Monthly Archives: February 2015

Top 10 New York Retirement News Posts

One year ago, New York Retirement News went live, bringing the members and retirees of the New York State and Local Retirement System (NYSLRS) the retirement news you need to know. Let’s look at some of the top 10 blog posts from this past year:

  1. The Top 5 Retirement Myths and Their Impact on Your Benefit
    A quick look at some common misconceptions NYSLRS members have about their retirement benefits.
  2. Countdown to Retirement: The Last 18 Months
    When you’re about 18 months away from retirement, think about requesting a NYSLRS retirement estimate.
  3. Countdown to Retirement: What to Do 12 Months Before Your Retirement Date
    Your retirement date’s a year away: time to think about what you need to do to get ready.
  4. What Unused Sick Leave at Retirement Might Mean for You
    Some NYSLRS members may be eligible for additional service credit for their unused, unpaid sick leave at retirement.
  5. Top Five Pre-Retirement Goals for NYSLRS Members in 2015
    New year, new goals. Here are five pre-retirement goals we think NYSLRS members can reach in 2015.
  6. How Divorce Affects Your NYSLRS Benefit
    If you get divorced, your ex-spouse may be entitled to a portion of your NYSLRS benefit.
  7. Retirement Planning – Start Thinking Outside the Box
    What will your life be like after retirement? Time to start post-retirement planning.
  8. What Makes Up Your NYSLRS Pension?
    There are three main parts that make up your NYSLRS pension. Do you know what they are?
  9. Retirement Planning – Getting Your NYSLRS Retirement Estimate
    Want a preview of what your retirement benefit could be? A NYSLRS retirement estimate can help with that.
  10. NYSLRS – One Tier at a Time: ERS Tiers 3 & 4
    The first in a new blog series all about NYSLRS retirement tiers.

Thanks for following us this past year. Keep an eye out every Wednesday for posts from NYSLRS.

NYSLRS – One Tier at a Time: PFRS Tier 2

Today’s post looks at Tier 2 in the Police and Fire Retirement System (PFRS). A majority of PFRS members are in Tier 2, which began on July 31, 1973 and ended on June 30, 2009. Most Police and Fire Retirement System members are in “special” retirement plans that allow for retirement after 20 or 25 years, regardless of age, with­out penalty.

The special plans that cover municipal police officers and firefighters fall under Sections 384, 384(f), 384-d, and 384-e of Retirement and Social Security Law. As of March 31, 2017, there were 18,553 Tier 2 members in these plans; most of whom are covered by either Section 384-d (34.9 percent) or 384-e (62.8 percent).

Check out the graphic below for the basic retirement information for PFRS Tier 2 members.

PFRS-Tier-2-Benefits

*This graphic was updated on 2/19/15.

For more detailed information about your benefits, please review your retirement plan publication: Special 20- and 25-Year Plans for PFRS Tier 1, 2, 3, 5 and 6 Members (Sections 384, 384-d and 384-e) (VO1517).

Stay tuned for more NYSLRS – One Tier at a Time posts. Next time, we’ll take a look at another one of our ERS tiers.

NYSLRS Loans: What You Need To Know

If you’ve taken a loan against your New York State and Local Retirement System (NYSLRS) contributions, please remember to pay it back before you retire. An outstanding NYSLRS loan balance at retirement will permanently reduce your retirement benefit. You can’t make loan payments after you retire, and the reduction doesn’t go away after we recover the funds.

Loan Reduction Examples

Here are some loan reduction examples you might find helpful:

Loan Reduction Amount at Retirement (ERS Tiers 3, 4, 5 and 6)

At Age Outstanding Loan Balance Annual Pension Reduction
55 $1,000 $53.18
$5,000 $265.90
$10,000 $531.80
60 $1,000 $59.35
$5,000 $296.74
$10,000 $593.47
62 $1,000 $62.35
$5,000 $311.74
$10,000 $623.48
65 $1,000 $67.59
$5,000 $337.95
$10,000 $675.90
70 $1,000 $79.12
$5,000 $395.60
$10,000 $791.20

Loan Reduction Amount at Retirement (PFRS Tiers 3, 5 and 6)

At Age Outstanding Loan Balance Annual Pension Reduction
45 $1,000 $45.02
$5,000 $225.11
$10,000 $450.23
50 $1,000 $49.06
$5,000 $245.31
$10,000 $490.63
55 $1,000 $54.46
$5,000 $272.30
$10,000 $544.60
60 $1,000 $61.70
$5,000 $308.49
$10,000 $616.98
62 $1,000 $65.25
$5,000 $326.26
$10,000 $652.53
65 $1,000 $71.45
$5,000 $367.27
$10,000 $714.54

Tax Implications

Members who retire with outstanding NYSLRS loans that exceed the federal limit for non-taxable loans may face significant tax consequences. Part or all of your loan balance may be considered taxable funds that were credited to your account and would be subject to federal income tax in the year that you retire. Also, if you’re under age 59½ at the time your loan becomes reportable, you may be subject to an additional 10 percent penalty tax.

Contact Us

For the payoff balance on your NYSLRS loan, call our automated phone service toll-free at 1-866-805-0990 or 518-474-7736 within the Albany, New York area. For information on how to make additional payments or increase your loan payment amount, please visit our Loans: Getting One and Paying it Back page.