Tag Archives: service retirement

Becoming Vested

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Becoming vested is a crucial milestone in your NYSLRS membership.

You become vested after you earn enough years of service credit. Once you’re vested, you have earned the right to receive a retirement benefit, even if you leave public employment before retirement.

Legislation Changed Vesting Requirements for Tier 5 and 6 Members

As of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be vested. This affects members of both the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS). Previously, Tier 5 and 6 members needed ten years of service to be eligible for a service retirement benefit (the new legislation does not change eligibility for disability retirement benefits that are established by your retirement plan).

becoming vested - New Legislation Changes Requirements for Tier 5 and 6 Members

You can sign in to your Retirement Online account to view your total estimated service credit and vesting status.

Tier 5 members with five or more years of service can estimate their pension benefit in Retirement Online. Tier 6 members with between five and ten years of service credit can contact us to request a pension estimate.

If you are a Tier 5 or 6 member with five or more years of service and you meet the minimum age requirements for your retirement plan, you can apply for a service retirement benefit if you wish. Most NYSLRS members are eligible to collect a pension as early as age 55, but, depending on your tier and retirement plan, benefits may be reduced if you retire before your full retirement age.

This legislation did not change Tier 5 or 6 benefit rules such as how long you must contribute, your pension benefit calculation, your full retirement age, reductions to retire early or the cost to purchase previous service. However, additional new legislation may affect contribution rates for some Tier 6 members.

Tier 5 and 6 members who left public employment with five or more years of service and did not withdraw their membership are now considered to be vested.

Tier 5 and 6 members who leave public employment with more than five but less than ten years of service as of April 9, 2022, now have the option to either apply for a retirement benefit once you reach retirement age or withdraw your contributions. You cannot withdraw your contributions once you have ten years of service. As a reminder, once you withdraw your contributions, you end your membership with NYSLRS and are no longer eligible for a retirement benefit.

If you were a Tier 5 or 6 member and were off the payroll for more than seven years prior to April 9, 2022, your membership is considered withdrawn and terminated. You would need to return to payroll and reinstate your withdrawn membership in order to be eligible for five-year vesting.

All Members — When Will I Be Vested?

NYSLRS members in Tier 2, 3, 4, 5 and 6 need five years of service credit to be vested.

If you work part-time, it will take you longer to become vested. For example, if you work half-time, you earn six months of credit toward vesting for each year on the job.

If you purchase credit for previous service, that credit can be used toward vesting.

Vesting is automatic. You do not need to file any paperwork to become vested.

Retirement Online Makes Applying for Retirement Fast, Easy

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You can file for a service retirement benefit using Retirement Online. This feature makes applying for retirement faster and easier than ever before. If you don’t already have an account, sign up today.

applying for retirement

File for a Service Retirement Online

After signing in to your Retirement Online account, scroll down to the ‘My Account Summary.’ On the right, under the heading ‘I want to…,’ click the green “Apply for Retirement” button.

From there, you’ll go through a series of screens where you’ll be able to:

  • Choose a retirement date;
  • Get an estimate of your pension and the payment options available to you;
  • Select a payment option (many provide a continuing benefit for a beneficiary after you die);
  • Sign up for direct deposit; and
  • Attach required documents, such as proof of date of birth.

A big advantage of filing for retirement online is that you do not have to get anything notarized.

After you click the “Submit” button, it is important that you do not close your browser until you receive a confirmation message that states your retirement application has been successfully submitted.

Filing for Service Retirement by Mail

You can still print an Application for Service Retirement and pension payment option election form and mail them to NYSLRS. If you mail the application, we recommend “certified mail, return receipt requested.” When we receive the form, the postmark date will serve as the filing date.

If you use regular mail, the filing date is the date we receive it. However, if you were to die after your application is mailed, but before we receive it, a legible postmark will serve as a filing date. (If you mail it from a post office, you can ask for a hand cancellation, which may help ensure the postmark is legible.)

If you plan to mail your application, you may want to read our blog post, Your Checklist to Apply for Retirement.

For More Details, Read Your Retirement Plan Booklet

Your service and disability retirement benefits and death benefits are based on your tier, plan, service credit, and other factors. For details about your available benefits, please read your retirement plan booklet, available on our Publications page, or you can call our Contact Center at 866-805-0990 if you have questions.

15-Day Notice for Retirement Waived During COVID-19 Emergency

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The 15-day waiting period for a NYSLRS member’s retirement to take effect has been temporarily waived by a governor’s executive order. The waiver, which was requested by Comptroller DiNapoli, is designed to protect families who may lose a loved one to COVID-19 before a member’s retirement is official.

Under the waiver, if you plan on filing for retirement through July 5, 2021, you can choose a date of retirement less than 15 days away.

15-day notice waived

Members seeking to service retire should also choose a pension payment option. This is especially important if you wish to name a beneficiary to receive a pension benefit in the event of your death.

Eligible members can file for retirement, choose a date of retirement as early as the next day, and upload retirement-related documents using Retirement Online.

If you choose to file a paper retirement application, you can choose a specific retirement date, or enter “ASAP” and your date of retirement will be the day after your filing date. Find more information about filing for retirement (online or by mail) in our recent blog post, Retirement Online Makes Applying for Retirement Fast, Easy.

A member may withdraw their service retirement application up until the day before they retire.

The waiver will also be effective for members who filed after March 7, 2020 and died due to COVID-19. If these members selected a pension payment option that provides a continuing pension benefit for a beneficiary after their death, and they died of COVID-19, their beneficiary will receive the monthly benefit under the pension payment option that the member chose.

“Many government workers are battling the coronavirus in their communities every day,” New York State Comptroller Thomas P. DiNapoli said. “God forbid something should happen to them before their retirement becomes effective. Waiving the waiting period after filing for service retirement benefits ensures their families will get the benefits that were intended for them. My thanks to Governor Cuomo for acting on our request and taking steps to protect our heroic state and local workers and their families in these tough times.”

The executive order waives the legal requirement that a NYSLRS member’s retirement application be received by the Office of the State Comptroller at least 15 days before their retirement date.

To be eligible for a service retirement benefit, a vested NYSLRS member must be at least 55 years old, unless they are in a special plan that allows retirement after 20 or 25 years regardless of age. For details about NYSLRS service retirement benefits and death benefits, please check your retirement plan booklet, which you can find on our Publications page.

Members who are not yet eligible for a service retirement benefit may want to read our recent blog about applying for a disability retirement benefit.