Ill. Admin. Code tit. 80, § 2700.740 - Unforeseeable Emergency
a) A
distribution of all or a portion of a Participant's Deferred Compensation
Account or a change in method of distribution to a Participant shall be
permitted in the event the Participant experiences an Unforeseeable
Emergency.
b) Distributions shall
not be made to the extent that the hardship is or may be relieved:
1) through reimbursement or compensation by
insurance or otherwise;
2) by
liquidation of the Participant's assets to the extent the liquidation of assets
would not itself cause severe financial hardship;
3) by cessation of deferrals under the Plan;
or
4) through receipt of a Loan
under Section 2700.770.
c) A distribution pursuant to this Section
shall not be permitted unless the Participant has first exhausted the amount
otherwise available for a Loan under Section 2700.770, except to the extent the
Participant can demonstrate in its hardship distribution application that
receipt of a Loan would itself cause severe financial hardship.
d) For the purposes of this Plan, a
Beneficiary whose interest has "vested" in accordance with Section
2700.415 shall have all rights
of a Participant to request a distribution in the event of an Unforeseeable
Emergency.
e) A Participant
desiring a distribution by reason of a serious Unforeseeable Emergency must
apply to the Recordkeeper and demonstrate that:
1) the circumstances being experienced were
not under the Participant's control;
2) the circumstances constitute a real
emergency that is likely to cause the Participant great financial
hardship;
3) the Unforeseeable
Emergency that is the subject of the request occurred no more than 24 months
prior to the date of the request;
4) the amount of the need cannot be
reasonably relieved:
A) through reimbursement
or compensation by insurance or otherwise;
B) by liquidation of assets (including those
of the Participant's spouse and minor children), to the extent the liquidation
would not itself cause an immediate and heavy financial need;
C) by stopping elective contributions to the
Plan;
D) following receipt of a
Loan under Section 2700.770; or
E)
by taking withdrawals from the plans maintained by the employer and any other
company, or by borrowing from commercial resources on reasonable commercial
terms; and
5) an
Unforeseeable Emergency request form and 457 direct emergency withdrawal
worksheet have been completed and submitted to the Recordkeeper, along with all
documentation possessed by the Participant that supports the basis of the
request.
f) The
Recordkeeper shall have the authority to require medical or other evidence it
may need to determine the necessity for Participant's withdrawal request. In
the event this information is not provided, the case shall be considered closed
60 days after the date of the request for additional information.
g) The Recordkeeper shall reach its decision
to process or reject the financial hardship withdrawal request, in accordance
with Section 2700.315(f),
within 30 days following receipt of the completed application and necessary
information required by the application.
h) In the event the basis for the hardship
does not fall into the guidelines established by Section
2700.315(f),
the Recordkeeper shall forward all relevant information to the Hardship
Committee for consideration and a final decision.
i) The Hardship Committee may request
additional information from the Participant in order to make its decision on
applications processed through either subsection (i) or (j). The Hardship
Committee shall reach its decision within 30 days after receipt of the
application and information necessary to reach a final determination.
j) If a Participant is not satisfied with the
decision of the Hardship Committee on an application for an Unforeseeable
Emergency distribution or change in distribution, the Participant may appeal in
writing to the Board within 20 days after the mailing date of the Hardship
Committee's decision.
k) The Board,
or its duly appointed representative, shall, within 60 days after receipt of
the appeal, conduct an interview with the Participant and review evidence
presented by the Participant.
l)
The Board or the Executive Committee of the Board shall then render a final
decision within 30 days after the hearing that shall be binding on all
parties.
m) If an application for
an Unforeseeable Emergency distribution is approved, the distribution shall be
limited to an amount sufficient only to meet the emergency, which amount shall
not include any security interest for an outstanding Loan under Section
2700.770 or exceed the amount of
the Participant's Deferred Compensation Account as of the Valuation Date next
preceding or coincident with the withdrawal.
n) The allowed distribution shall be payable
in a method determined by the Recordkeeper and shall commence as soon as
possible, but not later than 30 days after notice to the Participant and the
Department of approval of the request.
Notes
Amended at 36 Ill. Reg. 17518, effective January 1, 2013
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