Section 5-723.03 - Required minimum distributions(a) Distributions shall begin no later than the member's required beginning date, as defined in section 401(a)(9) of the Internal Revenue Code of 1986, and shall be made in accordance with all other requirements of section 401(a)(9) of the Internal Revenue Code of 1986. The provisions of this section shall apply for the purposes of determining minimum required distributions under section 401(a)(9) of the Internal Revenue Code of 1986 and take precedence over any inconsistent provisions of this subchapter; provided, that these provisions are intended solely to reflect the requirements of section 401(a)(9) of the Internal Revenue Code of 1986 and accompanying Treasury regulations and are not intended to provide or expand, and shall not be construed as providing or expanding, a benefit or distribution option not otherwise expressly provided for under the terms of this subchapter. The provisions of this section shall apply only to the extent required under section 401(a)(9) of the Internal Revenue Code of 1986 as applied to a governmental plan, and if special rules for governmental plans are not set forth herein, the special rules are incorporated by reference and shall for all purposes be deemed a part of this subchapter.(b)(1) The member's entire interest shall be distributed or begin being distributed to the member no later than April 1 following the later of: (A) The calendar year in which the member attains age 70 1/2; or(B) The calendar year in which the member retires or terminates employment (the "required beginning date").(2) If the member dies before distributions begin, the member's entire interest shall be distributed, or will begin to be distributed, no later than as follows:(A) If the member's surviving spouse is the sole designated beneficiary, distributions to the surviving spouse shall begin by December 31 of the calendar year immediately following the calendar year in which the member died, or by December 31 of the calendar year in which the member would have attained age 70 1/2, if later;(B) If the member's surviving spouse is not the sole designated beneficiary, distributions to the designated beneficiary shall begin by December 31 of the calendar year immediately following the calendar year in which the member died;(C) If there is no designated beneficiary as of September 30 of the year following the year of the member's death, the member's entire interest shall be distributed by December 31 of the calendar year of the 5th anniversary of the member's death;(D) If the member's surviving spouse is the sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, subparagraph (A) of this paragraph shall not apply, and subparagraphs (B) and (C) of this paragraph shall apply as if the surviving spouse were the member. For the purposes of this paragraph and subsection (d) of this section, distributions are considered to begin on the member's required beginning date or, if this subparagraph applies, the date distributions to the surviving spouse are required to begin under subparagraph (A) of this paragraph. If annuity payments to the member irrevocably commence before the member's required beginning date or to the member's surviving spouse before the date distributions to the surviving spouse are required to begin under subparagraph (A) of this paragraph, the date distributions are considered to begin is the date distributions actually commence.(3) Unless the member's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution, calendar year distributions will be made in accordance with subsections (c) and (d) of this section. If the member's interest is distributed in the form of an annuity purchased from an insurance company, distributions of the annuity will be made in accordance with the requirements of section 401(a)(9) of the Internal Revenue Code of 1986 and applicable Treasury regulations. Any part of the member's interest that is in the form of an individual account described in section 414(k) of the Internal Revenue Code of 1986 shall be distributed in a manner satisfying the requirements of section 401(a)(9) of the Internal Revenue Code of 1986 and the Treasury regulations that apply to individual accounts.(c)(1) The amount of the annuity is to be determined each year.(2) If the member's interest is paid in the form of annuity distributions, payments under the annuity shall satisfy the following requirements:(A) The annuity distributions shall be paid in periodic payments made at intervals not longer than one year;(B) Payments will either be non-increasing or increase only as follows: (i) By an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index based on prices of all items (the CPI-W) and issued by the Bureau of Labor Statistics;(ii) To provide cash refunds of employee contributions upon the teacher's death;(iii) To pay increased benefits that result from an amendment to this subchapter.(3) The amount that must be distributed on or before the member's required beginning date or, if the member dies before distributions begin, the date distributions are required to begin under subsection (b)(2)(A) or (B) of this section, is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received (for example, bi-monthly, monthly, semi-annually, or annually). All of the member's benefit accruals as of the last day of the first distribution calendar year shall be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the member's required beginning date.(4) Additional benefits accruing to the member in a calendar year after the first distribution calendar year shall be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.(d) Amounts payable if a member dies before distribution begins are subject to the following requirements:(1) If the member dies before the date of distribution of his or her interest begins and there is a designated beneficiary, the member's entire interest shall be distributed, beginning no later than the time described in subsection (b)(2)(A) or (B) of this section, over the life of the designated beneficiary not exceeding either of the following:(A) Unless the benefit commenced is before the first distribution calendar year, the life expectancy of the designated beneficiary, determined using the beneficiary's age as of the beneficiary's birthday in the calendar year immediately following the calendar year of the teacher's death; or(B) If the benefit commenced before the first distribution calendar year, the life expectancy of the designated beneficiary, determined using the beneficiary's age as of his or her birthday in the calendar year that begins before benefits commence; or(2) If the member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the member's death, distribution of the member's entire interest shall be completed by December 31 of the calendar year of the fifth anniversary of the member's death; or(3) If the member dies before the date distribution of his or her interest begins, the member's surviving spouse is the member's sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this subsection shall apply as if the surviving spouse were the member, except that the time by which distributions must begin shall be determined without regard to subsection (b)(2)(A) of this section.Sept. 1, 1916, 39 Stat. 718, ch. 433, § 12(n-3); as added May 1, 2013, D.C. Law 19-314, § 2(g), 60 DCR 3466.