Tax season is here. If you received a distribution of retirement benefits from NYSLRS last year and need to report it as income on your taxes, you don’t have to wait for the mail—1099-R tax forms are available online.
While NYSLRS pensions are not subject to New York State or local income tax, most are subject to federal income tax.
Beneficiaries who received a death benefit and members who took a taxable loan or withdrew their contributions may also be subject to federal income tax.
If NYSLRS is required to report your distribution to the Internal Revenue Service (IRS), we provide a 1099-R tax form to you for filing your taxes.
We distribute 1099-R tax forms annually based on your delivery preference:
Mail: We mail printed 1099-Rs by January 31. (Note: The default delivery preference is mail.)
Email: We make 1099-Rs available in Retirement Online sooner than printed copies are mailed—we will notify you by email in mid-January. (Note: You will not receive a printed 1099-R in the mail.)
Select an option from Year dropdown. (Note: 2025, 2024 and 2023 are currently available online.)
Click Generate button.
If you have one 1099-R, the document will open in a new browser tab. If you have more than one 1099-R, the documents will compile into a zip file and download on to your computer. Go to your Downloads folder and double-click on the zip file to access the documents.
Please check your browser settings and disable pop-up blockers to ensure your 1099-R can be generated. By default, your browser may block pop-ups, which may prevent a new tab from opening or the file from downloading.
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.
Understanding Your 1099-R
Your tax form includes:
The total amount (before taxes and deductions) paid to you for the year indicated on the form.
The taxable portion of your benefit.
The amount of federal income tax withheld for the year indicated on the form and paid to the IRS on your behalf.
For more information, check out our interactive 1099-R guide. It walks you through a sample and offers a short explanation of each box on the form.
Get an Email Notification When 1099-R Tax Forms Are Available Online
You can get your 1099-R online sooner than printed copies are mailed. Update your delivery preference to email and when your 1099-R is available, we’ll send an email notifying you to sign in to Retirement Online.
Most State and municipal employees are required to join the New York State and Local Retirement System (NYSLRS) when they are hired. But for some employees, membership is optional, meaning you are not automatically enrolled. To join NYSLRS, you must submit a membership application to your employer, who will then enroll you in NYSLRS. It’s important to understand the valuable benefits of NYSLRS membership and why you should join as soon as possible.
Whose Membership is Optional or Mandatory
Membership is optional if:
You work less than 12 months per year, including 10-month school employees working full-time;
You work less than 30 hours per week or less than the number of hours for full-time employment, as established by your employer for your position;
You are in a temporary or provisional position (under Civil Service Law); or
Your annual compensation is less than New York State’s minimum wage multiplied by 2,000 hours.
Membership is mandatory if:
You are in a permanent, full-time, 12-month position of an employer who participates in NYSLRS; and
You are in a full- or part-time position covered by the Police and Fire Retirement System (PFRS), such as police officers and firefighters.
If you aren’t sure whether you’re a member, your employer should be able to let you know. Contact us if you have questions.
Benefits of Joining NYSLRS
NYSLRS is one of the largest retirement systems in the world, administering benefits for more than 1.2 million members, retirees and beneficiaries.
If you aren’t sure whether to join NYSLRS, here are the advantages:
Your NYSLRS pension is a defined benefit plan. When you retire, you will receive a monthly pension payment for the rest of your life. Once you reach retirement age, you can retire with as few as five years of service credit (part-time service is pro-rated).
You can request additional service credit for your public employment before joining NYSLRS or if you served in the U.S. Armed Forces and received an honorable discharge from active military duty.
You can transfer service if you are still a member of another public retirement system in New York State.
You can reinstate service if you withdrew your membership in NYSLRS or another public retirement system in New York State.
You can take aloan against your retirement contributions once you meet eligibility requirements.
NYSLRS retirement plans provide death and disability retirement benefits.
Nearly 3,000 employers participate in NYSLRS, allowing you to continue your membership if you take a job at another New York State public employer. And if you decide to leave public employment before you have ten years of service credit, you can withdraw your contributions plus interest or roll over your contributions into another retirement savings plan.
NYSLRS Membership Basics
Once you join and become a NYSLRS member:
You are assigned to a tier based on your date of membership. New members are in Tier 6.
You are required to contribute a percentage of your earnings toward your retirement. As a Tier 6 member, your contribution rate (between 3%–6%) will be based on your earnings.
It’s important to join NYSLRS at the start of your employment. If you don’t join right away, you can purchase service credit for your public employment from before you became a member, but it will cost more—6% of your earnings plus interest rather than contributing a percentage based on your earnings. Also, while you can request previous service credit and pay for the cost at any time, you must earn two years of service credit as a NYSLRS member before your purchased service can be credited.
Get Credit for All Your Public Service
Because service credit is a major factor in calculating your pension benefit, it’s important to make sure you get credit for all your public service. Once you join NYSLRS, you should request any additional service as early in your career as possible.
NYSLRS will need time to request records from your previous employer or retirement system.
The sooner you purchase your credit, the less it will generally cost.
Requesting early gives you time to pay for additional service.
Your request will be reviewed to determine your eligibility. We will send you a letter with the amount of service credit you are eligible to receive if you choose to purchase it, the cost and payment options. There are certain situations where purchasing additional service credit will not increase your pension. For more information, read about whether should you purchase additional service credit.
October is National Retirement Security Month. It’s a time to consider the importance of saving and to think about potential sources of income in retirement. Financial security doesn’t just happen—it takes preparation and time. Even if retirement seems far off, it’s never too early to start planning.
NYSLRS and Retirement Security
Check out these blog posts to learn more about how your NYSLRS pension and other sources of retirement income can provide retirement security.
As a NYSLRS member, you are enrolled in a defined benefit plan, also known as a traditional pension plan. When you retire, you will receive a monthly pension payment for the rest of your life. Your pension will be calculated using a preset formula based on your earnings and years of service—it will not be based on the individual contributions you paid into the system.
Your NYSLRS pension is a good reason to be optimistic about your finances in retirement. But there is more to a financially secure retirement than having a pension. Think of retirement security as a three-legged stool. Each leg is a source of income to help support you when your working days are done.
If you want to improve your chances of a financially secure retirement, your plan should include retirement savings. It’s important to start saving early so your money has time to grow. When you invest your savings in an individual retirement account (IRA) or a 401(k)-style retirement savings plan, you earn a return on your investment, and those returns are compounded.
For greater financial stability and flexibility, you may want to invest in a deferred compensation savings plan. The New York State Deferred compensation plans are voluntary retirement savings plans like a 401(k), created for New York State employees and employees of other participating public employers.
As you get close to retirement, it’s a good idea to take inventory of any debt you owe. Paying down your debt—including any NYSLRS loans—will help avoid a pension reduction and can give you more flexibility in retirement.
Retirement is a big step, and we want to make sure you’re ready when the time comes. Read on for guidance on preparing for retirement, including topics to consider as you plan and actions to take.
Understand Your NYSLRS Pension
Your NYSLRS pension will be based on your tier, service credit, final average earnings and your retirement plan. For most members, age is also an important factor in your NYSLRS benefits.
Service credit is one of the major factors in calculating your pension benefit, so it’s important to make sure you get credit for all your public service. You may be able to request additional service credit if you:
Worked for your current or another public employer before joining NYSLRS; or
Served in the U.S. Armed Forces and received an honorable discharge from active military duty.
Or you may be able to:
Transfer service: If you are still a member of another New York State public retirement system.
Reinstate service: If you withdrew your membership in NYSLRS or another New York State public retirement system.
You must submit your request before retirement, and you should do it as early in your career as possible. NYSLRS will need time to request records from your previous employer or retirement system, and requesting early also gives you time to pay for additional or reinstated service. Also, the sooner you purchase your credit, the less it will generally cost.
Pay Off Service Credit Purchases
If you requested additional service credit for previous public employment or military service and you received a cost letter, make sure you’re on track to pay off your service credit purchase before you retire.
You won’t receive credit for optional service that is not paid off when you retire.
If you are in the process of paying for mandatory service credit (for example, from a reinstated membership or if insufficient contributions were made to NYSLRS) and it’s not paid off by your date of retirement, your pension will be permanently reduced.
Sign in to Retirement Online to check your service credit purchase balance, make a lump sum payment or increase your payroll deduction amount.
Pay Off Your NYSLRS Loan
It’s important to understand the implications of retiring with an outstanding loan. Your pension will be permanently reduced, and 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% penalty.
To ensure you’re on track to pay off your loan before you retire, sign in to Retirement Online to check your balance, make a lump sum payment or increase your payroll deduction amount.
Estimate Your Pension
Finding out how much you can expect to receive is a critical step in preparing for retirement. Most members can estimate their pension using Retirement Online in just a few quick and easy steps.
Retirement Online uses your current earnings and service information to calculate your estimate, including your final average earnings (FAE) and the amounts for the pension payment options available to you. You can fine-tune your estimate or see how different choices would affect your benefit.
Remember, the amounts are estimates, not a guarantee of what you’ll receive when you retire.
Understand How Divorce May Affect Your Pension
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).
Any division of pension and retirement benefits must be stated in the form of a Domestic Relations Order (DRO)—a court order issued after a final judgment of divorce which specifies how benefits should be split.
It’s important to complete and submit your DRO to NYSLRS well before you apply for retirement to avoid changes or delays in your pension payments.
Check Your Eligibility for the Sick Leave Benefit
To be eligible for the Sick Leave Benefit, your employer must have adopted Section 41(j) of the Retirement and Social Security Law (RSSL) for ERS members or 341(j) of the RSSL for PFRS members. If your employer has chosen to offer this benefit, you may receive service credit for unused, unpaid sick leave at retirement.
To check if this benefit is available to you, ask your employer or sign in to Retirement Online and look for Sick Leave Eligibility.
To receive this benefit, you must retire directly from public service or within a year of leaving. The additional service credit for your unused, unpaid sick leave, up to a certain limit, will be added to your total years of service when calculating your pension benefit. However, it cannot be used to:
Qualify for vesting. For example, if you have four years and ten months of service credit and you need five years to be vested, your sick leave credit cannot be used to reach the five years.
Qualify for a better retirement benefit calculation. For example, if you have 19 ½ years of service credit but your pension calculation will improve substantially if you have 20 years, your sick leave credit cannot be used to reach the 20-year calculation.
Meet the service credit requirement for a special 20- or 25-year plan.
Increase your pension beyond the maximum allowed under your retirement plan.
Review Your Health Insurance Coverage
NYSLRS does not administer health insurance programs. When you’re nearing retirement, you should check with your employer’s human resources or personnel office or your health benefits administrator to determine your eligibility for health insurance coverage during retirement. If your former employer instructs us to do so, we will deduct health insurance premiums from your monthly pension payment, but NYSLRS cannot answer questions about coverage or changes in premium amounts.
If you are eligible to use your unused, unpaid sick leave to offset the cost of NYSHIP, payment towards your health insurance coverage will not affect your eligibility for the Sick Leave Benefit.
Schedule a Pre-Retirement Consultation
Before you apply for retirement, you may want to consider scheduling a pre-retirement consultation where you can speak with one of our representatives to review your benefits and ask any questions you may have.
Ready to Apply for Retirement?
When you’re ready, Retirement Online makes it fast and convenient to apply for retirement. There are no forms to mail in and nothing to have notarized. You’ll see an estimate of your pension, including the amounts for the pension payment options available to you. You’ll also be able to upload documents while applying or after submitting your application. And if you need to update your application, you can quickly and easily submit changes. But before applying, visit our Preparing and Applying for Retirement page for an overview of the retirement application so you know what to expect and what information you’ll need to submit.
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.
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.
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
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.
NYSLRS is one of the largest retirement systems in the world, administering benefits for more than 1.2 million members, retirees and beneficiaries. Take a look inside NYSLRS and brush up on your NYSLRS knowledge—here are 10 things retirees should know.
1. Retirement Online is the Fastest, Most Convenient Way to Do Business With NYSLRS
Retirement Online is the fastest way to manage your NYSLRS account. Skip printing forms, having them notarized and sending them through the mail. When you submit your requests through Retirement Online, NYSLRS has them immediately, and your changes will be completed more quickly. It’s convenient and secure. Check out what retirees can do in Retirement Online.
If you don’t have an account or for help signing in to an existing account, check out our Retirement Online tools and tips for step-by-step instructions to register, reset your password, unlock your account and more.
2. Your Pension Benefits Are Secure
The New York State Common Retirement Fund holds and invests the assets of NYSLRS on behalf of members, retirees and their beneficiaries and continues to be one of the best-funded and best-managed public pension funds in the nation. Comptroller Thomas P. DiNapoli is the administrator of NYSLRS and trustee of the Common Retirement Fund.
3. It’s Important to Keep Your Contact Information Up to Date
Wherever retirement takes you, it’s important to keep NYSLRS informed of any changes to your contact information. That way, you’ll be sure to receive the tax information, news, correspondence and statements we send you. If you receive correspondence and statements by mail, it’s vital you review the address we have on file for you. Changing your address with the United States Postal Service (USPS) does not mean your records will automatically be updated with NYSLRS. To ensure you continue receiving mail from NYSLRS, you must submit a change of address directly to us. This is especially important if you receive your pension payment as a paper check.
4. ‘Go Green’ and Get Your Important Documents Sooner
You can help us ‘go green’ and reduce paper waste by choosing email as your delivery preference for correspondence and other important documents, such as your 1099-R tax form and Retiree Annual Statement. When you have something to view, we’ll send an email notifying you to sign in to Retirement Online. And it will save time—you’ll get access to your important documents sooner than printed copies are mailed. Learn how to get email notifications for important documents.
5. There May Be an Earnings Limit for Working After Retirement
As a NYSLRS retiree, you can work and still receive your pension. However, there may be a limit on how much you can earn each year without affecting your NYSLRS pension. An earnings limit of $35,000 generally applies to NYSLRS retirees who are under age 65 and returning to work for a public employer while receiving a service retirement benefit. However, the earnings limit for retirees employed by school districts or Boards of Cooperative Educational Services (BOCES) is suspended through June 30, 2027.
6. You Should Review Your Beneficiaries Periodically
Most NYSLRS retirement plans provide a post-retirement death benefit for beneficiaries of eligible retirees who die after retiring directly from service or within one year of leaving public employment. It’s a good idea to review your beneficiaries from time to time to make sure they reflect your current wishes. The beneficiary you named before might not be the one you would choose today. You should also review the contact information for your named beneficiaries so we can find them when needed and share this information about reporting a retiree’s death to NYSLRS with your survivors.
7. Adjust Your Tax Withholding Online
Most NYSLRS pensions are subject to federal income tax. If your last federal tax bill or return was not what you expected, Retirement Online is the fastest way to update your federal tax withholding. Changes submitted by the middle of the month will generally be applied to that month’s payment.
8. View Your Pay Stubs for Insight Into Your Monthly Pension Payments
Your pension pay stub gives you valuable insight into your monthly pension payment, including a breakdown of credits and deductions for health insurance, union dues, tax withholding or disbursements under a domestic relations order. Throughout the year, you can access your pay stubs online and see year-to-date totals.
9. Update Your Direct Deposit Information Online if Changing Banks or Accounts
Changing financial institutions or accounts will affect whether you receive your monthly pension payment. It’s important to update your direct deposit information with NYSLRS as soon as possible—and you can update your information quickly and conveniently with Retirement Online. Changes submitted online will generally be applied to your next month’s pension payment. Not using direct deposit yet? Don’t wait to receive a check in the mail—direct deposit is fast, convenient and secure. Sign up for direct deposit now and get your money sooner.
10. Generate a Pension Income Verification Letter Quickly and Easily Online
You may need proof of your retirement income for housing or as part of an application for the Home Energy Assistance Program (HEAP). With Retirement Online, you can quickly and easily generate a pension income verification letter any time you need one.
As a NYSLRS retiree, you can work and still receive your pension. However, there may be a limit on how much you can earn each year without affecting your NYSLRS pension.
Working While Receiving a Service Retirement Benefit
Receive a service retirement benefit (see disability benefit rules below); and
Return to work for a public employer (including contract or consultant work, if you joined NYSLRS on or after May 31, 1973).
There is no earnings limit if you are self-employed or if you work for:
The federal government;
A state or local government in another state; or
A private employer.
Also, beginning in the calendar year you turn 65, the earnings limit no longer applies.
Update Regarding the Earnings Limit
The earnings limit for retirees employed by school districts or Boards of Cooperative Educational Services (BOCES) is suspended through June 30, 2027. (May 2025 legislation extended the date from 2025 to 2027.) This earnings limit suspension does not apply to retirees who work for a college, university or charter school.
For most other retirees under the age of 65, the $35,000 limit is in effect and applies to the entire calendar year in 2026.
NYSLRS retirees can return to work part-time for a public employer. However, Internal Revenue Service (IRS) rules and RSSL require a member have a bona fide termination from public service prior to their date of retirement.
When the employer and member expect the member will return to employment after their date of retirement, the member’s termination does not constitute a bona fide termination. If there is no bona fide termination, the service retirement will be voided. Any pension payments made in error due to a retirement that was invalid will be recovered by the Retirement System.
Working While Receiving a Disability Retirement Benefit
Almost all earnings for retirees who are working while receiving a disability retirement benefit are limited whether they work for a public or private employer. The limit is specific to each retiree. To find out your earnings limit, please contact us.
How the Earnings Limit Applies
The limit applies to all earnings for the calendar year, including money earned in the calendar year, but paid in a different calendar year (for example earned in December but paid in January).
The limit does not apply to:
Payments received after you retire from your employer, such as for vacation or sick time you earned when you were still working; and/or
A retroactive payment for a new union contract, if the earnings are for employment before you retired.
Reporting Your Earnings
It is your responsibility to notify NYSLRS if you earn more than the limit. If you know you are going to exceed the limit, contact us at least a month before you do.
You can message us using the secure contact form, or you can fax a letter to 518-402-2498. Be sure to include the name of your employer, the approximate date you expect to exceed the limit and a daytime phone number in case we have questions.
If You Exceed the Earnings Limit
If you earn more than the limit, you must:
Pay back NYSLRS for the pension payments you received after the date you reached the limit. If you continue to work, your pension will be suspended for the remainder of the calendar year and resume the following January. OR
Rejoin NYSLRS, in which case your pension will be suspended until you retire again at some future date. (You’d need to reapply.)
Earnings Limit Waiver
Under RSSL Section 211, employers may employ you and waive the earnings limit if they get approval before hiring you. Approval is not automatic; it is based on the employer’s needs and your qualifications. In most cases, the New York State Department of Civil Service is the approving agency. A Section 211 waiver covers a fixed period, normally up to two years. Notwithstanding RSSL Sections 211 or 212, however, a prearranged agreement to rehire an employee made prior to their date of retirement does not constitute a bona fide termination.
For More Information
Before you decide to return to work, please read our publication What If I Work After Retirement? It includes information such as how earnings limits are calculated for retirees receiving a disability retirement benefit, consequences to consider before returning to NYSLRS membership and more. If you have questions, please contact us.
Most NYSLRS pensions are subject to federal income tax. If your last federal tax bill or return was not what you expected, Retirement Online makes it fast and convenient to update your federal tax withholding.
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.
Understanding Your Federal Tax Withholding
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. The amount withheld is based on the information you provide to us on a W-4P Form (Withholding Certificate for Pension or Annuity Payments).
Note: The Internal Revenue Service (IRS) revised its W-4P Form, which no longer allows tax filers to adjust their withholding by electing a specific number of allowances. To comply with IRS requirements, NYSLRS updated its tax withholding form accordingly. You do not need to submit a new W-4P Form to NYSLRS unless you want to change the amount withheld for federal income tax.
Effective January 1, 2023, NYSLRS does not withhold federal income tax from pension benefits that are not subject to tax reporting.
Estimate Your Federal Tax Withholding
The IRS has a new Tax Withholding Estimator which may help you estimate the federal income tax you want withheld from your pension. When using the tool, be sure to have your most recent tax return, pension pay stubs (available in Retirement Online) and other income information—your results will be based on the information you enter.
Use Retirement Online to Update Your Withholding
Retirement Online is the fastest and most convenient way to complete the W-4P Form and update your federal tax withholding for your NYSLRS pension.
Your NYSLRS pension is a good reason to be optimistic about your finances in retirement. Once you retire, your pension will provide monthly payments for the rest of your life. But there is more to a financially secure retirement than having a pension.
Think of retirement security as a three-legged stool. Each leg is a source of income to help support you when your working days are done. It’s important to understand all your potential sources of income to effectively plan for the future and boost your retirement confidence.
Leg 1: Your NYSLRS Pension
NYSLRS pensions are defined benefit plans, also known as traditional pension plans. When you retire, you will receive a monthly pension payment for the rest of your life. Your pension will be calculated using a preset formula based on your earnings and years of service—it will not be based on the individual contributions you paid into the system. Unlike workers who rely on 401(k)-style retirement plans, you won’t have to worry about this income running out.
Most members can estimate their pension in Retirement Online. But, if you’re a long way from retirement, it may be better to think in terms of earnings replacement. Financial advisers estimate you’ll need to replace 70 to 80 percent of your income to retire with confidence. Your pension can help get you there. For example, if you retire with 30 years of service, your NYSLRS pension could replace more than half of your earnings. (Pension benefits depend on your tier and retirement plan. Find your retirement plan publication for comprehensive information about your retirement benefits and how your pension will be calculated.)
Leg 3: Retirement Savings Can Boost Your Confidence
A lifetime pension and Social Security income will be substantial financial assets, but it’s still important to save for retirement. Healthy retirement savings will give you more flexibility to do the things you want to do in retirement. It can also help in case of an emergency and act as a hedge against inflation.
Your personal savings is the factor you have the most control over. You decide when to start, how much to save and how to invest your money. The key is to start saving early so your money has time to grow, even if you can only afford to save a small amount in the beginning.
Eligible employees might consider saving with the New York State Deferred Compensation Plan (NYSDCP). Money gets deducted from your paycheck, so you won’t even have to think about it. NYSDCP is not affiliated with NYSLRS, but New York State employees and some municipal employees can participate. If you’re a municipal employee, ask your employer whether you’re eligible for NYSDCP or another retirement savings plan.
Tax season is here. If you received a distribution of retirement benefits from NYSLRS last year and need to report it as income on your taxes, you don’t have to wait for the mail—1099-R tax forms are available online.
We’ve written about how 
Retirement Online is the fastest way to manage your NYSLRS account. Skip printing forms, having them notarized and sending them through the mail. When you submit your requests through Retirement Online, NYSLRS has them immediately, and your changes will be completed more quickly. It’s convenient and secure. Check out what 
NYSLRS pensions are