Tag Archives: New York State & Local Retirement System

Welcome, New Members

Welcome new members to the New York State and Local Retirement System (NYSLRS).

What is NYSLRS? NYSLRS administers retirement benefits for New York State employees and municipal and non-teaching school district employees outside of New York City. With nearly 1.2 million members, retirees and beneficiaries, NYSLRS is one of the largest public retirement systems in the nation.

NYSLRS is here to help you plan a financially secure retirement. Retirement may seem like a distant concern, but decisions you make now will have a big impact on your post-work life. Here are a few things you should do now as a new member:

Checklist for New Members

new members checklist

Learn About Defined Benefit Plans

Your NYSLRS pension is a defined benefit plan. This means that, once you are eligible and apply for retirement, you are guaranteed a monthly pension payment for the rest of your life. The amount of your payments will be calculated using a formula set by State law.

Defined benefit plans should not be confused with 401(k)-style retirement savings plans, which are known as defined contribution plans. The value of these plans is limited to the contributions made to an individual’s account and the investment returns on those contributions. And, unlike your NYSLRS pension, these plans do not guarantee a lifetime benefit.

While a 401(k)-style retirement savings plan can supplement a pension and Social Security benefits, it does not provide the same level of financial security as a defined benefit plan.

Sign Up for Retirement Online

If you haven’t already, sign up for a Retirement Online account. You can use Retirement Online to look up your estimated total service credit, name a beneficiary for your death benefit, purchase past service credit and more. This online tool will be an important resource throughout your career, especially as you plan for retirement when you can use our benefit calculator to estimate your pension.

Find Your Retirement Plan Publication

Your retirement plan publication is an essential resource that provides comprehensive information about your NYSLRS benefits. You can look up your specific plan using our Find Your NYSLRS Retirement Plan Publication tool. All you need is your benefit plan code and Tier, which you can find in Retirement Online.

Designate a Beneficiary

Your retirement plan provides you with a death benefit, so it’s important that you designate a beneficiary or beneficiaries. You can designate a beneficiary or beneficiaries through Retirement Online or by mailing us a Designation of Beneficiary form (RS5127).

Understand Service Credit

Your NYSLRS pension will be based on factors such as your tierretirement planage at retirementfinal average earnings and your service credit. You’ll earn one year of service credit for every year of full-time employment with a participating employer. Part-time employment is prorated. If you worked for a public employer or served in the U.S. armed forces before you were a member of NYSLRS, you may be eligible to receive credit for that past service. Because it is a major factor in calculating a NYSLRS pension, additional service credit would increase your pension in most cases. You can request this service through Retirement Online or by mailing us a Request to Purchase Service Credit (Including any Military Service) form (RS5042).

Start Saving for Retirement

Your pension is only one part of a secure financial future. It’s a good idea to save additional money for retirement. Healthy retirement savings will give you more flexibility to do the things you want to do in retirement. They also can be a hedge against inflation and a source of cash in an emergency. You don’t want to wait to start saving; the sooner you do, the more time your money has to grow.

More Information

Visit our Welcome New Members page for more information about NYSLRS and your benefits.

Snapshot of NYSLRS Retirees

NYSLRS was providing pension benefits to 507,923 retirees and beneficiaries as of March 31, 2022.

Nearly 79 percent of NYSLRS retirees and beneficiaries — some 399,628 — live right here in New York State, and they can be found in every region and county. The Capital District, for instance, is home to more than 64,000 retirees and beneficiaries, with roughly the same number living on Long Island.

These New York retirees live in our communities, and their pension money flows right back into our neighborhoods. Retirees in New York pay local property and sales taxes, and their spending supports local businesses, stimulates the economy and generates thousands of jobs.

NYSLRS Retirees in the United States

NYSLRS Retirees in the United States

NYSLRS retirees can also be found in every state. Florida, not surprisingly, is the number two choice after New York, with nearly 39,885 calling the Sunshine State home. North Carolina is third, with 10,011 retirees, followed by New Jersey, with 8,302. North Dakota has the fewest, with only 20 retirees and beneficiaries. Another 646 live outside the United States.

Learn More

Extensive information about our retirees and members, the Common Retirement Fund and Fund investments can be found in our latest Annual Comprehensive Financial Report. This report, published each fall, has a wealth of information about the Retirement System, its investments, strategies and financial position. It also provides details about NYSLRS’ nearly 1.2 million members, retirees and beneficiaries.

Where in New York are NYSLRS Retirees?

NYSLRS retirees tend to stay in New York, where their pensions are exempt from State and local income taxes. In fact, 79 percent of NYSLRS’ 507,923 retirees and beneficiaries lived in the State as of March 31, 2022. And more than half of them lived in just ten of New York’s 62 counties.

So where in New York do these retirees call home? Well, there are a lot of NYSLRS retirees and beneficiaries on Long Island. Suffolk and Nassau counties are home to more than 64,000 recipients of NYSLRS retirement benefits, with annual pension payments of nearly $2.4 billion. But that shouldn’t be surprising. Suffolk and Nassau counties have the largest and third largest number of pension benefit recipients, respectively, of all the counties in the State outside of New York City by population. (The City, which has its own retirement systems for municipal employees, police and firefighters, had 24,061 residents who were NYSLRS retirees and beneficiaries.)

NYSLRS retirees in New York

Erie County, which includes Buffalo, ranked number two among counties in the number of NYSLRS retirees, with more than 33,000. Albany County, home to the State capital, ranked fourth with more than 20,000. Monroe, Westchester, Onondaga, Saratoga, Dutchess and Oneida counties round out the top ten.

All told, retirees and beneficiaries in the top ten counties received $6.5 billion in NYSLRS retirement benefits in 2021-2022.

Hamilton County had the fewest NYSLRS benefit recipients. But in this sparsely populated county in the heart of the Adirondacks, those 505 retirees represent about 10 percent of the county’s population. During fiscal year 2021-2022, $11.5 million in NYSLRS retirement benefits was paid to Hamilton County residents.

NYSLRS Retirees Across the United States and Around the Globe

Outside of New York, Florida remained the top choice for NYSLRS retirees, with 39,885 benefit recipients. North Carolina (10,011), New Jersey (8,302) and South Carolina (7,285) were also popular.

There were 646 NYSLRS benefit recipients living outside the United States as of March 31, 2022. These retirees and beneficiaries live throughout the world, with the most common countries being:

  • Canada: 164
  • Israel: 56
  • United Kingdom: 36
  • Italy: 31
  • Jamaica: 31

Whether you retire close to home or move away, you’ll always be a part of NYSLRS. 

A Look Inside NYSLRS

NYSLRS provided pension benefits to more than 500,000 retirees and beneficiaries during the State fiscal year that ended on March 31. These benefits are provided by the New York State Common Retirement Fund (the Fund).

State Comptroller Thomas P. DiNapoli is administrative head of NYSLRS and trustee of the Fund. It is widely recognized as one of the best-managed and best-funded public retirement funds in the nation.

NYSLRS information

NYSLRS Membership                                                          

But NYSLRS is more than just the pension fund. The system serves more than 685,000 members as of March 31. Here are some facts about our membership:

  • 506,084 active members (that is, members still on the public payroll) work for 2,972 public employers statewide.
  • About one-third of those active members work for New York State. The rest work for counties, cities, towns, villages, school districts and public authorities.
  • Nearly 94 percent of total active members are in the Employees’ Retirement System (ERS). The Police and Fire Retirement System (PFRS) accounts for 6 percent of total active membership.
  • More than 50 percent of all Retirement System members are in Tier 6.
  • In ERS, 54 percent of members are in Tier 6, while 40.5 percent are in Tiers 3 and 4.
  • In PFRS, 45 percent of members are in Tier 6, while 48 percent are in Tier 2.

NYSLRS Retirees and Beneficiaries

The average pension for an ERS retiree was $26,467 as of March 31, 2022; the average for a PFRS retiree was $58,522. But these pension payments don’t just benefit the System’s retirees and beneficiaries. Seventy-nine percent of retirees and beneficiaries stay in New York and generate billions of dollars in economic activity across the state. Their spending supports local businesses, contributes to local taxes and creates jobs in our communities.

Learn More About NYSLRS

Extensive information about our members and retirees, the Fund and Fund investments can be found in the 2022 Annual Comprehensive Financial Report. This report includes detailed information about the Fund’s investments, strategies and financial position. It also provides details about NYSLRS’ 1.19 million members, retirees and beneficiaries.

Deferred Compensation:
Another Source of Retirement Income

Many financial experts say that you will need 70 to 80 percent of your pre-retirement income to maintain your standard of living once you retire. For NYSLRS members, a financial plan in retirement is likely to include your NYSLRS pension and Social Security benefits. For greater financial stability, it may make sense to supplement your retirement with personal savings such as a deferred compensation plan.

deferred compensation

What is Deferred Compensation?

Deferred compensation plans are voluntary retirement savings plans like 401(k) or 403(b) plans – but designed and managed with public employees in mind. The New York State Deferred Compensation Plan (NYSDCP) is the 457(b) plan created for New York State employees and employees of other participating public employers in New York.

Once you sign up for the NYSDCP, you can build your own investment portfolio or invest in established investment funds. Your contributions will be automatically deducted from your paycheck, and you can contribute as little as 1 percent of your earnings.

One option for a deferred compensation plan is a tax-deferred account, where you make contributions with pre-tax money. This way, you won’t have to pay State or federal taxes on your contributions and earnings until you start making withdrawals. Your employer also may offer the option for a Roth account, where you make contributions with after-tax money. With a Roth account, you won’t pay taxes on withdrawals in retirement. Find out more about both options.

If your employer is not listed as an NYSDCP participating employer, check with your human resources or personnel office about other retirement savings options.

What Does Deferred Compensation Mean For Me?

Deferring income from your take-home pay may mean less money to spend in the short-term, but you’re planning ahead for your financial future.

You can enroll in a deferred compensation plan anytime — whether you’re approaching retirement or you just started working. Usually, the sooner you start saving, the better prepared you’ll be for retirement.

Manhattan skyline with light memorial

World Trade Center Presumption Deadline Extended

The deadline for members to file a notice with NYSLRS of their participation in the World Trade Center rescue, recovery or cleanup efforts has been extended.

The new deadline is September 11, 2026.

World Trade Center Presumption

What is the World Trade Center Presumption Law?

The World Trade Center Presumption Law provides a presumption that eligible NYSLRS members and retirees — who become permanently disabled and are unable to do their jobs due to certain conditions — can claim their permanent disabilities are the result of participation in World Trade Center rescue, recovery or cleanup operations. The presumption will apply unless it’s proven the condition was the result of other factors.

If you participated and you meet the eligibility requirements, the presumption allows you to:

  • File for an accidental disability retirement in the future;
  • Have an existing disability retirement benefit reclassified as an accidental disability retirement benefit; or
  • Leave your beneficiaries an accidental death benefit.

Your disability or death must be due to one of the qualifying conditions specified in the law.

Who should file?

You must file an Application for World Trade Center Notice (RS6047-N) prior to submitting an Application for World Trade Center Accidental Disability Presumption (RS6047-W). Even if you do not currently suffer one of the qualifying conditionsfiling this notice will protect your rights — and the rights of your beneficiaries — to apply for benefits in the future.

Once you file a notice with NYSLRS, there is no subsequent deadline to file for an accidental disability retirement or retirement reclassification should the need arise.

Questions?

If you have any questions, check out our Frequently Asked Questionsemail us or contact our Call Center toll-free at 1-866-805-0990 (518-474-7736 in the Albany, New York area).

Can I change my beneficiary?

Can You Change Your Beneficiary After You Retire?

Can you change your beneficiary after you retire? That depends. If it’s the beneficiary for your pension, in most cases the answer is no. If you choose a pension payment option that provides a lifetime benefit for a surviving beneficiary, you cannot change that beneficiary, even if they die before you do. If your retirement plan provides a one-time, lump sum death benefit after you retire, you can change your beneficiary (or beneficiaries) for that benefit.

Can you change your beneficiary?

Available Pension Payment Options

At retirement, you will choose from a variety of pension payment options. After your pension becomes payable, you have up to 30 days to change your option. After that, you cannot change your pension payment option for any reason.

  • If you don’t want to leave a lifetime benefit to someone else, the Single Life Allowance option may be right for you, but you won’t be able to change your option and add a beneficiary later. For example, if you’re single when you retire and marry during retirement, you cannot change your option to one that provides a continuing benefit for your spouse.
  • If you want to leave a lifetime benefit to someone, there are several Joint Allowance options you can choose. After your death, if your beneficiary survives you, they will continue to receive all or part of your pension (depending on the specific option you choose) for the rest of their life. For these options, you can only name one beneficiary, and you cannot change that beneficiary after the 30-day window.
  • There are payment options that allow you to change your beneficiary. For example, with the Five Year Certain or Ten Year Certain options, you can change your beneficiary at any time, but these options only provide a short-term benefit for a survivor.

The Post-Retirement Death Benefit

Your pension is not your only NYSLRS retirement benefit. Most NYSLRS retirees are eligible for a death benefit if they retired directly from payroll or within one year of leaving covered employment. This post-retirement death benefit is a one-time, lump-sum payment. 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.

Visit our Death Benefits page for retirees for information about how your post-retirement death benefit is calculated and how to update your beneficiaries if you are retired.

If you have questions about beneficiaries, death benefits or pension payment options, please contact us.

Reporting a Member’s or Retiree’s Death to NYSLRS

When a NYSLRS member or retiree dies, it is important that survivors report the death to NYSLRS as soon as possible.

How Survivors Can Report a Death

Survivors can find the report a death form on the NYSLRS website.

The form has two parts: The first section is for the person reporting the death to enter information about themselves. They should be sure to include a phone number in case we need to contact them. In the second part, they should enter information about the deceased member or retiree. If they know the deceased’s NYSLRS ID or the last four digits of their Social Security number, they should enter that too.

reporting a death

Survivors can upload a photocopy of the death certificate so NYSLRS can begin identifying any benefits that may be payable. (Note: we will still need an original death certificate before any benefits are paid – see below.) The form is transmitted over a secure network.

Survivors can also report a death by calling our toll-free number at 1-866-805-0990 (or 518-474-7736 in the Albany, New York area), weekdays from 7:30 am to 5:00 pm. Once they reach the call menu, they should press 3, then 1. The call will be transferred to a customer service representative, who will ask for:

  • The deceased’s NYSLRS ID, retirement or registration number or Social Security number.
  • The date of death.

We may also ask for the addresses and phone numbers of immediate family members who may be beneficiaries. Please note: Our customer service representatives cannot release the identities of a member’s or retiree’s beneficiaries over the phone.

Mailing a Death Certificate

Before any death benefits can be processed or paid, NYSLRS will need an original, certified death certificate, even if a photocopy has already been submitted. The death certificate (and the sender’s contact information) should be mailed to:

NYSLRS
Attn: Survivor Services
110 State St
Albany, NY 12244

We recommend that death certificates be sent by certified mail, return receipt requested.

What Happens Next

Once we receive the death certificate, we will send named beneficiaries or their certified representatives (guardians, powers of attorney, executors) information about death benefits and, if applicable, information about any continuing pension benefits and death benefits that may be payable based on the member or retiree’s tier and retirement plan. We will also send named beneficiaries the appropriate forms to complete.

It could take several months from the date we are notified of a death to the date that any death benefit is paid. This is the average time necessary to recover any pension payments made after the retiree’s death and calculate any death benefit that may be due, as well as receive a certified copy of the death certificate, tax withholding forms and notarized forms from the named beneficiaries. Our top priority is paying a continuing pension benefit as soon as possible.

If a member is retired when he or she dies, we will stop payment of any outgoing pension benefits. We will automatically reclaim any direct deposit payments that went out after a member’s death. Survivors should be aware that any uncashed pension checks in a deceased retiree’s name must be returned to us.

Talk to Your Loved Ones

If you’re a NYSLRS member or retiree, you should talk to your loved ones and provide them with the information they’ll need when the time comes. Let them know your wishes, where to find important papers and what steps they will need to take. And if your documents are organized and accessible, it will make things that much easier.

Our publication Getting Your Affairs in Order and A Guide for Survivors provides step-by-step guidance about what should be done now and after a member’s or retiree’s death.

Supplement Your NYSLRS Pension With Retirement Savings

Do you have a retirement savings account? If you’re a new NYSLRS member, your future pension could provide a significant portion of your retirement income, but it’s also a good idea to save for retirement to supplement your pension and Social Security.

Why Should You Save for Retirement?

Retirement savings can be an important financial asset when you retire. Savings can enhance your retirement lifestyle and give you the flexibility to do the things you want.

Your savings can provide money for traveling, continuing your education, pursuing a hobby or starting a business. The money you set aside can be a resource in case of an emergency, act as a hedge against inflation and boost your retirement confidence.

Setting a Retirement Savings Goal

How much to save is a personal decision, but here are some things to consider.

Financial advisers recommend that people save 10 to 15 percent of their gross earnings throughout their careers to be able to retire comfortably. But that advice is aimed at people with defined contribution retirement plans, such as a 401(k), as their main source of retirement income.

As a NYSLRS member, you’re part of a defined benefit plan, also known as a traditional pension plan. Your pension, based on your years of service and earnings, will provide a lifetime benefit. That benefit could replace a substantial portion of your earnings during retirement.

Having a pension means you may not need to save as much as someone with only a 401(k). If you’re just starting out in your career, you may want to pick a savings amount (or percentage of your earnings) you’re comfortable with. Use a retirement savings calculator to see how much your savings plan could yield over time or test the results of different savings amounts.

Here you can see potential savings results of someone who invests 50 dollars every two weeks over 30 years. While the stock market has been turbulent lately, stock values tend to rise. Over the long term, stock market returns average about 10 percent a year.

retirement savings

As you get closer to retirement, you should develop a plan to withdraw money from your retirement savings. A withdrawal plan will give you a better grasp of the income you can expect from your nest egg.

Here is one possible withdrawal strategy, which was designed to provide retirement income for 20 years. Please note, if your retirement is far in the future, the money you withdraw may not have the same value that it has today. However, while inflation has been high in recent months, it does cycle and has been much lower in the past.

COLA coming soon

If you find you’ll need to save more to meet your goal, you can start making adjustments to help ensure you’ll have enough savings in retirement.

How To Get Started

State employees and many municipal employees are eligible to save for retirement through the New York State Deferred Compensation Plan. Once you’ve signed up for the plan, your retirement savings (which may be tax-deferred, depending on your plan) will be automatically deducted from your paycheck. (The Deferred Compensation Plan is not affiliated with NYSLRS.)

Find out if your employer participates in the Deferred Compensation Plan. If they don’t, check with your employer’s human resources (personnel) office about other savings options you may be eligible for.

More Information About Retirement Savings

You can find more information about saving for retirement in these recent posts:

PFRS Member Milestones

The Police and Fire Retirement System (PFRS) covers nearly 32,000 police officers and firefighters across New York State. As a PFRS member, you’ll pass a series of important milestones throughout your career. Knowing and understanding these milestones will help you better plan for your financial future.

Some milestones are common to most PFRS members; others are shared by members in a particular tier or retirement plan. For example, your plan determines when you would be eligible to apply for a non-job-related disability benefit.

A recent amendment to Retirement law changed a milestone for some members. As of April 9, 2022, Tier 5 and 6 members are now vested after earning five years of service credit. Previously, members in these tiers needed ten years of service to become vested. Being vested means you are entitled to a NYSLRS pension, even if you leave public employment before retirement age.

Member Milestones to Remember

PFRS member milestones

Most PFRS members are in special plans that allow them to retire with full benefits, regardless of age, after 20 or 25 years of service. If you are in a special plan, only certain job titles would give you creditable service toward a 20- or 25-year milestone. For example, if you are in the State Police plan, service with a city police department would be creditable, but service as a sheriff’s deputy or corrections officer would not be.

PFRS members in regular plans can retire as early as age 55, but may face a benefit reduction if they retire before their full retirement age.

Your specific milestones, along with your pension calculation, are determined by your retirement plan, so it is important to familiarize yourself with the details of your plan. You can find information about your milestones in your retirement plan booklet on our Publications page. Not sure which retirement booklet is yours? Your retirement plan is listed in your Retirement Online account or you can ask your employer. You can also read our recent blog post for tips on finding your plan booklet.