The death and disability benefits provided by the system are limited by the incidental benefit rule set forth in § 401(a)(9)(G) of the Internal Revenue Code and Treasury Regulation § 1.401-1(b)(1)(i). As a result, the total death or disability benefits payable may not exceed twenty-five percent of the cost for all of the member’s benefits received from the system.

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Source: SL 2021, ch 28, § 5.