Tag Archives: Retirement Online

10 Things All NYSLRS Members Should Know

Brush up on your Retirement System knowledge! Here are 10 things all NYSLRS members should know.

10 Things All NYSLRS Members Should Know
  1. Lifetime Retirement Benefit
    You are part of a defined benefit pension plan, which provides a lifetime benefit at retirement based on your earnings and years of service.
  2. Qualify for a Retirement Benefit by Becoming Vested
    Becoming vested is a key milestone in every NYSLRS member’s career. Once you’re vested, you have earned enough service to qualify for a retirement benefit, once you meet the minimum age requirements established by your retirement plan.
  3. Tier Determines Benefits
    Your tier determines your eligibility for benefits under your plan and how those benefits are calculated.
  4. Conduct NYSLRS Business Using Retirement Online
    Retirement Online is the fastest and most convenient way to do business with NYSLRS. It only takes a few minutes to open your account. Use Retirement Online instead of calling or mailing for instant access to benefit information and convenient tools to make account changes.
  5. Estimate Pension Using Retirement Online Calculator
    Most members can use Retirement Online to create benefit estimates based on the most up-to-date information we have on file. You can enter different retirement dates and payment options to see how those choices would affect your benefit.
  6. Use Plan Publication to Learn about Benefits
    Your retirement plan publication is a comprehensive source for information about your benefits.
  7. Pension Calculated Using Highest Earnings
    Your final average earnings (FAE) is another major factor in calculating your NYSLRS pension. When we calculate your pension, we find the set of consecutive years (one, three or five, depending on your tier and retirement plan) when your earnings were highest. 
  8. Request Past Service Credit Before Retirement
    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.
  9. NYSLRS Membership Includes Death and Disability Benefits
    NYSLRS membership provides more than just retirement benefits. If you become seriously ill or injured, you may be eligible for a disability benefit. And, you may also be eligible to leave a beneficiary a death benefit if you die while working for a public employer.
  10. Best-Funded, Best-Managed
    The New York State Common Retirement Fund holds and invests the assets of NYSLRS on behalf of members, retirees and their beneficiaries and continues to be one of the best-funded and best-managed public pension funds in the nation. Comptroller Thomas P. DiNapoli is the administrative head of NYSLRS and trustee of the Common Retirement Fund.

NYSLRS is one of the largest public retirement systems in America, serving more than 1.2 million members, retirees and beneficiaries. Read A Look Inside NYSLRS to learn more about your retirement system.

Transferring Your Membership to NYSLRS

transferring membership

A lot can change in our lives, and sometimes people switch jobs or professions during their career. Perhaps you were a teacher, and you recently began working for New York State. Or maybe you had a job with New York City, and you took a position with a municipality outside of the city. If you are an active member of more than one public retirement system in New York State, you may have the option of transferring that membership to NYSLRS and receiving credit for that service.

Considering Service Credit

Service credit is a factor in calculating a NYSLRS pension benefit, so increasing your service credit will generally increase your pension benefit.

In some cases, transferring membership may not be beneficial. For example, if you are in a retirement plan that allows for retirement after 20 or 25 years of service (regardless of age), your service usually must be in specific job titles to be creditable toward your pension benefit. If you are in one of these plans, find your retirement plan publication to learn what service is creditable.

If you have questions, contact a customer service representative before you apply to transfer a membership. You can message them using our secure contact form.

Transferring Membership

Members who are transferring membership to NYSLRS must:

  • Be on the payroll in a job that is covered by NYSLRS;
  • No longer work in the job that was covered by the other retirement system; and
  • Still be an active member of the other system (off payroll for that job, but your membership in the other system has not been terminated or withdrawn).

To transfer a membership to NYSLRS, you first must submit a transfer request to your other retirement system. When we receive your membership information from the other retirement system, we will compare your date of membership in NYSLRS with your date of membership in the other system. When the transfer is complete, your date of membership will be the earlier of the two dates. If applicable, your tier will change.

If You Need to Transfer to Another System

You can submit an online request to NYSLRS to transfer your membership from NYSLRS to another New York State public retirement system:

  • Sign in to Retirement Online.
  • In the ‘My Account Summary’ section of your Account Homepage, under ‘I want to…,’ click the “Transfer My Membership” button.

Whether you are transferring in or out of NYSLRS, the transfer is effective when we receive your application, and it may be permanent.

You can find more information about transferring membership on our website.

Know Your Benefits: What If I Leave Public Employment

It may not come up during your career, but if you leave public employment before you are eligible to retire, you should know what happens with your NYSLRS membership and benefits. Your options will depend on how many years of service you have. It’s also important to keep your account information up to date. If you remain a member of NYSLRS after you leave public employment, you can regularly review your account information and keep it up to date by using Retirement Online.

What Should I Do if I Leave Public Employment

Find Out If You Are Vested

NYSLRS members are vested when they have five years of service credit. Sign in to your Retirement Online account to see your total estimated service credit.

  • If you have 5 or more years of service when you leave public employment, and you leave public employment before you are eligible to retire, you can receive a vested retirement benefit when you become eligible.
  • If you leave with between five and ten years of service, you can either remain a member and receive a vested retirement benefit when you become eligible or terminate your membership and receive a refund of your contributions.
  • If you leave with more than ten years of service, you cannot withdraw your NYSLRS membership and you can receive a vested retirement benefit when you become eligible and apply.
  • If you leave with less than ten years of service, you can end your membership and receive a refund of your contributions.

Keep Your Contact Information Updated

It’s important to make sure we have your current mailing address, phone number and personal email address, and let us know about any future changes. That way, you won’t miss important information from us, such as your Member Annual Statement.

To update your contact information, sign in to Retirement Online. Go to ‘My Profile Information,’ find your address, phone number or email address under ‘My Profile Information’ and click “update.”

Keep Your Beneficiaries Updated

If you leave public employment, your beneficiaries may still be eligible for a death benefit, so you should review your beneficiary designations periodically. Sign in to Retirement Online, go to the ‘My Account Summary’ area of your Account Homepage and click “View and Update My Beneficiaries.” Your beneficiary changes will be considered filed on the day you submit them.

Repay Any NYSLRS Loans

If you leave public employment, you will no longer be able to pay off your NYSLRS loans by payroll deduction. If you have any outstanding NYSLRS loans, you must make payments directly to NYSLRS at least once every three months and repay your loan within five years of when it was issued, or you will default on the loan. Defaulting on a loan may carry considerable tax consequences: You’ll need to pay ordinary income tax and possibly an additional 10 percent penalty on the taxable portion of the loan. You can make loan payments to NYSLRS via Retirement Online.

You aren’t eligible to take a new NYSLRS loan once you are off the public payroll.

Receiving a Vested Retirement Benefit

If you are vested, once you reach retirement age, you can receive a lifetime pension based on your salary and service from when you were working in public employment. It’s your responsibility to apply for retirement — NYSLRS will not pay out your pension benefit unless you apply for it.

The earliest date you can receive your retirement benefit depends on your tier and retirement system.

  • Tier 1 and 2 members are eligible for a vested retirement benefit as early as the first of the month following your 55th birthday.
  • Tier 3, 4 and 5 members and Employees’ Retirement System (ERS) Tier 6 members are eligible for a vested retirement benefit as early as your 55th birthday.
  • Police and Fire Retirement System (PFRS) Tier 6 members are eligible for a vested retirement benefit on your 63rd birthday.

For most members, however, if you retire before your full retirement age, you would face a permanent early retirement benefit reduction. The full retirement age is 62 for Tier 1 – 5 members, and age 63 for ERS Tier 6 members and off-payroll PFRS Tier 6 members.

Most members can estimate your pension amount using the benefit calculator in Retirement Online. Sign in to your Retirement Online account, go to the ‘My Account Summary’ area of your Account Homepage and click the “Estimate my Pension Benefit” button. You can also apply for your retirement benefit using Retirement Online.

If You Leave Public Employment with Less than Ten Years of Service

With less than ten years of service credit, you can choose to end your membership and request a refund of your contributions. If you withdraw your contributions, however, you will no longer be eligible to receive a pension benefit. You can withdraw by signing in to Retirement Online, going to the ‘My Account Summary’ area of your Account Homepage, and clicking “Withdraw My Membership.”  

You cannot withdraw from NYSLRS once you have ten years of service credit.

(Note: Tier 1 and 2 members and PFRS Tier 3 (Article 11) members covered by a non-contributory retirement plan can make voluntary contributions. These members can withdraw their voluntary contributions without ending their membership. Contact us if you have questions.)

If you have less than five years of service credit (aren’t vested) and don’t withdraw your contributions, they will continue to earn 5 percent interest for seven years. After seven years off the public payroll, your membership ends automatically, and your contributions will be deposited into a non-interest-bearing account until you withdraw them.

For more information, including tax implications of withdrawing your membership, read Life Changes: What If I Leave Public Employment?.

Use Retirement Online for a Pension or Mortgage Verification Letter

For certain business transactions, such as getting a mortgage or housing, you may be asked to verify your NYSLRS benefit or account information. With Retirement Online, you can get your own verification letter in just a couple quick steps.

Use Retirement Online for a Pension or Mortgage Verification Letter

Pension Income Verification Letter for Retirees

As a retiree, you may need a letter verifying your pension income — maybe for housing or as part of an application for the Home Energy Assistance Program (HEAP).

Retirement Online is the fastest way to get a pension verification letter. Sign in to your account and from the ‘I want to…’ section of your Account Homepage, click the “Generate Income Verification Letter” link.

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

Mortgage Verification Letter for Members

Members (not yet retired) can quickly generate a mortgage letter in Retirement Online. Sign in to your account and from your Account Homepage, in the ‘I want to…’ section, click the “Generate Mortgage Verification Letter” link.

The letter will show your account summary, including the current balance of your contributions, and if you have a loan, the date of your last loan and current loan balance.

Note for both retirees and members: You can also request a pension income or mortgage verification letter using our secure contact form. Tell us what information you need the letter to include and be sure to provide your personal identification and contact information when you submit the form. In most cases, we’ll mail you a letter within five to seven business days.

Use Retirement Online

Retirement Online is the fastest and most convenient way to conduct business with NYSLRS. Submitting applications through Retirement Online speeds up the process and enables NYSLRS to serve you more quickly. 

If you need help signing in to your account, these tools and tips may come in handy.

NYSLRS – One Tier at a Time: PFRS Tier 2

When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. This post looks at Tier 2 members of 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.

PFRS has five tiers. Almost half of PFRS members are in Tier 2, which began on July 31, 1973, and ended on June 30, 2009. Most are in special retirement plans that allow for retirement after 20 or 25 years, regardless of age, without penalty.

The special plans that cover most police officers and firefighters fall under Sections 384, 384(f), 384-d, and 384-e of Retirement and Social Security Law. You can sign in to Retirement Online to find your benefit plan, which is listed under ‘My Account Summary.’

PFRS Tier 2

Where to Find PFRS Tier 2 Information

Whether you’re in one of the retirement plans described in this post or another retirement plan, we encourage you to visit our website to find your NYSLRS retirement plan publication. It’s a comprehensive description of the benefits you’re entitled to receive as a PFRS member.

You can check your service credit total and estimate your pension using Retirement Online. Most members can use our online pension calculator to create an estimate based on the salary and service information NYSLRS has on file for them. You can enter different retirement dates to see how your choices would affect your potential benefit.

Members may not be able to use the Retirement Online calculator in certain circumstances, for example, if they have recently transferred a membership to NYSLRS, if they are a Tier 6 member with between five and ten years of service, or if they have worked for multiple employers and were covered by different retirement plans. These members can contact us to request an estimate or use the “Quick Calculator” on our website. The Quick Calculator generates estimates based on information you provide.  

Federal Tax Withholding and Your Pension

If your last federal tax bill was larger than you expected, or if you received a hefty refund, it might be time to review how much federal tax withholding comes out of your NYSLRS pension. If you’re not sure whether you need to adjust your federal withholding, you may want to check with a tax preparer.

Remember, NYSLRS only withholds federal income tax. New York State doesn’t tax your NYSLRS pension, and we can’t withhold for income tax for other states.

federal tax withholding and your pension

New W-4P Federal Tax Withholding Form

The IRS released a new version of their W-4P federal income tax withholding form. For 2023, NYSLRS was required to update our tax withholding form as well.

The new form no longer allows tax filers to adjust their withholding by electing a specific number of withholding allowances. Instead, the W-4P form has fields for increasing or decreasing the amount of withholding, including fields for tax credits and deductions. 

You do not need to submit the new W-4P unless you want to change the amount of your tax withholding.

To Change Your Withholding

Retirement Online makes it fast and convenient to view your current federal withholding information and make changes using our online form that collects the same information as the paper form. You can check your current withholding by signing in to Retirement Online and viewing your most recent pension pay stub. To change your federal tax withholding, click the green “Update My W-4P Tax Information” button on your Account Homepage.

If you update your withholding online by the middle of the month, your changes will generally be applied that month. We’ll notify you by mail or email (depending on your contact preference) when the update has been completed.

Completing the Form

Basic Withholding

Step 1. Select your filing status. If you want your federal withholding to be based only on the benefit amount you receive from NYSLRS, with no adjustments, you can skip steps 2 – 4.

Adjustments to Withholding (Dependents, Tax Credits)

Complete Steps 2 – 4 ONLY if they apply to you.

Step 2. If you have income from a job or more than one pension/annuity, in addition to your NYSLRS pension, or if you’re married filing jointly and your spouse receives income from a job or pension/annuity, you can enter that in Step 2.

Click “View Instructions” or see page 2 of the paper W-4P form for examples that may help you with this step.

Step 3. If you need to claim dependents, you can enter that information in Step 3.

Step 4. If you have other adjustments to make — other income, deductions or extra withholding — you can complete Step 4.

Click “View Instructions” or see page 3 of the paper W-4P form for instructions and a worksheet that may help you with this step.

If you prefer to send in a paper form, you can print, complete and submit our W-4P Withholding Certificate for Pension or Annuity Payments form to update your withholding information, however paper forms take longer to process. Please be sure you are using the new form (revised 12/22), because NYSLRS will no longer accept previous versions of the W‑4P form.

If You Receive More Than One Benefit Payment from NYSLRS

NYSLRS administers two retirement systems — the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS). It is possible to receive more than one benefit from one or both systems — as a retiree, a beneficiary or an ex-spouse who is receiving a benefit under a domestic relations order.

Generally, your withholding is tied to the retirement system. So, if your benefits are from the same system, you only need to submit your withholding information once and your preferences will be applied to all benefit payments you receive from that system. However, if you receive a benefit from both ERS and PFRS, you’ll need to submit a W-4P form for each system.

Your benefit payment pay stub will list whether the payment is from ERS or PFRS.

For More Information

Our Taxes and Your Pension page has additional information about withholding, including 1099-R tax form information, how to submit a paper W-4P form, what to do if you receive more than one benefit payment from NYSLRS and more.

If you need help completing the W-4P form, you can find phone numbers and online resources on the IRS Let Us Help You page.

Please note: Effective January 1, 2023, NYSLRS does not withhold federal income tax from benefits that are not subject to tax reporting.

Popular Blog Posts You May Have Missed

New York Retirement News is dedicated to keeping NYSLRS members and retirees informed about developments that may affect their benefits. In case you missed them, or just want to take another look, here are some of our most popular blog posts from the past year.

popular blog posts
 
  1. Becoming Vested
    Becoming vested is a crucial milestone in your NYSLRS membership. Under legislation enacted in April 2022, Tier 5 and 6 members are now vested after five years of service. Previously, these members needed ten years of service credit to be eligible for a service retirement benefit.

  2. Update Regarding Retiree Earnings Limit
    Normally, most NYSLRS retirees who return to work for a public employer are limited in how much they can earn before their pension would be suspended. The limit is $35,000 per calendar year, however, executive orders from the Governor and legislation temporarily suspended this limit. Read the blog post for current information.

  3. Enhanced Death Benefit for Survivors of COVID-19 Victims
    Survivors of NYSLRS members who contract COVID-19 on the job may be entitled to an enhanced death benefit if the member dies as a result of the disease. This accidental death benefit covers eligible deaths through December 31, 2024.

  4. Find Your Retirement Plan Publication
    Your retirement plan publication is an essential resource that provides comprehensive information about your NYSLRS benefits. It explains how long you’ll need to work to receive a pension, how your benefit is determined, what death and disability benefits may be available and more. Our new tool can help you find your plan publication.

  5. What is a Defined Benefit Plan?
    As a NYSLRS member, you are part of a defined benefit plan, also known as a traditional pension plan. Defined benefit plans are often confused with defined contribution plans, but there are major differences between the two types of plans.

Other Popular Blog Posts

Our blog covers a variety of topics, including supplementing your NYSLRS pension with retirement savings, new retirement online features for retirees and age milestones for retirement planning. We also busted some common retirement myths. Keep reading for more posts on NYSLRS benefits, legislation updates and other retirement information. If you haven’t already subscribed to New York Retirement News, fill out our Subscribe form now to receive an email when we publish new posts.

Thank you for reading New York Retirement News!

Requesting Additional Service Credit

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:

Estimate Your Pension in Retirement Online

Here is an important retirement planning tip. Most members can create their own pension estimate in minutes using Retirement Online.

A 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

How to Estimate Your Pension

First you will need a Retirement Online account. Once you register and sign in, go to the ‘My Account Summary’ section of your Account Homepage and click the ’Estimate my Pension Benefit’ button.

You can enter the date (or age) that you plan to retire. You can use your current annual earnings or add in expected pay increases. You can also include any service credit you plan to purchase. If you add the birthdate for a beneficiary, you’ll see the estimated monthly payment amounts under the pension payment options that provide a benefit for a survivor.

Remember, the pension amounts you’ll see are just an estimate; it is not a guarantee of what you’ll receive when you retire.

Most Tier 2 through 6 members (more than 90 percent of all NYSLRS members) can use the Retirement Online pension calculator. However, some members may not be able to use the Retirement Online calculator because of their circumstances, for example, if they have recently transferred a membership to NYSLRS, or if they are a Tier 6 member with between five and ten years of service. 

The system will notify you if your estimate cannot be completed using the Retirement Online pension calculator. Please contact us to request a pension estimate if you receive this notification. If you are in Tier 2 through 6, you can use the “Quick Calculator“ on the NYSLRS website. The Quick Calculator generates estimates based on information you provide.