Pension Payment Options

As you prepare for retirement, it’s important to understand the pension payment options available to you, so you can make an informed decision about your pension and whether to continue payments to a beneficiary upon your death.

When you apply for retirement, you’ll choose from several options, all of which provide you with monthly pension payments for the rest of your life. The Single Life Allowance provides the maximum amount, but upon your death, payments will stop—there will be no continuing payments to a beneficiary, even if you die soon after retiring. Or you can choose to receive a reduced monthly pension payment to provide for a possible payment to a beneficiary upon your death.

If you are divorced, you may be required by a Domestic Relations Order (DRO) to select a pension payment option that provides a continuing benefit to your ex-spouse upon your death. If we have a court-ordered DRO on file, the terms of the DRO will supersede any other designations.

 

Deadlines for Selecting Your Pension Payment Option

Service Retirement

For ERS Tier 4, 5 and 6 members covered under Article 15: You must select a pension payment option by your date of retirement. Once you select an option, you have 30 days after the first day of the month following your date of retirement to change it.

To find out whether you're an ERS Tier 4, 5 or 6 member covered under Article 15: 

  • Sign in to Retirement Online.
  • Look under My Account Summary.
  • Then, look for the following:
    • Retirement System: Employee Retirement System
    • Tier: 4, 5 or 6
    • Benefit Plan: A15

For all other ERS members and for PFRS members: You must select a pension payment option by the end of the month in which you retire. Once you select an option, you have 30 days after the first day of the month following your date of retirement to change it.

If you do not select an option by the applicable deadline, we are obligated by law to process your retirement as if you had selected the:

  • Single Life Allowance option for Tier 3, 4, 5 or 6 members.
  • Cash Refund—Contributions option for Tier 1 or 2 members.

Disability Retirement

If you applied for a disability retirement, it’s a good idea to include your pension payment option election form with your application, especially if you are terminally ill. Once you select an option, you have up to 30 days after your disability application is approved or up to 30 days after your retirement date, whichever is later, to change it.

 

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Pension Payment Option Descriptions

Single Life Allowance

  • You will receive the maximum monthly pension payment for the rest of your life.
  • Upon your death, monthly pension payments will stop. There will be no continuing payments to a beneficiary (even if you die soon after retiring).
  • You must submit proof of your date of birth.

Joint Allowance (100%, 75%, 50%, 25%)

  • You will receive a reduced monthly pension payment for the rest of your life.
  • You can only choose one beneficiary. You have up to 30 days after the last day of your retirement month to change your beneficiary. After that, you cannot change your beneficiary for any reason.
  • Upon your death, your beneficiary will receive a percentage, which you select, of your monthly pension payment for the rest of their life.
  • If your beneficiary is your spouse at the time of your death, they will also receive 50% of your Cost-of-Living Adjustment (COLA).
  • If your beneficiary dies before you, your monthly pension payment will not change. Upon your death, monthly pension payments will stop.
  • You must submit proof of both your and your beneficiary’s date of birth.

Pop-Up Joint Allowance (100%, 75%, 50%, 25%)

  • You will receive a reduced monthly pension payment for the rest of your life.
  • You can only choose one beneficiary. You have up to 30 days after the last day of your retirement month to change your beneficiary. After that, you cannot change your beneficiary for any reason.
  • Upon your death, your beneficiary will receive a percentage, which you select, of your monthly pension payment for the rest of their life.
  • If your beneficiary is your spouse at the time of your death, they will also receive 50% of your COLA.
  • If your beneficiary dies before you, your monthly pension payment will increase to the maximum amount (the amount you would have received if you had selected the Single Life Allowance at retirement) for the rest of your life. Upon your death, monthly pension payments will stop.
  • You must submit proof of both your and your beneficiary’s date of birth.

Five-Year Certain or Ten-Year Certain

  • You will receive a reduced monthly pension payment for the rest of your life.
  • You can choose more than one beneficiary, and you can change your beneficiary(ies) at any time.
  • If you die within 5 or 10 years after retiring, your beneficiary will receive your monthly pension payment for the remainder of the 5-year or 10-year period, depending on which option you select. If you choose multiple beneficiaries, they will receive equal shares of your monthly pension payment.
  • Your beneficiary, even if it is your spouse, will not receive a percentage of your COLA.
  • If you live beyond the 5-year or 10-year period, your monthly pension payment will not change. Upon your death, monthly pension payments will stop. There will be no continuing payments to a beneficiary.
  • You must submit proof of your date of birth. However, you do not need to submit proof of your beneficiary’s date of birth.

Cash Refund—Contributions

(Only available to Tier 1 and 2 members with annuity savings contributions on deposit)

  • You will receive a reduced monthly pension payment for the rest of your life.
  • You can choose more than one beneficiary, and you can change your beneficiary(ies) at any time.
  • Upon your death, your beneficiary will receive the balance of your annuity savings contributions in one lump sum payment.
  • Your beneficiary, even if it is your spouse, will not receive a percentage of your COLA.
  • If you receive the full amount of your annuity savings contributions, monthly payments will stop at your death. There will be no continuing payments to a beneficiary.
  • You must submit proof of your date of birth. However, you do not need to submit proof of your beneficiary’s date of birth.

Cash Refund—Initial Value

(Only available to Tier 1 members)

  • You will receive a reduced monthly pension payment for the rest of your life.
  • You can choose more than one beneficiary, and you can change your beneficiary(ies) at any time.
  • Upon your death, your beneficiary will receive the balance of the initial value of your pension benefit in one lump sum payment. The initial value refers to what your pension benefit was valued at when you first retired.
  • Your beneficiary, even if it is your spouse, will not receive a percentage of your COLA.
  • If you receive the full amount of the initial value of your pension benefit, monthly payments will stop at your death. There will be no continuing payments to a beneficiary.
  • You must submit proof of your date of birth. However, you do not need to submit proof of your beneficiary’s date of birth.

Alternative Options

If the options described do not meet your needs, we will consider written requests for other pension payment methods. You must outline your request in detail and submit it to NYSLRS for review to ensure it meets all legal and actuarial requirements.

 

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Rev. 7/25