Tag Archives: pension payment options

applying for retirement

Applying for Retirement

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When you’re ready, Retirement Online makes applying for retirement fast and convenient. There are no forms to mail in and nothing to have notarized. When you apply online, you’ll be able to:

  • See estimates of your pension for the payment options available to you.
  • Upload documents while applying or after submitting your application.
  • Submit changes to your application quickly and easily if needed.

For more information, visit our Preparing and Applying for Retirement page.

applying for retirement

Use Retirement Online to Apply for Retirement

To get started:

Choose Your Retirement Date

Your date of retirement is up to you! Keep in mind:

  • You must apply at least 15 days but no more than 90 days before your chosen retirement date.
  • You must stop working and be off your employer’s payroll on your retirement date (your last day on payroll must be no later than the day before your retirement date).
  • Your date of retirement can be a weekend or holiday (for example, if your last day of work is a Friday your retirement date can be Saturday).

Select Your Pension Payment Option

You can choose from several pension payment options, all of which provide you with monthly pension payments for the rest of your life. The Single Life Allowance provides the maximum amount, but upon your death, payments will stop—there will be no continuing payments to a beneficiary, even if you die soon after retiring. Or, you can choose to receive a reduced monthly pension payment to provide for:

Enter Federal Tax Withholding Information

Most NYSLRS pensions are subject to federal income tax, and NYSLRS is required to withhold federal income tax from your pension benefit at the default withholding status of “single with no adjustments” unless you inform us otherwise. Enter federal tax withholding information to adjust the amount withheld.

Note: NYSLRS pensions are not subject to New York State or local income tax. However, if you permanently move to another state, that state may tax your pension.

Sign Up for Direct Deposit

With direct deposit, your pension payment will be deposited directly into your bank account on the last business day of each month. It’s fast, convenient and secure. Save time and set up direct deposit pension payments when you apply for retirement by entering your bank account number and routing number.

If you have a joint account holder on your bank account, you’ll need to print and complete the Electronic Funds Transfer Direct Deposit Enrollment Application (RS6370) and have your joint account holder sign the form. It’s best to do this in advance so you can upload the completed form while adding your direct deposit information in Retirement Online. However, you can upload the completed form later.

Upload Proof of Date of Birth

You must submit proof of your date of birth before any pension benefits can be paid. If you select a pension payment option that provides a lifetime pension benefit to a beneficiary upon your death, you must submit proof of your beneficiary’s date of birth as well.

Upload one of the following acceptable documents:

If you don’t have one of these documents available when you apply online, you can submit them later. However, if your submission is not timely, your first payment may be delayed.

Pay Off Outstanding Loans and Service Credit Purchases

If you haven’t done so already:

  • Pay off your NYSLRS loan.
  • Pay off service credit purchases.

Review Your Employment History and Service Credit

You’ll see which employers reported service credit for you. Review your employment history and add any missing public employment.

You can request additional service credit for previous employment or military service, or you can request a transfer or tier reinstatement when you apply to retire. However, remember it’s best to make these requests well before you apply.

One Exception—Disability Retirement

You may be eligible for a disability retirement benefit if you are permanently disabled and cannot perform your duties because of a physical or mental condition. Applications for disability retirement can’t be submitted in Retirement Online. If you are applying for a disability retirement, you must submit a paper application. Visit our Disability Benefits page for more information.

For Benefit Information, Read Your Retirement Plan Publication

Your service and disability retirement benefits and death benefits are based on your tier, retirement plan, service credit, and other factors. For comprehensive information about your retirement benefits and how your pension will be calculated, find your NYSLRS retirement plan publication.

Pension Payment Options: Providing a Lifetime Benefit for a Single Beneficiary

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Your NYSLRS pension will provide you with a monthly benefit for the rest of your life. When you apply for retirement, you’ll have the option to choose the maximum amount payable or a reduced benefit in exchange for possibly continuing payments to a beneficiary upon your death. In this post, we’ll explore the Joint Allowance and Pop-Up/Joint Allowance pension payment options which provide a lifetime benefit for a single beneficiary.

Joint Allowance and Pop-Up/Joint Allowance Pension Payment Options

Joint Allowance Pension Payment Options

In exchange for a permanent reduction in your monthly pension payment, the Joint Allowance options provide a lifetime benefit to a beneficiary after you die.

You can select either:

  • Full: Your beneficiary will receive the same monthly pension payment as you were receiving for life.
  • Half: Your beneficiary will receive half of the monthly pension payment you were receiving for life.
  • Partial: Your beneficiary will receive either 75, 50, or 25 percent of the monthly pension payment you were receiving for life.

You can only choose one beneficiary under a Joint Allowance option, and you cannot change your beneficiary after you retire—regardless of the circumstances. If your beneficiary dies before you, all payments will stop when you die.

Pension payment amounts are based on the birth dates of both you and your beneficiary. Because life expectancy is a factor, the reduction to your pension payment amount will be more if you select a child or grandchild than a spouse of a similar age as you.

If you designate your spouse as your beneficiary, they would be eligible to receive 50% of your cost-of-living adjustment.

Pop-Up/Joint Allowance Pension Payment Options

The Pop-Up/Joint Allowance options have all the same terms of the Joint Allowance options with added security—if your beneficiary dies before you, your monthly pension payment will “pop up” or increase to the amount you would have been receiving had you chosen the Single Life Allowance option at retirement. (Note: This only affects future payments. You would not be entitled to retroactive payments.) Therefore, the Pop-up/Joint Allowance options reduce your monthly pension payment a little more than a comparable Joint Allowance option.

Other Pension Payment Options

The Single Life Allowance provides the maximum monthly pension payment to you for the rest of your life. However, this option does not provide a continuing benefit. All payments will stop when you die, and nothing will be paid to a beneficiary.

Some pension payment options provide a limited benefit for multiple beneficiaries.

Things to Consider

When choosing your pension payment option, you may want to consider both your spouse’s and your:

  • Financial needs (for instance, whether you have a mortgage, unpaid loans or other monthly payments).
  • Other sources of retirement income (for example, Social Security or savings).
  • Options for continuing benefits (for example, whether your retirement plan includes a death benefit or if you have life insurance).
  • Age and health at retirement.

You only have 30 days after the last day of your retirement month to change your option. After that date, you cannot change your option for any reason.

Estimate Your Pension in Retirement Online

Most members can use Retirement Online to create a pension estimate based on the most up-to-date salary and service information we have on file. You can enter different retirement dates, beneficiaries and pension payment options to see how they affect your potential benefit.

When you’re done, print your pension estimate or save it for future reference.

Pension Payment Options: Providing a Limited Benefit for Multiple Beneficiaries

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Your NYSLRS pension will provide you with a monthly benefit for the rest of your life. When you apply for retirement, you’ll have the option to choose the maximum amount payable or a reduced benefit in exchange for possibly continuing payments to a beneficiary upon your death. In this post, we’ll explore the Five Year Certain and Ten Year Certain pension payment options which provide a limited benefit for multiple beneficiaries.

Five and Ten Year Certain Pension Payment Options

Five and Ten Year Certain Pension Payment Options

In exchange for a permanent reduction in your monthly pension payment, the Five Year Certain and Ten Year Certain options provide a limited benefit to one or more beneficiaries after you die.

If you die within five or ten years after your retirement, payments in the same amount as you were receiving will be paid to your beneficiaries for the remainder of the five- or ten-year period. However, if you live beyond the five- or ten-year period, your beneficiaries will not receive a pension benefit when you die.

For example, let’s say you choose the Five Year Certain option. If you die two years after retiring, your beneficiary will receive your monthly pension payment for three years. Or, if you choose the Ten Year Certain option and die after two years, your beneficiaries will receive your monthly pension payment for eight years. In either case, your beneficiary would receive the same amount you were receiving. If you designate your spouse as your beneficiary, they would be eligible to receive 50% of your cost-of-living adjustment.

While these options don’t provide a lifetime benefit for your beneficiary, they do have advantages you may want to consider. With these options, you can:

  • Name multiple beneficiaries.
  • Change your beneficiaries at any time within the five- or ten-year period.

Other Pension Payment Options

The Single Life Allowance provides the maximum monthly pension payment to you for the rest of your life. However, this option does not provide a continuing benefit. All payments will stop when you die, and nothing will be paid to a beneficiary.

Some pension payment options provide a lifetime benefit for a single beneficiary.

Things to Consider

When choosing your pension payment option, you may want to consider both your spouse’s and your:

  • Financial needs (for instance, whether you have a mortgage, unpaid loans or other monthly payments).
  • Other sources of retirement income (for example, Social Security or savings).
  • Options for continuing benefits (for example, whether your retirement plan includes a death benefit or if you have life insurance).
  • Age and health at retirement.

You only have 30 days after the last day of your retirement month to change your option. After that date, you cannot change your option for any reason.

Estimate Your Pension in Retirement Online

Most members can use Retirement Online to create a pension estimate based on the most up-to-date salary and service information we have on file. You can enter different retirement dates, beneficiaries and pension payment options to see how they affect your potential benefit.

When you’re done, print your pension estimate or save it for future reference.