Why offer a Retirement System plan to your employees? Being part of NYSLRS enables municipal employers, regardless of their size, to offer employees an attractive benefits package, including a defined benefit pension.
With a defined benefit pension, those employees can be assured of a lifetime benefit during their retirement years. Defined benefit plans, which pay benefits based on a preset formula, differ from defined contribution plans, such as a 401k, which are essentially individual retirement savings accounts that are dependent on the return on investments.
In today’s employment landscape, a retirement plan that provides a guaranteed benefit helps attract and retain qualified workers interested in career-long employment. The plans administered by the New York State and Local Retirement System:
- Provide public employees with the ability to retire with a guaranteed lifetime benefit;
- Encourage long-term employment because pension amounts are related to years of service;
- Offer a pension that is based on salary and years of service;
- Provide a right to pension benefits (vesting) after accruing five years of service credit (ten for Tier 5 and 6 members);
- Build a Cost-of-Living Adjustment (COLA) into pensions to partially offset the effect of inflation after retirement;
- Include disability retirement and death benefits.
Perhaps most important, you and your employees can be confident that Retirement System plans are managed with integrity. That is due, in large part, to the dedicated and experienced employees of NYSLRS, a staff you can rely on.