New York State Teachers
Being afflicted by a disability that prevents you from working is an unfortunate possibility for anyone. Here, we answer some commonly asked questions relevant to New York State educators in this situation.
How do I apply for disability retirement?
This can be done quickly and securely through your MyNYSTRS account under the My Retirement tab. This online option does not require notarization and ensures faster processing.
If you prefer, you may submit a paper application by completing the Application for Disability Retirement (RET-54.1) and Medical Information Summary (RET54.1B), available in the Disability Retirement Package on NYSTRS.org. If mailing your application, use registered or certified mail through the U.S. Postal Service, or another approved delivery service with tracking to ensure it’s considered filed on the date it’s sent.
What should I do if I become unable to work due to disability?
If an illness or injury prevents you from working, contact NYSTRS immediately at (800) 348-7298, Ext. 6010. They can provide detailed information about disability retirement and offer an updated estimate of your potential benefits. Eligibility requirements vary depending on your tier of membership. Review their publication If You Are No Longer Able to Work to understand your options.
How are disability retirement benefits determined?
In most cases, the benefit is approximately one-third of your final average salary. However, the actual amount may vary depending on factors such as your age and total service credit. You can request an estimate of your disability retirement benefit by calling NYSTRS at (800) 348-7298, Ext. 6010.
What should I do if I’m critically ill and meet the eligibility requirements for disability retirement?
If you qualify for disability retirement, it’s a good idea to apply immediately. In most cases, the lump-sum benefit paid to your beneficiary in the event of your passing will be greater than an in-service death benefit and a refund of your contributions.
If you are also eligible for a service retirement benefit, you should compare the potential benefits to your beneficiary under both options. In some cases, service retirement may offer a higher payout. NYSTRS can assist in evaluating the best choice for your circumstances.
Additionally, if you have a life expectancy of less than a year or require extraordinary medical care, you may qualify for an “accelerated death benefit.” This option provides a payment equal to the death benefit your beneficiary would otherwise receive if you passed away on your last day of reportable service. Keep in mind that choosing this option is irrevocable, so it’s crucial to discuss it with NYSTRS before deciding.
How can I protect my beneficiaries if I’m facing a life-threatening condition or surgery?
To ensure protection for your beneficiaries, consider filing a disability retirement application and clearly mark it as “For Protection Only.” This precautionary step provides a safety net should your condition worsen. If you later decide to proceed with the retirement process, you must notify NYSTRS in writing.
If you pass away before your retirement takes effect due to the condition mentioned on your application, and you’re otherwise eligible for disability retirement, your beneficiary will receive a benefit. This lump-sum payment is typically higher than an in-service death benefit and a refund of your contributions.
RESOURCES AND NEXT STEPS:
This is a big step, so make sure you gather information in advance to make an informed decision.
- NYSTRS Website: Their website has many resources with FAQs, retirement planning tools, and forms (https://nystrs.org/Retirement-Planning/Retirement-Planning-FAQs)
- MyNYSTRS Portal: Access your personal NYSTRS information through your portal (https://secure.nystrs.org/MyNYSTRS/)
- 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)