Items of Interest for Our Retirees

On this page, NYSTRS retirees will find a wealth of information to help them in retirement.   

Forms and Publications Earnings After Retirement Cost-of-Living Adjustment Benefit Payment Dates Taxes / Estate Planning Contact NYSTRS / Retiree Resources

Forms and Publications

You may download a host of NYSTRS forms, including those to change your address, update your direct deposit information, and change the federal tax amount withheld from your benefit payment, on our Forms page.

NYSTRS produces a variety of publications to help our members transition to and make the most of their retirement. Visit our Publications page to access the many pamphlets, handbooks and newsletters we offer you.

Earnings After Retirement

Service retirees can have unlimited earnings in the following cases:  a) in private employment; b) in federal employment; c) in public employment outside New York State; d) as an elected official, inspector of elections, poll or ballot clerk, commissioner of deeds, juror or notary public; or, e) in all employment (including NYS public employment) beginning in the calendar year they turn age 65.

Sections 211 and 212 of the Retirement and Social Security Law govern NYS public employment by service retirees under age 65.  The Section 212 earnings limit, determined by the State Legislature, is currently $30,000.

If you expect to earn more than the limit in calendar year 2008, you may  a) suspend your retirement benefit, or b) work under Section 211 if your employer receives approval from the state entity with jurisdiction over your employment. (Under Section 211, the Commissioner of Education often will not approve your returning to work for your former school district until at least six months after your date of retirement. This restriction does not exist under Section 212.) 

Section 211 earnings are limited if you work for an employer you received pay from in the two years prior to retirement and those salaries were used in your final average salary (FAS). In that case, your earnings during a calendar year are limited to the difference between your FAS (or, if greater, the salary you would now be receiving had you continued in service) and your maximum retirement benefit.

You can find more information about post-retirement earnings, including the rules governing work as a consultant, in the pamphlet Working in Retirement and in the Retired Members' Handbook.

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Cost-of-Living Adjustment

Eligible NYSTRS retirees will soon receive their biggest cost-of-living adjustment (COLA) since permanent COLA legislation was enacted in New York State eight years ago.

The COLA for September 2008 through August 2009 benefit payments will be 2%, an increase from the 1.4% applied to current payments. As result, beginning with this September's payment, an eligible retired member with an annual benefit of $18,000 or more will receive a monthly increase of $30.

This latest COLA brings the cumulative maximum monthly increase since COLA legislation was enacted in July 2000 to $177 (see chart below).

New York’s permanent, automatic COLA is designed to help offset inflation’s adverse effects on the fixed retirement benefits of the state’s public retirees. By law, the COLA is calculated by taking 50% of the March-to-March Consumer Price Index increase (rounded up to the next higher one-tenth of 1%) and multiplying it by the first $18,000 of the retirement benefit. The annual increase is a minimum of 1% to a maximum of 3%. The increase in the CPI from March 2007 to March 2008 used in the determination of the 2008 COLA is 3.98%.

To be eligible for a COLA, you must either be:

• 62 and retired at least five years; or,
• 55 and retired at least 10 years; or,
• A retiree receiving a NYSTRS disability benefit for at least five years (regardless of age); or,
• A surviving spouse of an eligible retiree receiving a lifetime benefit. (By law, the spouse receives an increase equal to one-half the COLA the retiree would have received.)

Retirees who become eligible for the COLA after September will receive their adjustment beginning in the month following their eligibility.

The table below indicates COLA percentages and maximum increases dating to September 2001, when COLA legislation took effect.

*For members receiving a pension of $18,000 or more.

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Benefit Payment Dates

Retirement benefit check and direct deposit dates are the last business day of each month. The following table lists the 2008 benefit payment dates.

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Taxes and Estate Planning

Federal and State Tax Rules for Your Retirement Benefit

Your retirement benefit is subject to federal income tax (except for previously taxed contributions). The 2008 federal tax tables can help you determine how much NYSTRS would withhold from your benefit payment under various scenarios. For more detailed information, see IRS Publication 15 (Employer's Tax Guide).

You can have federal taxes withheld from your monthly payments or make quarterly estimated tax payments. To elect a new withholding amount, file a W-4P Withholding Election and Certificate form at any time; changes NYSTRS receives by the 10th of a month will generally be reflected in that month's payment. NYSTRS will send you a 1099-R form each January showing the gross amount of your benefit, the taxable amount and any federal tax withheld for the previous year.

Your retirement benefit is exempt from New York State income tax. However, if you live in another state, your benefit is subject to that state's tax rules. You can find information about other states' tax laws at www.1040.com.

Key to Estate Planning: Keeping Beneficiaries Informed

Coping with the passing of a loved one is difficult enough; dealing with estate issues can make it that much harder. You can help your family and beneficiaries clear up your estate more quickly by maintaining a list of important documents. 

NYSTRS must be promptly notified when a retiree or beneficiary dies. To report a death, call us at (800) 356-3128, Ext. 6140. Notifying the Social Security Administration and/or your last school district is not sufficient. Beneficiaries will not receive the payments you intended unless NYSTRS is notified directly.

Pension Protection Act of 2006 Allows Non-Spouse Beneficiaries to Rollover Death Benefits into an IRA

The Pension Protection Act of 2006 enables non-spouse beneficiaries to have a qualified lump-sum death benefit payment directly rolled over into an IRA. This provision took effect Jan. 1, 2007. The IRA must be treated as an inherited account, according to the IRS. Previously, only spouses had the ability to have payments rolled over.

NYSTRS will provide beneficiaries with the necessary forms and information on payment choices upon notification of a member’s death. Claims processing cannot proceed, however, until the System receives a copy of the death certificate.

The System does not offer advice on what payment choice is best for the individual. Instead, we recommend consulting with a qualified financial planner or tax advisor before making financial decisions.

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Contact NYSTRS

If you receive your benefit by direct deposit and would like to know the amounts of your gross and net payments, tax withholding, or health insurance and union deductions, please call our Retiree Benefit Information Line at (800) 356-3128, Ext. 2980. This automated service is available weekdays between 7:30 a.m. and 6 p.m., with the exception of Fridays during the summer, when the line closes at 1 p.m.

For other retirement-related questions, call (800) 356-3128 or (518) 447-2900 from the Albany area and use the following extensions:

Please Note: When contacting the System, please provide your EmplID (Employee Identification Number), which can be found on your Retired Member Profile and in most correspondence you receive from us. If you can't locate your EmplID, we can mail it to you. To keep your personal information secure, we cannot provide your EmplID by telephone or facsimile.

Retiree Resources

The following Web sites provide valuable information to retirees.

AARP — Addresses the needs and interests of people age 50 and above.

Benefits Checkup — Maintains list (and eligibility rules) of federal and state assistance programs for older Americans.

Medicare — Explains the rules for federal hospital insurance and medical coverage. Also visit the Medicare Interactive Counselor.

MyMoney.gov — The federal government's Web site dedicated to helping Americans understand more about their money — how to save it, invest it, and manage it to meet their personal goals.

New York State United Teachers — Statewide organization representing teachers, higher education faculty and other school-related professionals.

NYS Office for the Aging — Helps older New Yorkers with issues like health insurance, and offers a directory of senior housing.

NYS Retired Teachers' Association — Supports the rights of retired teachers.

Retirement Living Information Center — A guide of retirement and senior housing communities across the country, tax information by state, and other retirement resources.

Social Security Administration — Clarifies Social Security benefit issues.  You can also call SSA at (800) 772-1213.

USA.gov for Seniors — Provides links to government resources geared toward seniors.

1040.com — Shows how your pension would be affected if you move out of New York State.

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