Any distribution of vested benefits shall be a retirement benefit and subject to § 3-13C-14 . A participant who becomes an inactive participant before retirement or death is entitled to one of the following vested benefits, whichever is applicable:

(1) A deferred monthly retirement benefit under the normal form to begin on the participant’s normal retirement date equal to the sum of (a) and (b):

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(a) On and after June 30, 1999, the amount of monthly benefit which could be provided on the participant’s normal retirement date on the normal form by the participant’s required contribution account, based on the rates described in the definition of actuarial equivalent; and

(b) The product of (i) and (ii):

(i) The excess of the participant’s accrued benefit on the day before becoming an inactive participant over the amount determined under (a); and

(ii) The participant’s vesting percentage on the date of severance from employment; or

(2) A deferred monthly retirement benefit under the normal form to begin on the participant’s late retirement date determined as follows:

(a) For a participant who became an inactive participant on or before normal retirement date, an amount equal to the amount under subdivision (1); and

(b) For a participant who became an inactive participant after normal retirement date, an amount equal to the participant’s accrued benefit on the day before becoming an inactive participant.

The deferred retirement benefit for the participant on the participant’s retirement date may not be less than the monthly benefit equal to the actuarial equivalent of the required contribution account on that date.

The amount of payment under any form other than the normal form shall be determined in accordance with § 3-13C-21.

The participant may receive the participant’s required contribution account in a single sum payment at any time after severance from employment and before the participant’s retirement date, provided the participant has not again become an employee. If the amount is not payable in accordance with § 3-13C-14 , it will be distributed only if the participant so elects. The participant’s election shall be subject to the requirements in § 3-13C-23. The payment shall be in lieu of the required contribution accrued benefit.

If the participant dies before retiring, death benefits shall be distributed in accordance with § 3-13C-18 .

Source: SL 2020, ch 13, § 27.