Provides an option for beneficiaries of NYC transit authority members to receive a lump sum equal to the pension reserve where a member who is eligible for a service retirement dies prior to filing for retirement.
Summary
A06784 amends the retirement and social security law to create a new death benefit option for certain New York City Transit Authority members covered by NYCERS. If a transit member dies on or after the effective date after becoming eligible for a service retirement benefit, but before actually filing for retirement, the member’s beneficiary or beneficiaries may elect to receive a benefit equal to the pension reserve that would have been established had the member retired on the date of death. The payment may be taken as a lump sum or on an annuitized basis.
The bill is aimed at Transit Tier 4 and Tier 6 Special Plan members and is designed to give their survivors a benefit more closely aligned with the value of the retirement benefit the member had effectively earned. It also specifies that the new benefit is not subject to section 25 of the retirement and social security law and takes effect immediately. According to the fiscal note, the proposal would increase employer contributions for NYCERS and shift the cost to the New York City Transit Authority, with an estimated actuarial liability increase and ongoing contribution impacts over time.
Impact
The bill would change the death-benefit rules for eligible active New York City Transit Authority members in NYCERS by adding a pension-reserve-based option when a member dies after becoming retirement-eligible but before filing for service retirement. In practical terms, it expands survivor benefits beyond the ordinary death benefit currently available under the system and could result in larger payouts for affected beneficiaries. The fiscal note estimates increased employer contributions and additional unfunded accrued liability, with the financial burden allocated to the New York City Transit Authority.
Sentiment
The available voting history shows strong support and no recorded opposition in committee, with unanimous favorable votes in both the Assembly Ways and Means Committee and the Assembly Rules Committee. The bill’s framing suggests it is intended as a fairness measure for transit workers’ families, and the fiscal note treats the proposal as a manageable but real pension cost. No committee transcript is available, so the record reflects support through votes rather than detailed debate.
Contention
The main point of potential contention is fiscal: the bill would increase pension costs for the employer and create additional actuarial liability, which may raise concerns about long-term retirement system expenses and the impact on the New York City Transit Authority budget. Another possible issue is that the enhanced benefit is limited to a specific class of NYC transit members who are retirement-eligible but die before filing, which creates a targeted benefit expansion rather than a system-wide change. No explicit opposition is shown in the available committee votes, but the cost and scope of the benefit are the likely areas where disagreement could arise.
Same As
Provides an option for beneficiaries of NYC transit authority members to receive a lump sum equal to the pension reserve where a member who is eligible for a service retirement dies prior to filing for retirement.