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Retirement law can be confusing. Sometimes a small misunderstanding can have a big impact on your benefit. That’s why it’s important to correct some common retirement myths. Here are the top five:
Retirement Myth #1
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My NYSLRS loan has gone into default, but I’ve already paid taxes on it. That means I no longer need to repay it.
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You still need to repay your loan. In fact, it continues to accrue interest until you do. And, if you haven’t paid back your loan by the time you retire, your pension amount will be reduced.
Retirement Myth #2
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Clik here to view.I am required to contribute toward my retirement. When I do retire, my benefit will be based on what I contributed.
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Clik here to view. Your required member contributions aren’t a factor in the calculation of your pension. Your pension is based primarily on your service credit and the salary you earn while working for public employers. Your retirement plan and, in most cases, your age at retirement are also factors.
Retirement Myth #3
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Clik here to view.I can’t collect my pension until I start receiving Social Security.
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Clik here to view. You can collect your pension as soon as you meet the eligibility requirements of your retirement plan. Most members can retire as early as age 55, though there may be a permanent reduction in your benefit if you retire before full retirement age (62 or 63 depending on your tier). You should check the eligibility requirements for your plan and tier when you’re planning for retirement.
Retirement Myth #4
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Clik here to view.If I am vested (have enough service to be eligible for a pension benefit) and no longer working for a public employer, NYSLRS will automatically start paying my pension as soon as I’m eligible.
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Clik here to view. Only you can decide when it’s time to retire. You must file an Application for Service Retirement (RS6037) to begin collecting your pension benefits.
Retirement Myth #5
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Clik here to view.I recently applied for retirement by giving my employer the paperwork.
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Clik here to view.Giving your employer your NYSLRS forms does not mean that you have filed for retirement. To receive your NYSLRS pension, you must file your retirement application with the Office of the State Comptroller. Your application, or any form, is “filed with the Comptroller,” when it’s received by our Albany office or one of our consultation sites.
Have a concern that wasn’t covered? Visit our Contact Us page for more answers. If you have account-specific questions, you can also send us a message through our secure email form.