Death Benefit Distribution

This is a first for me. A plan participant executed their distribution election forms but passed away before the distribution was made (within a week of completing the forms). The distribution is in connection with a plan termination, the participant had not reached retirement age, and the election was for a lump sum distribution greater than $5,000. The death benefit is PVAB. I do not see that the plan document addresses this exact situation. My initial thought is that the participants elections prior to death are now not applicable since the distribution was not made, and the spouse should receive distribution election forms for a death benefit distribution. Any input would be appreciated. Thanks.

My thought would be that the forms were executed properly and the only delay is administrative so I would move forward with the distribution as is.  Just my opinion of course.

The document absolutely says what you need to do but you may need to dig for it and tie a couple of different sections together. The important item to identify is the annuity starting date, which should also be defined in the plan. ASD can be different for annuity versus lump sum, but for a plan termination is likely the proposed distribution date. Follow the plan's provisions for death before or after the annuity starting date as applicable. Some plans (individually designed, as I haven't seen in pre-approved documents) may specify the particular situation where a valid election is made but the participant dies before the annuity starting date and may pay the benefit according to the election but I would not say that's an "automatic". Hopefully, if needed, you can get the surviving spouse/beneficiary to elect a lump sum now in place of the participant.