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

of service credit in defined benefit plans maintained by the Employer. For purposes of this Plan, any such transfer shall not be considered a distribution to the Participant subject to spousal consent as described in Section 9. 10. b) 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 paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover. c) Definitions. For the purposes of Subsection ( b), the following definitions shall apply: 1) 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: i) 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; ii) any distribution to the extent such distribution is required under section 401 (a) (9) of the Code; and iii) the portion of any other distribution( s) that is not includible in gross income. 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 gross income. However, such portion may be transferred only to an individual retirement account or annuity described in section 408( a) or ( b) of the Code, or to a 14  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. 2) Eligible Retirement Plan. i) an individual retirement account described in section 408( a) of the Code or an individual retirement annuity described in section 408( b) of the Code ( collectively, an " IRA"); ii) an annuity plan described in section 403( a) of the Code; iii) an annuity contract described in section 403( b) of the Code, iv) 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; or v) a qualified plan described in section 401 (a) of the Code, that accepts the Distributee' s Eligible Rollover Distribution. 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 relations order, as defined in section 414( p) of the Code. 3) Distributee. Participant; in addition, the Participant's surviving spouse and the spouse former spouse who is the alternate payee under a qualified domestic relations or 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 payment by the Plan to the Eligible Retirement Plan specified by the Distributee. 9. 04 De Minimis Accounts. Notwithstanding the foregoing provisions of this Article, prior to January 1, 2002, if a Participant terminates service, and the value of his/ her Nonforfeitable Interest in his/ her Account is not greater than the dollar limit under section 411 ( a)( II)(A) of the Code, the Participant's benefit shall be paid ( to the extent it constitutes an Eligible Rollover Distribution) in the form of a direct rollover to the Plan Administrator's designated IRA, unless he/ she affirmatively elects to receive a cash payment or a Direct Rollover in accordance with procedures established by the Plan Administrator. On or after January 1, 2002, if a Participant terminates service, and the value of his/ her Nonforfeitable Interest in his/ her Account is less than $ 1, 000, the Participant's benefit shall be paid as soon as practicable to the Participant in a single lump sum distribution. If the value of the Participant's Account is at least $ 1, 000 but not more than the dollar limit under section 411 (a) 11) ( ( A) of the Code, the Participant may elect to receive his/ her Nonforfeitable Interest in his/ her Account. Such distribution shall be made as soon as practicable following the request, in a lump sum. For purposes of this Section, if a Participant' s Nonforfeitable Interest in his/ her Account is zero, the Participant shall be deemed to have received a distribution of such Nonforfeitable Interest in his/ her Account. 9. 05 Withdrawal of Voluntary Contributions. A Participant may upon written request withdraw a part of or the full amount of his/ her Voluntary Contribution Account. Such withdrawals may be made at any time, provided that no more than two ( 2) such withdrawals may be made during any calendar year. No forfeiture will occur solely as the result of any such withdrawal. 15  9. 06 Withdrawal of Deductible Employee Contributions. A Participant may upon written request withdraw a part of or the full amount of his/ her Deductible Employee Contribution Account. Such withdrawals may be made at any time, provided that no more than two ( 2) such withdrawals may be made during any calendar year. No forfeiture will occur solely as the result of any such withdrawal. 9. 07 In-Service Distribution from Rollover Account. Where elected by the Employer in the Adoption Agreement, a Participant that has a separate account attributable to rollover contributions to the Plan, may at any time elect to receive a distribution of all or any portion of the amount held in the Rollover Account. 9. 08 In-Service Distributions. Unless otherwise elected by the Employer in the Adoption Agreement, a Participant who has reached age 70- 1/ 2 regardless of his Nonforfeitable Interest in his/ her entire Employer Contribution Account, shall, upon written request, receive a distribution of a part of or the full amount of the balance in any or all of his vested Accounts. Such distributions may be requested at any time, provided that no more than two 2) such distributions may be made during any calendar year. 9. 09 Latest Commencement of Benefits. Notwithstanding anything to the contrary in this Article, benefits shall begin no later than the Participant's Required Beginning Date, as defined under Section 10. 05, or as otherwise provided in Section 10. 04. 9. 10 Spousal Consent. Notwithstanding the foregoing, if the Employer elected the Q]SA Election in the Adoption Agreement, a married Participant must first obtain his or her spouse's notarized consent to request a distribution other than a Qualified Joint and Survivor Annuity), withdrawal, or rollover under this Article IX. X. DISTRIBUTION REQUIREMENTS 10. 01 General Rules. a) Subject to the provisions of Article XII or XVII if so elected by the Employer in the Adoption Agreement, the requirements of this Article shall apply to any distribution of a Participant's interest and will take precedence over any inconsistent provisions of this Plan. Unless otherwise specified, the provisions of this Article X apply to calendar years beginning after December 31, 2002. With respect to distributions under the Plan made in or for Plan Years beginning on or after January 1, 2002 and prior to January 1, 2003, the Plan will apply the minimum distribution requirements of a)( section 401 ( a)(9) of the Code in accordance with the regulations under section 401 ( 9) that were proposed on January 17, 2001, notwithstanding any provision of the Plan to the contrary. b) All distributions required under this Article shall be determined and made in accordance with the regulations under section 401 (a) (9) of the Code, and the minimum distribution incidental benefit a)( requirement of section 401 ( 9)(G) of the Code. c) Limits on Distribution Periods. As of the first Distribution Calendar Year, distributions to a Participant, if not made in a single- sum, may only be made over one of the following periods: 1) The life of the Participant; or 2) The joint lives of the Participant and a designated Beneficiary; or 3) A period certain not extending beyond the life expectancy of the Participant; or 4) A period certain not extending beyond the joint and last survivor expectancy of the Participant and a designated Beneficiary.