If members choose to purchase credit for additional previous public service, they have the option to pay the required contributions, plus interest (if applicable), through:

• A single lump sum payment;
• Transferring funds through a direct trustee-to-trustee transfer from an eligible retirement tax-sheltered plan or account; or
• Payroll deductions.

If a member requests to pay through payroll deductions, you will receive a notification letting you know that their service credit purchase (SCP) deduction has changed. 

The notification will provide a link to the Loan/SCP Deductions page in Retirement Online, which will list the member’s service credit purchase deduction amount and whether it should be taken pre-tax or after taxes. The page also provides their remaining balance once there are six or fewer outstanding payments left.

To access the Loan/SCP Deductions page and view SCP deductions for your employees:

• Sign in to Retirement Online.
• From your Account Homepage, click the “Access Reporting Dashboard” button.
• Choose your location code.
• Click the “Loan/SCP Deduction Notification” link.
• Then, on the Loan/SCP Deduction page, click the “SCP” tab.

Please do not begin deductions before receiving the notification. 

Members can make lump sum payments in addition to payroll deductions. The easiest way for members to manage SCP payments is through their Retirement Online member accounts.

When taking pre-tax SCP deductions, you will still report the full gross reportable earnings to NYSLRS. However, you must reduce the amount of the member’s earnings you report to the Internal Revenue Service for federal income tax by the amount of each deduction taken. For Social Security and State and local income taxes, use the full earnings before the deductions are taken.

Rev. 11/23