Starting Out — In Your 20s
“I started teaching last year and I recently received my Benefit Profile from the Retirement System. I appreciate the service and salary summary – and I see the value of the Profile – but I can't think about retirement now. I'm more concerned with paying off my college loan and making the payments on my new car.”

You’re a NYSTRS member, but you’re not really sure what that means. You signed some papers and filled out some forms when you started teaching, and you know you are contributing 3% of your salary. Beyond that, why would you have any interest in retirement when you’re just beginning your career? 

These are what author and certified financial planner Dee Lee calls "the accumulation years." You want your own new "stuff" such as cars, televisions and homes. And before you know it – you're in debt. Saving for retirement seems impossible at this point, but it's not.

Although retirement seems far off, planning really should begin when you join NYSTRS. You’ll often hear those close to retirement say: “I wish I knew then what I know now!” We want to prevent that from happening to you so we've outlined steps you can take now to increase your future financial security.

The key years for retirement savings are between the ages of 20 and 35, according to Lee, because it gives your money plenty of time to grow. If your employer offers a deferred compensation plan or other savings vehicle – such as a 401(k), 457 or 403(b) plan – take advantage of it! Or open a personal IRA.

At each stage of your career, your financial planning should also include a review of your NYSTRS benefits. Since benefits can be complex and are subject to legislative change, we encourage you to use our services and publications to get the most reliable and accurate information. 

Your First Contact

Find out if arrangements have been made at your school for a representative of the Retirement System to conduct a benefits presentation for new members. This will give you the opportunity to hear firsthand what membership in NYSTRS means.

If you have personal questions about membership in NYSTRS, especially if you had a previous membership in another public retirement system, call us at (800) 348-7298, Ext. 6250, or (518) 447-2900, Ext. 6250 from the Albany area.

For Starters

New NYSTRS entrants receive a membership card, our pamphlet Your First Look at NYSTRS, and the Active Members' Handbook. Both publications contain information about:

• Building service credit; 
• Member contributions; 
• Establishing benefits; and,  
• Contacting NYSTRS. 

The Handbook provides a wealth of membership information and in-depth explanations of your benefits. It is an important part of our commitment to help you make informed decisions about your future at each stage of your teaching career.

What's Next 

When you earn one year of service credit, you will be covered by an in-service death benefit if you were in continuous employment throughout the year. Also, although probably not advisable because of the tax consequences, you will be eligible to borrow from your member contributions when they total at least $1,334.

Benefit Profile

Your Benefit Profile, mailed to you annually, is a personalized summary of your membership status and provides estimates of your future benefits. The Profile – which can be viewed on our Web site with a MyNYSTRS account – includes:

• Salary data as reported by your employer(s) for the previous July 1-June 30 school year. Make sure it includes any extra earnings you earned for coaching or tutoring;
• A summary of your service credit, including prior service;
• A review of your member contributions (if any) and loan information;
• Benefit eligibility and calculation;
• Projections of your retirement benefits under various scenarios;
• An in-service death benefit estimate;
• A list of your beneficiaries; and,
• A glossary of retirement benefit terms.

Your benefit eligibility and calculations are based primarily on age, salary and service credit. Therefore, it is important that you carefully review the employment, salary, and service credit data the Profile shows. Should an error in salary or service credit be detected, it should be reported to the appropriate employer, along with a request that NYSTRS be notified in writing if a change is made to member records.

Be sure to keep your address current with NYSTRS (and your employer) and to update your beneficiary designation as needed. The applicable forms can be obtained on our Web site at www.nystrs.org or by calling our Hotline at (800) 782-0289.

NYSTRS and You Kit

After you are credited with five years of service, your eligibility for a NYSTRS pension is vested, or guaranteed – assuming, of course, you do not withdraw your membership prior to retirement. Once vested, you will receive NYSTRS and You, a kit that contains materials to help you develop a comprehensive financial plan for your future.

Understanding your NYSTRS benefits at retirement will help you with that plan, which should include supplemental retirement savings and investments. Your death benefit coverage is also an important asset to keep in mind, especially as you assess your life insurance needs.

Getting the Latest News 

When laws affecting your benefits change, we communicate that to you in a number of ways. You’ll find the news on our Hotline at (800) 782-0289, our Web site at www.nystrs.org and in the Your Source newsletter for active members.