Section 503 – Death of members — Exemption from vesting requirements for employer nonelective contributions to defined contribution plan.

• (1)
  • (a) If an active member dies, employer nonelective contributions made on behalf of the employee to a defined contribution plan under Section 49-22-303 or 49-22-401 are exempt from the vesting requirements of Subsections 49-22-303(2)(a) and 49-22-401(3)(a).
  • (b) The total amount of nonelective contributions made by the participating employer vests to the member upon death and the member’s beneficiary is entitled to receive a distribution of the employer contributions made on behalf of the employee and all associated investment gains and losses.

• (2) Employer contributions vested and distributed under this section are in addition to and separate from the benefits payable under Sections 49-22-501 and 49-22-502.

Enacted by Chapter 315, 2015 General Session