Tag Archives: Power of Attorney

Power of Attorney

Power of AttorneyA Power of Attorney document (POA) allows an agent that you designate to make decisions for you in your legal, financial and business dealings. A POA is written legal authority given by one party (the principal) to another (the agent or attorney-in-fact) to act on the principal’s behalf. The person authorizing the other to act is referred to as the principal, grantor or the donor of the power. The person who has been granted authority to act on behalf of another (i.e. the principal) is called the agent or the attorney-in-fact.

A POA can be a helpful tool in making emergency or unexpected decisions about your retirement benefits. Usually, NYSLRS cannot release benefit information to anyone without your authorization — even to close family members. However, once we have a copy of a valid POA on record, we can discuss your pension with an agent you choose in your POA. With a valid POA, your agent can also change your address with NYSLRS or even adjust your tax withholding.

An agent cannot designate beneficiaries, elect certain options, or make certain banking decisions with a POA alone. However, with the addition of a statutory gift rider (SGR), your agent may be able to perform “gifting” transactions which include depositing money into a joint bank account, designating or changing beneficiaries or electing an option and option beneficiary. The additional gifting powers granted under a statutory gift rider must be specified on the form (Note: We cannot deposit money into an account that does not have your name on it.)

In order for a NY POA with NY SGR to be valid, the POA must contain the gift giving authority initialed by the principal, and a valid SGR must have been created on the same day as the POA. This SGR must be executed pursuant to the requirements of New York’s General Obligations Law §5-1514, which includes being notarized and witnessed by two disinterested witnesses (individuals not named in the POA), in the same manner as the execution of a will.

If you are thinking about executing a POA with a SGR, NYSLRS offers a form that combines the New York State statutory POA with a gift rider. This form meets all of New York State’s legal requirements and authorizes an agent to make all retirement transactions on behalf of a member unless specific limiting language is added. Without any modifying language, the NYSLRS POA and SGR will only allow a named agent to name himself or herself as a beneficiary only if the agent is the spouse, domestic partner, parent or child. The NYSLRS POA with a SGR only authorizes an agent to make retirement benefit transactions. For example, it won’t serve as a healthcare proxy. You can find the form at www.osc.state.ny.us/retire/forms/poa.pdf.

If a member or beneficiary chooses to execute and file the NYSLRS POA with SGR, the form must contain a valid notarization of the principal’s (grantor/donor) signature, the signature of two disinterested witnesses and a valid notarization of the agent’s signature.

NYSLRS recommends that you consult with an attorney to ensure you are using the correct form to meet the needs of you and your family.

Getting Your Affairs In Order

Are you affairs in order? Image of filing cabinet.Spring is here, and it’s time for a little spring cleaning. This year, while you’re cleaning under the couch, reorganizing the garage and raking the yard, why not tidy up your important papers too?

We all accumulate a lot of documents over a lifetime — things like birth certificates, diplomas, deeds, wills and insurance policies. If you’re like most people, you probably have papers stuffed in drawers, filing cabinets or boxes in the attic. If you ever needed an important document, do you think you could find it? What’s more, if something happened to you, will your loved ones be able to find what they need to get your affairs in order?

Your important documents and contact information should be kept in a secure place in your home. These items should include personal documents, such as your passport, birth certificate, marriage certificate, will and burial instructions. Also include information about your retirement, income taxes, bank accounts, credit card and online accounts. And don’t forget the names and phone numbers of your attorney, accountant, stock broker, financial planner, insurance agent and executor of your will.

To make this a little easier, we’ve developed a form called Where My Assets Are. This form can be used as a checklist to help you organize your important papers. It will also help you or your loved ones locate these documents when they are needed. It is a good idea to review and update this information regularly.

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Where My Assets Are (PDF)

You should be aware that your safe deposit box may be sealed when you die. Don’t keep burial instructions, power of attorney or your will in a safe deposit box because these items may not be available until a probate judge orders the box to be opened. However, a joint lessee of the box, or someone authorized by you, would be permitted to open the box to examine and copy your burial instructions.