Delaware Administrative Code
Title 19 - Labor
2000 - Employee Benefits
2004 - State Police Pension Plan
Section 2004-5.0 - Distribution Requirements to Comply with IRS Code Section 401(a)(9). [Compliance with Code Section 401(a)(9)(RMDs); IRS-approved Language]
Universal Citation: 19 DE Admin Code 2004-5.0
Current through Register Vol. 28, No. 9, March 1, 2025
5.1 Distributions from the Pension Trust may be made only upon the death of a Plan participant, termination of service by voluntary resignation, attainment of normal retirement age under the terms of the Plan, qualification for a disability pension under the terms of the Plan, or attainment of the age of 701/2 (if the Plan participant was born before July 1, 1949) or after age 72 (if the Plan participant was born after June 30, 1949) except for an employee in active status.
5.2 The Pension Fund will pay all benefits in accordance with a good faith interpretation of §401(a)(9) of the Internal Revenue Code of 1986 and the regulations under that section, as applicable to a governmental plan within the meaning of §414(d) of the Internal Revenue Code.
5.3 Notwithstanding any other provision of these rules and regulations, the Pension Fund is subject to the following provisions:
5.3.1 Benefits must begin by the
required beginning date, which is the later of April 1 of the calendar year
following the calendar year in which the Plan participant reaches 701/2 years
of age (if the Plan participant was born before July 1, 1949) or after 72 years
of age (if the Plan participant was born after June 30, 1949) or April 1 of the
calendar year following the calendar year in which the Plan participant
terminates employment. If a Plan participant fails to apply for retirement
benefits by April 1 of the calendar year following the calendar year in which
he or she reaches 701/2 years of age (if the Plan participant was born before
July 1, 1949) or after 72 years of age (if the Plan participant was born after
June 30, 1949) or April 1 of the calendar year following the calendar year in
which he or she terminates employment, whichever is later, the Board will begin
distributing the benefit as required by Section
5.0.
5.3.2 The Plan participant's entire interest
must be distributed over the Plan participant's life or the lives of the Plan
participant and a designated survivor under state law, or over a period not
extending beyond the life expectancy of the Plan participant or of the Plan
participant and a designated survivor under state law. Death benefits must be
distributed in accordance with §401(a)(9) of the Internal Revenue Code of
1986, including the incidental death benefit requirement in §401(a)(9)(G)
of the Internal Revenue Code of 1986, and the regulations implementing that
section.
5.3.3 The life expectancy
of a Plan participant, the Plan participant's spouse or the Plan participant's
survivor under state law may not be recalculated after the initial
determination for purposes of determining benefits.
5.3.4 If a Plan participant dies after the
required distribution of benefits has begun, the remaining portion of the Plan
participant's interest must be distributed at least as rapidly as under the
method of distribution before the Plan participant's death and no longer than
the remaining period over which distributions commenced.
5.3.5 If a Plan participant dies before
required distribution of the Plan participant's benefits has begun, the Plan
participant's entire interest be distributed as follows:
5.3.5.1 If the participant's surviving spouse
is the sole designated beneficiary, the participant's remaining interest in the
Plan is distributed or begins to be distributed by December 31 of the calendar
year immediately following the calendar year in which the member died or by
December 31 of the calendar year in which the member would have attained age
701/2 (if the deceased member was born before July 1, 1949) or after age 72 (if
the deceased member was born after June 30, 1949) if later, and if the
surviving spouse dies before the distribution to the surviving spouse begins,
subsection 10.3 .5.1 of this regulation shall be applied as if the surviving
spouse were the Plan participant; or
5.3.5.2 If the participant's surviving spouse
is not the sole designated beneficiary, the benefit must be distributed (in
accordance with federal regulations under §401(a)(9) of the Internal
Revenue Code of 1986) over the life or life expectancy of the designated
survivor under state law, with the distributions beginning no later than
December 31 of the calendar year immediately following the calendar year of the
Plan participant's death; or
5.3.5.3 Distributed by December 31 of the
calendar year containing the fifth anniversary of the Plan participant's
death.
5.3.6 The amount
of an annuity paid to a Plan participant's Beneficiary may not exceed the
maximum determined under the incidental death benefit requirement of
§401(a)(9)(G) of the Internal Revenue Code of 1986.
5.3.7 The death and disability benefits
provided by Pension Fund are limited by the incidental benefit rule set forth
in Treasury Regulation § 1.401 -1(b)(1)(ii) or any successor regulation
thereto.
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