Section 2700.700  Distribution Events

a)         Distributions under this Plan will be made in accordance with the regulations under section 401(a)(9) of the Code (26 CFR 54 (2005)).  The provisions reflecting section 401(a)(9) override any distribution options in the Plan inconsistent with section 401(a)(9).

b)         A Participant's Deferred Compensation Account may begin to be distributed 30 days after the date of one of the following events:.

1)         Severance from Employment,

2)         Death, or

3)         Delayed Distribution Date.

c)         A Participant's Deferred Compensation Account may begin to be distributed as soon as possible but not later than 30 days after determination of an Unforeseeable Emergency by the Hardship Committee.

d)         A Participant, with $5,000 or less in his or her Deferred Compensation Account, may elect to cash out the Account in compliance with conditions specified in Section 2700.735 of this Part.

e)         No distributions will be made to a Participant who is employed as an independent contractor before a date that is at least 12 months after the day on which his or her employment contract expires.  Should the independent contractor be re-employed by the State as either an Employee or independent contractor during the 12-month waiting period, no distribution will be started on the projected distribution date. If the contractor has attained age 70½ at the time the contract is terminated, the 12-month waiting period is waived.

f)          Participants are responsible for notifying the Department of their Termination of Service.

g)         Beneficiaries are responsible for notifying the Department of the death of the Participant and supplying the Department with a certified copy of the Death Certificate.

h)                  A Participant who does not receive the initial distribution until the calendar year following the year in which he or she reaches age 70½ or separates, if he or she works past age 70½, will receive at least 2 taxable distributions in the same year.

i)          If a Participant has a separate account attributable to rollover contributions to the Plan, the Participant may at any time elect to receive a distribution of all or any portion of the amount held in the rollover account.

j)          An alternate payee, pursuant to the terms of a qualified domestic relations order, may at any time elect to receive a distribution of all or any portion of the amount held and maintained on behalf of the alternate payee upon the proper execution and designation under the qualified domestic relations order.

(Source:  Amended at 30 Ill. Reg. 8408, effective April 21, 2006)