(a) Vesting. If a participant's employment is terminated due to the death of the participant, to the extent not then vested, the participant shall become fully vested in the participant's plan account.
(b) Payment.
(1) Upon the death of a participant, the participant's plan account shall be paid to the participant's designated beneficiary. If there is no designated beneficiary, a participant's beneficiary shall be the participant's surviving spouse, or, if the participant has no surviving spouse, the participant's estate.
(2) Payment of the participant's plan account on death shall be made in a lump sum form of benefit as soon as is practicable following the participant's death and after arrangements for payment have been made by the Administrator and the trustee.
(c) Death while performing qualified military service. Notwithstanding any other provision of this title to the contrary, in the case of a participant who dies while performing qualified military service, as defined in Internal Revenue Code § 414(u), the survivors of the participant are entitled to any additional benefits provided under this plan, other than benefit accruals relating to the period of qualified military service, as if the participant had resumed employment and then terminated employment on account of death.
(Bill No. 95-17)