3307:1-12-01 Distributions.

  • Text Box: ACTION: Emergency Text Box: DATE: 12/28/2005 4:02 PM

     

     

     

    3307:1-12-01               Distributions.

     

     

     

    (A)    No payment in an amount of two hundred dollars or more shall be made to any person until any applicable requirements of sections 401(a)(31), 402(c), 402(f) and 3405 of the Internal Revenue Code or any provision of federal law governing withholding from or rollover of distributions from a qualified trust have been satisfied, provided that:

     

    (1)  The state teachers retirement system shall give notice of options available to any such person as required by federal law.

     

    (2)   The state teachers retirement system will permit any such person to direct that an amount at least equal to the entire payment due from the state teachers retirement system or five hundred dollars, whichever is less, be paid by check as a direct rollover to one eligible retirement plan designated by the person.

     

    (3)   Application by the person to have all or part of a payment due him paid as a direct rollover shall be on a form provided by the state teachers retirement system which shall contain the name and address of the retirement plan to which the payment or portion thereof is to be made. The form provided by the system shall further contain the person's representation and certification that the retirement plan is an eligible retirement plan.

     

    (4)When a person directs that payment be divided between a direct rollover and a distribution to the person, the portion payable to the member will be subject to withholding, even if the amount is less than two hundred dollars.

     

    (B)   When a member applies for the restoration of service credit under section 3307.71 of the Revised Code or the purchase of service credit under section 3307.72, 3307.73, 3307.74, 3307.741, 3307.751, 3307.752, 3307.76, 3307.761, 3307.763, division (E) of section 3307.77, 3307.771 or 3307.78 of the Revised Code, to the extent permitted by federal law, the member may also apply to have the state teachers retirement system accept, in full or partial payment of the cost of such restoration or purchase, pretax funds transferred to the state teachers retirement system as a direct rollover on and after July 2, 2002 from a plan or account eligible under the terms of the Internal Revenue Code to roll funds over to a trust qualified under the terms of section 401(a) of the Internal Revenue Code and provided the funds were not commingled in the individual retirement plan with funds from any source other than a trust qualified under section 401(a) of the Internal Revenue Code. Acceptance of a direct rollover under this paragraph shall be subject to the following:

     

    (1)  Application shall be on a form approved by the state teachers retirement system;

     

     

     

     

    (2)    Application shall be subject to determination by the state teachers retirement system of the amount that will be accepted;

    (3)    The amount accepted by the state teachers retirement system shall in no case exceed the cost of restoration or purchase determined by the system.

    (C)   For purposes of section 3307.563 of the Revised Code, interest rates on amounts to be paid under section 3307.56 or 3307.562 of the Revised Code shall be as follows: determined by the board. Interest for all years withdrawn shall begin to accrue in the fiscal year following deposit. No interest will be payable if a former member applies to withdraw an account consisting only of contributions made during the current fiscal year. Interest stops accruing as of the end of the month immediately preceding withdrawal.

    (1) If the member has less than three full years of qualifying service credit, the interest rate shall be four per cent, compounded annually.

    (2) If the member has three or more full years of qualifying service credit, the interest rate shall be six per cent through December 31, 1998, and five per cent thereafter, compounded annually.

    (3) If a member has five or more full years of qualifying service credit, payment of an additional amount shall be made as provided by division (A)(3)(b) of section 3307.563 of the Revised Code, in an amount equal to the sum of fifty per cent of teacher contributions under section 3307.26 of the Revised Code, plus interest thereon at a rate of six per cent through December 31, 1998, and five per cent thereafter, compounded annually.

    (4) For purposes of paragraphs (C)(1), (C)(2) and (C)(3) of this rule, interest for all years withdrawn shall begin to accrue in the fiscal year following deposit. No interest will be payable if a former member applies to withdraw an account consisting only of contributions made during the immediately preceding school year. Interest stops accruing as of the end of the month immediately preceding withdrawal.

    (D)   Pursuant to section 3307.56(A)(2) of the Revised Code, consent of a spouse shall not be required for withdrawal if:

    (1)   If the retirement system receives the written statement of a physician certifying that the spouse is medically incapable of acknowledging the request for withdrawal by the applicant, and receives consent by and through a duly appointed guardian, as specified by rule 3307-7-01 of the Administrative Code or

    (2)    If the affidavits of the applicant and at least two other persons, one of whom must be unrelated to the applicant, are received attesting that the whereabouts of the spouse are unknown.

    Effective:

     

     

    CERTIFIED ELECTRONICALLY

    01/01/2006

    Certification

     

     

    12/28/2005

     

    Date

     

     

    Promulgated Under:

     

    111.15

    Statutory Authority:

    3307.04

    Rule Amplifies:

    3307.56, 3307.563, 3307.71, 3307.72, 3307.73,

     

    3307.74, 3307.741, 3307.751, 3307.752, 3307.76,

     

    Prior Effective Dates:

    3307.761, 3307.77, 3307.771, 3307.78

    1/1/1993, 3/18/93, 7/1/01 (Emer.), 9/17/01, 7/1/02

    (Emer.) 9/17/02

Document Information

Effective Date:
1/1/2006
File Date:
2005-12-28
Last Day in Effect:
2006-01-01
Rule File:
3307$1-12-01_EM_AE_RU_20051228_1602.pdf
Related Chapter/Rule NO.: (1)
Ill. Adm. Code 3307:1-12-01. Distributions