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.
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NYPPL Blogger Harvey Randall served as Principal Attorney, New York State Department of Civil Service; Director of Personnel, SUNY Central Administration; Director of Research, Governor’s Office of Employee Relations; and Staff Judge Advocate General, New York Guard.
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