I am bringing Pmerle00's post forward for reference (RBBM):
I explained it as it was explained to me and from a couple of things I looked up. I'm definitely not an attorney.
I am sure I'll catch hell for explaining this in more detail, because it's really nobody's business but ours, but... From what I have been told, this is what was required by the pension board to make specific decisions in a timely manner so Papaw's pension and DROP fund would continue on a monthly basis. DFD pension board sent out a letter to members just prior to Papaw's disappearance requesting a confirmation that the payments should maintain as they had been - OR if they didn't respond, then it would go to semi-annual payments. The DROP fund payments stopped the same month Papaw went missing, so action had to be taken RIGHT AWAY so BC could continue to receive the funds that Papaw contributed to the DROP monthly instead of going to semi-annual.
(I think) I found answers to some of your questions, Jim_M (Answers in
italicized red).
I am hardly done researching, and I have zero expertise in this area, so I may be completely wrong. However, not only the DROP issue, but the the entire subject of retirement benefits (i.e., DROP
and PaPaw's traditional pension benefit) may have played a significant role in his disappearance - its timing in particular. I may not be able to fully explain my reasoning in this post, but I will give it a try (all BBM):
-RSBM for focus-
Was Michael aware of this DFD pension board letter? If so, was he contemplating sending back confirmation? If not, when was the confirmation letter due back to the pension board?
Or, perhaps this DFD pension board letter came after Michael disappeared? In which case, they had very little time to respond if the DROP payments stopped at the end of March. Again, what was the amount of time given for confirmation to be returned?
"MINIMUM ANNUAL DISTRIBUTION:
>A Distributee may elect to receive a Minimum Annual Distribution from his or her DROP account.
The Minimum Annual Distributions works as follows:
>2017: $30,000 is the maximum to be distributed per Distributee as a Minimum Annual Distribution in 2017. The distributee will receive either $3,000 per month (March - December) as an ACH, or if a rollover is selected the money will be distributed semi-annually with $12,000 distributed on June 30th and $18,000 distributed on December 29th.
To be eligible for the maximum in 2017, a completed request form must be received by DPFP by close-of-business February 28, 2017.
>Requests received after February 28, 2017 will be eligible to receive $3,000 per month for all months remaining after the month the completed request was received. The rollover/semi-annual option is not available for requests received after February 28, 2017.
>March 10th: Second letter mailed to DROP account holders that have not responded indicating their desire to participate in either the Minimum Annual Distribution or any potential Pro-rata distribution share.
-RSBM for focus-
Source:
https://www.dpfp.org/images/PDFs/Ag...dum PowerPoint based on 1-12 motion FINAL.pdf
<Additional Thoughts (my
personal observations and opinions only; all BBM>
1. "
A written communication was mailed to all members with a DROP account on 1/23 discussing these changes. In this mailing, Retirees with a DROP account have been provided with a DROP Distribution Election form in which the election for the minimum annual distribution and/or the potential pro-rata distributions are included."
https://www.dpfp.org/DROP Policy.html
1) The distribution election form can be viewed here (I believe this is what our VI is referring to):
https://www.dpfp.org/images/PDFs/Forms/DROP Distribution Election Form 2017.pdf
2) Also, "Any distributees who do not timely submit a DROP withdrawal election form by February 28, 2017, will be notified a second time of this Addendum by March 31, 2017.
This second notification will only be for notification purposes for future DROP distributions, not for inclusion in the distribution contemplated to be made on or around March 31, 2017."
https://www.dpfp.org/images/PDFs/Policy/DROP POLICY ADDENDUM (1_12_17) FINAL.pdf
3) I believe it is reasonable to assume that the first notification would have been delivered by the end of January, so 4 weeks before the Feb. 28th due date, or about 6 weeks before PaPaw's March 10th disappearance. I don't know if he ever saw the letter, or BC found it in their mailbox and talked to him about it. I cannot confirm since her FB page has been locked down, but IIRC, she was off from work the entire month of Feb. If either one of them was aware of the letter, it seems like they would have plenty of time to discuss its content and return the distribution election form, IMO.
4) I have yet to find anything indicating that if they did not respond, then the DROP payments would go from monthly to semi-annual. In fact, the form states,
"Deadlines for Minimum Annual Distributions request are as follows:
>2017 monthly distributions End of month prior to month of initial distribution
>2017 semi-annual distributions February 28, 2017"
According to our VI, they had not submitted the request at the time of PaPaw's disappearance, let alone the Feb. 28th deadline. So at that point, they were already ineligible to receive payments semi-annually.
5) It is only because the Feb. 28th deadline was missed that BC did not receive a DROP fund payment in March. Otherwise, the payments would have continued without interruption.
2. "You will be taxed on a payment from DPFP if you do not roll it over. If you are
under age 59½ and do not do a rollover, you will also have to pay a 10% additional income tax on early distributions (unless an exception applies)."
https://www.dpfp.org/images/PDFs/Forms/DROP Distribution Election Form 2017.pdf
3. "Mandatory DROP Distribution Federal Required Minimum Distribution:
Federal law requires that you must begin to receive pension payments directly, including distribution from the DROP account,
in the year in which you attain age 70½ or leave Active Service ....
-SBM for space-
In addition, the Boards DROP policy requires DROP Pensioners and Spouse Beneficiaries to withdraw all funds from DROP in annual distributions over a prescribed period. The Required Annual Distribution (RAD) generally must begin in the year the DROP Pensioner or Spouse Beneficiary attains age 70½.
-SBM for space-
DROP Pensioners or Spouse Beneficiaries are required to take distributions from their DROP account in substantially equal amounts each year that will result in the total distribution of the DROP account before the tenth anniversary of the date that the distributions began.
Specifically in the year the distributions begin, the DROP pensioner or DROP Spouse Beneficiary shall receive at least one-tenth of the Participants DROP account balance as of the beginning of that calendar year."
PaPaw would have turned 70½ on May 27th of this year.
https://www.familytreenow.com/searc...=Chambers&rid=0sn&smck=CCzP52cCRQVtPu9w6BcAfw
https://familysearch.org/ark:/61903/1:1:V8C1-79N
Additional info here:
https://www.dpfp.org/images/PDFs/Policy/DROP Policy Addendum Amendment 6-8-17.pdf
As for the traditional pension ... I think I will have to come back in the morning ....
