C. Internal Revenue Code Distribution Rules

The tax code and the IRS require that the Plan contain certain additional distribution rules. If, for example, you die after payment of your pension benefits have commenced, payments to your beneficiary must be distributed at least as rapidly as provided in the form of payment to you at the time of your death.

If you die before your pension payments have begun, the payment of your pension must be completed by December 31 of the calendar year containing the fifth anniversary of your death. If, however, your benefits are payable to a designated beneficiary, the distribution may be made over the life (or life expectancy) of the designated beneficiary, but payments must commence by December 31 of the year immediately following the year in which you died.

If your Spouse is your designated beneficiary, your Spouse's benefits do not have to commence until the April 1 following the year you would have attained age 70½.