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12.
Distribution Eligibility Certificate
12.1
The Distribution Eligibility Certificate (“Certificate”) will be completed by the
participant on Retirement Manager related software or computing systems, and
the participant will provide the Certificate to the Approved Vendor.
12.2
Approved Vendor may also access the Certificate on Retirement Manager related
software or computing systems by using Approved Vendor’s login as provided by
VRSCO.
12.3
The Employer will direct the Approved Vendor to utilize information provided on
the Certificate in determining a participant’s eligibility for certain plan
transactions, including hardship distributions and loans.
12.4
Approved Vendor will require a valid Distribution Eligibility Certificate prior to
approving a loan or distribution. Approved Vendor must validate a current
effective date on the Certificate and not process based on an expired Certificate.
12.5
The Certificate will include a record of hardship withdrawals taken for which
information has been submitted to Retirement Manager.
12.6
Certificates for all transactions will be valid until the last day of the month
following the month in which the certificate is requested (e.g., certificate
requested in January is valid until the last day of February).
12.7
A participant may request a new Certificate for a separation from service or age-
based distribution or exchange at any time.
12.8
New Certificates for hardship distributions and loans will only be issued after the
expiration of a current Certificate or with Employer override during an active
Certificate period.
12.9
Approved Vendor will confirm from the Certificate information:
12.9.1
Current loans in default status and the issuing Approved Vendor
12.9.2
Participant has maximized available loans before requesting hardship
withdrawal
12.9.3
Amount, date and reason, if provided, of the hardship distribution
12.9.4
Amount of pre-1989 unrestricted funds available and the Approved
Vendor
12.9.5
Loan amount requested will not exceed the applicable loan limits (e.g.,
Approved Vendor should not approve a loan in excess of 50% of the
participant’s account balance at the Approved Vendor)
12.9.6
Compliance with hardship rules
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