WAC 415-501-510   May I have some or all of my accumulated deferrals in the event of an unforeseeable emergency?  (1) Notwithstanding any other provisions in this chapter, you may request all or a portion of your accumulated deferrals in the event of an unforeseeable emergency. Distribution will be made within sixty days following the department's approval of your request. The amount paid will be limited strictly to that amount reasonably necessary to satisfy the emergency need.

     (2) For purposes of this plan, an unforeseeable emergency is severe financial hardship to you resulting from:

     (a) A personal illness or accident or the illness or injury of a spouse or dependent who meets the definition in Section 152(a) of the Internal Revenue Code;

     (b) Loss of your property due to casualty, including the need to rebuild a home following damage not otherwise covered by homeowner's insurance, e.g., as a result of natural disaster; or

     (c) Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond your control.

     (3) The circumstances that constitute an unforeseeable emergency depend upon the facts of each case, but, in no case will the department approve a distribution request if the financial hardship is or may be relieved:

     (i) Through reimbursement or compensation by insurance or otherwise;

     (ii) By liquidation of your assets, to the extent liquidation of such assets would not itself cause severe financial hardship; or

     (iii) By cessation of deferrals under the plan.

     (4) Examples:

     (a) The following types of occurrences are not considered unforeseeable emergencies:

     (i) Sending your child to college; or

     (ii) Purchasing a home.

     (b) The following types of occurrences may be considered unforeseeable emergencies, depending on the facts in each case:

     (i) Imminent foreclosure of or eviction from your primary residence;

     (ii) Medical expenses, including nonrefundable deductibles, and/or the cost of prescription drug medication;

     (iii) Funeral expenses of your spouse or a dependent as defined in Section 152(a) of the Internal Revenue Code; and

     (iv) Extraordinary expenses resulting from a divorce.

     (5) If the department denies your request for distribution, you may request a review of that decision according to the provisions of WAC 415-08-015.

     (6) Unforeseeable emergency requests received by the department, whether approved or denied, will cause a mandatory suspension of deferrals to the plan. You may not resume deferrals sooner than six months from the date of suspension.



[Statutory Authority: RCW 41.50.050(5), 41.50.780(10), and41.50.770 . 04-22-053, § 415-501-510, filed 10/29/04, effective 11/29/04. Statutory Authority: RCW 41.50.050(5),41.50.770 and 41.50.780. 02-02-059, § 415-501-510, filed 12/28/01, effective 1/1/02. Statutory Authority: RCW 41.50.770, [41.50.]780 and 41.50.050. 00-11-104, amended and recodified as § 415-501-510, filed 5/18/00, effective 6/18/00. Statutory Authority: RCW 41.50.050. 98-20-047, § 415-524-010, filed 9/30/98, effective 10/31/98. Statutory Authority: RCW 41.50.050 and 41.50.780(11). 96-16-020, § 415-524-010, filed 7/29/96, effective 7/29/96.]