Update on GURP Distribution Restrictions
As communicated to all GURP participants each April since 2010 in the Annual Funding Notice, due to Federal law GURP participants terminating employment with the University have been restricted to receiving only 50% of their GURP balance in the form of a lump sum distribution because the plan was less than 80% funded. The GURP trust funding has now been certified at a level above the 80%. As a result, the restrictions on lump sum distributions have been lifted for any distributions made on or after October 1, 2012. The following paragraphs discuss how this change may affect you and any actions you need to take.
For those of you who terminated employment or retired from the University after April 1, 2010, who elected to either defer commencing your entire benefit or elected to take 50% of your GURP balance as a lump sum distribution and deferred commencing the remaining 50%, you may now apply to take your entire remaining balance as a lump sum distribution. You should contact the Office of Faculty and Staff Benefits (OFSB) at the University to request the election forms to receive the remaining balance.
For those of you who are in the process of leaving or planning to leave the University with a final employment date of September 30 or later, you will be able to take a full lump sum distribution from GURP following your termination. You will need to complete election forms to commence any payments under the Plan.
If you terminated employment or retired from the University, whether before or after April 1, 2010, and you began receiving your benefit as an annuity or a combination of a lump sum distribution and annuity, then this change does not affect you. You cannot change your elections on benefits that are being paid as an annuity or were already paid as a lump sum distribution.
We realize that there may be questions regarding this change; please contact the OFSB at 202-687-2500 or email@example.com and will strive to promptly assist you.
Plan Name: Georgetown University Retirement Plan (“GURP”)
Plan Sponsor: Georgetown University
Employer Identifying Number (EIN): 53-0196603
Plan Number (PN): 210