2023-02-22 CC Packet - REVISED - Laserfiche WebLink

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account distribution ACCOUNT VALUE Your DCP account balance is determined based on your investment selections and market conditions. Interest paid by the money market and fixed interest funds is reinvested in additional shares of the respective accounts. Interest and dividends earned by the stocks and bonds held in the other five accounts are used to purchase additional stocks and bonds in those accounts. These purchases and the gains and losses in market value of the securities held in the accounts are reflected in the value of the accounts' shares, much like a mutual fund. PERA and the State of Minnesota cannot guarantee that the value of an account will not decrease to a level below that originally paid for the shares. BENEFIT OPTIONS You are eligible to withdraw your DCP account after the termination of DCP—covered employment, approval of disability, or your death. TERMINATION OF EMPLOYMENT As a DCP participant, you are entitled to a distribution of the value of shares held in the account after the termi- nation of DCP-covered employment*. Members who are actively employed by the DCP—covered employer are not eligible for a distribution, even if they have ceased contrib- uting to the plan. •------------------------------------------------ Exception: If you are age 65 or older, stay employed by a public employer, and have an account balance of at least $5,000, you may elect to take a partial or total distribution once per calendar year. The minimum distribution is $5,000. ---------------------------- - - DISABILITY Participants who qualify for permanent disability under Minnesota statutes governing PERA have the option of receiving monthly payments or a lump -sum distribution. Monthly payments must be in $100 increments. The benefit ends when the disability status ends or when the account is depleted, whichever is sooner. DEATH BENEFIT If you die prior to receiving the balance of your DCP account, the value is payable to your designated beneficia- ries. If you did not designate a beneficiary, payment of the account would be made to your spouse. If you do not have a spouse, your account will be payable to your estate. Upon notification of your death, PERA will mail distribution forms to the named beneficiaries or estate representative. PERA will issue the death benefit once we receive the distribution form and a copy of the member's death certificate. LOAN AND HARDSHIP PROVISIONS There are no loan or hardship provisions for this plan. *Participating ambulance service personnel who change employment or membership among Participating ambulance services shall continue participation in the plan if termination from one participating ambulance service and commencement in another participating ambulance service occurs within 30 days. DCP DISTRIBUTION Your DCP account is payable as a lump sum between 30 and 120 days after PERA receives your completed application. The length of time to receive your distribution may vary depending on when PERA obtains your remain- ing payroll transactions. Your DCP withdrawal can be paid: ✓ directly to you, V direct rollover to another tax -qualified plan, Vtransfer to an insurance company licensed in Minnesota If you elect a direct rollover or transfer to a private -sec- tor financial institutions, they may allow different payout options (including annuities). PERA cannot provide financial advice on which distribution option to elect, nor recom- mend a financial institution for direct rollover or transfer. If you terminated employment and wish to elect a distri- bution, please complete the Application for Refund, Direct Rollover, or Trust Transfer form, located at mnpera.org. If you are over 65, wish to continue working, and have a DCP account balance over $5,000, please complete the De fined Contribution Plan Withdrawal for Active Employees Age 65 or Older Refund, Direct Rollover, or Trust Transfer form. Please contact a PERA Service Representative to request disability information and application paperwork. If you are actively contributing to another Minnesota public pension plan, such as the General Plan, but are no longer employed in the position in which you contributed to DCP, you are eligible to take a distribution from your 5