Tag Archives: NYSLRS

Public Service Recognition Week

This week we proudly celebrate the more than 600,000 members and 400,000 retirees of the New York State and Local Retirement System (NYSLRS) for their service to the people of New York State.

A Brief History of Public Service Recognition Week

Public Service Recognition Week was created in 1985 to honor the men and women who serve our nation as federal, state, county and local government employees. They dedicate their careers — and sometimes their lives — to keep others safe and provide for the common good. Their work makes life in our communities better.

Congress officially designated the first week of May as Public Service Recognition Week. This year, it is being celebrated May 6 through May 12.

The Public Servants of NYSLRS

NYSLRS is full of stories about State workers and municipal employees finding value and meaning in the work they do, especially when they help other New Yorkers. The NYSLRS members that work here in the Office of the State Comptroller (OSC) are no exception.

For example, there’s Dan Acquilano, who works in the Local Government and School Accountability division of the Comptroller’s Office. He travels across the state teaching municipalities how to manage their financial operations. His efforts have helped many municipalities and school districts manage their way out of financial distress. Or, there’s Derrick Senior, who began his career as a mental health counselor. But, for the past 13 years, he’s helped keep OSC’s technology up and running at the CIO-Service Delivery Department. And, there’s Stacy Marano. She leads a team of attorneys, investigators and forensic auditors to ensure entities receiving state money – vendors, politicians, municipalities and state agencies – don’t misuse public funds. Her work helps law enforcement develop cases and root out fraud.

These are stories you may not hear about, but their work and the efforts of thousands of other public servants help make New York State a better place to live.

Public Service week collage

View more NYSLRS proud public servants

Whether they are protecting our communities, fighting fires, clearing our roads after snowstorms or simply helping government function better, NYSLRS members deliver the critical resources and services many New Yorkers depend on. Even outside of work, many NYSLRS members and retirees give back to our state by serving their communities as volunteers and supporters of charitable causes.

Comptroller DiNapoli’s Faith in Public Service

New York State Comptroller Thomas P. DiNapoli is the administrator of NYSLRS and trustee of the Common Retirement Fund. His public service career began when he was elected as a trustee to the Mineola Board of Education at the age of 18, making him the first 18-year-old in New York State to hold public office. Comptroller DiNapoli is understandably proud about the career path he has chosen, and he often speaks about the contributions that New York’s public employees make, not just as engaged citizens, but as individuals who bring value to the communities where they live.

PFRS Membership Milestones

The Police and Fire Retirement System (PFRS) covers more than 35,000 police officers and firefighters across New York State.

As a PFRS member, you’ll pass a series of important milestones throughout your career. Knowing and understanding these milestones will help you better plan for your financial future.

Some milestones are common to most Police and Fire members; others are shared by members in a particular tier. For example, Tier 2 and 3 members must have five years of service credit to be vested (eligible for a pension benefit), while Tier 5 and 6 members need 10 years.

This graph shows common PFRS milestones:

Most PFRS members are in special plans that allow them to retire with full benefits, regardless of age, after 20 or 25 years of service. Your specific milestones, along with your pension calculation, are determined by your retirement plan, so it is important for you to familiarize yourself with the details of your own plan. You can find plan information on our Publications page. Not sure which one is yours? Your retirement plan is listed on your Member Annual Statement, which is provided to you each summer, or you can ask your employer.

Start Saving for Retirement Now

More than 40 percent of Millennials are not saving for retirement at all, according to one recent study.

If you’re in your 20s or 30s and have nothing saved for retirement, now is a good time to get started. Even if you can’t save much, starting early gives your money time to grow. And getting started is probably easier than you think.

A simple savings plan

Let’s say you put $10 per week into a retirement account. That’s just $2 per workday. Let’s also say you invest your savings in a stock fund, which yields an average annual return of 7 percent, compounded annually. (That’s actually pretty conservative based on past market performance.) After 30 years, you’d have $50,000. Not bad for a couple bucks a day.

Of course, you’ll want to save more over the course of your career, but the important thing is getting started early. That’s because your future investment returns will be based not just on the money you invest, but on the returns on those investments as well.

Deferred Compensation – an easy way to save

For public employees, New York State Deferred Compensation Plan is a good place to start.

Deferred Comp is a 457(b) retirement plan created for New York State employees and employees of participating agencies. (It is not affiliated with NYSLRS.) If you are a NYSLRS member but do not work for New York State, check with your employer to see if you are eligible.

Deferred Comp makes withdrawals directly from your paycheck, so once you sign up, you don’t even have to think about it. They also offer packaged investment plans, so you don’t have to be a financial wizard to participate, or you can create a customized investment plan.

The important thing is to get started. Then watch your money grow.

Retirement Planning vs. Reality

As we sit down to plan our retirement, we ask ourselves some tough questions: Am I saving enough? Am I ready for the lifestyle change? Do I need to tighten my budget now or will I need to in retirement?

These questions are all aimed at helping us answer one central question: When is the right time to retire?

According to recent Gallup research, there is often a significant gap between the age we plan to retire and how old we are when we actually do.

Retirement Survey

Gallup’s April 2016 survey asked workers, “At what age do you expect to retire?” And, it asked retirees, “At what age did you retire?”

On average, there is a significant gap between the percent of workers who plan to retire within a certain age range and the percent of retirees who actually did. For example, 31 percent of workers intend to retire at age 68 or older. However, only 12 percent of retirees actually do. And, only 23 percent of workers think they’ll retire before age 62. Nevertheless, 36 percent of retirees ended up doing so. On average, Americans expect to retire at age 66, but actually retire at age 61.  That means a significant number of us may be underestimating how many years our retirement savings need to last.

Age and Your NYSLRS Pension

Regular readers may recall that most NYSLRS retirement plans have a minimum age requirement to retire with a full benefit. However, once you are vested, you are generally able to retire as early as age 55.

An early retirement may come with a significant — and permanent — benefit reduction, though. So, if you plan to retire with a full benefit at age 62 (or 63 for Tier 6 members), but end up retiring early instead, your pension will be less than you planned.

Retirement Planning

NYSLRS has several resources to help you make your retirement plans and stay on target. We distribute your Member Annual Statement (MAS) between May and July. It contains valuable information to help you understand your benefits and plan for the future, including: your earnings, your service credit total and up to three pension projections based on your specific details. You can also check out our Preparing for Retirement — A Checklist and 5 Step Plan for Retirement pages on our website. Our Life Changes: How Do I Prepare to Retire? publication offers a step–by–step guide to the retirement process, a list of available resources and some key factors to consider as you plan.

If you have any questions about your retirement plan, we’re glad to help. Email us using our secure email form, which allows us to safely contact you about your personal account information.

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.

Will Your Retirement Age Affect Your Benefit?

Only you can decide when it’s time to retire, but you should know that your age at retirement can affect your pension benefit. Some New York State and Local Retirement System (NYSLRS) members are in special plans that allow for retirement after a certain number of years, regardless of age (for example, police officers, firefighters, correction officers or sheriffs). But for most members, you can retire with full benefits at the age specified by your plan. Most members can choose to retire as early as age 55, but if you do, you may receive a permanently reduced pension benefit.

Full Retirement Ages

Most retirement plans have an age requirement to retire with full benefits. For Employees’ Retirement System (ERS) members in Tiers 2, 3, 4 and 5 and Police and Fire Retirement System (PFRS) members in Tiers 2, 3, 5 and 6, the full retirement age is 62. For ERS Tier 6 members, it’s 63. PFRS Tier 6 members who have left their PFRS employer are eligible for their benefits at age 63.

Service Credit Exceptions

In some retirement plans, members with a certain amount of service credit can retire at age 55 without being subject to benefit reductions. Benefit reductions don’t apply to ERS Tier 2, 3 or 4 members who have 30 or more years of service credit and Tier 2, 3, 4 and 5 Uniformed Court Officers and Peace Officers employed by the Unified Court System who have 30 or more years of service.

Benefit Reductions

Retirement benefits for all other ERS Tier 5 and Tier 6 members, and PFRS Tier 2, 3, 5 and 6 members not in a special 20- or 25-year plan, will be reduced for early retirement — even if they have 30 years of service credit.

These benefit reductions are prorated by month, so the closer you are to your full retirement age, the less the reduction will be. Once you retire with a reduced benefit, that reduction is permanent.

Here’s a look at how reductions break down by membership tier:

Contact us if you have any questions about benefit reductions or any other retirement-related topics. Please review your retirement plan booklet for a full description of the benefits you’re entitled to as well as any reductions and restrictions.

Divorce and Your Other Benefits

We’ve written here before about how divorce affects your NYSLRS pension, what a DRO is and why it’s required. However, NYSLRS members have other benefits besides their pensions. Divorce and DROs may affect some of them as well.

Ordinary Death Benefit

As with your pension, a DRO may direct you to designate your ex-spouse as a beneficiary for some portion of your ordinary death benefit. You should file the DRO with NYSLRS as soon as it’s officially accepted by the court.  We will prepare a custom beneficiary form that complies with the DRO.  Also be sure to choose additional beneficiaries for any remainder of the benefit and submit your changes to NYSLRS.

Post-Retirement Ordinary Death Benefit

Most Tier 2, 3, 4 or 5 members of the Employees Retirement System (ERS) are covered by a post-retirement ordinary death benefit. A DRO may direct you to designate your ex-spouse as a beneficiary for some portion of the benefit. Similarly, you should file the DRO with NYSLRS as soon as it’s officially accepted by the court, and be sure to contact us to choose additional beneficiaries as allowed by the DRO.

Loans

NYSLRS members who meet eligibility requirements can borrow a certain percentage of their contribution balance. DROs may be written to prohibit members from taking future loans.

Outstanding loan balances at retirement permanently reduce retirees’ pension benefits. As a result, unless a DRO specifically provides that the ex-spouse’s share of the pension be calculated without reference to outstanding loans, the ex-spouse’s portion will also be reduced if a NYSLRS loan is not paid off before retirement.

Refunds

Occasionally, NYSLRS may refund a member’s contributions because of a tier reinstatement, membership withdrawal, membership transfer or excess contributions. If the member is divorced and NYSLRS has a DRO on file, the DRO will determine whether a portion of the refund must go to the ex-spouse. Generally, if the DRO doesn’t mention a contributions refund, the member receives the full amount.

NOTE: A divorce, annulment or judicial separation revokes a member’s prior designation of a former spouse as beneficiary of certain death benefits and retirement options, except as provided by the express terms of the judgment or decree, or a DRO. So, if you have gone through a divorce, annulment or judicial separation and you do NOT have a DRO, and you wish to retain your former spouse as a beneficiary, you must resubmit your beneficiary designation to NYSLRS. The easiest way to do this is by using Retirement Online, our secure, self-service web application. You can also submit a Designation of Beneficiary form.

Tier 6 FAS Limits (ERS)

 

 

First, a year of earnings in the FAS period can’t exceed the average of the previous four year’s earnings by more than 10 percent. Anything beyond that will not be included in the pension calculation.

Additionally, several types of payments will not be part of the FAS calculation for ERS Tier 6 members:

  • Lump-sum vacation pay,
  • Wages from more than two employers,
  • Payment for unused sick leave,
  • Payments for working during a vacation,
  • Any payments that cause your annual salary to exceed that of the Governor (currently $179,000),
  • Termination pay,
  • Payments made in anticipation of retirement,
  • Lump-sum payments for deferred compensation and
  • Any payments made for time not worked.

Generally speaking, here’s what an ERS Tier 6 FAS will include: regular salary, holiday pay, overtime pay (regular and noncompensatory) earned in the FAS period and up to one longevity payment per year, if earned in the FAS period.

Overtime Limits

While overtime pay generally is part of an ERS Tier 6 FAS, the amount that can be included is limited. The limit is adjusted for inflation each year based on the change in the Consumer Price Index over the one-year period ending September 30 of the previous year. Under a new law, beginning January 1, 2018, the Tier 6 limit will be updated on a calendar year basis instead of on a fiscal year basis.

The 2018 calendar year overtime limit for Tier 6 members is $16,406.

For more information about the Tier 6 FAS, find your retirement plan booklet on our Publications page, or check out our Final Average Salary and Overtime Limits for Tier 6 pages.

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.

Transferring Your Membership

People make a lot of moves during their working lives. New towns, new jobs and, in some cases, new retirement systems.

Perhaps you were a teacher, but recently began working for New York State. Or maybe you had a job with New York City, but took a position with a municipality outside of the city. If you’ve recently joined NYSLRS and are still an active member of another public retirement system in New York State, you may be able to transfer that membership to NYSLRS.

Transferring to NYSLRS

To request a transfer to NYSLRS, contact the other system while you are still an active or vested member of that system. If you are still employed in a position covered by the other retirement system, or your membership in the other system has been terminated or withdrawn, you are not eligible to transfer.

When we receive your request to transfer 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 completed, your date of membership will be the earlier of the two dates. If applicable, your tier will also change.

Transferring from NYSLRS to Another Retirement System

To transfer from NYSLRS to another public pension system in New York State, you must complete and submit an Application for Transfer of Membership (RS5223).

Under certain circumstances, it may not be beneficial to transfer your membership to another retirement system. If you have any questions concerning your transfer, or if you are covered by a special plan, you should contact our Call Center toll-free at 1-866-805-0990 or 518-474-7736 in the Albany, New York area before completing the application.

Whether you are transferring in or out of NYSLRS, the transfer is effective upon receipt of your application and may be irrevocable.

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