N.Y. Retirement & Social Security Law § 508: Death benefits

§ 508. Death benefits. a. A member of a retirement system who is

subject to the provisions of this article, exclusive of those members

for whom provision is made pursuant to subdivision b of this section,

shall, at the time of first becoming a member thereof, make an election,

which shall be irrevocable, for coverage for financial protection in the

event of death in service, between the two following benefits:

1. A benefit upon the death of a member in service equal to one

month's salary for each full year of service up to a maximum of three

years' salary upon the completion of thirty-six full years of service,

or in the event that a member is eligible to retire without benefit

reduction pursuant to section five hundred three of this article, a

benefit equal to the pension reserve, if any, which would have been

payable to such member had he entered prior to the effective date of

this article and died in service; or

2. A benefit upon the death of a member in service equal to the

member's salary upon his or her completion of one year of service, two

years' salary upon completion of two years of service, and three years'

salary upon completion of three years of service. In the case of a

member of a retirement system other than the New York state teachers'

retirement system, the New York city employees' retirement system, the

New York city board of education retirement system, the New York city

teachers' retirement system, or the New York state and local employees'

retirement system, such benefit shall be subject to the following

limitations:

(a) If the member last joined the retirement system prior to

attainment of age fifty-two, the maximum benefit shall be three years'

salary;

(b) If the member was age fifty-two when he or she last joined the

retirement system, the maximum benefit shall be two and one-half times

annual salary;

(c) If the member was age fifty-three when he or she last joined the

retirement system, the maximum benefit shall be two years' salary;

(d) If the member was age fifty-four when he or she last joined the

retirement system, the maximum benefit shall be one and one-half times

annual salary;

(e) If the member was age fifty-five or older but under age sixty-five

when he or she last joined the retirement system, the maximum benefit

shall be one year's salary; and

(f) If the member was age sixty-five or older when he or she last

joined the retirement system, the maximum benefit shall be one thousand

dollars.

In the case of a member of a retirement system other than the New York

state teachers' retirement system, the New York city employees'

retirement system, the New York city board of education retirement

system, the New York city teachers' retirement system, or the New York

state and local employees' retirement system, commencing upon attainment

of age sixty-one, the benefit otherwise provided pursuant to this

paragraph shall be reduced while the member is in service to ninety per

centum of the benefit otherwise payable and each year thereafter the

benefit payable shall be reduced by an amount equal to ten per centum

per year of the original benefit otherwise payable, but not below ten

per centum of the original benefit otherwise payable.

Notwithstanding any other provision of this paragraph, in the case of

a member of the New York state teachers' retirement system, commencing

upon attainment of age sixty-two if such member's date of membership is

prior to April first, two thousand twelve or attainment of age

sixty-three if such member's date of membership is on or after April

first, two thousand twelve, the benefit otherwise provided pursuant to

this paragraph shall be reduced while the member is in service to

ninety-six per centum of the benefit otherwise payable, and each year

thereafter the benefit payable shall be reduced by an amount equal to

four per centum per year of the original benefit otherwise payable, but

not below sixty per centum of the original benefit otherwise payable. In

the case of a member of the New York city employees' retirement system,

the New York city board of education retirement system or the New York

city teachers' retirement system, commencing upon attainment of age

sixty-one, the benefit otherwise provided pursuant to this paragraph

shall be reduced while the member is in service to ninety-seven per

centum of the benefit otherwise payable and each year thereafter the

benefit payable shall be reduced by an amount equal to three per centum

per year of the original benefit otherwise payable, but not below

seventy per centum of the original benefit otherwise payable. In the

case of any member of the New York state and local employees' retirement

system who is permitted to retire without regard to age, commencing upon

attainment of age sixty-two if such member's date of membership is prior

to April first, two thousand twelve or attainment of age sixty-three if

such member's date of membership is on or after April first, two

thousand twelve, the benefit otherwise provided pursuant to this

paragraph shall be reduced while the member is in service to

ninety-seven per centum of the benefit otherwise payable, and each year

thereafter the benefit payable shall be reduced by an amount equal to

three per centum per year of the original benefit otherwise payable, but

not below seventy per centum of the original benefit otherwise payable.

In the case of any other member of the New York state and local

employees' retirement system, commencing upon attainment of age

sixty-two if such member's date of membership is prior to April first,

two thousand twelve or attainment of age sixty-three if such member's

date of membership is on or after April first, two thousand twelve, the

benefit otherwise provided pursuant to this paragraph shall be reduced

while the member is in service to ninety-six per centum of the benefit

otherwise payable, and each year thereafter the benefit payable shall be

reduced by an amount equal to four per centum per year of the original

benefit otherwise payable, but not below sixty per centum of the

original benefit otherwise payable. Upon retirement from any retirement

system, the benefit in force shall be reduced by fifty per centum; upon

completion of the first year of retirement, the benefit in force at the

time of retirement shall be reduced by an additional twenty-five per

centum, and upon commencement of the third year of retirement, the

benefit shall be ten per centum of the benefit in force at age sixty, if

any, or at the time of retirement if retirement preceded such age;

provided, however, the benefit in retirement shall not be reduced below

ten per centum of the benefit in force at age sixty, if any, or at the

time of retirement if retirement preceded such age. Notwithstanding any

other provision of this paragraph to the contrary, the benefit for a

retiree from the New York state and local employees' retirement system,

the New York state teachers' retirement system, the New York city

employees' retirement system, the New York city board of education

retirement system or the New York city teachers' retirement system shall

not be reduced below ten per centum of the benefit in force at the time

of retirement.

3. If a member dies in service without having made the election

specified in this subdivision within ninety days after first becoming a

member, or within the period prescribed by the retirement system of

which he is a member if such period is less than ninety days, he shall

be deemed to have made the election specified in paragraph two.

4. Notwithstanding any provision of this article, a member of a

retirement system subject to the provisions of this article who last

joined such system on or after January first, two thousand one who is

not covered by the death benefit calculation provided in subdivision b

of this section shall, upon a qualifying death, be covered by the death

benefit calculation provided pursuant to paragraph two of this

subdivision and shall not be entitled to elect between the death benefit

calculations provided in paragraphs one and two of this subdivision. Any

individual who last joined such system before January first, two

thousand one who is not covered by the death benefits calculation

provided in subdivision b of this section shall be covered, upon a

qualifying death, by the death benefit calculation provided by paragraph

two of this subdivision unless such individual had timely elected death

benefit coverage under the calculation provided by paragraph one of this

subdivision and, upon such death, it is determined that the benefit, as

calculated under such paragraph one would be greater than as calculated

under such paragraph two, in which case the benefit calculated under

such paragraph one shall be payable.

b. A member of a retirement system subject to the provisions of this

article who is a police officer, firefighter, correction officer,

investigator revised plan member or sanitation worker and is in a plan

which permits immediate retirement upon completion of a specified period

of service without regard to age or who is subject to the provisions of

section five hundred four or five hundred five of this article, shall

upon completion of ninety days of service be covered for financial

protection in the event of death in service pursuant to this

subdivision.

1. Such death benefit shall be equal to three times the member's

salary raised to the next highest multiple of one thousand dollars, but

in no event shall it exceed three times the maximum salary specified in

section one hundred thirty of the civil service law or, in the case of a

member of a retirement system other than the New York city employees'

retirement system, or in the case of a member of the New York city

employees' retirement system who is a New York city uniformed

correction/sanitation revised plan member or an investigator revised

plan member, the specific limitations specified for age of entrance into

service contained in subparagraphs (b), (c), (d), (e) and (f) of

paragraph two of subdivision a of this section.

2. Provided further, notwithstanding any other provision of this

article to the contrary, where the member is in a title as defined in

subdivision i of section eighty-nine of this chapter, and would have

been entitled to a service retirement benefit at the time of such

member's death and where such member's death occurs on or after July

first, two thousand twenty-six, the beneficiary or beneficiaries

nominated for the purposes of this subdivision 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.

c. For the purpose of this section, salary shall be the regular

compensation earned during the member's last twelve months of service in

full pay status as a member or, if he or she had not completed twelve

months of service prior to the date of death, but was subject to the

provisions of subdivision b of this section, the compensation he or she

would have earned had he or she worked for the twelve months prior to

such date; provided, however, for the purpose of this section salary

shall exclude any form of termination pay (which shall include any

compensation in anticipation of retirement), or any lump sum payment for

deferred compensation sick leave, or accumulated vacation credit or any

other payment for time not worked (other than compensation received

while on sick leave or authorized leave of absence) and in no event

shall it exceed the maximum salary specified in section one hundred

thirty of the civil service law, as added by part B of chapter ten of

the laws of two thousand eight, or the maximum salary specified in

section one hundred thirty of the civil service law, as hereafter

amended, whichever is greater.

d. The benefits provided pursuant to this section are in lieu of all

other benefits provided by this or any other state or local law

exclusive of a benefit provided under the workmen's compensation law,

the civil service law or group life insurance; provided, however, a

beneficiary of a member eligible for a benefit as the result of a

service connected accident, may elect to receive such other benefit in

lieu of the benefit provided pursuant to this section.

e. For the purposes of this section:

1. A member who dies while off the payroll shall be considered to be

in service provided he or she (a) was on the payroll in such service and

paid within a period of twelve months prior to his or her death, or was

on the payroll in the service upon which membership is based at the time

he or she was ordered to active duty pursuant to Title 10 of the United

States Code, with the armed forces of the United States or to service in

the uniformed services pursuant to Chapter 43 of Title 38 of the United

States Code and died while on such active duty or service in the

uniformed services on or after June fourteenth, two thousand five, (b)

had not been otherwise gainfully employed since he or she ceased to be

on such payroll and (c) had credit for one or more years of continuous

service since he or she last entered or reentered the service of his or

her employer; and

2. The benefit payable shall be in addition to any payment made on

account of a member's accumulated contributions.

3. Provided, further, that any such member ordered to active duty

pursuant to Title 10 of the United States Code, with the armed forces of

the United States or to service in the uniformed services pursuant to

Chapter 43 of Title 38 of the United States Code who died prior to

rendering the minimum amount of service necessary to be eligible for

this benefit shall be considered to have satisfied the minimum service

requirement.

f. With respect to a member of the New York state and local employees'

retirement system who was covered by paragraph two of subdivision a of

the former section five hundred eight of this chapter, as added by

chapter eight hundred ninety of the laws of nineteen hundred

seventy-six, prior to its repeal pursuant to chapter six hundred

seventeen of the laws of nineteen hundred eighty-six and who is entitled

under the state constitution to have benefits calculated under such

provision as it read prior to such nineteen hundred eighty-six

amendment, the lump sum death benefit shall be determined pursuant to

subdivision a of this section. With respect to a member of the New York

state and local employees' retirement system who was covered by

subdivision b of the former section five hundred eight of this chapter,

as added by chapter eight hundred ninety of the laws of nineteen hundred

seventy-six, prior to its repeal pursuant to chapter six hundred

seventeen of the laws of nineteen hundred eighty-six and who is entitled

under the state constitution to have benefits calculated under such

provision as it read prior to such nineteen hundred eighty-six

amendment, the lump sum death benefit shall be determined pursuant to

subdivision a of this section.