145-1-21 Federal tax compliance provisions.

 

 

 

145-1-21                      Federal tax compliance provisions.

 

 

 

(A)  This rule is applicable to Chapter 145. of the Revised Code excluding sections 145.80 to 145.98 of the Revised Code.

 

(B)   The board shall distribute the funds established in Chapter 145. of the Revised Code to participants and their beneficiaries in accordance with the provisions of such Chapter. No part of the corpus or income of these funds may be used for or diverted to any purpose other than the exclusive benefit of the participants and their beneficiaries.

 

(C)   A member who satisfies the eligibility requirements of section 145.32 of the Revised Code shall have a non-forfeitable right to receive the benefit payable as allowed by Chapter 145. of the Revised Code. If there is a termination of the plan described in sections 145.201 to 145.79 of the Revised Code, the rights of each affected member to the benefits accrued at the date of termination, to the extent then funded, are non-forfeitable.

 

(D)   Employer contribution forfeitures arising from severance of employment, death, or for any other reason of the member may not be applied to increase the benefits any participant would otherwise receive under Chapter 145. of the Revised Code in accordance with section 401(a)(8) of the Internal Revenue Code and applicable regulations thereunder.

 

(E)   Notwithstanding any provision in PERS rules or Chapter 145. of the Revised Code to the contrary, distributions to members and beneficiaries shall be made in accordance with section 401(a)(9) of the Internal Revenue Code and applicable regulations thereunder and with the following rules.

 

(1)  The entire interest of a member shall be distributed to such member:

 

(a)   Not later than the required beginning date; or

 

(b)    Beginning not later than the required beginning date, in accordance with applicable regulations, over the life of such member and a designated beneficiary within the meaning of section 401(a)(9) of the Internal Revenue Code.

 

(2)   The required beginning date means April first of the calendar year following the later of:

 

(a)    The calendar year in which the member attains age seventy and one half years of age; or

 

 

(b)   The calendar year in which the member retires.

(3)   If distribution of a member's benefit has begun pursuant to the provisions of in accordance with section 401(a)(9) of the Internal Revenue Code and the accompanying regulations, and the member dies, any survivor benefits will be distributed at least as rapidly as under the plan of payment selected and effective as of the date of the member's death.

(4)    If a member dies before the distribution of the member's interest has begun pursuant to the provisions of in accordance with section 401(a)(9) of the Internal Revenue Code and the accompanying regulations, the entire interest of the member will be distributed within five years after the death of such member. However, if a benefit is payable to or for the benefit of a beneficiary within the meaning of section 401(a)(9) of the Internal Revenue Code, the benefit may be distributed (in accordance with applicable regulations) over the life of such beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), provided that such distributions begin not later than one year after the date of the member's death. If the beneficiary is the surviving spouse of the member, distributions shall not be required, pursuant to this section, to begin until the date on end of the calendar year in which the member would have attained age seventy and one-half.

(5)    Any death benefit amounts payable under Chapter 145. of the Revised Code must comply with the incidental death benefit requirements of section 401(a)(9)(G) of the Internal Revenue Code and regulations thereunder.

(6) The final regulations under section 401(a)(9) of the Internal Revenue Code issued December 29, 2004 shall apply to all plan years commencing on and after January 1, 2006.

(F)    Whenever the amount of any benefit is to be determined on the basis of actuarial assumptions, the assumptions shall be specified by resolution of the board in a way that precludes employer discretion.

Effective:     CERTIFIED ELECTRONICALLY	04/01/2008
Certification
03/24/2008
Date
Promulgated Under:	111.15
Statutory Authority:	145.09
Rule Amplifies: Prior Effective Dates:	145.09 1/1/03, 3/22/02, 12/27/01 (Emer.).