Tag Archives: ERS

How To Keep Your NYSLRS Records Up-to-date

Whether you joined NYSLRS  recently or are preparing to retire, accurate records are essential. To make sure that your records are ready when you are, it’s important to check and update your NYSLRS account details. Here’s how:

  • Sign in to Retirement Online. It’s a convenient and secure way to review your records for personal details, contact information, designated beneficiaries and more. In many cases, you can use Retirement Online to make changes instead of sending forms through the mail or calling NYSLRS.
  • Review your Member Annual Statement (MAS). Each summer, your MAS offers an overview of your retirement account. Check it over carefully to make sure your date of birth, date of membership, service credit, earnings and other details are correct.

Be sure to contact us if you find any information that’s missing or incorrect. Get in touch right away:

  • When your mailing address changes. This is especially important if you leave public service before you’re eligible for retirement. With your correct address on file, we’ll be able to keep you informed about your benefits. The fastest and easiest way to update your address is to sign in to Retirement Online and make the change, or you can send us a completed Change of Address form (RS5512), though this process will take longer.
  • When you find a date-of-birth error. If your date of birth is wrong on any paperwork that we send you, we need to know. Please send us a photocopy of documentation showing your correct date of birth (such as a copy of your birth certificate). You can attach it to an email using our secure contact form, or write to our Member and Employer Services Bureau Registration Unit at 110 State Street, 5th Floor, Albany NY 12244-0001.
  • When you change your name. You can change your name in our records by submitting a Name Change Notice form (RS5483). If a court order was necessary for your name change, you’ll need to include a copy of the order.
  • When you want to select or change your beneficiaries. Sign in to Retirement Online and click Update My Beneficiaries. Retirement Online is the fastest way to get the job done. But, you can also complete a Designation of Beneficiary form (RS5127) and send it to us.

 

News You May Have Missed

Information comes at us fast these days. So, we thought we would say one last goodbye to 2017 with some news from your retirement system that you may have missed last year.

Investing in a Cleaner Future

The New York State Common Retirement Fund holds some $200 billion of assets in trust for more than a million NYSLRS members, retirees and beneficiaries. But, that’s not all it does. Here’s a look at how Comptroller DiNapoli is putting the Fund’s investments and influence to work — taking advantage of low-carbon investment opportunities and seeking improvements in the environmental practices of the companies in the Fund’s portfolio.

Read more …

Knowing Your Retirement Plan is the Key to Retirement Planning

We’re all NYSLRS members, but we’re spread out over two systems, six tiers and 346 retirement plan combinations. Here’s a look at why knowing your plan is so important when it comes to understanding your benefits and planning for retirement — and how to find yours if you don’t know it already.

Read more …

Choosing Your Pension Payment Option

When it comes to retirement, you have some decisions to make: whether to retire, when to retire, but also, how you want to receive your pension benefit. It’s an important choice, one which can affect both your own financial security and that of your loved ones. In this post, we break down your options.

Read more …

Help with Retirement Online

More than 100,000 NYSLRS members, retirees and beneficiaries are now using Retirement Online to review their NYSLRS benefits and conduct transactions in real time. If you’re one of them, but you’ve forgotten your password or your user ID, or if you want to register a trusted device, we can help.

Read more …

Know Your Benefits: Death Benefits

Another in our Know Your Benefits series. This time, we tackle death benefits. Most of us will leave our beneficiaries what’s called an ordinary death benefit if we die while we’re still working. We take a look at this and other common death benefits and how your survivors should file for them.

Read more …

From NYSLRS

Popular Blog Posts of 2017

As we wrap up another year, let’s take a look back at the most popular New York Retirement News posts of 2017.

Happy New Year — Top Posts of 2017

  1. NYSLRS – One Tier at a Time: ERS Tiers 3 & 4
    When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. Members of Employees’ Retirement System (ERS) Tiers 3 and 4 represent nearly two-thirds of our membership, and their retirement plans are similar. Many are nearing retirement. This blog, part of a series, is an overview of ERS Tier 3 and 4 retirement benefits.
  1. Tier 3 & 4 Members: When Is The Right Time To Retire?
    If you’re in ERS Tier 3 or 4, you can retire as early as age 55. But working a few more years could have a big impact on the amount of your pension. Here are some factors to consider before you opt for an early retirement.
  1. $15 Billion in Lost Money. Could Some Of It Be Yours? Find Out.
    Is it possible you left money in an old bank account? Maybe you lost track of a security deposit, insurance payout, stock dividend or mutual fund? Could there be a distant relative who left bonds in your name?
  1. Taxes and Your NYSLRS Retirement Benefit
    Your NYSLRS retirement benefit isn’t subject to New York State or local income taxes, but it is subject to federal income tax. Before you retire, take some time to think about how taxes could affect your retirement planning.
  1. How Much Will My Pension Be?
    For anyone thinking about retirement, one big question looms: How much money will I have to live on after I stop working? Your NYSLRS pension is a lifetime benefit. Having a good idea of what that monthly amount will be is essential to effective retirement planning. Fortunately, we offer tools to help you estimate your future pension.

Generational Attitudes about Retirement

Attitudes about retirement vary from one generation to the next.

That stands to reason. For Millennials (those born from 1979–2000), retirement is a long way off. For Generation X (born 1965–1978), retirement isn’t too far down the road, while millions of Baby Boomers (born 1946–1964) are already retired.

Generational Attitudes on RetirementA number of recent studies have tracked generational differences concerning retirement, but they also show a substantial amount of agreement among the generations. Surveys show that a majority of workers, regardless of generation, are saving for retirement. But Millennials appear to be outperforming members of the older generations on that count. They tend to start saving early and are on track to outpace Boomers and Gen Xers in building retirement nest eggs.

Concerns about Social Security are high across generations, with many fearing that it won’t be there for them when it comes time for them to retire. (That fear is reasonable, though perhaps exaggerated, based on Social Security Administration projections.)

Social Security’s troubles, plus the general decline of defined-benefit pensions, has left many feeling that they are on their own. According to one report, two-thirds of both Millennials and Gen-Xers expect their retirement savings accounts to be their primary source of income after they stop working.

The take away for NYSLRS members? The cross-generational anxiety about retirement underscore the important role that a defined-benefit retirement plan, such as your NYSLRS retirement plan, plays in securing your financial future. It also reinforces the importance of saving for retirement.

Retirement on the Horizon? Here Are a Few Things to Think About

Things to think aboutYou’re probably looking forward to the day when you file your application for a NYSLRS pension. But before you retire, there are a few questions you should ask yourself. After all, by filing for retirement, you’re making critical decisions about your financial future. And once you’ve retired, some of those decisions will be irrevocable. Whether your planned retirement date is just around the corner or a few years off, this checklist could help you avoid costly mistakes.

Do I have all the service credit I think I have?
Under some retirement plans, service milestones (20 years, 30 years, full retirement age) can have a big impact on the amount of your benefit. If you’re aiming for one of these milestones, but retire just short of reaching it, your pension will take a big hit. To make sure you have enough service credit on your planned retirement date, sign in to Retirement Online to see how much service credit you currently have. You can also file a Request for Estimate form or talk with an information representative at our Contact Center (1-866-805-0990 or 518-474-7736 in the Albany, New York area).

Do I have previous service credit I want to purchase?
You may be able to buy credit for previous public employment or military service, which in most cases would increase your pension. But you can’t purchase service credit after you retire. You can use the “Information about Your Public Employment” section of the Request for Estimate form to request credit for previous public and military service. Read our booklet, Service Credit for Tiers 2 through 6, for more information.

Do you have a balance on a NYSLRS loan?
You cannot pay off your NYSLRS loan after you retire. If you retire with an outstanding balance, your pension will be permanently reduced. You can check your loan balance with Retirement Online or through our automated phone system. Call the toll-free number (above), then press 3 for members, 1 or 2 for the Employees’ Retirement System or the Police and Fire Retirement System, and 1 for loan services. If your retirement is still a few years away, you can increase your payroll deductions or send in extra payments to pay off your loan.

Am I ready to retire?
Are you really ready? The fact that you can retire doesn’t necessarily mean you should. Am I financially prepared? Am I psychologically ready for retirement? These are questions you’ll have to answer for yourself, but there are resources available:

Protecting the Pension System

Protecting the Pension SystemSince taking office, New York State Comptroller Thomas P. DiNapoli has fought against the abuse of public funds. One of his top priorities is to protect the New York State and Local Retirement System (NYSLRS) from pension scammers.

To date, DiNapoli’s investigations of retirement fraud have led to 24 arrests and the recovery of nearly $3 million in retirement funds. Here are some cases from earlier this year:

Woman Pleads Guilty to Theft of Dead Mother’s Benefits

A Madison County woman pleaded guilty to a felony grand larceny charge for collecting $67,000 of her dead mother’s NYSLRS pension checks. When her mother died in 2009, Tammy Banack did not inform NYSLRS or her bank, and her mother’s pension checks continued to be deposited in a joint checking account. Banack agreed to repay the stolen pension benefits and received five years’ probation.

Man Pleads Guilty to Stealing Pension Checks

A Brooklyn man was arrested for cashing over $22,000 of his mother’s NYSLRS pension checks after she died. Jimmie Buie pleaded guilty and was sentenced to up to three years in prison. He was also ordered to repay the money. The office of New York State Attorney General Eric T. Schneiderman assisted in this case and the Banack case.

Town Clerk Admits Faking Retirement Benefits

Following a review of monthly retirement reports, the Office of the State Comptroller discovered that a town clerk had been unlawfully using a town computer to inflate her retirement service credit. Springport Town Clerk Deborah Waldron pleaded guilty, resigned and paid fines and surcharges. Her actual hours and benefits were recalculated to ensure she does not receive extra money she did not earn.

Brother Guilty of Bank Larceny in Pension Scheme

Joseph F. Grossmann, a former Albany resident, pled guilty to Bank Larceny after he used fake documents and other schemes to collect $130,624 in his deceased sister’s name. He was sentenced to three years of probation (including one year of home confinement) and ordered to pay back the money.

To learn more about how Comptroller DiNapoli safeguards public funds, and how you can help, visit the Comptroller’s Fighting Public Corruption page. You can also read about past pension fraud investigations.

Update Your Beneficiaries

It’s easy and important

How long has it been since you thought about your NYSLRS beneficiaries? A year, two years, five? Did you get married since then? Get divorced? Have a child?

When you die, your NYSLRS death benefit will be paid to the last beneficiaries you designated. That’s the law. That’s why it’s so important that you check your NYSLRS beneficiary designations periodically.

Luckily, it’s easier to do than ever.

The new Retirement Online is a convenient way to review account details and conduct business with NYSLRS in real time. Now, instead of sending a form through the mail, you can simply sign in to Retirement Online to view your designations and submit changes instantly.

Register and sign in to Retirement Online today to update your beneficiaries and access a variety of other time-saving features.

Types of Beneficiaries

You can designate primary and contingent beneficiaries:

  • A primary beneficiary receives your death benefit. If you name more than one primary beneficiary, they will split the benefit equally.
  • A contingent beneficiary receives a benefit only if all your primary beneficiaries are deceased when you die.

Special Benefit Designations for Beneficiaries

Special Beneficiary Designations

Your beneficiary doesn’t have to be a person:

  • When you die, your estate is all the money and property you owned. If you make your estate a beneficiary, the executor of your estate will distribute your benefit according to your will. If you outlive both your primary and contingent beneficiaries, your benefit will go to your estate by default.
  • A trust is a legal arrangement giving a person you choose legal control over property — such as a death benefit. The trust itself would be your NYSLRS beneficiary, not the individuals for whom you established the trust. (You may want to speak with your attorney if you’re thinking about making your trust a beneficiary.)
  • You can name a charitable, civic, religious, educational or other kind of organization as a beneficiary too.

For more information about beneficiaries, check out our booklet, Why Should I Designate a Beneficiary? (VO1706).

Know Your Benefits: Death Benefits

Few people like to discuss dying, but it’s important to think about how those we love will get along when we do. NYSLRS members have important considerations to keep in mind. First, depending on the pension payment option you choose, you could leave behind an ongoing pension. But, beyond that, your loved ones may also receive a death benefit.

This post is an overview of common death benefits and how your survivors should file for them. It is important to review your retirement plan booklet for specific benefit and eligibility information, and to contact us with any questions you have.

Benefits

Most members who die while they’re still working will leave their beneficiaries what’s called an ordinary death benefit. The benefit amount is usually one year of your earnings per year of service, up to a maximum of three years. Depending on your system, tier and retirement plan, other limitations apply.

Generally, to qualify, you must have at least one year of service credit, and you must die while you are on payroll, in public service. Check your plan booklet for other qualifying circumstances.

Ordinary Death Benefit Graphic

Some members who die in an on-the-job accident (not due to their own willful negligence) might leave their spouses or other survivors an accidental death benefit. If paid to a surviving spouse or dependent parent, the benefit is a lifetime pension based on 50 percent of your final average salary (less any workers’ compensation benefit). There is no minimum service credit requirement.

Depending on your system, tier and retirement plan, there may be other benefits you leave your loved ones. For example, beneficiaries of Police and Fire Retirement System (PFRS) members who died after meeting the requirements for a service retirement may receive an alternative death benefit. Most Employees’ Retirement System (ERS) members, who retire from service or within a year of leaving public employment, will leave their beneficiaries a post-retirement death benefit.

Filing

Regardless of which death benefit you leave, benefits can’t be paid until we’re notified of your death. That’s why it’s so important to talk with your family now about your benefits and how to report your death to NYSLRS. Check out our Getting Your Affairs in Order and A Guide for Survivors publication for more helpful information.

Update Your Beneficiaries

In most cases (unless beneficiaries are determined by law, as in the case of accidental death benefits), your death benefit will be paid to the beneficiaries you designated at some point in the past, so it’s important to be sure yours are up to date. Your beneficiaries are listed on your Member Annual Statement. You can also view and update your beneficiaries using Retirement Online. Just register and sign in to view your designations and submit changes.

Where in New York are NYSLRS Retirees?

NYSLRS retirees tend to stay in New York, where their pensions are exempt from State and local income taxes. In fact, 78 percent of NYSLRS 452,455 retirees and beneficiaries lived in the State as of March 31, 2017. And half of them lived in just ten of New York’s 62 counties.

So where in New York do these retirees call home? Well, there are a lot of NYSLRS retirees and beneficiaries on Long Island. Suffolk and Nassau counties are home to more than 57,000 recipients of NYSLRS retirement benefits, with annual pension payments exceeding $1.8 billion. But that shouldn’t be surprising. Suffolk and Nassau counties are, respectively, the largest and third largest counties in the State outside of New York City.Erie County, which includes Buffalo, ranks No. 2 in the number of NYSLRS retirees, with nearly 30,000. Albany County, home to the State Capital, ranks fourth with more than 18,000. Monroe, Westchester, Onondaga, Saratoga, Dutchess and Orange counties round out the Top Ten.

This distribution is easy to understand. The Top Ten counties for retirees include nine of the ten most populous New York counties outside of New York City. (The City, which has its own retirement system for municipal employees, police and firefighters, has about 22,000 NYSLRS retirees and beneficiaries living in its five counties.)

All told, NYSLRS retirees received $5 billion in retirement benefits in the Top Ten counties, and $9.1 billion statewide.

Hamilton County had the fewest NYSLRS benefit recipients. But in this sparsely populated county in the heart of the Adirondacks, those 435 retirees represent nearly 10 percent of the county population. $8.6 million in retirement benefits were paid to NYSLRS retirees in Hamilton County during fiscal year 2016-2017.

Outside of New York, Florida remained the top choice for NYSLRS retirees, with more than 36,000 benefit recipients. North Carolina (8,693), New Jersey (7,466) and South Carolina (5,620) were also popular. There were 690 NYSLRS recipients living outside the United States as of March 31, 2017.

Age Milestones for Retirement Planning

Age Milestones for Retirement PlanningWhether you’re 22 or 52, you should be planning for retirement.

NYSLRS retirement benefits are based on tier status, years of service, and average salary. Age is also an important number, and not just the age when you plan to retire. Here are some age milestones to keep in mind while planning for your retirement.

Under 50: It’s never too early to start saving for retirement. Even modest savings can add up over time as investment returns grow and interest compounds.

50: The Age 50 and Over Catch-Up provision allows you to save more pre-tax dollars in a retirement account starting in the calendar year in which you turn 50.

55: The earliest age most NYSLRS members can retire. (Does not apply to members in special retirement plans.) Your pension may be permanently reduced if you retire at 55.

59½: The age you can draw down money from a tax-deferred retirement savings plan, such as an IRA, without facing a potential federal tax penalty. (The penalty does not apply to New York State Deferred Compensation savings if you are retired or have left public service.)

62: Full service retirement age for Tiers 2, 3, 4 and 5 and PFRS Tier 6. Earliest age you can begin collecting a Social Security pension, but the benefit would be reduced. For more information, read When to Start Receiving Retirement Benefits.

63: Full retirement age for ERS Tier 6 members.

65: Age most people are eligible for Medicare benefits.

66: Full Social Security retirement age if you were born from 1943 through 1954. Add two months for each year from 1955 through 1959.

67: Full Social Security age if you were born in 1960 or later.

70: If you do not take your Social Security benefit at full retirement age, your benefit will increase each year until you reach age 70. Delaying Social Security after 70 will not increase your benefit.

70½: If you have tax-deferred retirement savings and are no longer working, you must begin withdrawing some of this money after you turn 70½.

One Last Number: Having a rough idea of your life expectancy is essential to retirement planning.

For more information about retirement planning, read our publication Straight Talk About Financial Planning For Your Retirement.