Section 6-B2606. DISTRIBUTION AND FORFEITURE OF BENEFITS

 

2606.1The Administrator shall not direct any distribution of benefits to be made to, or on behalf of, a participant who has not accrued a minimum of five (5) years of creditable service, unless the participant becomes disabled or dies prior to that time.

 

2606.2The Administrator shall direct the Trustee to distribute benefits in lump sum to a vested participant, former participant, or beneficiary, as the case may be, who separates from service, becomes disabled, or dies, as soon as administratively feasible, but in no event longer than ninety (90) days after the end of the quarter in which separation from service, disability, or death occurs, unless a distribution option is elected pursuant to § 2606.3; however, benefits of less than $3,500.00 may only be distributed in lump sum payment.

 

2606.3A vested participant, former participant, or beneficiary, as the case may be, may elect to have benefits distributed in substantially equal amounts on a monthly or annual basis over a period of either three (3), five (5), or ten (10) years, or distributed in lump sum at a specified time in the future, as provided in the Plan Document, and pursuant to the limitations set forth in IRC § 401(a)(9); however, this election must be made within sixty (60) days after separation from service, or benefits shall be distributed only in lump sum.

 

2606.4In no event shall the distribution of benefits to a participant, former participant, or beneficiary, as the case may be, commence later than April 1 of the calendar year following the year in which the participant, former participant, or beneficiary attains the age of seventy and one-half (70-1/2), or by such other age, if any, that the Internal Revenue Service may establish which is applicable to qualified plans under IRC § 401(a).

 

2606.5Prior to any distribution of benefits from the Plan to a former participant, the former participant must attest to his or her marital status and, if married, submit written consent, witnessed by a notary public, from his or her spouse, to any distribution of benefits, unless it is established to the satisfaction of the Administrator that this consent cannot be obtained due to incompetence, incapacitation, or unavailability of the spouse.

 

2606.6If a participant, former participant, or beneficiary, as the case may be, elects to have benefits distributed in accordance with § 2606.3, his or her active account shall be transferred to an inactive account during the period for which benefits are to be distributed.

 

2606.7If a participant dies prior to the commencement of a distribution of benefits, the Administrator shall direct the Trustee to distribute benefits to the beneficiary in accordance with the Plan Document.

 

2606.8If a former participant dies after the commencement of a distribution of benefits, the Administrator shall direct the Trustee to distribute any remaining benefits to the beneficiary of the former participant in accordance with the Plan Document.

 

2606.9If a participant becomes disabled prior to a separation from service, the Administrator shall direct the Trustee to distribute benefits to the participant in accordance with the Plan Document.

 

2606.10If a participant or former participant dies without designating a beneficiary, the Administrator shall direct the Trustee to distribute any remaining benefits in accordance with the Plan Document.

 

2606.11A married participant or former participant may only designate a beneficiary other than his or her spouse upon the written attested consent of the spouse, unless it is established to the satisfaction of the Administrator that this consent can not be obtained due to incompetence, incapacitation, or unavailability of the spouse.

 

source

Final Rulemaking published at 37 DCR 954 (February 2, 1990); as amended by Final Rulemaking published at 38 DCR 2130 (April 12, 1991).