The normal form for payment of retirement benefits
shall be an annuity for the life of the participant paid in equal
monthly installments.
A participant may make an election to commence receiving distribution of retirement benefits as of the participant's normal retirement date 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 § 57-169.
A.
Benefits and interest.
(1)
Notwithstanding any other provision of this plan,
the entire benefit of any participant who becomes entitled to benefits
prior to death shall be distributed either:
(a)
Not later than the required beginning date;
or
(b)
Over a period beginning not later than the required
beginning date and extending over the life of such participant or
over the lives of such participant and a designated beneficiary (or
over a period not extending beyond the life expectancy of such participant
or the joint life expectancies of such participant and a designated
beneficiary).
(2)
If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of benefits has begun in accordance with Subsection A(1)(b) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection A(1)(b) as of the date of death.
B.
If a participant who is entitled to benefits under
this plan dies before distribution of the benefit has begun, the entire
interest of such employee shall be distributed within five years of
the death of such employee, unless the following sentence is applicable.
If any portion of the employee's interest is payable to (or for the
benefit of) a designated beneficiary, such portion shall be distributed
over the life of such designated beneficiary (or over a period not
extending beyond the life expectancy of such beneficiary), and such
distributions begin not later than one year after the date of the
employee's death or such later date as provided by regulations issued
by the Secretary of the Treasury, then for purposes of the five-year
rule set forth in the preceding sentence, the benefit payable to the
beneficiary shall be treated as distributed on the date on which such
distributions begin. Provided, however, that notwithstanding the preceding
sentence, if the designated beneficiary is the surviving spouse of
the participant, then the date on which distributions are required
to begin shall not be earlier than the date upon which the employee
would have attained age 70 1/2 and, further provided, if the surviving
spouse dies before the distributions to such spouse begin, this subsection
shall be applied as if the surviving spouse were the employee.
C.
For purposes of this section, the following definitions
and procedures shall apply:
(1)
"Required beginning date" shall mean April 1 of the
calendar year following the later of the calendar year in which the
employee attains age 70 1/2 or the calendar year in which the employee
retires.
(2)
The phrase "designated beneficiary" shall mean any
individual designated by the employee under this plan according to
its rules.
(3)
Any amount paid to a child shall be treated as if
it had been paid to the surviving spouse if such amount will become
payable to the surviving spouse upon such child's reaching majority
(or other designated event permitted under regulations issued by the
Secretary of the Treasury).
(4)
For purposes of this section, the life expectancy
of an employee and/or the employee's spouse (other than in the case
of a life annuity) may be redetermined but not more frequently than
annually.
If the plan administrator determines that the
value of a participant's accrued benefit is so small as to make pension
payments in the normal form administratively impractical, the plan
administrator may cause such payments to be made at such other periodic
intervals as are administratively practical, but no less frequently
than annually, or may make a single lump sum payment equal to the
commuted value of such accrued benefit to the extent permitted under
applicable law.
To avoid any duplication of benefits, a participant
who is receiving a retirement benefit under this plan and who shall
resume employment shall have benefit payments suspended until the
first day of the month coincident with or next following the date
such employment shall cease. Upon resumption of benefit payments,
such participant shall receive the greater of the amount of the suspended
benefit or the amount of benefit based upon final monthly average
salary and years of credited service as of the date that such period
of resumed employment shall cease.
[Added 12-19-2002 by Ord. No. 1529]
A.
This section 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 distributee 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.
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(1)
(2)
For purposes of this section, the following definitions
shall apply.
A payment by the plan to the eligible retirement plan specified
by the 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 Code
Section 414(p), are distributees with regard to the interest of the
spouse or former spouse.
A qualified trust described in Code Section 401(a), an individual
retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an annuity plan
described in Code Section 403(a), an annuity contract described in
Code Section 403(b), an eligible plan under Section 457(b) of the
Code which is mandated by a state, political subdivision of a state,
or any agency or instrumentality of a state or political subdivision
of a state and which agrees to separately account for amounts transferred
into such plan from this plan.
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 Code Section 401(a)(9); and the portion of any distribution
that is not includable 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 a distribution shall not
fail to be an eligible rollover distribution merely because the portion
consists of after-tax employee contributions that are not includable
in gross income. However, such portion may be paid only to an individual
retirement account or annuity described in Section 408(a) or (b) of
the 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 includable in gross income and
the portion of such distribution which is not so includable.
The right to receive any benefits under this
plan is a personal right of the participant 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.
