N.Y. Comp. Codes R. & Regs. tit. 21 § 5011.2
A separate fund, to be known as the New York State Teachers' Retirement System Member Group Life Insurance Plan Reserve Fund, is hereby established within the system, to be held in trust by the retirement board. Such fund shall consist of all premiums paid by the employers and other monies received and paid into the fund for group term life insurance purposes, and of the investment earnings upon such monies, and shall be used only to pay the group term life insurance prescribed by section 5011.3 of this Part. Concurrent with the determination of the initial liability of the plan for the balance of the fiscal year on and after May 8, 1970, for the group term life insurance provided and to be paid for pursuant to this plan, there shall be segregated and transferred from the pension accumulation fund of the system, to the reserve fund created by this section, such amounts determined by the actuary to be necessary to pay anticipated group term life insurance claims. Subsequent segregations and transfers shall be made as shall be required to pay the insurance prescribed by section 5011.3 of this Part from the reserve fund provided by this section.
N.Y. Comp. Codes R. & Regs. Tit. 21 § 5011.2