Plan to Work This Summer?
(April 23, 2008) – If you plan to work this summer for a New York State public employer that is not a participating NYSTRS employer, you should join the retirement system associated with that employer. You can have memberships in more than one New York State public retirement system and, if membership is ever transferred from one system to the other, salaries reportable to both systems may be usable in the calculation of your final average salary at retirement. Service also is eligible for transfer, but you cannot earn more than one year of credit in each July 1 – June 30 school year.
Your Retirement Date May Have Consequences
(April 22, 2008) – If you intend to retire soon, give careful consideration to your date of retirement. In some situations, this date could have consequences that will impact your benefit for life.
Most NYSTRS members are contracted to work through June 30 and, therefore, select July 1 (their first date of eligibility) as their retirement date. However, you may be entitled to retire earlier and many members choose to retire when first eligible.
The downside of retiring before July 1, though, is that you'd likely not qualify for any benefit improvement legislation that may be enacted before year-end.
Here's why: Chapter 497 of the Laws of 2005 provides that any legislation affecting benefits provided by NYSTRS will take effect no later than June 30 of the year in which the legislation is enacted (unless the legislation specifically states it does not take effect June 30). So if you retire July 1 and a law improving System benefits is passed before Dec. 31, you would be eligible for the improvement as the law will be considered “in effect” as of June 30 – or the last day of your active member status.
However, if you retired on or before June 30, you would not be considered an active member as of June 30. As a result, you would not qualify for the benefit improvement.
In summary, forfeiting a few retirement dollars by choosing a July 1 date of retirement could be advantageous in the long run.
Members nearing retirement are urged to discuss this matter with a NYSTRS information representative at a consultation or by calling (800) 348-7298, Ext. 6250. Visit our Consultations page for a schedule of video and personal consultations.
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New 55/25 Law Does Not Apply to NYSTRS
(March 4, 2008) — Governor Eliot Spitzer recently signed a law giving eligible UFT-represented educators in New York City the option to retire with unreduced benefits at age 55 with at least 25 years of service. In return, those who opt in must increase their member contributions by 1.85%.
This agreement does NOT apply to members of the New York State Teachers' Retirement System. Currently, there are no parallel bills before the legislature that extends this benefit at the state level. However, a different 55/25 bill has been introduced that, if adopted, would apply to NYSTRS members. The Senate bill number for the latter is S5732-A; the Assembly bill number is A3607-A. Please Note: The substantial cost of the bill renders it very unlikely the bill will receive serious consideration.
If you have any questions about the law affecting New York City teachers, please contact your collective bargaining representative or the New York City Teachers' Retirement System. The Pending Legislation page of this Web site will track S5732-A and A3607-A if the bill moves out of committee.
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Preparing Properly for Retirement
(March 4, 2008) — The school year is winding to a close and, for many, teaching careers may be as well. If you are among those contemplating or counting down to retirement at the end of the year, following are items to consider during the final marking period.
April
View our Retirement Countdown video, which outlines the steps to take during your last year of work to prepare for retirement and emphasizes key points to remember during the process. The NYSTRS brochure Countdown to Retirement is a complement to the video. Request a hard copy by calling (800) 782-0289.
The filing period for a July 1 retirement begins April 2. You can file your service Retirement Application (RET-54) up to 90 days prior to your effective date of retirement, or as late as the date of retirement, which must be at least one day after your last day on payroll. Waiting until your retirement date nears allows you time to track pending legislation that could affect your final benefit. Conversely, knowing the paperwork is done and submitted for processing may be your preference.
Whenever you decide to file, submit your application by registered or certified mail. This will provide proof of mailing and establish the postmark date as the official date of receipt by NYSTRS. If your application is submitted any other way, it will be considered received the day it arrives at NYSTRS' headquarters in Albany.
May
Track any Pending Legislation on our Web site or by calling our Hotline at (800) 782-0289. If important legislation is pending and you are concerned about benefiting from it, you may want to consider withdrawing your application and re-filing at a later date. You can withdraw your application up to 14 days after your date of retirement.
This is an important consideration because, by law, any legislation affecting benefits provided by NYSTRS will take effect no later than June 30 of the year in which the legislation is enacted — unless the law specifically states otherwise. Since benefit legislation typically affects only active members, if you retire:
¤ July 1 or later and a law improving System benefits is passed anytime before Dec. 31, you would be eligible for the improvement. Although the law may be enacted as late as Dec. 31, it will be considered “in effect” as of June 30 — or the last day of your active member status.
¤ On or before June 30 , you would not be considered an active member as of June 30. As a result, you would not qualify for the benefit improvement.
Members nearing retirement are urged to obtain retirement estimates and review other pertinent matters in a benefits consultation with a NYSTRS information representative. Visit the Consultations page of our Web site or call (800) 348-7298, Ext. 6100 to schedule a personal or video consultation with a System representative. There are 17 video consultation sites statewide and in-person appointments are available at a dozen locations across the state.
When contemplating a retirement application withdrawal, determine your employer's policy for retracting your resignation or changing the date of retirement. For example, some employers may consider a letter of resignation or retirement irrevocable. Consult with your employer's Human Resources or Business office, or with a representative of your union, to determine local policy.
June
If you are planning a July 1 date of retirement and your goal is to receive your first benefit payment that same month, file your retirement application with NYSTRS by June 14. You can obtain a service Retirement Application (RET-54) from the Forms Web page, by calling our Hotline at (800) 782-0289, or by requesting one from your employer.
On the application, indicate your choice of the Maximum benefit or an option. An option provides coverage for a beneficiary and essentially is a form of life insurance. Refer to the NYSTRS publication Maximum or an Option: Choosing a Benefit Payment Right for You to learn about the various benefit payment choices. If you are still unsure or have questions, schedule a consultation with a System information representative.
A Direct Deposit Authorization Agreement (GRE-54) is included with the retirement application. This form must be completed and submitted in order for payment to begin and to ensure it is deposited in the proper account. A W-4P Withholding Election and Certificate (FIN-149), on which you must indicate whether or not you want federal income tax withheld from your payments, is also included with the application.
Remember to sign your application in the presence of a notary before submitting it to NYSTRS.
Once NYSTRS receives your retirement application, we will send you an acknowledgement letter and the brochure The Path to Retirement: Understanding the Retirement Process. This guide for new retirees explains the many steps needed to finalize a benefit. It's also available on our Web site or by calling (800) 782-0289.
July and Beyond
Don't kid yourself; as much as you have looked forward to retirement, there are emotional and lifestyle adjustments you will need to make. To help, we provide the publication Discovering Retirement. A copy is mailed to all new retirees early in retirement, but if you would like a copy sooner call (800) 782-0289.
Enjoy retirement!
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Active Member Benefit Profiles Mailed
(March 4, 2008) — NYSTRS recently mailed Benefit Profiles to its more than 270,000 active members.
If you believe you were eligible to receive a Profile and have not received one, please contact the System at (800) 348-7298, Ext. 6250. In many cases, members don't receive their Profile in a timely manner because they have not updated their address with the System. If you want to change your address in our records, you must either send us a signed letter with your EmplID or Social Security Number indicating your new address, or file a change of address form. For security purposes, we cannot take address changes over the phone.
This year's statement reported your pension-related information through June 30, 2007. The Profile was mailed to NYSTRS members who had a date of membership before June 30, 2007 and were still in active status in the first quarter of the current school year.
The Profile is an essential retirement-planning tool. Review it closely to verify your salary and service credit information – the basis for your NYSTRS benefits – have been correctly reported to us by your employers. If you notice an error, ask your employer to correct the records and to submit the revision to NYSTRS. Correcting any misinformation now will help expedite the processing of your benefits in the future.
The information you will find in your comprehensive Profile includes:
- Your earnings and service credit for the school year ended June 30, 2007;
- A complete service credit history;
- Projections of service retirement benefits under various scenarios;
- Descriptions of benefit payment options;
- Disability and death benefit projections;
- Your beneficiary information;
- A summary of your contributions and loan information, if applicable; and,
- Other important facts related to your NYSTRS membership.
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NYSTRS Board Appoints Thomas K. Lee Executive Director
(Nov. 16, 2007) — Thomas K. Lee today was appointed executive director of the New York State Teachers' Retirement System (NYSTRS) by the 10-member Board of Trustees. Lee succeeds George M. Philip, who recently retired as executive director after 12 years in that position and 36 years with the System. Lee is NYSTRS' fifth chief executive officer since the System was established in 1921.
NYSTRS, which has more than 400,000 members and over $100 billion in assets, is one of the 10 largest public pension funds in the nation and among the 25 largest in the world. NYSTRS is fully funded, meaning it has sufficient assets to pay both current and future benefits.
“Tom has been our deputy executive director for more than a year and in that time has gained extensive knowledge of our organization, so the transition will be smooth,” said Joseph P. McLaughlin, president of the NYSTRS Board. “Coupled with his previous experience as executive director of the Maryland State Retirement and Pension System, as well as his knowledge of education, finance, investments, and benefits administration, Tom possesses the managerial and leadership qualities to keep NYSTRS moving forward.”
“I thank the Board for this opportunity and their confidence in me, and I am honored to work with such outstanding people,” Lee said. “Working closely with the Board, George Philip, and the staff of NYSTRS for the past year has been a tremendous experience, and I have learned first hand why NYSTRS has earned its reputation as a first-class organization.”
Lee's public service includes over 13 years with the state of Maryland in various capacities. Lee previously served as executive director of the State Retirement and Pension System, deputy budget secretary for the Department of Budget and Management, assistant state superintendent of education for the State Department of Education, and legislative committee staff and budget analyst for the General Assembly's Department of Fiscal Services.
Lee received his Master of Business Administration from The George Washington University, his master's degree in political science from Temple University, and his bachelor's degree in political science and sociology from Dickinson College. He also received a Harvard University Certificate for the completion of the Senior Executives in State and Local Government Program at the John F. Kennedy School of Government.
Philip, who was raised in Kingston, N.Y. and taught at the former Linton High School in Schenectady, N.Y., joined the Retirement System as a benefit information representative in 1971. He received numerous promotions at the management/executive staff level, gaining extensive knowledge and experience in investments, pension fund administration, actuarial concepts, member services and benefits.
From 1986 to 1995, he held several executive staff positions, including director of budget and investor relations, chief real estate investment officer, and assistant executive director/chief investment officer. He was named executive director in February 1995, while retaining the title of chief investment officer.
Philip is a member of numerous professional organizations and governing bodies involved in financial, educational and community activities. His affiliations include St. Peter's Hospital, Albany, N.Y., the University at Albany, the National Association of State Retirement Administrators, the National Council on Teacher Retirement, and the Council of Institutional Investors.
“While we are saddened by George's decision, we wish him all the best in his future endeavors,” Board President McLaughlin said. “During his tenure, George has fostered a culture of excellence, accountability, and teamwork, which is an incredible legacy. We know Tom supports this culture and are confident his leadership qualities will serve us well for years to come.”
NYSTRS was created in 1921 by an act of the state legislature. The System administers the fund from which the state's public school teachers and administrators, excluding those in New York City, receive retirement and ancillary benefits under a defined benefit plan. The System currently pays benefits of about $4.7 billion annually to retirees and beneficiaries. NYSTRS serves more than 800 employers, including public school districts, charter schools and institutions of higher education.
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Appointment Scheduler Added to Secure Area
(Sept. 26, 2007) – NYSTRS is pleased to announce an appointment scheduler has been added to the Secure Area of our Web site. The scheduler allows registered Secure Area members to book personal and video consultations with NYSTRS representatives. Active members can also use the scheduler to reserve a seat at a Preretirement Planning Seminar.
After logging into the Secure Area, active members should select "Schedule Appointments" from the menu at the left – retirees will select "Schedule Consultation" – and follow the online instructions. The process is quick and easy, and eliminates the need to call the Retirement System.
If you do not have a Secure Area account, you can register by selecting the Secure Area tab near the top left of this page. You can tour the area prior to registering by selecting a demonstration. You'll find accessing your personal information is easy and safe, and you'll appreciate the ability to access your data around the clock.
There are currently more than 29,000 registered Secure Area users and an average of 10 new accounts are created daily. Recent changes have simplified the registration process and allowed new users to access their accounts faster than before.
In addition to the appointment scheduler, active members can use this area to find detailed information about items such as service credit, contributions, employment history and beneficiaries. Copies of their Benefit Profile, the personalized auditing tool provided to all members annually, are also available. Meanwhile, retirees can access their benefit payment history, a copy of their Retired Member Profile, and a summary of the service credit and final average salary on which their benefit was based.
We encourage you to take advantage of exciting new tools like the appointment scheduler. Other improvements, such as online forms submissions and a revised search function, are being developed. Back to Top
Consider All Options Before Taking a Loan
(May 4, 2007) – If you're considering borrowing from your NYSTRS contributions this summer, we urge you to carefully consider all your options because a loan from the Retirement System may not be your best choice.
The interest rate attached to a NYSTRS loan may be higher than that available through a private lender. Additionally, due to IRS regulations, you could face severe tax consequences if you have an outstanding loan and are considering borrowing additional funds.
An IRS regulation that took effect Jan. 1, 2004, requires the amount of a combined loan be added to the remaining balance of the original loan to test for taxable distributions. Therefore, a combined loan issued now will likely be subject to significantly higher federal taxes than combined loans issued prior to the IRS regulation.
The tax implications resulting from this IRS regulation has prompted NYSTRS to ensure members are fully informed before a loan is issued. A taxable combined loan will not be issued until you sign and return to NYSTRS a System-issued loan estimate that includes the taxable amount along with your withholding election.
The bottom line: When consumer interest rates were high and before the IRS regulation went into effect, borrowing from your retirement contributions may have been an attractive alternative to a loan from a bank, credit union or other lender. Today, however, with lower consumer rates and the possible severe tax consequences of a combined public pension loan, a NYSTRS loan is likely to be more costly for most members.
To inquire about a NYSTRS loan, or to request a loan application, call (800) 348-7298, Ext. 6080. Currently, it takes approximately two to three weeks to process a valid loan application.
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Secure Area Offers Members the Convenience of Self Service
(April 23, 2007) – There's no getting around it; we live in a self-service society. It started with gas pumps and ATMs, and now it's prevalent virtually everywhere we turn. We can check ourselves out at grocery and home improvement stores, glide through toll lanes without stopping, and wave credit or key cards at electronic readers at McDonald's. We can even rent movies from vending machines!
But did you know you can also obtain your personal NYSTRS membership and benefit payment information without having to pick up the telephone or write a letter? The data is available 24 hours a day, seven days a week to registered members of the NYSTRS Secure Area found at www.nystrs.org.
Currently, the Secure Area provides more than 25,000 registered users instant access to their personal Retirement System information. Recent changes were implemented in an effort to encourage even more members to use this convenient and powerful tool. Since then, approximately 10 members per day have become registered users.
In this members-only area active members can find information about items such as service credit, contributions and beneficiaries. Loan information will soon be available, too. Meanwhile, retirees will find detailed information about their benefit payment history, including gross and net amounts, taxes withheld, any deductions and cost-of-living adjustments. Additionally, members can access their Benefit Profile.
The Secure Area also allows you to verify the mailing address we have on file for you is correct, and makes it convenient for you to change it if necessary.
The security of your data is a paramount priority for us. Please know we have taken every reasonable precaution to ensure this information is protected so it can only be viewed by you. In many ways, it is more secure than information we would send you by way of the U.S. Postal Service.
Becoming a registered Secure Area member is easy. The online registration process can be completed in minutes and if you choose to have your password e-mailed, you will have access to your account that same day.
If you are not already a registered Secure Area member, we urge you to take a tour. Visit us at www.nystrs.org, select the Secure Area tab near the top left of the page, and choose either an active member demonstration or retired member demonstration. You'll find accessing your personal information is easy and safe, and we're sure you'll appreciate the convenience of around-the-clock availability.
We're committed to providing outstanding customer service to our members and the Secure Area is one of many ways we do so. Please give it a try!
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