Tag Archives: Public Employment

Requesting Additional Service Credit

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Service credit is one of the major factors in calculating your NYSLRS pension. You earn a year of service credit for each year of full-time employment with a participating employer. In some cases, you may also be able to request additional credit for past service, which could increase your pension amount.

You can request credit for past service if you:

  • Worked for a participating employer before joining NYSLRS;
  • Worked for a public employer that later participated in NYSLRS; or
  • Received an honorable discharge from active military duty.

In most cases, you have to pay to receive additional service credit. The sooner you purchase your credit, the less it will generally cost. You must apply for any additional service credit that you wish to receive before you retire. After you apply, we’ll determine whether you’re eligible for the credit and how much it would be.

Credit for Previous Public Employment

Additional service credit includes work for an employer who later joined NYSLRS, or for public employment before you became a NYSLRS member.

Example:
You worked at the town library while going to school and, as a part-time employee, you chose not to join NYSLRS. When you graduated and took a full-time job at the Town Supervisor’s office, you were required to join. You can request credit for the part-time service at the library.

When you apply, you’ll be asked for the name of the employer and the approximate dates you worked there. We encourage you to submit any proof you may have of your previous service. We will also reach out to your former employer, but you may be able to expedite the process by providing payroll records such as W-2 forms or pay stubs to NYSLRS when you apply.

You must earn two years of service credit as a member before additional service can be credited to you.

Military Service Credit

If you served in the U.S. armed forces, you may be eligible to purchase credit toward your retirement for your military service, regardless of whether your military service was before or after you joined NYSLRS.

There are different sections of the law that allow credit for military service. The amount of military service credit you can receive, and the cost (if any), will vary depending on which section of the law allows the credit. Reserve and National Guard service may qualify if it’s considered active duty.

For requests for military service credit, you will need to include a copy of your Certificate of Release or Discharge from Active Duty (DD-214).

For certain military service, you must have five years of member service credit before you can apply. 

How to Request Additional Service Credit

You can apply for additional service credit and military service credit in Retirement Online. Sign in to your account, scroll down to the ‘My Account Summary’ section of your Account Homepage and click the “Manage My Service Purchases” button, then click “Request Additional Service Credit.” If you are applying for military service credit, select “Article 20 Military” when asked for your employer.

You can also complete and submit a Request to Purchase Service Credit form (RS5042). You can attach your form (and any supporting documents) to our secure contact form or mail it to NYSLRS, 110 State Street, Albany, NY 12244-0001.

More Information

There may be other ways to increase your retirement service credit. If you had a previous membership in a New York State public retirement system and it was terminated, you may be able to reinstate your membership. If you still have an active membership in another public retirement system, but you are no longer working for the employer that participates in that retirement system, you may be able to transfer that membership to NYSLRS.

A word of caution — there are certain situations where purchasing additional service credit will not increase your pension. For example, special retirement plans for police officers and firefighters allow retirement after 20 or 25 years of service regardless of age, but not all types of public employment count toward the 20 or 25 years in these plans. Contact us if you have questions.

For more information about purchasing additional credit:

Left Public Employment? Don’t Forget to File for Retirement

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If you expect to leave public employment before retirement age, or if you’ve already left, take note of this important information about your NYSLRS pension.

Once you become a vested NYSLRS member, you’re eligible for a NYSLRS pension even if you leave public employment before retirement age. Vesting is automatic but receiving retirement benefits is not. You’ll need to apply for your pension. But when should you apply?

Filing for Retirement If You Have Left Public Employment

Most NYSLRS members can begin collecting their pension as early as age 55. If you file for your retirement benefit between age 55 and your full NYSLRS retirement age, you may face a permanent benefit reduction. Full retirement age for a NYSLRS pension is 62 or 63, depending on your plan and tier.

retirement age for full benefits if you left public employment

Waiting longer than your full retirement age, however, could cost you a lot of money.

If you aren’t working for a NYSLRS participating employer, your NYSLRS pension will not increase after your full retirement age. Pension benefits are not retroactive, and you will not be able to recover the monthly pension payments that you would have received if you retired at full retirement age.

How Social Security and NYSLRS Rules Differ

NYSLRS and Social Security are different systems with different milestones. You can collect Social Security retirement benefits as early as age 62. If you delay taking Social Security, your benefit amount will continue to increase 8 percent per year until you reach age 70 (for those born in 1943 or later).

But if you wait until you’re 70 to apply for your NYSLRS pension, you’ll miss out on years of NYSLRS benefit payments.

The information above applies only to members who leave public employment before their full retirement age.

(In most cases, if you are still working for a participating public employer in New York State, your pension amount will continue to increase, even if you work past your retirement age.)

Steps You Can Take

Your retirement may be years or even decades in the future. Here are a few steps you can take to help you keep track of your NYSLRS pension if you leave public employment:

  • Estimate your NYSLRS pension at different ages using the benefit calculator in Retirement Online.
  • Create a plan for retirement, taking into account the milestones above.
  • Review your plan periodically and update it as necessary.
  • Keep your contact information up to date using Retirement Online.
  • Contact NYSLRS if you have questions about your benefits.

Update Regarding Retiree Earnings Limit

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Normally, most NYSLRS retirees who return to work for a public employer face an earnings limit. Under Section 212 of the Retirement and Social Security Law, most NYSLRS retirees under age 65 who return to work for a public employer can earn up to $35,000 per calendar year without penalty. The limit includes all earnings for the calendar year, including money or retroactive payments earned in the calendar year but paid in a different calendar year. If a retiree exceeds the earnings limit and continues to work, their pension benefits are suspended for the remainder of the year.

However, executive orders and legislation temporarily suspended the earnings limit for retirees who returned to work.

retiree earnings limit

Earnings Limit Suspended through June 30, 2024 for School Districts and BOCES

Recent legislation has again suspended the earnings limit for retirees employed by school districts and Boards of Cooperative Educational Services (BOCES). Under this legislation, post-retirement earnings with a school district or BOCES will not count toward a retiree’s annual earnings limit through June 30, 2024.

This extension does not apply to universities, colleges or charter schools.

Earnings Limit Suspended through June 22, 2023 for Other Public Employers

The Governor issued executive orders temporarily suspending the retiree earnings limit. Under the executive orders, post-retirement earnings with a public employer do not count toward the annual calendar-year earnings limit during the following time periods:

  • January 1, 2023 through June 22, 2023.
  • January 1, 2022 through December 31, 2022.
  • January 1, 2021 through June 24, 2021, and September 27, 2021 through December 31, 2021.
  • March 27, 2020 through December 31, 2020.

Note: as of the most recent publication of this blog post, we are not aware of any plan by the Governor to extend the waiver of the retiree earnings limit that ended on June 22, 2023. Beginning June 23, 2023, the earnings limit for NYSLRS service retirees under age 65 who return to work for a public employer is $35,000 for the remainder of the calendar year. The $35,000 cap will apply to the entire calendar year starting in 2024. If there are future developments concerning the earnings limit, we will inform retirees, including by updating this blog post. For general information about post-retirement employment, please read What If I Work After Retirement.

How Full-Time and Part-Time Service Credit Works

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Service credit plays a vital part in your pension calculation and your eligibility for other NYSLRS benefits. As a NYSLRS member, you earn service credit by working for an employer who participates in the Retirement System. Your paid public employment is creditable. You would not, however, earn credit for any period when you are not receiving a salary, such as an unpaid leave of absence. You would earn credit for both full-time and part-time employment, but if you work part-time, the service you earn is pro-rated.

Earning Service Credit When You Work Full Time

When you work on a full-time, continuous basis throughout your career, we’ll calculate your total service credit from your date of employment up until the date you leave paid employment. Most full-time workers earn a year of service credit for working 260 workdays a year. For a full-time, 12-month employee, 260 workdays equal a full year. (If you work in an educational setting, you can read about earning service credit in our blog post, How School Employees Earn NYSLRS Service Credit.)

Earning Service Credit When You Work Part Time

Your service credit is prorated if you work part time. Part-time employment is credited as the lesser of:

the number of days worked ÷ 260 days

or

your reported annual salary ÷ (the State’s hourly minimum wage × 2,000)

You can think of it like this: let’s say you work 130 days in a year. If a year’s worth of service credit is earned for working 260 days full time, you’d earn half a year (0.5) of service credit for your part-time work.

How Part-Time Service Credit Works

Check Your Service Credit in Retirement Online

Retirement Online is the fastest way to check your current total estimated service credit. Once you sign in, go to the ‘My Account Summary’ section of your Account Homepage and look under “Account Information.”

You can also use Retirement Online to request credit for public employment from before you joined NYSLRS. If you’re eligible to purchase previous service credit, it’s a good idea to file your request as early in your career as possible because:

  • Records we need to verify your service will be more readily available.
  • If there is a cost, it will be less expensive than if you wait to purchase credit before retirement.
  • Your retirement benefit will be processed more quickly if your service credit request has been reviewed or processed prior to retirement.

For more information, please read our publication Service Credit for Tiers 2 through 6. You may also wish to refer to your specific retirement plan booklet, available on our Publications page.

What If I Leave Public Employment?

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Most of us will change jobs over our lifetimes, and some of us will leave public employment before retirement. But if you leave the public workforce, what will become of your NYSLRS retirement benefits?

leave public employment

NYSLRS has published a booklet to provide guidance in that situation. What If I Leave Public Employment? outlines what happens with your benefits and details your rights and responsibilities. If you recently left public employment or plan to leave in the future, here are some key points the publication can help you understand.

If You Leave Public Employment, Will You Still Get a Pension?

If you’re vested, you can collect a NYSLRS pension when you reach retirement age. NYSLRS members are vested once they have five years of service credit. Most vested members can apply for a pension as early as age 55, but their pension may be reduced if they take it before full retirement age (62 or 63).

What if You End Your Membership?

If you’re not vested, you can end your membership and get a refund of your contribution balance, which includes accumulated interest.

After you have been off the public payroll for 15 days, you can request a refund by filing a withdrawal application.

If you leave public employment with more than five years of service but less than ten years, you have the option to either apply for a retirement benefit once you reach retirement age or withdraw your contributions. You cannot withdraw your contributions once you have ten years of service.

If you’re not vested and you don’t withdraw your contributions, they will continue to earn 5 percent interest for seven years. If you’re still off the public payroll after seven years, your membership will automatically end. Your contributions will be deposited into a non-interest account but will not be refunded to you automatically. You must file a withdrawal application to receive them.

If you end your membership, you will no longer be eligible for any NYSLRS benefits. There may also be tax consequences to withdrawing your contributions.

What are Your Responsibilities?

If you leave public employment, but remain a member, it’s your responsibility to notify us of any address changes. You will also need to keep your beneficiary information current.

More Information

Please read What If I Leave Public Employment? to get the full story on leaving public employment.