Regardless of where you are in your career, financial planning must include consideration of preparedness for an untimely death. This preparedness will likely include a variety of strategies from private life-insurance (see also “Life Insurance for Union Employees” on our website) as well as built-in death benefits as a NYC employee.
As a NYC employee, the most important thing to remember is to keep your designation of beneficiary up to date. It is unfortunately common for the designated beneficiary to be incorrect when it matters most for reasons such as death & divorce.
NYC employees will receive the following in the event of an untimely death while in active status:
- Payment of accumulated balances of annual leave and compensatory time up to 1-year. Sick leave will not be paid.
- If the accidental death occurs in the line of duty, NYC will issue an additional $25,000 benefit
Members of the New York City Employee Retirement System (NYCERS) will receive:
- Death benefit for employees in active status:
- 1 year of service = 1x annual salary
- 2 years of service = 2x annual salary
- 3+ years of service = 3x annual salary
- Plus CASH VALUE of the pension. No payments will be made prior to 75 days after the death of the member
Active status includes employees on terminal leave, pending retirement. This is important because if the death occurs while on terminal leave, only the above amounts will be paid, not the projected pension amounts. Terminal leave can be waived by an employee, putting them into retired status sooner. Terminal leave is capped at 1-year. Leave balances are paid in the order of Annual Leave, Compensatory Time, Sick Leave. Sick leave is paid at 1/2 accrual balance for employees hired before 2004 and 1/3 accrual balance after.
Please review your designated beneficiary!
