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

predecessor employer, service with such employer will be treated as service for the Employer. For purposes of determining years of service and Breaks in Service for the purposes of computing a Participant's nonforfeitable right to the Account balance derived from Employer Contributions, the twelve (12) consecutive month period will commence on the date the Employee first performs an hour of service and each subsequent twelve (12) consecutive month period will commence on the anniversary of such date. 7.03 Service After Break in Service. In the case of a Participant who has a Break in Service of at least five ( 5) years, all Periods of Service after such Breaks in Service will be disregarded for the purpose of determining the nonforfeitable percentage of the Employer- derived Account balance that accrued before such Break, but both pre- Break and post- Break service will count for the purposes of vesting the Employer- derived Account balance that accrues after such Break. Both Accounts will share in the earnings and losses of the fund. In the case of a Participant who does not have a Break in Service of at least five ( 5) years, both the pre- Break and post- Break service will count in vesting both the pre- Break and post- Break Employer- derived Account balance. In the case of a Participant who does not have any nonforfeitable right to the Account balance derived from Employer Contributions, years of service before a period of consecutive one (1) year Breaks in Service will not be taken into account in computing eligibility service if the number of consecutive one (1) year Breaks in Service in such period equals or exceeds the greater of five ( 5) or the aggregate number of years of service. Such aggregate number of years of service will not include any years of service disregarded under the preceding sentence by reason of prior Breaks in Service. If a Participant's years of service are disregarded pursuant to the preceding paragraph, such Participant will be treated as a new Employee for eligibility purposes. If a Participant's years of service may not be disregarded pursuant to the preceding paragraph, such Participant shall continue to participate in the Plan, or, if terminated, shall participate immediately upon reemployment. 7.04 Vesting Upon Normal Retirement Age. Notwithstanding Section 7. 01 of the Plan, a Participant shall have a Nonforfeitable Interest in his/ her entire Employer Contribution Account, to the extent that the balance of such Account has not previously been forfeited pursuant to Section 7. 06 of the Plan, if he/ she is employed on or after his/ her Normal Retirement Age. 7.05 Vesting Upon Death or Disability. Notwithstanding Section 7. 01 of the Plan, in the event of Disability or death, a Participant or his/ her Beneficiary shall have a Nonforfeitable Interest in his/ her entire Employer Contribution Account, to the extent that the balance of such Account has not previously been forfeited pursuant to Section 7. 06 of the Plan. 7.06 Forfeitures. Except as provided in Sections 7. 04 and 7. 05 of the Plan or as otherwise provided in this Section 7. 06, a Participant who separates from service prior to obtaining full vesting shall forfeit that percentage of his/ her Employer Contribution Account balance which has not vested as of the date such Participant incurs a Break in Service of five ( 5) consecutive years or, if earlier, the date such Participant receives, or is deemed under 12  the provisions of Section 9. 04 to have received, distribution of the entire Nonforfeitable Interest in his/ her Employer Contribution Account. No forfeiture will occur solely as a result of a Participant's withdrawal of Employee Contributions. Forfeitures shall be allocated in the manner described in Section 4. 02. 7.07 Reinstatement of Forfeitures. If the Participant returns to the employment of the Employer before incurring a Break in Service of five ( 5) consecutive years, any amounts forfeited pursuant to Section 7. 06 shall be reinstated to the Participant's Employer Contribution Account on the date of repayment by the Participant of the amount distributed to such Participant from his/ her Employer Contribution Account; provided, however, that if such Participant forfeited his/ her Account balance by reason of a deemed distribution, pursuant to Section 9. 04, such amounts shall be automatically restored upon the reemployment of such Participant. Such repayment must be made before the earlier of five ( 5) years after the first date on which the Participant is subsequently reemployed by the Employer, or the date the Participant incurs a Break in Service of five ( 5) consecutive years. VIII. BENEFITS CLAIM 8. 01 Claim of Benefits. A Participant or Beneficiary shall notify the Plan Administrator in writing of a claim of benefits under the Plan. The Plan Administrator shall take such steps as may be necessary to facilitate the payment of such benefits to the Participant or Beneficiary. 8. 02 Appeal Procedure. If any claim for benefits is initially denied by the Plan Administrator, the claimant shall file the appeal with the Employer, whose decision shall be final, to the extent provided by Section 15. 07. IX. COMMENCEMENT OF BENEFITS 9. 01 Normal and Elective Commencement of Benefits. A Participant who retires, becomes Disabled or incurs a severance from employment ( separation from service for Plan Years beginning before 2002) for any other reason may elect by written notice to the Plan Administrator to have his or her vested Account balance benefits commence on any date, provided that such distribution complies with Section 9. 02. Such election must be made in writing during the ninety (90) day period ending on the date as of which benefit payments are to commence. A Participant's election shall be revocable and may be amended by the Participant. The failure of a Participant to consent to a distribution while a benefit is immediately distributable, within the meaning of section 9. 02 of the Plan, shall be deemed to be an election to defer commencement of payment of any benefit. 9. 02 Restrictions on Immediate Distributions. Notwithstanding anything to the contrary in Section 9. 01 of the Plan, if the value of a Participant's vested Account balance is at least $ 1, 000, and the Account balance is immediately distributable, the Participant must consent to any distribution of such Account balance. The Participant's consent shall be obtained in writing during the ninety ( 90) day period ending on the date as of which benefit payments are to commence. No consent shall be required, however, to the extent that a distribution is required to satisfy section 401 (a) (9) or 415 of the Code. The Plan Administrator shall notify the Participant of the right to defer any distribution until the Participant's Account balance is no longer immediately distributable. Such notification shall include a general description of the material features, and an explanation of the relative values of, the optional forms of benefit available a)( under the Plan in a manner that would satisfy section 417( 3) of the Code, and shall be provided no less than thirty (30) and no more than ninety (90) days before the date as of which benefit payments are to commence. However, distribution may commence less than thirty (30) days after the notice described in the preceding sentence isgiven, provided ( i) the distribution is one to which sections 401 (a) 11) ( and 417 of the Code do not apply or, if the Q] SA Election is made by the Employer in the Adoption Agreement, the waiver requirements of Section 17. 04( a) are met; ( ii) the Plan Administrator clearly informs the Participant that the Participant 13  has a right to a period of at least thirty (30) days after receiving the notice to consider the decision of whether or not to elect a distribution ( and, if applicable, a particular distribution option); and (iii) the Participant, after receiving the notice, affirmatively elects a distribution. In addition, upon termination of this Plan if the Plan does not offer an annuity option ( purchased from a commercial provider) and if the Employer does not maintain another 401 (a) defined contribution plan, the Participant's Account balance will, without the Participant's consent, be distributed to the Participant in a lump sum. However, if the Employer maintains another 401 (a) defined contribution plan, the Participant's Account balance will be transferred, without the Participant's consent, to the other plan if the Participant does not consent to an immediate distribution. An Account balance is immediately distributable if any part of the Account balance could be distributed to the Participant ( or surviving spouse) before the Participant attains or would have attained (if not deceased) the later of Normal Retirement Age or age sixty- two ( 62). For purposes of determining the applicability of the foregoing consent requirements to distributions made before the first day of the first plan year beginning after December 31, 1988, the Participant's vested Account balance shall not include amounts attributable to accumulated deductible employee contributions within the 0)( meaning of section 72( 5) ( B) of the Code. 9.03 Transfer to Another Plan. a) If a Participant becomes eligible to participate in another plan maintained by the Employer that is qualified under section 401 (a) of the Code, the Plan Administrator shall, at the written election of such Participant, transfer all or part of such Participant's Account to such plan, provided the plan administrator for such plan certifies to the Plan Administrator that its plan provides for the acceptance of such a transfer. Such transfers shall include those transfers of the nonforfeitable interest of a Participant's Account made for the purchase