Retirement is a big step, and we want to make sure you’re ready when the time comes. Below you’ll find guidance on preparing for retirement, including topics to consider as you plan and actions to take. When you’re ready to apply for retirement, you can do everything online. Learn about what you’ll need to submit, what to expect after applying and things to be aware of during retirement.

Please note, you may be eligible for a disability retirement benefit if you are permanently disabled and cannot perform your duties because of a physical or mental condition. For more information about the types of benefits available and how to apply, visit our Disability Benefits page.

Preparing for Retirement

As you prepare for retirement, you should understand your NYSLRS benefits and what may impact your pension benefit so you can take timely action.

Understand Your NYSLRS Pension

Your NYSLRS pension will be based on your tier, service credit, final average earnings (FAE) and your retirement plan. For most members, age is also an important factor in your NYSLRS benefits.

Familiarize yourself with your membership milestones:

• Membership Milestones for Employees’ Retirement System (ERS) Members
• Membership Milestones for Police and Fire Retirement System (PFRS) Members

Find your retirement plan publication for comprehensive information about your retirement benefits and how your pension will be calculated.

Get Credit for All Your Public Service

Service credit is one of the major factors in calculating your pension benefit, so it’s important to make sure you get credit for all your public service.

You may be able to request additional credit if you:

• Worked for your current or another public employer before joining NYSLRS; or
• Served in the U.S. Armed Forces and received an honorable discharge from active military duty.

Or you may be able to:

• Transfer service: If you are still a member of another New York State public retirement system.
• Reinstate service: If you withdrew your membership in NYSLRS or another New York State public retirement system.

In most cases, you have to pay for additional service or to reinstate service. But because service credit is a factor in the calculation of your retirement benefits, it will usually increase your pension.

You must submit your request before retirement, and you should do it as early in your career as possible. NYSLRS will need time to request records from your previous employer or retirement system, and requesting early also gives you time to pay for additional or reinstated service. Also, the sooner you purchase your credit, the less it will generally cost.

Sign in to Retirement Online to request additional service credit or reinstate a previous membership. (Note: To transfer your membership, you must initiate your request with your former retirement system.)

Pay Off Service Credit Purchases

If you requested additional service credit for previous public employment or military service and you received a cost letter, make sure you’re on track to pay off your service credit purchase before you retire. You won’t receive credit for optional service that is not paid off when you retire.

You may owe payment for mandatory service credit if you reinstated a previous membership or if you are covered by a plan which requires you to contribute (Tier 3, 4, 5 and 6 members) and insufficient contributions were made to NYSLRS. If you are in the process of paying for mandatory service credit and it’s not paid off by your date of retirement, your pension will be permanently reduced.

Sign in to Retirement Online to check your balance, make a lump sum payment or increase your payroll deduction amount.

Pay Off Your NYSLRS Loan

It’s important to understand the implications of retiring with an outstanding loan. Your pension will be permanently reduced, and in most cases, you’ll need to report at least some portion of the loan balance as income to the Internal Revenue Service (IRS). If you retire before age 59½, the IRS may also charge an additional 10% penalty.

To ensure you’re on track to pay off your loan before you retire, sign in to Retirement Online to check your balance, make a lump sum payment or increase your payroll deduction amount.

Note: ERS members can repay their loans after retiring. If you choose to pay back your loan after you retire, you must pay the full amount of the outstanding balance that was due when you retired in a single lump sum payment. Following full repayment, the reduction would be removed, and your pension benefit would increase going forward—the adjustment would not be retroactive to your date of retirement.

Estimate Your Pension

Finding out how much you can expect to receive is a critical step in preparing for retirement. Most members can estimate their pension using Retirement Online in just a few quick and easy steps. To get started:

• Sign in to Retirement Online.
• Look under My Account Summary.
• Click Estimate My Pension Benefit button.

Retirement Online uses your current earnings and service information to calculate your estimate, including your final average earnings (FAE) and the amounts for the pension payment options available to you. You can fine-tune your estimate or see how different choices would affect your benefit by entering:

• Different retirement dates or ages.
• A beneficiary’s date of birth to see pension payment options that provide a lifetime benefit to a single beneficiary.
• The percentage your earnings will increase each year.
• Additional service credit if you plan to purchase service credit from a previous membership, prior employment or military service that’s not already accounted for.
• Whether you’re retiring with an outstanding loan.

If you’re eligible for a post-retirement death benefit, your estimate will also include the amounts that would be payable to your beneficiaries.

Remember, the amounts are estimates, not a guarantee of what you’ll receive when you retire.

Understand How Divorce May Affect Your Pension

In New York State, pensions and retirement benefits earned during the marriage may be marital property and can be divided when a marriage ends. Divorce can affect your pension and other retirement benefits in the following ways:

• Your ex-spouse may be entitled to a portion of your pension.
• You may be required to name your ex-spouse as the beneficiary of any death benefit.
• You may be required to choose a pension payment option that provides a continuing benefit to your ex-spouse when you die.
• Your ex-spouse may be entitled to a portion of your cost-of-living adjustment (COLA).

Any division of pension and retirement benefits must be stated in the form of a Domestic Relations Order (DRO)—a court order issued after a final judgment of divorce which specifies how benefits should be split. To make pension payments to an ex-spouse of a member, NYSLRS requires:

• A certified copy of the DRO signed by a Supreme Court judge and entered as an official court document; and
• Proof of divorce, such as a copy of the judgment of divorce.

It’s important to complete and submit your DRO to NYSLRS well before you apply for retirement to avoid changes or delays in your pension payments. For more information, visit our Divorce and Your Benefits page.

Check Your Eligibility for the Sick Leave Benefit

To be eligible for the Sick Leave Benefit, your employer must have adopted Section 41(j) of the Retirement and Social Security Law (RSSL) for ERS members or 341(j) of the RSSL for PFRS members. If your employer has chosen to offer this benefit, you may receive service credit for unused, unpaid sick leave at retirement.

To check if this benefit is available to you, ask your employer or:

• Sign in to Retirement Online.
• Look under My Account Summary.
• Then, look for Sick Leave Eligibility.

To receive this benefit, you must retire directly from public service or within a year of leaving. The additional service credit for your unused, unpaid sick leave, up to a certain limit, will be added to your total years of service when calculating your pension benefit. However, it cannot be used to:

• Qualify for vesting. For example, if you have four years and ten months of service credit and you need five years to be vested, your sick leave credit cannot be used to reach the five years.
• Qualify for a better retirement benefit calculation. For example, if you have 19 ½ years of service credit but your pension calculation will improve substantially if you have 20 years, your sick leave credit cannot be used to reach the 20-year calculation.
• Meet the service credit requirement for a special 20- or 25-year plan.
• Increase your pension beyond the maximum allowed under your retirement plan.

The additional service credit is determined by dividing your total hours of unused, unpaid sick leave by the hours in your standard workday. For example, if you retire with 600 hours of unused, unpaid sick leave and your workday is 7.5 hours long:

600 hours ÷ 7.5 hours = 90 days (3 months) of service credit

• Most eligible ERS Tier 2, 3, 4 and 5 members can receive credit for up to 165 days (7.5 months).
• Most eligible ERS Tier 6 members can receive credit for up to 100 days (4.5 months).
• Most eligible PFRS members can receive credit for up to 165 days (7.5 months).
• State employees in certain negotiating units can receive credit for up to 200 days (approximately 9 months).

Review Your Health Insurance Coverage

NYSLRS does not administer health insurance programs. When you’re nearing retirement, you should check with your employer’s human resources or personnel office or your health benefits administrator to determine your eligibility for health insurance coverage during retirement.

For employees of a New York State agency and for employees of some participating local governments or school districts, the New York State Department of Civil Service will administer your health benefits under the New York State Health Insurance Program (NYSHIP) once you retire.

If you are eligible to use your unused, unpaid sick leave to offset the cost of NYSHIP, payment towards your health insurance coverage will not affect your eligibility for the Sick Leave Benefit.

Schedule a Pre-Retirement Consultation

Before you apply for retirement, you may want to consider scheduling a pre-retirement consultation where you can speak with one of our representatives to review your benefits and ask any questions you may have.

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Applying for Retirement

Use Retirement Online to Apply for Retirement

Get Started

• Sign in to Retirement Online.
• Look under My Account Summary.
• Click Apply for Retirement button.

Choose Your Retirement Date

Your date of retirement is up to you! Keep in mind:

• You must apply at least 15 days but no more than 90 days before your chosen retirement date.
• You must stop working and be off your employer’s payroll on your retirement date (your last day on payroll must be no later than the day before your retirement date).
• Your date of retirement can be a weekend or holiday (for example, if your last day of work is a Friday your retirement date can be Saturday).

Select Your Pension Payment Option

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.

You can 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.

Enter a beneficiary’s date of birth to see an estimate of your monthly payment and your beneficiary’s monthly payment under each of the pension payment options available to you.

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.

Enter Federal Tax Withholding Information

Most NYSLRS pensions are subject to federal income tax, and NYSLRS is required to withhold federal income tax from your pension benefit at the default withholding status of “single with no adjustments” unless you inform us otherwise. Enter federal tax withholding information to adjust the amount withheld.

Note: NYSLRS pensions are not subject to New York State or local income tax. However, if you permanently move to another state, that state may tax your pension.

Sign Up for Direct Deposit

With direct deposit, your pension payment will be deposited directly into your bank account on the last business day of each month. It’s fast, convenient and secure. Save time and set up direct deposit when you apply for retirement by entering your bank account number and routing number.

If you have a joint account holder on your bank account, you’ll need to print and complete the Electronic Funds Transfer Direct Deposit Enrollment Application (RS6370) and have your joint account holder sign the form. It’s best to do this in advance so you can upload the completed form while adding your direct deposit information in Retirement Online. However, you can upload the completed form later.

Upload Proof of Date of Birth

You must submit proof of your date of birth before any pension benefits can be paid. If you select a pension payment option that provides a lifetime pension benefit to a beneficiary upon your death, you must submit proof of your beneficiary’s date of birth as well.

Upload one of the following acceptable documents:

• Birth certificate
• New York State driver’s license
• Passport or passport card
• Marriage certificate, if it shows your age on a given date or the date of birth
• Baptismal certificate
• Certificate of Release or Discharge from Active Duty (DD-214)
• Naturalization papers

If you don’t have one of these documents available when you apply online, you can submit them later. However, if your submission is not timely, your first payment may be delayed.

Pay Off Outstanding Loans and Service Credit Purchases

If you haven’t done so already:

• Pay off your NYSLRS loan.
• Pay off service credit purchases.

Review Your Employment History and Service Credit

You’ll see which employers reported service credit for you. Review your employment history and add any missing public employment.

You can request additional service credit for previous employment or military service, or you can request a transfer or tier reinstatement when you apply to retire. However, remember it’s best to make these requests well before you apply.

Other Ways to Apply for Retirement

You can complete and submit a paper Application for Service Retirement (RS6037) and an option election form instead of applying online. It’s important to review the instructions and complete each form in its entirety. Paper forms must also be notarized.

When returning your forms to NYSLRS, be sure to include proof of your date of birth. If you select a pension payment option that provides a lifetime pension benefit to a beneficiary upon your death, you must submit proof of your beneficiary’s date of birth as well.

You should also complete a Direct Deposit Form (RS6370) and W-4P Form (RS4531).

Mail your forms to the address listed at the top of the form. If you send your form by “Certified Mail—Return Receipt Requested,” we will consider your request filed on the date it was mailed. If you send your form by regular mail, we will consider your request filed on the date it’s received.

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After Applying

Acknowledgment and Estimate Letters

After you apply for retirement, we will mail you a letter acknowledging we received your application. We will also notify your employer that you’ve applied for retirement and provide your retirement date.

Within a couple weeks, we will mail you another letter which provides an estimate of your pension benefits, confirms your retirement date and lets you know if we need additional information or documents from you.

Your First Payment

NYSLRS pension benefits are paid monthly (bookmark our Pension Payment Calendar for the dates). For most members, you will receive your first pension payment at the end of the month following the month you retire. For example, if you retire any time in the month of July, your first payment will be at the end of August (payment for July and August). If you have not submitted proof of your date of birth, your payments may be delayed.

The Final Calculation of Your Pension

Your pension benefit will be based on the earnings and service information reported to NYSLRS by your employer. To ensure you begin receiving a pension benefit as soon as possible, NYSLRS uses the information we have on file for you at the end of your retirement month.

If NYSLRS receives additional earnings and service information from your employer, your pension benefit may be adjusted. The final calculation of your pension benefit will occur automatically. You do not need to contact NYSLRS to initiate this process.

Most initial pension payments are close to a retiree’s final calculation. At this time, NYSLRS is working hard to finalize pension benefits and to provide retroactive payments as quickly as possible. There is, however, a lengthy delay due to several operational issues. We apologize for this and assure you NYSLRS is working to improve our service in this area.

Once your pension benefit is finalized, you will receive a letter confirming the amount. Any adjustments to your pension benefit amount will be retroactive to your date of retirement.

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During Retirement

Wherever your retirement takes you, we want to continue to provide you with the benefits and services available to you.

Understand Your Benefits

There are some things you should be aware of regarding your NYSLRS benefits after you retire. During retirement, it’s important to:

• Know whether there would be a limit on how much you can earn without affecting your pension if you’re considering working after retiring.
• Learn when you’ll be eligible to receive an annual Cost-of-Living Adjustment (COLA).
• Understand what death benefits may be payable to your beneficiaries so you can prepare your survivors.

For more information, read our publication, A Guide for Retirees.

Use Retirement Online

Retirement Online will continue to be an essential tool throughout your retirement years. It’s the fastest and most convenient way to view your account information and conduct business with NYSLRS.

• Keep your contact information current to ensure you receive the tax information, news, correspondence and statements we send you.
• Get email notifications when important documents, like your Retiree Annual Statement and 1099-R tax form, are available online rather than waiting for the mail.
• View your pension pay stub for insight into your monthly pension payment, including a breakdown of credits and deductions.
• Manage your beneficiaries for your post-retirement death benefit.
• Adjust your federal tax withholding if your federal tax bill or return is not what you expected.
• Change your direct deposit information if you switch banks or need to move your deposits to a different account.
• Generate a pension income verification letter if you need to provide proof of your retirement income for housing or as part of an application for the Home Energy Assistance Program (HEAP).
   

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Stay Connected with NYSLRS

As you prepare for retirement, it’s important to stay informed about your benefits. And your relationship with NYSLRS doesn’t end when you retire.

To stay connected with NYSLRS and get important updates:

• Visit our Members page or our Retirees page for access to the information you’ll need before and after you retire.
• Read our biannual newsletters for articles on a variety of retirement topics.
• Sign up for E-News to get our monthly email newsletter right in your inbox.
• Subscribe to New York Retirement News to get notified when blog posts are published weekly.
• Follow us on Facebook to see announcements and the information we share right in your news feed.
• Contact us if you have questions or need more information. We’re glad to help.

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