Page 4 - Public Employees Retirement Fund My Choice Plan Member Handbook for Local Government Employees

Tax Penalty – Early Distribution.................................................................................................... 32 6.3 CARES Act ........................................................................................................................................... 32 6.3.1 CARES Act – COVID Qualifications......................................................................................... 32
6.4 Staying Invested.................................................................................................................................. 33
6.5 Loans ................................................................................................................................................... 33
7 Beneficiaries ....................................................................................................34
7.1 Designating Beneficiaries.................................................................................................................... 34 7.2 Changing Your Beneficiary after Distribution..................................................................................... 35 7.3 Divorce................................................................................................................................................. 35 7.4 Qualified Domestic Relations Order (QDRO) ...................................................................................... 35 7.5 Disclaiming a Distribution................................................................................................................... 35 7.6 Trust or Legal Entity as a Beneficiary ................................................................................................. 35
8 Distribution Benefits ......................................................................................36
8.1 Distribution Benefit ............................................................................................................................. 36
8.2 Distribution Eligibility.......................................................................................................................... 36
8.3 Distribution Ineligibility....................................................................................................................... 36
8.4 Distribution Effective Date .................................................................................................................. 36
8.5 Distribution Options ............................................................................................................................ 37
Table 3: Distribution Options ........................................................................................................ 37
8.5.1 Regular Distribution................................................................................................................ 37
8.5.2 Early Distribution .................................................................................................................... 37
8.5.3 Deferred Retirement Option Plan (DROP) .............................................................................. 38
8.5.4 Disability Distribution ............................................................................................................. 38
Disability Eligibility........................................................................................................................ 38
Disability Withdrawal .................................................................................................................... 38
8.6 My Choice Plan Distribution Payment Options .................................................................................. 38
8.6.1 Split Defined Contribution and/or Rollover Pre-Tax Contribution Account Balance ............ 39
8.6.2 Full Withdrawal ....................................................................................................................... 39
8.6.3 Full Deferment ........................................................................................................................ 39
8.6.4 Partial Withdrawal with Deferment ........................................................................................ 39
8.6.5 Partial Deferment .................................................................................................................... 40
8.6.6 Partial Rollover/Partial Withdrawal ........................................................................................ 40
8.7 Direct Deposit ...................................................................................................................................... 40
8.8 Re-Employment of Vested Members (Who Took Distribution).......................................................... 41 Example......................................................................................................................................... 41
9 Death Benefits ................................................................................................42
9.1 Death Distribution ............................................................................................................................... 42
9.2 Death While In or Out of Service ........................................................................................................ 42
9.3 Survivor Benefit................................................................................................................................... 42
9.3.1 Beneficiary Payments or Surviving Spouse........................................................................... 43 9.4 Disclaiming a Distribution................................................................................................................... 43
Public Employees Retirement Fund My Choice Plan Page 4 of 50 Member Handbook for Local Government Employees
Effective: 07/01/2020