When am I eligible for a distribution?
Although the primary objective of AP-MPPP is to provide income at retirement, you are eligible to receive a distribution of your account any time after separation from service. There is no minimum service requirement, and there is no minimum age requirement to request a distribution of any type or amount after separation of service. You will be eligible to receive your full vested benefit, including all employee contributions, your vested portion of the City’s contributions, and any applicable investment returns on the aforementioned contributions. Assets contributed to your account via direct rollover from an IRA or prior employer’s qualified retirement plan are eligible for distribution at any time.It is important to note that distributions taken prior to attaining age 59 ½ may be subject to an IRS early distribution penalty tax equal to 10% of the gross distribution. While exemptions to this rule exist (including divorce, early retirement, disability, and rollovers out of the Plan), participants are strongly encouraged to read the Special Tax Notice, contact the Plan Administrator, and/or consult a tax professional for guidance prior to taking a distribution from your AP-MPPP account.
The benefits and consequences associated with your distribution options are unique, and your decision can have long-lasting implications. Please review the distribution checklist to help make an informed decision and contact your local pension office at apdretire@innovestinc.com.
The various distribution types available to AP-MPPP participants include:
Qualified Domestic Relations Order or QDRO (for divorce proceedings)
Lump Sum Distributions, Installments, Rollovers (after separation of service; or distribution of rollover contributions at any time)
In Service Distribution (upon attaining age 50 or greater)
Disability (permanent disability resulting from on-duty or off-duty injury or illness)