Tag Archives: Retirement Online

NYSLRS Membership Basics

Whether you’re a new member or have been part of the Retirement System for years, you’re sure to have questions about your NYSLRS membership. What is vesting? Final average earnings? Maybe you’re wondering what tier you’re in or why that even matters. While NYSLRS administers many different retirement plans, the core concepts of a NYSLRS membership remain the same. Here are the basics.

Your NYSLRS Membership Basics

Four Things to Understand About Your NYSLRS Membership

When learning about your NYSLRS benefits, you should become familiar with these four basic concepts:

  • Tier. Your tier is based on the date you joined NYSLRS and helps determine the benefits available to you. If you’re a new NYSLRS member, you’re likely in Tier 6. Tier 6 members joined NYSLRS on or after April 1, 2012.
  • Service Credit. You earn a year of service credit for each year you work for a participating NYSLRS employer. Part-time work is prorated. Your total service credit at retirement is a major factor in determining the amount of your pension.
  • Vesting. You become vested after you earn five years of service credit. It’s a significant milestone to reach because once you become vested, you’ll be eligible for a NYSLRS pension when you reach retirement age, even if you leave public service.
  • Final Average Earnings. Final average earnings is the average of your earnings during a period when your pay is highest. It’s another major factor in determining the amount of your pension.

Once you understand these basics, it can make learning more about your NYSLRS membership and benefits easier and help you get ahead on your retirement planning.

Your NYSLRS Pension and Other Benefits

Being a NYSLRS member means you are part of a defined benefit retirement plan. This means your NYSLRS pension will be a lifetime benefit, and it will be based on your final average earnings and service credit, not the contributions you make toward your retirement.

NYSLRS also provides other important benefits for its members, including:

Where to Get More Information

We want to provide you with the information you’ll need to plan for your retirement and make critical decisions about your future. Here are the resources available to you:

Retirement Online is the quickest way to access account information such as your tier, retirement plan and estimated total service credit. Sign up for a Retirement Online account if you don’t already have one.

If you have questions about your NYSLRS membership or benefits, you can find answers on our NYSLRS website. You can find different webpages, such as our Understanding Your NYSLRS Benefits page, that explain what benefits and services are available to you. Reading your retirement plan publication is a great way to get a comprehensive understanding of your benefits. Go to our Publications page to find your retirement plan and other helpful information.

If you have questions about your account or your NYSLRS benefits, please email us using our secure contact form.

NYSLRS Loans and Retirement Online

Planning on taking out a NYSLRS loan? Applying online offers speed and convenience.

NYSLRS loan eligibility is based on your tier, but generally, you’ll need to be on the payroll of a participating employer, have at least one year of service and have a certain amount of contributions in your account. Retirement Online will provide the eligibility information you need as you step through the application process. (Note: retirees are not eligible for NYSLRS loans.)

Use Retirement Online to apply for a NYSLRS loan

Getting Started

Retirement Online is the fastest way to apply for a NYSLRS loan. It’s also an easy way to check your current loan balance, the amount you are eligible to borrow and more.

­­If you don’t already have an account, go to the Sign In page and click “Sign Up” under the “Customer Sign In” button. (Need help with Retirement OnlineSee this post for handy tips.)

The Application Process

Once you’ve signed in, scroll down to ‘My Account Summary.’ Under ‘I want to…’ click the green “Apply for a Loan” button and follow the prompts.

As you work your way through the online application, you’ll see:

  • How much you can borrow;
  • The minimum repayment amount;
  • The expected payoff date; and
  • How much you can borrow without tax implications.

A service charge of $45 will be deducted from your loan check when it is issued. The current interest rate is 5 percent. The interest rate will remain fixed for the term of your loan.

NYSLRS loans are exempt from New York State and local income taxes. But the Internal Revenue Service (IRS) may consider all or part of a NYSLRS loan taxable in some cases – for instance, if you borrow above certain limits. The Retirement Online loan application will show you the maximum amount you can borrow without tax implications. 

If you already have a loan and you want to take another loan, you can either take multiple loans or refinance your existing loan. Taking a new loan (the multiple-loan option) minimizes your potential tax consequences. Your minimum payment will be higher, but you will pay off your loans faster than you would by refinancing. Refinancing adds the new loan amount to your existing balance and spreads the entire balance over a new five-year term. Your payment will be lower but your tax consequences may be significantly higher.

Repaying Your NYSLRS Loan

Loan payments will be deducted from your paycheck. You can choose the minimum payroll deduction, which would pay off your loan in five years, or you can pay more to pay off your loan sooner. The payment calculator in Retirement Online will provide your expected payoff date if you enter an amount higher than the minimum.

Retiring With an Outstanding NYSLRS Loan

If you retire with an outstanding loan, your pension will be reduced. You will also need to report at least a portion of the loan balance as ordinary income (subject to federal income tax) to the IRS. If you retire before age 59½, the IRS may charge an additional 10 percent penalty. If you are nearing retirement, be sure to check your loan balance. If you are not on track to repay your loan before you retire, you can increase your loan payments, make additional lump sum payments or both.

Note: Employees’ Retirement System (ERS) members may repay their loan after retiring, but they must pay the full amount (that is, the amount that was due on their retirement date) in a single lump-sum payment. Following your full repayment, your pension benefit will be increased from that point going forward, but it will not be adjusted retroactively back to your date of retirement. 

More Information

For more information about NYSLRS loans, visit our Loans page. If you need help with the Retirement Online loan application, click “Help” at the top of your account page, then click next to ‘Requesting a Loan’ and select the step-by-step guide that best fits your situation.

A Short To-Do List for After You Retire

There are a few things you should do regarding your NYSLRS benefits after you retire. This way, wherever your retirement takes you, we can continue to provide you with the benefits and services available to our retirees.

A Short To-Do List for After You Retire

Sign Up for Retirement Online

If you don’t already have a Retirement Online account, this is a great time to sign up. Retirement Online provides a secure and convenient way to check important NYSLRS information, like the deductions from your latest payment and a summary of your benefits. You can also view or update beneficiary information and generate pension income verification letters right from your computer. We’ll be adding additional online features for retirees in the near future, so stay tuned.

Have New Contact Information? Let Us Know

If you move after you retire, let NYSLRS know your new address so you can be sure to get important communications about your benefits.

The Post Office usually won’t forward pension checks to another address. If you haven’t already, you can sign up for our direct deposit program. It’s the safe, hassle-free way to receive your monthly benefit. But there are other things you’ll want to receive from us after you retire, such as:

  • Your 1099-R form. Your pension isn’t taxed by New York State, but it is subject to federal income tax.
  • Your Retiree Annual Statement. It’s a helpful reference that spells out the benefits, credits and deductions you receive each year.
  • Any official notifications such as a net change in your benefits.
  • Your Retiree Notes newsletter.

There are several ways to update your address. The fastest way is through Retirement Online. Or, you can complete our secure contact form for street addresses within the United States. Be sure to fill out the entire contact form and provide both your old and new addresses.

You can also complete a Change of Address Form (RS5512) and mail it to:

NYSLRS
110 State Street
Albany, NY 12244-0001

You should also make sure we have your current email address. Having an email address on file means we can contact you quickly if we need to notify you about an update to your NYSLRS benefits. If you haven’t updated your email address with NYSLRS, update it in Retirement Online, send it to us using the secure email form or send it to us with your Change of Address Form (RS5512).

Keep Your Beneficiary Information Current

Reviewing your beneficiary designations periodically is important. By keeping them up to date, you ensure that any post-retirement death benefit will be distributed to your loved ones according to your wishes. You can use Retirement Online to change your death benefit beneficiaries at any time, or contact our Call Center and we will send you the necessary form.

Read Our Guide for Retirees

Check out our publication, Life Changes: A Guide for Retirees (VO1705), for information about other benefits you may be entitled to and the services we offer after you retire.

Retirement Planning: Questions to Ask Yourself

retirement planning - things to think aboutAfter months or years of retirement planning, you’re probably looking forward to the day when you apply for your NYSLRS pension. But before you retire, there are a few questions you should ask yourself. After all, by filing for retirement, you’re making critical decisions about your financial future. And once you’ve retired, some of those decisions will be irrevocable. Whether your planned retirement date is just around the corner or a few years off, asking these questions now could help you avoid costly mistakes.

Do I have all the service credit I think I have?

Under some retirement plans, service milestones (20 years, 30 years, reaching full retirement age) can have a big impact on the amount of your benefit. If you’re aiming for one of these milestones, but retire just short of reaching it, your pension will be less than you might be expecting. To make sure you have enough service credit on your planned retirement date, sign in to Retirement Online to check the most up-to-date estimate of your total service credit.

Do I have previous service credit I want to purchase?

You may be able to buy credit for previous public employment or military service, which in most cases would increase your pension.  

If you are planning to purchase service credit, including military service, you should do that as soon as possible, especially since you can’t purchase service credit after you retire. You can apply for additional credit in Retirement Online or by submitting a Request to Purchase Service Credit form (RS5042). You may also wish to read our publication Service Credit for Tier 2 Through 6.

Do I have a balance on a NYSLRS loan?

If you have an outstanding balance on a NYSLRS loan, you should pay it off before you retire. If you retire with an outstanding loan, your pension will be permanently reduced.

While Employees’ Retirement System members may repay their loan after retiring, they must pay back the full amount of the outstanding balance that was due at retirement in one lump-sum payment. Once the loan has been repaid, their pension benefit will be increased from that point going forward, but it will not be adjusted retroactively back to their date of retirement.

You can use your Retirement Online account to check your loan balance, make a lump-sum payment or increase your payment amount. For more information, visit our Loans page.

Retirement Planning Resources

The more you know about retirement and the retirement process, the better off you’ll be. Here are some resources that can help with your retirement planning:

How Full-Time and Part-Time Service Credit Works

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.

Make Sure You Receive Your Member Annual Statement

Member Annual Statements are distributed to NYSLRS members each spring (retiree statements are delivered by early March). It’s important that you make sure your contact information is correct to ensure you receive your Statement. (Note: Updating your contact information with your employer doesn’t update it with NYSLRS.)

Use Retirement Online to Check or Update Your Contact Information

The fastest way to check your contact information, and update it if needed, is through Retirement OnlineSign in to your Retirement Online account, go to the ‘My Profile Information’ area of your Account Homepage and click “update” next to your mailing address or email address to make corrections.

If you have trouble signing in to your account, please read our Retirement Online Tools and Tips blog post for help.

If you don’t have a Retirement Online account, it’s easy to create one. Visit our Retirement Online Sign In page and click ‘Sign Up’ under the Customer Sign In button. When you create your account, you’ll be asked to provide the ZIP code of your home address. If it doesn’t recognize your current ZIP code, it’s likely we have an older address on file for you. Please use the older ZIP code to create your account — you can update your address after you register. If you need assistance with Retirement Online, please call our Customer Service Representatives at 866-805-0990.

You can also update your contact information using our secure contact form, as long as your new mailing address is not a PO Box. Be sure to complete all fields and provide your old and new contact information.

update contact information and your Statement preferences

Get Your Statement Faster

You’ll receive your Statement faster if you choose the email option in Retirement Online. If you choose this option, you’ll receive an email that directs you to Retirement Online to see your Statement as soon as it’s ready. To choose your Statement delivery preference, go to the ‘My Profile Information’ area of your Retirement Online Account Homepage and click “update” next to ‘Member Annual Statement by.’

You can also receive other correspondence from us by email by clicking “update” next to ‘Contact by.’ If you choose ‘Mail’ or don’t select a preference, you will receive letters through the US Postal Service. Note: For security purposes, certain correspondence (like tax forms) are only sent by mail.

Please share this post with friends, family or coworkers who are NYSLRS members so they can also check their contact information.

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). Your tier determines such things as your eligibility for benefits, the calculation of those benefits, death benefit coverage and whether you need to contribute toward your benefits.

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 almost 40 percent of PFRS membership, totaling 13,956 members, making it the second largest tier in PFRS.

About Regular Plans and Special Plans

Under a regular plan, you need to reach certain age and service requirements to receive your NYSLRS pension. If you’re covered by a special plan, there is no age requirement, and you can receive your pension after completing 20 or 25 years of service.

Nearly 80 percent of PFRS members are in plans covered under Sections 384, 384-d, 384-e or 384-f of the Retirement and Social Security Law. Read our Police and Fire Retirement System blog post for information about different PFRS plans.

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. If you’re not sure what retirement plan you’re in, you can find that information in the My Account Summary section of your Retirement Online account. You can also check your Member Annual Statement, ask your employer or email us using our secure contact form.

For special plans under miscellaneous titles, please visit our Publications page. Check out other posts in the PFRS series:

Estimate Your Pension in Retirement Online

How much will your pension be?

Fortunately, it is now easier than ever to find out. Most NYSLRS members can create their own pension estimate in minutes using Retirement Online.

Retirement Online estimate is based on the most up-to-date account information we have on file for you. You can enter different retirement dates to see how those choices would affect your benefit. When you’re done, you can print your pension estimate or save it for future reference.

estimate your pension in Retirement Online

How to Create Your Pension Estimate

Before you can use the pension calculator, you will need a Retirement Online account. Once you sign in, go to the My Account Summary section of your account homepage and click the “Estimate my Pension Benefit” button.

You can enter an estimated retirement date (or retirement age), your current salary and expected annual salary increases. You can also include any service credit you plan to purchase and anticipated lump sum payment for unused vacation. If you add the birthdate for a beneficiary, you’ll also see the estimated monthly payment you would receive if you were to choose a pension payment option that provides a benefit for a survivor.

Any pension estimate you generate with the online calculator would be an approximation of your potential benefit; it is not a guarantee that you’ll receive a certain amount when you retire.

Alternative Ways to Get an Estimate

While more than 90 percent of NYSLRS members (most Tier 3 through 6 members) can use the benefit calculator, some members should have NYSLRS generate their benefit estimate. For example, if you recently transferred your membership to NYSLRS or are covered under certain special plans, it would be better if NYSLRS created an estimate for you.

The system will notify you if your estimate cannot be completed using Retirement Online’s estimate tool. Please contact us to request a pension estimate if you receive this notification. Also, if you are in Tiers 1 through 4, you can still use the Quick Calculator on the NYSLRS website. The Quick Calculator generates estimates based on information you provide.