What makes special beneficiary designations so special?
As a NYSLRS member, it’s important for you to name beneficiaries. Your beneficiaries may be eligible to receive a death benefit upon your death.
You can choose anyone you wish to receive your death benefit; it does not have to be a family member. In fact, it doesn’t even have to be a person. You can name your estate, a charity or a trust.
But before we talk more about these special beneficiary designations, let’s quickly go over the two main types of beneficiaries. These are important to know as some special designations may affect who you can designate.
About Primary and Contingent Beneficiaries
A primary beneficiary is someone you choose to receive your benefit if you die. A contingent beneficiary would only receive the benefit if the primary beneficiary dies before you. If a beneficiary dies before you, you should update your beneficiary information to ensure that your benefit is distributed according to your wishes.
As a reminder, Retirement Online is the convenient and secure way to view and update your beneficiaries. If you don’t already have an online account, you can learn more on our website.
About Special Beneficiary Designations
Here are some examples of special beneficiary designations and the rules for each one:
You may name your estate as the primary or contingent beneficiary of your death benefit. If you name your estate as your primary beneficiary, you cannot name a contingent. If a benefit is payable, the executor of your estate will distribute it according to the terms of your will.
If you have executed a trust agreement or provided for a trust in your will, your trust can be your primary or contingent beneficiary. To name a trust, sign in to Retirement Online or use our Trust with Contingent Beneficiaries form (RS5127-T). We’ll need a copy of your trust document, which you can mail to NYSLRS or upload using Retirement Online.
With this type of designation, the trust is the beneficiary, not the individuals who will receive the trust. If you revoke the trust or it expires, you will want to make new beneficiary designations as soon as possible to ensure benefits are paid according to your wishes.
You should talk to an attorney if you’d like more information on trust agreements.
You may name any charitable, civic, religious, educational or health-related organization as a primary or contingent beneficiary. Be sure to include the organization’s full name and address in your designation.
If your beneficiary is under age 18 at the time of your death, your benefit will be paid to the child’s court-appointed guardian. You may instead choose a custodian to receive the benefit on the child’s behalf under the Uniform Transfers to Minors Act (UTMA). Custodians can be designated in Retirement Online. Before making this type of designation, please contact us for more information.
Please note that some of these beneficiary designations will be subject to a NYSLRS legal review.
For more information, please read our publication “Why Should I Designate a Beneficiary?” You can find your current NYSLRS beneficiaries listed in Retirement Online, or in your most recent Member Annual Statement.