97B.48 PAYMENT OF ALLOWANCES.
1. Retirement allowances shall be paid monthly, except that, if
an allowance of less than six hundred dollars a year is payable
pursuant to section 97B.51, subsection 1, paragraph "b", the
member's retirement benefit shall be paid as a lump sum in an amount
equal to the sum of the member's and employer's accumulated
contributions and the retirement dividends standing to the member's
credit before December 31, 1966. Receipt of the lump sum payment by
a member shall terminate any and all entitlement for the period of
service covered of the member under this chapter and the member shall
not be eligible to buy back the period of service.
2. The first monthly payment of a retirement allowance shall be
paid as of the member's first month of entitlement. The payments
shall be continued thereafter for the lifetime of the retired member
except as provided in section 97B.48A.
3. On or before the first of the month in which a member attains
the age of seventy years, the system shall provide written
notification to each member for whom the system has an address that
the member may commence receiving a retirement allowance regardless
of the member's employment status. Prior to receiving a retirement
allowance pursuant to this subsection, a member shall acknowledge in
writing that the member was informed by the system of the
consequences of electing to receive a retirement allowance pursuant
to this subsection and that receipt of a retirement allowance under
this subsection is optional. Upon termination from employment of a
member receiving a retirement allowance pursuant to this subsection,
the member is entitled to have the member's monthly retirement
allowance recalculated using the applicable formula for determining a
retirement allowance pursuant to sections 97B.49A through 97B.49G, as
applicable, in place at the time of the member's first month of
entitlement.
4. Payment of a member's retirement allowance pursuant to
sections 97B.49A through 97B.49H shall commence no later than the
required beginning date specified under section 401(a)(9) of the
federal Internal Revenue Code regardless of whether the member has
submitted the appropriate notice to receive an allowance. If the
lump sum actuarial equivalent under subsection 1 could have been
selected by the member, payments shall be made in a lump sum rather
than as a monthly allowance.
5. Effective on such date as the system determines by rule, but
in no event later than July 1, 2006, if the system determines that
the lump sum amount payable to a living member who has had a break in
service or to a beneficiary of a deceased member is less than the
current maximum amount prescribed by the internal revenue service
that may be distributed without triggering automatic rollover rights,
the lump sum amount payable under this chapter shall be paid to the
living member or beneficiary in full satisfaction of all rights of
the member or beneficiary to receive any payments under the system.
For purposes of this section, a "break in service" means twenty
consecutive calendar quarters in which no wages are reported to the
system. The lump sum payment shall be made within one hundred eighty
days after the calendar quarter in which the member completes a break
in service or dies, whichever is applicable. A member or beneficiary
who receives a mandatory distribution under this subsection shall
have sixty days to return the distribution to the system and restore
the member's or beneficiary's account.
6. Effective July 1, 2005, monthly retirement allowance payments
shall be directly deposited without charge to a retired member's
account via electronic funds transfer. A retired member may elect to
receive monthly allowance payments as paper warrants in lieu of
electronic funds transfers, but the system shall charge an
administrative fee for processing such paper warrants. However, the
system may, for good cause shown, waive the administrative fee. The
fee may be automatically deducted from the monthly retirement
allowance before the warrant is issued to the retired member.
97B.48 PAYMENT OF ALLOWANCES.
1. Retirement allowances shall be paid monthly, except that, if
an allowance of less than six hundred dollars a year is payable
pursuant to section 97B.51, subsection 1, paragraph "b", the
member's retirement benefit shall be paid as a lump sum in an amount
equal to the sum of the member's and employer's accumulated
contributions and the retirement dividends standing to the member's
credit before December 31, 1966. Receipt of the lump sum payment by
a member shall terminate any and all entitlement for the period of
service covered of the member under this chapter and the member shall
not be eligible to buy back the period of service.
2. The first monthly payment of a retirement allowance shall be
paid as of the member's first month of entitlement. The payments
shall be continued thereafter for the lifetime of the retired member
except as provided in section 97B.48A.
3. On or before the first of the month in which a member attains
the age of seventy years, the system shall provide written
notification to each member for whom the system has an address that
the member may commence receiving a retirement allowance regardless
of the member's employment status. Prior to receiving a retirement
allowance pursuant to this subsection, a member shall acknowledge in
writing that the member was informed by the system of the
consequences of electing to receive a retirement allowance pursuant
to this subsection and that receipt of a retirement allowance under
this subsection is optional. Upon termination from employment of a
member receiving a retirement allowance pursuant to this subsection,
the member is entitled to have the member's monthly retirement
allowance recalculated using the applicable formula for determining a
retirement allowance pursuant to sections 97B.49A through 97B.49G, as
applicable, in place at the time of the member's first month of
entitlement.
4. Payment of a member's retirement allowance pursuant to
sections 97B.49A through 97B.49H shall commence no later than the
required beginning date specified under section 401(a)(9) of the
federal Internal Revenue Code regardless of whether the member has
submitted the appropriate notice to receive an allowance. If the
lump sum actuarial equivalent under subsection 1 could have been
selected by the member, payments shall be made in a lump sum rather
than as a monthly allowance.
5. Effective on such date as the system determines by rule, but
in no event later than July 1, 2006, if the system determines that
the lump sum amount payable to a living member who has had a break in
service or to a beneficiary of a deceased member is less than the
current maximum amount prescribed by the internal revenue service
that may be distributed without triggering automatic rollover rights,
the lump sum amount payable under this chapter shall be paid to the
living member or beneficiary in full satisfaction of all rights of
the member or beneficiary to receive any payments under the system.
For purposes of this section, a "break in service" means twenty
consecutive calendar quarters in which no wages are reported to the
system. The lump sum payment shall be made within one hundred eighty
days after the calendar quarter in which the member completes a break
in service or dies, whichever is applicable. A member or beneficiary
who receives a mandatory distribution under this subsection shall
have sixty days to return the distribution to the system and restore
the member's or beneficiary's account.
6. Effective July 1, 2005, monthly retirement allowance payments
shall be directly deposited without charge to a retired member's
account via electronic funds transfer. A retired member may elect to
receive monthly allowance payments as paper warrants in lieu of
electronic funds transfers, but the system shall charge an
administrative fee for processing such paper warrants. However, the
system may, for good cause shown, waive the administrative fee. The
fee may be automatically deducted from the monthly retirement
allowance before the warrant is issued to the retired member.
97B.48 PAYMENT OF ALLOWANCES.
1. Retirement allowances shall be paid monthly, except that, if
an allowance of less than six hundred dollars a year is payable
pursuant to section 97B.51, subsection 1, paragraph "b", the
member's retirement benefit shall be paid as a lump sum in an amount
equal to the sum of the member's and employer's accumulated
contributions and the retirement dividends standing to the member's
credit before December 31, 1966. Receipt of the lump sum payment by
a member shall terminate any and all entitlement for the period of
service covered of the member under this chapter and the member shall
not be eligible to buy back the period of service.
2. The first monthly payment of a retirement allowance shall be
paid as of the member's first month of entitlement. The payments
shall be continued thereafter for the lifetime of the retired member
except as provided in section 97B.48A.
3. On or before the first of the month in which a member attains
the age of seventy years, the system shall provide written
notification to each member for whom the system has an address that
the member may commence receiving a retirement allowance regardless
of the member's employment status. Prior to receiving a retirement
allowance pursuant to this subsection, a member shall acknowledge in
writing that the member was informed by the system of the
consequences of electing to receive a retirement allowance pursuant
to this subsection and that receipt of a retirement allowance under
this subsection is optional. Upon termination from employment of a
member receiving a retirement allowance pursuant to this subsection,
the member is entitled to have the member's monthly retirement
allowance recalculated using the applicable formula for determining a
retirement allowance pursuant to sections 97B.49A through 97B.49G, as
applicable, in place at the time of the member's first month of
entitlement.
4. Payment of a member's retirement allowance pursuant to
sections 97B.49A through 97B.49H shall commence no later than the
required beginning date specified under section 401(a)(9) of the
federal Internal Revenue Code regardless of whether the member has
submitted the appropriate notice to receive an allowance. If the
lump sum actuarial equivalent under subsection 1 could have been
selected by the member, payments shall be made in a lump sum rather
than as a monthly allowance.
5. Effective on such date as the system determines by rule, but
in no event later than July 1, 2006, if the system determines that
the lump sum amount payable to a living member who has had a break in
service or to a beneficiary of a deceased member is less than the
current maximum amount prescribed by the internal revenue service
that may be distributed without triggering automatic rollover rights,
the lump sum amount payable under this chapter shall be paid to the
living member or beneficiary in full satisfaction of all rights of
the member or beneficiary to receive any payments under the system.
For purposes of this section, a "break in service" means twenty
consecutive calendar quarters in which no wages are reported to the
system. The lump sum payment shall be made within one hundred eighty
days after the calendar quarter in which the member completes a break
in service or dies, whichever is applicable. A member or beneficiary
who receives a mandatory distribution under this subsection shall
have sixty days to return the distribution to the system and restore
the member's or beneficiary's account.
6. Effective July 1, 2005, monthly retirement allowance payments
shall be directly deposited without charge to a retired member's
account via electronic funds transfer. A retired member may elect to
receive monthly allowance payments as paper warrants in lieu of
electronic funds transfers, but the system shall charge an
administrative fee for processing such paper warrants. However, the
system may, for good cause shown, waive the administrative fee. The
fee may be automatically deducted from the monthly retirement
allowance before the warrant is issued to the retired member.
