Section 2700.730  Election of Method of Distribution

a)         In an election to commence benefits as provided for under Section 2700.700, a Participant entitled to a distribution of benefits may elect to receive payment in any of the following forms of distribution:

1)         a lump sum payment of the total Account Balance; or

2)         a partial lump sum payment; or

3)         installment payments on an annual, semi-annual, quarterly, or monthly basis.

b)         A Participant, Beneficiary of a Participant, or a Participant's former spouse who is an alternate payee under a domestic relations order, as defined in section 414(p) of the Code, who is entitled to an eligible rollover distribution may elect, at the time and in the manner prescribed under the Plan, to have the distribution paid directly to an eligible retirement plan as a direct rollover.  An eligible retirement plan means an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, a qualified trust described in section 401(a) of the Code, an annuity plan described in section 403(a) or 403 (b) of the Code, or an eligible governmental plan described in section 457(b) of the Code, that accepts the eligible rollover distribution.

c)         For purposes of this Section, an eligible rollover distribution means any distribution of all or any portion of a Participant's Account Balance, except that an eligible rollover distribution does not include:

1)         any distribution made under Section 2700.740 as a result of an Unforeseeable Emergency; or

2)         the portion, if any, of the distribution that is a required minimum distribution under section 401(a)(9) of the Code other than those distributions described in subsections (c)(1) and (c)(2).  

d)         In no event shall any distribution under this Section begin later than the latter of:

1)         April 1 of the year following the calendar year in which the Participant attains the applicable age as defined under Code section 401(a)(9); or

2)         April 1 of the year following the year in which the Participant retires or otherwise has a Severance from Employment.

e)         If distributions commence in the calendar year following the latter of the calendar year in which the Participant attains the applicable age as defined under Code section 401(a)(9), or the calendar year in which the Severance from Employment occurs, the distribution on the date that distribution commences must be equal to the annual installment payment for the year that the Participant has a Severance from Employment and an amount equal to the annual installment payment for the year after Severance from Employment must also be paid before the end of the calendar year of commencement.

f)         Any election made under this Section may be revoked at any time.

g)         Any portion of the Deferred Compensation Account that has not been distributed shall continue to be credited and/or debited according to the provisions of Sections 2700.600 and 2700.610.

(Source:  Amended at 48 Ill. Reg. 10011, effective June 21, 2024)