Form 3227A

Revised 1/1/2005

If you left AAFES employment in 1995 or after, employment verificdation must be

obtained by contacting THE WORK NUMBER FOR EVERYONE, a natinal

employment verification service, at 1-900-555-9675.  Enter the AAFES company Code of

10509 then enter applicable information as prompted. However, to obtain

verification of your retirement status you must still contact the Benefit Section of AAFES

at the above address.

South Carolina Retirement Systems


Tax-Deferred Installment Service Purchase Accounts

Requirements for a Participant to Revoke an Election to Participate

*The term "dependent" means any of the following individuals over half of whose support was paid by participant in the current tax year: 1) participant's son or daughter or a descendant of either; 2) participant's stepson or stepdaughter; 3) participant's brother, sister, stepbrother, or stepsister; 4) participant's mother or father or an ancestor of either; 5) participant's stepfather or stepmother; 6)  participant's nephew or niece; 7) participant's aunt or uncle; 8) participant's son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law ; 9) an individual whose principal place of abode is the participant's home and is a member of the participant's household. 

The South Carolina Retirement Systems will determine whether or not a member participating in the tax-deferred installment loan program can revoke his or her election to participate in the program based on the Internal Revenue Code (IRC) section 457 requirements for an unforeseeable emergency. These requirements pertaining to unforeseeable emergencies are included in Treasury Regulation 1.457-6(c)(2)(i) and are defined as follows:


Severe financial hardship of the participant or beneficiary resulting from:


                          Sudden and unexpected illness or accident of the participant, the participant's spouse,

                          or the participant's dependent*;


                          Loss of the participant's property due to casualty; or


                          Similar extraordinary and unforeseeable circumstances arising as a result of events beyond 

                          the control of the participant.


Examples of an unforeseeable emergency given in the Treasury Regulation include:


                          Imminent foreclosure or eviction from primary residence;


                          Uninsured medical expenses;


                          Funeral expenses of a spouse or dependent;


Examples of situations that are not unforeseeable emergencies:


                          Purchase of a home;


                          Payment of college tuition;


Whether an unforeseeable emergency exists is to be determined by the Retirement Systems on the relevant facts and circumstances of each case, but, in any case, an unforeseeable emergency does not exist if the emergency may be relieved through reimbursement from insurance, or the liquidation of assets to the extent such liquidation would not cause severe financial hardship. The participant must furnish to the Retirement Systems satisfactory evidence that an unforeseeable emergency exists under Regulation 1.457-6(c)(2).