MMC Benefits Handbook
How Benefits Are Paid
Distribution Options
If your Vested account balance exceeds $1,000, the following forms are available:
Reason for leaving
|
Payment forms
|
Retirement or termination of employment with the Company and all affiliated employers on or after age 55 with five or more years of vesting service
|
You may elect:
Installment payments are monthly, quarterly, semi-annual or annual and cannot exceed your life expectancy.
|
Disability / Termination before age 55 with 5 or more years of vesting service or;
Disability/Termination on or after age 55 with less than 5 years of vesting service
|
Lump sum is the only permissible distribution form.
|
Death
|
If your account balance is more than $1,000, your Beneficiary may take an immediate distribution or leave the account in the Plan. The maximum period your beneficiary may leave the account in the Plan depends on whether or not your beneficiary is your surviving spouse.
If your beneficiary is your surviving spouse, he or she may:
If your beneficiary is not your surviving spouse, he or she may:
If your account balance is $1,000 or less, your account balance will be distributed automatically and applicable taxes withheld, unless your beneficiary is eligible for and makes a direct rollover or another distribution election.
|
If you were already receiving installments before your death, beneficiary may elect any of the following payment options upon your death:
- Lump sum payment payable to your beneficiary;
- Lump sum payment payable to your beneficiary's inherited IRA with a rollover institution; or
- Installment distributions as follows:
- If your date of death was after December 31, 2019, an individual non-spouse beneficiary can elect installments at any frequency (monthly, quarterly, semi-annual or annual) ending no later than 10 years following the date of your death. The beneficiary would make a separate installment election rather than continuing your original installments. A spousal beneficiary can continue installments over the period that you originally elected.
- If your date of death was before January 1, 2020, an individual beneficiary can continue installments over the period you originally elected. New installment elections would not be permitted.
- If you have a non-individual beneficiary, the beneficiary can continue installments over the period that you originally elected. However, if you died before April 1st of the calendar year following the calendar year in which you would have attained age 72 (if you were born after June 30, 1949) or age 70-1/2 (if you were born before July 1, 1949), these installments will end no later than 5 years following the date of your death. New installment elections would not be permitted.
Participants who previously elected installments may elect a lump sum distribution at any time by submitting a Benefit Distribution Form.