Montana Code 19-9-1208. Distribution of DROP benefit
19-9-1208. Distribution of DROP benefit. (1) Upon termination of service, a participant is entitled to:
Terms Used In Montana Code 19-9-1208
- DROP: means the deferred retirement option plan established pursuant to this part. See Montana Code 19-9-1202
- DROP benefit: means the lump-sum benefit calculated and distributed as provided in this part. See Montana Code 19-9-1202
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Participant: means a member of the retirement system who has elected to participate in the DROP pursuant to this part. See Montana Code 19-9-1202
(a)receive a lump-sum distribution of the participant’s DROP benefit;
(b)roll the participant’s DROP benefit into another eligible retirement plan in a manner prescribed and authorized by the board; or
(c)any other distribution or method of payment of the DROP benefit approved by the board.
(2)A distribution pursuant to this section is subject to the provisions of 19-2-907 and 19-2-909 and all other applicable provisions of Title 19 and the Internal Revenue Code.
(3)The amount of a distribution, rollover, transfer, or other payment of a DROP benefit pursuant to this section must include interest credited to the participant’s account as follows:
(a)through June 30, 2009, interest must be credited every fiscal yearend at a rate reflecting the retirement system’s annual investment earnings for the applicable fiscal year;
(b)after June 30, 2009, interest must be credited every fiscal yearend at the actuarially assumed rate of return. Proportionate interest must be credited for distributions taking place at other than a fiscal yearend.