What's happening
This bill allows beneficiaries of certain New York public employees who die after filing for retirement to choose between a death benefit or the retirement benefit option selected by the member.
Why it matters
Addresses a critical timing gap. The bill helps families of public employees who die shortly after filing for retirement by letting beneficiaries avoid losing out on potentially more favorable retirement benefits simply because the employee passed away before the retirement paperwork took effect.
Provides beneficiaries with meaningful choice. Instead of automatically defaulting to a death benefit, the bill allows the beneficiary to select the option (death benefit or retirement benefit) that is best for their circumstances, potentially resulting in higher or more flexible financial support.
Retroactive and potentially broad impact. The legislation applies to deaths occurring as far back as January 1, 2017, potentially helping hundreds of families who were previously affected by the rigid timing rules and offering relief to those who may have missed out on more advantageous benefits.
Has fiscal and administrative consequences. The change is expected to increase costs for the state and participating employers, as some retirement options could pay out more than the standard death benefit; it also adds administrative complexity to process these new choices and retroactive claims.
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Who cares
Headline styles
Let Beneficiaries Pick Pension
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 39
History
- Reported and committed to finance
- Print number 5763c
- Amend and recommit to civil service and pensions
- Referred to civil service and pensions
- Returned to senate
- Died in assembly
- Referred to ways and means
- Returned to assembly
- Repassed senate
- Amended on third reading 5763b
- Vote reconsidered - restored to third reading
- Returned to senate
Show 10 earlier actions
- Recalled from assembly
- Referred to governmental employees
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.926
- Print number 5763a
- Amend and recommit to civil service and pensions
- Referred to civil service and pensions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Beneficiaries Choose Pension
In Assembly Committee · Ways And Means · Sponsor Kenneth Zebrowski
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5763--C
2019-2020 Regular Sessions
IN SENATE
May 14, 2019
Introduced by Sens. SKOUFIS, ADDABBO, BIAGGI, CARLUCCI, GOUNARDES, HARCKHAM, RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -committee discharged, bill amended, ordered reprinted as… Show allHide
Introduced by Sens. SKOUFIS, ADDABBO, BIAGGI, CARLUCCI, GOUNARDES, HARCKHAM, RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote reconsidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading -- recommitted to the Committee on Civil Service and Pensions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the retirement and social security law, in relation to authorizing the beneficiaries of a member of the state and local employees' retirement system who die after filing a retirement application to choose pension benefits rather than a death benefit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision a of section 70 of the retirement and social security law, as amended by chapter 375 of the laws of 2011, is amended to read as follows:
a. Any member may retire if he or she shall have attained at least the minimum retirement age while in service as a member, or while in federal service, or in the service of the United Nations or other international organizations of which the United States is a member, as a member continued pursuant to paragraph one of subdivision f of section forty of this article, or while entitled to make application for a vested retirement allowance pursuant to section seventy-six of this title. Any such member desiring to retire shall execute and file with the comptroller an application for retirement, which shall specify the effective date of his or her retirement, which shall be not less than fifteen nor more
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11209-11-0
S. 5763--C 2
than ninety days subsequent to such date of filing. An application for service retirement, filed hereunder in accordance with the provisions of subdivision c of section sixty-two or subdivision f of section sixtythree of this article, shall be processed in the regular manner, provided that if the application filed simultaneously therewith under either of such subdivisions is granted, then and in that event the retirement allowance granted in accordance with the provisions of this section shall be appropriately adjusted. Notwithstanding any other provision of law, for any member who is eligible to retire and who has died while in active service, and who has filed an application for service retirement less than thirty days prior to death, the member's active beneficiary shall have the option to choose the death benefit or if such member filed an option election form prior to death, the benefit elected by the member on such form, in which case the member will be deemed to have retired the day prior to death.
§ 2. Notwithstanding any other provision of law to the contrary, none of the provisions of this act shall be subject to section 25 of the retirement and social security law.
§ 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2017.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would allow a deceased member's active death beneficiary the
option to make effective the service retirement and option election form
filed by the member, resulting in payment of a survivor's benefit in
lieu of the member's active death benefit, provided the member is (1)
eligible to retire (on the day before the date of death), (2) has died
in active service, (3) has filed an application for service retirement
less than thirty days prior to death, and (4) has filed an option
election form prior to death. The date used for the deemed service
retirement will be the day prior to the member's death. This bill will
include deaths which occurred on or after January 1, 2017.
If this bill is enacted, the cost will depend upon the deceased
member's age, service, salary, plan, and the optional form selected by
the member on the option election form filed with the New York State and
Local Employees' Retirement System (NYSLERS). For standard options,
there will be an estimated additional cost of up to five (5) times the
salary of a deceased member. This cost assumes that the post-retirement
death benefit will be payable on behalf of eligible members only when
the service retirement form is selected.
The number of members and beneficiaries who could be affected by this
legislation cannot be readily determined, but it is estimated that
approximately 450 beneficiaries could benefit from this provision each
year. Those costs arising would be shared and spread by the State of New
York and the participating employers in NYSLERS.
In addition to the per person costs stated above, there will be an
administrative cost to implement the provisions of this legislation.
Summary of relevant resources:
The membership data used in measuring the impact of the proposed
change was the same as that used in the March 31, 2019 actuarial valu-
ation. Distributions and other statistics can be found in the 2019
Report of the Actuary and the 2019 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, 2017, 2018, and 2019 Annual Report to the Comptroller on Actuarial
Assumptions, and the Codes, Rules, and Regulations of the State of New
York: Audit and Control.
S. 5763--C 3
The Market Assets and GASB Disclosures are found in the March 31, 2019
New York State and Local Retirement System Financial Statements and
Supplementary Information.
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
This fiscal note does not constitute a legal opinion on the viability
of the proposed change nor is it intended to serve as a substitute for
the professional judgment of an attorney.
This estimate, dated January 28, 2020, and intended for use only
during the 2020 Legislative Session, is Fiscal Note No. 2020-45,
prepared by the Actuary for the New York State and Local Retirement
System.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the retirement and social security law, in relation to authorizing the beneficiaries of a member of the state and local employ- ees' retirement system who die after filing a retirement application to choose pension benefits rather than a death benefit
Purpose or general idea of bill
This bill would allow beneficiaries of members who died within 30 days of filing a retirement application to choose pension benefits.
Summary of provisions
Section one of the bill amends section 70 of the retirement and social security law as it relates to allowing beneficiaries of members of the state and local retirement system who died within 30 days of filing retirement application to choose pension benefits.
Section two of the bill provides that none of the provisions of the bill shall be subject to section 25 of the retirement and social security law.
Section three of the bill relates to the effective date.
Difference between original and amended version (if applicable)
Amended to notwithstand section 25 appropriation language and include an updated fiscal note.
Justification
Currently, a member who files a retirement application most wait at least 15 days before the retirement may become active. There are tragic stories where a member of the state and local retirement system who filed their retirement application died before the application became effective. This loophole deprives their families of the ability to obtain their pension but rather will receive the death benefit; a lower beneficiary payment. This bill expands protections that members of the police and fire retirement system have which allows the beneficiaries of a member who died within 30 days of filing a retirement application to be eligible to receive their pension.
Prior legislative history
New bill.
Fiscal implications for state and local governments
See attached fiscal note.
Effective date
This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.