280.50 NORMAL FORM
The normal form for payment of retirement benefit shall be a monthly annuity for the life of the participant. If the participant shall die before receiving monthly benefit payments that in total are at least equal to the participant’s accumulated contributions as of the retirement date, the beneficiary shall receive a payment in an amount equal to the difference between the total amount of monthly benefit payments paid and the amount of the participant’s accumulated contributions as of the retirement date.
280.51 OPTIONAL FORM
The automatic form of payment of retirement benefits shall be the normal form specified in Section 280.50 unless a participant elects to receive benefits in another form as provided herein. Each optional form of benefit payment shall be the actuarial equivalent of the normal form. A participant who retires hereunder may elect, by giving written notice to the employer at least thirty days prior to the date retirement benefit payments shall commence, to receive payment in one of the optional forms of payment hereafter set forth:
(a) Joint and Survivor Annuity. In lieu of receiving a retirement benefit paid in the normal form, a participant may elect to receive the benefit in the form of a joint and survivor annuity which shall provide monthly benefit payments to the participant for life and after the death of the participant shall occur, monthly payments shall be made to the beneficiary designated by the participant in an amount equal to fifty percent, sixty-six and two-thirds percent or 100% of the monthly amount paid to the participant, whichever the participant shall have elected. If the beneficiary shall die before the participant but after retirement benefit payments have commenced hereunder, there shall be no additional payments made after the death of the participant shall occur.
(b) Life Annuity with Period Certain. In lieu of receiving a retirement benefit paid in the normal form, a participant may elect to receive the benefit in the form of a life annuity with period certain which shall provide monthly benefit payments to the participant for life, but if the death of the participant shall occur before the period certain payment have been paid, then the monthly payments shall continue to the beneficiary designated by the participant until the total number of payments made to the participant and beneficiary combined shall be equal to the period certain. The participant may elect a period certain of sixty months or 120 months. If the participant shall die after receiving monthly payments equal to or greater than the period certain, there shall be no additional payments made after the death of the participant shall occur.
280.52 COMMENCEMENT OF BENEFITS
A participant may elect to commence receiving distribution of retirement benefits as of the early, normal, or late retirement date, whichever is applicable, or may defer such payments to a date not later than the required date for commencement of benefits determined under Section 280.53.
280.53 REQUIRED DISTRIBUTIONS
(a) Notwithstanding any other provisions of this plan, the entire benefit of any participant who becomes entitled to benefits prior to death shall be distributed either:
(1) Not later than the required beginning date, or
(2) Over a period beginning not later than the required beginning date and extending over the life of such participant or over the lives of such participant and a designated beneficiary (or over a period not extending beyond the life expectancy of such participant or the joint life expectancies of such participant and a designated beneficiary).
(b) If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of benefits has begun in accordance with subsection (a)(2) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under subsection (a)(2) as of the date of the death.
(c) If a participant who is entitled to benefits under this plan dies before distribution of the benefit has begun, the entire interest of such employee shall be distributed within five years of the death of such employee, unless the following sentence is applicable. If any portion of the employee’s interest is payable to (or for the benefit of) a designated beneficiary, such portion shall be distributed over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and such distributions begin not later than one year after the date of the employee’s death or such later date as provided by regulations issued by the Secretary of the Treasury, then for purposes of the five-year rule set forth in the preceding sentence, the benefit payable to the beneficiary shall be treated as distributed on the date on which such distributions begin. Provided, however, that notwithstanding the preceding sentence, if the designated beneficiary is the surviving spouse of the participant, then the date on which distributions are required to begin shall not be earlier than the date upon which the employee would have attained age seventy and one-half and, further provided, if the surviving spouse dies before the distributions to such spouse begin, this subsection shall be applied as if the surviving spouse were the employee.
(d) For purposes of this section, the following definitions and procedures shall apply:
(1) “Required beginning date” shall mean April 1 of the calendar year following the later of the calendar year in which the employee attains age seventy and one-half, or the calendar year in which the employee retires.
(2) The phrase “designated beneficiary” shall mean any individual designated by the employee under this plan according to its rules.
(3) Any amount paid to a child shall be treated as if it had been paid to the surviving spouse if such amount will become payable to the surviving spouse upon such child’s reaching majority (or other designated event permitted under regulations issues by the Secretary of the Treasury).
(4) For purposes of this section, the life expectancy of an employee and the employee’s spouse (other than in the case of a life annuity) may be redetermined but not more frequently than annually.
280.54 CHANGE OF BENEFIT ELECTION
Any election permitted hereunder may be revoked or a new election may be made within any applicable election period on a form and in a manner prescribed by the Plan Administrator and without the knowledge or consent of any applicable beneficiary.
280.55 PERSONAL RIGHT OF PARTICIPANT
Each participant’s right to receive any benefits hereunder is personal and shall expire upon the death of the participant. No heir, legatee, devisee, beneficiary, assignee or other person claiming by or through a participant shall have any interest in any benefits hereunder unless clearly and expressly so provided by the terms of this plan. A participant’s election, failure to make an election or revocation of an election hereunder shall be final and binding on all persons.
280.56 DIRECT ROLLOVERS
(a) This subsection applies to distributions made on or after December 31, 2001. 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 that is equal to at least five hundred dollars ($500.00) paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) This subsection shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee’s election under this section, if a distribution in excess of one thousand dollars ($1,000) is made and the distributee does not make an election under subsection (a) hereof and does not elect to receive the distribution directly, the Plan Administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer. The Plan Administrator shall notify the distributee in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
(c) For purposes of this section, the following definitions shall apply:
(1) “Eligible rollover distribution.”
(A) 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 years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9); and the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities).
(B) For purposes of the direct rollover provisions in this section of the plan, a portion of the distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includable in gross income. However, such portion may only be paid to an individual retirement account or annuity described in Section 408(a) or (b) of the Code, or to a 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 includable in gross income and the portion which is not includable.
(2) “Eligible retirement plan” is a qualified trust described in Code Section 401(a), an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(a), an annuity contract described in Code Section 403(b), an eligible deferred compensation plan described in Code Section 457(b), which is maintained by a state, political subdivision of a state, and 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.
(3) “Distributee” includes an employee or former employee. In addition, the employee’s or former employee’s surviving spouse and the employee’s or former employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), are distributees with regard to the interest of the spouse or former spouse.
(4) “Direct rollover” is a payment by the plan to the eligible retirement plan specified by the distributee or the Plan Administrator, if the distributee does not make an election.