New York 2025-2026 Regular Session

New York Assembly Bill A06288

Introduced
3/3/25  

Caption

Allows a beneficiary of a member whose death occurs on or after July 1, 2025 and who would have been entitled to a service credit at the time of such member's death to elect to receive a lump sum payment equal to the pension reserve that would have been established had the member retired on the date of such member's death.

Summary

Bill A06288 amends the retirement and social security law to allow beneficiaries of certain deceased members of the New York State and Local Employees' Retirement System to elect to receive death benefits in a lump sum. Specifically, if a member who would have been entitled to a service retirement benefit dies on or after July 1, 2025, their nominated beneficiaries can choose to receive a lump sum payment equivalent to the pension reserve that would have been established had the member retired on their date of death, or the value of the death benefit and any reserve-for-increased-take-home-pay, whichever is greater.

Impact

This bill modifies the in-service death benefit for retirement-eligible members employed by the State of New York, particularly correction officers and security hospital treatment assistants. It introduces a significant change in how death benefits are calculated, potentially increasing the financial obligations of the state due to the lump sum payments. The anticipated fiscal impact includes an increase of approximately $1.7 million in annual contributions for the fiscal year ending March 31, 2026, and a one-time past service cost of about $16.6 million.

Sentiment

The sentiment surrounding Bill A06288 appears to be cautiously optimistic, with discussions focusing on the benefits it provides to beneficiaries of deceased members. However, there may be concerns regarding the financial implications for the state budget, particularly in light of the projected costs associated with the changes to the death benefit structure.

Contention

Notable points of contention may arise from the financial impact of the bill on the state budget, particularly the one-time past service cost and the ongoing annual contributions. Some legislators may express concerns about the sustainability of these costs, while others may advocate for the importance of providing adequate benefits to the families of deceased members, highlighting the need for support for those who have lost loved ones in service.

Companion Bills

NY S06406

Same As Allows a beneficiary of a member whose death occurs on or after July 1, 2026 and who would have been entitled to a service credit at the time of such member's death to elect to receive a lump sum payment equal to the pension reserve that would have been established had the member retired on the date of such member's death.

Previously Filed As

NY A10843

Allows a beneficiary of a member whose death occurs on or after July 1, 2026 and who would have been entitled to a service credit at the time of such member's death to elect to receive a lump sum payment equal to the pension reserve that would have been established had the member retired on the date of such member's death.

NY S06406

Allows a beneficiary of a member whose death occurs on or after July 1, 2026 and who would have been entitled to a service credit at the time of such member's death to elect to receive a lump sum payment equal to the pension reserve that would have been established had the member retired on the date of such member's death.

NY A07335

Relates to death benefits for members of the uniformed force of the New York city department of sanitation and members of the uniformed force of the New York city department of correction; establishes that the beneficiaries of a member who would have been entitled to a service retirement benefit at the time of such member's death 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 such member's death, or the value of the death benefit and the reserve-for-increased-take-home-pay, if any, whichever is greater.

NY S06401

Relates to death benefits for members of the uniformed force of the New York city department of sanitation and members of the uniformed force of the New York city department of correction; establishes that the beneficiaries of a member who would have been entitled to a service retirement benefit at the time of such member's death 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 such member's death, or the value of the death benefit and the reserve-for-increased-take-home-pay, if any, whichever is greater.

NY HB2144

Increases the Public School Retirement System (PSRS) one-time death benefit payment to $10,000 for retiree member deaths arising on or after August 28, 2026

NY A10355

Permits an eligible retirement system member to receive, in lieu of an ordinary death benefit, a death benefit such member would otherwise be entitled to receive provided such member is a state-paid judge or justice of the unified court system or a housing judge of the civil court of the city of New York.

NY S09276

Permits an eligible retirement system member to receive, in lieu of an ordinary death benefit, a death benefit such member would otherwise be entitled to receive provided such member is a state-paid judge or justice of the unified court system or a housing judge of the civil court of the city of New York.

NY S0777

Requires that present and former employees, active and retired members, and beneficiaries receiving any retirement, disability or death allowance receive a $2,000 increase per year.

NY SB151

To Amend Law Concerning Retirement Benefits; And To Prohibit Collection Of Benefits By Members, Retirants, Or Beneficiaries Of Retirement Systems Who Have Been Convicted Of Certain Offenses.

NY A1932

Increases accidental death benefit for surviving spouse or surviving children of certain PERS members and retirants; provides accidental death benefit to beneficiary of certain PERS and PFRS members and retirants; redefines child.

Similar Bills

No similar bills found.