Fort Walton Beach Council agenda — 02-08-11 regular — reading text

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 2. B., other than subsection 2. B.( 1), will apply as if the surviving spouse were the Member. 0 For purposes of this subsection 2. B., distributions are considered to N c 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 UL U- surviving spouse under subsection 2. B.( 1). If annuity payments irrevocably commence to the Member before the Member's required as 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 ti the date distributions actually commence. M CO r C. Death After Distributions Be in. If the Member dies after the required distribution of enefts has begun, the remaining portion of the Member's interest must be distributed at least as rapidly as under the method of distribution before the Member's death. O D. Form of Distribution. Unless the Member'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, as of the first distribution calendar year ti distributions will be made in accordance with this Section. If the Member's M 00 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 Section 401( a)( 9) of the Code and Treasury regulations. O Any part of the Member's interest which is in the form of an individual C 1) 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 t Treasury regulations that annly to individual accounts. a 3. Determination of Amount to be Distributed Each Year. A. General Requirements. If the Member's interest is paid in the form of annuity istri utions under the Plan, payments under the annuity will satisfy the following requirements: M 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 determininLy benefits. B. The Amount Required- to be Distributed -by Required Beginning Date. 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 FL 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 in the next calendar year. Payment intervals are the periods for which 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 LL UL calculation of the amount of the annuity payments for payment intervals ending on or after the Member's required beginning date. 0 E m C. Additional Accruals After First Distribution Calendar Year. Any additional 0 benefits accruing to the Member in a calendar year after the first distribution r. calendar year will be distributed beginning with the first payment interval M 00 ending in the calendar year immediately following the calendar year in which a such amount accrues. C m 4. General Distribution Rules. L O A. The amount of an annuity paid to a Member's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of Code Section 401( a)( 9)( G), and effective for any annuity commencing on or after January 1, 2008, the minimum distribution incidental benefit rule under ti Treasury Regulation Section 1. 401( a)( 9) -6, Q & A -2. M 00 B. The death and disability benefits provided by the Plan are limited by the L Q incidental benefit rule set forth in Code Section 401( a)( 9)( G) and Treasury Regulation Section 1. 401- 1( b)( 1)( 1) or any successor regulation thereto. As c a a result, the total death or disability benefits payable may not exceed 25% of E z the cost for all of the Members' benefits received from the retirement system. v c 5. Definitions. a A. Designated Beneficiarv. The individual who is designated as the beneficia e P an anE is t e designated beneficiary under Section 401( a)( 9) of t e the Code and Section 1. 401( a)( 9) - 1, Q & A -4, of the Treasury regulations. B. Distribution Calendar Year. A calendar year for which a minimum distribution is required. For distributions beginning before the Member's death, the first distribution calendar year is the calendar year immediately Page 31 of53 Pages  cedinLy the calendar year which contains the date. For distributions beginning after the Member's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to Section 7. SECTION 19 S. MISCELLANEOUS PROVISIONS. r ; or : : r : : i : 1AIMIRAM111 r:" : : : • CC aa CC p91 : : :. : : : 00 NN CC ILIL