27406. The nonparticipant spouse who is awarded separate nominal accounts with respect to the Cash Balance Benefit Program shall have the right to a lump-sum distribution of amounts credited to the account.
(a) The nonparticipant spouse shall file an application on a form provided by the system to obtain the distribution.
(b) The distribution is effective when the system deposits in the United States mail a warrant drawn in favor of the nonparticipant spouse and addressed to the latest address for the nonparticipant spouse on file with the system.
(c) If the nonparticipant spouse has elected on a form provided by the system to transfer all or a specified portion of the accounts that are eligible for direct trustee-to-trustee transfer under Section 401(a)(31) of Title 26 of the United States Code to the trustee of a qualified plan under Section 402 of Title 26 of the United States Code, deposit in the United States mail of a notice that the requested transfer has been made constitutes a distribution of the nonparticipant spouse’s credit balance from the separate nominal accounts. This subdivision shall not apply to a nonparticipant partner consistent with Section 402 of the Internal Revenue Code.
(d) The nonparticipant spouse is deemed to have permanently waived all rights to an annuity when the distribution becomes effective.
(e) The nonparticipant spouse may not cancel a distribution after the distribution is effective.
(f) The nonparticipant spouse shall have no right to elect to redeposit the distribution after the distribution is effective.
(Amended by Stats. 2010, Ch. 207, Sec. 29. (AB 2260) Effective January 1, 2011.)