New York Assembly Bill A07335

New York 2025-2026 Regular Session

• Introduced: 3/25/25
• Refer: 3/25/25
• Refer: 1/7/26

Caption

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.

Summary

This bill expands death benefit options for certain New York City uniformed sanitation and correction employees. For members of the NYC Department of Sanitation and the NYC Department of Correction who die on or after July 1, 2026, and who would have been eligible for a service retirement benefit at the time of death, the beneficiary or beneficiaries may elect to receive a lump-sum payment equal to the pension reserve that would have been created if the member had retired on the date of death. If that amount is less than the existing death benefit plus any reserve-for-increased-take-home-pay, the beneficiaries would receive the greater amount instead. The bill amends multiple provisions of the Retirement and Social Security Law and the New York City Administrative Code to apply this alternative death benefit across the affected retirement systems and tiers, including NYCERS and related provisions covering correction and sanitation members. It does not change the basic three-times-salary death benefit for covered members generally, but creates a special election for these two uniformed forces when the member was already service-retirement eligible at death. The bill takes effect immediately, though the new benefit applies only to deaths occurring on or after July 1, 2026.

Impact

The bill would increase pension and death-benefit obligations for New York City, particularly the New York City Employees’ Retirement System, by creating a more generous optional lump-sum death benefit for eligible sanitation and correction members. It would amend state retirement law sections 448, 508, and 606, as well as section 13-148 of the New York City Administrative Code, thereby changing the statutory framework governing death benefits for these employees and their beneficiaries. The fiscal note estimates higher employer contributions and an increase in unfunded actuarial liability, with the cost borne entirely by New York City.

Sentiment

The available materials suggest the bill is intended as a benefit enhancement for public safety and uniformed sanitation/correction workers, with a generally supportive policy rationale centered on improving financial protection for families of members who die after becoming retirement-eligible. No committee transcript or recorded vote is provided, so there is no documented floor or committee debate to indicate broader legislative opposition or support. The fiscal note, however, makes clear that the proposal carries a measurable cost to the city pension system and city taxpayers.

Contention

The main point of contention is fiscal impact: the bill would raise employer contributions and create additional unfunded liability for NYCERS, with projected annual costs in the millions over the first decades. Another potential issue is equity and scope, because the special election is limited to uniformed sanitation and correction members who would have been eligible for service retirement at death, rather than all city employees or all uniformed members. The bill’s supporters would likely emphasize parity with existing Tier 1-style “death gamble” protections, while any critics would focus on the added pension cost and the narrow class of beneficiaries receiving the enhanced option.