Added by Stats. 1998, Ch. 820, Sec. 11. Effective September 25, 1998.
(a)Upon separation from all service for the employer for any reason other than death, disability, or retirement, a participant is entitled to a lump-sum distribution of the balance of his or her account as of the first valuation date immediately following the date of the application.
(b)Application for a distribution for termination of employment shall be made on an application form prescribed by the board. Any participant who is entitled to a distribution that equals or exceeds five thousand dollars ($5,000), may elect on the application form to receive the distribution in one of the following forms:
(1)A single lump-sum payment.
(2)Substantially level installment payments for a period of years that extends no longer than the life expectancy of the participant.
(c)The employer shall certify on a form prescribed by the board that the participant’s employment has terminated.
(d)No partial distribution shall be made from the participant’s account.
(e)The participant is deemed to have permanently waived all rights to a retirement benefit when the distribution becomes effective.
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Other sections in Chapter 11 - Benefits