Tag Archives: New York State & Local Retirement System

Protecting Yourself from Scams

From fraudulent mobile apps to phony text messages, imposters continue to find new ways to try to steal your money or personal data. While it can be alarming when they impersonate a government agency, such as NYSLRS or the Social Security Administration, you can learn to recognize and protect yourself from scams.

protecting yourself from scams

How Scams Work

Imposters pretend to be an agency or organization you already know to gain your trust. They use similar logos or imagery in correspondence. They may contact you from an email address that mimics — but isn’t identical to — those used by employees of the actual organization. Some can even make a real agency’s phone number appear on caller ID (known as spoofing).

Usually, once they contact you, they claim there is a problem (or prize or new benefit available) that requires your immediate attention. But here’s the catch: to fix the problem or receive the reward, the imposter needs you to pay them a fee or provide personal data, such as your Social Security number or bank account information. They may even threaten you with legal action, a suspension of your benefits or arrest if you fail to act in time.

If someone contacts you and you notice these signs of a scam, remain calm. Hang up the phone or delete the message if you feel like something is off. It’s the easiest way to avoid accidentally giving away personal information.

Artificial Intelligence Gives Scammers a New Tool

You should also be aware of an emerging threat — artificial intelligence (AI), which allows machines to mimic certain human behaviors, such as speech and writing. AI can personalize phishing emails, making it harder to recognize a fraudulent communication. It can impersonate the voice of a family member or friend, making you think they are in trouble or need money.

Here are some things you can do to protect yourself from AI-enhanced scams:

  • Don’t share sensitive information through text or social media;
  • Don’t send or transfer money to unknown locations;
  • Consider designating a “safe word” for your family to use to identify themselves and share that word with family members and close contacts; and
  • When in doubt, hang up and call your loved one back.

Doing Business With NYSLRS

Retirement Online, the convenient and secure way to do business with NYSLRS, is only available from the NYSLRS website. There is no mobile app available from NYSLRS. If you have a Retirement Online account, keep your username and password in a safe place and don’t share them with anyone.

Generally, NYSLRS will only call you if we are following up on a previous communication from you, such as a phone call, secure email message, Retirement Online request, form or letter. For security, you can use your NYSLRS ID to identify yourself instead of providing your Social Security number. To find your NYSLRS ID, sign in to Retirement Online, or check your annual statement or other correspondence from NYSLRS.

It’s important to review the communications you receive from NYSLRS. We send you letters or emails (depending on your delivery preference in Retirement Online) whenever you update your Retirement Online account or benefit information. However, if you receive a notification of an account change you did not make, contact us immediately.

Your Retiree Annual Statement: Now Available Online

Your Retiree Annual Statement is now available in Retirement Online! Retirees who opted to go paperless already received an email notifying them that their Statement is available in their Retirement Online account.

If you did not change your delivery preference to email, your Statement will be mailed by the end of February.

Get Your Statement Online Now

Whether you chose email delivery or not, you can access your Statement in your Retirement Online account now. To view, save or print your Statement:

If you don’t have an account, you can find step-by-step instructions for registering in the Tools & Tips section of the Retirement Online page.

Your Retiree Annual Statement is now available in Retirement Online

Inside Your Retiree Annual Statement

Your Statement has a new look this year, but it still contains the same information you receive every year about your benefit amount, deductions and tax withholding. Your Retiree Annual Statement includes:

  • Your NYSLRS ID. To protect your privacy, use this number instead of your Social Security number when conducting business with NYSLRS.
  • The total amount of your annual benefit. (This is your base benefit, before taxes, deductions and credits.)
  • Your total net benefit for the year. (This is your benefit after taxes, deductions and credits.)
  • The total amount of any cost-of-living adjustment (COLA), if you are eligible.
  • Your total Medicare credits (if eligible).
  • Federal tax withholding (if applicable).
  • Other deductions taken from your pension, such as payments to an alternate payee or union dues.
  • Health insurance premiums. (NYSLRS doesn’t administer health insurance benefits, but we deduct retiree premiums at the request of your former employer.)

Next Year Don’t Wait for the Mail

Going forward, your Statement will be available online in early February each year.

Update your delivery preference now to receive an email as soon as next year’s Retiree Annual Statement is available online:

  • Sign in to Retirement Online.
  • From your Account Homepage, click the “update” link next to ‘Retiree Annual Statement by.’
  • Choose “Email” from the dropdown.

If you choose to receive your Statement by email, you will not receive a printed copy in the mail.

Use Retirement Online to Stay Informed

Your Statement is a snapshot of your NYSLRS account as of December 31, 2023. For the most up-to-date information year-round, sign in to Retirement OnlineIf you don’t already have an account, you can learn more or register today.

In Retirement Online, you can view pay stubs for your benefit payments. Check them if you have a question or to track year-to-date totals of your pension benefit as well as any deductions for health insurance, union dues, tax withholding or disbursements under a domestic relations order.

Your Statement is Not a Tax Document

While your Retiree Annual Statement does include information about your benefit payments and tax withholding, it is not a tax document. If your pension is taxable, you should have received a 1099-R tax form (either through your Retirement Online account or by mail, depending on your delivery preference) for filing your taxes.

Retirees: Your 1099-R is Available Online

Retirees: Your 1099-R is Available OnlineTax season is approaching, and with 1099-Rs available online, getting this key NYSLRS tax form is now faster and more convenient than ever.

Most NYSLRS pensions are subject to federal income tax (some disability benefits are not taxable). If you receive taxable income from NYSLRS, we provide a 1099-R tax form for filing your taxes. New this year, retirees who opted to go paperless received an email notifying them their 1099-R is available in their Retirement Online account. If you did not change your delivery preference to email, your 1099-R tax form will be mailed to you by January 31.

Understanding Your 1099-R

A 1099-R tax form is used to report the distribution of taxable retirement benefits. It 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 have questions about the information on the form, check our interactive 1099-R tutorial. It walks you through a sample 1099-R and offers a short explanation of each box on the form.

Get Your 1099-R Online Now

Whether you chose email delivery or not, you can access your 1099-R in your Retirement Online account now. To view, save or print your 1099-R:

  • Sign in to Retirement Online.
  • From your Account Homepage, click the “Manage My 1099-R Tax Forms” button.
  • Select “2023” from the dropdown.

If you don’t have an account, you can find step-by-step instructions for registering in the Tools & Tips section of the Retirement Online page.

Changing Your Federal Withholding

After you file your taxes, you may find that you need to adjust the federal taxes that are being withheld from your pension.

Retirement Online is the fast and convenient way to change your withholding information. You can also check your current withholding by signing in to Retirement Online and viewing your most recent pension pay stub. Visit our Taxes and Your Pension page for more information.

Note: New York State doesn’t tax your NYSLRS pension, and we can’t withhold income tax for other states.

Working After Retirement: Retiree Earnings Limit

Working After Retirement: Retiree Earnings Limit

As a NYSLRS retiree, you can work and still receive your pension, but you should be aware there may be a limit on how much you can earn each year without affecting your NYSLRS pension. Whether the earnings limit applies to you depends on:

  • Whether you receive a service retirement or disability retirement;
  • Whether you will be working for a New York State public employer, private employer (yourself or other); and
  • Your age.

Please read the information below carefully to find out more.

Working While Receiving a Service Retirement Benefit

An earnings limit of $35,000 generally applies to NYSLRS retirees who:

  • Are under age 65;
  • Receive a service retirement benefit (see disability benefit rules below); and
  • Return to work for a public employer (including contract or consultant work, if you joined NYSLRS on or after May 31, 1973).

2024 Update Regarding the Earnings Limit

In response to the COVID-19 emergency, NYS executive orders suspended the earnings limit. The last order expired in June 2023. This means for most retirees under the age of 65, the $35,000 limit applies to the entire calendar year starting 2024.

The earnings limit for retirees employed by school districts and Boards of Cooperative Educational Services (BOCES), however, is suspended through June 30, 2024. The earnings limit suspension for school employees does not apply to retirees who work for a college, university or charter school.

There is no earnings limit if you are self-employed or if you work for:

  • The federal government;
  • A state or local government in another state; or
  • A private employer.

Also, beginning in the calendar year you turn 65, the earnings limit no longer applies.

Note: Special rules apply to elected officials.

Working While Receiving a Disability Retirement Benefit

Almost all earnings for retirees who are working while receiving a disability retirement benefit are limited whether they work for a public or private employer. The limit is specific to each retiree. To find out your earnings limit, please contact us.

How the Limit Applies

The limit applies to all earnings for the calendar year, including money earned in the calendar year, but paid in a different calendar year (for example earned in December but paid in January).

The limit does not apply to:

  • Payments received after you retire from your employer, such as for vacation or sick time you earned when you were still working; and/or
  • A retroactive payment for a new union contract, if the earnings are for employment before you retired.

Reporting Your Earnings

It is your responsibility to notify NYSLRS if you earn more than the limit. If you know you are going to exceed the limit, contact us at least a month before you do.

You can message us using the secure contact form, or you can fax a letter to 518-402-2498. Be sure to include the name of your employer, the approximate date you expect to exceed the limit and a daytime phone number in case we have questions.

If You Exceed the Limit

If you earn more than the limit, you must:

  • Pay back NYSLRS for the pension payments you received after the date you reached the limit. If you continue to work, your pension will be suspended for the remainder of the calendar year and resume the following January.

    OR

  • Rejoin NYSLRS, in which case your pension will be suspended until you retire again at some future date. (You’d need to reapply.)

Earnings Limit Waiver

Under Section 211 of the Retirement and Social Security Law, the earnings limit can be waived if your prospective employer gets approval before hiring you. Approval is not automatic; it is based on the employer’s needs and your qualifications. In most cases, the New York State Department of Civil Service would be the approving agency. A Section 211 waiver covers a fixed period, normally up to two years.

For More Information

Before you decide to return to work, please read our publication What If I Work After Retirement? It includes information such as how earnings limits are calculated for retirees receiving a disability retirement benefit, consequences to consider before returning to NYSLRS membership and more. If you have questions, please contact us.

Supplement Your NYSLRS Pension with Retirement Savings

Your NYSLRS pension can provide a significant portion of your retirement income, but it’s also a good idea to supplement your pension and Social Security with a retirement savings account.

Retirement savings can be an important financial asset when you retire. Savings can enhance your retirement lifestyle and give you the flexibility to do the things you want. Your savings can provide money for you to travel, continue your education, pursue a hobby or start a business. The money you set aside can also be a resource in case of an emergency, act as a hedge against inflation and boost your retirement confidence.

Set a Retirement Savings Goal

How much to save is a personal decision, but here are some things to consider.

Financial advisers often recommend saving 10 to 15 percent of your gross earnings throughout your career to retire comfortably. However, that advice is aimed at people with 401(k)-style defined contribution retirement plans as their main source of retirement income.

As a NYSLRS member, you’re part of a defined benefit plan, also known as a traditional pension plan. Your pension, based on your years of service and earnings, will provide a lifetime benefit. You can estimate your pension in Retirement Online to get an idea of the income it will provide in retirement.

Having a pension means you may not need to save as much as someone with only a 401(k). Use a retirement savings calculator to see how much a retirement savings plan could yield over time, or test the results of different savings amounts.

Below you can see potential savings results of someone who invests 50 dollars every two weeks over 30 years. While the stock market can be turbulent over the long term, stock market returns average about 10 percent a year.

Saving for Retirement

As you get closer to retirement, you should develop a plan to withdraw money from your retirement savings. A withdrawal plan will give you a better idea of the income you might expect from your nest egg.

Here is one possible withdrawal strategy, which was designed to provide retirement income for 20 years. Please note, if your retirement is far in the future, the money you withdraw may not have the same value that it has today. However, while inflation has been high recently, it does cycle and has been lower in the past.

Withdrawing from Retirement Savings

If you find you’ll need to save more to meet your goal, you can make adjustments to help ensure you’ll have enough savings in retirement.

Deferred Compensation – A Way to Save

State employees and many municipal employees are eligible to save for retirement through the New York State Deferred Compensation Plan. Once you’ve signed up, your retirement savings, which may be tax-deferred, depending on your plan, will be automatically deducted from your paycheck. (The Deferred Compensation Plan is not affiliated with NYSLRS.)

Check with your employer’s human resources or personnel office to see if they participate in the Deferred Compensation Plan or if they offer other savings options.

Read More About Retirement Savings

You can find more information about saving for retirement in these posts:

10 Things All NYSLRS Retirees Should Know

Retirees, brush up on your Retirement System knowledge!

10 Things All NYSLRS Retirees Should Know
  1. Get Your 1099-R Tax Form in Retirement Online
    Starting in 2024, your 1099-R tax form will be available in Retirement Online! Get yours faster and help us ‘go green’ — update your delivery preference now to receive an email when it’s ready, instead of waiting for it in the mail. (If you choose to receive your 1099-R by email, you will not receive a printed copy in the mail. Regardless of your delivery preference, you will be able to view and print your 1099-R by signing in to Retirement Online at the end of January.)
  2. Change Your Federal Tax Withholding in Retirement Online
    Retirement Online is the fastest way to update your withholding. Changes submitted by the middle of the month will generally appear in that month’s payment. Most NYSLRS pensions are subject to federal income tax (some disability benefits are not taxable).
  3. Not Taxed by New York State
    Your NYSLRS pension is not subject to New York State or local income taxes. Visit our Taxes and Your Pension page for more information. If you move to another state, your pension may be subject to that state’s income tax. If you’re thinking of moving to another state, check with that state’s tax department.
  4. Get Your Retiree Annual Statement in Retirement Online
    Starting in 2024, you can use Retirement Online to view and print your annual statement. Help us go green and update your delivery preference to receive an email when it’s available, instead of waiting to receive it in the mail.
  5. Manage Your Direct Deposit in Retirement Online
    Use Retirement Online to securely update your direct deposit bank account information. Whether you’ve switched banks or need to move your deposits to a different account, you can make those changes quickly with Retirement Online. Changes are generally applied within one to two payments. You can find out when your next pension payment is coming by checking our online pension payment calendar.
  6. Prove Your Pension Income Using Retirement Online
    You may need proof of your retirement income for housing or as part of an application for the Home Energy Assistance Program (HEAP). With Retirement Online, you can print or save an income verification letter any time you need one.
  7. Receiving Your Annual Cost of Living Increases
    Once you become eligible for a cost-of-living adjustment (COLA), you will receive a permanent increase to your pension amount every September. When your net benefit amount changes, NYSLRS will inform you.
  8. View Your Pension Payment “Pay Stub” in Retirement Online
    Sign in to Retirement Online to access full pay stubs for your pension payments. Select the date of the payment you want to review to see a breakdown of your pension payment, including your most recent COLA amount as well as any deductions made for health insurance, union dues, tax withholding or disbursements under a domestic relations order.
  9. You May Leave a Death Benefit
    Your survivors may be entitled to a death benefit after you die. Retirement Online makes it easy for eligible retirees to view their beneficiary selections, choose different beneficiaries or change contact information for an existing beneficiary. Anyone can report the death of a retiree by using our online death report form.
  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.

Not retired yet? Read our blog post 10 Things All NYSLRS Members Should Know.

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.

Vested: Qualifying for a Retirement Benefit

Becoming vested is a crucial milestone for NYSLRS members. It means you have earned enough service to qualify for a retirement benefit once you meet the age or service requirements established by your retirement plan. Vesting is automatic — you don’t have to fill out any paperwork to become vested.

Vested: Qualifying for a Retirement Benefit

Years of Service Credit to Become Vested

NYSLRS members in Tiers 2 – 6 need five years of service credit to be vested.  

If you work part-time, or if you have an unpaid leave of absence, it will take 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.

Sign in to your Retirement Online account to check your total estimated service credit and whether you are vested.

If you work for a school district, read our How School Employees Earn NYSLRS Service Credit blog post for information about how your service credit is determined. 

Note: Previously, Tier 5 and 6 members needed ten years of service to be eligible for a service retirement benefit. However, as of April 9, 2022, these members only need five years of service credit to be vested. The new law did not change benefit rules such as how long members must contribute, pension benefit calculations, the full retirement age, reductions to retire early or the cost to purchase previous service.

Applying for Retirement

Vesting is automatic, but you will need to apply for retirement to receive your pension — NYSLRS will not pay out your pension benefit unless you apply for it.

Pension eligibility requirements and benefit calculations depend on your tier and retirement plan. To find your tier and retirement plan, sign in to your Retirement Online account and go to the ‘My Account Summary’ section. Once you know your tier and retirement plan, you can find your retirement plan publication for comprehensive information about your benefits and filing instructions.

And when you’re ready, you can apply for a service retirement benefit quickly and easily using Retirement Online.

If you leave public employment, read about the age requirements for filing for a vested retirement benefit as well as other important information that you should know about your NYSLRS membership and benefits.

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.

A Look Inside NYSLRS

The New York State and Local Retirement System (NYSLRS) administers two distinct systems. They are:

  • The Employees’ Retirement System (ERS) with 659,750 members; and
  • The Police and Fire Retirement System (PFRS) with 35,754 members.

During the State fiscal year that ended on March 31, NYSLRS provided pension benefits to nearly 515,000 retirees and beneficiaries. Altogether, that’s more than 1.2 million participants, making NYSLRS one of the largest public retirement systems in the nation.

A Look Inside NYSLRS

New York State Common Retirement Fund

NYSLRS benefits are provided by the New York State Common Retirement Fund. State Comptroller Thomas P. DiNapoli is administrative head of NYSLRS and trustee of the Fund, which is widely recognized as one of the best-managed and best-funded public retirement funds in the nation. It’s also exceptionally enduring; 2021 marked the 100-year anniversary of the Retirement System.

NYSLRS Members                                                          

But NYSLRS is more than just the pension fund. Here are some facts about NYSLRS members as of March 31:

  • 514,150 active members (that is, members still on the public payroll) work for 2,979 public employers statewide.
  • About one-third of those active members work for New York State. The rest work for counties, cities, towns, villages, school districts and public authorities.
  • Nearly 94 percent of total active members are in ERS. PFRS accounts for 6 percent of total active membership.
  • Almost 60 percent of all members are in Tier 6.
  • In ERS, 58.8 percent of members are in Tier 6, while 36.7 percent are in Tiers 3 and 4.
  • In PFRS, 51.1 percent of members are in Tier 6, while 43.4 percent are in Tier 2.

NYSLRS Retirees and Beneficiaries

The average pension for an ERS retiree was $27,227 as of March 31, 2023; the average for a PFRS retiree was $60,592. But these pension payments don’t just benefit retirees and beneficiaries. About 78 percent of retirees and beneficiaries stay in New York State and generate billions of dollars in economic activity. Their spending supports local businesses, contributes to local taxes and creates jobs in our communities.

Learn More About NYSLRS

Detailed information about our members and retirees, the Fund and Fund investments can be found in the 2023 Annual Comprehensive Financial Report.