LegalFix
Sign In

§ 1002.264 - Is the employee allowed to repay a previous distribution from a pension benefits plan upon being reemployed?

Copy with citation
Copy as parenthetical citation

Yes, provided the plan is a defined benefit plan. If the employee received a distribution of all or part of the accrued benefit from a defined benefit plan in connection with his or her service in the uniformed services before he or she became reemployed, he or she must be allowed to repay the withdrawn amounts when he or she is reemployed. The amount the employee must repay includes any interest that would have accrued had the monies not been withdrawn. The employee must be allowed to repay these amounts during a time period starting with the date of reemployment and continuing for up to three times the length of the employee's immediate past period of uniformed service, with the repayment period not to exceed five years (or such longer time as may be agreed to between the employer and the employee), provided the employee is employed with the post-service employer during this period.

Previous Section
§ 1002.263 - Does the employee pay interest when he or she makes up missed contributions or elective deferrals?
Next Section
§ 1002.265 - If the employee is reemployed with his or her pre-service employer, is the employee's pension benefit the same as if he or she had remained continuously employed?