HB 358 Summary

• Modifies minimum distribution requirements for police retirement plan members to comply with Internal Revenue Code Section 401(a)(9), establishing required beginning dates and distribution options based on member age and life expectancy.

• Expands rollover distribution options to allow members to transfer eligible distributions to IRAs, Roth IRAs, annuity contracts, and eligible plans under Section 457(b), with specific provisions for nonspouse beneficiaries effective January 1, 2010.

• Adds new section 86.295 providing that surviving spouses and dependents of members who die while performing qualified military service on or after January 1, 2007, receive the same death benefits as if the member had died in active service.

• Clarifies annual benefit and contribution limits under Section 415 of the Internal Revenue Code, allowing after-tax employee contributions to be accepted and separately accounted for in rollover distributions effective October 1, 2011.

• Changes vesting provisions to make benefits 100 percent vested upon the first occurrence of: attaining age fifty-five, completing twenty years of creditable service regardless of age, or termination of the plan to the extent funded.