Tag Archives: Public Employment

What If I Leave Public Employment?

Most of us will change jobs over our lifetimes, and some of us will leave public employment before retirement. But if you leave the public workforce, what will become of your NYSLRS retirement benefits?

leave public employment

NYSLRS has published a booklet to provide guidance in that situation. What If I Leave Public Employment? outlines what happens with your benefits and details your rights and responsibilities. If you recently left public employment or plan to leave in the future, here are some key points the publication can help you understand.

If You Leave Public Employment, Will You Still Get a Pension?

If you’re vested, you can still collect a NYSLRS pension when you reach retirement age. Members in Tiers 1 – 4 become vested after five years of service; members in Tiers 5 and 6 become vested after ten years. Most members can apply for a pension as early as age 55, but their pension may be reduced if they take it before full retirement age (62 or 63).

What if You End Your Membership?

If you’re not vested, you can end your membership and get a refund of your contribution balance, which includes accumulated interest. After you have been off the public payroll for 15 days, you can request a refund by filing a withdrawal application.

If you don’t withdraw your contributions, they will continue to earn 5 percent interest for seven years. If you’re still off the public payroll after seven years, your membership will automatically end. Your contributions will be deposited into a non-interest account but will not be refunded to you automatically. You must file a withdrawal application to receive them.

If you end your membership, you will no longer be eligible for any NYSLRS benefits. There may also be tax consequences to withdrawing your contributions.

What are Your Responsibilities?

If you leave public employment, but remain a member, it’s your responsibility to notify us of any address changes. You will also need to keep your beneficiary information current.

More Information

Please read What If I Leave Public Employment? to get the full story on leaving public employment. We’ll also be featuring other publications in future blogs, including:

10 Most Popular Posts of 2016

As we wrap up 2016, let’s take a look back at our most popular posts.

  1. NYSLRS Retirees at Home and Abroad

    Where did you go? Not far, it turns out. Seventy-eight percent of NYSLRS retirees and beneficiaries stay in New York State. However, the rest have made homes around the country and even around the world.

  2. How Full-Time and Part-Time Service Credit Works

    Work is work, and credit is credit. But, if you work part-time, there’s some math involved. We helped members crunch the numbers.

  3. NYSLRS Basics: Becoming Vested

    It’s all about becoming vested, earning enough service credit to qualify for a pension benefit — even if you leave public employment. We went through the ins and outs of becoming vested for members of both the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS).

  4. What to Know When Leaving Public Employment

    Even if you leave public employment, you’re still a NYSLRS member. We gave members a rundown on their options and how their benefits may change after moving to private employment before retirement.

  5. Taxes and Your NYSLRS Retirement Benefit

    You won’t need to pay New York State or local taxes on your NYSLRS retirement benefit, but other states and federal income tax are another matter. We gave members and retirees some insight into federal tax withholding and the 1099-R form.

  6. Your Checklist to Apply for Retirement

    Once you’ve earned the service credit, it’s time to get ready for retirement. We gave members a six-item checklist to make sure they’ve laid the groundwork for a smooth application process.

  7. Death Benefits for ERS Members

    We looked at the death benefit that Tier 2, 3, 4, 5 and 6 ERS members in regular plans receive.

  8. Planning Around Your Retirement Date

    A solid lead up to retirement is essential, but picking the right retirement date is important too. We gave members some tips about when to submit their applications, how to pick a date and what their first benefit payments will look like.

  9. NYSLRS’ Top Five Retirement Myths from 2015

    NYSLRS members are spread out over two systems, six tiers and 346 retirement plan combinations. It can be easy for information to get jumbled between coworkers and between plans. So, we cleared up some common misconceptions we’ve heard from members and retirees over the years. This is an entry in our Retirement Myths series.

  10. Retirement Milestones for ERS Tier 3 and 4 Members

    The better you understand your road to retirement, the better you can plan for it. We took a look at the journey for Tier 3 and 4 ERS members and pointed out several retirement benefit milestones they’ll pass along the way. We also took a look at Tier 5 and Tier 6 member milestone, too.