The following Retirement Options apply to all Tier 4 Service Retirements,
Vested Retirements or Disability Retirements
When you prepare for retirement, there are several questions you will want to answer:
- Do you want to provide continuing retirement income to your spouse, partner or survivor after your death?
- What is the cost of continuing your retirement income?
- What will be the effect on your retirement allowance?
If you choose, you can provide for continuing income to your designated beneficiary by selecting an option. Electing an option means you will receive a reduced lifetime retirement allowance in exchange for providing some type of continuing payments to your beneficiary. If you do not select an option either on your retirement application or by way of filing an option selection form with NYCERS in a timely manner, as explained previously, you will be awarded the Maximum Retirement Allowance with all payments ceasing upon your death. For further details on options, request NYCERS brochure Options for Tier 4 Members (Form # 926).
Maximum Retirement Allowance
If you have no spouse, partner or children who are dependent upon you for financial support, or you need to maximize your retirement income, you may decide not to elect an option. The Maximum Retirement Allowance provides the greatest benefit, payable to you while you are retired, for as long as you live. However, after your death, no further payments will be made.
Option 1 (100% Joint-and-Survivor)
This option is intended for those who wish to insure that after their death, a designated beneficiary will continue to receive a fixed annual lifetime benefit. Option I is a reduced benefit that is payable to you for your lifetime. It also guarantees that the same reduced benefit will continue to your surviving designated beneficiary for life. Payments cease upon the death of both you and your beneficiary.
Because Option I guarantees two specific people an income for life, the life expectancies of the retiree as well as the beneficiary arc taken into consideration. Therefore, under Option I, once you designate a beneficiary and the option is in force, you cannot change your beneficiary designation. Even if your designated beneficiary dies before you, you will continue to receive the reduced lifetime allowance.
DEATH BENEFIT FOR MEMBERS OF THE TRANSIT OPERATING-FORCE AND THE IN UNIFORMED FORCE OF THE NYC DEPARTMENT OF SANITATION
A member of the Transit operating-force or the uniformed-force of the NYC Department of Sanitation who dies in service is covered by a death benefit upon completion of 90 days of service, provided the member was being paid on the payroll at the time of death.
The amount of the death benefit is equal to three times the members salary raised to the next higher multiple of $1 .000.
This benefit is in addition to payment of the MCAE
ALTERNATIVE DEATH BENEFIT FOR MEMBERS WHO JOINED NYC ERS BEFORE JULY 26, 1986 Alternatively, in the event of the death of a member inactive Service who joined NYCERS before July 26, 1986. there may be paid to the member’s Designated Beneficiary or estate. as the case may be. a lump-sum death benefit or an annuity based thereon, calculated by multiplying one-twelfth of the Wages earned by such member during the last 12 months of Active Service while a member. by the number of years of Credited Service. The years of Credited Servicemay not exceed 36. This benefit may be paid if greater than the Tier 4 death benefit payable under Plans I or 2 as described above.
Accidental Death Benefit
If NYCERS determines that your death was the natural and proximate result of an accident not caused by your own willful negligence, sustained in the performance of your duties in Active Service, your Eligible Beneficiary will be entitled to an annual benefit equal to 50% of the Wagesyou earned during the last year of service, or your annual wage rate if you had less than one year of service.
Note: Payment does not include the member’s contributions. The Accidental Death Benefit will not he reduced by any Workers’Compensation that may have been collected in conjunction with this accident.
An Accidental Death Benefit is paid to an Eligible Beneficiary in the following order of priority:
• your spouse. until remarriage, unless he or she has renounced survivorship rights
• to each of your children until he or she reaches age 25
• to your parents who depend on you for support
• to any person who qualified as a dependent on your final Federal income tax return, until age 21 OR
• anyone you name as your beneficiary for your Ordinary Death Benefit
IMPORTANT NOTE: Should your death be the result of an on-the-job incident, and if no Eligible Beneficiary (as listed above) exists at the time of your death, then the Accidental Death Benefit may be paid, upon application, to the person designated as the beneficiary to receive payment of your Ordinary Death Benefit.
In the event a class of your Eligible Beneficiaries consists of more than one person benefits will be divided equally among such persons.
An application for an Accidental Death Benefit must be filed by your beneficiary and received by NYCERS within 60 days after your death. The 60-day period may be waived provided an Ordinary Death Benefit has not been paid.
Based upon the recommendation of NYCERS’ Medical Board, the Board of Trustees will make a determination as to whether the requirements for an Accidental Death Benefit have been met in each case
prior to the Board of Trustees’ determination the appropriate beneficiary may request a review of the case by a Trial Committee.
When you join NYCERS, you are asked to name a beneficiary or beneficiaries. Your current designation is shown in the Annual Disclosure Statement that you receive from NYCERS. You have the option of’ changing your designation of’ beneficiary at any time while a member. If you choose to make a change, you do so by filing the appropriate form with NYCERS.
How to File for Death Benefits
Your beneficiary should notify NYCERS of your death, Upon receipt of a death certificate. NYCERS will:
I calculate any benefits due
• mail claim forms and instructions to your beneficiary
• outline payment choices