Death Benefits

In addition to receiving your member contributions balance, your designated beneficiary may receive a death benefit if you die before retiring.

Eligibility

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:

• You were in service being paid for employment reportable to this system; or,
• If you are a Tier 1 member, you had been in service within the previous year and had not otherwise been gainfully employed (other than in service reportable to NYSTRS) since leaving teaching; or,
• If you are a Tier 2-6 member, you had been in service within the previous year and had at least one year of continuous employment since last entering your employer's service and had not otherwise been gainfully employed (other than in service reportable to NYSTRS) since leaving teaching; or,
• You had left the payroll because of a disability and had remained disabled until death (Tier 1) or died while on an approved medical leave (Tiers 2-6).

Tier 1 Calculation

The greater of the following:

• One-twelfth of your last 12 months of regular compensation for each year of service, to a maximum of three times your earnings; or,
• The Death Gamble Benefit. Please contact us at (800) 348-7298, Ext. 6110 for more information. (Note: To be eligible for this increased benefit, you must be eligible to retire without any service credit-related reductions in your pension.)

Tiers 2-6 Calculation

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 equals the last 12 months of pensionable earnings* multiplied by years of service, increasing to a maximum of three years of service. For example, the benefit equals the last 12 months of pensionable earnings if you die after one year of service, two times the last 12 months of earnings after two years of service, and a maximum of three times the last 12 months of earnings after three or more years of service.

Beginning at age 62 for Tier 2-5 members, and age 63 for Tier 6 members, the benefit is reduced by 4% per year, up to a maximum reduction of 40%. (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:

• 1st year: 50% of the death benefit in effect at retirement.
• 2nd year: 25% of the benefit at retirement.
• 3rd year and beyond: 10% of the benefit in effect at retirement, or at age 60 if higher.

To be eligible for the continued coverage in retirement, you must retire within one year of leaving the payroll and not be employed (other than NYSTRS service) between your cease-teaching date and retirement date.

*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.

Naming Beneficiaries

Any number of primary and contingent beneficiaries may be named, but you must designate at least one primary beneficiary. The same person or persons cannot be designated as both primary and contingent beneficiaries. We can make payment to a contingent beneficiary(ies) only if all primary beneficiaries die before the contingent beneficiary(ies) and you have not changed your designation to provide for a new primary beneficiary(ies). To designate a tertiary beneficiary, please contact the System for additional instructions. If you survive all of the beneficiaries named, we would pay your estate.

You may change your beneficiary designation(s) prior to retirement by using the Beneficiaries tab under My Retirement in your secure MyNYSTRS account or by filing a notarized paper form Designation of Beneficiary For In-Service or Post-Retirement Paragraph 2 Death Benefit (NET-11.4).

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 a vested death 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.

Naming Beneficiaries

Any number of primary and contingent beneficiaries may be named, but you must designate at least one primary beneficiary. The same person or persons cannot be  designated as both primary and contingent beneficiaries. We can make payment to a contingent beneficiary(ies) only if all primary beneficiaries die before the contingent beneficiary(ies) and you have not changed your designation to provide for a new primary beneficiary(ies). To designate a tertiary beneficiary, please contact the System for additional instructions. If you survive all of the  beneficiaries named, we would pay your estate.

You may change your beneficiary designation(s) prior to retirement by using the Beneficiaries tab under My Retirement in your secure MyNYSTRS account or by filing a notarized paper form Designation of Beneficiary For In-Service or Post-Retirement Paragraph 2 Death Benefit (NET-11.4).

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.

If you die as a result of contracting COVID, you may be covered by the COVID-19 accidental death benefit. The annual payment to your statutory beneficiary would be a lifetime annuity of 50% of your most-recent year’s salary and is in lieu of the in-service death benefit. For more information regarding eligibility and claiming this benefit, please refer to our COVID-19 Accidental Death Benefit Fact Sheet.