Understanding Your Initial Benefit Payment
In most cases, you will receive your first benefit payment by direct deposit on the last business day of either the month of your official retirement date or the next, depending on when we received your retirement application. In other words, we begin providing your benefit to you well before the processing of your retirement application is complete.
Your initial monthly benefit payment is based on information on file and fully processed by NYSTRS at the time of retirement and typically represents 95% or more of your final benefit, which will be determined once your application is fully processed. For example, the initial benefit may not include your last month or two of salary and service depending on when you filed for retirement because NYSTRS requires time to review and process that information. As monthly reports of service and salary are fully processed by NYSTRS, the updates are reflected in the Service Credit section of your MyNYSTRS account.
Generally, the payment amount will remain unchanged until your application is fully processed, which typically takes 9-12 months, but can take longer in more complicated cases. You will receive a detailed letter when we complete the processing of your application. If your final benefit is higher than our initial estimate, you will receive a lump sum retroactive payment with your first new monthly benefit payment.
The final benefit could be substantially larger than initial payments for Tier 2-6 members who pass a key service milestone in their final year.
For more information about the retirement process and the calculation of your benefit, see the publication The Path to Retirement: What Happens After You File Your Retirement Application. To see step-by-step how your application is proceeding through the process, select the Track Progress of Retirement tab in MyNYSTRS.
Adjusting to Your New Chapter
Transitioning to retirement is an exciting time but it can be an adjustment. Watch our PREP module video Living The Retirement Dream, which covers post-retirement topics, including planning ahead; staying active and healthy; relationships; and relocating. (Download presentation slides and the corresponding PREP Workbook chapter).
Visit the Retirees section of our website for information on earnings after retirement, and taxes and estate planning, and to read our retired member FAQs. There you can also access the Retired Members’ Handbook and the calendar of benefit payment dates and System holidays.