NY Educ L § 513 (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 11 - State Teachers' Retirement System for Public School Teachers 513 - Optional Allowances.

§ 513.  Optional allowances. 1. With the exception that no election of   an  optional benefit shall become effective in case a member dies within   thirty days  after  the  filing  of  an  application  for  a  retirement   allowance,  until  the  first  payment on account of any benefit becomes   normally due, any member, at the time of his retirement,  may  elect  to   receive  his  benefits in a retirement allowance payable throughout life   or he may on retirement elect to receive  the  actuarial  equivalent  at   that  time of his retirement allowance in a lesser retirement allowance,   payable throughout life with the provision that:Option 1. If he die before he has received  in  payments  the  present   value  of  his  retirement  allowance  as  it  was  at  the  time of his   retirement, the balance shall be paid to his legal representatives or to   such  person  as  he  shall  nominate  by   written   designation   duly   acknowledged and filed with the retirement board.Option  2. Upon his death, his retirement allowance shall be continued   through the life of and paid to such person  as  he  shall  nominate  by   written  designation  duly  acknowledged  and  filed with the retirement   board at the time of his retirement.Option 3. Upon his death, one-half of his retirement  allowance  shall   be  continued throughout the life of and paid to such person as he shall   nominate by written designation duly acknowledged  and  filed  with  the   retirement board at the time of his retirement.Option  4.  Some other benefit or benefits shall be paid either to the   member or to such person or persons as he shall nominate, provided  such   other   benefit   or  benefits,  together  with  the  lesser  retirement   allowance, shall be  certified  by  the  actuary  to  be  of  equivalent   actuarial value to his retirement allowance and shall be approved by the   retirement board.2.  If  any retired member who has not elected an optional benefit, or   who has elected a benefit under Option 4 providing for  the  payment  at   death  of  the amount, if any, by which his accumulated contributions at   the time of his retirement exceed the aggregate amount  of  his  annuity   payments,  dies within thirty days after the date his retirement becomes   effective, notwithstanding any other  provisions  of  this  law  to  the   contrary,  benefits  shall be paid in accordance with subdivision (b) or   (c) of section five hundred  twelve,  except  that  the  amount  of  his   accumulated   contributions   payable   under   paragraph  (1)  of  said   subdivision (b) shall be reduced by any annuity payments received by him   prior to his death and the benefit payable under paragraph (2)  of  said   subdivision (b) shall be reduced by any pension payments received by him   prior to his death. The amounts payable shall be paid to the beneficiary   or beneficiaries entitled thereto as provided under section five hundred   twelve,  except  that  if  the  member has elected Option 4, as provided   above,  the  beneficiary  nominated  under  such  Option  4   shall   be   substituted  for  any  beneficiary  previously nominated and all amounts   payable shall be paid to the beneficiary nominated under such Option 4.3. In the case of persons who last became members  on  or  after  July   first, nineteen hundred seventy-three, the provisions of subdivision two   of  this  section shall apply only to deaths occurring after the date on   which said subdivision two becomes operative and prior  to  July  first,   nineteen hundred seventy-four.4.  a.  The retirement board may adopt rules and regulations providing   that a trustee of an inter vivos or  testamentary  trust  shall  be  (1)   eligible  to be nominated to receive a lump sum benefit under option one   and (2) eligible to be nominated to receive  any  benefit  under  option   four which the retirement board shall deem appropriate.b.  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.c.  A  payment  made  in  good  faith  under  this section to either a   designated trustee of an inter vivos trust, a successor  trustee  of  an   inter vivos trust who provides a copy of his appointment or a trustee or   successor  trustee  of  a  testamentary trust who provides a copy of the   letters of trusteeship shall be a complete discharge to  the  system  to   the extent of the payment.d.  If no qualified trustee claims the proceeds within eighteen months   after the death of the retired member, or if  satisfactory  evidence  is   furnished within such period showing that there is or will be no trustee   to  receive  the proceeds, payment shall be made to the deceased retired   member's estate.