(A) If a participant dies before his annuity starting date, death benefits shall be determined under divisions (A)(1) and (A)(2) of this section. The distribution of death benefits shall be subject to the distribution of benefits provisions of §§ 38.050 through 38.053 and the provisions of § 38.098.
(1) Preretirement survivor annuity.
(a) A preretirement survivor annuity shall be payable if the following requirements are met:
1. The participant is survived by a spouse to whom he was continuously married throughout the one-year period ending on the date he dies or the participant is survived by his domestic partner that has continuously been his domestic partner throughout the one-year period ending on the date he dies.
2. The participant dies while he is an employee.
3. The participant had met the requirements for early retirement date, or reached normal retirement date, if earlier.
(b) If the requirements above are met on the date the participant dies, a preretirement survivor annuity shall be payable on the earliest date on or after the date of his death on which he could have elected to retire if he had a severance from employment on the date of his death (the date he last had a severance from employment, if earlier) and survived to retire. The spouse or domestic partner may elect to start benefits on any later first day of the month. If the spouse or domestic partner chooses to start benefits later, the preretirement survivor annuity shall be the actuarial equivalent of the preretirement survivor annuity that would have been payable on the date the preretirement survivor annuity would otherwise have been payable. Benefits must start to a surviving spouse by the date the participant would have been age 70-1/2. Benefits must start to a domestic partner by December 31st of the calendar year following the calendar year in which the participant dies. If the spouse or domestic partner dies before the preretirement survivor annuity starts, the only death benefit payable from the participant's accrued benefit is that provided in division (A)(2) below.
(c) If a single sum death benefit would otherwise be payable in division (A)(2) below, the monthly benefit payable to the spouse or domestic partner under the preretirement survivor annuity on the date the preretirement survivor annuity first becomes payable shall not be less than the preretirement survivor annuity that is the actuarial equivalent of the single sum death benefit on that date.
(d) If the participant waives the preretirement survivor annuity, according to the provisions of § 38.053, by electing to have the single sum death benefit in division (A)(2) below paid to his beneficiary after the requirements above are met or if the spouse or domestic partner waives the preretirement survivor annuity, according to § 38.053, by electing to have the single sum death benefit in division (A)(2) below paid to himself as beneficiary after the requirements above are met, the preretirement survivor annuity on the date the preretirement survivor annuity first becomes payable shall be reduced. The amount of the reduction shall be equal to the preretirement survivor annuity that is the actuarial equivalent of what would have been the single sum death benefit on that date.
(2) Single sum death benefit.
(a) If the requirements of division (A)(1) above have not been met on the date a participant dies, a single sum death benefit equal to his required contribution account on the date he died shall be payable to the participant's beneficiary. If the requirements of division (A)(1) above have been met on the date such participant dies and the preretirement survivor annuity has not been waived, but the participant's spouse or domestic partner dies before the preretirement survivor annuity starts, this single sum death benefit, determined as of the date of the spouse's or domestic partner's death, shall be paid to the spouse's or domestic partner's beneficiary.
(b) Before a single sum death benefit will be paid on account of the death of a participant who would have met all the requirements in division (A)(1) above if he had a spouse to whom he had been continuously married throughout the one-year period ending on the date of his death, it must be established to the satisfaction of a plan representative that there is no spouse or that the participant had not been continuously married throughout the one-year period ending on the date of his death. Likewise, before a single sum death benefit will be paid on account of the death of a participant who would have met all the requirements in division (A)(1) above if he had a domestic partner that had continuously been his domestic partner throughout the one-year period ending on the date of his death, it must be established to the satisfaction of the plan representative that there is no domestic partner or that he had not continuously been the participant's domestic partner throughout the one-year period ending on the date of the participant's death.
(B) If a participant dies on or after his normal retirement date and before his annuity starting date and such participant is survived by a spouse to whom he was continuously married throughout the one-year period ending on the date of his death (or is survived by a domestic partner that has been his domestic partner throughout the one-year period ending on the date of his death), the death benefit shall be payable in like manner as provided under divisions (A)(1) and (A)(2) above, unless such participant is an active participant who has waived the preretirement survivor annuity, according to § 38.053, by electing the preservation of retirement options death benefit.
(C) If an active participant dies on or after his normal retirement date and before his annuity starting date and such participant is not survived by a spouse to whom he was continuously married throughout the one-year period ending on the date of his death (or is not survived by a domestic partner that has been his domestic partner throughout the one-year period ending on the date of his death), the provisions of divisions (A)(1) and (A)(2) above shall not apply. Instead, the death benefit shall be the preservation of retirement option death benefit. This death benefit is the death benefit that would have been payable to such participant's beneficiary or contingent annuitant if the participant's retirement date had occurred on the date he died. The optional form of distribution elected according to the provisions of § 38.053 before such participant's death is the form in effect for determining the death benefit. The automatic form of distribution for retirement benefits under § 38.051 shall be in effect if an election has not been made or an election is revoked without a subsequent election according to the provisions of § 38.053. Any death benefit payable shall be subject to the distribution limitations of § 38.062.
(D) If, after any death benefit above is distributed in a single sum, the present value of the remaining preretirement survivor annuity payable under division (A)(1) above is $5,000 or less, the spouse or domestic partner may receive such present value in a single sum payment in lieu of the preretirement survivor annuity. It will be distributed only if the spouse or domestic partner so elects. This election shall be subject to the requirements in § 38.053 for an election of a death benefit payable in a form other than a preretirement survivor annuity.
(E) Any death benefit after a participant's annuity starting date will be determined by the form of retirement benefit in effect on such date. (Ord. 1806, passed 1-7-15)