PURPOSE: This rule describes the timing and form of benefit payments from the 457 Plan.

1. (1) Eligibility for Payment. Distribution to a Participant of his or her Account shall be made no earlier than—

   1. (A) Separation from Service;
   2. (B) The calendar year in which the Participant attains age 70 1/2;
   3. (C) The date the Board approves a distribution to the Participant on account of an Unforeseeable Emergency; or
   4. (D) The date the Participant requests a voluntary in-service de minimis distribution from the Plan.
2. (2) Distribution Due to Unforeseeable Emergency. A Participant may request a distribution due to Unforeseeable Emergency by submitting a request to the Board (or its designee). The Board (or its designee) shall have the authority to require such evidence as it deems necessary to determine whether a distribution is warranted. If an application for a hardship distribution due to an Unforeseeable Emergency is approved, the distribution is limited to an amount sufficient to meet the Unforeseeable Emergency. The allowed distribution shall be paid in a single sum to the Participant as soon as possible after approval of such distribution.

3. (3) Voluntary In-Service De Minimis Distribution. A Participant who is an active Employee shall receive a distribution of his or her Account if the following requirements are met:

   1. (A) The Participant’s Account balance does not exceed $5,000 (or the dollar limit under section 411(a)(11) of the Code, if greater);
   2. (B) The Participant has not previously received an in-service distribution of his or her Account balance;
   3. (C) The Participant has not made Deferrals during the two-year period ending on the date of the in-service distribution; and
   4. (D) The Participant elects to receive the distribution.

4. (4) Commencement of Distributions.

   1. (A) General Rule. Distribution of a Participant’s Account under the Plan shall be made in the form elected by the Participant, commencing as soon as administratively feasible after the calendar year quarter in which the Participant’s Separation from Service occurs, unless the Participant makes a one-time irrevocable written election to defer this payment to a specified later date, and the election is made at least 30 days before the date benefits commence. A Participant may elect that the single-sum distribution of benefits be made on any determinable future date as long as distributions commence no later than 60 days following the close of the calendar year in which the Participant attains age 70 1/2, or retires, if later.
   2. (B) If a Participant has elected a deferred commencement date, then the Participant may make an additional election to further defer the commencement of distributions, provided that the election is filed before distributions actually begin and the later commencement date meets the required distribution commencement date provisions of sections 401(a)(9) and 457(d)(2) of the Code. A Participant may not make more than one such additional deferral election.
   3. (C) Notwithstanding subsections (4)(A) and (4)(B), if the value of a Participant’s Account is $5,000 or less, then his or her benefit under the Plan shall be distributed to him in a single sum as soon as administratively feasible following his or her Separation from Service.
   4. (D) Employees who terminate employment and then resume employment with an Employer within 30 days will not forfeit their prior service and will not be required to receive a refund of their payroll contributions.
5. (5) Payment Options. A Participant’s or Beneficiary’s election of a payment option must be made at least 30 days prior to the date that the payment of benefits is to commence. If a timely election of a payment option is not made, benefits shall be paid in a single lump sum, as soon as administratively feasible following the Participant’s Separation from Service. Once payments have commenced, the form of payment option may not be changed.

6. (6) Subject to applicable law and the other provisions of this Plan, distributions may be made in accordance with one of the following payment options:

   1. (A) A single lump-sum payment;
   2. (B) Substantially nonincreasing installment payments for a period of years (payable on a monthly, quarterly, semi-annual, or annual basis) which extends no longer than the life expectancy of the Participant; 16 CSR 50-20
   3. (C) Partial lump-sum payment of a designated amount, with the balance payable in substantially nonincreasing installment payments for a period of years, as described in subsection (6)(B), as long as such installment payments begin prior to the end of the calendar year following the year the partial lumpsum payment was made; and
   4. (D) Annuity payments (payable on a monthly, quarterly, or annual basis) for the lifetime of the Participant or for the lifetimes of the Participant and Beneficiary if permitted under sections 401(a)(9) or 459(d) of the Code. If the Participant fails to make a timely election of one of the payment options described above, payment shall be made in a single sum as soon as feasible following the Participant’s Separation from Service.

7. (7) Plan-to-Plan Transfers. Notwithstanding any other provisions of the Plan, all or any part of the Account of a former Employee who is a Participant in the Plan shall, instead of being distributed in accordance with section (4), be transferred to another eligible deferred compensation plan in which the former Employee has become a participant, if—

   1. (A) The plan receiving such amounts provides for acceptance of such transfers; and
   2. (B) The Participant gives written direction to the Board (or its designee) to make such transfer.
8. (8) This Plan also shall accept the transfer of amounts previously deferred by a Participant under another eligible deferred compensation plan described in section 457 of the Code.
9. (9) All distributions under this rule 16 CSR 50-20.070 shall be made in accordance with the requirements of Code sections 457(d)(2) and 401(a)(9).

10. (10) Lost Participants. Notwithstanding any other provision of the Plan, if it is not possible to make payment because the Board cannot locate the Participant after making reasonable efforts to so do, a retroactive payment may be made as soon as administratively feasible after the date on which the Participant is located.

    1. (A) If the Board is unable to locate any person entitled to receive distribution from an Account hereunder, such Account shall be forfeited and used to reduce Plan expenses on the date two years after the date the Board sends by certified mail a notice concerning the benefits to such person at his or her last known address (or determines that there is no last known address).
    2. (B) If an Account is forfeited under this Section and a person otherwise entitled to the Account subsequently files a claim with the Board during any Plan Year, before any allocations for such Plan Year are made, the Account will be restored to the amount which was forfeited without regard to any earnings or losses that would have been allocated. Such restoration shall first be taken out of forfeitures which have not been allocated and if such forfeitures are insufficient to restore such person’s account balance, restoration shall be made by an Employer contribution to the Plan.

AUTHORITY: section 50.1300, RSMo Supp. 1999.* Original rule filed May 9, 2000, effective Jan. 30, 2001. *Original authority: 50.1300, RSMo 1999.