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NY S05728
Bill
Status
8/2/2021
Primary Sponsor
Andrew Gounardes
Click for details
AI Summary
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Amends Section 13-582 of the New York City Administrative Code to prohibit beneficiaries of deceased tax-deferred annuity (TDA) program participants from establishing their own TDA accounts if the participant dies on or after July 1, 2021.
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Beneficiaries of participants who die on or after July 1, 2021 must either roll over the TDA account balance, take a full distribution, or elect annuitization rather than deferring distributions.
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Preserves existing rights for beneficiaries of participants who died before July 1, 2021 to defer distributions from TDA accounts under current law.
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Expected to have minimal to no impact on employer contributions, as TDA beneficiaries pay administrative costs and only invest in variable funds.
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Takes effect immediately upon enactment.
Legislative Description
Provides that a beneficiary of a deceased participant in the NYC teachers' retirement system who dies on or after July 1, 2021 may not establish a tax deferred account.
Last Action
SIGNED CHAP.357
8/2/2021