Fort Walton Beach Council agenda — 02-22-11 regular — reading text

IfIf DIVIZAIDIVIZAI tt rr rr•••• r r W114110 19191RLWJ 9WIN11010111 i rill vivivewoffaNNI awl r 1. General Rules. A. Effective Date. Effective as of January 1 1989, the Plan will pay all benefits in accor ance with a good faith interpretation of the requirements of Code Section 401( a)( 9) and the regulations in effect under that section, as applicable to a governmental plan within the meaning of Code Section 414( d). Effective on and after January 1, 2003, the Plan is also subject to the specific provisions contained in this Section. The provisions of this Section will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year. B. Precedence. The requirements of this Section will take precedence over any inconsistent provisions of the Plan. C. TEFRA Section 242( b)( 2) Elections. Notwithstanding the other provisions of this Section other than this su section l. C., 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 Ulan that related to Section 242( b)( 2) of TEFRA. 2. Time and Manner of Distribution. A. Required Be6nninp-,Date. The Member's entire interest will be distributed, or begin to be distributed, to the Member no later than the Member's required beginning date which shall not be later than April 1 of the calendar year following the later of the calendar year in which the Member attains age seventy and one -half (70 1 /2) or the calendar year in which the Member terminates employment with the City. B. Death of Member Before Distributions Be in. If the Member dies before distributions begin, the Member's entire interest will be distributed, or begin to be distributed no later than as follows: If the Member's surviving spouse is the Member'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 Member died, or by a date on or before December 31 of the calendar year in which the Member would have attained age 701/2, if later, as the surviving spouse elects. Page 29 of53 Pages  If the Member's surviving spouse is not the Member'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 Member died. If there is no designated beneficiary as of September 30 of the year following the year of the Member's death the Member's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Member' s death. If the Member's surviving spouse is the Member's sole designated beneficiary and the surviving spouse dies after the Member but before distributions to the surviving spouse begin, this subsection C 2. B., other than subsection 23.0), will apply as if the surviving M spouse were the Member. FL 0 For purposes of this subsection 2. B., distributions are considered to begin on the Member's required beginning date or, if subsection a) a 2. B.( 4) applies, the date of distributions are required to begin to the U- UL surviving spouse under subsection 2. B.( 1). If annuity payments irrevocably commence to the Member before the Member's required a> beginning date ( or to the Member's surviving spouse before the date E distributions are required to begin to the surviving spouse under M 0 subsection 2. B.( 1)), the date distributions are considered to begin is the date distributions actually commence. M Cd T C. Death After Distributions Be in. If the Member dies after the required distribution of benefits has begun, the remaining portion of the Member's c interest must be distributed at least as rapidly as under the method of distribution before the Member's death. L O D. Form of Distribution. Unless the Member's interest is distributed in the form T of an annuity purchased from an insurance company or in a single sum on or T T before the required beginning date, as of the first distribution calendar year r- distributions will be made in accordance with this Section. If the Member's M co interest is distributed in the form of an annuity purchased from an insurance T company, distributions thereunder will be made in accordance with the requirements of Section 401( a)( 9) of the Code and Treasury regulations. O r Any part of the Member's interest which is in the form of an individual a) account described in Section 414( k) of the Code will be distributed in a E manner satisfying the requirements of Section 401( a)( 9) of the Code and r Treasury regulations that apply to individual accounts. Q 3. Determination of Amount to be Distributed Each Year. A. General Requirements. If the Member's interest is paid in the form of annuity istn utions under the Plan, payments under the annuity will satisfy the following requirements: The annuity distributions will be paid in periodic payments made at intervals not longer than one year. Page 30 of53 Pages  The Member's entire interest must be distributed pursuant to Section 6, Section 7, Section 9, or Section 10 ( as applicable) and in any event over a period equal to or less than the Member's life or the lives of the Member and a designated beneficiary, or over a period not extending beyond the life expectancy of the Member or of the Member and a designated beneficiary. The life expectancy of the Member, the Member's spouse, or the Member's beneficiary may not be recalculated after the initial determination for purposes of determining benefits. B. Amount Required to be Distributed by Required Beginning Date. The amount that must be distributed on or before the Member's required beginning date ( or, if the Member dies before distributions begin, the date c distributions are required to begin under Section 7 ) is the payment that is a required for one payment interval. The second payment need not be made C until the end of the next payment interval even if that payment interval ends 0 N in the next calendar year. Payment intervals are the periods for which C a payments are received, e. g., monthly. All of the. Member's benefit accruals a as of the last day of the first distribution calendar year will be included in the UL U. calculation of the amount of the annuity payments for payment intervals ending on or after the Member's required beginning date. C a) E M C. Additional Accruals After First Distribution Calendar Year. Any additional 0 benefits accruing tot e Member in a calendar year after the first distribution ti calendar year will be distributed beginning with the first payment interval M CO ending in the calendar year immediately following the calendar year in which T such amount accrues. c c 0 General Distribution Rules. L 0 A. The amount of an annuity paid to a Member's beneficiary may not exceed the maximum determined