Bill > S06401

This bill amends retirement and social security laws to provide an enhanced death benefit for members of the New York City Department of Sanitation and Department of Correction who would have been eligible for service retirement at the time of their death. Specifically, for members who die on or after July 1, 2025, their beneficiaries can elect to receive a lump sum payment that is the greater of two options: either the standard death benefit (typically three times the member's annual salary) or the pension reserve that would have been established had the member retired on the date of their death. This means that if the pension reserve calculation results in a higher payment, beneficiaries can choose that amount instead of the traditional death benefit. The change applies to members across all tiers and plans of the New York City Employees' Retirement System, providing potentially more financial protection for the families of sanitation and correction workers who die while still employed. The fiscal note estimates this will result in a modest increase in employer contributions, with an initial actuarial present value of approximately $18.4 million.

Budget and Finance, Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/S6401