Sec. 333.1. Background

Sections 61-a and 361-a of the Retirement and Social Security Law, as added by chapter 602 of the Laws of 1978, provide for the payment of interest for unpaid accidental and ordinary death benefits, to accrue from the date of death of the member until payment is made. These sections direct that the amount of interest shall be at the rate provided for by section 3-a(1) of the General Municipal Law. Section 3-a(1) of the General Municipal Law, as amended by chapter 681 of the Laws of 1982, provides for a rate of interest that shall not exceed three percent per annum prior to April 1, 1983, and for a rate of interest that shall not exceed nine percent per annum commencing April 1, 1983. The Retirement System has paid, and will continue to pay, the maximum three percent per annum interest on unpaid death benefits of a member whose death occurs prior to April 1, 1983. This Part is promulgated to provide for an increase in the rate of interest on the unpaid death benefits of any member whose death occurs on or after April 1, 1983.