Tag Archives: police and fire retirement system

Dig into the NYSLRS Summer Reading List

Looking for some summer reading? Why not check out these publications from NYSLRS? They’re light on colorful characters and exotic settings, but what they lack in plot intrigue, they make up for in important retirement information.

summer reading

1. Retirement Plan for ERS Tier 3 and 4 Members (Articles 14 and 15)

More than 250,000 Tier 3 and 4 members of the Employee’s Retirement System (ERS) are covered by this plan. The publication explains some of the benefits and the services available to you, including a service retirement, a vested retirement, a disability retirement, death benefits and more. Read it now.

2. Retirement Plan for ERS Tier 5 Members (Article 15)

If you joined ERS from January 1, 2010 through March 30, 2012, you are in Tier 5. This booklet describes benefits for Tier 5 members in regular retirement plans. Read it now.

3. Retirement Plan for ERS Tier 6 Members (Article 15)

More than 178,000 Tier 6 ERS members are covered by this Plan. The publication explains some of the benefits and the services available to you, including a service retirement, a vested retirement, a disability retirement, death benefits and more. Read it now.

4. Life Changes: A Guide for Retirees

Already retired? As a NYSLRS retiree, you know that you will receive a monthly retirement benefit for life. However there may be other benefits available to you, as well as services that we provide retirees. This guide will answer many of the questions you may have and explain your responsibilities as a retiree. Read it now.

5. What If I Work After Retirement?

In most cases, NYSLRS retirees under 65 can earn up to $35,000 per calendar year in a public-sector job, but there are no restrictions if you work for a private-sector employer. If you plan to work while collecting your pension, you should read this booklet. Read it now.

Other Plan Booklets

Not covered by the retirement plans above? Maybe you’re a police officer, a firefighter, a sheriff or a correctional officer. You can still find you plan booklet on our Publications page. They’re great reading any time of year. If you’re not sure which plan covers your benefits, you can ask your employer or Contact Us.

Dual Membership in NYSLRS

The New York State and Local Retirement System (NYSLRS) consists of two retirement systems: the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS). Your job title determines what system you’re in. In some cases, however, it’s possible to have a dual membership, to be a member of both systems.

How Does Dual Membership Work?

dual membership in NYSLRSLet’s say you work as a firefighter, so you’re a member of PFRS. You decide to take on a part-time job as a bus driver for your local school district. Your school district participates in ERS, so you’re eligible for ERS membership. You fill out the membership application, and now you’re a member of both ERS and PFRS. The date you join each system determines your tier in each membership.

Implications of Dual Membership

As a member of both systems, you’d have separate membership accounts. Let’s look again at our fire-fighting bus driver example. While working as a firefighter, you make any required contributions and earn service credit toward your PFRS pension only. The same is true for your work as a bus driver—your required contributions and earned service credit only go toward your ERS pension, not your PFRS pension.

There are other implications to dual membership. Assuming you’re vested in both memberships and meet the service credit and age requirements, you could retire and collect a pension from both systems. You’d need to file separate retirement applications for ERS and PFRS, and we’d calculate each pension separately. We’d calculate your ERS pension using the final average earnings (FAE) you earned as a bus driver and your PFRS pension using the FAE from your time as a firefighter.

And, since you’d have both an ERS pension and a PFRS pension, you would need to choose a beneficiary for each in the event of your death.

Questions?

You’ll want to make sure to know the details of your retirement plan in each system. If you have questions about dual membership, or want to discuss your particular situation when you decide to retire, please contact us.

Managing Your NYSLRS Loan Payment

During this time of economic uncertainty, you may be considering how you can lower your NYSLRS loan payment. We understand your concerns and want to provide you with information that can help.

loan payments

How to Lower Your Loan Payment

You may be able to lower your payment amount as long as you still pay the minimum amount required to repay your loan. There are two ways to request a lower loan payment:

  • Manage Your Loan Payment with Retirement Online
    Once you sign in to your account, go to the My Account Summary section and click “Manage My Loans.” You’ll be able to check your payoff balance and minimum payment (payroll deduction) amount as well as change your payment amount.
  •  
  • Send a Loan Payment Change Form
    Fill out our Loan Payment Change form (RS5521) and send it to:
    • NYSLRS
      110 State Street
      Albany, NY 12244

NYSLRS Loan Payments are Set by Law

Loan payments must be paid:

  • At least quarterly (NYSLRS will calculate your minimum payment when you take a loan); and
  • In a sufficient enough amount to repay the loan within five years from the date it was issued.

These are requirements established by both NYS Retirement & Social Security Law (RSSL) and the Internal Revenue Service (IRS). If you are on payroll, your loan will be repaid through payroll deductions.

Can Loan Payments be Deferred?

In certain instances, you may be eligible for a deferment of your loan payment.

If you are on an authorized leave of absence with your employer, or if you have been temporarily furloughed, the IRS allows for the suspension of loan payments for up to one year from the date your leave began or until you return to the payroll (whichever occurs first). To receive this deferment, your employer must send us a fax (518-486-9877) on their letterhead that indicates the date your leave or furlough began and when they expect it will end.

It’s important to note that if you defer your loan payments during an authorized leave of absence or furlough, your payments will need to be recalculated and increased upon your return. This will ensure your loan will be paid off within the five-year period.

Active military personnel may also be able to defer their loan payments. The five-year repayment period for these members can be extended, however your loan balance will continue to accrue interest and you must resume payments once you end active duty. Visit our Loans page for more information.

What Happens If You Go Off Payroll?

If you go off payroll, to avoid your loan going into default, you must make minimum payments at least quarterly and repay the loan within five years. To avoid a default, contact us as soon as you leave public employment, so we can tell you the exact amount you need to pay. If you are in danger of defaulting on your loan, we will notify you. Retirement Online is the easiest way to make loan payments if you are off payroll. Read the Make Lump Sum Payments information on our Loans page for details.

How to Read Your Retirement Plan Booklet

In an earlier blog, we explained how to locate your retirement plan booklet. Your retirement plan booklet is an essential resource that you should consult throughout your career. It will help you in planning for your retirement and guide you when your retirement date draws near. Today we discuss what information you’ll find in that booklet and what it means.

retirement plan booklet

About Your Membership

This section has information about your membership and tier status. Look here to find out if your plan requires contributions toward retirement, when you will be eligible for a retirement benefit, and how to withdraw your membership.

Service Credit

Service credit is one of the main factors in determining how much your pension will be. If you work full-time for the State or a participating municipal employer for 12 months, you’ll earn a year of service credit. If you work part-time, your service credit is prorated.

You’ll also find information about how your service credit is calculated, how to purchase credit for previous public employment and military service, how leaves of absence affect service credit, and how sick leave can be used for extra service credit at retirement.

Final Average Salary

Final average salary (FAS) is another major factor in determining the amount of your pension. Your FAS is your highest average earnings during a period of consecutive years. This can be three or five years, depending on your tier.

This section describes what types of payments are used in calculating your FAS and any limitations that may apply.

Service Retirement Benefits

This section describes your retirement eligibility and how your benefit is calculated. If you have questions about how much your pension will be, this is an important section of your retirement plan booklet to read through.

Choosing a Pension Payment Option

There are several ways you can collect your pension. Some payment options, in exchange for a reduction in your monthly payment, will allow you to provide for your spouse or other beneficiary after you die. When reading through this section, consider each payment option carefully, as you’ll only have a limited time to change it after you retire.

Items That May Affect Your Pension

This section describes different factors that can change the amount of your pension. For example, if you retire with an outstanding loan, your pension will be permanently reduced. Also, if you get a divorce, your ex-spouse may be entitled to a portion of your benefit.

A Cost of Living Adjustment (COLA), on the other hand, could increase your benefit once you become eligible.

Vested Retirement Benefits

If you leave public employment before retirement age, but have met the minimum service requirement to receive a pension, you can apply for a vested retirement benefit when you become eligible.

Disability and Death Benefits

Your NYSLRS benefits include more than a pension. If you are no longer able to perform your job because of a medical condition, you may be eligible for a disability retirement. If you die before retirement, your survivors may be eligible for a death benefit.

Receiving Your Benefits

Before you can receive a retirement benefit, you must file the appropriate form with the Office of the State Comptroller. Here you’ll learn where to find the form and what deadlines apply.

Where to Find Your Retirement Plan Booklet

Look for your retirement plan booklet on the Publications page on our website.

Knowing Your Retirement Plan
is the Key to Retirement Planning

Information is the key to being fully prepared for your retirement years. The single most important thing you can do to achieve this goal is to know what NYSLRS retirement plan you’re in. Once you know that, the next thing you must do is understand the benefits your plan provides.

Your retirement plan booklet covers things like how long you’ll need to work in order to receive a pension, how your pension amount is determined, and what kind of death and disability benefits may be available to you. You can find a copy of your plan booklet on our Publications page.

But here’s the challenge: NYSLRS manages 335 retirement plan combinations, which are described in 51 plan booklets. How do you figure out which is yours?  The information below should help.

Retirement plan

Two Key Questions

To get started, you need to answer two questions.

Question One: Which retirement system are you in? NYSLRS is made up of two different systems:

  • The Employees’ Retirement System (ERS), which is for public employees in non-teaching positions. It also includes some law enforcement personnel, such as correction officers, sheriffs and sheriffs’ deputies.
  • The Police and Fire Retirement System (PFRS), which is for paid firefighters and police officers, including SUNY police, State Park police, Encon officers and State Forest Rangers.

Question Two: Which tier are you in? There are six tiers in ERS and five tiers in PFRS. Your tier, based on when you joined NYSLRS, determines such things as when you become eligible for benefits and how much you contribute. You can find your tier by checking your Account Information in Retirement Online or by checking the What Tier Are You In? page on the NYSLRS website.

Know Your Retirement Plan Number

For many members, knowing your retirement system and tier are enough. But for other members, especially those in law enforcement, it may help to have your retirement plan number as well. The plan number indicates the section of Retirement and Social Security Law the plan is based on. For example, Plan A15 indicates that you are covered by Article 15. You can find your plan number in the Account Information section of Retirement Online.

Roughly three-quarters of all ERS members are covered by Article 15; they just need to know their tier to find the correct booklet.

State policeSUNY policeState Encon OfficersState Park Police and Forest Rangers each have their own plan booklet, which can be found in the PFRS section of the Publications page. That’s also where you’ll find the Special 20- and 25-Year Plans, which cover officers in most municipal police departments. (Members in these special plans should see 384, 384-d or 384-e listed in Retirement Online.)

If you are still unsure which retirement plan booklet covers your benefits, you can send us an email using our secure contact form, or you can ask your employer.

Take the Time to Understand Your Retirement Plan

It cannot be stated enough how important it is to read your plan publication to learn all you can about your benefits. It is the key to solid retirement planning. Remember, no one has a more vested stake in your retirement than you do.

NYSLRS – One Tier at a Time: PFRS 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. There are six tiers in the Employees’ Retirement System (ERS) and five in the Police and Fire Retirement System (PFRS). Each tier has a different benefit structure established by New York State legislation. Our series, NYSLRS – One Tier at a Time, walks through each tier to give you a quick look at the benefits in both ERS and PFRS. Today’s post looks at PFRS Tier 6. Anyone who joined PFRS on or after April 1, 2012 is in Tier 6. Tier 6 members currently make up about 32 percent of PFRS membership, totaling 10,942 members, making it the second largest tier in PFRS.

Check out the graphic below for the basic retirement information for PFRS Tier 6 members.

PFRS Tier 6

Where to Find PFRS Tier 6 Information

If you’re a PFRS Tier 6 member, please find your retirement plan publication from the list below for more details about your benefits:

Please visit our Publications page for special plans under miscellaneous titles.

Stay tuned for more NYSLRS – One Tier at a Time posts. Check out some earlier posts in the series:

Why Designate a Beneficiary?

When you designate a beneficiary, you choose a person to receive a benefit after your death. By choosing a beneficiary, you’re ensuring that money goes to the person you want to receive it.

Why Should I Designate a Beneficiary? is a short, but informative booklet that explains beneficiary designations and how you can change them.

It is important to designate a beneficiary because that person may be eligible to receive a death benefit. If you are a State employee, they may also be eligible for New York State survivor’s benefit. Most retirees are eligible for a post-retirement death benefit depending on their retirement plan and tier. You can designate a beneficiary to receive this one-time, lump sum benefit after your death.

A beneficiary is often a spouse, a child or another relative, but it does not have to be a family member or even a person. You can designate a trust or organization to receive your ordinary death benefit.

designate a beneficiary

Types of Beneficiaries

The booklet describes the two types of beneficiaries.

A primary beneficiary is the person who receives your death benefit. You can name more than one primary beneficiary. Each will share the benefit equally, unless you indicate specific percentages to be paid to each beneficiary.

A contingent beneficiary will receive your death benefit if all the primary beneficiaries die before you.

The booklet also has a section describing special beneficiary designations, which is helpful if you wish to name a minor child, a trust or an estate as a beneficiary

When to Designate a Beneficiary

You should review your beneficiary information periodically to make sure your beneficiary designations are up to date and reflect your current desires. Retirement Online provides convenient access to this information, which you can also find in your most recent Member Annual Statement.

If you get married, get a divorce or have a child, you may wish to change your beneficiary designation. Retirement Online is the convenient and secure way to update your beneficiaries. Sign in to your account, then click “Manage My Beneficiaries.” You can also complete a Designation of Beneficiary form and mail it to NYSLRS.

You can change the beneficiary designation for your death benefit at any time. But remember, a beneficiary designation is a legal document, so you’ll want to avoid some common errors that could make your choices void. Fortunately, this booklet includes a list of guidelines that will help you avoid these pitfalls, and it is available online whenever you need to consult it.

Other Publications

Read our recent blog posts about other NYSLRS publications.

NYSLRS Membership by Tier

NYSLRS, which comprises the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS), had 658,176 members as of March 31, 2019. Our members are State government, local government and school district employees from across New York, including 623,090 in ERS and 35,086 in PFRS. Eighty-one percent of our members are active, which means they were on a public payroll as of March 31.

NYSLRS Membership Over Time

A decade ago, nearly 90 percent of NYSLRS members were in Tiers 3 and 4. Now, those tiers represent roughly half of our membership, while Tier 6 members are close to surpassing them in numbers. Tier 6, which includes members who joined NYSLRS since April 1, 2012, has 253,633 members, or 38.5 percent of total membership. As new public employees come on board and more Tier 3 and 4 members retire, Tier 6 is expected to represent the bulk of NYSLRS membership soon.

Here’s a look at our NYSLRS membership by tier, as of March 31:

NYSLRS Membership
Tier 1: NYSLRS’ oldest tier, whose members first joined the system before July 1, 1973 (July 31, 1973 for PFRS members). Tier 1 now represents only 0.3 percent of our membership. There are only 27 Tier 1 PFRS members.

Tier 2: With 24,216 members, Tier 2 represents 3.7 percent of membership. More than 90 percent of Tier 2 members are in PFRS.

Tier 3 & 4: Tiers 3 and 4, which have similar retirement plans, have 334,836 members, 50.9 percent of the total. (There is no Tier 4 in PFRS.)

Tier 5: Tier 5 covers members who joined from January 1, 2010 through March 31, 2012. With 43,527 members, Tier 5 now represents 6.6 percent of membership.

Tier 6: This tier covers both ERS and PFRS members who joined since April 1, 2012. Its ranks have grown by 18 percent over the past year.

A Look Inside NYSLRS

NYSLRS paid $12.74 billion in benefits to 481,795 retirees and beneficiaries during the State fiscal year that ended on March 31. These benefits are paid out through the New York State Common Retirement Fund (the Fund).

The Fund was valued at $210.5 billion at the end of the fiscal year. The average return on Fund investments was 5.23 percent for the year.

A Look inside NYSLRS

NYSLRS Membership

But NYSLRS is more than just the pension fund. The system had 658,176 members as of March 31, including county workers, professional firefighters and State troopers. Here are some facts about them:

  • NYSLRS’ 533,610 active members (that is, members still on a public payroll) work for 3,020 public employers statewide.
  • 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 active members are in the Employees’ Retirement System (ERS). The Police and Fire Retirement System (PFRS) accounts for 6 percent of NYSLRS membership.

Nearly 39 percent of all NYSLRS members are in Tier 6. (But more than 62 percent of PFRS members are in Tier 2.)

NYSLRS Retirees and Beneficiaries

The average pension for an Employees’ Retirement System (ERS) retiree was $24,345; the average for a Police and Fire Retirement System (PFRS) was $52,804. But NYSLRS pension payments don’t just benefit the system’s retirees and beneficiaries. Because 79 percent of NYSLRS retirees and beneficiaries live in New York, $10.3 billion worth of benefits stayed in the State. And that money supported local businesses, paid local taxes and generated economic development statewide.

An Award-Winning Publication

Extensive information about NYSLRS members and retirees, the Fund, and Fund investments can be found in the 2019 Comprehensive Annual Financial Report (CAFR). NYSLRS received a Certificate of Achievement for Excellence in Financial Reporting for the 2018 CAFR. The Certificate of Achievement is a national award recognizing excellence in the preparation of state and local government financial reports. NYSLRS has won this award for the last 15 years.

Certain Payment Options Provide a Lifetime Benefit for a Loved One

When you apply for a NYSLRS pension, you’ll be asked to pick a pension payment option. All payment options will provide you with a monthly benefit for the rest of your life. With the Single Life Allowance, all payments stop at your death and nothing is paid to a beneficiary.

Infographic describing pension payment options

Providing for a Beneficiary

If you’re married and need to provide for your spouse, or if you have someone else you would like to provide a lifetime pension for after you’re gone, there are payment options that let you do that. In exchange for a reduction in your monthly payment, Joint Allowance options allow a beneficiary to collect all or part of your pension after you die. The amount of the reduction in your pension is based on your life expectancy and the life expectancy of your beneficiary. That means the younger your beneficiary, the deeper the reduction.

You can only choose one beneficiary under a Joint Allowance option, and your beneficiary selection cannot be changed after you retire, regardless of the circumstances. The benefit reduction for Joint Allowance options will continue even if your beneficiary dies before you do.

Pop-Up Payment Options

If we could predict the future, pension choices would be a lot easier. But a Pop-Up payment option is one way to hedge your bets. Like Joint Allowance options, these plans allow you to provide a lifetime payment for a beneficiary after your death. But if your beneficiary dies before you, your future monthly payments would be increased to the amount you would have been receiving had you chosen the Single Life Allowance. (The pop-up only affects future payments. You would not be entitled to any retroactive payments.)

The monthly reduction in your benefit will be greater if you choose a Pop-Up option over a regular Joint Allowance.

Find Out More

There are also options that allow you to leave a monthly payment to more than one beneficiary, and options that leave a benefit for a certain amount of time. Visit our Payment Option Descriptions page for details about all of the available payment options.

For a better idea of how these payments options would work out for you and your beneficiary, you can use our online pension projection calculator. It uses the information you enter to show how much you could expect to receive under each option. Most members who are within five years of retirement eligibility can also request a benefit projection by contacting our Call Center at 1-866-805-0990 (press 2 for members, follow the prompts, then press 5 to request a benefit projection), or you can submit a Request for Estimate form (RS6030).