Current through Register Vol. 24-18, September 15, 2024
(1) All
benefits paid from the retirement plan shall be distributed in accordance with
a reasonable and good faith interpretation of the requirements of section 401
(a)(9) of the Internal Revenue Code, as applicable to a governmental plan
within the meaning of section 414(d) of the Internal Revenue Code. In order to
meet these requirements, the retirement plan shall be administered in
accordance with the following provisions:
(a)
If a plan member separates from service prior to attaining eligibility for a
future benefit and the balance of the member's accumulated contributions is
less than $1,000, the department may initiate a refund of the member's
accumulated contributions following written notification to the member.
(i) A refund of the accumulated contributions
initiated by the department under the terms of this section shall terminate all
rights to benefits in the retirement plan.
(ii) If the member is reemployed in an
eligible position, service credits earned prior to the refund may be restored
upon repayment according to the provisions of the plan.
(b) Distribution of a member's benefit must
begin by the later of April 1st following the calendar year in which a member
attains age seventy and one-half or April 1st of the year following the
calendar year in which the member retires;
(c) Unless distributed in a lump sum, the
member's entire interest must be distributed over the member's life or the
lives of the member and a designated beneficiary, or over a period not
extending beyond the life expectancy of the member or of the member and
designated beneficiary;
(d) The
life expectancy of a member or the member's spouse or beneficiary may not be
recalculated after the benefits commence;
(e) If a member dies before the required
distribution of the member's benefits has begun, the member's entire interest
must be either:
(i) Distributed (in accordance
with federal regulations) over the life or life expectancy of the designated
beneficiary, with the distributions beginning no later than December 31st of
the calendar year following the calendar year of the member's death;
or
(ii) Distributed within five
years of the member's death.
(f) The amount of an annuity paid to a
member's beneficiary may not exceed the maximum determined under the incidental
death benefit requirement of section 401 (a)(9)(G) of the Internal Revenue
Code, and the minimum distribution incidental benefit rule under Treasury
Regulation section 1.401 (a)(9)-6, Q&A 2; and
(g) If a member dies after the distribution
of the member's benefits has begun, the remaining portion of the member's
interest will be distributed at least as rapidly as under the method of
distribution being used for the member as of the date of the member's
death.
(2) The
retirement system pursuant to a valid dissolution order as defined in
RCW
41.50.500 may establish separate benefits for
a member and nonmember.
(3) The
death and disability benefits provided by the plan are limited by the
incidental benefit rule set forth in section 401 (a)(9)(G) of the Internal
Revenue Code and Treasury Regulation section 1.401-1 (b)(1)(i) or any successor
regulation thereto. As a result, the total death or disability benefits payable
may not exceed twenty-five percent of the cost for all of the members' benefits
received from the plan.
Statutory Authority:
RCW
41.50.050(5). 10-24-099,
§415-02-750, filed 12/1/10,
effective 1/1/11.
