Does an Alternate Payee have the same options under a pension plan administered by a state or local government as are available under a private company or union?
No. State and Local governmental pension plans do not fall under the guidelines of ERISA. Therefore, many of the options available to Alternate Payees under a company or union plan are not available under the government plan. 45. Can benefits be paid in the form of a lump sum benefit? No, but with one exception. The portion of the Participant’s monthly retirement allowance awarded to the Alternate Payee may not be paid in the form of a lump sum payment. However, if for some reason, the Participant makes a withdrawal of contributions and interest to the Plan, in some cases, the Alternate Payee may receive a portion of those contributions and interest in the Plan paid in the form of a lump sum.
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