Tag Archives: NYSLRS

Estimate Your Pension in Retirement Online

Here is the most important retirement planning tip you’ll receive from NYSLRS: most members can create their own pension estimate in minutes using Retirement Online.

A Retirement Online estimate is based on the most up-to-date account information we have on file for you. You can enter different retirement dates to see how those choices would affect your benefit. When you’re done, you can print your pension estimate or save it for future reference.

estimate your pension

How to Estimate Your Pension

First you will need a Retirement Online account. Once you register and sign in, go to the ‘My Account Summary’ section of your Account Homepage and click the ’Estimate my Pension Benefit’ button.

You can enter the date (or age) that you plan to retire. You can use your current annual earnings or add in expected pay increases. You can also include any service credit you plan to purchase. If you add the birthdate for a beneficiary, you’ll see the estimated monthly payment amounts under the pension payment options that provide a benefit for a survivor.

Remember, the pension amounts you’ll see are just an estimate; it is not a guarantee of what you’ll receive when you retire.

Most Tier 2 through 6 members (more than 90 percent of all NYSLRS members) can use the Retirement Online pension calculator. However, some members may not be able to use the Retirement Online calculator because of their circumstances, for example, if they have recently transferred a membership to NYSLRS, or if they are a Tier 6 member with between five and ten years of service. 

The system will notify you if your estimate cannot be completed using the Retirement Online pension calculator. Please contact us to request a pension estimate if you receive this notification. If you are in Tier 2 through 6, you can use the “Quick Calculator“ on the NYSLRS website. The Quick Calculator generates estimates based on information you provide.

NYSLRS – One Tier at a Time: ERS Tier 5

When you joined the New York State and Local Retirement System (NYSLRS), you were assigned a tier based on the date of your membership. This post looks at Tier 5 members of the Employees’ Retirement System (ERS).

Your tier determines such things as your eligibility for benefits, the calculation of those benefits, death benefit coverage and whether you need to contribute toward your benefits.

ERS has six tiers. Anyone who joined from January 1, 2010 through March 31, 2012 is in Tier 5. There were 33,619 ERS Tier 5 members as of March 31, 2022, representing 5.2 percent of ERS membership.

Most ERS Tier 5 members (unless they are in special retirement plans) retire under the Article 15 retirement plan. Check out the graphic below for the basic retirement information for Tier 5 members in this plan.

ERS Tier 5

Membership Milestones

As of April 9, 2022, Tier 5 members only need five years of service credit to become vested. If you are a vested member in the Article 15 retirement plan, you are eligible for a lifetime pension benefit as early as age 55. However, if you retire before the full retirement age of 62, your benefit will be reduced.*

If you retire with less than 20 years, the benefit is 1.66 percent of your final average earnings (FAE) for each year of service. If you retire with 20 to 30 years, the benefit is 2 percent of your FAE for each year of service. For each year of service beyond 30 years, you will receive 1.5 percent of your FAE. For example, with 35 years of service, you can retire at 62 with 67.5 percent of your FAE.

Where to Find More ERS Tier 5 Information

For more information about ERS Tier 5 membership, find your NYSLRS retirement plan publication. It’s a comprehensive description of the benefits provided by your specific plan.

You can check your service credit total and estimate your pension using Retirement Online. Most members can use our online pension calculator to create an estimate based on the salary and service information NYSLRS has on file for them. You can enter different retirement dates to see how your choices would affect your potential benefit.

Members may not be able to use the Retirement Online calculator in certain circumstances, for example, if they have recently transferred a membership to NYSLRS. These members can contact us to request an estimate or use the “Quick Calculator” on our website. The Quick Calculator generates estimates based on information you provide.

For information about other tiers, our series NYSLRS – One Tier at a Time gives you a quick look at the benefits for other tiers in both ERS and the Police and Fire Retirement System.

*Uniformed court officers or peace officers employed by the Unified Court System that have at least 30 years of credit may retire with a full benefit as early as age 55.

Retirement Myths vs Facts

Common Retirement Myths

retirement myths versus facts

Retirement law can be confusing. Sometimes a small misunderstanding can have a big impact on your benefit. That’s why it’s important to correct some common retirement myths. Here are the top five:

Retirement Myth #1

myth

My NYSLRS contributions go into a personal 401(k)-style savings account that I will get when I retire.

fact

NYSLRS is a defined benefit plan. Your pension will be based on your earnings and years of service  — it will not be based on your contributions.

Retirement Myth #2

myth

If I work for more than one NYSLRS participating employer, the service credit from both will count toward my pension benefit.

fact

It depends. You can only earn one year of service credit in a 12-month period. If you work part-time for two participating employers, you would receive credit toward retirement from both, up to the maximum of one year. However, if you already work full-time for one NYSLRS employer plus you work part-time for another employer, your part-time job won’t increase your retirement service credit. Also, if you are a full-time employee of a school district, you won’t earn extra service credit if you work during the summer.

Retirement Myth #3

myth

NYSLRS administers health insurance coverage for its retirees.

fact

NYSLRS does not administer health insurance programs. We may deduct premiums from a retiree’s monthly pension benefit to pay for health insurance coverage if their former employer instructs us to do so, but we can’t answer questions about coverage or changes in premium amounts.

The New York State Department of Civil Service administers the New York State Health Insurance Program (NYSHIP) for New York State retirees and some municipal retirees. If you are still working, your employer’s human resources (personnel) office should be able to answer your questions about post-retirement coverage.

Retirement Myth #4

myth

I can take out a NYSLRS loan after I retire.

fact

You need to actively work for New York State or a participating employer to borrow against your retirement contributions. NYSLRS loans are not available to retirees.

Retirement Myth #5

myth

If I’m vested and no longer working for a public employer, NYSLRS will automatically start paying my pension as soon as I’m eligible.

fact

Your pension is not automatic. You must apply for retirement 15 to 90 days before your retirement date. Your retirement date is up to you. Most NYSLRS members can begin collecting their pension as early as age 55. If you retire between age 55 and your full retirement age (62 of 63, depending on your tier and plan), you may face a permanent benefit reduction. If you have left public employment though, your benefit won’t increase after you reach full retirement age, so delaying retirement beyond that point can cost you money.


You can find more answers about your NYSLRS benefits in your retirement plan publication. If you have account-specific questions, please message our customer service representatives using our secure contact form.

Retirement Online for Retirees Just Got Better

More than 495,000 members and retirees have discovered that Retirement Online is a secure, convenient way to do business with NYSLRS. Now retirees can do even more online.

Retirement Online for Retirees

Check out these new features in Retirement Online for retirees:

Retirement Online for Retirees – New FeatureManage Your Direct Deposit

Ninety-six percent of NYSLRS retirees already receive their pension payments with direct deposit. Now you can use Retirement Online to securely update your bank account information. Whether you’ve switched banks or just need to update your bank account information, you can make those changes online.

If you’re still receiving your pension by mailed paper check, sign up for direct deposit through Retirement Online and get your money faster.

Retirement Online for Retirees – New FeatureView a “Pay Stub” of Your Pension Payment.

You can access full “pay stubs” for your payments from January 2023 onward by clicking the date of the payment you want to view. You can track year-to-date totals and any deductions for health insurance, union dues, tax withholding or disbursements under a domestic relations order. NYSLRS will also send you a notice whenever your net payment amount changes.

Other Retirement Online Features for Retirees

These new features add to what you can already do with Retirement Online:

Update Your Contact Information
Moving? Changing your phone number or email address? It’s easy to keep NYSLRS updated so you won’t have to worry about missing important news and information about your benefits.

You can schedule an address change so you’ll get NYSLRS mail at your seasonal home without interruption.

Manage Your Beneficiaries
Eligible retirees can change their beneficiary for their post-retirement death benefit or change the contact information for an existing beneficiary.

Retirement Online makes it easy to view your beneficiary selections and submit changes instantly.

Coming In 2024 — Print Your Own 1099-R

In January 2024, you will be able to view, download and print your 1099-R tax form in Retirement Online (starting with the 1099-R for your 2023 pension earnings).

Also, starting this summer, you’ll have the option to sign up to receive an email notification each January as soon as your 1099-R is ready to view in Retirement Online. From your account, you’ll be able to download and print the form rather than waiting to receive it in the mail.

If You Don’t Have an Account, Sign Up Today

If you don’t have a Retirement Online account, now is a great time to sign up. Click “Sign Up” on our Retirement Online Sign In page to get started. If you need help, we have step-by-step instructions on registering for your account and how to sign in for the first time. You may also find our Retirement Online Tools and Tips blog post helpful.

Already have an account? Sign in and make sure your email and mailing address are current to ensure that you receive important information from NYSLRS in the coming year.

If it’s been a while, you may need to look up your username or reset your password. If you still need assistance, call our customer service representatives at 866-805-0990, press 2 to access the retiree menu, follow the prompts, and then press 1 for Retirement Online assistance.

Designating Beneficiaries: An Important Decision

When you joined NYSLRS, you may have named one or more beneficiaries to receive certain benefits if you die.

NYSLRS retirement plans provide death benefits for beneficiaries of eligible members who die before retiring. The “ordinary death benefit” is paid to the beneficiary or beneficiaries that you designated, so it’s important to review periodically to make sure your choices reflect your current wishes. For example, if you just married, you may want to update your NYSLRS account information to name your new spouse as your beneficiary.

Types of Beneficiaries

 There are two types of beneficiaries — primary and contingent beneficiaries:

  • Your primary beneficiary will receive any payable ordinary death benefit. You can list more than one primary beneficiary. If you do, they would share the benefit equally. Or, you can choose different percentages for each beneficiary that total 100 percent. (Example: John Doe, 50 percent; Jane Doe, 25 percent; and Mary Doe, 25 percent.)
  • contingent beneficiary will only receive the 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 a charity, a trust or your estate as your beneficiary.

designating beneficiaries

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.

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 NYSLRS beneficiary, not the individuals for whom you established the trust. (You may want to speak with your attorney if you’re thinking about making your trust a beneficiary.)

You can also name any charitable, civic, religious, educational or health-related organization as a beneficiary.

If your beneficiary is a minor child (under age 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.

Updating Your Beneficiaries

You can change your beneficiaries at any time. You should also review your named beneficiaries to make sure their contact information is up to date.

  • The fastest way to view or update your beneficiaries is in Retirement Online. You can add beneficiaries, update beneficiary information or remove beneficiaries. Sign in, then click “Manage My Beneficiaries” on the right, under “I want to ….”
  • You can also complete and mail us a Designation of Beneficiary form (RS5127). Read the instructions on the form before entering your preferences. Be sure to include all your beneficiaries on the form. Your new beneficiary designations will replace all your previously named beneficiaries. Though your designations will need to be reviewed and approved, your updated beneficiary information becomes effective when we receive your properly completed, signed and notarized form.

More Information

You can read more about beneficiary designations in our Life Changes: Why Should I Designate a Beneficiary? publication. If you have questions, please contact us.

If you are retired, you may wish to read our blog post Can You Change Your Beneficiary After You Retire?

Divorce and Your Pension

One aspect of retirement planning some members may not consider is how a divorce may affect their pension benefit. In New York State, retirement benefits earned by NYSLRS members are considered marital property. So, if you get a divorce, a judge may award your ex-spouse part of your pension. The process for dividing retirement assets after a divorce is complicated, but here is some basic information.

Dividing Pension Benefits After a Divorce

A commonly used formula for distributing pension benefits, established by the State Court of Appeals (the Majauskas formula), provides an ex-spouse with a portion of your pension based on half of the service credit you earned while you were married.

For example, let’s say you worked in your public-sector job for 10 years before you married. Then you got married continued working in public service for another 20 years, and then divorced. After the divorce, you continued working in public service for an additional 10 years. You’d have 40 total years of service credit, but only 20 years of your service was earned during your marriage. Under the Majauskas formula, your ex-spouse would be entitled to the proceeds of half of the service credit you earned during the marriage (10 years of service), or a quarter of your pension.

Other ways to divide pension benefits include a flat dollar amount, a benefit based on a specific date or a flat percentage of the benefit.

divorce and your pension

Domestic Relations Orders

To divide your retirement benefits after a divorce, NYSLRS needs a Domestic Relations Order (DRO). This court order, issued after a final judgment of divorce, gives us specific instructions on how your benefits should be split.

If your pension benefits will be affected by divorce, your DRO should be submitted to the Retirement System before you apply for retirement. We require a certified copy of the DRO, and it must be signed by a Supreme Court judge and entered as an official court document. We also require proof of divorce, such as a copy of the judgment of divorce. Failure to submit your DRO before you retire could result in a delay of your pension payments or an overpayment to you, which would need to be recovered by NYSLRS.

Learn More

Divorce may affect other NYSLRS benefits as well. Read Divorce and Your Benefits for more information including formulas for determining an ex-spouse’s share, a template you can use to draft a DRO and how to avoid a rejected DRO.

Enhanced Death Benefit for Survivors of COVID-19 Victims

COVID-19 has resulted in tens of thousands of deaths across New York State. Sadly, the pandemic’s victims include NYSLRS members who carried out their essential duties despite personal risk.

The families of these members can take some comfort in knowing that if their loved one contracts COVID-19 while on the job, they may be eligible for an enhanced death benefit if their loved one dies as a result.

COVID-19

The COVID-19 Accidental Death Benefit

Most NYSLRS members’ beneficiaries are eligible for a death benefit if they die while in service. This “ordinary death benefit” provides a member’s designated beneficiary or beneficiaries a single, lump sum payment, worth up to three years’ salary.

For public employees who contract COVID-19 on the job and die from COVID-19, an accidental death benefit may be paid instead of the ordinary death benefit.

The NYSLRS accidental death benefit is a monthly pension benefit — not a one-time payment — paid to a surviving spouse for life. If there is no surviving spouse, the benefit can be paid to dependent children until a certain age, or if there are none, then to a dependent parent for life. Generally, the accidental death benefit is equal to 50 percent of the member’s final average earnings or last year’s salary depending on the retirement plan the member is enrolled in. (Visit our website for help finding your retirement plan publication.)

In addition to the accidental death benefit, a special accidental death benefit may also be payable to survivors of a member of the New York State and Local Police and Fire Retirement System.

Eligibility Requirements

A NYSLRS member’s statutory beneficiary would be eligible for the accidental death benefit if the member:

  • Worked at either their normal workplace or another assigned workplace, not their residence, as directed by their employer, on or after March 1, 2020;
  • Contracted COVID-19 within 45 days of the last day that the member reported for work;
  • Died on or before December 31, 2024; and
  • Died from COVID-19 or COVID-19 caused or contributed to their death.

The COVID-19 benefit is available for all NYSLRS members (Employees’ Retirement System and Police and Fire Retirement System), regardless of job title or tier.

How to Claim the Benefit

When someone calls NYSLRS to report a death, they should let us know it was COVID-related. We’ll also ask for an original death certificate. We will then reach out to the beneficiary to assist them in claiming the benefit. For the COVID-19 death benefit, NYSLRS will confirm with the employer the dates that the member reported to work and request the required documentation showing COVID-19 as the cause of death. The COVID-19 death benefit will be reduced by any ordinary death benefits paid out to a beneficiary by NYSLRS.

NYSLRS – One Tier at a Time: ERS Tier 6

When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. This post looks at Tier 6 members of the Employees’ Retirement System (ERS).

Your tier determines such things as your eligibility for benefits, the calculation of those benefits, death benefit coverage and whether you need to contribute toward your benefits.

ERS has six tiers. Anyone who joined ERS on or after April 1, 2012 is in Tier 6. There were 350,986 ERS Tier 6 members as of March 31, 2022. At 54 percent of membership, Tier 6 is the largest ERS tier.

Most ERS Tier 6 members (unless they are in special retirement plans) retire under the Article 15 retirement plan. Check out the graphic below for the basic retirement information for Tier 6 members in this plan.

ERS Tier 6

Membership Milestones

As of April 9, 2022, Tier 6 members only need five years of service credit to become vested. If you are a vested member in the Article 15 retirement plan, you are eligible for a lifetime pension benefit as early as age 55, but if you retire before the full retirement age of 63, your benefit will be reduced.

If you retire with fewer than 20 years, the benefit is 1.66 percent of your final average earnings (FAE) for each year of service. If you retire with exactly 20 years of service, the benefit is 1.75 percent of your FAE for each year of service (35 percent of your FAE).

If you retire with more than 20 years of service, you’ll receive 35 percent for the first 20 years, plus 2 percent for each additional year. For example, with 35 years of service you can retire at age 63 with 65 percent of your FAE.

Where to Find More ERS Tier 6 Information

For more information about ERS Tier 6 membership, find your NYSLRS retirement plan publication. It’s a comprehensive description of the benefits provided by your specific plan.

You can check your service credit total and estimate your pension using Retirement Online. Most members can use our online pension calculator to create an estimate based on the salary and service information NYSLRS has on file for them. You can enter different retirement dates to see how your choices would affect your potential benefit.

Members may not be able to use the Retirement Online calculator in certain circumstances, for example, if they have recently transferred a membership to NYSLRS, or if they are a Tier 6 member with between five and ten years of service. These members can contact us to request an estimate or use the “Quick Calculator” on our website. The Quick Calculator generates estimates based on information you provide.