Matter of Frankel v. Teachers’ Retirement Bd., 21 N.Y.2d 58 (1967)
A teacher who dies while in service but who was eligible for retirement based on a combination of age, years of service, and military service is deemed to have retired the day before death for purposes of calculating retirement benefits.
Summary
The New York Court of Appeals addressed whether a deceased teacher, eligible for retirement due to age, service years, and veteran status under Military Law § 245, should be considered “retired” the day before his death under Administrative Code § B20-41.0(2) for benefit calculation. The teacher’s widow, the designated beneficiary, sought benefits based on retirement eligibility. The Retirement Board denied this, arguing § 245 did not qualify as retirement “by reason of service.” The Court of Appeals reversed, holding the teacher was indeed eligible for retirement “by reason of service” and his beneficiary was entitled to the associated benefits, subject to necessary financial adjustments.
Facts
The petitioner’s husband was a 52-year-old teacher in New York City with 27 years of service. He was a veteran who served during wartime and a member of the Teachers’ Retirement System. He died while employed as a teacher. The petitioner, his designated beneficiary, applied for retirement benefits, arguing her husband was eligible for retirement due to his age, service, and military status under Military Law § 245 and should be considered retired the day before his death under Administrative Code § B20-41.0(2). The Board rejected the application, leading to the lawsuit.
Procedural History
The Teachers’ Retirement Board denied the petitioner’s application for benefits based on her husband’s retirement eligibility. The Supreme Court, Special Term, upheld the Board’s decision. The Appellate Division affirmed the Special Term’s ruling. The New York Court of Appeals granted leave to appeal and subsequently reversed the lower courts’ decisions.
Issue(s)
Whether a teacher eligible for retirement under Military Law § 245 (based on age, service, and military status) is considered eligible for retirement “by reason of service” under Administrative Code § B20-41.0(2) when he dies while still employed, thus entitling his beneficiary to the higher retirement benefits.
Holding
Yes, because Military Law § 245, while considering military service, also requires