years of service. Though they didn’t use the term, their pension plan was very similar to the defined-benefit plan NYSLRS members have now.

Unlike the 401k-style defined-contribution plans common in the private sector today, a defined-benefit plan provides a guaranteed, lifetime benefit. With a defined-benefit plan, you don’t have to worry about your money running out during retirement, and your employer has an excellent tool for recruiting and retaining workers.

Constitutional Protection

In 1938, New York voters approved several amendments to the State Constitution, including Article 5, Section 7, which guarantees that a public pension benefit cannot be “diminished or impaired.” This constitutional language protects the interests of the Fund and its members and beneficiaries, ensuring that the money the Fund holds will be there to pay the pensions for all current and future retirees. The courts have upheld this constitutional provision to protect the Fund several times over the years.

For NYSLRS members and retirees, that means the retirement benefits you were promised when you started your public service career cannot be reduced or taken away.

Sound Investments

Sound investments are crucial to the health of the Fund, but in some cases changes in the law were needed to give Fund managers the flexibility to make the best investments. In 1961, the Fund was allowed to invest in the stock market, opening up the door for growth opportunities. Roughly half of the Fund’s assets are currently invested in stocks.

In 2005, the Legislature expanded the types of investments the Fund could make, allowing the Fund to increase investments in real estate, international stocks and other sectors that had been providing high returns.

Today, under Comptroller DiNapoli’s leadership, the Fund’s investment returns cover the majority of the cost of retirement benefits. After suffering a drop in value at the beginning of the COVID pandemic, the Fund had its best year in history, with estimated investment returns of 33.55 percent for fiscal year 2021.

NYSLRS is well-positioned to face the challenges of the future and provide retirement security for more than 1.1 million members, retirees and beneficiaries.