Your beneficiary may be entitled to an ordinary death benefit, in lieu of a monthly pension, if you meet eligibility requirements and your death is not attributable to an on-the-job accident. The beneficiaries of active (not retired) members generally are not entitled to a monthly pension benefit. The first $50,000 of this benefit is paid in the form of group term life insurance, which is currently exempt from federal income tax. Your accumulated contributions (if any) are also payable to your beneficiary.
Eligibility
An ordinary death benefit may be payable to your designated beneficiary if you are a:
- Tier 1 member and have completed at least one year of service since last joining the Retirement System; or
- Tier 2, 3, 5 or 6 member and have completed at least 90 days of service since last joining the Retirement System; and
- Your death occurs:
- While you are on the payroll;
- While you are on an authorized medical leave of absence (with or without pay);
- While you are receiving Workers’ Compensation or other employer-funded benefits, for up to two years (which may be extended for an additional two years) following the last date you were paid on the payroll, provided your employment has not been terminated by resignation, employer action, retirement or any other means while receiving those benefits; or
- Within 12 months of the last date you were receiving salary, on an authorized medical leave of absence or receiving Workers’ Compensation or other employer-funded benefits, provided you were not otherwise gainfully employed or retired during that period.
Ordinary Death Benefit — Tier 1
This benefit is equal to 8.33 percent of your last year’s earnings, multiplied by your years of service credit up to 36 years.
Ordinary Death Benefit — Tiers 2, 3, 5 and 6
This benefit is equal to three times your salary raised to the next highest multiple of $1,000, as limited by Section 130 of the Civil Service Law.
Filing
Your family or employer should notify us of your death as soon as possible so we can send the appropriate forms to your beneficiary.