N.Y. Comp. Codes R. & Regs. tit. 2 § 154.8

Current through Register Vol. 46, No. 50, December 11, 2024

Section 154.8 - Distributions

(a) A service award shall equal a participant's account balance as of the valuation date immediately succeeding application for distribution of the service award plus any unscheduled prior service contributions received by the administrator pursuant to section 154.7 of this Part. A service award shall be paid in the form of a lump sum distribution or in such other manner selected by the participant in his or her application for distribution of the service award as may be permitted by the terms and conditions of the program document.

(b) Except as otherwise provided in this section, a participant shall be entitled to apply for and receive distribution of a service award only when the participant has reached entitlement age.

(c) A service award shall be payable only after an application for distribution is filed with the administrator and the administrator approves the application, and shall be paid as soon as practicable following approval of the application and the valuation date next succeeding the date the application is received by the administrator. The administrator shall determine whether to approve an application based on the terms of the sponsor's adoption agreement, the records maintained by the administrator and, in the case of disability or death, such additional records or information as the administrator may require. The administrator, in its sole discretion, may require the sponsor, the appropriate volunteer fire company or volunteer fire department or the participant to verify or supply any information the administrator deems necessary to determine entitlement to distribution of a service award.

(d) In the event that a participant becomes totally and permanently disabled as certified by the workers' compensation board or by any other competent authority approved by the administrator, and the disability prevents the participant from pursuing his or her normal occupation, the participant shall be entitled to apply for and receive distribution of a service award regardless of whether the participant has reached entitlement age or has acquired a nonforfeitable right to a service award. If a State-administered defined contribution volunteer firefighter service award program includes an optional additional disability benefit that the sponsor has elected to provide for a participant who becomes disabled during the course of service as an active volunteer firefighter while actively engaged in providing a line of duty service, then, in the event that a participant becomes totally and permanently disabled as a result of such cause and such total and permanent disability is certified by the workers' compensation board or by any other competent authority approved by the administrator, the participant shall be entitled to apply for and receive distribution of such optional additional disability benefit in the form of a monthly payment for life in the amount stated in the referendum authorizing such benefit.

(e) In the event of the death of a participant who has acquired a nonforfeitable right to a service award and who has not previously received distribution of all or any portion of a service award, the beneficiary or beneficiaries designated by the participant or, if no beneficiary has been designated, the participant's estate, shall be entitled to apply for and receive distribution of the participant's service award regardless of whether the participant had reached entitlement age before death. If a participant dies after receiving distribution of less than the full amount of the service award, the remaining portion, if any, shall be paid in accordance with the distribution option selected by the participant in his or her application for distribution of the service award made pursuant to this section. If a State-administered defined contribution volunteer firefighter service award program includes an optional additional death benefit that the sponsor has elected to provide for a participant who dies during the course of service as an active volunteer firefighter while actively engaged in providing a line of duty service, then, in the event that a participant dies as a result of such cause, the beneficiary or beneficiaries designated by the participant or, if no beneficiary has been designated, the participant's estate, shall be entitled to apply for and receive distribution of such additional optional death benefit in the amount stated in the referendum authorizing such benefit.

(f) In the event that the sponsor has elected to pay prior service contributions in installments as provided in section 154.7 of this Part and the administrator determines that a participant is eligible for a distribution of a service award prior to the payment of all annual installments of the participant's prior service contribution, the administrator shall promptly notify the sponsor of the amount of the unscheduled prior service contribution which must be paid to the administrator.

N.Y. Comp. Codes R. & Regs. Tit. 2 § 154.8