Tag Archives: Retirement Online

Pension Verification Letters

As a retiree, you may find yourself needing a letter verifying your pension income — maybe for housing or as part of an application for the Home Energy Assistance Program (HEAP). There are four ways to get a pension verification letter.

Four Ways to Get a Pension Verification Letter

1. Retirement Online

Retirement Online is fastest and most convenient way to get a pension verification letter. First, sign in. Then, on your account homepage, in the ‘I want to…’ section, click the Generate Income Verification Letter link.

A pop-up box with a confirmation message will appear. Once you click OK, your pension income verification letter will open in a new browser tab, ready for you to print or save.

pension verification letter infographic

2. Email

You can email us your request using our secure contact form. Tell us what information you need, and be sure to include your daytime phone number, in case our customer service representatives have a question. In most cases, we’ll mail your letter in five to seven business days.

3. Phone

You can call us with your request at 1-866-805-0990 (518-474-7736 in the Albany, New York area). Our Call Center is open Monday through Friday, 7:30 am – 5:00 pm. As with email, we usually mail letters in five to seven business days.

4. Fax

You can also fax your request to 518-473-5590. Include your retirement or registration number, current address, signature and phone number in case we have questions. Tell us whether you want the letter mailed or faxed to you (provide a fax number).

Sending a Pension Verification Letter to a Third Party

At your request, we can send a letter verifying your pension income directly to a lending institution, housing authority, nursing home or other third party. However, because this information is confidential, we need your signed written permission.

If you decide you want us to send a letter to a third party, they must fax us a request and include a signed release from you giving us permission to release your information.

Taxes and Your NYSLRS Loan

You may be eligible to borrow money against your retirement contributions, but the loan may have tax implications. A NYSLRS loan is exempt from New York State and local income taxes, but it would be subject to federal taxes if the loan amount exceeds certain limits. That means you would need to include it on your federal income tax return for the year the loan is issued.(We’ll send you a 1099-R to file with your taxes.)

If you already have one or more outstanding NYSLRS loans, all or part of your new loan could be taxable. Also, if you already have a loan from a deferred compensation (457) or a tax-sheltered annuity (403-b) plan from your current employer, the total of all of your loan balances will be used in calculating your tax threshold.

The tax impact can be significant, and may even push you into a higher tax bracket. And, if you’re younger than 59½, the Internal Revenue Service (IRS) may charge a 10 percent penalty on top of your federal income taxes. Even if a substantial portion of your loan goes to the IRS, you’ll still have to repay the entire amount, plus interest, to NYSLRS. Moreover, if you do not pay off your loan before you retire, your pension will be permanently reduced.

You can have NYSLRS withhold 10 percent of the taxable amount from your loan check, but in most cases that will not cover the total amount you will owe the IRS.

Multiple Loans vs. Refinanced Loans

You may be able to avoid taxes, or at least lower them, by the way you structure your loan. If you have one or more NYSLRS loans and are considering another loan, you’ll have two options. You can take it as a separate loan (known as a multiple loan) or you can refinance your existing loan(s) to include the new loan amount.

The multiple loan option minimizes the potential tax impact. The minimum payment amount is higher for a multiple loan, but the minimum payment amount goes down as your loans are paid off. (The separate loan payments will be combined into a single payroll deduction.) The refinanced loan balance is spread over an additional five-year period. This reduces the minimum payment, but the taxable amount of a refinanced loan will always be greater than the taxable amount of a multiple loan.

Use Retirement Online to apply for a NYSLRS loan

 

Retirement Online

Retirement Online, our self-service tool that gives you secure access to your account information, is the most convenient way to apply for a loan. Retirement Online will also let you know how much you can borrow, your repayment options and whether your loan is taxable. If you don’t already have an account, visit our website to learn more.

We recommend that you speak to a tax advisor or a NYSLRS customer service representative before taking a taxable loan. For more information about taking a loan from NYSLRS, visit our Loans page.

Just Started A New Public Sector Job? Remember This Step…

Are you a current New York State & Local Retirement System (NYSLRS) member working at a new job in the public sector? Even though you’re already a member, make sure your new employer sends us a membership application for you.

The Importance of the Filling a New Membership Application

woman on job interview

By sending a new membership application, your employer provides us with updated information about your membership, like the start date of your new position and your job title. But, it’s important for other reasons as well. Up-to-date member information:

  • Ensures that your employment history and benefit projection are accurately reported in your Member Annual Statement;
  • Helps guarantee that benefit determinations are based on the most current information;
  • Highlights any delays between when you began working and when your employer started reporting you;
  • Ensures that we will receive the correct contribution amount for your membership; and
  • Allows us to update your retirement plan in our records, should you change plans as a result of your new employment.

Starting a new public sector job is also a good opportunity to update your beneficiary information . You should check your beneficiaries regularly to make sure any benefits will be paid according to your wishes. Payments are made to the last named beneficiary.

Retirement Online is the convenient and secure way to review and update your beneficiary information. Register or Sign In , and then click “Update My Beneficiaries.”

Being a Friend

While you have applications on your mind, think about any friends or coworkers you may have. Perhaps, like you, they have recently changed jobs. Remind them to make sure their employers submit new applications.

Or, maybe you know a coworker who isn’t a mandatory member of NYSLRS, but who has that option. Suggest they consider joining NYSLRS.

It’s a good idea to join even if you aren’t sure you’ll ever apply for a benefit. By becoming a NYSLRS member, you lock in your tier and protect your benefits. And, if you do decide to leave public employment and withdraw your membership, you’ll receive 5 percent on your contributions, which can be a competitive return.

For more information about the benefits of NYSLRS membership, check out our Membership in a Nutshell publication.

Have You Tried Retirement Online?

Doing business with NYSLRS has never been easier. Retirement Online provides a safe and convenient way to review your retirement account details and conduct transactions in real time. In many cases, you can use Retirement Online instead of sending forms through the mail or calling NYSLRS.

Registration is easy and secure. Retirement Online uses the same security safeguards used for online banking. You’ll be asked a series of security questions while registering. The questions are used to verify your identity.

Once you register and sign in, members, retirees and beneficiaries can access a variety of time-saving features.

Everyone can

  • View benefit information. Instead of relying on your annual statement or calling our Contact Center, with Retirement Online, you can review up-to-date information about your account when it’s convenient for you.
  • Update contact information. Moving? No problem. Change your address, phone number or email address online instead of calling or emailing us.

Members can

  • View or update beneficiaries. It’s a good idea to keep your beneficiary designations up to date. View your selections and submit changes instantly.
  • Apply for a loan. You may be eligible to take out a loan against your NYSLRS contributions. Do it safely and conveniently with Retirement Online.

Retirees can

  • View or update beneficiaries.
  • Generate a verification of income letter. Sometimes a business or government agency requires you to verify your pension income. Generate and print an official income verification letter any time you need one.

Beneficiaries can

  • Generate a verification of income letter.

More features will be rolled out in the future. In time, members will be able to estimate their projected pension benefit and purchase service credit, while retirees will get to manage their direct deposit information and more.

Retirement Online is available weekdays, 6:30 am to 8:00 pm, and weekends, 6:30 am to 5:00 pm.

About web browsers

The recommended web browser to use for Retirement Online is Internet Explorer, but you can also use Google Chrome.

Learn more about Retirement Online

If you need help with your retirement online account, please call our Contact Center at 1-866-805-0990 (or 518-474-7736 in the Albany, New York area). You can also email us using our secure contact form.

Know Your Benefits: Your NYSLRS Pension

Generally, three main components determine your NYSLRS pension: your retirement plan, your final average salary (FAS) and your total service credit.

Your Retirement Plan

NYSLRS retirement plans are established by law. Your plan lays out the formula we’ll use to calculate your pension as well as eligibility requirements. It’s important to read your plan booklet, which you can find on our Publications page.  If you aren’t certain what retirement plan you’re in, check your Member Annual Statement or ask your employer.

NYSLRS Pension Chart

Final Average Salary

Your FAS is the average of your earnings during the set period of time when they were the highest. For ERS and PFRS members in Tiers 1 through 5, that period is three consecutive years; for Tier 6 members, it’s five consecutive years. Some PFRS members may be eligible for a one-year period, if their employer offers it. We will use your FAS, age at retirement, total service credit and the formula from your retirement plan to calculate your NYSLRS pension.

Generally, the earnings we can use for your FAS include regular salary, overtime and recurring longevity payments earned within the period. Some payments you receive won’t count toward your FAS, even when you receive them in the FAS period. The specifics vary by tier, and are listed in your retirement plan booklet.

In most cases, the law also limits how much your pensionable earnings can increase from year to year in the FAS period. Earnings above this cap will not count toward your pension.

Our Your Retirement Benefits publications, (ERS and PFRS), provide the limits for each tier and examples of how we’ll determine your FAS.

Service Credit

Service credit is credit for time spent working for a participating public employer. For most members who work full-time, 260 workdays equals one year of service credit. Members who work part-time or in educational settings can refer to their retirement plan publication for their service credit calculation.

Service credit is a factor in the calculation of your NYSLRS pension. Generally, the more credit you have, the higher your pension will be. Some special plans (usually for police officers, firefighters or correction officers) let you retire at any age once you’ve earned 20 or 25 years of service credit. In other plans, if you retire without enough service credit and don’t meet the age requirements of your retirement plan, your pension will be reduced.

Planning Ahead for Your NYSLRS Pension

As you get closer to retirement age, keep an eye on your service credit and FAS. Make sure we have an accurate record of your public employment history. You can sign in to Retirement Online or check your latest Member Annual Statement to see the total amount of service credit you’ve earned. You may also want to take a look at our budgeting worksheet or try our Benefit Projector Calculator as you plan for your retirement.

If you have questions, or want to find out more information about what makes up your NYSLRS pension, please contact us.

Designating Beneficiaries: An Important Decision

When you join NYSLRS, we ask you to designate one or more beneficiaries who may receive certain benefits if you die while working. But, don’t forget about your beneficiaries after you turn in your membership application. It’s important to review them periodically to make sure they reflect your current wishes.

Your beneficiaries can be anyone; you don’t need to choose family members. You can even name an organization, such as a charity or religious institution, or your estate. And, did you know there are two types of beneficiary that you can designate?

Types of Beneficiaries

You can name both primary and contingent beneficiaries:

  • Your primary beneficiary will receive any payable benefit. You can list more than one primary beneficiary, and if you do, they will share the benefit equally. You can also choose different percentages for each beneficiary, as long as they total 100 percent. (Example: John Doe, 50 percent; Jane Doe, 25 percent; and Mary Doe, 25 percent.)
  • Your contingent beneficiary will only receive the benefit if all your primary beneficiaries die before you do. Multiple contingent beneficiaries will share the benefit equally, unless you choose to divide the benefit among them differently.

How Do I Designate a Beneficiary?

Even though you designated a beneficiary when you first joined NYSLRS, you can update your beneficiaries any time.

  • The fastest way to view or update your beneficiaries is through Retirement Online. It’s a convenient and secure way to review your personal details, contact information and more. Register and sign in, then click Manage My Beneficiaries on the right, under I want to ….
  • You can also complete and mail us a Designation of Beneficiary form (RS5127). Be sure to sign and date the form, and have your signature notarized. The notary must include his or her notary expiration date, and your notary should not be one of your beneficiaries. We can’t accept a form with any alterations, including erasures or the use of correction fluid. You can name up to four primary and four contingent beneficiaries on the form. Please contact us if you want to designate more, because we cannot accept attachments.

Whether you change your beneficiaries online or by mail, be sure to include all of your beneficiaries. Your new beneficiary designations will replace all of your previously named beneficiaries. The changes will not take effect until we review and approve your designations.

More Information

You can read more about beneficiary designations in our Life Changes: Why Should I Designate a Beneficiary? publication. If you have any other questions, please contact us.

How To Keep Your NYSLRS Records Up-to-date

Whether you joined NYSLRS  recently or are preparing to retire, accurate records are essential. To make sure that your records are ready when you are, it’s important to check and update your NYSLRS account details. Here’s how:

  • Sign in to Retirement Online. It’s a convenient and secure way to review your records for personal details, contact information, designated beneficiaries and more. In many cases, you can use Retirement Online to make changes instead of sending forms through the mail or calling NYSLRS.
  • Review your Member Annual Statement (MAS). Each summer, your MAS offers an overview of your retirement account. Check it over carefully to make sure your date of birth, date of membership, service credit, earnings and other details are correct.

Be sure to contact us if you find any information that’s missing or incorrect. Get in touch right away:

  • When your mailing address changes. This is especially important if you leave public service before you’re eligible for retirement. With your correct address on file, we’ll be able to keep you informed about your benefits. The fastest and easiest way to update your address is to sign in to Retirement Online and make the change, or you can send us a completed Change of Address form (RS5512), though this process will take longer.
  • When you find a date-of-birth error. If your date of birth is wrong on any paperwork that we send you, we need to know. Please send us a photocopy of documentation showing your correct date of birth (such as a copy of your birth certificate). You can attach it to an email using our secure contact form, or write to our Member and Employer Services Bureau Registration Unit at 110 State Street, 5th Floor, Albany NY 12244-0001.
  • When you change your name. You can change your name in our records by submitting a Name Change Notice form (RS5483). If a court order was necessary for your name change, you’ll need to include a copy of the order.
  • When you want to select or change your beneficiaries. Sign in to Retirement Online and click Update My Beneficiaries. Retirement Online is the fastest way to get the job done. But, you can also complete a Designation of Beneficiary form (RS5127) and send it to us.

 

News You May Have Missed

Information comes at us fast these days. So, we thought we would say one last goodbye to 2017 with some news from your retirement system that you may have missed last year.

Investing in a Cleaner Future

The New York State Common Retirement Fund holds some $200 billion of assets in trust for more than a million NYSLRS members, retirees and beneficiaries. But, that’s not all it does. Here’s a look at how Comptroller DiNapoli is putting the Fund’s investments and influence to work — taking advantage of low-carbon investment opportunities and seeking improvements in the environmental practices of the companies in the Fund’s portfolio.

Read more …

Knowing Your Retirement Plan is the Key to Retirement Planning

We’re all NYSLRS members, but we’re spread out over two systems, six tiers and 346 retirement plan combinations. Here’s a look at why knowing your plan is so important when it comes to understanding your benefits and planning for retirement — and how to find yours if you don’t know it already.

Read more …

Choosing Your Pension Payment Option

When it comes to retirement, you have some decisions to make: whether to retire, when to retire, but also, how you want to receive your pension benefit. It’s an important choice, one which can affect both your own financial security and that of your loved ones. In this post, we break down your options.

Read more …

Help with Retirement Online

More than 100,000 NYSLRS members, retirees and beneficiaries are now using Retirement Online to review their NYSLRS benefits and conduct transactions in real time. If you’re one of them, but you’ve forgotten your password or your user ID, or if you want to register a trusted device, we can help.

Read more …

Know Your Benefits: Death Benefits

Another in our Know Your Benefits series. This time, we tackle death benefits. Most of us will leave our beneficiaries what’s called an ordinary death benefit if we die while we’re still working. We take a look at this and other common death benefits and how your survivors should file for them.

Read more …

From NYSLRS

Update Your Beneficiaries

It’s easy and important

How long has it been since you thought about your NYSLRS beneficiaries? A year, two years, five? Did you get married since then? Get divorced? Have a child?

When you die, your NYSLRS death benefit will be paid to the last beneficiaries you designated. That’s the law. That’s why it’s so important that you check your NYSLRS beneficiary designations periodically.

Luckily, it’s easier to do than ever.

The new Retirement Online is a convenient way to review account details and conduct business with NYSLRS in real time. Now, instead of sending a form through the mail, you can simply sign in to Retirement Online to view your designations and submit changes instantly.

Register and sign in to Retirement Online today to update your beneficiaries and access a variety of other time-saving features.

Types of Beneficiaries

You can designate primary and contingent beneficiaries:

  • A primary beneficiary receives your death benefit. If you name more than one primary beneficiary, they will split the benefit equally.
  • A contingent beneficiary receives a benefit only if all your primary beneficiaries are deceased when you die.

Special Benefit Designations for Beneficiaries

Special Beneficiary Designations

Your beneficiary doesn’t have to be a person:

  • When you die, your estate is all the money and property you owned. If you make your estate a beneficiary, the executor of your estate will distribute your benefit according to your will. If you outlive both your primary and contingent beneficiaries, your benefit will go to your estate by default.
  • A trust is a legal arrangement giving a person you choose legal control over property — such as a death benefit. The trust itself would be your NYSLRS beneficiary, not the individuals for whom you established the trust. (You may want to speak with your attorney if you’re thinking about making your trust a beneficiary.)
  • You can name a charitable, civic, religious, educational or other kind of organization as a beneficiary too.

For more information about beneficiaries, check out our booklet, Why Should I Designate a Beneficiary? (VO1706).