(a) General rule.--In the event of the death of an active participant or inactive participant, the board shall pay to the participant's beneficiary the vested balance in the participant's individual investment account in a lump sum or in such other manner as the board may establish in the plan document.
(b) Death of participant receiving distributions.--In the event of the death of a participant receiving distributions, the board shall pay to the participant's beneficiary the vested balance in the participant's individual investment account in a lump sum or in such other manner as the board may establish in the plan document or, if the board has established alternative methods of distribution in the plan document under which the participant was receiving distributions, to the participant's beneficiary or successor payee as provided in the plan document.
(c) Contracts.--The board may contract with financial institutions, insurance companies or other types of third-party providers to allow participants and their beneficiaries who receive a lump sum distribution to receive payments and death benefits in a form and manner as provided by the contract.
Cross References. Section 8408 is referred to in section 8507 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 84 - School Employees' Defined Contribution Plan
Section 8403 - Individual investment accounts
Section 8404 - Participant contributions
Section 8405 - Mandatory pickup participant contributions
Section 8406 - Employer defined contributions
Section 8407 - Eligibility for benefits
Section 8410 - Termination of distributions
Section 8411 - Powers and duties of board
Section 8412 - Responsibility for investment loss
Section 8413 - Investments based on participant's investment allocation choices