Fort Walton Beach Resolution — 2009-45 - Establish Defined Plan after 1/10 — reading text

16  d) TEFRA Section 242( b)( 2) Elections. Notwithstanding the other provisions of this Article XVII, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242( b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242( b)(2) ofTEFRA. 10. 02 Time and Manner of Distribution a) Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's required beginning date. b) Death ofParticipant Before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows: 1) If the Participant's surviving spouse is the Participant's sole designated Beneficiary, then, distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70 1/ 2, iflater. 2) If the Participant's surviving spouse is not the Participant's sole designated Beneficiary, then distributions to the designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. 3) If there is no designated Beneficiary as of September 30 of the year following the year of the Participant's death, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. 4) If the Participant's surviving spouse is the Participant's sole designated Beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this Section 10. 02( b), other than Section 10. 02( b)(1), will apply as if the surviving spouse were the Participant. For purposes of this Section 10. 02( b) and Section 10. 04, unless Section 10. 02( b)(4) applies, distributions are considered to begin on the Participant's required beginning date. If Section 10. 02( b)( 4) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section 10. 02( b)(I). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's required beginning date ( or to the Participant's surviving spouse before the date distributions are required to begin to the surviving spouse under Section 10. 02( b)( 1)), the date distributions are considered to begin is the date distributions actually commence. c) Forms ofDistribution. Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, asof the first distribution calendar year distributions will be made in accordance with Sections 10. 03 and 10. 04. If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401( a)(9) and the Treasury Regulations. 10. 03 Required Minimum Distributions During Participant's Lifetime a) Amount ofRequired Minimum Distribution For Each Distribution Calendar rear. During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of: 1) The quotient obtained by dividing the Participant's Account Balance by the distribution 17  a)( period set forth in the Uniform Lifetime Table found in Section 1.401 ( 9)- 9, A-2, of Q& the Final Income Tax Regulations using the Participant' age s as of the Participant' birthday s in the distribution calendar year; or 2) If the Participant's sole designated Beneficiary for the distribution calendar year is the Participant's spouse, the quotient obtained by dividing the Participant's Account Balance by the number in the Joint and Last Survivor Table set forth in Section 1.401 ( a)(9)- 9, Q& A-3, of the regulations using the Participant's and spouse' s attained ages as of the Participant's and spouse' s birthdays in the distribution calendar year. b) Lifetime Required Minimum Distributions Continue Through rear ofParticipants Death. Required minimum distributions will be determined under this Section 10. 03 beginning with the first distribution calendar year and continuing up to, and including, the distribution calendar year that includes the Participant's date of death. 10. 04 Required Minimum Distributions After Participant's Death a) Death On or After Date Distributions Begin. 1) Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's designated Beneficiary, determined as follows: i) The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. ii) If the Participant's surviving spouse is the Participant's sole designated Beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Participant's death using the surviving spouse's age as of the spouse' s birthday in that year. For distribution calendar years after the year of the surviving spouse' s death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse' s birthday in the calendar year of the spouse' s death, reduced by one for each subsequent calendar year. iii) If the Participant's surviving spouse is not the Participant' s sole designated Beneficiary, the designated Beneficiary's remaining life expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. 2) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no designated Beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the Participant's remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. b) Death Before Date Required Distributions Begin. 1) Participant Survived by Designated Beneficiary. If the Participant dies before the date required distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is 18  the quotient obtained by dividing the Participant's Account Balance by the remaining life expectancy of the Participant's designated Beneficiary, determined as provided in Section 10. 04( a). 2) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no designated Beneficiary as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. 3) Death ofSurviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving spouse is the Participant's sole designated Beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under Section 10. 02( b)(1), this Section 10. 04( b) will apply as if the surviving spouse were the Participant. 10. 05 Definitions a) Designated Beneficiary. The individual who is designated by the Participant ( or the Participant' s surviving spouse) as the Beneficiary of the Participant's interest under the Plan and who is the designated Beneficiary under Code Section 401 (a) (9) and Section 1.401 ( a) (9)- 4 of the regulations. b) Distribution Calendar iear. A calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant's required