In an earlier blog, we explained how to locate your retirement plan booklet. Your retirement plan booklet is an essential resource that you should consult throughout your career. It will help you in planning for your retirement and guide you when your retirement date draws near. Today we discuss what information you’ll find in that booklet and what it means.
About Your Membership
This section has information about your membership and tier status. Look here to find out if your plan requires contributions toward retirement, when you will be eligible for a retirement benefit, and how to withdraw your membership.
Service credit is one of the main factors in determining how much your pension will be. If you work full-time for the State or a participating municipal employer for 12 months, you’ll earn a year of service credit. If you work part-time, your service credit is prorated.
You’ll also find information about how your service credit is calculated, how to purchase credit for previous public employment and military service, how leaves of absence affect service credit, and how sick leave can be used for extra service credit at retirement.
Final Average Salary
Final average salary (FAS) is another major factor in determining the amount of your pension. Your FAS is your highest average earnings during a period of consecutive years. This can be three or five years, depending on your tier.
This section describes what types of payments are used in calculating your FAS and any limitations that may apply.
Service Retirement Benefits
This section describes your retirement eligibility and how your benefit is calculated. If you have questions about how much your pension will be, this is an important section of your retirement plan booklet to read through.
Choosing a Pension Payment Option
There are several ways you can collect your pension. Some payment options, in exchange for a reduction in your monthly payment, will allow you to provide for your spouse or other beneficiary after you die. When reading through this section, consider each payment option carefully, as you’ll only have a limited time to change it after you retire.
Items That May Affect Your Pension
This section describes different factors that can change the amount of your pension. For example, if you retire with an outstanding loan, your pension will be permanently reduced. Also, if you get a divorce, your ex-spouse may be entitled to a portion of your benefit.
A Cost of Living Adjustment (COLA), on the other hand, could increase your benefit once you become eligible.
Vested Retirement Benefits
If you leave public employment before retirement age, but have met the minimum service requirement to receive a pension, you can apply for a vested retirement benefit when you become eligible.
Disability and Death Benefits
Your NYSLRS benefits include more than a pension. If you are no longer able to perform your job because of a medical condition, you may be eligible for a disability retirement. If you die before retirement, your survivors may be eligible for a death benefit.
Receiving Your Benefits
Before you can receive a retirement benefit, you must file the appropriate form with the Office of the State Comptroller. Here you’ll learn where to find the form and what deadlines apply.
Where to Find Your Retirement Plan Booklet
Look for your retirement plan booklet on the Publications page on our website.