Tag Archives: ERS

Dig into the NYSLRS Summer Reading List

Looking for some summer reading? Why not check out these publications from NYSLRS? They’re light on colorful characters and exotic settings, but what they lack in plot intrigue, they make up for in important retirement information.

summer reading

1. Retirement Plan for ERS Tier 3 and 4 Members (Articles 14 and 15)

More than 250,000 Tier 3 and 4 members of the Employee’s Retirement System (ERS) are covered by this plan. The publication explains some of the benefits and the services available to you, including a service retirement, a vested retirement, a disability retirement, death benefits and more. Read it now.

2. Retirement Plan for ERS Tier 5 Members (Article 15)

If you joined ERS from January 1, 2010 through March 30, 2012, you are in Tier 5. This booklet describes benefits for Tier 5 members in regular retirement plans. Read it now.

3. Retirement Plan for ERS Tier 6 Members (Article 15)

More than 178,000 Tier 6 ERS members are covered by this Plan. The publication explains some of the benefits and the services available to you, including a service retirement, a vested retirement, a disability retirement, death benefits and more. Read it now.

4. Life Changes: A Guide for Retirees

Already retired? As a NYSLRS retiree, you know that you will receive a monthly retirement benefit for life. However there may be other benefits available to you, as well as services that we provide retirees. This guide will answer many of the questions you may have and explain your responsibilities as a retiree. Read it now.

5. What If I Work After Retirement?

In most cases, NYSLRS retirees under 65 can earn up to $35,000 per calendar year in a public-sector job, but there are no restrictions if you work for a private-sector employer. If you plan to work while collecting your pension, you should read this booklet. Read it now.

Other Plan Booklets

Not covered by the retirement plans above? Maybe you’re a police officer, a firefighter, a sheriff or a correctional officer. You can still find you plan booklet on our Publications page. They’re great reading any time of year. If you’re not sure which plan covers your benefits, you can ask your employer or Contact Us.

What If I Leave Public Employment?

Most of us will change jobs over our lifetimes, and some of us will leave public employment before retirement. But if you leave the public workforce, what will become of your NYSLRS retirement benefits?

leave public employment

NYSLRS has published a booklet to provide guidance in that situation. What If I Leave Public Employment? outlines what happens with your benefits and details your rights and responsibilities. If you recently left public employment or plan to leave in the future, here are some key points the publication can help you understand.

If You Leave Public Employment, Will You Still Get a Pension?

If you’re vested, you can still collect a NYSLRS pension when you reach retirement age. Members in Tiers 1 – 4 become vested after five years of service; members in Tiers 5 and 6 become vested after ten years. Most members can apply for a pension as early as age 55, but their pension may be reduced if they take it before full retirement age (62 or 63).

What if You End Your Membership?

If you’re not vested, you can end your membership and get a refund of your contribution balance, which includes accumulated interest. After you have been off the public payroll for 15 days, you can request a refund by filing a withdrawal application.

If you don’t withdraw your contributions, they will continue to earn 5 percent interest for seven years. If you’re still off the public payroll after seven years, your membership will automatically end. Your contributions will be deposited into a non-interest account but will not be refunded to you automatically. You must file a withdrawal application to receive them.

If you end your membership, you will no longer be eligible for any NYSLRS benefits. There may also be tax consequences to withdrawing your contributions.

What are Your Responsibilities?

If you leave public employment, but remain a member, it’s your responsibility to notify us of any address changes. You will also need to keep your beneficiary information current.

More Information

Please read What If I Leave Public Employment? to get the full story on leaving public employment.

Dual Membership in NYSLRS

The New York State and Local Retirement System (NYSLRS) consists of two retirement systems: the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS). Your job title determines what system you’re in. In some cases, however, it’s possible to have a dual membership, to be a member of both systems.

How Does Dual Membership Work?

dual membership in NYSLRSLet’s say you work as a firefighter, so you’re a member of PFRS. You decide to take on a part-time job as a bus driver for your local school district. Your school district participates in ERS, so you’re eligible for ERS membership. You fill out the membership application, and now you’re a member of both ERS and PFRS. The date you join each system determines your tier in each membership.

Implications of Dual Membership

As a member of both systems, you’d have separate membership accounts. Let’s look again at our fire-fighting bus driver example. While working as a firefighter, you make any required contributions and earn service credit toward your PFRS pension only. The same is true for your work as a bus driver—your required contributions and earned service credit only go toward your ERS pension, not your PFRS pension.

There are other implications to dual membership. Assuming you’re vested in both memberships and meet the service credit and age requirements, you could retire and collect a pension from both systems. You’d need to file separate retirement applications for ERS and PFRS, and we’d calculate each pension separately. We’d calculate your ERS pension using the final average earnings (FAE) you earned as a bus driver and your PFRS pension using the FAE from your time as a firefighter.

And, since you’d have both an ERS pension and a PFRS pension, you would need to choose a beneficiary for each in the event of your death.

Questions?

You’ll want to make sure to know the details of your retirement plan in each system. If you have questions about dual membership, or want to discuss your particular situation when you decide to retire, please contact us.

Avoiding Scams During the COVID-19 Pandemic

During this time of crisis, it’s important to be on the alert for those who would attempt to defraud you or your family. Here are some consumer warnings and safety tips from the Federal Trade Commission:  

  • Ignore offers for vaccinations and home test kits. Scammers are selling products to treat or prevent COVID-19 without proof that they work.
  • Be wary of ads for test kits. Most test kits being advertised have not been approved by the FDA, and aren’t necessarily accurate.
  • Hang up on robocalls. Scammers are using illegal robocalls to pitch everything from low-priced health insurance to work-at-home schemes.
  • Beware of emails claiming to be from the Centers for Disease Control (CDC) or the World Health Organization (WHO).
  • Do your homework when it comes to donations. Never donate in cash, by gift card or by wiring money.
scams

Reliable Sources of COVID-19 Information

Only rely on trusted sources for information about COVID-19. Don’t click on links from sources you don’t know. Here are some good online sources:

Reporting Fraud

If you are a victim of fraud, the New York Department of State’s Division of Consumer Protection may be able to help. You can call their Consumer Helpline at 1-800-697-1220 or visit their website.

The National Center for Disaster Fraud, which is part of the U.S. Department of Justice, is the federal agency responsible for investigating and prosecuting fraud schemes related to natural and man-made disasters. Call 1-866-720-5721.

You can report allegations of fraud involving New York State taxpayer money to the Office of the New York State Comptroller. Call 1-888-672-4555 or report government fraud online.

Protecting Your Identity Online: Tips for Secure Passwords

Secure Passwords

The rules for password creation have changed in recent years, so you may have to unlearn some of the things you’ve been taught in the past about secure passwords.

The National Institute of Standards and Technology (NIST), the federal agency that created the original password guidelines, recently revised those guidelines. Its current recommendations are based on research on both the habits of users and the techniques of hackers. Here are some of their findings:

  • Length is a major factor in a password’s strength, so the longer the password, the better.
  • Complex passwords, with a mix of character types, are hard for people to remember, and do little to deter hackers.
  • Strong passwords can be created from short phrases that are easy for you to remember, but would be meaningless to anyone else.
  • Passwords may be used indefinitely as long as they’re strong and have not been compromised. Obviously, if you have an account with a company that just had a data breach, you’ll want to change that password.

Other Ideas on Secure Passwords

Changing passwords every 30, 60 or 90 days was recommended for thwarting hackers, but some security experts now question that tactic. Changing passwords on a regular schedule may have little security value and can lead to bad habits. Research has shown that people tend to make only minor changes when updating their passwords or create weak passwords that are easier for them to memorize. You’re better off creating a strong password, memorizing it and holding on to it.

While NIST has changed some of its guidelines, some of the old ones still apply. Don’t share your secure passwords with anyone, or leave them on sticky notes by your computer. Create unique passwords for important accounts, such as your bank account and your email, and avoid bad passwords such as “password,” “12345678,” “qwerty” and “iloveyou.”

How Tier 6 Contribution Rates Can Change

Most members of the New York State and Local Retirement System (NYSLRS) contribute a percentage of their earnings toward their pensions. For Tier 6 members, that percentage, or contribution rate, can vary from year to year. If you joined NYSLRS on or after April 1, 2012, you are in Tier 6.

Tier 6 contribution rate

When Tier 6 Contribution Rates are Determined

Tier 6 contribution rates are calculated annually. New rates become effective each year on April 1, the beginning of the State’s fiscal year. Once your contribution rate is set for a fiscal year, it will not change for the rest of that fiscal year. However, depending on your earnings, it may change the following year.

How Your Tier 6 Contribution Rate is Calculated

As a Tier 6 member, your contribution rate is based on how much you earn. Changes in your earnings may result in changes to your contribution rate.

For the first three years as a NYSLRS member, your contribution rate is based on an estimated annual wage we receive from your employer. After three years, the rate is based on what you actually earned two years prior. The minimum contribution rate is 3 percent of your earnings, and the maximum is 6 percent.

See our Member Contributions page for additional information.

Learn More

The percentage you contribute toward your pension while you work does not affect the pension amount you may receive in retirement. Your NYSLRS pension is a lifetime benefit based on your retirement plan, years of service credit and final average salary. You can learn more about your pension by reading your plan booklet on our Publications page. For help finding the right plan book, read our blog post, Knowing Your Retirement Plan is the Key to Retirement Planning. For more information about ERS Tier 6 memberships, read our blog post, What to Know About ERS Tier 6.

Power of Attorney

We continue to receive reports of NYSLRS members who have become ill, or seriously ill, as a result of COVID-19. It is vitally important that these members, and their loved ones, be aware of the provisions contained in a NYSLRS Power of Attorney.

NYSLRS provides a Special Durable Power of Attorney form that is specific to retirement transactions and meets all New York State legal requirements. It can be filed with NYSLRS at any time so the designated agent can act immediately in case of emergency, hospitalization or unexpected illness. There’s no need to wait until something happens to file a NYSLRS POA form.

father and son discuss power of attorney

A power of attorney (POA) allows a person to designate someone else to act on their behalf. The designated person, referred to as an “agent,” could be a spouse, another family member or a trusted friend.

A person can designate more than one person as an agent, and can decide if those agents act together or separately. In addition to an agent or agents, a person may designate “successor agents” to act on an individual’s behalf if the person designated as the “primary” agent is unable or unwilling to serve. Successor agents can be named using the “Modifications” section (g) of the POA.

Why is a NYSLRS POA Important?

Normally, NYSLRS won’t release benefit information to anyone without your permission — even to a spouse. With a POA on file, we would be able to discuss your benefits and conduct business with the agent you appointed. This could be especially important now as we deal with the coronavirus pandemic. If you suddenly become ill and are unable to contact us personally, your agent would be able to take care of your retirement needs for you.

What Can Agents Do?

Agents can file applications and forms, such as service or disability retirement applications. They can get account-specific benefit information, request copies of retirement documents, update addresses or phone numbers or take out loans. For retirees, agents can change the amount withheld from pensions for taxes.

It’s important to note that the NYSLRS POA form only covers Retirement System transactions. It does not authorize an agent to make health care decisions or changes to a Deferred Compensation plan.

Special Authority

If you use the NYSLRS POA form, and your agent(s) or successor agent(s) is your spouse, domestic partner, parent or child, they have “self-gifting authority.” That means they can direct deposit money into a joint bank account you have with them, designate themselves as a beneficiary to your pension benefits, and/or choose a retirement payment option that provides for a beneficiary after your death.

If your agent(s) or successor agent(s) is not your spouse, domestic partner, parent or child, they do not automatically have “self-gifting” authority, which means they cannot name themselves as a beneficiary or direct deposit money into a joint bank account with their name on it. If you wish to give an agent(s) or successor agent(s) ”self-gifting” authority, you should specifically indicate so in section (g) “Modifications” of the POA. In that section you should identify your agent(s) or successor agent(s) by name and state the specific authority granted to them.

Please note only biological or legally adopted children are considered your “child” for NYSLRS POA purposes. All other children must be granted specific authority in section (g) “Modifications.”

How to Submit a NYSLRS POA Form

If your decision to submit a NYSLRS POA is related to the COVID-19 emergency, please note that on the form in section (g) “Modifications.” If you file a retirement application, consider submitting a NYSLRS POA with your application.

You can scan and email a copy of your POA to NYSLRS using the secure email form on our website.

You can also mail your POA (original or photocopy). You may wish to mail it certified mail, return-receipt requested, so that you know when NYSLRS receives it. The address is:

NYSLRS
110 State Street
Albany, NY 12244-0001.

Find Out More

A power of attorney is a powerful document. Once you appoint someone, that person may act on your behalf with or without your consent. We strongly urge you to consult an attorney before you execute this document.

Please read the Power of Attorney page on our website for additional information.

Managing Your NYSLRS Loan Payment

During this time of economic uncertainty, you may be considering how you can lower your NYSLRS loan payment. We understand your concerns and want to provide you with information that can help.

loan payments

How to Lower Your Loan Payment

You may be able to lower your payment amount as long as you still pay the minimum amount required to repay your loan. There are two ways to request a lower loan payment:

  • Manage Your Loan Payment with Retirement Online
    Once you sign in to your account, go to the My Account Summary section and click “Manage My Loans.” You’ll be able to check your payoff balance and minimum payment (payroll deduction) amount as well as change your payment amount.
  •  
  • Send a Loan Payment Change Form
    Fill out our Loan Payment Change form (RS5521) and send it to:
    • NYSLRS
      110 State Street
      Albany, NY 12244

NYSLRS Loan Payments are Set by Law

Loan payments must be paid:

  • At least quarterly (NYSLRS will calculate your minimum payment when you take a loan); and
  • In a sufficient enough amount to repay the loan within five years from the date it was issued.

These are requirements established by both NYS Retirement & Social Security Law (RSSL) and the Internal Revenue Service (IRS). If you are on payroll, your loan will be repaid through payroll deductions.

Can Loan Payments be Deferred?

In certain instances, you may be eligible for a deferment of your loan payment.

If you are on an authorized leave of absence with your employer, or if you have been temporarily furloughed, the IRS allows for the suspension of loan payments for up to one year from the date your leave began or until you return to the payroll (whichever occurs first). To receive this deferment, your employer must send us a fax (518-486-9877) on their letterhead that indicates the date your leave or furlough began and when they expect it will end.

It’s important to note that if you defer your loan payments during an authorized leave of absence or furlough, your payments will need to be recalculated and increased upon your return. This will ensure your loan will be paid off within the five-year period.

Active military personnel may also be able to defer their loan payments. The five-year repayment period for these members can be extended, however your loan balance will continue to accrue interest and you must resume payments once you end active duty. Visit our Loans page for more information.

What Happens If You Go Off Payroll?

If you go off payroll, to avoid your loan going into default, you must make minimum payments at least quarterly and repay the loan within five years. To avoid a default, contact us as soon as you leave public employment, so we can tell you the exact amount you need to pay. If you are in danger of defaulting on your loan, we will notify you. Retirement Online is the easiest way to make loan payments if you are off payroll. Read the Make Lump Sum Payments information on our Loans page for details.

tax

Taxes and Your NYSLRS Pension

Tax season is here again.

In late January, NYSLRS mailed tax information to retirees (and some members and beneficiaries) so they can file their taxes.

1099-Rs

NYSLRS pensions are not subject to New York State or local income taxes, but in most cases they are subject to federal taxes. In January, we mailed 1099-R tax forms to almost 500,000 retirees who receive taxable benefits. We also mailed 1099-Rs to beneficiaries who received taxable income from NYSLRS in 2019, members who have taken taxable NYSLRS loans or have defaulted on their loans, and those who ended their membership and withdrew their contributions in 2019.

tax info - 1099-R tutorial

A 1099-R shows:

  • The total benefit paid to you in a calendar year.
  • The taxable amount of your benefit.
  • The amount of taxes withheld from your benefit.

If you didn’t get your 1099-R, you can request a reprint. This year, reprints will be available for calendar years 2017, 2018 and 2019. Your 1099-R will be mailed to the address we have on file for you. Sign in to Retirement Online to check or update your mailing address before requesting a reprint.

If you have questions about the information on the form, we feature an interactive 1099-R tutorial on our website. It walks you through a sample 1099-R and offers a short explanation of specific boxes on the form.

Changing Your Federal Tax Withholdings

If you need to make changes to your federal withholding, you can send us a W-4P form at any time. You can use this form to change your withholding status, increase or decrease the number of your exemptions, or request that an additional amount be withheld.

You can use our federal tax withholding calculator to see how these changes would affect your withholding.

Please note: If you change your withholding, it may take a few months before the changes are reflected in your pension payments. You can look up your current payment breakdown, including tax withholding, using Retirement Online.

ERS Tier 6

ERS Tier 6 Member Milestones

As an Employees’ Retirement System (ERS) Tier 6 member, your years of service are critical to your benefits. As time goes by, and you earn service credit, you’ll reach a number of career milestones. These milestones are points where you become eligible for certain benefits or your existing benefits improve. Understanding these milestones will help you better plan your career and retirement.

In ERS Tier 6, you reach your first milestone on your first day of membership. This milestone covers you for certain job-related death and disability benefits. (You can learn more about them in your Tier 6 retirement plan booklet.)

ERS Tier 6

10 & 20 Years Make a Big Difference

For all NYSLRS members, there is one critical milestone: becoming vested. Being vested means that you have earned the right to a pension, even if you leave public employment before retirement age. ERS Tier 6 members become vested after they earn 10 years of service credit.

For most ERS Tier 6 members, another big milestone is the 20-year mark, when your retirement benefit improves significantly. If you retire with less than 20 years of service, you earn 1.66 percent of your final average salary (FAS) for each year of service. At 20 years, you receive 35% of your FAS. After 20 years, you’ll earn an additional 2 percent of your FAS for each year of service beyond 20.

ERS Tier 6 Special Plans

For ERS Tier 6 members in special plans, such as corrections officers, many of the milestones are the same. For example, you will become vested with 10 years of service credit.

But there are also major differences. Most importantly, correction officers in the special 25-year plan can retire after 25 years regardless of age. You can find more information in your retirement plan booklet.