Authorizes beneficiaries to choose pension benefits or a death benefit in certain circumstances; provides for the benefit if multiple beneficiaries cannot agree.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10570
SPONSOR: Rules (Zebrowski) TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
authorizing beneficiaries to choose pension benefits or a death benefit
in certain circumstances
PURPOSE:
To allow certain beneficiaries of members who died during the period
between filing an application for retirement and the date in which their
retirement application becomes effective to choose pension benefits.
SUMMARY OF PROVISIONS:
Section 1 amends section 70 of the retirement and social security law to
allow beneficiaries of the New York State and Local Retirement System
members who died within 90 days of filing the retirement application to
choose pension benefits.
Section 2 amends section 370 of the Retirement and Social Security Law
to make conforming changes to allow beneficiaries of Police and Fire
Retirement System members who died within 90 days of filing the retire-
ment application to choose pension benefits.
Section 3 provides that section 25 of the Retirement and Social Security
does not apply to the provisions of this legislation.
Section 4 sets forth the effective date.
JUSTIFICATION:
There are members of public retirement systems who dedicate their
careers to public service but who are unable to take advantage of the
hard-earned pension benefit that they worked for because they die, unex-
pectedly, prior to their date of retirement. This legislation protects
the beneficiaries of those members of the New York State and Local
Employees' Retirement System (ERS) and the New York State and Local
Police and Fire Retirement (PFRS) who are eligible for retirement but
who die within the period after filing their application for service
retirement and before their effective date of retirement.
Currently, ERS and PFRS members who are eligible to retire must file
their application for service retirement no more than 90 days but no
less than 15 days prior to their effective date of retirement. The
beneficiaries of ERS and PFRS members who die after their effective date
of retirement are eligible for a lifetime monthly benefit based on the
option elected by the member at retirement. However, the beneficiaries
of ERS members who die after the filing of their service retirement
application but prior to their effective date of retirement are not
eligible for a lifetime benefit. Instead, these beneficiaries are only
eligible for a one-time lump sum death benefit.
In 1999, RSSL Section 370 was amended by Chapter 570 of Laws of 1999 to
allow the beneficiaries of PFRS members who were eligible to retire the
opportunity to choose to receive a lifetime monthly benefit if the
member died within 30 days of filing their application for service
retirement but before their effective date of retirement.
This legislation amends RSSL Section 70 to provide the beneficiaries of
ERS members who die before their effective date of retirement with
comparable benefits to the benefits provided to the beneficiaries of
PFRS members under Chapter 570 of the Laws of 1999. Furthermore, this
legislation amends both Section 70 and 370 of the RSSL to provide the
beneficiaries of ERS and PFRS members with a choice to receive a life-
time monthly benefit if the member dies within 90 days of filing an
application for service retirement instead of the 30 days provided under
Chapter 570 of the Laws of 1999 to also protect the beneficiaries of
those members who file their retirement application within the 90-day
filing period prescribed by law but who die more than 30 days after
filing their retirement application. This legislation also clarifies
the rights of the beneficiaries, in event that the member designates
more than one beneficiary of the option or death benefit.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
EFFECTIVE DATE:
Immediately.
