2023 New York Laws › EDN - Education › Title 1 - General Provisions › Article 11 - State Teachers' Retirement System for Public School Teachers › 512 - Withdrawal and Death Benefits.

§ 512. Withdrawal  and  death  benefits.  Benefits upon withdrawal and
death shall be payable as follows:
a. A member who withdraws from service or ceases to be a  teacher  for
any  cause  other  than  death or retirement shall be paid on demand the
accumulated contributions standing  to  the  credit  of  his  individual
account  in  the  annuity  savings fund. A member who has no accumulated
contributions credited to his individual account in the annuity  savings
fund  and  who  ceases to be a teacher for any cause other than death or
retirement may withdraw from membership in the system by filing a notice
of withdrawal with the system pursuant to rules and regulations  adopted
by the retirement board.
b.  1.  Should  a  contributor  die before retirement, his accumulated
contributions shall be paid to his estate or to such person as he  shall
have  nominated  to  receive  such benefit. In the event such designated
beneficiary does not survive him, or if he shall not have so  designated
a  beneficiary,  such  benefit shall be payable to the deceased member's
estate or as provided in section one hundred  three-a  of  the  decedent
estate law. Such nomination must be by written designation duly executed
and filed with the retirement board.
2.  In  addition  to  the return of accumulated contributions, a death
benefit also shall be payable upon the death of a member who dies before
the effective date of his retirement, and was in service upon which  his
membership  was based when he died or was on the payroll in such service
and paid within a period of twelve months prior to his death and had not
been otherwise gainfully employed since he ceased to be on such  payroll
or  if, during the period that membership is valid, the retirement board
shall determine to its satisfaction that said member was  physically  or
mentally incapacitated for the performance of duty at the time he ceased
to  be  on  the  payroll  in  such  service  and  that  he  had  been so
incapacitated and had not been otherwise  gainfully  employed  since  he
ceased  to  be  on  such payroll; provided he had credit for one or more
years of service while actually a member. The amount  of  death  benefit
shall  be  computed  by  multiplying  one  twelfth  of  the compensation
earnable by such member during his last twelve months of service while a
member by the number of years, not to exceed twelve, of his total credit
for service as a teacher in this state. Where the member has  more  than
twelve years of credited service as a teacher in this state and when his
death  occurs  on  or  after July first, nineteen hundred sixty-one, and
before July first, nineteen hundred seventy-four, there shall  be  added
to such benefit one twenty-fourth of such compensation multiplied by the
number  of years in excess of twelve, but not to exceed twenty-four such
years, of his total credit for service as a teacher in  the  state.  The
death benefit shall be paid to such person as he shall have nominated to
receive  such benefit. In the event such designated beneficiary does not
survive him, or if he shall not have so designated a  beneficiary,  such
benefit  shall be payable to the deceased member's estate or as provided
in section  one  hundred  three-a  of  the  decedent  estate  law.  Such
nomination  must  be by written designation duly executed and filed with
the  retirement  board.  The  provisions  of  this  paragraph   two   of
subdivision  b  of  this section shall apply only to deaths occurring on
and after July first, nineteen hundred fifty-nine.
3. Notwithstanding any other provisions of this article or  any  rules
or  regulations  adopted  thereunder  by the retirement board, the death
benefit payable pursuant to paragraph two of this  subdivision,  in  the
case  of  a member who dies after having become eligible to apply and be
retired for special service or superannuation pursuant to the provisions
of this article, shall be increased by the  amount,  if  any,  that  the
actuarial equivalent of the pension portion of his retirement allowance,

computed  as if he had been retired on the day immediately preceding his
death, and computed in accordance with the provisions of subdivision two
of section five hundred ten and subdivision four of section five hundred
eleven-a  of  this  article,  exceeds  the  amount  of the death benefit
otherwise payable pursuant to paragraph two  of  this  subdivision.  The
provisions  of  this  paragraph  three  of subdivision b of this section
shall apply only to deaths  occurring  after  the  date  on  which  said
paragraph  three  becomes  operative  and  prior to July first, nineteen
hundred seventy-four.
4.  Notwithstanding  any  other  provision  of   this   article,   the
requirement  of  one  or more years of credited service, as set forth in
paragraph two  of  this  subdivision,  shall  be  deemed  to  have  been
satisfied  by  any  member  who  has  credit for three or more months of
service rendered since last becoming a member. The  provisions  of  this
paragraph  shall  apply  only  to deaths occurring after June thirtieth,
nineteen  hundred  seventy  and  before  July  first,  nineteen  hundred
seventy-five.
5.  Notwithstanding  any  other  provision  of this article, the death
benefit payable pursuant to paragraph two of this subdivision  shall  be
increased  by  the excess, if any, of the greater of a or b over the sum
of c and d, where a, b, c and d are as set forth hereunder:
a. One-twelfth of the member's compensation multiplied by  the  number
of years, not to exceed thirty-six, of his total credited state service.
b.  The  lesser  of  three  times  the member's compensation or twenty
thousand dollars.
c. The death benefit which,  in  accordance  with  the  provisions  of
paragraph  two of this subdivision, is payable in addition to the return
of accumulated contributions.
d. The reserve for increased-take-home-pay.
The term "compensation", as used in this subparagraph, shall mean  (1)
in  the case of a member who has credit for one or more years of service
rendered since last becoming a member, the compensation earned  by  such
member  during his last twelve months of service, and (2) in the case of
a member who has credit for less than one year of service rendered since
last becoming a member, it shall mean his annual rate of compensation at
the time of his death. The provisions of this paragraph shall apply only
to deaths occurring after June thirtieth, nineteen hundred  seventy  and
before  July  first, nineteen hundred seventy-five. The additional death
benefits payable hereunder shall be construed  as  being  payable  under
paragraph  two of this subdivision for the purpose of computing benefits
payable under paragraph three of this subdivision.
c. The member or, within ninety  days  after  his  death,  the  person
nominated by him to receive any benefit payable on his account, may file
with   the  retirement  board  a  written  designation,  duly  executed,
providing that such benefit shall be paid in the form of an  annuity  to
the  person  so  nominated.  Such  annuity  shall  be  determined as the
actuarial equivalent of the benefit otherwise payable, on the  basis  of
the  interest  rate  and  the mortality tables adopted by the retirement
board for use in the calculations of such annuities. Such annuity  shall
be  payable  throughout  the  life  of  the person so nominated, with no
payments at his death unless the member or, within ninety days after his
death, the person nominated by him to receive his benefit,  shall  elect
to  have  the actuarial equivalent of such annuity paid in the form of a
reduced annuity payable for life with the provision that if  the  person
so  nominated should die before the annuity payments received by him are
equal to such actuarial equivalent, the balance thereof shall be paid in
a lump sum to such beneficiary's estate or to such person as such member
or his nominee shall have designated. Such designation of a  beneficiary

to receive such benefit may be made or changed at any time by the person
who  made  it.  Such  election  or  change  shall  be  made  by  written
designation  duly  executed  and  filed  with  the   retirement   board.
Notwithstanding  the foregoing provisions, the retirement board reserves
the right to pay any benefit in the form of a lump sum  payment  if  the
annuity  determined as the actuarial equivalent of the benefit otherwise
payable is less than one hundred dollars per month.
d. 1. The retirement board may adopt rules and  regulations  providing
that a trustee of an inter vivos or testamentary trust shall be eligible
to  be nominated to receive a lump sum benefit pursuant to subdivision b
of this section.
2. Any proceeds received by a trustee under this section shall not  be
subject to the debts of the member or to transfer or estate taxes to any
greater  extent  than if such proceeds were payable to the beneficiaries
named in the trust and not to the estate of the member.
3. A payment made in  good  faith  under  this  section  to  either  a
designated  trustee  of  an inter vivos trust, a successor trustee of an
inter vivos trust who provides a copy of his appointment or a trustee of
successor trustee of a testamentary trust who provides  a  copy  of  the
letters  of  trusteeship  shall be a complete discharge to the system to
the extent of the payment.
4. If no qualified trustee claims the proceeds within eighteen  months
after  the death of the member, or if satisfactory evidence is furnished
within such period showing that there  is  or  will  be  no  trustee  to
receive  the  proceeds,  payment  shall be made to the deceased member's
estate.
e. Notwithstanding any other provision of law, a member  with  ten  or
more  years  of  credited  service  in  such  system  who  dies before a
retirement benefit becomes payable and who is otherwise not entitled  to
a  death benefit from the retirement system shall be deemed to have died
on the last day that he or she was in service  upon  which  his  or  her
membership  was  based  for purposes of eligibility for the payment of a
death benefit pursuant to the provisions  of  this  section.  The  death
benefit  payable in such case shall be one-half of that which would have
been payable had such member died on  the  last  day  that  service  was
rendered.
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 servicers 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.
g. Notwithstanding any other provision of law  to  the  contrary,  any
member  of  the retirement system subject to article fourteen or fifteen
of the retirement and social security law  who  has  permanently  ceased
teaching  shall  have  the  right  to  elect  the  return  of his or her
accumulated contributions and thereby terminate his or her membership in
the retirement system without regard to the amount of service to his  or

her  credit,  provided  a  public  employee retirement system in another
state has certified in a manner satisfactory to  the  system  that  such
member  is  a  member of such other retirement system, has at least five
years  of  retirement credit in such other system, and is eligible, upon
the termination of his or  her  membership  in  the  system,  to  obtain
retirement  credit in such other retirement system for the service which
has been credited to his or her membership in the system. Upon refund of
such  accumulated  contributions,  any  and  all  obligations   of   the
retirement  system  to  such  member  shall  be  totally discharged. The
retirement board is authorized to adopt such rules  and  regulations  as
may be necessary to implement this subdivision.
* h.  1. Notwithstanding any other provision of this article or of any
general, special or local law  to  the  contrary,  and  solely  for  the
purpose  of  determining  eligibility  for  benefits under this section,
where:
(A) a member reported in person to such member's usual place of public
employment at the direction of such member's public employer or  to  any
alternate  worksite  as  directed  by  such public employer, on or after
March first, two thousand twenty, provided that such alternate  worksite
was not such member's home or residence;
(B)  such  member  contracted  COVID-19  within  forty-five days after
reporting to work as described in subparagraph (A) of this paragraph  as
confirmed  by a positive laboratory test or as diagnosed before or after
such member's death by a licensed, certified, registered  or  authorized
physician,  nurse  practitioner,  or  physician's assistant currently in
good standing in any state or the District of Columbia, or a  physician,
nurse  practitioner,  or physician's assistant authorized to practice in
New York by executive  order  during  the  declared  COVID-19  state  of
emergency; and
(C)  such member died on or before December thirty-first, two thousand
twenty-four, and COVID-19 caused or contributed to such member's  death,
as  documented  on such member's death certificate, or as certified by a
physician, nurse practitioner, or  physician's  assistant  described  in
subparagraph  (B)  of  this  paragraph  who determines with a reasonable
degree of medical certainty that COVID-19 caused or contributed  to  the
member's  death,  such  member's  statutory beneficiary shall receive an
accidental death benefit, unless such statutory  beneficiary  elects  to
receive an ordinary death benefit.
2.  Any amount payable as a result of this section shall be reduced by
any amount paid by such member's retirement system to any  recipient  of
ordinary death benefits under this article.
3.  (A)  Notwithstanding  any  provision  of  this  article  or of any
general, special or local law  to  the  contrary,  and  solely  for  the
purpose  of  determining  eligibility  for  benefits under this section,
where a member:
(i) retired from his or her retirement system on or after March first,
two thousand twenty, and before July first, two thousand twenty;
(ii) on or after March first, two thousand twenty, reported in  person
to  such  member's  usual place of public employment at the direction of
such member's public employer or to any alternate worksite  as  directed
by  such  public employer, provided that such alternate worksite was not
such member's home or residence;
(iii) contracted COVID-19 within forty-five days after any  such  date
of  reporting  to  work in person, as confirmed by a positive laboratory
test or as diagnosed before or after such member's death by a  licensed,
certified,  registered  or  authorized physician, nurse practitioner, or
physician's assistant currently in good standing in  any  state  or  the
District of Columbia, or a physician, nurse practitioner, or physician's

assistant  authorized  to practice in New York by executive order during
the declared COVID-19 state of emergency; and
(iv) such member died on or before December thirty-first, two thousand
twenty,  and  COVID-19  caused or contributed to such member's death, as
documented on such member's death certificate,  or  as  certified  by  a
physician,  nurse  practitioner,  or  physician's assistant described in
clause (iii) of this  subparagraph  who  determines  with  a  reasonable
degree  of  medical certainty that COVID-19 caused or contributed to the
member's death, such member's statutory  beneficiary  shall  receive  an
accidental death benefit if such statutory beneficiary elects conversion
of  the  member's  service  or  disability  retirement  benefit  into an
accidental death benefit.
(B)  Such  member's  statutory  beneficiary,  as  defined  under  this
article,  for  purposes  of  accidental death benefits payable from such
member's retirement system under this article, may, within  ninety  days
of  such  member's  retirement  or September first, two thousand twenty,
whichever is later, apply to such member's retirement system to  request
the conversion of such member's service or disability retirement benefit
into  an  accidental death benefit. For purposes of the salary base upon
which the accidental death benefit is calculated, such member  shall  be
deemed to have died on the date of such member's retirement. At the time
of  such  conversion,  such  statutory  beneficiary shall relinquish all
rights  to  the  prospective  benefits  payable  under  the  service  or
disability  retirement  statute,  including  any  post-retirement  death
benefits, since such member's death. If the statutory beneficiary is not
the only beneficiary receiving or entitled to receive  a  benefit  under
the service or disability retirement statute, including, but not limited
to,  a post-retirement death benefit or benefit paid or payable pursuant
to the member's option selection, the accidental death benefit  payments
to  the  statutory  beneficiary  will  be reduced by any amounts paid or
payable to any other statutory beneficiary.
4. In  order  to  be  eligible  for  the  benefit  described  in  this
subdivision,  the applicable retirement system or systems are authorized
to  promulgate  rules  and  regulations  to  administer   this   benefit
including,  but  not  limited  to,  requiring  a  statement  to be filed
confirming the member contracted COVID-19 and the dates and locations of
the member's employment.
* NB Repealed December 31, 2024