Montana Code 19-3-2116. Vesting — mandatory termination of membership — forfeitures
19-3-2116. Vesting — mandatory termination of membership — forfeitures. (1) A member‘s contribution account includes the member’s contributions and the income on those contributions and is vested from the date that the employee becomes a member of the plan.
Terms Used In Montana Code 19-3-2116
- Employer: means the state of Montana, its university system or any of the colleges, schools, components, or units of the university system for the purposes of this chapter, or any contracting employer. See Montana Code 19-3-108
- Employer contributions: means payments to a pension trust fund pursuant to 19-3-316 from appropriations of the state of Montana and from contracting employers. See Montana Code 19-3-108
- Member: means a person with a retirement account in the defined contribution plan. See Montana Code 19-3-2101
(2)A member’s employer contribution account includes the employer’s contributions and the income on those contributions and is vested only when the member has a total of 5 years of membership service under the system.
(3)A member’s account for other contributions includes the member’s rollovers of contributions made pursuant to 19-3-2115 and income on those contributions and is vested from the date that the contribution is credited to the account.
(4)A member who terminates service after becoming a vested member may terminate plan membership as provided in 19-3-2123.
(5)A member who terminates service before becoming a vested member shall terminate plan membership as provided in 19-3-2123 and subject to 19-3-2126.
(6)If the member’s employer contribution account is not vested upon termination of plan membership, as provided in 19-3-2123, the employer contributions and income are forfeited and must be allocated as provided in 19-3-2117.