During this time of crisis, it’s important to be on the alert for those who would attempt to defraud you or your family. Here are some consumer warnings and safety tips from the Federal Trade Commission:
Ignore offers for vaccinations and home test kits. Scammers are selling products to treat or prevent COVID-19 without proof that they work.
Be wary of ads for test kits. Most test kits being advertised have not been approved by the FDA, and aren’t necessarily accurate.
Hang up on robocalls. Scammers are using illegal robocalls to pitch everything from low-priced health insurance to work-at-home schemes.
Beware of emails claiming to be from the Centers for Disease Control (CDC) or the World Health Organization (WHO).
Do your homework when it comes to donations. Never donate in cash, by gift card or by wiring money.
Reliable Sources of COVID-19 Information
Only rely on trusted sources for information about COVID-19. Don’t click on links from sources you don’t know. Here are some good online sources:
If you are a victim of fraud, the New York Department of State’s Division of Consumer Protection may be able to help. You can call their Consumer Helpline at 1-800-697-1220 or visit their website.
The National Center for Disaster Fraud, which is part of the U.S. Department of Justice, is the federal agency responsible for investigating and prosecuting fraud schemes related to natural and man-made disasters. Call 1-866-720-5721.
You can report allegations of fraud involving New York State taxpayer money to the Office of the New York State Comptroller. Call 1-888-672-4555 or report government fraud online.
Passwords may be used indefinitely as long as they’re strong and have not been compromised. Obviously, if you have an account with a company that just had a data breach, you’ll want to change that password.
Other Ideas on Secure Passwords
Changing passwords every 30, 60 or 90 days was recommended for thwarting hackers, but some security experts now question that tactic. Changing passwords on a regular schedule may have little security value and can lead to bad habits. Research has shown that people tend to make only minor changes when updating their passwords or create weak passwords that are easier for them to memorize. You’re better off creating a strong password, memorizing it and holding on to it.
While NIST has changed some of its guidelines, some of the old ones still apply. Don’t share your secure passwords with anyone, or leave them on sticky notes by your computer. Create unique passwords for important accounts, such as your bank account and your email, and avoid bad passwords such as “password,” “12345678,” “qwerty” and “iloveyou.”
Most members of the New York State and Local Retirement System (NYSLRS) contribute a percentage of their earnings toward their pensions. For Tier 6 members, that percentage, or contribution rate, can vary from year to year. If you joined NYSLRS on or after April 1, 2012, you are in Tier 6.
When Tier 6 Contribution Rates are Determined
Tier 6 contribution rates are calculated annually. New rates become effective each year on April 1, the beginning of the State’s fiscal year. Once your contribution rate is set for a fiscal year, it will not change for the rest of that fiscal year. However, depending on your earnings, it may change the following year.
How Your Tier 6 Contribution Rate is Calculated
As a Tier 6 member, your contribution rate is based on how much you earn. Changes in your earnings may result in changes to your contribution rate.
For the first three years as a NYSLRS member, your contribution rate is based on an estimated annual wage we receive from your employer. After three years, the rate is based on what you actually earned two years prior. The minimum contribution rate is 3 percent of your earnings, and the maximum is 6 percent.
The percentage you contribute toward your pension while you work does not affect the pension amount you may receive in retirement. Your NYSLRS pension is a lifetime benefit based on your retirement plan, years of service credit and final average salary. You can learn more about your pension by reading your plan booklet on our Publications page. For help finding the right plan book, read our blog post, Knowing Your Retirement Plan is the Key to Retirement Planning. For more information about ERS Tier 6 memberships, read our blog post, What to Know About ERS Tier 6.
We continue to receive reports of NYSLRS members who have become ill, or seriously ill, as a result of COVID-19. It is vitally important that these members, and their loved ones, be aware of the provisions contained in a NYSLRS Power of Attorney.
NYSLRS provides a Special Durable Power of Attorney form that is specific to retirement transactions and meets all New York State legal requirements. It can be filed with NYSLRS at any time so the designated agent can act immediately in case of emergency, hospitalization or unexpected illness. There’s no need to wait until something happens to file a NYSLRS POA form.
A power of attorney (POA) allows a person to designate someone else to act on their behalf. The designated person, referred to as an “agent,” could be a spouse, another family member or a trusted friend.
A person can designate more than one person as an agent, and can decide if those agents act together or separately. In addition to an agent or agents, a person may designate “successor agents” to act on an individual’s behalf if the person designated as the “primary” agent is unable or unwilling to serve. Successor agents can be named using the “Modifications” section (g) of the POA.
Why is a NYSLRS POA Important?
Normally, NYSLRS won’t release benefit information to anyone without your permission — even to a spouse. With a POA on file, we would be able to discuss your benefits and conduct business with the agent you appointed. This could be especially important now as we deal with the coronavirus pandemic. If you suddenly become ill and are unable to contact us personally, your agent would be able to take care of your retirement needs for you.
What Can Agents Do?
Agents can file applications and forms, such as service or disability retirement applications. They can get account-specific benefit information, request copies of retirement documents, update addresses or phone numbers or take out loans. For retirees, agents can change the amount withheld from pensions for taxes.
It’s important to note that the NYSLRS POA form only covers Retirement System transactions. It does not authorize an agent to make health care decisions or changes to a Deferred Compensation plan.
If you use the NYSLRS POA form, and your agent(s) or successor agent(s) is your spouse, domestic partner, parent or child, they have “self-gifting authority.” That means they can direct deposit money into a joint bank account you have with them, designate themselves as a beneficiary to your pension benefits, and/or choose a retirement payment option that provides for a beneficiary after your death.
If your agent(s) or successor agent(s) is not your spouse, domestic partner, parent or child, they do not automatically have “self-gifting” authority, which means they cannot name themselves as a beneficiary or direct deposit money into a joint bank account with their name on it. If you wish to give an agent(s) or successor agent(s) ”self-gifting” authority, you should specifically indicate so in section (g) “Modifications” of the POA. In that section you should identify your agent(s) or successor agent(s) by name and state the specific authority granted to them.
Please note only biological or legally adopted children are considered your “child” for NYSLRS POA purposes. All other children must be granted specific authority in section (g) “Modifications.”
How to Submit a NYSLRS POA Form
If your decision to submit a NYSLRS POA is related to the COVID-19 emergency, please note that on the form in section (g) “Modifications.” If you file a retirement application, consider submitting a NYSLRS POA with your application.
You can scan and email a copy of your POA to NYSLRS using the secure email form on our website.
You can also mail your POA (original or photocopy). You may wish to mail it certified mail, return-receipt requested, so that you know when NYSLRS receives it. The address is:
NYSLRS 110 State Street Albany, NY 12244-0001.
Find Out More
A power of attorney is a powerful document. Once you appoint someone, that person may act on your behalf with or without your consent. We strongly urge you to consult an attorney before you execute this document.
During this time of economic uncertainty, you may be considering how you can lower your NYSLRS loan payment. We understand your concerns and want to provide you with information that can help.
How to Lower Your Loan Payment
You may be able to lower your payment amount as long as you still pay the minimum amount required to repay your loan. There are two ways to request a lower loan payment:
Manage Your Loan Payment with Retirement Online Once you sign in to your account, go to the My Account Summary section and click “Manage My Loans.” You’ll be able to check your payoff balance and minimum payment (payroll deduction) amount as well as change your payment amount.
Send a Loan Payment Change Form Fill out our Loan Payment Change form (RS5521) and send it to:
NYSLRS 110 State Street Albany, NY 12244
NYSLRS Loan Payments are Set by Law
Loan payments must be paid:
At least quarterly (NYSLRS will calculate your minimum payment when you take a loan); and
In a sufficient enough amount to repay the loan within five years from the date it was issued.
These are requirements established by both NYS Retirement & Social Security Law (RSSL) and the Internal Revenue Service (IRS). If you are on payroll, your loan will be repaid through payroll deductions.
Can Loan Payments be Deferred?
In certain instances, you may be eligible for a deferment of your loan payment.
If you are on an authorized leave of absence with your employer, the IRS allows for the suspension of loan payments for up to one year from the date your leave began or until you return to the payroll (whichever occurs first). To receive this deferment, your employer must send us a fax (518-486-9877) on their letterhead that indicates the date your leave began and when they expect it will end.
It’s important to note that if you defer your loan payments during an authorized leave of absence, your payments will need to be recalculated and increased upon your return. This will ensure your loan will be paid off within the five-year period.
Active military personnel may also be able to defer their loan payments. The five-year repayment period for these members can be extended, however your loan balance will continue to accrue interest and you must resume payments once you end active duty. Visit our Loans page for more information.
What Happens If You Go Off Payroll?
If you go off payroll, to avoid your loan going into default, you must make minimum payments at least quarterly and repay the loan within five years. To avoid a default, contact us as soon as you leave public employment, so we can tell you the exact amount you need to pay. If you are in danger of defaulting on your loan, we will notify you. Retirement Online is the easiest way to make loan payments if you are off payroll. Read the Make Lump Sum Payments information on our Loans page for details.
In late January, NYSLRS mailed tax information to retirees (and some members and beneficiaries) so they can file their taxes.
NYSLRS pensions are not subject to New York State or local income taxes, but in most cases they are subject to federal taxes. In January, we mailed 1099-R tax forms to almost 500,000 retirees who receive taxable benefits. We also mailed 1099-Rs to beneficiaries who received taxable income from NYSLRS in 2019, members who have taken taxable NYSLRS loans or have defaulted on their loans, and those who ended their membership and withdrew their contributions in 2019.
A 1099-R shows:
The total benefit paid to you in a calendar year.
The taxable amount of your benefit.
The amount of taxes withheld from your benefit.
If you didn’t get your 1099-R, you can request a reprint. This year, reprints will be available for calendar years 2017, 2018 and 2019. Your 1099-R will be mailed to the address we have on file for you. Sign in to Retirement Online to check or update your mailing address before requesting a reprint.
If you have questions about the information on the form, we feature an interactive 1099-R tutorial on our website. It walks you through a sample 1099-R and offers a short explanation of specific boxes on the form.
Changing Your Federal Tax Withholdings
If you need to make changes to your federal withholding, you can send us a W-4P form at any time. You can use this form to change your withholding status, increase or decrease the number of your exemptions, or request that an additional amount be withheld.
Please note: If you change your withholding, it may take a few months before the changes are reflected in your pension payments. You can look up your current payment breakdown, including tax withholding, using Retirement Online.
As an Employees’ Retirement
System (ERS) Tier 6 member, your years of service are critical to your
benefits. As time goes by, and you earn service credit, you’ll reach a number
of career milestones. These milestones are points where you become eligible for
certain benefits or your existing benefits improve. Understanding these milestones
will help you better plan your career and retirement.
In ERS Tier 6, you reach your first milestone on your first day of membership. This milestone covers you for certain job-related death and disability benefits. (You can learn more about them in your Tier 6 retirement plan booklet.)
10 & 20 Years Make a Big Difference
For all NYSLRS members, there is one critical milestone: becoming vested. Being vested means that you have earned the right to a pension, even if you leave public employment before retirement age. ERS Tier 6 members become vested after they earn 10 years of service credit.
For most ERS Tier 6 members, another big milestone is the 20-year mark, when your retirement benefit improves significantly. If you retire with less than 20 years of service, you earn 1.66 percent of your final average salary (FAS) for each year of service. At 20 years, you receive 35% of your FAS. After 20 years, you’ll earn an additional 2 percent of your FAS for each year of service beyond 20.
ERS Tier 6 Special Plans
For ERS Tier 6 members in special plans, such as corrections officers, many of the milestones are the same. For example, you will become vested with 10 years of service credit.
But there are also major differences. Most importantly, correction officers in the special 25-year plan can retire after 25 years regardless of age. You can find more information in your retirement plan booklet.
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.
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
Choosing a Pension Payment
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
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
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.
If you became an Employees’ Retirement System (ERS) Tier 5 member when the tier began in 2010, you’ve crossed one of many milestones in your public service career. You are now vested, which means you are guaranteed a NYSLRS pension even if you leave public employment at a later date.
So, what are milestones, and how do they affect NYSLRS members
throughout their career?
Why Milestones Matter
As a NYSLRS member, you’ll cross a series of thresholds throughout
your career. These member milestones occur when you earn a certain amount of service credit. Because these milestones affect how your
pension will be calculated, a better understanding of them will help you plan
You can find
these milestones on the Membership Milestones page and in your retirement plan booklet. Most
members ERS Tier 5 members will retire under the Article 15 retirement plan. (This booklet
does not cover ERS Tier 5 members in special plans, such as deputy sheriffs and
state corrections officers, but they can also find information on the
Membership Milestones page.)
Milestones for Tier 5
The day you joined NYSLRS, you were automatically covered
by certain job-related death and disability benefits. This is the first
milestone for ERS Tier 5 members. After your first year of service, you became
eligible to borrow from your retirement contributions, and after two years you
became eligible to purchase credit for previous public service.
After becoming vested at ten years, the next big
milestone is 20 years, when your retirement benefit improves. If you retire
with less 20 years of service, your pension will equal 1.66 percent of your
final average salary (FAS) for each year of service. But with 20 to 30
years of service credit, your benefit will equal 2 percent of your FAS,
multiplied by your years of service.
For each year of service beyond 30 years, you will receive
1.5 percent of FAS.
Information is the key to being fully prepared for your retirement years. The single most important thing you can do to achieve this goal is to know what NYSLRS retirement plan you’re in. Once you know that, the next thing you must do is understand the benefits your plan provides.
Your retirement plan booklet covers things like how long you’ll need to work in order to receive a pension, how your pension amount is determined, and what kind of death and disability benefits may be available to you. You can find a copy of your plan booklet on our Publications page.
But here’s the challenge: NYSLRS manages 335 retirement plan combinations, which are described in 51 plan booklets. How do you figure out which is yours? The information below should help.
Two Key Questions
To get started, you need to answer two questions.
Question One: Which retirement system are you in? NYSLRS is made up of two different systems:
The Employees’ Retirement System (ERS), which is for public employees in non-teaching positions. It also includes some law enforcement personnel, such as correction officers, sheriffs and sheriffs’ deputies.
The Police and Fire Retirement System (PFRS), which is for paid firefighters and police officers, including SUNY police, State Park police, Encon officers and State Forest Rangers.
Question Two: Which tier are you in? There are six tiers in ERS and five tiers in PFRS. Your tier, based on when you joined NYSLRS, determines such things as when you become eligible for benefits and how much you contribute. You can find your tier by checking your Account Information in Retirement Online or by checking the What Tier Are You In? page on the NYSLRS website.
Know Your Retirement Plan Number
For many members, knowing your retirement system and tier are enough. But for other members, especially those in law enforcement, it may help to have your retirement plan number as well. The plan number indicates the section of Retirement and Social Security Law the plan is based on. For example, Plan A15 indicates that you are covered by Article 15. You can find your plan number in the Account Information section of Retirement Online.
Roughly three-quarters of all ERS members are covered by Article 15; they just need to know their tier to find the correct booklet.
If you are still unsure which retirement plan booklet covers your benefits, you can send us an email using our secure contact form, or you can ask your employer.
Take the Time to Understand Your Retirement Plan
It cannot be stated enough how important it is to read your plan publication to learn all you can about your benefits. It is the key to solid retirement planning. Remember, no one has a more vested stake in your retirement than you do.