(a) Definitions. In this section, the following terms have the meanings indicated.
(1) "Eligible rollover distribution" has the meaning stated in § 401(a)(31)(C) of the Internal Revenue Code and means any distribution of all or any portion of the balance to the credit of the distributee, except:
(i) any distribution that is one of a series of substantially equal periodic payments, not less frequent than annual, made for the life or life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more;
(ii) any distribution to the extent such distribution is required under § 401(a)(9) of the Internal Revenue Code;
(iii) the portion of any distribution that is not includible in gross income; and
(iv) any portion of a distribution which is a hardship distribution.
(2) "Eligible retirement plan" has the meaning stated in § 401(a)(31)(D) of the Internal Revenue Code and means:
(i) an individual retirement account described in § 408(a) of the Internal Revenue Code;
(ii) an individual retirement annuity described in § 408(b) of the Internal Revenue Code other than an endowment contract;
(iii) an annuity plan described in § 403(a) of the Internal Revenue Code;
(iv) an annuity contract described in § 403(b) of the Internal Revenue Code;
(v) an eligible plan described in § 457(b) of the Internal Revenue Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan;
(vi) a qualified trust that is a defined contribution plan described in § 401(a) of the Internal Revenue Code, the terms of which permit the acceptance of direct rollovers; and
(vii) a Roth IRA described in § 408A of the Internal Revenue Code, provided that the requirements of § 408A and the Treasury Regulations issued thereunder are satisfied.
(3) "Distributee" includes the participant and the participant's surviving spouse. In addition, "distributee" includes the participant's spouse or former spouse who is the alternate payee under a domestic relations order, which meets the requirements of § 414(p)(1)(A)(i) of the Internal Revenue Code, with respect to the payee's interest under the plan. For distributions to eligible retirement plans described in paragraph (2)(i) and (ii) of this subsection. The term "distributee" also includes the participant's surviving non-spouse beneficiary who is a designated beneficiary within the meaning of § 401(a)(9)(E) of the Internal Revenue Code.
(b) Generally. Notwithstanding any other provision in this article to the contrary, a distributee who is to receive an eligible rollover distribution may elect a direct trustee-to-trustee rollover of the distribution to an eligible retirement plan. A direct rollover election shall be made pursuant to the procedures established by the personnel officer and shall specify the eligible retirement plan to which the direct rollover is to be made. If the participant or beneficiary elects a direct rollover in accordance with the procedures established by the personnel officer, the personnel officer shall make the rollover as elected.
(1985 Code, Art. 7, § 1-405) (Bill No. 90-01; Bill No. 92-08; Bill No. 2-14)