2023 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.