Bill > S06640

This bill amends the retirement and social security law to provide a new death benefit option for New York City Transit Authority members. Specifically, if a transit authority member who is eligible for service retirement dies before formally filing for retirement, their beneficiaries can now 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 their death. This means that instead of receiving the traditional death benefit (typically three times the member's final year salary), beneficiaries can choose to receive an amount based on the actuarial present value of all pension payments the member would have been expected to receive if they had retired. This new option is similar to a "Death Gamble" benefit currently available to Tier 1 NYCERS members and applies to Transit Tier 4 and Tier 6 Special Plan members who die on or after the effective date of the legislation. The bill is designed to provide more flexibility and potentially greater financial support to the families of transit authority members who die before formally retiring.

Budget and Finance, Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/S6640