S T A T E O F N E W Y O R K
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8662--A
2009-2010 Regular Sessions
I N A S S E M B L Y
June 2, 2009
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees -- recommitted to the Committee on Govern-
mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee
AN ACT to amend the retirement and social security law, in relation to
permitting a beneficiary of death benefits under this section to
receive the lump sum death benefit as it was at the time of death and
to designate a beneficiary of such annuity payments
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 448 of the retirement and social security law is
amended by adding a new subdivision h to read as follows:
H. A MEMBER, OR AFTER HIS OR HER DEATH, THE PERSON NOMINATED BY HIM OR
HER TO RECEIVE BENEFITS UNDER THIS SECTION, MAY ELECT TO RECEIVE THE
ACTUARIAL EQUIVALENT OF THE ANNUITY SPECIFIED IN SUBDIVISION G OF THIS
SECTION IN THE FORM OF A REDUCED ANNUITY, PAYABLE FOR LIFE, WITH THE
FURTHER PROVISION THAT IF THE PERSON SO NOMINATED SHOULD DIE BEFORE THE
ANNUITY PAYMENTS RECEIVED BY HIM OR HER ARE EQUAL TO THE LUMP SUM DEATH
BENEFIT AS IT WAS AT THE TIME OF DEATH, WITH THE BALANCE THEREOF PAID IN
A LUMP SUM TO SUCH BENEFICIARY'S ESTATE OR TO SUCH PERSON AS SUCH MEMBER
OR HIS OR HER NOMINEE SHALL HAVE DESIGNATED PRIOR TO HIS OR HER DEATH.
SUCH ELECTION SHALL BE MADE PRIOR TO OR WITHIN NINETY DAYS AFTER THE
DEATH OF THE MEMBER. SUCH DESIGNATION OF A BENEFICIARY TO RECEIVE SUCH
LUMP SUM MAY BE MADE OR CHANGED AT ANY TIME BY THE PERSON WHO MADE IT.
SUCH ELECTION, DESIGNATION OR CHANGE SHALL BE MADE BY A WRITING DULY
EXECUTED AND FILED WITH THE COMPTROLLER. IF THE PERSON NOMINATED TO
RECEIVE SUCH LUMP SUM DOES NOT SURVIVE THE MEMBER'S BENEFICIARY, SUCH
LUMP SUM, IF ANY SHALL BE PAYABLE TO THE ESTATE OF THE MEMBER'S BENEFI-
CIARY OR AS PROVIDED IN SECTION ONE THOUSAND THREE HUNDRED TEN OF THE
SURROGATE'S COURT PROCEDURE ACT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14189-02-0
A. 8662--A 2
S 2. This act shall take effect immediately.
FISCAL NOTE.--This bill would allow the designated beneficiary of a
Tier 2 member of a public retirement system who has elected to receive
the ordinary death benefit as an annuity to elect a reduced annuity with
the provision that if the beneficiary should die before the annuity
payments received equal the original amount of the death benefit, the
remaining balance thereof shall be paid in a lump sum to a beneficiary
so nominated. The beneficiary to receive such remaining balance may be
changed at any time by the designated beneficiary.
Insofar as this bill would affect the New York State and Local Employ-
ees' Retirement System and the New York State and Local Police and Fire
Retirement System, if this bill is enacted, there would not be any cost
to the Systems.
This estimate, dated April 16, 2010, and intended for use only during
the 2010 Legislative Session, is Fiscal Note No. 2010-44, prepared by
the Actuary for the New York State and Local Employees' Retirement
System and the New York State and Local Police and Fire Retirement
System.