The normal form for payment of retirement benefits
shall be a monthly annuity for the life of the participant; provided,
however, that if the death of the retired participant shall occur
after the payments commence but prior to the date on which the total
amount paid to the participant exceeds the value of the participant’s
accumulated contributions determined as of the retirement date, the
beneficiary shall be eligible to receive a distribution in an amount
equal to the participant’s accumulated contributions as of the
retirement date, less the total amount paid to the participant. If
the total amount paid to the participant exceeds the value of the
participant’s accumulated contributions determined as of the
participant’s retirement date, there shall be no other amounts
due and payable upon the occurrence of the death of the participant.
A participant may receive payment of retirement
benefits in an optional form which shall be the actuarial equivalent
of the normal form. The optional forms of payment hereunder shall
be as follows:
A. Life annuity with period certain option. In lieu of
receiving a retirement benefit under the normal form, a participant
may elect to convert the benefit to this option which provides for
a retirement benefit payable monthly to the participant until the
death of the participant occurs or for a period certain whichever
is longer. If the participant shall die before receiving payment of
benefits at least equal to the period certain then the remainder of
the period certain payments shall be paid as they become due to a
designated beneficiary. The total number of payments made to the participant
and beneficiary shall equal to the number of period certain payments
selected. If the participant shall die after receiving payment of
benefits equal to or greater than the period certain there shall be
no additional payments due hereunder after the participant’s
death. The period, certain which may be elected, shall be either five,
10, or 15 years certain.
B. Joint and survivor annuity option. In lieu of receiving
the retirement benefit under the normal form, a participant may elect
the joint and survivor annuity which provides for a retirement benefit
payable to the retired participant until death and for the continuation
of benefit payments in an amount equal to 50%, 75% or 100% of the
participant’s reduced pension benefit to a surviving spouse
until the death of the surviving spouse shall occur. If the death
of the spouse occurs before the participant’s actual retirement
date, any election of this option shall be deemed null and void and
the retirement benefit shall be payable in the normal form, the same
as if the joint and survivor annuity option had not been elected.
If the spouse predeceases the retired participant after actual retirement,
retirement benefit payments shall terminate upon the retired participant’s
death.
A participant may elect to commence receiving distribution of retirement benefits as of the early, normal or late retirement date, whichever is applicable, or may defer such payments to a date not later than the required date for commencement of benefits determined under §
33-98.
Any election permitted hereunder may be revoked
or a new election may be made within any applicable election period
on a form and in a manner prescribed by the plan administrator and
without the knowledge or consent of any applicable beneficiary.
Each participant’s right to receive any
benefits hereunder is personal and shall expire upon the death of
the participant. No heir, legatee, devisee, beneficiary, assignee
or other person claiming by or through a participant shall have any
interest in any benefits hereunder unless clearly and expressly so
provided by the terms of this plan. A participant’s election,
failure to make an election or revocation of an election hereunder
shall be final and binding on all persons.
[Added 12-11-2002 by Ord. No. 1548;
amended 5-11-2005 by Ord. No. 1569]
A. This §
33-101A applies to distributions made on or after December 31, 2001. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, a distributes may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution that is equal to at least $500 paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
B. This §
33-101B shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, if a distribution in excess of $1,000 is made and the distributee does not make an election under §
33-101A and does not elect to receive the distribution directly, the plan administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to §
33-111A(9). The plan administrator shall notify the distributee in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
C. For purposes of this section, the following definitions
shall apply:
DIRECT ROLLOVER
A payment by the plan to the eligible retirement plan specified
by the distributee or the plan administrator, if the distributee does
not make an election.
DISTRIBUTEE
Includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Internal
Revenue Code Section 414(p), are distributees with regard to the interest
of the spouse or former spouse.
ELIGIBLE RETIREMENT PLAN
A qualified trust described in Internal Revenue Code Section
401(a); an individual retirement account described in Internal Revenue
Code Section 408(a); an individual retirement annuity described in
Internal Revenue Code Section 408(b); an annuity plan described in
Internal Revenue Code Section 403(a); an annuity contract described
in Internal Revenue Code Section 403(b); an eligible deferred compensation
plan described in Internal Revenue Code Section 457(b), which is maintained
by a state, political subdivision of a state, and any agency or instrumentality
of a state or a political subdivision of a state and which agrees
to separately account for amounts transferred into such plan from
this plan.
ELIGIBLE ROLLOVER DISTRIBUTION
Any distribution of all or any portion of the balance to
the credit of the distributee, except that an eligible rollover distribution
does not include: any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life or (life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of 10 years or more;
any distribution to the extent such distribution is required under
Internal Revenue Code Section 401(a)(9); and the portion of any distribution
that is not includible in gross income (determined without regard
to the exclusion for net unrealized appreciation with respect to employer
securities). For purposes of the direct rollover provisions in this
section of the plan, a portion of the distribution shall not fail
to be an eligible rollover distribution merely because the portion
consists of alter-tax employee contributions that are not includible
in gross income. However, such portion may only be paid to an individual
retirement account or annuity described in Section 408(a) or (b) of
the Internal Revenue Code, or to a qualified defined contribution
plan described in Section 401(a) or 403(a) of the Code that agrees
to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible
in gross income and the portion which is not includible.