Frequently Asked Questions

New or returning NYCERS members: You will start seeing pension contributions deducted from your paycheck within 6-8 weeks of submitting your membership application.    

Active NYCERS members transferring to another NYCERS-eligible position: It may take up to 60 business days before your pension contributions begin.  

Active NYCERS members returning from a leave of absence: Deductions should resume immediately.  

Note: Members in retirement plans that require both Basic Member Contributions (BMCs) and Additional Member Contributions (AMCs) should see two separate deductions listed. 

Please contact NYCERS if you do not see your pension contribution deductions listed on your paystub within the timeframes listed above. Missed payments will result in an account deficit which, if left unpaid, will accrue interest and affect your pension benefit, and, depending on your retirement plan, may make you ineligible for retirement. 

There are three types of pension statements available to NYCERS retirees, beneficiaries, and active/vested members:  

Award Letter  

An Award Letter serves as an official verification of the status of the retirement allowance awarded to a retiree or beneficiary. For retirees, an Award Letter outlines the effective retirement date and monthly amount awarded to them. 

Award Letters are also available for beneficiaries receiving a monthly survivor benefit and outlines deceased retiree’s effective date of retirement, the option chosen by the decedent at retirement, decedent’s name, and the monthly amount awarded to the beneficiary.  

To view, download, or print your Award Letter, log in to your MyNYCERS account and navigate to View My: Documents. Once you’re there, click the Generate Award Letter button located under the Award Letter tab. If your Award Letter is not available online, click the Contact link to submit a Service Request, or, if you do not have access to MyNYCERS, call NYCERS’ Call Center to speak with a representative.  

Note: You may need to disable your popup blocker to access your Award Letter online.  

Pension Statement  

Quarterly Pension Statements are no longer issued but NYCERS can provide retirees, beneficiaries, and court appointed alternate payees with a detailed year-to-date Pension Statement upon request.  

A Pension Statement shows a monthly accounting of pension payments you received and includes details such as deductions for health insurance, taxes, and union dues, as well as supplemental payments for Cost-of-Living Adjustments (COLA), and Tier 1 and 2 Annuity Reserve Fund (ARF) payments. 

To request a copy of your Pension Statement, log in to MyNYCERS and click the Contact link to submit a Service Request, or, if you do not have access to MyNYCERS, call NYCERS’ Call Center to speak with a representative. Once your request is processed, your Pension Statement will be mailed to you and, for those with a registered MyNYCERS account, made available in the Main tab of your Documents page.   

Active and Vested Annual Disclosure Statement (ADS)  

Active NYCERS members currently working for the City and Vested members who left City Service receive an Annual Disclosure Statement. The ADS is only available online in your MyNYCERS account. Learn more at Active and Vested Annual Disclosure Statement (ADS). 

NYCERS no longer supplies members with retirement receipts. Instead, please use the timestamped copy of the retirement application you submitted to NYCERS as proof of your retirement filing.

There are two ways to obtain a copy of your timestamped Service or Disability application:

1. Log in to your MyNYCERS and go to View My: Documents. A copy of your timestamped retirement application will be available in the Main tab for one year. If you submitted your application more than one year ago, click Contact NYCERS in the MyNYCERS menu and submit a new Service Request to have a copy reuploaded or mailed to you.
2. Alternatively, you can contact NYCERS Call Center or visit the Walk-in Center in Downtown Brooklyn to request a copy of your retirement application.

The answer depends on the type of beneficiary you are nominating (person, trust or organization) and the type of death benefit you are nominating that beneficiary for.  

Person – NYCERS does not require supporting documentation if the person is nominated for an Ordinary Death Benefit by an active or vested member, or a Five-/Ten-Year Certain Retirement Option by a retiring member.  

When nominating a person for a Joint & Survivor Death Benefit (for your retirement option election), NYCERS requires a proof of birthdate, and, if the person has a history of name changes, a Marriage Certificate, Judgement of Divorce, or Court Order for each name change.  

Trust – To nominate a Trust as a Beneficiary, you must submit the entire Trust document or the Last Will and Testament containing the Trust provisions.  

Organization – Supporting documentation is not required.

NYCERS does not provide IRMAA reimbursement forms. Please visit the Office of Labor Relations’ Website to download an IRMAA Reimbursement form. 

Tier 1 and Tier 2: To qualify to take out a loan, you must:

• Complete three years of NYCERS membership
• Be in active payroll status (unless you are on an approved leave of absence)
• Not be retired

Tier 3, Tier 4, and Tier 6: To qualify to take out a loan, you must:

• Complete one year of NYCERS membership
• Have a minimum of $1,334 in your NYCERS retirement account
• Be in active payroll status
• Not be in default on a previous loan from NYCERS
• Not be retired

Note: 22-Year Plan members (Tier 3) cannot borrow against their contributions.

If you are a registered member of our website, the Loan Information page in your MyNYCERS account will tell you if you qualify to take out a loan.

Tier 3, 4, and 6 members: The law requires that you must repay your NYCERS loan within five years. In addition, loan repayments cannot be made at a rate less than 2% of your gross salary per pay period.

Tier 1 and 2 members: The law requires that you must repay your NYCERS loan within 999 pay periods (38.4 years). In addition, loan repayments cannot be made at a rate less than 5% of your gross salary per pay period.

Loans are repaid at a fixed rate through payroll deductions. When you apply for the loan, you will be given the option to choose any rate you wish as long as it meets the minimum repayment requirements.

For all Tiers: At any time before retirement, you may request in writing to repay the entire outstanding loan in one lump sum.

If you choose to repay your loan after retirement, the monthly pension benefits paid after you repay the loan will not be reduced by the actuarial equivalent of the loan. Monthly pension benefits paid prior to the repayment of the loan will not be adjusted.

If you have registered your MyNYCERS account, the Loan Information page can help you estimate the monthly payments for a loan you want to take out (register or log in here).

Currently, the effective interest rate is 6.2% (6% interest rate plus 0.2% mandatory loan insurance).

Tier 1 and 2 members may take out two loans in any 12-month period.

Tier 3, 4 and 6 members can take out one loan in any 12-month period. If you are a member with a registered MyNYCERS account, log in and check the Loan Information page to find out when you will next be eligible to take a loan.

Active Members

If subject to tax, a loan is counted as ordinary income for Federal income tax purposes. In addition, if you are under the age of 59½, you will incur a 10% early distribution penalty tax assessed by the Internal Revenue Service.

Tier 3, 4, and 6 loans are subject to taxation if the total outstanding loan is both:
1. Greater than $10,000
and
2. More than 50% of the member’s non-forfeitable accrued vested benefit.

When borrowing results in a consolidated loan amount over $50,000, at least the excess over $50,000 is subject to Federal income tax.

Under IRS regulations, newly consolidated loans may be subject to taxation. As always, the balance of an existing loan can be consolidated with a new loan, creating a revised 5-year repayment schedule. After January 1, 2004, however, consolidated loans with a repayment schedule beyond the original 5-year repayment date most likely will create a significant tax consequence. Please note that under IRS regulations, a loan from NYCERS or a loan from your 457 or 403 (b) Deferred Compensation Plan account are considered to be loans from the “same employer” and are subject to all IRS rules concerning loans. If all or any part of your next pension loan is subject to Federal taxes, NYCERS will offer you three loan processing methods (Refinance, Original Terms, and New Loan) to help you make an informed decision about the tax consequences.

Three Loan Processing Methods

Refinance: You have an outstanding loan that has not yet been paid in full. If your new loan is approved, NYCERS will consolidate the existing balance with the new amount, and a new repayment schedule (not to exceed 5 years) will be implemented. This method may result in the highest tax consequence.

Original Terms: You have an existing loan that has not yet been paid in full. If your new loan is approved, the amount of the new loan will be added to the existing balance. Under this method, the consolidated amount will be paid within the original repayment schedule (not to exceed 5 years) of the existing loan. Your loan may be subject to Federal taxes.

New Loan: You are applying for a loan for the first time, or you have paid off a prior loan in full. The loan could have tax consequences if it exceeds IRS thresholds.

Applying for a Loan in Person

When you apply for a loan in person at our Customer Service Center, you will be provided with a tax authorization letter that outlines the three methods. You must select how you want the loan to be distributed and return the tax authorization letter to NYCERS before your loan application can be processed. (When you apply in person at NYCERS, all of this can be handled in one visit).

Applying for a Loan Online

When you apply for a loan online, you will be able to calculate different loan amounts and repayment schedules for tax-free and/or taxable loans and select the loan you prefer.

Taxes at Retirement

Internal Revenue Service regulations now require NYCERS to treat pension loans as a retirement distribution if they are taken at, or near, the time of retirement. However, you may roll over the taxable portion to an IRA or Employer Plan. In the event you choose not to roll over the taxable amount, NYCERS is required to withhold 20% Federal tax before issuing the check. If you have not yet reached the age of 55 and you choose not to roll over the taxable distribution, you will also be subject to an additional IRS 10% early distribution penalty tax when you file your taxes for that calendar year.

If you elect to roll over the eligible distribution, it is your responsibility to ensure that the institution you name will be able to receive this direct rollover from NYCERS.

The taxable portion of any prior loan balance is also available for rollover at retirement. However, you must accomplish this rollover on your own because the distribution was previously given to you. You will receive a post-retirement rollover letter approximately 30 days after you have retired explaining the exact amount that is eligible for rollover. You will have until the due date (including extensions) of your tax return for the year in which the distribution was made to roll over the taxable portion to an eligible retirement plan. Before you file for retirement, visit NYCERS to learn about the tax and retirement benefit consequences of an unpaid loan and about your repayment options.

Loans are paid back on a set schedule automatically through payroll deductions. When you pay off your loan balance in full it may take up to three payment cycles for your loan payroll deductions to stop. To account for this lag, the loan pay-off amount is reduced by three payments: 

Total Outstanding Loan – Three payroll deductions = Loan Pay-off Amount    

If your payroll deductions do not stop after the third pay cycle, contact NYCERS. Any overpayments made towards your loan will be refunded to you within four to six weeks. 

Visit nycers.org/loan and download the Loans Brochure for your Tier — Tier 1 and 2; Tier 3, 4 and 6

MyNYCERS is your secure online portal to your NYCERS pension account. You can access it any time to view your account balances, see an estimate of your retirement benefit, file forms online, and more.

MyNYCERS Registration Guide

NOTE: If you joined NYCERS recently, wait until you receive your Member Number and first paycheck after filing your membership application.

Learn more about Online Services available through MyNYCERS

To be eligible to collect benefits, you are required to have a certain number of years of service and attain a certain age, depending on your Tier and Plan.

Tier 1 age and service requirements.
Tier 2 age and service requirements.
Tier 3 age and service requirements.
Tier 4 age and service requirements.
Tier 6 age and service requirements.

The amount of your retirement benefit is based on the Tier and Plan you are in, as well as some, or all, of the following factors:

• Your required contributions and/or additional contributions
• The amount of service you are credited with at retirement
• Your salary

If you are a member with a registered MyNYCERS account can log in and use the online Benefit Calculator to estimate how much your benefit will be when you retire.

NYCERS’ benefit payments are subject to Federal taxes but are exempt from New York State and local income taxes. NYCERS benefits may be subject to state and local income taxes in states other than New York. Taxes are automatically withheld from all benefit checks you receive from NYCERS based on the Federal tax table for a person who is married claiming three exemptions, unless you elect in writing to have taxes withheld on a different basis, or for no taxes to be withheld.

Even though your monthly retirement benefit is subject to Federal income taxes, part of it may be excludable. Contributions you made to NYCERS on a pre-tax basis are considered 414(h) Contributions. Non-414(h) Contributions were deducted from your paychecks after tax and are therefore not subject to taxation a second time. The portion of your retirement benefit that represents Non-414(h) Contributions is exempt from Federal taxes.

The following is a list of all the types of service that NYCERS recognizes. Please note, however, that not all plans allow all these types of service to be counted toward retirement. Many special occupation plans have stricter requirements and might not allow previous service from a different profession to be counted toward retirement.

• Membership Service:  This is defined as paid full-time or part-time service performed after you last joined NYCERS, including all service while you are on the payroll of a participating employer, certain military service, and membership reinstatement.
• Transferred Service:  Service that was credited to you while you were a member of another public retirement system in the City or State of New York which you transferred to NYCERS.
• Purchased Service (Buy-Back):  Service credit purchased for full- or part-time public service performed before becoming a member of the pension system. Buying back service credit does not change your membership date.
• Membership/Tier Reinstatement: Current members who were previous members of a public employee retirement system in New York City or New York State may apply to restore their original membership date. In order to be eligible, the first membership must have been terminated. Unlike purchasing previous service, membership reinstatement requires that you were previously a member of a public employee retirement system, not merely employed by a public entity that would have allowed you to join a retirement system.
  A key benefit of membership reinstatement is reinstating to an earlier tier. If your first membership date was between July 27, 1976, and March 31, 2012, you could reinstate to Tier 4. If your first membership date was on or after July 1, 1973 and prior to July 27, 1976, you could reinstate to Tier 2. The benefits in Tiers 4 and 2 are generally better than those in Tier 6, so if you think you might be eligible you should consider applying. In order to make an informed decision, please visit our Customer Service Center and speak to a representative. In most cases the benefits will outweigh any cost, but individual cases differ.
• Military Service: Service credited for time spent on duty in one of the military branches of the U.S. Armed Forces. There are various laws that allow members to purchase Military service and each law has different provisions. You are entitled to receive credit for Military service under whatever law provides you with the greatest benefit.
• Union Leave Service:  Credited service granted for an authorized leave of absence without pay to conduct labor relations activity on behalf of a public employee union.
• Part-time Service:  Part-time service is service in which an employee is regularly scheduled to work less than 1,827 hours in a calendar year. Part-time service can be Membership Service, Purchased Service, Transferred Service, etc. Regardless of how part-time service is obtained, NYCERS will prorate credit on the basis of one year of full-time service — 1,827 hours worked in a calendar year.