The Plan document for this governmental plan gives the Plan Administrator the right to distribute the the vested account balance to the Participant after separation from service. Why woudn't IRC 411(a)(11)(A) apply, effectively precluding the Administrator from distributing assets without the Participant's election if the account balance is in excess of $5000?

411 does not apply to governmental plans. Govermental plans frequently provide for distribution shortly after termination of employment.