Introduction: A Seasonable Approach to Retiring
The time has come!  After years of working in education, you’re getting ready to retire. Perhaps your countdown to retirement has already begun, or maybe it’s a decision you’re considering. In either case, this video will help guide you through the retirement process.  You’ll also learn what to expect from us in retirement.  The points we will cover include:

1. How to get the best information.
2. When to file your retirement application.
3. What to do when legislation that may impact you is pending.
4. When to make the decision on an option or life insurance for your beneficiary.
5. When to expect your first benefit payment.
6. The deadline for withdrawing your application or changing your retirement date.
7. When to file for Social Security benefits if you’re eligible. 

Whether your retirement is imminent or further ahead, start the process early!  The earlier you plan, the more you can enjoy your last months on the job.  For the purpose of this video, we’ll assume it’s the beginning of your last school year, and that you’re planning a July 1st retirement.  If you follow the outline we are about to present, you’ll know that you are on the right path for retirement.

Fall: Review and Evaluate
Fall marks the start of the school year.  It also marks the start of your countdown to retirement.  In addition to attending your last open house, here are some other steps you should take during the fall.

Attend a NYSTRS Preretirement Planning Seminar.  These day-long meetings, conducted throughout the state, are designed to help members prepare for retirement.  Topics include NYSTRS benefits, financial planning, legal issues, taxes and Social Security.  Visit the Consultations page of our Web site for the seminar schedule and information on making a reservation.  You can also ask your employer or System delegate to arrange a group presentation on the retirement process. A NYSTRS representative will tailor a presentation that best suits the group’s needs.

Review your contract so you’ll know when to notify your district of your retirement.  Also check for eligibility to receive a payment for unused leave or a local retirement incentive. Your district may require you to inform the administration of your retirement by a specific date in order to qualify for certain payments, so it’s important to be familiar with contract language that addresses these issues.

And if you haven’t already done so, this is a good time to claim and purchase credit for prior New York State public employment or military service.  Service credit is used to determine your pension factor, a primary component of the formula used to calculate your retirement benefit.  Additional credit will increase the pension factor in almost every situation.  The formula used to calculate your benefit is:

Pension Factor (x Age Factor for Tiers 2, 3 and 4) x Final Average Salary = Maximum Annual Pension

Remember: Receiving additional service credit for prior New York State or military service does not change your date of membership or tier – unless it is the result of a membership reinstatement or transfer.  You cannot receive credit for employment with the federal government or a private school, except for charter schools participating in NYSTRS.

Also, one year of service credit is the maximum you can receive in a school year.  So teaching summer school either before or after a full year in the classroom won’t earn you additional credit.  However, you can receive credit for part-time, partial year or substitute teaching if you worked the equivalent of at least 20 full days in a school year.

Schedule a personal or video consultation with a NYSTRS representative at a site near you.  Doing so allows you to meet with a staff member either in person or through interactive video.  You’ll leave the consultation with printed estimates of your retirement benefits under various scenarios.  Our video consultations are live, face-to-face communications with a NYSTRS representative in Albany.  They are offered at more than 15 sites across the state.  Meanwhile, personal consultations are available at more than a dozen locations statewide.  For a list of consultation sites and scheduling information, refer to the Consultations page of our Web site.

After discussing the various NYSTRS benefit payment options at your consultation, thoroughly review the differences between them, particularly if you will need to provide income to a beneficiary. You won’t need to select a payment method until you file for retirement, but planning ahead is important.  Weigh your benefit payment options against purchasing private insurance and review your choices with a certified financial advisor.  A summary of your choices can be found in the brochure Maximum or an Option: Your Choice at Retirement, available on our Web site or by calling the System Hotline at (800) 782-0289.

Winter: Plan Your Golden Years
As winter sets in and your retirement nears, you’ll likely wonder how you’ll spend your days in retirement.  You may search for possible retirement destinations, plan your leisure activities, or consider a second career.  But don’t lose sight of the work you still need to do.

For example, health insurance in retirement for you and your beneficiary is an extremely important consideration, so now is a good time to discuss coverage with your employer.  The Retirement System does not administer health insurance coverage.  Until you become eligible for Medicare, which in most cases is age 65, your health insurance coverage will depend on the choices your employer offers. 

Employers who participate in the statewide health plan must continue coverage for most retirees – but not necessarily at the same level as prior to retirement.  You may need to obtain additional private health insurance to supplement your coverage until you are eligible for Medicare, so we urge you to review your options before retiring.

When you receive your NYSTRS Benefit Profile, review the service and salary information for accuracy.  Make sure all of your service credit is listed and verify that any extra earnings have been reported.  Your benefit is based in large part on these figures, so it’s crucial they are correct.  If you find discrepancies, request that corrections be made now.  Waiting until you actually file for retirement will slow the processing of your application and delay the calculation of your full benefit.

In most cases, the earliest you can begin collecting Social Security is age 62.  If you will be eligible to start receiving benefits at the end of the school year, contact the Social Security Administration by calling (800) 772-1213 or visit its Web site at www.socialsecurity.gov and determine what you need to do to receive that benefit.

Monitor pending New York State legislation, because new laws could affect your NYSTRS benefits.  A statewide retirement incentive, for example, would likely increase your benefit.  The easiest way for you to keep tabs on legislation is to visit the Legislation page of NYSTRS’ Web site.  There, we monitor pending bills through the legislative process.

While preparing your federal income tax forms, start calculating the tax liability on your estimated retirement income.  Remember: There is no New York State or Social Security tax on your NYSTRS benefit.  However, it is subject to federal income tax.  For more information, contact the IRS or your financial advisor who can help you decide whether to have taxes withheld from your retirement benefit, or to pay estimated taxes.  If you move out of New York, your pension would be subject to the tax laws of your new state.

You must indicate your choice when you complete your retirement application, but you can change your selection in the future if necessary.

Spring: Final Preparations and Filing
Spring will signal your final weeks at school.  You’ll enjoy one more spring concert and you’ll submit grades for the last time.  Perhaps you’re even looking forward to a retirement celebration in your honor.  Here’s what else you have to look forward to as your retirement date nears.

The filing period for a July 1st retirement begins April 2nd.  You can file your application up to 90 days prior to your effective date of retirement, or as late as the date of retirement.  Waiting until your retirement date nears will allow you more time to make decisions and continue tracking new legislation that could affect your final benefit.  To ensure you receive your first benefit payment in July, file your retirement application with NYSTRS by June 14th.

Whenever you decide to file, we urge you to submit your application by registered or certified mail.  Doing so will give you proof of mailing and ensures that we consider your application received on the date it was postmarked.  If your application is sent any other way, it is considered received the day it arrives at NYSTRS headquarters in Albany.

Continue tracking pending legislation by calling our Hotline at (800) 782-0289 or visiting our Web site.  If there is legislation pending and you’ve already filed your retirement application, you can withdraw your application up to 14 days after the date of retirement and re-file at a later date.

If June arrives and you still have to file for retirement, begin preparing your application in anticipation of a July 1st retirement.  You can obtain an application from the Forms page at www.nystrs.org, by calling our Hotline at (800) 782-0289, or by requesting a copy from your employer.

On the application, you will need to indicate your choice of the Maximum benefit or an option.  Remember to sign your application in the presence of a notary before submitting it to NYSTRS.

In addition to your application, you’ll need to complete a Direct Deposit Authorization Agreement so your monthly payments will be deposited in the proper account.

Also complete the W-4P Withholding Election and Certificate and indicate whether you want federal income tax withheld from your payments.

Summer: Transition to Retirement
July 1st is your official date of retirement.  The next chapter of your life is just beginning.  Here are some other important dates to keep in mind:

1. July 15th (or 14 days after your retirement date) is the last day to withdraw your service retirement application.
2. July 31st (or 30 days after your retirement date) is the last day to file a Change of Benefit Payment Election form if you need to change the payment choice you made on your application.
3. The last business day in July is the direct deposit date for your first benefit payment.

After all the planning and decision making, you can now enjoy your retirement!  NYSTRS is still here to help you, though.  In the weeks following your retirement, you’ll receive our publication Discovering Retirement, which can guide you through the challenges and opportunities new retirees face. 

You’ll also receive the Resource newsletter with pertinent information about your benefits. And each year you’ll get your Retired Member Profile, which is a summary of your retirement benefits. 

Each January we’ll send you your federal 1099-R form, which you’ll need to file your taxes.  Certainly, if we can be of any assistance to you beyond that, we encourage you to contact us. Here’s how:  

1. Call our Hotline at (800) 782-0289 for forms and the latest news;
2. Call (800) 348-7298, Ext. 6250 to speak with a System representative;
3. Visit our Web site at www.nystrs.org; or,
4. Write to us at NYSTRS, 10 Corporate Woods Drive, Albany, NY 12211.

Thank you for taking the time to watch this video.  Best of luck to you in retirement!