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NY S05728

Bill

Status

Passed

8/2/2021

Primary Sponsor

Andrew Gounardes

Click for details

Origin

Senate

2021-2022 General Assembly

AI Summary

  • 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.

  • 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.

  • Preserves existing rights for beneficiaries of participants who died before July 1, 2021 to defer distributions from TDA accounts under current law.

  • Expected to have minimal to no impact on employer contributions, as TDA beneficiaries pay administrative costs and only invest in variable funds.

  • 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

Committee Referrals

Ways and Means5/19/2021
Cities 13/17/2021

Full Bill Text

No bill text available