NY Ret & SS L § 448 (2021)
2021 New York Laws RSS - Retirement and Social Security Article 11 - Limitations Applicable to New Entrants 448 - Death Benefits.

§  448.  Death  benefits.  a.  A  member of a retirement system who is subject to the provisions of this article, exclusive  of  those  members for  whom  provision  is made pursuant to subdivision b of this section, shall, at the time of first becoming a member thereof, make an election, which shall be irrevocable, for coverage for financial protection in the event of death in service, between the two following benefits:   1. A benefit upon the death of  a  member  in  service  equal  to  one month's  salary  for  each full year of service up to a maximum of three years' salary upon the completion of thirty-six full years  of  service, or  in  the  event  that  a member is eligible to retire without benefit reduction pursuant to section four hundred forty-two of this article,  a benefit  equal  to  the  pension  reserve, if any, which would have been payable to such member had he entered prior to  the  effective  date  of this article and died in service, subject to the benefit limitations set forth  in  section  four  hundred  forty-four  of  this article, if this alternative provides a greater benefit, or;   2. A benefit upon the death of  a  member  in  service  equal  to  the member's  salary  upon his or her completion of one year of service, two years' salary upon completion of two years of service, and three  years' salary  upon  completion  of  three  years  of service. In the case of a member of a retirement system other than the New  York  state  teachers' retirement  system,  the New York city employees' retirement system, the New York city board of education retirement system, the  New  York  city teachers'  retirement  system,  the  New York state and local employees' retirement system or the New  York  state  and  local  police  and  fire retirement  system,  such  benefit  shall  be  subject  to the following limitations:  (a)  If  the  member  last  joined  the  retirement  system  prior  to attainment  of  age fifty-two, the maximum benefit shall be three years' salary;  (b) If the member was age fifty-two when he or  she  last  joined  the retirement  system,  the maximum benefit shall be two and one-half times annual salary;  (c) If the member was age fifty-three when he or she last  joined  the retirement system, the maximum benefit shall be two years' salary;  (d)  If  the  member was age fifty-four when he or she last joined the retirement system, the maximum benefit shall be one and  one-half  times annual salary;  (e) If the member was age fifty-five or older but under age sixty-five when  he  or  she last joined the retirement system, the maximum benefit shall be one year's salary; and  (f) If the member was age sixty-five or older  when  he  or  she  last joined  the retirement system, the maximum benefit shall be one thousand dollars.   In the case of a member of a retirement system other than the New York state  teachers'  retirement  system,  the  New  York  city   employees' retirement  system,  the  New  York  city  board of education retirement system, the New York city teachers'  retirement  system,  the  New  York state  and  local employees' retirement system or the New York state and local police and fire retirement system, commencing upon  attainment  of age sixty-one, the benefit otherwise provided pursuant to this paragraph shall  be reduced while the member is in service to ninety per centum of the benefit otherwise payable  and  each  year  thereafter  the  benefit payable  shall  be reduced by an amount equal to ten per centum per year of the original benefit otherwise payable, but not below ten per  centum of the original benefit otherwise payable.   In  the  case  of  a member of the New York state teachers' retirement system,  commencing  upon  attainment  of  age  sixty-one,  the  benefit  otherwise provided pursuant to this paragraph shall be reduced while the member  is  in service to ninety-six per centum of the benefit otherwise payable and each year thereafter the benefit payable shall be reduced by an  amount  equal  to  four  per centum per year of the original benefit otherwise payable, but not  below  sixty  per  centum  of  the  original benefit  otherwise payable. In the case of a member of the New York city employees' retirement system, the  New  York  city  board  of  education retirement  system  or  the  New  York city teachers' retirement system, commencing upon attainment  of  age  sixty-one,  the  benefit  otherwise provided pursuant to this paragraph shall be reduced while the member is in  service  to  ninety-five per centum of the benefit otherwise payable and each year thereafter the benefit payable  shall  be  reduced  by  an amount  equal  to  five  per  centum  per  year  of the original benefit otherwise payable, but not  below  fifty  per  centum  of  the  original benefit  otherwise  payable.  In  the case of any member of the New York state and local employees' retirement system who is permitted to  retire without regard to age or a member of the New York state and local police and fire retirement system, commencing upon attainment of age sixty-one, the  benefit  otherwise  provided  pursuant  to  this paragraph shall be reduced while the member is in service to ninety-seven per centum of the benefit otherwise payable, and each year thereafter the benefit  payable shall  be reduced by an amount equal to three per centum per year of the original benefit otherwise payable, but not below seventy per centum  of the  original benefit otherwise payable. In the case of any other member of the New York state and local employees' retirement system, commencing upon  attainment  of  age  sixty-one,  the  benefit  otherwise  provided pursuant  to  this  paragraph  shall  be  reduced while the member is in service to ninety-six per centum of the benefit otherwise  payable,  and each  year  thereafter the benefit payable shall be reduced by an amount equal to four per centum per year  of  the  original  benefit  otherwise payable,  but  not  below  sixty  per  centum  of  the  original benefit otherwise payable. Upon  retirement  from  any  retirement  system,  the benefit  in  force shall be reduced by fifty per centum; upon completion of the first year of retirement, the benefit in force  at  the  time  of retirement shall be reduced by an additional twenty-five per centum, and upon  commencement of the third year of retirement, the benefit shall be ten per centum of the benefit in force at age sixty, if any, or  at  the time  of  retirement if retirement preceded such age; provided, however, the benefit in retirement shall not be reduced below ten per  centum  of the  benefit in force at age sixty, if any, or at the time of retirement if retirement preceded such age. Notwithstanding any other provision  of this  paragraph  to the contrary, the benefit for a retiree from the New York state and local employees' retirement system and the New York state teachers' retirement system shall not be reduced below ten per centum of the benefit in force at the time of retirement.   3. If a member dies  in  service  without  having  made  the  election specified  in this subdivision within ninety days after first becoming a member, or within the period prescribed  by  the  retirement  system  of which  he  is a member if such period is less than ninety days, he shall be deemed to have made the election specified in paragraph two.   4. Notwithstanding any other provision of this article, any member  of the  New  York  state teachers' retirement system who joined on or after July first,  nineteen  hundred  seventy-three  and  before  July  first, nineteen  hundred seventy-four may change the election set forth in this subdivision by filing a  new  election  on  or  before  June  thirtieth, nineteen  hundred  eighty-nine.  The  election  filed  pursuant  to this paragraph shall be irrevocable.    5. Notwithstanding any provision  of  this  article,  a  member  of  a retirement  system  subject  to  the provisions of this article who last joined such system on or after January first, two thousand  one  who  is not  covered  by the death benefit calculation provided in subdivision b of  this section shall, upon a qualifying death, be covered by the death benefit  calculation  provided  pursuant  to  paragraph  two   of   this subdivision and shall not be entitled to elect between the death benefit calculations provided in paragraphs one and two of this subdivision. Any individual  who  last  joined  such  system  before  January  first, two thousand one who  is  not  covered  by  the  death  benefit  calculation provided  in  subdivision  b  of  this  section shall be covered, upon a qualifying death, by the death benefit calculation provided by paragraph two of this subdivision unless such individual had timely elected  death benefit coverage under the calculation provided by paragraph one of this subdivision  and, upon such death, it is determined that the benefit, as calculated under such paragraph one would be greater than as  calculated under  such  paragraph  two,  in which case the benefit calculated under such paragraph one shall be payable.   b. A member of a retirement system subject to the provisions  of  this article  who  is  a  police  officer, firefighter, correction officer or sanitation worker and is in a plan which  permits  immediate  retirement upon  completion  of a specified period of service without regard to age or who is subject to the provisions of subdivision  b  of  section  four hundred forty-five of this article, shall upon completion of ninety days of  service be covered for financial protection in the event of death in service pursuant to this subdivision.   1. Such death benefit shall be  equal  to  three  times  the  member's salary  raised to the next highest multiple of one thousand dollars, but in no event shall it exceed three times the maximum salary specified  in section one hundred thirty of the civil service law or, in the case of a member  of  a  retirement system other than the New York city employees' retirement system, the New York city police pension fund, subchapter two or the New York city fire department pension fund, subchapter  two,  the specific   limitations  specified  for  age  of  entrance  into  service contained in subparagraphs (b), (c), (d), (e) and (f) of  paragraph  two of subdivision a of this section.   2.  Provided  further,  notwithstanding  any  other  provision of this article to the contrary,  where  the  member  is  a  police  officer  or firefighter and would have been entitled to a service retirement benefit at  the time of his or her death and where his or her death occurs on or after  July  first,  two  thousand,  the  beneficiary  or  beneficiaries nominated  for the purposes of this subdivision may elect to receive, in a lump sum, an amount payable  which  shall  be  equal  to  the  pension reserve  that  would have been established had the member retired on the date of his or her death, or the value of  the  death  benefit  and  the reserve-for-increased-take-home-pay,   if  any,  whichever  is  greater, provided further that for the purpose of determining entitlement to  the benefit  provided by this subdivision, and notwithstanding subdivision j of section three hundred forty-one of this chapter, where the member  is an  officer  or  member  of the state police the total number of days of unused sick leave and accumulated vacation credit accrued by the  member at the time of his or her death shall be considered in meeting the total creditable  service required to qualify for a service retirement benefit provided without regard to age where his or her death occurs on or after July second, two thousand nine. Provided further that where such  police officer  or firefighter dies on or after July first, two thousand, after having retired from service, but before a first payment of a  retirement allowance,  such  person  shall be deemed to have been in service at the  time of his or her death for the purposes of this subdivision only,  and provided  further  that the pension reserve established pursuant to this paragraph for a person who dies after retiring from service, but  before first  payment  of a retirement allowance, shall be determined as of the date of retirement and any pension payments payable for  the  period  of time  prior  to  the retiree's death shall be deducted from any benefits payable pursuant to this subdivision.   c. For the purpose of  this  section,  salary  shall  be  the  regular compensation earned during the member's last twelve months of service in full  pay  status  as a member or, if he or she had not completed twelve months of service prior to the date of death, but  was  subject  to  the provisions  of subdivision b of this section, the compensation he or she would have earned had he or she worked for the twelve  months  prior  to such  date;  provided,  however,  for the purpose of this section salary shall exclude any form of  termination  pay  (which  shall  include  any compensation in anticipation of retirement), or any lump sum payment for deferred  compensation sick leave, or accumulated vacation credit or any other payment for time not  worked  (other  than  compensation  received while  on  sick  leave  or  authorized leave of absence) and in no event shall it exceed the maximum salary  specified  in  section  one  hundred thirty  of  the  civil service law, as added by part B of chapter ten of the laws of two thousand eight,  or  the  maximum  salary  specified  in section  one  hundred  thirty  of  the  civil  service law, as hereafter amended, whichever is greater.   d. The benefits provided pursuant to this section are in lieu  of  all other  benefits  provided  by  this  or  any  other  state  or local law exclusive of a benefit provided under the  workmen's  compensation  law, the  civil  service  law  or  group life insurance; provided, however, a beneficiary of a member eligible for  a  benefit  as  the  result  of  a service  connected  accident, may elect to receive such other benefit in lieu of the benefit provided pursuant to this section.   e. For the purposes of this section:   1. A member who dies while off the payroll shall be considered  to  be in service provided he or she (a) was on the payroll in such service and paid  within a period of twelve months prior to his or her death, or was on the payroll in the service upon which membership is based at the time he or she was ordered to active duty pursuant to Title 10 of the  United States Code, with the armed forces of the United States or to service in the  uniformed services pursuant to Chapter 43 of Title 38 of the United States Code and died while  on  such  active  duty  or  service  in  the uniformed  services  on or after June fourteenth, two thousand five, (b) had not been otherwise gainfully employed since he or she ceased  to  be on  such  payroll and (c) had credit for one or more years of continuous service since he or she last entered or reentered the service of his  or her  employer;  notwithstanding  any  other  provision  of  law  to  the contrary, a member of the New York city employees' retirement system  or the  board  of education retirement system of the city of New York shall be deemed to have died on the payroll for the purposes of  this  section in  the  event  that  death occurs while such member is on an authorized leave of absence without pay for medical reasons which has  continuously been  in  effect  since  the member was last paid on the payroll in such service, provided, however, that such member was on the payroll in  such service  and paid within the four-year period prior to his or her death; and   2. The benefit payable shall be in addition to  any  payment  made  on account of a member's accumulated contributions.   3.  Provided,  further,  that  any  such member ordered to active duty pursuant to Title 10 of the United States Code, with the armed forces of  the United States or to service in the uniformed  services  pursuant  to Chapter  43  of  Title  38  of  the United States Code who died prior to rendering the minimum amount of service necessary  to  be  eligible  for this  benefit  shall be considered to have satisfied the minimum service requirement.   f. Notwithstanding the provisions of any other law to the contrary and solely for the purpose of determining eligibility for the death  benefit payable pursuant to this section, a person subject to this section shall be  considered  to  have  died  while  in teaching service provided such person was in such service at the time he or she was ordered  to  active duty  pursuant  to  Title  10  of the United States Code, with the armed forces of the United States or to  service  in  the  uniformed  services pursuant  to  Chapter  43 of Title 38 of the United States Code and died while on such active duty or service in the  uniformed  services  on  or after  June  fourteenth,  two thousand five. Provided, further, that any such person ordered to active duty pursuant to Title 10  of  the  United States Code, with the armed forces of the United States or to service in the  uniformed services pursuant to Chapter 43 of Title 38 of the United States Code who died prior to rendering the minimum  amount  of  service necessary  to  be  eligible for this benefit shall be considered to have satisfied the minimum service requirements.   g. A member, or on the death of such member, the person  nominated  by him  or her to receive his or her death benefit, may provide, by written designation, duly executed and filed with  the  comptroller,  that  such death  benefit and the reserve-for-increased-take-home-pay shall be paid in the form of an annuity. Such designation shall be filed prior  to  or within  ninety  days  after  the death of the member. The amount of such annuity shall be determined as the actuarial equivalent  of  such  death benefit  and  reserve on the basis of the age of such beneficiary at the time of the member's death. For the purposes of  this  subdivision,  the mortality  and  interest rates used in determining this annuity shall be the rates in effect on the date of the death of such member.