Provides beneficiaries with the same allocation of retirement benefits

2 Co-sponsors

• Tony Avella
• Jack M. Martins

BILL NUMBER:S4141B

Title of bill

An act to amend the retirement and social security law, in relation to providing beneficiaries with the same allocation of retirement benefits if the member has the service retirement application, disability retirement applications or option election forms postmarked prior to his or her death

Purpose

The purpose of the bill is direct the Retirement System to process retirement applications with the same allocation of such benefits for members of the system that filed their retirement paperwork, as if they did not die during the 30 day processing time for the retirement system.

Summary of provisions

Section one of this bill amends the Retirement and Social Security Law by adding a new section 74-a authorizing a retirement system to promulgate a regulation creating a timely mailing rule. Such a rule would provide that whenever a document needs to be filed or moneys need to be paid in order for a member to be eligible for service credit or another benefit from the retirement system, the document shall deemed to be filed or the moneys shall be deemed to be paid on the date clearly marked by the United States Postal Service postmark, provided that the document or moneys were actually received by the retirement system.

Section two of this bill amends the Retirement and Social Security Law by adding a new section 374-a that states if a member dies prior to the Comptroller's receipt or the Retirement System's receipt of the application for service retirement, disability retirement or a retirement option election form and the application or form was mailed to the Comptroller or Retirement System by United States postal service first class mail prior to the date of death, the application or form shall be deemed filed on the date of mailing based on the legible postmark on the envelope. The Comptroller would have the sole authority to determine whether a postmark is legible, however, it cannot be deemed filed on the date of mailing unless actually received by the retirement system as a result of such mailing.

Section three of this bill provides that notwithstanding any provision of law to the contrary, the appropriation provisions of Retirement and Social Security Law section 25 shall not apply to this act.

Section four of this bill provides that this act shall take effect immediately.

Justification

Currently if a member files their retirement papers and subsequently dies prior to the system processing the member's papers, the member is afforded the in-service death benefit. This bill would allow the retirement system to process a members paperwork, as if that member

were still alive, so that the initial retirement payment selection that that member elects is payable to their beneficiary.

Legislative history

2014: S.4979-C - Passed the Assembly 2013: S.4979 - Referred to Civil Service and Pensions

Fiscal implications

See the Fiscal Note

Effective date

This act shall take effect immediately.