Tag Archives: Accidental death benefit

Know Your Benefits: Death Benefits

Few people like to discuss dying, but it’s important to think about how those we love will get along when we do. NYSLRS members have important considerations to keep in mind. First, depending on the pension payment option you choose, you could leave behind an ongoing pension. But, beyond that, your loved ones may also receive a death benefit.

This post is an overview of common death benefits and how your survivors should file for them. It is important to review your retirement plan booklet for specific benefit and eligibility information, and to contact us with any questions you have.

Benefits

Most members who die while they’re still working will leave their beneficiaries what’s called an ordinary death benefit. The benefit amount is usually one year of your earnings per year of service, up to a maximum of three years. Depending on your system, tier and retirement plan, other limitations apply.

Generally, to qualify, you must have at least one year of service credit, and you must die while you are on payroll, in public service. Check your plan booklet for other qualifying circumstances.

Ordinary Death Benefit Graphic

Some members who die in an on-the-job accident (not due to their own willful negligence) might leave their spouses or other survivors an accidental death benefit. If paid to a surviving spouse or dependent parent, the benefit is a lifetime pension based on 50 percent of your final average salary (less any workers’ compensation benefit). There is no minimum service credit requirement.

Depending on your system, tier and retirement plan, there may be other benefits you leave your loved ones. For example, beneficiaries of Police and Fire Retirement System (PFRS) members who died after meeting the requirements for a service retirement may receive an alternative death benefit. Most Employees’ Retirement System (ERS) members, who retire from service or within a year of leaving public employment, will leave their beneficiaries a post-retirement death benefit.

Filing

Regardless of which death benefit you leave, benefits can’t be paid until we’re notified of your death. That’s why it’s so important to talk with your family now about your benefits and how to report your death to NYSLRS. Check out our Getting Your Affairs in Order and A Guide for Survivors publication for more helpful information.

Update Your Beneficiaries

In most cases (unless beneficiaries are determined by law, as in the case of accidental death benefits), your death benefit will be paid to the beneficiaries you designated at some point in the past, so it’s important to be sure yours are up to date. Your beneficiaries are listed on your Member Annual Statement. You can also view and update your beneficiaries using Retirement Online. Just register and sign in to view your designations and submit changes.

NYSLRS’ Top Five Retirement Myths from 2015

Retirement Myths vs FactsFrom the day you become a NYSLRS member to the day you retire, you’re exposed to all sorts of retirement information. Unfortunately, sometimes what you learn can get jumbled along the way. We want to help clear up some common misconceptions we’ve heard from members and retirees over the past year. Here are the top five retirement myths from 2015:


Myth #1 “I’ll receive the full amount of my monthly retirement benefit when my payments start.”

Fact For the first few months of retirement, most NYSLRS retirees will receive partial payments while we finish calculating their final benefit. (We need to collect information on final payments and pensionable leave credits from their employers, a process that can take some time.) The partial payments are based on their most recent NYSLRS retirement estimate and usually make up 90 – 95 percent of their final benefit. Partial payments are paid by check and mailed to the address we have on file for the retiree.


Myth #2 “Family members always receive death benefits.”

Fact With the exception of accidental death benefits, NYSLRS members may name any person, trust, or organization as their beneficiary to receive death benefits. It doesn’t have to be a family member. Accidental death benefit recipients are outlined in the law.


Myth #3 “I can’t collect my pension until I start receiving Social Security.”

Fact Members can apply for retirement as soon as they meet the eligibility requirements of their retirement plan.


Myth #4 “NYSLRS manages my retiree health insurance.”

Fact NYSLRS does not administer health insurance programs for its retirees. We deduct premiums from a retiree’s monthly retirement benefit to pay for their health insurance if we’re told to do so by their former employer.

(If you have questions about your health insurance coverage or premium deductions, please contact your former employer. If you retired from a New York State agency, you can contact the New York State Department of Civil Service.)


Myth #5 “NYSLRS decides when there’s a retirement incentive.”

Fact This isn’t the case. The New York State Legislature (not NYSLRS) enacts retirement incentive programs. Incentives are approved by both houses and signed into law by the Governor. NYSLRS administers programs that are signed into law.


Check out your plan publication to learn more about your benefits. You can also visit our website for more information.