DeMeo v. New York State Policemen’s and Firemen’s Retirement System, 41 N.Y.2d 1045 (1977)

Retirement benefits do not vest at the time of application but only upon approval by the state comptroller, and an application is canceled upon the applicant’s death before the comptroller’s approval.

Summary

This case addresses whether an application for ordinary disability retirement benefits vests upon filing or upon approval by the State Comptroller. The applicant, a member of the New York State Policemen’s and Firemen’s Retirement System, filed for disability retirement but died before the Comptroller approved the application. The court held that the application was canceled upon his death because retirement benefits do not vest until the Comptroller approves the application and sets an effective date. The court also found no undue delay in the Comptroller’s processing of the application.

Facts

The appellant’s intestate, a member of the New York State Policemen’s and Firemen’s Retirement System, filed an application for ordinary disability retirement on August 14, 1975.
The applicant died on October 6, 1975.
At the time of death, the State Comptroller had not yet approved the retirement application nor fixed an effective date for retirement.

Procedural History

The Comptroller determined that the application was canceled upon the applicant’s death.
The Appellate Division affirmed the Comptroller’s determination.
The Court of Appeals affirmed the Appellate Division’s order.

Issue(s)

Whether an application for ordinary disability retirement benefits vests at the time of filing, or whether it is canceled upon the applicant’s death before the State Comptroller approves the application and fixes an effective date for retirement.

Holding

No, because Section 362(aa)(2) of the Retirement and Social Security Law expressly states that retirement shall not be effective until “as of a date approved by the [State] comptroller,” and the Comptroller had not yet approved the application or set an effective date before the applicant’s death.

Court’s Reasoning

The court based its reasoning on the explicit language of Section 362(aa)(2) of the Retirement and Social Security Law, which requires the State Comptroller’s approval for retirement to become effective. The court emphasized that the retirement did not vest at the time of filing. The court stated that “retirement shall not be effective until ‘as of a date approved by the [State] comptroller’”. The Comptroller had not completed the necessary investigation to pass on the merits of the application, nor had an effective date been fixed before the applicant’s death. The court deferred to the administrative process required for the Comptroller to make a determination. The court also rejected the argument that the time between the filing and the death constituted undue delay, finding no error of law in the Appellate Division’s finding on this issue. This holding reinforces the principle that statutory requirements for vesting of benefits must be strictly met, and that administrative processes are given deference in the absence of clear evidence of error or undue delay. The court did not elaborate further but affirmed the lower court’s decision based on the existing legal framework.