Category Archives: Retirees

News and Information for members of the retirement system who are enjoying their retirement

Retirees: Know Your Post-Retirement Earnings Limit

Retirees: Know Your Post-Retirement Earnings LimitAs a NYSLRS retiree, you can work for a public employer after retirement and still receive your pension, but there may be limits on how much you can earn.

Public employers include New York State, municipalities in the State (cities, counties, etc.), school districts and public authorities. If you’re self-employed or work for a private employer, another state, or the federal government, you can collect your full NYSLRS pension no matter how much you earn. (However, earnings for most disability retirees are limited whether they work for a public or private employer. To find out your earnings limit, please contact us.)

Two sections of New York State Retirement and Social Security Law (RSSL) apply to NYSLRS service retirees who return to work in the public sector.

Section 212: Earnings Limit

Section 212 of the RSSL allows retirees to earn up to $30,000 per calendar year from public employment. There is generally no earnings restriction beginning in the calendar year you turn 65. (Special rules apply to elected officials.) If you are under 65 and earn more than the Section 212 limit, you must:

  • Pay back, to NYSLRS, an amount equal to the retirement benefit you received after you reached the limit. And, if you continue to work, your retirement benefit will be suspended for the remainder of the calendar year.

OR

  • Rejoin NYSLRS, in which case your retirement benefit will be suspended.

Section 211: Employer Approval

Under Section 211, the earnings limit can be waived if your prospective employer gets prior approval. (In most cases, the New York State Department of Civil Service would be the approving agency.)

Section 211 approvals apply to a fixed period, normally up to two years. Approval is not automatic; it is based on the employer’s needs and your qualifications.

Before you decide to return to work, please, please read our publication, What If I Work After Retirement? If you still have questions or concerns, please contact us.

A Snapshot of NYSLRS Retirees

This fall, NYSLRS published our Comprehensive Annual Financial Report (CAFR), with the latest data from the State fiscal year ending March 31, 2018. It’s a publication full of details about NYSLRS members, retirees and beneficiaries, as well as information about NYSLRS investments.

In this post, let’s dive in and take a look at NYSLRS retirees and the places they call home.

NYSLRS Retirees by the Numbers

As of March 31, 2018 (the end of the State fiscal year), NYSLRS provides pension benefits to 470,596 retirees and beneficiaries.

Six hundred ninety-five of them live outside the United States, in places like England and the Philippines. However, the vast majority live here in the U.S. In fact, while 22 retirees and beneficiaries have found themselves in the Great Plains of North Dakota, and more than 37,000 now make the sunshine state of Florida home, nearly 79 percent of NYSLRS retirees and beneficiaries — some 370,329 — live right here in New York.

Where NYSLRS Retirees live in the US

NYSLRS Pensions at Work

NYSLRS retirees live in our communities, in every county of the State. Their pension money flows right back into our neighborhoods, stimulating and growing local economies. In 2017 alone, NYSLRS retirees generated $12 billion in economic activity in New York State. They pay property taxes, state and local sales taxes, and they spend money at local businesses. In fact, in 2017, spending by NYSLRS retirees and their beneficiaries was responsible for the creation of an estimated 73,000 local jobs.

An Award-Winning Publication

NYSLRS has received a Certificate of Achievement for Excellence in Financial Reporting for the CAFR for the last 14 years. It’s a national award recognizing excellence in the preparation of state and local government financial reports.

There’s more to find out about retirees, members and NYSLRS’ investments. You can check out this year’s CAFR and CAFRs from years past on our website.

Retirement Planning Tip: Required Minimum Distributions

Required Minimum DistributionsIf you have tax-deferred retirement savings (such as certain 457(b) plans offered by NYS Deferred Comp), you will eventually have to start withdrawing that money. After you turn 70½, you’ll be subject to a federal law requiring that you withdraw a certain amount from your account each year. If you don’t make the required withdrawals, called Required Minimum Distributions (RMDs), you could face significant penalties.

RMDs are never eligible for rollover into other retirement accounts. You must take out the money and pay the taxes.

Calculating the Distribution

The RMD amount must be calculated annually. It’s based on the account’s balance at the end of the previous calendar year and the life expectancy of you and your beneficiary. Check out AARP’s Required Minimum Distribution Calculator for an easy way to determine your required distributions. Many retirement plan administrators, including the New York State Deferred Compensation Plan, will inform you of your RMD amount, but it’s your responsibility to take the required distribution.

Potential Penalty

If you don’t take the required distribution, or if you withdraw less than the required amount, you may have to pay a 50 percent tax on the amount that was not distributed. (You must report the undistributed amount on your federal tax return and file IRS Form 5329.)

The IRS may waive the penalty if you can show that your failure was due to a “reasonable error” or that you have taken steps to correct the situation. You can find information about requesting a waiver on page 8 of the Form 5329 instructions.

What Accounts Require Minimum Distributions?

Most retirement accounts you’re familiar with require these annual withdrawals:

  • 457(b) plans
  • IRAs (traditional, SEP and SIMPLE)
  • 401(k) plans
  • 403(b) plans
  • Profit-sharing plans
  • Money purchase plans

Since contributions to Roth IRAs have already been taxed, the IRS does not require distributions from Roth IRAs at any age.

As with most things investment-related, a lot depends on your particular circumstances. If you have questions, contact your financial advisor or your plan administrator.

A Good Plan Can Ease Transition to Retirement

When people talk about retirement planning, they’re usually talking about money. But there is another aspect that people often forget. What will you do with all that newfound free time?

Sure, after decades of hard work, thoughts of sleeping late and taking it easy seem pretty good. But retirement is a big transition, and many retirees don’t consider its potential psychological consequences.

steps to ease transition to retirement

Create a Plan and Schedule

While you may have some complaints about your job, it is an important part of your life. It helps define who you are and can give you a sense of accomplishment. It provides structure, mental stimulation and social interaction. Leaving the workforce creates a big void, and watching daytime TV or frequent trips to the grocery store may not be enough to fill that void. Empty or aimless hours can lead to boredom, disenchantment and even depression.

You may have a long list of things to do, places to go, books to read, but it won’t mean much if you don’t act. To successfully manage your time, you’ll need to actively plan and create a schedule. Set down how you will spend each day of the week, blocking out time for chores, social engagements, hobbies and exercise. Sticking to a schedule will give your days structure and give you a sense of purpose.

Stay Active and Engaged

For most people, staying busy and remaining socially engaged are essential to a satisfying retirement. That’s why some retirees go back to work full-time, while others opt for part-time or seasonal jobs.

But a retirement job doesn’t necessary mean continuing to do the same old thing. Retirement is an opportunity to reinvent yourself. Do something you’ve always wanted to do, something fun and challenging.

Hopefully, you’ve planned your retirement so you won’t need to work to meet basic needs, so your retirement gig won’t have to pay a lot. In fact, maybe the job for you is one that doesn’t pay at all, at least monetarily. There are countless organizations looking for volunteers, so it shouldn’t be hard to find opportunities that match your skills and interests.

Volunteering just a few hours a week will give you something to look forward to and keep you connected to the outside world. And studies show that it can improve both your mental and physical well-being.

Exercise Your Body and Brain

Regular exercise not only keeps you physically fit, it also increases your sense of well-being. Whatever you do to get exercise, make it part of your regular schedule. Consider taking a fitness class at a local gym, which also adds a social element to your workout. (And you can up the ante by trying something new, like a martial arts class.)

Don’t forget to exercise your brain. A course or workshop can help you discover a new side to yourself (the painter, the mystery writer, the master of topiary). You may want to enroll in classes at a local community college or even return to school full-time.

Whatever you do, make sure it’s part of a plan – a plan for a happier retirement.

Pension Verification Letters

As a retiree, you may find yourself needing a letter verifying your pension income — maybe for housing or as part of an application for the Home Energy Assistance Program (HEAP). There are four ways to get a pension verification letter.

Four Ways to Get a Pension Verification Letter

1. Retirement Online

Retirement Online is fastest and most convenient way to get a pension verification letter. First, sign in. Then, on your account homepage, in the ‘I want to…’ section, click the Generate Income Verification Letter link.

A pop-up box with a confirmation message will appear. Once you click OK, your pension income verification letter will open in a new browser tab, ready for you to print or save.

pension verification letter infographic

2. Email

You can email us your request using our secure contact form. Tell us what information you need, and be sure to include your daytime phone number, in case our customer service representatives have a question. In most cases, we’ll mail your letter in five to seven business days.

3. Phone

You can call us with your request at 1-866-805-0990 (518-474-7736 in the Albany, New York area). Our Call Center is open Monday through Friday, 7:30 am – 5:00 pm. As with email, we usually mail letters in five to seven business days.

4. Fax

You can also fax your request to 518-473-5590. Include your retirement or registration number, current address, signature and phone number in case we have questions. Tell us whether you want the letter mailed or faxed to you (provide a fax number).

Sending a Pension Verification Letter to a Third Party

At your request, we can send a letter verifying your pension income directly to a lending institution, housing authority, nursing home or other third party. However, because this information is confidential, we need your signed written permission.

If you decide you want us to send a letter to a third party, they must fax us a request and include a signed release from you giving us permission to release your information.

Designating Beneficiaries: An Important Decision

When you join NYSLRS, we ask you to designate one or more beneficiaries who may receive certain benefits if you die while working. But, don’t forget about your beneficiaries after you turn in your membership application. It’s important to review them periodically to make sure they reflect your current wishes.

Your beneficiaries can be anyone; you don’t need to choose family members. You can even name an organization, such as a charity or religious institution, or your estate. And, did you know there are two types of beneficiary that you can designate?

Types of Beneficiaries

You can name both primary and contingent beneficiaries:

  • Your primary beneficiary will receive any payable benefit. You can list more than one primary beneficiary, and if you do, they will share the benefit equally. You can also choose different percentages for each beneficiary, as long as they total 100 percent. (Example: John Doe, 50 percent; Jane Doe, 25 percent; and Mary Doe, 25 percent.)
  • Your contingent beneficiary will only receive the benefit if all your primary beneficiaries die before you do. Multiple contingent beneficiaries will share the benefit equally, unless you choose to divide the benefit among them differently.

How Do I Designate a Beneficiary?

Even though you designated a beneficiary when you first joined NYSLRS, you can update your beneficiaries any time.

  • The fastest way to view or update your beneficiaries is through Retirement Online. It’s a convenient and secure way to review your personal details, contact information and more. Register and sign in, then click Manage My Beneficiaries on the right, under I want to ….
  • You can also complete and mail us a Designation of Beneficiary form (RS5127). Be sure to sign and date the form, and have your signature notarized. The notary must include his or her notary expiration date, and your notary should not be one of your beneficiaries. We can’t accept a form with any alterations, including erasures or the use of correction fluid. You can name up to four primary and four contingent beneficiaries on the form. Please contact us if you want to designate more, because we cannot accept attachments.

Whether you change your beneficiaries online or by mail, be sure to include all of your beneficiaries. Your new beneficiary designations will replace all of your previously named beneficiaries. The changes will not take effect until we review and approve your designations.

More Information

You can read more about beneficiary designations in our Life Changes: Why Should I Designate a Beneficiary? publication. If you have any other questions, please contact us.

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.

 

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.

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).