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 seventy and one-half (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 five thousand dollars ($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 (2)-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 elects to defer this payment. A Participant may elect that the distribution of benefits be made at any time following his or her Separation from Service as long as distributions commence no later than sixty (60) days following the close of the calendar year in which the Participant attains age seventy and one-half (70 1/2), or retires, if later.
   2. (B) Notwithstanding subsection (4)(A), if the value of a Participant’s Account is one thousand dollars ($1,000) or less, then his or her benefit under the Plan shall be distributed to him or her in a single sum as soon as administratively feasible following his or her Separation from Service.
   3. (C) Employees who terminate employment and then resume employment with an Employer within thirty (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 thirty (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. 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 (1) of the following payment options:

   1. (A) A single lump-sum payment;
   2. (B) Installment payments for a period of years (payable on a monthly, quarterly, semiannual, or annual basis) which extends no longer than the life expectancy of the Participant;
   3. (C) Partial lump-sum payment of a designated amount, with the balance payable in 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 lump-sum 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 457(d) of the 16 CSR 50-20

Code. If the Participant fails to make a timely election of one (1) of the payment options described above, payment shall be made in a single sum.

1. (7) Direct Rollover Option.

   1. (A) After December 31, 2001, a distributee may elect to have an eligible rollover distribution paid directly to a single eligible retirement plan specified by the distributee. However, this election may not be made if the total eligible rollover distributions paid to the distributee from the Plan will be less than two hundred dollars ($200).
   2. (B) A distributee may elect to divide an eligible rollover distribution so that part is paid directly to an eligible retirement plan and part is paid to the distributee. However, the part paid directly to the eligible retirement plan must total at least five hundred dollars ($500).
   3. (C) A distributee may elect a direct rollover after having received a written notice which complies with the rules of Code section 402(f). In general, payment to a distributee shall not begin until thirty (30) days after the section 402(f) notice is given. However, payment may be made sooner if the notice clearly informs the distributee of the right to a period of at least thirty (30) days to consider the decision of whether or not to make a direct rollover, and the distributee, after receiving the notice, makes an affirmative election to receive an immediate distribution. A distributee who fails to make an election in the thirty (30)-day period shall receive the eligible rollover distribution immediately after the thirty (30)-day period expires.

   4. (D) For purposes of this section (7), the following terms have the meanings set forth below:

      1. 1. An “eligible rollover distribution” is

any distribution or withdrawal payable under the terms of this Plan to a Participant or a Participant’s Beneficiary, which is described in Code section 402(c)(4). In general, this term includes any single-sum distribution, and any distribution which is one (1) in a series of substantially equal periodic payments made over a period of less than ten (10) years, and is less than the distributee’s life expectancy. However, an eligible rollover distribution does not include the portion of any distribution which constitutes a minimum required distribution under Code section 401(a)(9) or any distribution due to unforeseeable emergency;

1. 2. “Eligible retirement plan” means—

   1. A. An individual retirement account

described in Code section 408(a);

1. B. An individual retirement annuity

described in Code section 408(b);

1. C. An annuity plan described in Code

section 403(a);

1. D. A retirement plan qualified under

Code section 401(a), but only if the terms of the plan permit the acceptance of rollover distributions;

1. E. An annuity contract described in

Code section 403(b);

1. F. An eligible deferred compensation

plan under Code section 457(b) which is maintained by a state, a political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state; and

1. G. Effective January 1, 2008, a Roth

IRA described under Code section 408A to the extent permitted by applicable law; and

1. 3. “Distributee” means a Participant or

the spouse of a deceased Participant. Effective January 1, 2007, a Participant’s designated non-spouse Beneficiary may be a distributee but only with respect to an eligible retirement plan described in subparagraphs (7)(D)2.A. and B. above.

1. (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 or, effective January 1, 2002, an eligible rollover distribution described in section 457(e)(16) of the Code.
2. (9) All distributions under this rule 16 CSR 50-20.070 shall be made in accordance with a reasonable and good faith interpretation of the requirements of Code sections 457(d)(2) and 401(a)(9).

3. (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 (2) 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 2000.* Original rule filed May 9, 2000, effective Jan. 30, 2001. Amended: Filed April 25, 2002, effective Nov. 30, 2002. Amended: Filed June 7, 2006, effective Jan. 30, 2007. Amended: Filed Jan. 25, 2010, effective July 30, 2010.

*Original authority: 50.1300, RSMo 1999.