43-406. Extension of withholding to premature
withdrawals of state and local government retirement
contributions
For the purposes of this title and except for eligible rollover distributions
transferred to an eligible retirement plan pursuant to section 401(a)(31) of the internal
revenue code, amounts withdrawn from the state retirement system, the elected officials'
retirement plan or a county or city retirement plan by an employee upon termination of
employment prior to retirement shall be treated as if the withdrawn amounts are payment
of wages by an employer to an employee and shall be subject to withholding. The amount
withheld by the retirement plan or system at the time of withdrawal shall be equal to
five per cent of the total amount withdrawn.
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