Tag Archives: Retirees

Domestic Violence and COVID-19

Unfortunately, as the COVID-19 emergency continues, police and healthcare professionals are reporting an increase in domestic violence. With many of our one million NYSLRS members and retirees now being asked to stay home, we want to help keep you safe. If you are in an abusive relationship, or fear your situation may turn violent, there is help.

domestic violence

You don’t have to stay in a dangerous environment. Safe shelter is available. 

Here are some resources:

Because abuse victims are often closely watched by their abuser, New York State has launched a new texting program and confidential service to help New Yorkers experiencing domestic violence.

Text 844-997-2121 or visit www.opdv.ny.gov to confidentially chat with a professional at any time of day or night.

New York State Domestic Violence Hotline

  • 1-800-942-6906
  • Crisis Text Line: Text “Got5” to 741-741.

National Domestic Violence Hotline

  • 1-800-799-7233
  • TTY 1-800-787-3224 (for the deaf or hard of hearing)
  • If it is not safe for you to call, you can live chat online at thehotline.org/what-is-live-chat.
  • Or text “LOVEIS” to 22522.

If you feel you are in immediate danger, call 911.

Your Pension Fund is Strong
Your Pension is Secure

The COVID-19 pandemic has caused economic uncertainty as well as a public health emergency. Businesses are struggling, more people are unemployed, and markets are volatile. Yet among all the uncertain news we seem to hear daily, there is something NYSLRS members and retirees can have confidence in: your Retirement System and pension fund are strong and secure.

Since it was established in January 1921, NYSLRS has proven its strength and durability. Over the past century, the Retirement System has weathered the Great Depression of the 1930s, the Dotcom bubble burst of 2001, the Great Recession of 2008-2009 and more than a dozen other economic downturns. Each time, NYSLRS recovered and emerged stronger than before.

pension fund

Investing for the Long Term

The New York State Common Retirement Fund, which holds and invests the Retirement System’s assets, has been impacted by this largely unprecedented crisis, but the Fund remains strong. While weighing the risk and benefit of every investment, the Fund employs a diversified investment strategy that is designed for the long-term, allowing it to take advantage of growth opportunities in good times, which helps it to better navigate through hard times.

NYSLRS entered the current crisis in a position of strength. Independent analysts, such as the Pew Charitable Trusts, have long recognized NYSLRS as one of the best-managed and best-funded public retirement systems in the nation. The strength of the Fund provides stability and enhances its ability to recover from market swings.

In recent months, before the COVID-19 outbreak, the Fund’s professional managers recognized increased volatility in the stock market. The managers made adjustments in the Fund’s investment portfolio in preparation for an expected economic downturn and are actively managing the Fund through these difficult times. The Fund has more than enough assets to pay retiree benefits.

What This Means for You

New York State Comptroller Thomas P. DiNapoli has a fiduciary responsibility to manage the Fund’s assets on behalf of NYSLRS members and retirees. Protecting the Fund is the Comptroller’s number one priority. As a NYSLRS member or retiree, your lifetime retirement benefits are guaranteed by the State constitution, and those benefits cannot be diminished.

NYSLRS continues to be well-positioned to meet both its short-term and long-term obligations. If you are already retired, you will continue to receive your pension payments on schedule. If you are a member, your pension will be there for you when you retire and throughout your retirement years.

We’ve faced similar challenges in the past. We will get through this one.

Power of Attorney

We continue to receive reports of NYSLRS members who have become ill, or seriously ill, as a result of COVID-19. It is vitally important that these members, and their loved ones, be aware of the provisions contained in a NYSLRS Power of Attorney.

NYSLRS provides a Special Durable Power of Attorney form that is specific to retirement transactions and meets all New York State legal requirements. It can be filed with NYSLRS at any time so the designated agent can act immediately in case of emergency, hospitalization or unexpected illness. There’s no need to wait until something happens to file a NYSLRS POA form.

father and son discuss power of attorney

A power of attorney (POA) allows a person to designate someone else to act on their behalf. The designated person, referred to as an “agent,” could be a spouse, another family member or a trusted friend.

A person can designate more than one person as an agent, and can decide if those agents act together or separately. In addition to an agent or agents, a person may designate “successor agents” to act on an individual’s behalf if the person designated as the “primary” agent is unable or unwilling to serve. Successor agents can be named using the “Modifications” section (g) of the POA.

Why is a NYSLRS POA Important?

Normally, NYSLRS won’t release benefit information to anyone without your permission — even to a spouse. With a POA on file, we would be able to discuss your benefits and conduct business with the agent you appointed. This could be especially important now as we deal with the coronavirus pandemic. If you suddenly become ill and are unable to contact us personally, your agent would be able to take care of your retirement needs for you.

What Can Agents Do?

Agents can file applications and forms, such as service or disability retirement applications. They can get account-specific benefit information, request copies of retirement documents, update addresses or phone numbers or take out loans. For retirees, agents can change the amount withheld from pensions for taxes.

It’s important to note that the NYSLRS POA form only covers Retirement System transactions. It does not authorize an agent to make health care decisions or changes to a Deferred Compensation plan.

Special Authority

If you use the NYSLRS POA form, and your agent(s) or successor agent(s) is your spouse, domestic partner, parent or child, they have “self-gifting authority.” That means they can direct deposit money into a joint bank account you have with them, designate themselves as a beneficiary to your pension benefits, and/or choose a retirement payment option that provides for a beneficiary after your death.

If your agent(s) or successor agent(s) is not your spouse, domestic partner, parent or child, they do not automatically have “self-gifting” authority, which means they cannot name themselves as a beneficiary or direct deposit money into a joint bank account with their name on it. If you wish to give an agent(s) or successor agent(s) ”self-gifting” authority, you should specifically indicate so in section (g) “Modifications” of the POA. In that section you should identify your agent(s) or successor agent(s) by name and state the specific authority granted to them.

Please note only biological or legally adopted children are considered your “child” for NYSLRS POA purposes. All other children must be granted specific authority in section (g) “Modifications.”

How to Submit a NYSLRS POA Form

If your decision to submit a NYSLRS POA is related to the COVID-19 emergency, please note that on the form in section (g) “Modifications.” If you file a retirement application, consider submitting a NYSLRS POA with your application.

You can scan and email a copy of your POA to NYSLRS using the secure email form on our website.

You can also mail your POA (original or photocopy). You may wish to mail it certified mail, return-receipt requested, so that you know when NYSLRS receives it. The address is:

NYSLRS
110 State Street
Albany, NY 12244-0001.

Find Out More

A power of attorney is a powerful document. Once you appoint someone, that person may act on your behalf with or without your consent. We strongly urge you to consult an attorney before you execute this document.

Please read the Power of Attorney page on our website for additional information.

Covid-19

Work During COVID-19 Crisis Won’t Affect Retiree Earnings Limit

New York State needs the help of certain retirees, especially health care professionals, during the COVID-19 emergency.

COVID-19

Normally, most NYSLRS retirees who return to work for a public employer face an earnings limit, but that limit has been temporarily suspended by the Governor by executive order during the emergency. Pay from a public employer earned from March 27 through July 6, 2020 will not count toward a retiree’s annual earnings cap.

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. Once a retiree exceeds the earnings limit and continues to work, their pension benefits are suspended for the remainder of the year.

The New York State Department of Health (DOH) is seeking qualified health care professionals to help out during the coronavirus pandemic. You can find more information on the DOH website.

tax

Taxes and Your NYSLRS Pension

Tax season is here again.

In late January, NYSLRS mailed tax information to retirees (and some members and beneficiaries) so they can file their taxes.

1099-Rs

NYSLRS pensions are not subject to New York State or local income taxes, but in most cases they are subject to federal taxes. In January, we mailed 1099-R tax forms to almost 500,000 retirees who receive taxable benefits. We also mailed 1099-Rs to beneficiaries who received taxable income from NYSLRS in 2019, members who have taken taxable NYSLRS loans or have defaulted on their loans, and those who ended their membership and withdrew their contributions in 2019.

tax info - 1099-R tutorial

A 1099-R shows:

  • The total benefit paid to you in a calendar year.
  • The taxable amount of your benefit.
  • The amount of taxes withheld from your benefit.

If you didn’t get your 1099-R, you can request a reprint. This year, reprints will be available for calendar years 2017, 2018 and 2019. Your 1099-R will be mailed to the address we have on file for you. Sign in to Retirement Online to check or update your mailing address before requesting a reprint.

If you have questions about the information on the form, we feature an interactive 1099-R tutorial on our website. It walks you through a sample 1099-R and offers a short explanation of specific boxes on the form.

Changing Your Federal Tax Withholdings

If you need to make changes to your federal withholding, you can send us a W-4P form at any time. You can use this form to change your withholding status, increase or decrease the number of your exemptions, or request that an additional amount be withheld.

You can use our federal tax withholding calculator to see how these changes would affect your withholding.

Please note: If you change your withholding, it may take a few months before the changes are reflected in your pension payments. You can look up your current payment breakdown, including tax withholding, using Retirement Online.

Retiree Annual Statements Coming

If you’re a NYSLRS retiree and received benefits in 2019, your Retiree Annual Statement should be coming in the mail soon, if you haven’t received it already.

The Retiree Annual Statement provides important information about your retirement account. You should keep your copy in a safe place.

couple reviewing their Retiree Annual Statement

What’s Inside Your Retiree Annual Statement

Your annual statement includes:

  • Your retirement number. To protect your privacy, use this number instead of your Social Security number when conducting business with NYSLRS.
  • Your monthly benefit before taxes, deductions and credits.
  • Your total net benefit for the year. (This is your benefit after taxes, deductions and credits.)
  • The total amount of any cost-of-living adjustment (COLA).
  • Your total Medicare credits (if eligible).
  • Federal tax withholding and other deductions taken from your pension, such as union dues.
  • Health insurance premiums. (NYSLRS doesn’t administer health insurance benefits, but we deduct retiree premiums at the request of your former employer.)

Not a Tax Document

While your Retiree Annual Statement includes information about your benefit payments and tax withholding, it is not a tax document and should not be used for filing your federal income tax return. NYSLRS mailed 1099-R tax forms to retirees and beneficiaries in January.

If you need a reprint of your 2019 1099-R to file your taxes, you can order one online. Reprints will be mailed to the address we have on file for you, so if you’ve moved recently, you should check to make sure your contact information is up to date before requesting a reprint. The fastest way to check and update your address is with Retirement Online. From your account homepage, you can also let us know how you would like to receive information from NYSLRS by choosing your correspondence preference.

Staying Informed

News & Notes, our semiannual newsletter, will be included with your Retiree Annual Statement. The newsletter will help you keep up with the latest news about NYSLRS and other topics of interest.

Your Statement provides a snapshot of your NYSLRS account as of December 31, 2019, but you can get up-to-date information by signing in to Retirement Online. If you don’t already have an account, you can learn more or register today.

NOTE: when there is a change in your net benefit amount, NYSLRS will notify you by mail or email.

Retirees: Know Your Post-Retirement Earnings Limit

Retirees: Know Your Post-Retirement Earnings LimitAs a NYSLRS retiree, you can work for a public employer after retirement and still receive your pension, but there may be an earnings limit on how much you can earn.

Public employers include New York State, municipalities in the State (cities, counties, etc.), school districts and public authorities. If you’re self-employed or work for a private employer, another state, or the federal government, you can collect your full NYSLRS pension no matter how much you earn. (However, earnings for most disability retirees are limited whether they work for a public or private employer. To find out your earnings limit, please contact us.)

Two sections of New York State Retirement and Social Security Law (RSSL) apply to NYSLRS service retirees who return to work in the public sector.

Section 212: Earnings Limit Increases to $35,000 in 2020

Section 212 of the RSSL allows retirees to earn up to $30,000 from public employment in calendar year 2019. Legislation signed in December 2019 increased the earnings limit to $35,000 for calendar year 2020 and future years. There is generally no earnings restriction beginning in the calendar year you turn 65. (Special rules apply to elected officials.) If you are under 65 and earn more than the Section 212 limit, you must:

  • Pay back, to NYSLRS, an amount equal to the retirement benefit you received after you reached the limit. And, if you continue to work, your retirement benefit will be suspended for the remainder of the calendar year.

OR

  • Rejoin NYSLRS, in which case your retirement benefit will be suspended.

Section 211: Requires Employer Approval

Under Section 211, the earnings limit can be waived if your prospective employer gets prior approval. (In most cases, the New York State Department of Civil Service would be the approving agency.)

Section 211 approvals apply to a fixed period, normally up to two years. Approval is not automatic; it is based on the employer’s needs and your qualifications.

Before you decide to return to work, please, please read our publication, What If I Work After Retirement? If you still have questions or concerns, please contact us.

Too Much Free Time?

Could retirement bring you too much free time? When people think about retirement planning, they usually think about money. Will you have enough to maintain a comfortable lifestyle for a retirement that could last decades? But regardless of your finances, there is one thing you’re likely to have a lot more of after you retire: time. Figuring out how you’ll spend that time should also be part of your retirement planning process.

Free time after retirement

Counting the Hours

According to the U.S. Labor Department, the average American worker spends about nine hours a day at work. Add another hour a day commuting time, and that’s ten hours a day or 50 hours each week.

All those hours you spent working, and traveling to and from work, will instantly become free time. While that may sound great to many people, all that extra time can have downsides.

If not put to good use, that extra time can lead to boredom and even depression. What’s more, if you’re married and you and your spouse are both retired, you may find yourselves wondering how to spend that time together.

Make a Plan for Free Time

For many couples, having extra time together is a dream come true. However, some couples find themselves getting in each other’s way, and that can sometimes lead to problems.

But there are ways to cope. For example, finding activities outside the home, both together and separately, can help. As with most things, you’ll be better off if you recognize there may be a problem, discuss it with your spouse, and come up with a plan.

There are more thoughts on the subject, and some good advice, in this article: 10 Tips to Help Your Marriage Survive Retirement.

Retirement Online for Retirees

Retirees, you’ll want to take advantage of the safety and convenience of Retirement Online to conduct business with NYSLRS.

Using Retirement Online may save you a phone call or a trip to the mailbox. You can conduct retirement transactions in real time when it’s most convenient for you.

Retirement Online for Retirees

View Your Benefit Information

Review the most up-to-date information about your account. Check on the details of your pension and review deductions.

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.

Snowbirds, take note. You can schedule an address change so you get NYSLRS mail at your seasonal home without interruption. This will ensure that you get your 1099-R tax forms in time to file your tax return.

Manage Your Beneficiaries

You can change the beneficiary for your 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.

Generate an Income Verification Letter

You may need to prove your pension income for business reasons, such as applying for a mortgage or renting an apartment. With Retirement Online, you can generate an income verification letter any time you need one.

Retirees: Register for Retirement Online Today

Retirement Online is generally available from 7:00 am to 5:00 pm, seven days a week. In the future, we will be expanding its hours of operation. We’ll also be introducing additional features, including the ability to manage your direct deposit information online.

It’s easy to create your own account. If you have any difficulty, our online guide takes you step by step through the process. You’ll find it, and other helpful information, in the Tools & Tips section of the Retirement Online page.

A Snapshot of NYSLRS Retirees

NYSLRS’ Comprehensive Annual Financial Report (CAFR), published each fall, has a wealth of information about the Retirement System. Much of it is technical — mostly about investments — but it’s also a good place to learn about NYSLRS retirees.

Here are a few tidbits we’ve gleaned from the latest edition, which includes data from the State fiscal year that ended March 31, 2019.

NYSLRS Retirees by the Numbers

NYSLRS was providing pension benefits to 481,795 retirees and beneficiaries as of the end of the fiscal year.

Nearly 79 percent of NYSLRS retirees and beneficiaries — some 379,057 — live right here in New York State, and they can be found in every county. Long Island and Western New York are both home to more than 60,000 NYSLRS retirees and beneficiaries, while nearly 55,000 live in the Capital District.

NYSLRS retirees can also be found in every state. Florida, not surprisingly, is the number two choice — more than 38,000 call the Sunshine State home. North Dakota is the least popular destination, with only two dozen NYSLRS pensioners. Another 695 live outside the United States.

Snapshot of NYSLRS Retirees

NYSLRS Pensions at Work

NYSLRS retirees live in our communities. Their pension money flows right back into our neighborhoods, stimulating and growing local economies. In 2018 alone, NYSLRS retirees generated $12.6 billion in economic activity in New York State. They paid nearly $2 billion in property taxes, paid State and local sales taxes, and spent money at local businesses. Spending by NYSLRS retirees and their beneficiaries was responsible for creating an estimated 76,100 local jobs in 2018. Learn more.

An Award-Winning Publication

NYSLRS has received a Certificate of Achievement for Excellence in Financial Reporting for the CAFR for the last 15 years. It’s a national award recognizing excellence in the preparation of state and local government financial reports.

To find out more about retirees, members and NYSLRS’ investments, check out this year’s CAFR on our website.