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FAQ for UNDERSTANDING BENEFIT PAYMENTS

FAQ for UNDERSTANDING BENEFIT PAYMENTS

| August 15, 2024

New York State Teachers

Ready to trade in lesson plans for leisure time? After dedicating years to shaping young minds, your retirement is well-deserved! It's a big step with long-term implications, so questions are natural. We've helped countless educators navigate this transition, and here are some of the top questions about benefit payments we address.

How far ahead of time do I need to file for benefit payments?

  • NYSTRS recommends filing at least 30 days in advance, but you can file up to 90 days before your desired retirement date.
  • If you change your mind about retiring, you have 14 days from your date of retirement to withdraw your service retirement application.
  • If you want to make a change to your benefit payment choice, you only have a 30-day window after your retirement date to make a change. The form mustbe received by NYSTRS within 30 days after your retirement date.


How do I figure out what my benefit payment will be in retirement?

Your Maximum annual pension is determined by the following formula:

Pension Factor x Age Factor (if applicable) x Final Average Salary = Maximum Annual Pension

  • The pension factor, is a percent based on your years and months of service credit, and typically increases with additional service.
  • Depending on your age and service credit at retirement, an age factor may be applied to your beneļ¬t calculation.
  • The final average salary (FAS) is the average of your highest three consecutive school years of salary earned whenever they occurred in your salary history, which is typically the average of your last three years.

Read more in our Pension Calculations Made Simple article. You can Use the MyNYSTRS Pension Estimator to calculate estimates under various scenarios.


When will I get my first benefit payment?

You should receive your first payment at the end of the month in which your retirement date falls as long as you have submitted your application at least 30 days before then.


How will I receive my first pension payment in retirement and how often are payments made?

Your benefit payments will be directly deposited into your bank account at the last business day of each month.


Why is my benefit payment different than I expected?

They will start your retirement payments based on the information they currently have on file for you. The final benefit payment amount will be adjusted once they get all your employment records (including past employers), which can take 9-12 months. You will receive a letter detailing your final pension amount. If you are owed additional money, they will retroactively pay you those funds.

RESOURCES AND NEXT STEPS:

This is a big step so make sure you gather all the information in advance in order to make an informed decision. 

  • Consultation with a Financial Professional: Get a second, unbiased opinion on your plan for retirement with one of our financial advisors who specialize in teacher retirement. Our professionals have been helping teachers for over 50 years plan for the future they envision with tailored guidance and tax planning. (Set up a complimentary consultation: https://www.legendwny.com/contact)