2006 New York Code - Death Benefits; Ordinary Death Benefits.

 
    § 13-542 Death benefits; ordinary death benefits. a. Upon the death of
  a contributor before retirement there shall be paid to his or her estate
  or  to  such  person  as  he  or  she  shall  have  nominated by written
  designation duly executed and filed with the retirement board:
    1. His or her accumulated deductions; and, in addition thereto,
    2. A sum consisting of:
    (i) His or  her  reserve-for-increased-take-home-pay,  if  any,  which
  shall  be  paid  out of the contingent reserve fund; and (ii) An amount,
  payable out of the contingent reserve fund in the case of a new  entrant
  and   out  of  pension  reserve  fund  number  two  in  the  case  of  a
  present-teacher, equal to the salary earnable by him or her  during  the
  six  months immediately preceding his or her death, provided that at the
  time of his or her death he or she had obtained the  age  of  sixty-five
  years  or  had a total-service of thirty-five years and was eligible for
  service retirement.
    b. Where any contributor, by any designation heretofore  or  hereafter
  filed  pursuant  to  subdivision  a of this section and in effect at the
  time of the death of such contributor, nominated or shall  nominate  any
  person  to  receive  the  amount  payable  under  subparagraph  (ii)  of
  paragraph   two   of   subdivision    a    of    this    section,    the
  reserve-for-increased-take-home-pay,  if  any,  of  such member, payable
  under subparagraph (i) of such paragraph two shall be paid to the person
  so nominated.
    c. (1) The retirement board may adopt rules and regulations  providing
  that   in  any  case  where  a  contributor  or  designated  beneficiary
  authorized by the applicable provisions of this chapter  to  nominate  a
  beneficiary  to receive a lump sum benefit pursuant to section 13-542 or
  section 13-543 of this chapter represents to the retirement system  that
  a specified person has been designated by such contributor or designated
  beneficiary as a trustee of an inter vivos or testamentary trust for the
  purposes  of  this  subdivision  c,  such person shall be eligible to be
  nominated to receive, in the capacity of trustee, such lump sum  benefit
  pursuant to the applicable provisions of either of such sections.
    (2) Any proceeds received by a trustee under this section shall not be
  subject to the debts of the member or to transfer or estate taxes to any
  greater  extent  than if such proceeds were payable to the beneficiaries
  named in the trust and not to the estate of the member.
    (3) A payment made in good faith under this section (a) to a person so
  represented to the retirement system to be a trustee of an  inter  vivos
  trust, or (b) to a person who is designated as a successor trustee of an
  inter  vivos trust and who provides a copy of his or her appointment or,
  (c) to a person who is designated as a trustee or successor trustee of a
  testamentary  trust  and  who  provides  a  copy  of  the   letters   of
  trusteeship, provided such payment is made to such payee in the capacity
  of  trustee,  shall  be a complete discharge to the retirement system to
  the extent of the payment. Such  discharge  shall  not  be  impaired  or
  affected  by  an  adjudication  that a trust is invalid or that a person
  represented to be or designated as a trustee is not entitled to  receive
  the proceeds, if payment is made in good faith under this section before
  notice  to  the  retirement system of the claim of invalidity or lack of
  entitlement on which such adjudication is based.
    (4) (a) If no person to whom the retirement system  is  authorized  to
  make  payment  in  the capacity of trustee, as provided for in paragraph
  three of this subdivision c, claims the proceeds within eighteen  months
  after  the  death  of  the member, payment shall be made to the deceased
  member's estate and such payment shall be a complete  discharge  to  the
  retirement system to the extent of the payment.


    (b)  If  satisfactory  evidence  is  furnished  within  such period of
  eighteen months that there is or will  be  no  trustee  to  receive  the
  proceeds, payment shall be made to the deceased member's estate.
    (5)  In  the  event  that  after  a  person  represented  to have been
  designated as a trustee of an  inter  vivos  or  testamentary  trust  is
  nominated  pursuant to rules and regulations adopted under paragraph one
  of  this  subdivision  c,  the  contributor  or  designated  beneficiary
  authorized to make a nomination shall, in compliance with the applicable
  provisions  of  this  chapter, nominate for receipt of the same lump sum
  benefit:
    (a) a beneficiary other than a person  so  represented  to  have  been
  designated as a trustee; or
    (b)  a person represented to have been designated as a trustee under a
  different inter vivos or testamentary trust;
    a payment made in good faith under  this  section  to  the  last  such
  nominee  as of the date of death, whether he or she is a beneficiary not
  represented to have been designated as trustee or a  person  represented
  to  have  been  so  designated,  shall  be  a  complete discharge to the
  retirement system to the extent of the payment, provided, however,  that
  if  payment is made to a person represented to have been designated as a
  trustee, the retirement system shall be so discharged if payment is made
  to such person in the capacity of trustee and  if  there  is  compliance
  with  the  requirements  of  paragraph  three of this subdivision c with
  respect to submission of copies. In any case where the last such nominee
  is a person represented to  have  been  designated  as  a  trustee,  the
  provisions of paragraph four of this subdivision c shall apply.