Tag Archives: beneficiary

Where Are Your Important Documents?

We accumulate a lot of important documents over a lifetime — things such as birth certificates, diplomas, deeds, wills, insurance policies and more. If you’re like many people, you may have papers stuffed in drawers, filing cabinets or boxes in the attic. If you need an important document, will you be able to find it? What’s more, when you pass away, will your loved ones be able to find what they need?
where are your important documents?

Organize Your Important Documents

Important documents should be kept in a secure but accessible place in your home. This includes personal documents, such as your passport, birth certificate, marriage certificate, will and burial instructions. You should also include information about your NYSLRS retirement benefits, income taxes, bank accounts, credit cards and online accounts. Important contact information, such as the names and phone numbers of your attorney, accountant, stockbroker, financial planner, insurance agent and executor of your will should also kept in a secure location.

Our fillable form, Where My Assets Are, can help make organizing your important documents a little easier. It will help you or your loved ones locate these documents when they are needed. It’s a good idea to review and update this information regularly.

Be aware that a safe deposit box may be sealed when you die. Don’t keep burial instructions, power of attorney or your will in a safe deposit box, because these items may not be available until a probate judge orders the box to be opened. However, a joint lessee of the box, or someone authorized by you, would be permitted to open the box to examine and copy your burial instructions.

Review Death Benefits and Beneficiary Designations

Depending on your tier and retirement plan, your beneficiaries may be eligible to receive a death benefit. Visit our member and retiree death benefit pages for more information.

Then, sign in to your Retirement Online account to review your named beneficiaries and update their contact information if needed. From your Account Homepage, click “View and Update My Beneficiaries” to get started.

Please note, when a NYSLRS member or retiree dies, it is important that survivors report the death to NYSLRS as soon as possible. Before any death benefits can be processed or paid, NYSLRS will need an original, certified death certificate.

Know Your Benefits: Death Benefits

NYSLRS membership provides more than just retirement benefits. For most members, if you die while in active service, your beneficiary may be eligible to receive a death benefit. Here is an overview of member death benefits. If you are retired, visit our Death Benefit page for retirees to learn about your available benefits.

death benefits

Types of Death Benefits

Most members who die while they’re still working will leave their beneficiaries what’s called an “ordinary death benefit.” This is a lump sum payment that’s usually equal to one year of your earnings per year of service, up to a maximum of three years. 

Generally, to leave your beneficiaries this death benefit, you must have at least one year of service credit and your death must occur while you are on the public payroll.

Some members who die because of an on-the-job accident (not due to their own willful negligence) may leave their beneficiary an accidental death benefit. The accidental death benefit is a pension payable to your spouse. Other beneficiaries, as specified by law, may be eligible if there is no spouse.

  • For Employees’ Retirement System (ERS) Tier 4, 5 and 6 members, the benefit would be 50 percent of your earnings from your last year of service.
  • For most other members, the benefit would be 50 percent of your final average earnings (less any workers’ compensation benefit).

There is no minimum service credit requirement to leave an accidental death benefit.

The specific death benefits that may be available to your beneficiaries depend on your tier and retirement plan. Find Your NYSLRS Retirement Plan Publication and check it for specific benefit amount and eligibility information.

Note: For public employees who contract COVID-19 on the job and die from COVID-19, their beneficiaries may be eligible for an enhanced death benefit. Find out more about the Enhanced Death Benefit for Survivors of COVID-19 Victims.

Review and Update Your Beneficiaries

You should periodically review your beneficiary designations. Life circumstances sometimes change, and the beneficiary you may have named before might not be the one you would choose today. You should also make sure your beneficiary’s contact information is up to date so we can find them when needed.

Retirement Online is the best way to manage your beneficiary information. Sign in to Retirement Online today and click “View and Update My Beneficiaries” to review your named beneficiaries, and update them if needed.

Reporting a Death

NYSLRS cannot pay out death benefits until after we are notified of a member’s death and have a certified copy of the death certificate. The fastest way for survivors to report a member’s death to NYSLRS is using our online form on our website. Survivors can also upload a copy of the certified death certificate, which enables us to start reaching out to the beneficiary. It’s important to talk with your family about your benefits and how to report your death to NYSLRS.

Payment of Death Benefits

NYSLRS will reach out to your beneficiaries on file and send them the application and instructions for receiving benefits. NYSLRS can pay death benefits once it receives the required documentation.

Some Pension Payment Options Can Provide a Lifetime Benefit for a Loved One

When you apply for a NYSLRS pension, you’ll need to choose a payment option, which determines how your retirement benefit will be paid. All options will provide you with a monthly benefit for the rest of your life. The single life allowance option pays the highest monthly benefit, but all payments stop at your death. If you choose a different option, you may be able to provide a lifetime benefit to a beneficiary.

You can apply for service retirement through Retirement Online. One of the benefits of applying online is that you’ll see a projection of your pension payment under each option before you’re asked to select one. If you submit your retirement application by mail, you’ll need to mail a paper option election form.

payment options

Joint Allowance Payment Options

In exchange for a reduction in your monthly payment, joint allowance options pay your beneficiary all or part of your pension after you die. The amount of the reduction in your pension is based on your life expectancy and the life expectancy of your beneficiary. The reduction is permanent even if your beneficiary dies before you do.

You can only choose one beneficiary under a joint allowance option, and you can’t change your beneficiary after you retire, regardless of the circumstances. If your beneficiary dies before you, all payments will stop when you die.

Pop-Up Payment Options

Like joint allowance options, pop-up options allow you to provide a lifetime payment for a beneficiary after your death. But, if your beneficiary dies before you, your future monthly payments will increase to the amount you would have been receiving had you chosen the single life allowance at retirement. (The pop-up only affects future payments. You would not be entitled to any retroactive payments.)

The monthly reduction in your benefit will be greater if you choose a pop-up option over a regular joint allowance.

Payment Options for Multiple Beneficiaries

There are options that allow you to leave a monthly payment to more than one beneficiary, and options that leave a benefit for a certain amount of time. For more information, visit our Payment Option Descriptions page.

Consider Your Decision Carefully

There are many factors that might influence your payment option choice. Your age and overall health, the age and health of your partner, and your loved one’s access to other financial resources should all be considered.

You only have 30 days after the last day of your retirement month to change your option. After that date, you cannot change your option for any reason.

An important step in retirement planning is finding out how much you can expect to receive. Most members can use Retirement Online to create a pension estimate based on the salary and service information we have on file for them. You can enter different retirement dates and beneficiaries to see how they affect your potential benefit and pension payment options. Go to the ‘My Account Summary’ section of your Retirement Online Account Homepage and click the “Estimate my Pension Benefit” button. You can also ask NYSLRS to send you a benefit estimate that calculates your pension under the various options.

Other Death Benefits

Most NYSLRS retirees are eligible for a post-retirement death benefit if they retire directly from payroll or within one year of leaving covered employment. Eligibility depends on your retirement plan and tier. If you are eligible, your beneficiary will receive a one-time, lump sum payment. The amount of the post-retirement benefit is a percentage of the death benefit available during your working years. For information about this and other potential death benefits, please visit our Death Benefits for Retirees page.

Can I change my beneficiary?

Can You Change Your Beneficiary After You Retire?

Can you change your beneficiary after you retire? That depends. If it’s the beneficiary for your pension, in most cases the answer is no. If you choose a pension payment option that provides a lifetime benefit for a surviving beneficiary, you cannot change that beneficiary, even if they die before you do. If your retirement plan provides a one-time, lump sum death benefit after you retire, you can change your beneficiary (or beneficiaries) for that benefit.

Can you change your beneficiary?

Available Pension Payment Options

At retirement, you will choose from a variety of pension payment options. After your pension becomes payable, you have up to 30 days to change your option. After that, you cannot change your pension payment option for any reason.

  • If you don’t want to leave a lifetime benefit to someone else, the Single Life Allowance option may be right for you, but you won’t be able to change your option and add a beneficiary later. For example, if you’re single when you retire and marry during retirement, you cannot change your option to one that provides a continuing benefit for your spouse.
  • If you want to leave a lifetime benefit to someone, there are several Joint Allowance options you can choose. After your death, if your beneficiary survives you, they will continue to receive all or part of your pension (depending on the specific option you choose) for the rest of their life. For these options, you can only name one beneficiary, and you cannot change that beneficiary after the 30-day window.
  • There are payment options that allow you to change your beneficiary. For example, with the Five Year Certain or Ten Year Certain options, you can change your beneficiary at any time, but these options only provide a short-term benefit for a survivor.

The Post-Retirement Death Benefit

Your pension is not your only NYSLRS retirement benefit. Most NYSLRS retirees are eligible for a death benefit if they retired directly from payroll or within one year of leaving covered employment. This post-retirement death benefit is a one-time, lump-sum payment. You can change your beneficiary for this benefit at any time, and your beneficiaries for this benefit do not have to be the same as your pension payment option beneficiary.

Visit our Death Benefits page for retirees for information about how your post-retirement death benefit is calculated and how to update your beneficiaries if you are retired.

If you have questions about beneficiaries, death benefits or pension payment options, please contact us.

Prepare Your Affairs and Survivors

After you’re gone, will your loved ones know how to handle your affairs? Will they know where to find your important documents, such as your will? Will they be able to make sense of your finances? Putting these affairs in order now can better prepare your survivors during an already difficult time.

prepare your affairs and survivors

Organize Your Documents

The first step to putting your affairs in order is collecting assorted records, certificates and other paperwork in a secure place. You’ll also want to write down names and phone numbers for any friends or business associates who could be helpful (like your attorney, accountant, insurance agent and the executor of your will).

To help your survivors find these important documents, fill out a Where My Assets Are (VO1848) form. Review this list and update it as needed.

Talk to Your Loved Ones

You may not feel comfortable discussing your death, but all your preparation won’t do any good if you keep your wishes a secret. Once you’ve collected your files and put together a list, let your potential survivors know where your documents are and provide them with copies of your asset list.

Discuss your finances with your loved ones, including your children, if any of the money matters involve them. Explain your NYSLRS benefits (such as your death benefits) and let them know how to report your death to NYSLRS. They can complete the NYSLRS Report a Death Form or call us at 866-805-0990. Death benefits cannot be paid until we have a certified death certificate.

Be sure to also discuss your funeral and burial preferences and let your family know about any arrangements you have already made.

Other Steps to Take When Organizing Your Affairs

You may have already taken care of some of these steps as part of your estate planning, but it never hurts to go back and check to make sure they still reflect your wishes.

  • Work with an attorney to prepare a will or trust.
  • Review your beneficiary information in Retirement Online and make sure we have the correct contact information for your beneficiaries.
  • Consider advance directives, such as a durable power of attorney, living will, health care proxy or do-not-resuscitate order. If you have minor children, you may wish to name a guardian for them. If you have a child with a disability, consult a professional who can help you navigate Medicaid and Medicare.
  • Keep your loved ones apprised of any changes to your situation that may affect them.

Read Getting Your Affairs in Order and A Guide for Survivors and share this publication with your potential survivors. The second half provides information for your survivors and explains what to do and who to contact if a loved one dies.

NYSLRS – One Tier at a Time: PFRS Tier 5

When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. There are six tiers in the Employees’ Retirement System (ERS) and five in the Police and Fire Retirement System (PFRS). Each tier has a different benefit structure established by New York State legislation.

Our series, NYSLRS — One Tier at a Time, walks through each tier to give you a quick look at the benefits in both ERS and PFRS. Today’s post looks at PFRS Tier 5. Anyone who joined PFRS from January 9, 2010 through March 31, 2012 is in Tier 5. There were 1,967 PFRS Tier 5 members as of March 31, 2021, making up 5.6 percent of PFRS membership.

About Special Plans

Under a regular plan, you need to reach certain age and service requirements to receive your NYSLRS pension. If you’re covered by a special plan, there is no age requirement, and you can receive your pension after completing 20 or 25 years of service.

Nearly 80 percent of PFRS members are in plans covered under Sections 384, 384-d, 384-e or 384-f of the Retirement and Social Security Law. Read our Police and Fire Retirement System blog post for information about different PFRS plans.

Check out the graphic below for the basic retirement information for PFRS Tier 5.

PFRS Tier 5

If you’re a PFRS Tier 5 member, you can find detailed information about your benefits in the retirement plan booklets listed below:

For special plans under miscellaneous titles, please visit our Publications page.

Check out other posts in the PFRS series:

Choosing Your Pension Payment Option

When you retire from NYSLRS, you’ll need to decide how you want to receive your pension benefit.

You’ll have several pension payment options to choose from. All of them will provide you with a monthly benefit for life. Some provide a limited benefit for one or more beneficiaries after you die. Others let you pass on a monthly lifetime pension to a single beneficiary. Each option pays a different amount, depending on your age at retirement, your beneficiary’s age and other factors.

That’s a lot to think about, so let’s make this clearer with an example.

Pension Payment Option Example

Meet Jane. Jane plans to retire at age 60, and she has a husband, a granddaughter and a grandson who are financially dependent on her. First, Jane needs to decide whether she wants to leave a benefit to someone after she dies. She does.

That eliminates the Single-Life Allowance option. While it pays the highest monthly benefit, all payments stop when you die.

Jane considers naming her grandchildren as beneficiaries to help pay for their college education.

The Five Year Certain and Ten Year Certain options don’t reduce her pension much, and they allow her to name more than one beneficiary. If Jane dies within five or ten years of retirement, depending which option she chooses, her grandkids would split her reduced benefit amount for the rest of that period.

However, the Five and Ten Year Certain options wouldn’t be lifetime benefits, and since her husband doesn’t have his own pension, she decides to leave him a lifetime pension benefit and look into a tax-deferred college savings plan for her grandkids instead.

There are several options that leave a lifetime benefit. Under these options, you can only name one beneficiary. Benefit amounts are determined based on the birth dates (life expectancy) of both the retiree and their beneficiary, so Jane will receive less of a pension reduction leaving a benefit to her husband than she would if she were to consider leaving a lifetime benefit to a grandchild.

Under the Joint Allowance — Full or Joint Allowance — Half option, if a retiree dies, depending which option they choose, their beneficiary would receive half or all of their reduced benefit for life.

Under the Pop-Up/Joint Allowance — Full or Pop-Up/Joint Allowance — Half option, if a retiree dies, depending which option they choose, their beneficiary would also receive half or all of their reduced benefit. These options reduce the pension a little more, but they have an advantage: If the retiree outlives his or her beneficiary, the retiree’s monthly payment will “pop up” to the maximum payable under the Single-Life Allowance option.

As you plan for your own retirement and whether you’ll leave a pension benefit to a beneficiary or beneficiaries, you may also want to consider questions such as:

  • Do you qualify for a death benefit?
  • Do you have life insurance?
  • Do you have a mortgage, unpaid loans or other monthly payments that will have to continue to be paid if you die?

These and other factors can significantly impact your retirement planning.

To find out more about pension payment options, check your retirement plan booklet on our Publications page. Most NYSLRS members can also create their own pension estimate in minutes using Retirement Online. You can enter different retirement dates to see how those choices would affect your benefit. When you’re done, you can print your pension estimate or save it for future reference.

Five and Ten Year Pension Payment Options

NYSLRS pension payment options are designed to fit your needs after you retire. Understanding these options will make it easier for you to choose the one that’s right for you.

While the basic option, the Single Life Allowance, would provide you with a monthly payment for the rest of your life, all payments would end at your death. Other options, in exchange for a reduced benefit, allow you to provide for a spouse or other loved one after you’re gone.

Five and Ten Year Certain options don’t provide a lifetime benefit for a beneficiary, but they have advantages you may want to consider.

pension payment options

How These Pension Payment Options Work

The Five Year Certain or Ten Year Certain options provide you with a reduced monthly benefit for your lifetime. If you die within the five- or ten-year period after your retirement, your beneficiary would receive pension payments for the remainder of the five or ten years. If you live beyond the five- or ten-year period, your beneficiary would not receive a pension benefit upon your death.

Let’s say you choose the Five Year option. If you die two years after retiring, your beneficiary will receive a benefit for three years. If you choose the Ten Year option, and die after two years, your beneficiary will get a benefit for eight years. In either case, your beneficiary would receive the same amount you were receiving, though they would not be eligible for any COLA increases.

Another feature of these plans is that you can change the beneficiary at any time within the five- or ten-year period.

Whatever your situation, you should review the payment options and choose carefully. Visit our Payment Option Descriptions page for details about all available pension payment options. For a better idea of how these payment options would work out for you and your beneficiary, try our online Benefit Calculator.

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.

 

Know Your Benefits: Disability Retirements

Many of us dream about retirement, but not one of us pictures leaving the workplace because we can’t perform our duties anymore. Yet the truth is debilitating medical conditions do happen. Though we hope you never have to use them, NYSLRS members have certain benefits available should you become permanently disabled from performing the duties of your job.

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

Disability Retirements

Benefits

Most members are eligible for what’s called an ordinary disability retirement benefit. Usually, it provides whichever is greater:

  1. 1.66 percent of your final average salary (FAS) for each year of credited service; or
  2. 1.66 percent of your FAS for each year of credited service, plus 1.66 percent of your FAS for each year of service you might have earned before age 60, up to one-third of your FAS.

To qualify for an Article 15 disability retirement benefit, you must have at least ten years of credited service, unless your disability results from an accident you sustain on the job. If your disability results from an on-the-job accident, not due to your own willful negligence, there is no minimum service requirement.

Some members have plans that may provide an accidental disability retirement benefit. The benefit amount varies depending on your system (Employees Retirement System or Police and Fire Retirement System), tier and plan. It’s a lifetime benefit, but may be reduced by amounts received from workers’ compensation or Social Security. There is no minimum service requirement for an accidental disability retirement.

“Accident” has a special meaning when used in connection with Retirement System disability benefits. Whether an incident is an “accident” is determined on a case by case basis, using court decisions for guidance.

Members of the Police and Fire Retirement System as well as some members of the Employees Retirement System, such as sheriffs and correctional officers, may be entitled to a performance-of-duty disability benefit. The benefit amount and eligibility requirements vary depending on your system, tier and plan.

Filing

You, your employer, or someone you authorize may file a disability application on your behalf. If you think you might be eligible for a disability retirement, you may want to file your application sooner, rather than later, because there are strict filing deadlines that must be met. If you meet the requirements for a service retirement too, you can apply for both at the same time. If your disability application is approved, you will be able to choose which benefit you accept.

World Trade Center Presumption

If you participated in World Trade Center rescue, recovery or clean-up operations, you may be eligible to apply for a benefit under the World Trade Center Presumption Law. The deadline for members to file a notice with NYSLRS has been extended to September 11, 2018.

Resources/More Information

For specific benefit and eligibility information, be sure to read your retirement plan booklet on our Publications page. Also, check out our Disability Retirements page and our VO1802 Life Changes: Applying for Disability Retirement booklet. You can reach our Call Center by email using our secure contact form or toll-free at 1-866-805-0990 (518-474-7736 in the Albany, New York area).