(A) If the participant dies before a retirement distribution begins, unless the Plan Administrator receives a timely election for the beneficiary to receive distributions as permitted below, the Plan Administrator shall pay (or cause to be paid) to each beneficiary who has not made a timely election a lump-sum distribution of the applicable segregated portion of the participant’s account not later than December 31 of the calendar year that includes the fifth anniversary of the participant’s death.
(B) If any portion of the participant’s account is payable to a designated beneficiary, each designated beneficiary may elect that his, her or its distribution be made over the life or over a period certain not greater than the life expectancy of the designated beneficiary if that distribution begins not later than December 31 of the calendar year immediately following the calendar year during which the participant died.
(C) If a designated beneficiary is the participant’s surviving spouse, as to that designated beneficiary, the required beginning date is not earlier than the later of December 31 of the calendar year immediately following the calendar year during which the participant died and December 31 of the calendar year during which the participant would have attained age 70 and one-half.
(D) Each designated beneficiary must elect his, her or its payout option not later than the earlier of December 31 of the calendar year for which a distribution would be required under this section, or December 31 of the calendar year that includes the fifth anniversary of the date of the participant’s death.
(E) If a designated beneficiary fails to elect a payout option (or if the plan administrator finds that a beneficiary is not a designated beneficiary), the plan administrator shall pay (or cause to be paid) the participant’s account (or the designated beneficiary’s applicable sub-account) as a lump-sum not later than December 31 of the calendar year that includes the fifth anniversary of the participant’s death.
(F) For the purposes of this section, if the surviving spouse dies after the participant but before a distribution to that spouse begins, the provisions of this section, other than subsection (C) above, shall be applied as if the surviving spouse were the participant.
(G) For the purposes of this section, any amount paid to a child of the participant is treated as if it had been paid to the surviving spouse if the amount becomes payable to the surviving spouse when the child reaches the age of majority.
(H) For the purposes of this subchapter, any distribution that is made according to this section is considered to begin on the required beginning date, and any distribution made in the form of an annuity is considered to begin on the date the distribution actually commences.
(Ord. NIRC 97-1, passed 1-15-1997)