(1)A
member's vested account balance becomes eligible for distribution upon the
member's death, permanent occupational or total disability pursuant to part 8 of
article 31 of this title 31, normal, vested, or early retirement, or termination of
employment.
(2)Upon becoming eligible for distribution and upon approval of the board, a
member, or the designated beneficiary if the member dies before distribution of the
member's individual account, may elect to receive the vested portion of balance of
the member's individual account by one of the following methods:
(a)The member or designated beneficiary may choose a lump sum payment
of all or a portion of the member's individual account.
(b)The member or designated beneficiary may elect to have the value of all
or a portion of t
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(1) A
member's vested account balance becomes eligible for distribution upon the
member's death, permanent occupational or total disability pursuant to part 8 of
article 31 of this title 31, normal, vested, or early retirement, or termination of
employment.
(2) Upon becoming eligible for distribution and upon approval of the board, a
member, or the designated beneficiary if the member dies before distribution of the
member's individual account, may elect to receive the vested portion of balance of
the member's individual account by one of the following methods:
(a) The member or designated beneficiary may choose a lump sum payment
of all or a portion of the member's individual account.
(b) The member or designated beneficiary may elect to have the value of all
or a portion of the individual account used to purchase an annuity contract, with a
term and in a form as the member elects. If there is an elected distribution in the
form of an annuity, any benefit payable as a result of the member's or beneficiary's
death must be determined solely under the terms of the annuity contract.
(c) The member may elect to have all or a portion of the member's individual
account distributed in substantially equal monthly payments over the member's life
expectancy or a period not to exceed the joint life expectancy of the member and a
spouse, if the spouse is the sole beneficiary, or until the account is exhausted. If the
member dies prior to the member's required beginning date, the designated
beneficiary may elect to have all or a portion of the member's individual account
distributed in substantially equal monthly payments over a period not to exceed the
life expectancy of the designated beneficiary.
(d) A member who is vested in both member and employer contributions to
the money purchase component of the plan and has attained age fifty-five may
elect to transfer all or part of the member's individual account balance within the
plan from the money purchase component account to the lifetime benefits account
to purchase a monthly benefit, which is considered a portion of the pension under
part 4 of this article 31.5. At retirement, a member may make a one-time irrevocable
election to purchase the monthly benefit in a single lump sum, which must be
transferred prior to the receipt of benefits from the lifetime benefit components.
Funds may not be transferred from outside the statewide retirement plan to
purchase a monthly benefit. Any transferred or rollover funds, except those funds
transferred by a department as part of an affiliation or reentry process, held within
the member's individual account are not eligible for purchase of a monthly benefit
and remain in the account until otherwise distributed.
(3) A member who terminates employment and has taken a refund of the
member's contributions to the lifetime benefit components is not required to
withdraw the money purchase component account, which shall be maintained and
shall continue to receive allocations for earnings and expenses until the assets of
the account are distributed.
(4) The board may establish by rule a minimum value for an individual
account and may require distribution if an account falls below the required
minimum value without receipt of a request for distribution.
(5) Upon a member's death with no designated beneficiary, the member's
individual account must be distributed to the member's estate. Upon the death of a
designated beneficiary who succeeded the member in death, the member's
individual account must be distributed to the designated beneficiary's estate.
(6) To the extent allowed under the federal Internal Revenue Code of 1986,
as amended, the board may, but is not required to, provide by rule for loans or
disaster distributions to members and for in-service distributions.