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New York State and Local Retirement System

Preparing for Retirement

Part Two: Service Credit and Loans

Speaker one:
The last two to three years before you retire are crucial in your retirement planning. You'll want to make sure you’ve received credit for all your public employment in New York State.
Speaker two:
In most cases, the more credit you have, the greater your retirement benefit will be.
Besides the actual service credit you earn as a member of the System, you may also get credit for your military service; your unused, unpaid sick leave, if your employer provides this benefit; and, for tier 1 and tier 2 members, your Article 19 service credit.
Speaker one:
Also, it’s important you request credit for any past public service with: New York State; county, city, town or village government; public schools and authorities.
Now's the time to make your inquiry-don't wait until you’re actually ready to retire. If you've been denied credit in the past, ask again. Laws have changed over the last few years. For the most part, if we can find the payroll records for your service, we can allow you the opportunity to receive credit for it.
Speaker two:
On the other hand, to protect the pension benefits you’re working so hard to enjoy, you’ll want to pay off your Retirement System loans — if you have any. Having outstanding loans at retirement permanently — and I can’t stress that enough — it permanently reduces your allowance.
In addition, the balance due may be subject to federal income tax. Here’s an example of how an unpaid loan can affect your benefit. Say you’re a Tier 4 member retiring at sixty-two with a five thousand dollar loan balance.
Your retirement benefit will be reduced by three hundred and ninety dollars per year — that's over thirty-two dollars a month.
That may or may not seem like a lot to you, but multiply it over the rest of your lifetime — say fifteen or twenty years — and we’re talking a large sum of money.
Speaker one:
You can pay off your loan sooner by increasing the amount of the loan payment deducted from your check each payday. Just send a letter telling us the amount you want your payments increased to, and we'll notify your payroll department to make the change.
Or, send additional payments directly to us, but let us know we should apply them to your loan. Send your requests for service credit and loan payments to:

NYS & Local Retirement System

Member & Employer Services Bureau

110 State Street

Albany, NY 12244

Speaker two:
There are several ways for you to get more information on this important topic.
You can visit our website and e-mail us to get answers to your questions within three business days. You can also contact our Call Center toll-free or meet with an Information Representative in Albany on any business day or at 15 other locations on scheduled days.
Speaker one:
Whichever way you choose, please be sure to contact us with any questions you may have.

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