SUPPORT YOUR LOVED ONES WHEN YOU’RE NO LONGER AROUND
Why it’s so important to name a Preretirement Survivor Beneficiary.
The NYSNA Pension Plan’s Preretirement Survivor Beneficiary benefit provides participants with the peace of mind that your loved ones will receive a pension benefit for the rest of their lives if you are vested, die before retirement, and haven’t yet begun collecting your pension benefit.
However, there’s an extremely important piece to this benefit that you must understand and address immediately. If you are unmarried and haven’t designated a beneficiary or your named beneficiary(ies) dies before you and you don’t designate another beneficiary, no benefit will be paid to anyone upon your death!
For example, in 2023 a vested Pension Plan participant died before retiring with 19.667 years of service. The participant, unfortunately, did not name a Preretirement Survivor beneficiary. However, had they named someone as beneficiary that was the same age, the monthly benefit amount due to the beneficiary would have been $574.46. Instead, no one received that benefit.
In another instance, also in 2023, a vested participant died at age 62 with 10.667 years of service but failed to name a Preretirement Survivor beneficiary. Again, had the participant named a beneficiary that was the same age, the monthly benefit amount due to the beneficiary would have been $456.14.
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