Missouri Revised Statutes













Chapter 86

Police Relief and Pension Systems

←86.254

Section 86.255.1

86.256→

August 28, 2015

Eligible rollover distribution payable, election to pay directly to plan--definitions--written explanation required by board, when--distribution made, when--prohibition on eligible rollover distributions to certain members, exception.

86.255. 1. Notwithstanding any other provision of the plan

established in sections 86.200 to 86.366, if an eligible rollover

distribution becomes payable to a distributee, the distributee may elect,

at the time and in the manner prescribed by the board of trustees, to have

any of the eligible rollover distribution paid directly to an eligible

retirement plan specified by the distributee in a direct rollover.



2. For purposes of this section, the following terms mean:



(1) "Direct rollover", a payment by the board of trustees from the

fund to the eligible retirement plan specified by the distributee;



(2) "Distributee", a member, a surviving spouse, a spouse, or former

spouse who is the alternate payee under a qualified domestic relations

order, as defined in Section 414(p) of the Internal Revenue Code of 1986,

as amended, or, effective for distributions made on or after January 1,

2010, a nonspouse beneficiary;



(3) "Eligible retirement plan", an individual retirement account

described in Section 408(a) of the Internal Revenue Code, an individual

retirement annuity described in Section 408(b) of the Internal Revenue

Code, or a qualified trust described in Section 401(a) of the Internal

Revenue Code that accepts the distributee's eligible rollover distribution

or, effective for eligible rollover distributions made on or after January

1, 2002, an annuity contract described in Section 403(b) of the Internal

Revenue Code or an eligible plan under Section 457(b) of the Internal

Revenue Code which is maintained by a state, political subdivision of a

state, or any agency or instrumentality of a state or political subdivision

of a state and which agrees to separately account for amounts transferred

into such plan from this plan, and shall include, for eligible rollover

distributions made on or after January 1, 2002, a distribution to a

surviving spouse or to a spouse or former spouse who is the alternate payee

under a qualified domestic relations order, as defined in Section 414(p) of

the Internal Revenue Code. Effective for distributions made on or after

January 1, 2008, eligible retirement plan shall also include a Roth IRA as

described in Section 408 of the Internal Revenue Code of 1986, as amended,

provided that for distributions made on or after January 1, 2010, to a

nonspouse beneficiary, an eligible retirement plan shall include only an

individual retirement account described in Section 408(a) of the Internal

Revenue Code of 1986, as amended, an individual retirement annuity

described in Section 408(b) of the Internal Revenue Code of 1986, as

amended, or a Roth IRA described in Section 408A of the Internal Revenue

Code of 1986, as amended, that is an inherited individual retirement

account or annuity under Section 408 of the Internal Revenue Code of 1986,

as amended;



(4) "Eligible rollover distribution", any distribution of all or any

portion of a member's benefit, other than:



(a) A distribution that is one of a series of substantially equal

periodic payments, made not less frequently than annually, for the life or

life expectancy of the distributee or for the joint lives or joint life

expectancies of the distributee and the distributee's designated

beneficiary, or for a specified period of ten years or more;



(b) The portion of a distribution that is required under Section

401(a)(9) of the Internal Revenue Code; or



(c) Effective for distributions made on or after January 1, 2002, a

portion of a distribution shall not fail to be an eligible rollover

distribution merely because the portion consists of after-tax employee

contributions which are not includable in gross income. However, for

distributions made before January 1, 2007, such portion may be transferred

only to an individual retirement account or annuity described in Section

408(a) or (b) of the Internal Revenue Code, or to a qualified defined

contribution plan described in Section 401(a) or 403(a) of the Internal

Revenue Code that agrees to separately account for amounts so transferred,

including to separately account for the portion of such distribution which

is includable in gross income and the portion that is not so includable;

for distributions made on or after January 1, 2007, such portion may also

be transferred to an annuity contract described in Section 403(b) of the

Internal Revenue Code of 1986, as amended, or to a qualified defined

benefit plan described in Section 401(a) of the Internal Revenue Code of

1986, as amended, that agrees to separately account for amounts so

transferred, including to separately account for the portion of such

distribution which is includable in gross income and the portion that is

not so includable; and for distributions made on or after January 1, 2008,

such portion may also be transferred to a Roth IRA described in Section

408A of the Internal Revenue Code of 1986, as amended.



3. The board of trustees shall, at least thirty days, but not more

than ninety days, before making an eligible rollover distribution, provide

a written explanation to the distributee in accordance with the

requirements of Section 402(f) of the Internal Revenue Code.



4. If the eligible rollover distribution is not subject to Sections

401(a) and 417 of the Internal Revenue Code, such eligible rollover

distribution may be made less than thirty days after the distributee has

received the notice described in subsection 3 of this section, provided

that:



(1) The board of trustees clearly informs the distributee of the

distributee's right to consider whether to elect a direct rollover, and if

applicable, a particular distribution option, for at least thirty days

after the distributee receives the notice; and



(2) The distributee, after receiving the notice, affirmatively elects

a distribution.



5. Notwithstanding any provision of sections 86.200 to 86.366 to the

contrary, in no event shall the trustees pay an eligible rollover

distribution in the amount of five thousand dollars or less to a member or

retired member who has not attained age sixty-two unless such member or

retired member consents in writing either to receive such distribution in

cash or to have such distribution directly rolled over in accordance with

the provisions of this section.



(L. 1995 H.B. 260, et al. § 2, A.L. 2000 H.B. 1808, A.L. 2002 H.B.

1455, A.L. 2006 S.B. 871, A.L. 2011 H.B. 358)





2006

2002

2000



2006



86.255. 1. Notwithstanding any other provision of the plan established

in sections 86.200 to 86.366, if an eligible rollover distribution becomes

payable to a distributee, the distributee may elect, at the time and in the

manner prescribed by the board of trustees, to have any of the eligible

rollover distribution paid directly to an eligible retirement plan specified

by the distributee in a direct rollover.



2. For purposes of this section, the following terms mean:



(1) "Direct rollover", a payment by the board of trustees from the fund

to the eligible retirement plan specified by the distributee;



(2) "Distributee", a member, a surviving spouse or a spouse;



(3) "Eligible retirement plan", an individual retirement account

described in Section 408(a) of the Internal Revenue Code, an individual

retirement annuity described in Section 408(b) of the Internal Revenue Code,

or a qualified trust described in Section 401(a) of the Internal Revenue Code

that accepts the distributee's eligible rollover distribution or, effective

for eligible rollover distributions made on or after January 1, 2002, an

annuity contract described in Section 403(b) of the Internal Revenue Code or

an eligible plan under Section 457(b) of the Internal Revenue Code which is

maintained by a state, political subdivision of a state, or any agency or

instrumentality of a state or political subdivision of a state and which

agrees to separately account for amounts transferred into such plan from this

plan, and shall include, for eligible rollover distributions made on or after

January 1, 2002, a distribution to a surviving spouse or to a spouse or

former spouse who is the alternate payee under a qualified domestic relations

order, as defined in Section 414(p) of the Internal Revenue Code;



(4) "Eligible rollover distribution", any distribution of all or any

portion of a member's benefit, other than:



(a) A distribution that is one of a series of substantially equal

periodic payments, made not less frequently than annually, for the life or

life expectancy of the distributee or for the joint lives or joint life

expectancies of the distributee and the distributee's designated beneficiary,

or for a specified period of ten years or more;



(b) The portion of a distribution that is required under Section

401(a)(9) of the Internal Revenue Code; or



(c) Effective for distributions made on or after January 1, 2002, a

portion of a distribution shall not fail to be an eligible rollover

distribution merely because the portion consists of after-tax employee

contributions which are not includable in gross income. However, such

portion may be transferred only to an individual retirement account or annuity

described in Section 408(a) or (b) of the Internal Revenue Code, or to a

qualified defined contribution plan described in Section 401(a) or 403(a) of

the Internal Revenue Code that agrees to separately account for amounts so

transferred, including to separately account for the portion of such

distribution which is includable in gross income and the portion that is not

so includable.



3. The board of trustees shall, at least thirty days, but not more than

ninety days, before making an eligible rollover distribution, provide a

written explanation to the distributee in accordance with the requirements of

Section 402(f) of the Internal Revenue Code.



4. If the eligible rollover distribution is not subject to Sections

401(a) and 417 of the Internal Revenue Code, such eligible rollover

distribution may be made less than thirty days after the distributee has

received the notice described in subsection 3 of this section, provided that:



(1) The board of trustees clearly informs the distributee of the

distributee's right to consider whether to elect a direct rollover, and if

applicable, a particular distribution option, for at least thirty days after

the distributee receives the notice; and



(2) The distributee, after receiving the notice, affirmatively elects a

distribution.



5. Notwithstanding any provision of sections 86.200 to 86.366 to the

contrary, in no event shall the trustees pay an eligible rollover

distribution in the amount of five thousand dollars or less to a member or

retired member who has not attained age sixty-two unless such member or

retired member consents in writing either to receive such distribution in cash

or to have such distribution directly rolled over in accordance with the

provisions of this section.



2002



86.255. 1. Notwithstanding any other provision of the plan

established in sections 86.200 to 86.366, if an eligible rollover

distribution becomes payable to a distributee, the distributee may elect,

at the time and in the manner prescribed by the board of trustees, to have

any of the eligible rollover distribution paid directly to an eligible

retirement plan specified by the distributee in a direct rollover.



2. For purposes of this section, the following terms mean:



(1) "Direct rollover", a payment by the board of trustees from the

fund to the eligible retirement plan specified by the distributee;



(2) "Distributee", a member, a surviving spouse or a spouse;



(3) "Eligible retirement plan", an individual retirement account

described in Section 408(a) of the Internal Revenue Code, an individual

retirement annuity described in Section 408(b) of the Internal Revenue

Code, or a qualified trust described in Section 401(a) of the Internal

Revenue Code that accepts the distributee's eligible rollover distribution

or, effective for eligible rollover distributions made on or after January

1, 2002, an annuity contract described in Section 403(b) of the Internal

Revenue Code or an eligible plan under Section 457(b) of the Internal

Revenue Code which is maintained by a state, political subdivision of a

state, or any agency or instrumentality of a state or political subdivision

of a state and which agrees to separately account for amounts transferred

into such plan from this plan, and shall include, for eligible rollover

distributions made on or after January 1, 2002, a distribution to a

surviving spouse or to a spouse or former spouse who is the alternate payee

under a qualified domestic relations order, as defined in Section 414(p) of

the Internal Revenue Code;



(4) "Eligible rollover distribution", any distribution of all or any

portion of a member's benefit, other than:



(a) A distribution that is one of a series of substantially equal

periodic payments, made not less frequently than annually, for the life or

life expectancy of the distributee or for the joint lives or joint life

expectancies of the distributee and the distributee's designated

beneficiary, or for a specified period of ten years or more;



(b) The portion of a distribution that is required under Section

401(a)(9) of the Internal Revenue Code; or



(c) Effective for distributions made on or after January 1, 2002, a

portion of a distribution shall not fail to be an eligible rollover

distribution merely because the portion consists of after-tax employee

contributions which are not includable in gross income. However, such

portion may be transferred only to an individual retirement account or

annuity described in Section 408(a) or (b) of the Internal Revenue Code, or

to a qualified defined contribution plan described in Section 401(a) or

403(a) of the Internal Revenue Code that agrees to separately account for

amounts so transferred, including to separately account for the portion of

such distribution which is includable in gross income and the portion that

is not so includable.



3. The board of trustees shall, at least thirty days, but not more

than ninety days, before making an eligible rollover distribution, provide

a written explanation to the distributee in accordance with the

requirements of Section 402(f) of the Internal Revenue Code.



4. If the eligible rollover distribution is not subject to Sections

401(a) and 417 of the Internal Revenue Code, such eligible rollover

distribution may be made less than thirty days after the distributee has

received the notice described in subsection 3 of this section, provided

that:



(1) The board of trustees clearly informs the distributee of the

distributee's right to consider whether to elect a direct rollover, and if

applicable, a particular distribution option, for at least thirty days

after the distributee receives the notice; and



(2) The distributee, after receiving the notice, affirmatively elects

a distribution.



2000



86.255. 1. Notwithstanding any other provision of the plan

established in sections 86.200 to 86.366, if an eligible rollover

distribution becomes payable to a distributee, the distributee may elect,

at the time and in the manner prescribed by the board of trustees, to have

any of the eligible rollover distribution paid directly to an eligible

retirement plan specified by the distributee in a direct rollover.



2. For purposes of this section, the following terms mean:



(1) "Direct rollover", a payment by the board of trustees from the

fund to the eligible retirement plan specified by the distributee;



(2) "Distributee", a member, a surviving spouse or a spouse;



(3) "Eligible retirement plan", an individual retirement account

described in Section 408(a) of the Internal Revenue Code, an individual

retirement annuity described in Section 408(b) of the Internal Revenue

Code, or a qualified trust described in Section 401(a) of the Internal

Revenue Code that accepts the distributee's eligible rollover distribution;



(4) "Eligible rollover distribution", any distribution of all or any

portion of a member's benefit, other than:



(a) A distribution that is one of a series of substantially equal

periodic payments, made not less frequently than annually, for the life or

life expectancy of the distributee or for the joint lives or joint life

expectancies of the distributee and the distributee's designated

beneficiary, or for a specified period of ten years or more;



(b) The portion of a distribution that is required under Section

401(a)(9) of the Internal Revenue Code; or



(c) The portion of any distribution that is not includable in gross

income.



3. The board of trustees shall, at least thirty days, but not more

than ninety days, before making an eligible rollover distribution, provide

a written explanation to the distributee in accordance with the

requirements of Section 402(f) of the Internal Revenue Code.



4. If the eligible rollover distribution is not subject to Sections

401(a) and 417 of the Internal Revenue Code, such eligible rollover

distribution may be made less than thirty days after the distributee has

received the notice described in subsection 3 of this section, provided

that:



(1) The board of trustees clearly informs the distributee of the

distributee's right to consider whether to elect a direct rollover, and if

applicable, a particular distribution option, for at least thirty days

after the distributee receives the notice; and



(2) The distributee, after receiving the notice, affirmatively elects

a distribution.



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