|Serving New York Educators Since 1921|
NYSTRS offers several types of death benefits: In-Service (which includes post-retirement coverage for Tiers 2-6); Accidental; Vested; and, Accelerated. Your eligibility depends on your membership status and, in certain cases, the cause or timing of your death. The rules governing each benefit are described below.
You may change your beneficiary designation(s) prior to retirement by filing a Designation of Beneficiary (NET-11.4) form.
In addition to receiving your member contributions balance, your designated beneficiary may receive a death benefit if you die before retiring.
You are covered by an in-service death benefit if you have been credited with at least three months (Tier 1) or one year (Tiers 2-6) of service since last becoming a member, and at the time of death:
The greater of the following:
Under legislation enacted in 2000, all Tier 2-6 members will be covered by the Paragraph 2 Death Benefit, unless they selected Paragraph 1 (see Tier 1 Calculation above) and it is greater than Paragraph 2. All members joining on or after Jan. 1, 2001, will be covered by the Paragraph 2 Death Benefit.
The benefit is one year's salary* after a year of service, increasing to a maximum of three years' salary after three years or more of service. The benefit is reduced after age 60 by 4% per year, up to a maximum reduction of 40% at age 70. (Reductions begin at age 61; age is not rounded and the reduction is not prorated.)
Under Paragraph 2, if the in-service death benefit is in effect when you retire, coverage may continue after retirement. The benefit would be:
To be eligible for the continued coverage in retirement, you must retire no later than one year after you leave the payroll. Employment, other than teaching with a NYSTRS participating employer, between the date you ceased teaching and the date of your retirement will jeopardize your eligibility for this benefit.
*The law limits the amount of salary that can be used in the calculation of the Paragraph 2 Death Benefit. Please see your latest Benefit Profile for this amount.
If you die as the result of an accident sustained in the performance of your duties, certain surviving family members may be entitled to receive an accidental death benefit in lieu of an in-service death benefit. The annual payment to your beneficiary would be 50% of the regular salary earned during your last year of service.
You are covered by this benefit if you have at least 10 years of service credit, are not covered by the in-service death benefit, and die before retirement. It would equal one-half of the in-service death benefit that would have been paid if you had died on the last day of creditable service.
You may elect to receive a one-time only payment while living if you qualify for a disability retirement benefit (the 10 years service credit requirement is waived) and have either a terminal illness resulting in a life expectancy of no more than 12 months or a medical condition requiring extraordinary care or treatment. The benefit is paid in lieu of both a monthly retirement benefit and a death benefit paid to a beneficiary.
The payment is equal to the death benefit to which you would be entitled if you had died on your last day of reportable service. It may be an important benefit if you don't have the need to provide for a beneficiary, or if you have less than 10 years of service credit and would not otherwise be eligible for a disability retirement.