Retirement Myths vs Facts

Common Retirement Myths

retirement myths versus facts

Retirement law can be confusing. Sometimes a small misunderstanding can have a big impact on your benefit. That’s why it’s important to correct some common retirement myths. Here are the top five:

Retirement Myth #1

myth

My NYSLRS contributions go into a personal 401(k)-style savings account that I will get when I retire.

fact

NYSLRS is a defined benefit plan. Your pension will be based on your earnings and years of service  — it will not be based on your contributions.

Retirement Myth #2

myth

If I work for more than one NYSLRS participating employer, the service credit from both will count toward my pension benefit.

fact

It depends. You can only earn one year of service credit in a 12-month period. If you work part-time for two participating employers, you would receive credit toward retirement from both, up to the maximum of one year. However, if you already work full-time for one NYSLRS employer plus you work part-time for another employer, your part-time job won’t increase your retirement service credit. Also, if you are a full-time employee of a school district, you won’t earn extra service credit if you work during the summer.

Retirement Myth #3

myth

NYSLRS administers health insurance coverage for its retirees.

fact

NYSLRS does not administer health insurance programs. We may deduct premiums from a retiree’s monthly pension benefit to pay for health insurance coverage if their former employer instructs us to do so, but we can’t answer questions about coverage or changes in premium amounts.

The New York State Department of Civil Service administers the New York State Health Insurance Program (NYSHIP) for New York State retirees and some municipal retirees. If you are still working, your employer’s human resources (personnel) office should be able to answer your questions about post-retirement coverage.

Retirement Myth #4

myth

I can take out a NYSLRS loan after I retire.

fact

You need to actively work for New York State or a participating employer to borrow against your retirement contributions. NYSLRS loans are not available to retirees.

Retirement Myth #5

myth

If I’m vested and no longer working for a public employer, NYSLRS will automatically start paying my pension as soon as I’m eligible.

fact

Your pension is not automatic. You must apply for retirement 15 to 90 days before your retirement date. Your retirement date is up to you. Most NYSLRS members can begin collecting their pension as early as age 55. If you retire between age 55 and your full retirement age (62 of 63, depending on your tier and plan), you may face a permanent benefit reduction. If you have left public employment though, your benefit won’t increase after you reach full retirement age, so delaying retirement beyond that point can cost you money.


You can find more answers about your NYSLRS benefits in your retirement plan publication. If you have account-specific questions, please message our customer service representatives using our secure contact form.

26 thoughts on “Common Retirement Myths

    1. NYSLRS Post author

      For questions about your retirement benefit, please message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.

      Reply
  1. Dennis Barry

    I retired in July of 2022 and my final average salary is not yet complete..Does N.Y S. Retirement plan on paying me interest for the money they owe me ? I wonder how many people this affects and could this be a clas action suit

    Reply
    1. NYSLRS Post author

      We’d like to help resolve your issue. Your message is important to us, and we have sent you a private message in response.

      Reply
    2. Josette Callea

      I retired in January of 2022 and to my knowledge, my final average salary is not yet complete either.

      Reply
  2. John M Snyder

    I applied to have my military te credited to my pension. I learned that this can take 24 months.
    If I retire before the credit is finalized, will I loose my credit?

    Reply
    1. NYSLRS

      For help with your military service credit application, please call our customer service representatives at 866-805-0990, press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information

      Reply
  3. steve leuthner

    Do you need copies of proof of ID for yourself and beneficiaries along with retirement paperwork?

    Reply
    1. NYSLRS

      When you retire, you must provide proof of your date of birth. If you choose a pension payment option that provides a lifetime benefit for a beneficiary, you must provide proof of their date of birth.

      As proof, we will accept a photocopy of a birth certificate, a New York State driver’s license, a passport, a baptismal certificate, naturalization papers or a Certificate of Release or Discharge From Active Duty (DD-214).

      If you apply for retirement using Retirement Online, you can upload your documents during the application process. If you apply by mail, you can include them with paper application. You can also send them after you file, either by mailing them to us or by attaching them to our secure contact form.

      Reply
  4. chanthadeth oyphanith

    I am a Public school teacher with a teachers’ pension in NYS. My summer employer offers NYSLRS as a state run agency. If I join NYSLRS, will the money I make in the summer count towards my FAS for my teachers’ pension?

    Reply
  5. Mike Skroskznik

    I work full time for a county in NYS and I work part-time as an elected official in a village in NYS. Can I retire from my full-time county position and still work part-time as an elected offical?

    Reply
    1. NYSLRS Post author

      If you continue to work in the same elected office to which you were elected or appointed before retiring, your earnings will be limited by Section 212 of the Retirement and Social Security Law.

      However, in order to retire, a member must have a bona fide termination and be removed from payroll before the effective date of retirement. This is required by Internal Revenue Service (IRS) rules and the Retirement and Social Security Law (RSSL). When you apply to retire, we will notify your employer that your last day on their payroll must be no later than the day before your date of retirement.

      Whether a termination has occurred is based on whether facts indicate that the employer and employee reasonably anticipated that no further services would be performed after the retirement date. Where it is expected that the employee will return to employment after the date of retirement, or where a member is retained on the payroll and paid for services past the date of retirement, there is no termination and the service retirement will be voided. Any pension amounts paid in error due to the fact that a retirement was invalid will be recovered by the Retirement System.

      For information about your situation, we recommend that you call our customer service representatives at 866-805-0990, press 2, then follow the prompts. You can also message them using the secure contact form on our website. Filling out the secure form allows them to safely contact you about your personal account information.

      Reply
  6. Laura Bornico

    I worked full time at Island Trees School District and part time after school at Levittown school district Do I not get credit for the part time job?

    Reply
    1. NYSLRS Post author

      NYSLRS members can only earn one year of service credit in a one-year period. If you already work full-time for a participating NYSLRS employer, you already receive full-time credit, so your part-time work will not increase your service credit beyond that.

      Reply
  7. Thomas Smith

    I’m still trying to get my final pension adjustment too. I cannot even get an estimate as to when that will be done. I retired in June 2020!

    Reply
  8. ELIO GIULIANI

    Thank you for posting these facts to educate all of us who read them.
    I am VERY thankful for the NYS pension I receive each month.
    I also get great answers when I call the NYS pension staffers at 1-866-805-0990 with a question.

    Reply
  9. VIRGIL D. RONK JR.

    i’m still trying to find out if i got my fina adjustment. i retired back in august 2021.

    Reply
    1. NYSLRS Post author

      To find out whether your pension benefit is being adjusted, please message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.

      Reply
      1. NYSLRS Post author

        Virtually all initial pension payments are made timely by the end of the month following retirement. These payments are closer than ever to a retiree’s final calculation. NYSLRS often receives adjustments to earnings for retirees well after the date of retirement and is working hard to recalculate pension amounts and provide retroactive payments as quickly as possible. We apologize for the length of time this has taken for some retirees. Thank you for your patience.

        Reply
      2. Barbara A Fecio

        Contact your State Assembly and State Senate person to see if they can help. Mine did, got mine within 3 weeks of contacting them. Retired in April 2020 also.

        Reply

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