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

section 401( a) or 403 (a) that agrees to UL LL separately account for amounts so transferred (and earnings thereon), LL including separately accounting for the portion of such distribution which is includible in gross income and the portion of such E distribution which is not so includible; or on or after January 1, 2007, to a qualified defined benefit plan described in Code Section 401( a) 0 or to an annuity contract described in Code Section 403( b), that CO agrees to separately account for amounts so transferred (and earnings r- thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible. 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) ofthe Code; an annuity plan described in section 403( a) of the Code; effective January 1, 2002, an eligible deferred compensation plan described in CO section 457( b) of the Code which is maintained by an eligible employer described in section 457( e)( 1)( A) of the Code and which 0 agrees to separately account for amounts transferred into such plan from this plan; effective January 1, 2002, an annuity contract described in section 403( b) of the Code; ,or a qualified trust described C E in section 401( a) of the Code; or effective January 1, 2008, a Roth IRA described in Section 408A of the Code that accepts the distributee' s eligible rollover distribution. This definition shall apply Q in the case of an eligible rollover distribution to the surviving spouse. 3) Distributee: A distributee includes an employee or former employee. in additi It also includes, the employee' s or former employee's surviving spouse IS a distributce with regard to the interest of the spouse and the employee's or former employee' s spouse or former spouse. Effective January 1, 2007, it further includes a nonspouse beneficiary who is a designated beneficiary as defined by Code Section 401( a)( 9)( E ). However, a nonspouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose ofreceiving Page 42 of53 Pages  the distribution and the account or annuity will be treated as an inherited" individual retirement account or annuity. 4. Direct rollover: A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. 2. Rollovers or Transfers into the Fund. On or after January 1, 2002, the Plan will accept, solely for the purpose ofpurchasing Credited Service as provided herein, permissible Member requested transfers of funds from other retirement or pension plans, Member rollover cash contributions and/ or direct cash rollovers of distributions made on or after January 1, 2002, as follows: A. Transfers and Direct Rollovers or Member Rollover Contributions from Other Plans. The Plan will accept either a direct rollover of an eligible rollover distribution or a Member contribution of an eligible rollover distribution from a qualified plan described in section 401( a) or 403( a) of the Code, from an annuity contract described in section 403( b) of the Code or from 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. The Plan will also accept legally permissible Member requested transfers of funds from other retirement or pension plans. B. Member Rollover Contributions from IRAs. The system will accept a Member rollover contribution of the portion of a distribution from an individual retirement account or annuity described in section 408( a) or 408( b) of the Code that is eligible to be rolled over 3. Elimination of Mandatory Distributions. Notwithstanding any other provision herein to the contrary, in the event this Plan provides for a mandatory ( involuntary) cash distribution from the Plan not otherwise required by law, for an amount in excess of one -thousand dollars ($ 1, 000. 00), such distribution shall be made from the Plan only upon written request of the Member and completion by the Member of a written election on forms desisnated by the Board, to either receive a cash lump sum or to rollover the lump sum amount. WRORE l•1 11 Page 43 of 53 Pages  12. la i • i • . : • i i i i i In folotiriq4twi t• j tut" mlLvmql LVIORtIVINKININt" i - r Ill All III Iowa oil! 9 5 M vp IMP I Wj LWM I 1 9 ME r - - • • •• i - : • 1 - - i - • 1• f - i • • - - C a I I Le d V C C L AU IT- i i - a wl a VA Api •• - i AM 4 9 ra 11110 X92 • IS 5 11111 WO 14 Li • AM • • ••• 00 r L wwi O r_ d f ' i • ; ; i E i Q Mill f- - - - Page 44 of 53 Pages  mss - NMI 1 r : : • WA r : I •I PM7M 15) Ni&VA0,0010• L•/ CL