Distribution requirements.

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A. All benefits paid from the System shall be distributed in accordance with the requirements of Section 401(a)(9) of the federal Internal Revenue Code and the regulations under that section. In order to meet these requirements, the System shall be administered in accordance with the following provisions:

1. Distributions of a member's benefits must begin no later than the date required by Section 401 of the federal Internal Revenue Code;

2. The life expectancy of a member or a member's spouse may not be recalculated after the benefits commence;

3. If a member dies before the distribution of the member's benefits has begun, distributions to beneficiaries must begin no later than December 31 of the calendar year immediately following the calendar year in which the member died; and

4. The amount of benefits payable to a member's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of the federal Internal Revenue Code.

B. Except as otherwise provided in Section 1102 of this title, distributions from the System may be made only upon retirement, separation from service, disability or death.

Added by Laws 1999, c. 257, § 19, eff. July 1, 1999. Amended by Laws 2020, c. 57, § 1, eff. July 1, 2020.


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