[Ord. 6/13/02]
The pension formula under Section 4.1 is calculated to produce
a benefit in the form of equal monthly installments, payable to the
Participant during his lifetime, with payments ceasing in the month
of his death, subject to the succeeding provisions of Article Five.
In the case of a Participant with an Eligible Spouse the provisions
of Section 5.2 shall apply.
[Ord. 6/13/02]
This Section shall apply to a Participant who does not die prior
to the "annuity starting date".
(a)
If distribution of a Participant's benefit commences during
his lifetime, it shall be paid in the form of an annuity for the life
of the Participant or, if the Participant is married as of his benefit
commencement date, in the form of a "qualified joint and survivor
annuity" for the life of the Participant and his "eligible spouse".
For this purpose, a "qualified joint and survivor annuity" is
an immediate annuity for the life of the Participant with a survivor
annuity for the life of the spouse which is 67.5% of the amount of
the annuity which is payable during the joint lives of the Participant
and his spouse. The "qualified joint and survivor annuity" will be
the Actuarial Equivalent of the Participant's vested Accrued
Benefit.
(b)
"Eligible Spouse" is the spouse who (i) is married to the Participant
for the one-year period ending prior to the earlier of benefit commencement
or the date of the Participant's death, or (ii) becomes married
within the one-year period prior to benefit commencement and remains
married for at least one year. A divorce occurring after benefit payments
have commenced to the Participant will not cause an "eligible spouse"
to lose such status, unless the spouse agrees to give up rights hereunder
pursuant to the terms of a qualified domestic relations order described
in Code Section 414(p). The divorce or death of an "eligible spouse"
shall not entitle a subsequent spouse to status as an "eligible spouse."
(c)
Once payments have commenced, the form of benefit may not be changed.
[Ord. 6/13/02]
(a)
Normal or Late Retirement. Participants whose employment has terminated
shall have distribution of their benefits commence within sixty (60)
days following their Normal Retirement Date, unless the Participant
elects to defer receipt of his benefits.
(b)
Early or Disability Retirement. A Participant whose employment has
terminated either due to total and permanent disability or who has
met both the age and service requirements for Early Retirement may,
subject to the provisions of Section 4.3, request in writing the distribution
of his benefits to commence within sixty (60) days of receipt by the
Plan Administrator of his valid election.
(c)
Pre-retirement Termination of Employment. If a Participant terminates
employment for any reason other than Normal or Early Retirement, disability
or death, distribution of the Actuarial Equivalent of his vested Accrued
Benefit shall commence upon the latest of:
(d)
Latest Commencement Date. Distribution of benefits must commence
by the later of the April 1st following the end of the calendar year
in which the Participant retires or the April 1st following the end
of the calendar year in which the Participant attains age 70 1/2.
[Ord. 6/13/02]
(a)
A Participant who must commence distribution of benefits pursuant
to Code Section 401(a)(9) may elect a form of payment that is the
Actuarial Equivalent of his vested Accrued Benefit in accordance with
one of the following options:
(1)
In the case of annuity income payments the following rules shall
apply:
(A)
Payments to Participant or to Participant and Surviving Spouse.
Payments shall start no later than as provided under Section 5.3 and
shall be calculated to be paid over the Participant's life expectancy
or the joint life expectancies of the Participant and his spouse.
(B)
Payments to Participant and Non-Spouse Beneficiary. Payments
shall start no later than as provided under Section 5.3 and shall
be calculated to be paid over the joint life expectancies of the Participant
and the Beneficiary. However, the periodic annuity payable to the
Beneficiary may not exceed the "applicable percentage" of the Participant's
annuity payment, as determined from the Table of Proposed Income Tax
Regulation Section 1.401(a)(9)-2, Q & A 6.
(b)
Consent to Receive Minimum Distribution. The Administrator shall
make reasonable efforts to obtain the consent of the Participant (or
spouse, where applicable) to receive distributions. If consent cannot
be obtained after reasonable efforts, the Administrator shall distribute
benefits in the form of either a Qualified Joint and Survivor Annuity
or Qualified Pre-Retirement Survivor Annuity pursuant to Sections
5.2 and 6.1, respectively.
(c)
Beneficiaries for purposes of this Section shall be determined in
accordance with regulations issued pursuant to Code Section 401(a)(9).
(d)
Prior Election. Notwithstanding the requirements of this Section
and Section 5.3 to the contrary, any distributions made in accordance
with a written election by the Participant or the Participant's
Beneficiary before January 1, 1984 may be made or may continue to
be made under the provisions of such election, provided such method
of distribution would not have disqualified the Plan under Section
401(a)(9) of the Code as in effect prior to January 1, 1984.
[Ord. 6/13/02]
Subject to the provisions of Section 5.2, the Administrator
may direct the Trustee to purchase from an insurance company selected
by the Administrator an annuity contract that will provide the monthly
income in an amount equal to that which the Participant or Beneficiary
is entitled under the Plan. In the event an annuity contract is so
purchased, the contract may either be assigned to the Participant
or his Beneficiary on a nontransferable basis or held by the Trustee
for the benefit of the Participant or his Beneficiary.
[Ord. 6/13/02]
(a)
Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a Distributee's election, a Distributee may elect,
at the time and in the manner prescribed by the Administrator, to
have any portion of an Eligible Rollover Distribution paid directly
to an Eligible Retirement Plan specified by the Distributee in a Direct
Rollover.
(b)
Definitions.
(1)
Eligible Rollover Distribution. An eligible rollover distribution
is 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 ten years or
more; any distribution to the extent such distribution is required
under Section 401(a)(9) of the Code; any hardship distribution described
in Section 401(k)(2)(B)(i)(IV) of the Code; 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).
(A)
Modification of Definition of Eligible Rollover Distribution
to Include After-Tax Employee Contributions. For purposes of the direct
rollover provisions 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 which are not
includible in a 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 includible
in gross income and the portion of such distribution which is not
so includible.[1]
[Ord. 12/19/02]
[1]
Editor's Note: These provisions shall apply to distributions
made after December 31, 2001.
(2)
Eligible Retirement Plan. An eligible retirement plan is an
Individual Retirement Account described in Section 408(a) of the Code,
an Individual Retirement Annuity described in Section 408(b) of the
Code, an Annuity Plan described in Section 403(a) of the Code, or
a qualified trust described in Section 401(a) of the Code, that accepts
the Distributee's Eligible Rollover Distribution. However, in
the case of an Eligible Rollover Distribution to the surviving spouse,
an eligible retirement plan is an Individual Retirement Account or
Individual Retirement Annuity.
(A)
Modification of Definition of Eligible Retirement Plan. For
purposes of the direct rollover provisions of the Plan, an eligible
retirement plan shall also mean an annuity contract described in Section
403(b) of the Code and an eligible plan under Section 457(b) of the
Code which is maintained 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. The definition of eligible retirement
plan shall also apply in the case of a distribution to a surviving
spouse, or to a spouse or former spouse who is the alternate payee
under a qualified domestic relation order, as defined in Section 414(p)
of the Code.[2]
[Ord. 12/19/02]
[2]
Editor's Note: These provisions shall apply to distributions
made after December 31, 2001.
(3)
Distributee. A 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 Section 414(p) of the Code, are Distributees
with regard to the interest of the spouse or former spouse.
(4)
Direct Rollover. A direct rollover is a payment by the Plan
to the Eligible Retirement Plan specified by the Distributee.
