Category Archives: Retirees

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

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).

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.

After You Retire

We’ve written a lot about preparing for retirement — how you should purchase any credit for past service, get a pension estimate, prepare a retirement budget, and more. But, what about after you retire? “So long, NYSLRS! Just keep the monthly payments coming.” Is that it?

Not exactly.

Sign Up for Retirement Online

We recently launched the new Retirement Online, a secure site that allows you to check important NYSLRS information, like the deductions from your latest payment and a summary of your benefits. You can also view or update beneficiaries and generate income verification letters right from your computer.

To access Retirement Online, visit the NYSLRS home page, then click “Register” or “Sign In.”

If You Move, Let Us Know

The United States Postal Service usually won’t forward pension checks to another address. (You may want to sign up for our direct deposit program.) But, pension payments aside, there are other things you’ll want from us once you retire. If we have your correct address on file, you’ll be sure to receive:

  • Your 1099-R form. Your pension isn’t taxed by New York State, but it is subject to federal income tax.
  • Your Retiree Annual Statement. It’s a helpful reference that spells out the benefits, credits and deductions you receive each year.
  • Any official notifications.
  • Your Retiree Notes

The fastest way to update your address is through Retirement Online. You can also mail a signed letter (with your name, old address, new address, date of change and retirement registration number) to:

NYSLRS
Attn: Pension Services
110 State Street
Albany, NY 12244-0001

Keep Your Beneficiaries Current

Reviewing your beneficiary designations periodically is important. By keeping them up to date, you ensure that any post-retirement death benefit will be distributed to your loved ones according to your wishes. You can use Retirement Online to change your death benefit beneficiaries at any time. Or, contact our Call Center, and we will send you the necessary form. If you aren’t retired yet, submit a Designation of Beneficiary form (RS5127).

Keep Your Loved Ones Informed

Your family or friends have to know to notify us when you die, so we can pay out any benefits to your designated beneficiaries. They can phone our Call Center or notify us by mail. Either way, we will also need a certified copy of your death certificate. You and your loved ones can find more information in our Getting Your Affairs in Order and a Guide for Survivors (VO1874) publication.

Life Changes: A Guide for Retirees (VO1705)

Check out this publication for information about other benefits you may be entitled to and the services we offer retirees.

Four Facts about Divorce and Your Pension

Courts consider pensions marital property. So, if you file for divorce, a judge may award your ex-spouse part of your pension or other NYSLRS benefits. The process for dividing retirement assets after a divorce can be complex. Here are four things you need to know:

1. NYSLRS Requires a DRO

To divide your NYSLRS benefits, we need a domestic relations order (DRO). This court order, issued after a final judgment of divorce, gives us specific instructions on how your benefits should be distributed. NYSLRS provides on online fillable DRO that complies with the plan’s requirements for implementation. You are not required to use the online form; however, the System will give priority review to these DROs since the language is pre-approved.

2. A Judge has to Approve Your DRO

Before we can implement a DRO, a trial court judge must review and sign it, and you need to file it with the appropriate County Clerk’s Office. That can be a lengthy process; our Matrimonial Bureau can check your DRO for compliance with the law before you submit the draft order to the court. This way, if the DRO does not meet the requirements, you will have a chance to make revisions.

Once a judge does sign off, we’ll need a certified copy of the DRO and your judgment of divorce. We start payments to your ex-spouse once we’ve calculated and finalized your retirement benefit. If we receive the DRO and judgment before we finalize your retirement benefit, we’ll make retroactive payments back to your date of retirement.

3. Some Beneficiary Designations are Revoked

Reviewing your beneficiary designations periodically is always important, but after a divorce, it’s essential to make sure your benefits will be distributed according to your wishes. As of July 7, 2008, beneficiary designations for certain benefits are revoked when a divorce, annulment or judicial separation becomes final. Please read our Guide to Domestic Relations Orders and review our DRO FAQs before you finalize your divorce.

4. Contact an Attorney with DRO Experience

This last one is not a fact, but it’s a good idea. A lawyer, who’s worked with DROs previously, can help ensure the DRO you submit to the court fairly represents the intentions of both parties.

How Can NYSLRS Help?

We developed an online template  that makes it easier to create a properly formatted DRO. Just enter your tier, plan and employment status, and answer the questions that follow.

To submit your proposed DRO for review, email it, along with scanned copies of your judgment of divorce, to our Matrimonial Bureau at dro@osc.state.ny.us. For DRO proposals prepared using our online worksheet, the review process is simplified and we can complete our review faster.

If you have any questions about divorce and your benefits, please contact our Hearing Administration and Matrimonial Bureau staff.

Email: dro@osc.state.ny.us

Address:
NYSLRS 110 State Street
Mail Drop 7-9
Albany, New York 12244

Sunshine on the Retirement Savings Horizon

Headlines in recent years offer a stormy retirement forecast: “Americans Get a Grade C in Retirement Readiness,” “More Than Four in Ten Households Wrong About Retirement Readiness,” “The Shockingly Small Amount Americans Have in Retirement Savings.”

Unfortunately, research and statistics tend to back up these dire warnings. According to the Pew Charitable Trusts, a significant portion of Americans — 42 percent — lack access to an employer-sponsored retirement plan such as a 401(k), 403(b) or 457(b). Among those whose employers do offer a plan, only 49 percent actually participate.

In fact, research from the Federal Reserve suggests that 28 percent of people who haven’t retired yet have no retirement savings whatsoever. So, it’s not surprising that a report from the Schwartz Center for Economic Policy Analysis predicts that the “number of 65-year-olds per year who are poor or near poor will increase by 146 percent between 2013 and 2022.”

The Good News

There is promising news about retirement, though, if you look for it. Americans — particularly Millennials (those born 1979 through 1996) — are starting to save for retirement much sooner than previous generations. According to the TransAmerica Center for Retirement Studies, Millennials begin to put away for retirement at a median age of 22. Generation X workers waited until 27, and Baby Boomers didn’t start until age 35.

Sunshine on the Retirement Savings Horizon

Perhaps this earlier focus on saving is responsible for other good news. For example, Fidelity Investments reports record 401(k) balances in 2016: $92,500 at the end of the fourth quarter, which is up $4,300 from 2015. And, earlier this year, the Employee Benefit Research Institute found that 55.4 percent of investors — more than ever before — are maxing out their individual retirement account (IRA) contributions.

That said …

Americans do have a retirement problem. New York State Comptroller Thomas P. DiNapoli speaks regularly about the need for policies at the state and federal levels of government to ensure retirement security for everyone, including workers in the private sector.

As individuals, the solution is simple: We need to save, and we need to start early. NYSLRS members have the rare advantage of a well-funded, defined-benefit pension. However, your pension and Social Security benefits are only part of a well-rounded financial plan. Consider contributing to a New York State Deferred Compensation Plan (NYSDCP) account. NYSDCP is a voluntary retirement savings plan — similar to private sector 401(k) or 403(b) plans — created for employees of New York State and other participating employers. If you work for a local government employer, please check with your human resources administrator to find out what savings plans are available to you.

Getting Your Affairs In Order

Are you affairs in order? Image of filing cabinet.Spring is here, and it’s time for a little spring cleaning. This year, while you’re cleaning under the couch, reorganizing the garage and raking the yard, why not tidy up your important papers too?

We all accumulate a lot of documents over a lifetime — things like birth certificates, diplomas, deeds, wills and insurance policies. If you’re like most people, you probably have papers stuffed in drawers, filing cabinets or boxes in the attic. If you ever needed an important document, do you think you could find it? What’s more, if something happened to you, will your loved ones be able to find what they need to get your affairs in order?

Your important documents and contact information should be kept in a secure place in your home. These items should include personal documents, such as your passport, birth certificate, marriage certificate, will and burial instructions. Also include information about your retirement, income taxes, bank accounts, credit card and online accounts. And don’t forget the names and phone numbers of your attorney, accountant, stock broker, financial planner, insurance agent and executor of your will.

To make this a little easier, we’ve developed a form called Where My Assets Are. This form can be used as a checklist to help you organize your important papers. It will also help you or your loved ones locate these documents when they are needed. It is a good idea to review and update this information regularly.

Where My Assets Are Thumbnail

Where My Assets Are (PDF)

You should be aware that your 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.

The Economic Power of NYSLRS Retirees

Before they leave the workforce, NYSLRS retirees build careers based — at least in part — on serving the people of New York. They are police officers, firefighters and nurses. They are the countless civil servants working each day to keep government services functioning. Their value doesn’t end with retirement. In fact, NYSLRS retirees and their pensions contribute significantly to the communities where they live.

Seventy-eight percent of NYSLRS retirees (440,943 as of March 2016) stay right here in New York. They live throughout the state — from Long Island to the North Country, from the Capital District to Western New York and down to the Southern Tier. Altogether, they’re 2.9 percent of our state’s population, but in some areas, they account for more than 5 percent of the residents.

This large population with steady sources of income has a significant and positive impact on our state and local economies. In 2015 alone, NYSLRS retirees were responsible for $11.7 billion in economic activity in New York State:

  • Property taxes. In 2015, retirees paid $1.7 billion in real property taxes. That’s 5 percent of the total collected for the entire state.
  • State and local sales taxes. NYSLRS retirees paid an estimated $550 million in state and local sales tax in 2015.
  • Job creators. Some retirees do go on to start small businesses as a second act. However, all NYSLRS retirees spend at least some of their income to the benefit of local businesses, and they are responsible for an estimated 66,100 jobs as a result.

NYSLRS Retirees Contribute infographic

Remember: 75 percent of the pension benefits that make all of this possible comes from the investment earnings of the Common Retirement Fund (CRF), not from taxpayers.

Are these statistics impressive? Yes. Surprising? They shouldn’t be. According to research from the National Institute on Retirement Security (NIRS), defined benefit pensions, like those provided by NYSLRS, are responsible for substantial economic gains throughout the U.S. — an incredible $1.2 trillion in total economic output nationwide.

Pensions give retirees a stable source of income, and, in return, retirees support our national and local economies with jobs, incomes, and tax revenue.