Allows beneficiaries of certain deceased members to elect to receive death benefits in a lump sum
Impact
If enacted, A10843 would have significant implications for the state’s retirement system, particularly affecting police officers, firefighters, correction officers, and other similar roles. The bill represents a shift in how benefits are calculated for deceased members, aiming to make the financial benefits more accessible to beneficiaries. It is expected that the state's annual contributions will increase by approximately $1.7 million beginning in the fiscal year 2027, indicating a clear financial impact on the state's budget as well as on the affected families.
Summary
Bill A10843 proposes an amendment to the retirement and social security law in New York, specifically addressing the provisions surrounding death benefits for beneficiaries of certain deceased members of retirement systems. The bill allows beneficiaries of members who would have qualified for service retirement upon their death to elect to receive a lump-sum payment. This lump-sum amount will equal the pension reserve that would have been established had the member retired on their date of death, thus providing a financial safety net for the families of deceased members in precarious situations.
Contention
While proponents argue that A10843 enhances the support provided to families of public servants who die before retirement, critics may voice concerns about the financial strain it places on the state’s retirement fund. The contentious point appears to revolve around the sustainability of these enhanced benefits, particularly given the state's existing financial obligations and the potential for increased contributions over time. Stakeholders will need to balance the moral obligation to support the families of those who serve in high-risk roles against the fiscal realities of managing public funds effectively.
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.
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.
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.
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.
Provides for beneficiaries of the death benefits of an eligible uniformed member of the fire department of the city of New York the ability to elect to receive such benefits in a certain lump-sum amount.
Provides for beneficiaries of the death benefits of an eligible uniformed member of the fire department of the city of New York the ability to elect to receive such benefits in a certain lump-sum amount.
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.