Tag Archives: New York State & Local Retirement System

Use Retirement Online for a Pension or Mortgage Verification Letter

For certain business transactions, such as applying for a mortgage or housing, you may be asked to provide proof of your NYSLRS pension income or the balance of your NYSLRS account. With Retirement Online, you can get your own verification letter in just a couple quick steps.

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.

Use Retirement Online for a Pension or Mortgage Verification Letter

Pension Income Verification Letter for Retirees

As a retiree, you may need a letter showing proof of your pension income for housing or as part of an application for the Home Energy Assistance Program (HEAP).

Retirement Online is the fastest way to get a pension income verification letter.

Sign in to Retirement Online.
Look under I want to… (located at the top right).
Click Generate Income Verification Letter link.

A confirmation message will appear. Click OK, and your letter will open in a pop-up box, ready for you to print or save.

Mortgage Verification Letter for Members

Members (not yet retired) who are applying for a mortgage may need to show a lender the balance of their member contributions and information about their NYSLRS account.

Retirement Online is the quickest way to get a letter for your mortgage lender.

Sign in to Retirement Online.
Look under I want to… (located at the top right).
Click Generate Mortgage Verification Letter link.

A confirmation message will appear. Click OK, and your letter will open in a pop-up box, ready for you to print or save.

The letter will show your account summary, including the current balance of your contributions, and if you have a loan, the date of your last loan and current loan balance.

Other Ways to Get a Verification Letter

By Phone

You can use our automated phone service to request a verification letter without speaking to a customer service representative.

Call 866-805-0990, then:

Retirees: Press 2, then press 6, then press 5.
Members: Press 2, then press 6, then press 6 again.

Please note, to access the self-service menus, you will be asked to enter the last four digits of your Social Security number and your date of birth. We need this information to verify that you are a NYSLRS member and that the services you request from our automated information line are available to you.

For more information about what you can access or request 24/7, visit the Automated Phone Service page for members or the Automated Phone Service page for retirees.

By Email

You can also request a letter using our secure contact form.

Retirees: From the Topic dropdown, select Income/Pension Verification Letter.
Members: From the Topic dropdown, select Income/Mortgage Verification Letter.

In the Question field, be sure to include any information you need in the letter.

Please note, due to a high volume of email requests, our response time is temporarily more than 5–7 business days.

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.

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.

Protect Yourself from Scams

How Scams Work

Scammers pretend to be an agency or organization you already know to gain your trust. They use similar logos or imagery in correspondence. They may contact you from an email address that mimics—but isn’t identical to—those used by employees of the actual organization. Some can even make a real agency’s phone number appear on caller ID (known as spoofing).

Usually, once they contact you, they claim there is a problem (or a prize or a new benefit available) requiring your immediate attention. But here’s the catch: to fix the problem or receive the reward, the imposter needs you to pay them a fee or provide personal data, such as your Social Security number or bank account information. They may even threaten you with legal action, a suspension of your benefits or arrest if you fail to act.

If someone contacts you and you notice these signs of a scam, remain calm. Hang up the phone or delete the message if you feel like something is off. It’s the easiest way to avoid accidentally giving away personal information.

Scammers have also attempted to create a fake mobile app or website, which looks similar to Retirement Online, aimed to trick users and capture login credentials. Please be aware, we currently do not have a mobile app. Protect yourself from these scams by accessing Retirement Online from the NYSLRS website and avoid using search engines to find a link for the login page.

AI: A New Tool for Scams

You should also be aware of an emerging threat—artificial intelligence (AI), which allows computers to mimic certain human behaviors, such as speech and writing. Using AI, scammers can personalize phishing emails, making it harder to recognize a fraudulent communication. AI may even be able to impersonate the voice of a family member or friend, making you think they are in trouble or need money.

Here are some things you can do to protect yourself from AI-enhanced scams.

Don’t share sensitive information through text or social media.
Don’t send or transfer money to unknown locations.
Consider designating a safe word for your family to use to identify themselves and share that word with family members and close contacts.
When in doubt, hang up and call your loved one back.

Doing Business With NYSLRS

To protect yourself from potential scams and keep your personal information secure, use your NYSLRS ID to verify your identity when doing business with NYSLRS, instead of providing your Social Security number. You can find your NYSLRS ID by signing in to your Retirement Online account, or by checking your annual statement or other correspondence from NYSLRS.

Generally, NYSLRS will only call you if we are following up on a previous communication from you—a phone call, secure email message, Retirement Online request, form or letter. If you haven’t completed a transaction or submitted changes recently, be wary of unexpected calls or requests for your NYSLRS information.

Make sure you review the communications you receive from NYSLRS. We send you letters or emails (depending on your delivery preference in Retirement Online) whenever you update your Retirement Online account or benefit information. If you receive a letter or email about an account change you did not make, contact us immediately.

Keep Your Retirement Online Account Secure

Retirement Online is the fastest and most convenient way to access your retirement account information and conduct business with NYSLRS. And it’s safe to use—it has the same security safeguards used for online banking and by other financial institutions. Here are steps you can take to help ensure your Retirement Online account stays secure:

First, if you don’t have an account, learn more about Retirement Online and click Register Now.
Choose a strong password.
Once you have an account, keep your username and password in a safe place, and don’t share them with anyone. NYSLRS will never ask for your password.
Sign in to Retirement Online at least once a year and update your password so it doesn’t expire. If you forgot your user ID or password, don’t worry—from the customer login page, you can:
- Click the Forgot ID link to look up your user ID.
- Click the Forgot Password link to reset your password.

You’ll need to identify yourself and answer security questions you set when you signed in for the first time.

For step-by-step instructions, read our Forgot User ID and Forgot Password guides.

Update your delivery preference to receive an email notifying you when you have correspondence to view in Retirement Online. That way, when there are changes to your account, you’ll receive an email notifying you instead of waiting for printed notices through the mail.
- Sign in to Retirement Online.
- Look under My Profile Information.
- Click update next to ‘Contact by.’
- Choose Email from dropdown.

For more information, read our Retirement Online Tools and Tips blog post.

Your Death Benefit Beneficiaries

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

It’s important to name beneficiaries and review them periodically. Life circumstances change and a beneficiary you named before might not be one you would choose today. For instance, you may have a new partner or you may have children now. And NYSLRS can only pay a death benefit to the beneficiaries you’ve named.

If you are retired or planning to retire soon, read our blog post, Can You Change Your Beneficiary After You Retire?

2 Types of Beneficiaries

Your primary beneficiary will receive your death benefit. You can list more than one primary beneficiary. If you do, they will share the benefit equally. Or, you can choose different percentages for each beneficiary, which must total 100 percent. (Example: John Doe, 50 percent; Jane Doe, 25 percent; and Mary Doe, 25 percent.)
A contingent beneficiary will only receive a benefit if all your primary beneficiaries die before you do. If you list multiple contingent beneficiaries, they will share the benefit equally unless you choose different percentages.

Special Beneficiary Designations

Your beneficiary doesn’t have to be a person. You can name your estate, a trust or a charity as your beneficiary.

Special Designations for Your NYSLRS Death Benefit Beneficiaries

Estate. When you die, your estate is the money and property you owned. Your death benefit will be given to the executor of your estate to be distributed according to the terms of your will. You can name your estate as the primary or contingent beneficiary of your death benefit. If you name your estate as the primary beneficiary, do not name a contingent beneficiary.
Trust. You can name a trust as a primary or contingent beneficiary if you have a trust agreement or provided for a trust in your will. The trust itself would be your beneficiary, not the individuals for whom you established the trust. (Speak with your attorney if you’re thinking about making your trust a beneficiary.)
Entity. You can also name any charitable, civic, religious, educational or health-related organization as a beneficiary.
Minor children. If your beneficiary is under the age of 18 at the time of your death, your benefit will be paid to the child’s court-appointed guardian. You may instead choose a custodian to receive the benefit on the child’s behalf under the Uniform Transfers to Minors Act (UTMA). Custodians can be designated in Retirement Online, or you can contact us for more information and the appropriate form before making this type of designation.

For more information, read our publication, Life Changes: Why Should I Designate a Beneficiary?

Keep Your Beneficiaries Up to Date with Retirement Online

You can change your beneficiaries at any time. In addition to adding or removing them to reflect your current wishes, you should review the contact information for your named beneficiaries so we can find them when needed.

The fastest way to view or update your beneficiaries is in Retirement Online.

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

Can You Change Your Beneficiary After You Retire?

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That depends. If you choose a pension payment option that provides a lifetime benefit for a beneficiary, you cannot change your beneficiary even if they die before you do. However, if you choose a pension payment option that provides a benefit for a certain period after retirement, you can change your beneficiary after you retire. Learn more about the different pension payment options and whether they allow you to change your beneficiary below.

If your retirement plan provides a one-time lump sum death benefit after you retire, you can also change your beneficiary (or beneficiaries) for that benefit.

Can You Change Your Beneficiary After You Retire?

Available Pension Payment Options

At retirement, you will choose a pension payment option:

Single Life Allowance option: Provides the maximum monthly benefit payment to you for the rest of your life. This option does not provide a continuing benefit so you will not select a beneficiary, and all payments stop when you die.
Joint Allowance options: Provide a lifetime benefit to a loved one in exchange for a reduction to your monthly benefit payment. After your death, your beneficiary will continue to receive your pension (or part of it, depending on the option you choose) for the rest of their life. If your beneficiary dies before you, your monthly benefit payment remains the same and all payments stop when you die. However, if you choose one of the Popup-Up/Joint Allowance options and your beneficiary predeceases you, your monthly benefit payments will increase to the amount payable under the Single Life Allowance option. For these options, you can only choose one beneficiary, and you cannot change your beneficiary after you retire.
Five Year Certain or Ten Year Certain options: Provide a benefit for a certain period after retirement in exchange for a reduction to your monthly benefit payment. If you die within the five- or ten-year period after your retirement (depending on the option you choose), your beneficiary will continue to receive your monthly pension payment for the remainder of the five- or ten-year period. For these options, you can choose more than one beneficiary, and you can change your beneficiary after you retire.

Post-Retirement Death Benefit

Your pension is not your only NYSLRS retirement benefit. Most NYSLRS retirees are eligible to leave a death benefit if they retired directly from payroll or within one year of leaving employment. The post-retirement death benefit is a one-time lump sum payment. For information on how it’s calculated, visit our Death Benefits for Retirees page.

You can change your beneficiary for this benefit at any time, and your beneficiaries for this benefit do not have to be the same as your pension payment option beneficiary.

Manage Your Beneficiaries in Retirement Online

The fastest way to view or update your beneficiaries for your post-retirement death benefit is in Retirement Online.

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

You should also review the contact information for your beneficiaries so we can find them when needed.

Your NYSLRS Pension—A Defined Benefit Plan

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As a NYSLRS member, you are enrolled in a defined benefit plan, also known as a traditional pension plan.

If you are vested and retire from NYSLRS, 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.

Defined benefit plans are supported by contributions from both members and employers. With defined benefit plans, retirement assets are pooled and the investment risk is shared. These plans are usually administered by professional managers, whose long-term investment strategies help to reduce the impact of market turmoil. NYSLRS employs an experienced group of investment managers.

The New York State Common Retirement Fund, which holds and invests the assets of NYSLRS, is one of the largest public pension plans in the United States, providing retirement security for over 1.2 million NYSLRS members, retirees and beneficiaries. The Fund has consistently been ranked as one of the best managed and best funded plans in the nation.

Defined Contribution Plans—And Their Risks

Defined benefit plans are often confused with 401(k)-style retirement savings plans, which are known as defined contribution plans.

With a defined contribution plan, the employee, the employer or both contribute to an individual retirement account for the employee, and the money in the account is invested. In most cases, the employee decides how and where the money is invested (or the plan may offer pre-packaged investment options). At retirement, the employee will be able to draw from the accumulated value of contributions and investment returns, minus any fees.

The amount of money the employee has at retirement often relies on the investment returns of the individual account. So, market downturns, especially near retirement, can negatively affect the value of the benefit. Employees depending on defined contribution plans run the risk of outliving their savings.

NYSLRS’ Defined Benefit Plans

We administer nearly 300 retirement plan combinations. NYSLRS retirement plans:

Provide a guaranteed benefit for life.
Offer a pension based on final average earnings and years of service.
Provide a right to pension benefits (vesting) with five years of service credit.
Build a cost-of-living adjustment (COLA) into pensions to help offset the effect of inflation.
Include disability retirement and death benefits.

We strongly encourage you to review your retirement plan publication for a complete description of your benefits. Visit our Find Your NYSLRS Retirement Plan Publication page and follow the steps listed.