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

00 entity liable to defend the claim or liable for payment of the judgment or claim, from any liability, nor does this Section waive any provision of law affording the City immunity from any suit in whole U or part, or waive anv other substantive or procedural_rights the City may have. 0 a 3. This ;section shall not apply nor shall the City be responsible in any manner to defend or pay for claims arising out of acts or omissions of members of the Board which constitute felonies s or gross malfeasance or gross misfeasance in office. Q SECTION 2:5 6. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; ELIMINATION OF MANDATORY DISTRIBUTIONS. 1. Rollover distribution. A. General. This section applies to distributions made on or after January 1, 2002. 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 board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. Page 41 of 53 Pages M. Definitions. 1) Eligible rollover distribution: An eligible rollover distribution is 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 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 ( 10) years or more; any distribution to the extent such distribution is required under section 401( a)( 9) of the Code and the portion of any distribution that is not includable in gross income. A= y Effective January 1, 2002, any c portion of any distribution which would be includible in gross income a as after -tax employee contributes will be an eligible rollover distribution if the distribution is made to an individual retirement 0 N account described in section 408( a); to an individual retirement as annuity described in section 408( b); or to a qualified defined a contribution plan described in section 401( a) or 403( a) that agrees to UL UL separately account for amounts so transferred (and earnings thereon), c including separately accounting for the portion of such distribution as which is includible in gross income and the portion of such distribution which is not so includible; or on or after January 1, 2007, M 0 to a qualified defined benefit plan described in Code Section 401( a) ti or to an annuity contract described in Code Section 403( b), that M CO agrees to separately account for amounts so transferred (and earnings a thereon), including separately accounting for the portion of the v distribution that is includible in gross income and the portion of the distribution that is not so includible. L 0 2) Eligible retirement plan: An eligible retirement plan is an individual retirement account described in section 408( a) of the Code; an r individual retirement annuity described in section 408( b) ofthe Code; an annuity plan described in section 403( a) of the Code; effective ti January 1, 2002 an eligible deferred compensation plan described in M CO section 457( b) of the Code which is maintained by an eligible 0 employer described in section 457( e)( 1)( A) of the Code and which L 0 agrees to separately account for amounts transferred into such plan from this plan; effective January 1, 2002, an annuity contract c a described in section 403( b) of the Code; or a qualified trust described E M in section 401( a) of the Code; or effective January 1, 2008, a Roth a IRA described in Section 408A of the Code that accepts the distributee's eligible rollover distribution. This definition shall apply Q in the case ofan 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 th%-,, spouse and the employee's or former employee' s spouse or former spouse. Effective January 1, 20072 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. 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 FL rollover distribution or a Member contribution of an eligible rollover 0 distribution from a qualified plan described in section 401( a) or 403 (a) of the c Code, from an annuity contract described in section 403( b) of the Code or as a. from an eligible plan under section 457(b) of the Code which is maintained LL U. 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 a permissible Member requested transfers of funds from other retirement or E pension plans. 0 B. Member Rollover Contributions from IRAs. The system will accept a M tip Member rollover contribution of the portion of a distribution from an r- as individual retirement account or annuity described in section 408( a) or 408(b) of the Code that is eligible to be rolled over c O 3. Elimination of Mandatory Distributions. t 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 ti law, for an amount in excess of one -thousand dollars ($ 1, 000. 00), such distribution shall be made 00 from the Plan only upon written request of the Member and completion by the Member of a written election on forms designated by the Board, to either receive a cash lump sum or to rollover the lump sum amount. O a.: