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New York State and Local Retirement System

Preparing for Retirement

Part Seven: Choosing Your Retirement Option

Speaker one:
Once you file your retirement application, you’ll have to make a decision on how you want your retirement benefit paid. While there are several options from which to choose, all of them provide you with a monthly benefit for your lifetime.
You may elect the maximum benefit with no payments to a beneficiary after your death and receive a reduced monthly benefit to provide for a possible payment to your beneficiary.
Each option pays a different amount and is based on such factors as your age at retirement, your beneficiary’s age or the length of time he or she is eligible to receive your benefit.
Speaker two:
Choose your retirement option from your most recent estimate. A complete description of the available options is provided with your estimate or can be found in your plan booklet.
On your Option Election Form, indicate how you want your retirement benefit paid and file it with us by the last day of the month in which you retire.
However, we won’t expect you to make your selection if you haven't received a formal estimate within the past 18 months. If that’s the case, we’ll allow you enough time to make your decision after we’ve provided you with one.
Speaker one:
But, before you make any decision on how you want your pension paid, ask yourself a few questions.
Have you done your homework first?
Have you assessed what you and your beneficiary will need for a comfortable retirement?
Your pension isn’t the only asset that provides for you. Don’t forget about Social Security benefits.
Do you have savings and investments? Perhaps your spouse has a pension or you’ll have a part-time job.
Speaker two:
Do you have a life insurance policy that will help provide for your beneficiary?
Your beneficiary may also be eligible for a post-retirement death benefit.
Are your major expenses paid, such as your mortgage and education loans for your children?
These are just some of the things to consider before deciding on a payment option.
Speaker one:
You may want to consult with a financial planner. Everyone needs good financial advice, especially when you’re preparing for retirement. A good financial planner can help prepare you for retirement by helping you avoid costly mistakes and by bringing to light various issues you may not have considered.
Speaker two:
If you’ve done your homework, selecting the right option will be easy. Just look for the option that meets your needs.
To find out more about choosing a retirement option, see your retirement plan book.

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