Designation of a beneficiary to receive retirement system death benefits
Estate of Kraut v City of New York, NYS Supreme Court, [not officially reported]
The Kraut case demonstrates the critical importance of a member actually filing a designation of beneficiary form with a public retirement system.
Although the New York City Employees’ Retirement System’s [NYCERS] records indicated that Kraut’s son Steven was his beneficiary, Gloria A. Djaha contended that NYCERS should have paid Kraut’s $268,000 [after taxes] death benefit to her.
Her argument: because Kraut had written “[t]he beneficiary whom I would nominate to receive the benefit payable after my death ... is my Financee [sic] ... is Gloria Anne Djaha on his retirement application form.”
But since Kraut never filed a formal Designation of Beneficiary form naming Djaha as his beneficiary, the court ruled that the son was Kraut’s lawful beneficiary.
- The Public Employment Law Press
- This Lawblog is prepared by NYPPL Consultants. NYPPL Consultants assist public employers, public employee organizations and attorneys in matters involving New York State public personnel law. You may contact NYPPL Consultants by e-mail at publications@nycap.rr.com
