Montana Code 19-20-1003. Payment of death benefits
19-20-1003. Payment of death benefits. (1) Death benefits paid from the system are subject to the requirements of this section.
Terms Used In Montana Code 19-20-1003
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Internal Revenue Code: has the meaning provided in 15-30-2101. See Montana Code 19-20-101
- Joint annuitant: means the one person that a retired member who has elected an optional allowance under 19-20-702(2), (4), or (5) has designated to receive a retirement allowance upon the death of the retired member. See Montana Code 19-20-101
- Member: means a person who has an individual account in the annuity savings account. See Montana Code 19-20-101
(2)Death benefits must be distributed in accordance with section 401(a)(9) of the Internal Revenue Code and the regulations adopted under that section.
(3)The amount of benefits payable to a retired member‘s beneficiary or joint annuitant may not exceed the maximum determined under the incidental death benefit requirements of the Internal Revenue Code.
(4)If the member dies before retirement benefits commence and a benefit is payable pursuant to 19-20-1001, distributions to the member’s beneficiaries must begin as soon as administratively feasible and must begin no later than December 31 of the calendar year immediately following the calendar year in which the member died. If the beneficiary has not elected the form of payment by the date on which the beneficiary is to receive the benefit and the beneficiary is eligible for a monthly benefit, the benefit must be paid as provided in 19-20-702(3)(a)(i) or a lump sum must be paid if that is the only benefit due the beneficiary.