On a distributable event under § 9-2 {“Distributable events – Retirement”}, § 9-3 {“Distributable events – Disability”}, or <cite data-path="|22A|§9-5">§ 9-5 {“Distributable events – Other termination of employment”} of this subtitle</cite>, a member may elect to have his or her vested account distributed under 1 of the options described in subsection (b) of this section.
The election shall be made by written notice filed with the Board.
Subject to § 9-8 {“Minimum distribution rules”}of this subtitle, distribution of a member’s vested account balance shall be paid (in the case of a lump-sum cash payment under subsection (b)(1) of this section) or commence (in the case of installment payments or an annuity contract under subsections (b)(2) or (3) of this section) as soon as administratively practicable after receipt of the written notice required by paragraph (2) of this subsection.
Distributions will be made in any 1 of the following forms, as elected by the member:a lump-sum cash payment.
Periodic installment payments (monthly, quarterly, or annually) over a fixed period of years, as elected by the member.
Subject to <cite data-path="|22A|§9-8">§ 9-8 {“Minimum distribution rules”} of this subtitle</cite>, the amount payable each year under this option is:the balance of the member’s vested account at the end of the preceding year, multiplied by
a fraction, the numerator of which is 1 and the denominator of which is the number of years remaining in the installment payment period.
Purchase of a single-premium, nontransferable, immediate or deferred annuity contract that provides one of the following payment options:a single-life annuity under which:the member will receive equal monthly payments during his or her lifetime; and
no further benefits will be paid after the member’s death;
a joint and survivor annuity under which:the member will receive equal monthly payments during his or her lifetime; and
on the member’s death, monthly payments will be made to the member’s designated beneficiary during the beneficiary’s lifetime, if the beneficiary survived the member; or
a guaranteed annuity under which:the member will receive equal monthly payments during his or her lifetime; and
on the member’s death:if the member dies before receiving monthly payments for a guaranteed period of 5, 10, or 15 years, as elected by the member, the member’s designated beneficiary will continue to receive monthly payments for the remainder of the guaranteed period; and
if the member dies after receiving monthly payments for at least the guaranteed period, no further benefits will be paid after the member’s death.
Ord. 14-216
A member who terminates employment on or after the member’s normal retirement age is entitled to receive the value of the member’s:
if applicable, Mandatory Employee Contribution Sub-Account;
Employer Contribution Sub-Account; and
if applicable, Rollover Contribution Sub-Account.
Ord. 14-216
A member who terminates employment and transfers his or her service to another City retirement plan is entitled to receive the value of the member’s:
mandatory employee contribution sub-account; and
if applicable, rollover contribution sub-account.
Ord. 20-458
“SSA determination of disability” means a written determination, made by a Social Security Administration’s disability determination service, hearing officer, or administrative law judge, that a member is disabled under the federal Social Security Act.
If a member terminates employment as a result of a disability incurred while an employee and provides the Board of Trustees with the SSA determination of disability required by subsection (c) of this section, the member is entitled to receive the value of the member’s:if applicable, Mandatory Employee Contribution Sub-Account;
Employer Contribution Sub-Account (determined as of the date the member terminated employment); and
if applicable, Rollover Contribution Sub-Account.
A member who seeks to receive a distribution of his or her Employer Contribution Sub-Account as a result of a disability must provide the Board of Trustees, in accordance with procedures established by the Board, with an SSA determination of disability no later than 36 months after the member’s termination.
If a determination of disability is not provided by that deadline:the member is not eligible to receive the distribution as a result of a disability; but
the member might still be eligible for a distribution of that sub-account under§ 9-2 {“Distributable events – Retirement”} or <cite data-path="|22A|§9-5">§ 9-5 {“Distributable events – Other termination of employment”} of this subtitle</cite>.
The final determination of whether a member is eligible to receive a distribution of the member’s Employer Contribution Sub-Account as a result of a disability:is made by the Board of Trustees; and
is final and binding on all persons, subject to the rights of appeal and review under § 2-17 {“Administrative appeal”} and <cite data-path="|22A|§2-18">§ 2-18 {“Judicial and appellate review”} of this article</cite>.
Ord. 14-216
On the death of a member while an employee (or before receiving a distribution under § 9-2 {“Distributable events – Retirement”}, § 9-3 {“Distributable events – Disability”}, or <cite data-path="|22A|§9-5">§ 9-5 {“Distributable events – Other termination of employment”} of this subtitle</cite>), the member’s beneficiary is entitled to receive, as soon as administratively practicable after the Board of Trustees has determined that the member has died, a lump-sum cash payment in an amount equal to the value of the member’s:if applicable, Mandatory Employee Contribution Sub-Account;
Employer Contribution Sub-Account; and
if applicable, Rollover Contribution Sub-Account.
In accordance with procedures established by the Board, a member may designate a beneficiary to receive death benefits from the Plan.
The designation remains in effect until the member changes it by making a new designation in accordance with the Board’s procedures. A new designation revokes all prior designations.
To receive a death benefit under this section, the member’s beneficiary must establish to the satisfaction of the Board that the member has died.
If the Board determines that a member has died and there is no valid beneficiary designation, or if all designated beneficiaries predecease the member, the member’s account will be paid to the member’s surviving spouse, or, if there is no surviving spouse, to the member’s estate.
If the member’s estate would be entitled to receive the death benefit under paragraph (1) of this subsection, but no estate is opened within 1 year of the member’s death, the amount of the death benefit is forfeited and will be applied in accordance with Subtitle 8 {“Forfeitures”} of <cite data-path="|22A">this article</cite>.
If any question or dispute arises regarding payment of a death benefit under this section, the Board may:distribute the death benefit to the member’s estate;
retain the death benefit until the Board is satisfied that the right to payment has been finally determined; or
deposit the amount of the death benefit into any court of competent jurisdiction.
A determination by the Board under this section is final and binding on all persons, subject to the rights of appeal and review under § 2-17 {“Administrative appeal”} and <cite data-path="|22A|§2-18">§ 2-18 {“Judicial and appellate review”} of this article</cite>.
To the extent required by IRC § 401(a)(37), the value of a member’s account payable to the beneficiary of a member who dies while performing “qualified military service”, as defined in IRC § 414(u)(5), will be determined as if the member died while an active employee.
Ord. 14-216
Ord. 15-329
Ord. 20-458
If a member terminates employment before the member’s normal retirement age and not as a result of disability or death, the member is entitled to receive the following:
if applicable, the value of the member’s Mandatory Employee Contribution Sub-Account and Rollover Contribution Sub-Account; and
if vested under <cite data-path="|22A|§7-2">§ 7-2 {“Vesting: Employer Contribution Sub-Account”} of this article</cite>, the value of the member’s Employer Contribution Sub-Account.
Ord. 14-216
No loan against nor in-service withdrawal from any part of a member’s account is permitted.
Ord. 14-216
In this section, the following terms have the meanings indicated.
“Distributee” means:an employee or former employee;
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 IRC § 414(p), with regard to the interest of the spouse or former spouse; or
the employee’s or former employee’s nonspouse designated beneficiary, if the direct rollover is made to an individual retirement account or annuity (“IRA”) under IRC § 408(a) or § 408(b) that:is established on behalf of the designated beneficiary; and
is treated as an inherited IRA under IRC § 402(c)(11).
“Eligible retirement plan” means any of the following that accepts a distributee’s eligible rollover distribution:an individual retirement account under IRC § 408(a);
an individual retirement annuity under IRC § 408(b);
a qualified plan under IRC § 401(a);
an annuity plan under IRC § 403(a);
an eligible deferred compensation plan under IRC § 457(b) that is maintained by a state, a political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that agrees to separately account for amounts transferred from the Retirement Savings Plan;
an annuity contract described in IRC § 403(b); and
a Roth IRA described in IRC § 408A.
“Eligible rollover distribution” means any distribution of all or any portion of the balance to the credit of the distributee.
“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 10 years or more;
any distribution to the extent that it is required under IRC § 401(a)(9);
any distribution that is made on account of hardship; and
subject to subparagraph (iii) of this paragraph, the portion of any distribution that is not includible in gross income.
Notwithstanding subparagraph (ii)(D) of this paragraph, a portion of a distribution does not fail to be an “eligible rollover distribution” merely because the portion consists of after-tax employee contributions that are not includible in gross income.
Sub-subparagraph (A) of this subparagraph applies only if the portion is transferred to:a traditional individual retirement account or annuity under IRC § 408(a) or § 408(b) or a Roth individual retirement account or annuity under IRC § 408A; or
a qualified plan under IRC § 401(a) or § 403(a) or an annuity contract under IRC§ 403(b), if the plan or contract provides for:separate accounts for amounts so transferred (including earnings on the transferred amounts); and
separate accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible.
Notwithstanding any provision of <cite data-path="|22A">this article</cite> that would otherwise limit a distributee’s election under this section, a distributee may elect, at the time and in the manner directed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
Ord. 14-216
In this section, the following terms have the meanings indicated.
“Designated beneficiary” means the individual who is designated by the member (or the member’s surviving spouse) as the beneficiary of the member’s interest under the Plan and who is the designated beneficiary under IRC § 401(a)(9) and 26 CFR § 1.401(a)(9)-4.
“Distribution calendar year” means 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 preceding the calendar year that contains the member’s required beginning date.
The required minimum distribution for the member’s first distribution calendar year will be made on or before the member’s required beginning date.
The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the member’s required beginning date occurs, will be made on or before December 31 of that distribution calendar year.
“Life expectancy” means life expectancy as computed by use of the Single Life Table in 26 CFR 1.401(a)(9)-9, Q&A-1.
“Member’s account balance” means:the account balance as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year), increased by
the amount of any contributions made and allocated or forfeitures allocated to the account as of dates in the valuation calendar year after the valuation date, and decreased by
distributions made in the valuation calendar year after the valuation date.
The account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year.
“Required beginning date” means April 1 of the calendar year following the calendar year in which the member attains age 70½.
Notwithstanding any other provision of this section, distributions under <cite data-path="|22A">this article</cite> must be made in accordance with a reasonable good faith interpretation of IRC § 401(a)(9), as applicable to the Retirement Savings Plan.
As of the first distribution calendar year, distributions to a member, if not made in a lump-sum, may only be made over 1 of the following periods:the life of the member;
the joint lives of the member and a designated beneficiary;
a period certain not extending beyond the life expectancy of the member; or
a period certain not extending beyond the joint life and last survivor expectancy of the member and a designated beneficiary.
The member’s entire interest must be distributed to the member no later than the April 1 of the calendar year following the later of:the calendar year in which the member attains age 70½; or
the calendar year in which the member terminates employment with a participating employer.
If the member dies before distribution is made, the member’s entire interest must be distributed no later than December 31 of the calendar year in which the 5<sup>th</sup> anniversary of the member’s death occurs.
As of the first distribution calendar year, unless a member’s interest is distributed on or before the required beginning date in the form of an annuity purchased from an insurance company or in a lump-sum, distributions must be made in accordance with subsections (e) and (f) of this section.
If the member’s interest is distributed in the form of an annuity purchased from an insurance company, distributions under the annuity must be made in accordance with a reasonable good-faith interpretation of IRC § 401(a)(9).
During a member’s lifetime, the minimum amount that must be distributed for each calendar year is the lesser of:the quotient obtained by dividing the member’s account balance by the distribution period in the Uniform Lifetime Table set forth in 26 CFR § 1.401(a)(9)-9, Q&A-2, using the member’s age as of the member’s birthday in the distribution calendar year; or
if the member’s sole designated beneficiary for the distribution calendar year is the member’s spouse, the quotient obtained by dividing the member’s account balance by the number in the Joint and Last Survivor Table set forth in 26 CFR § 1.401(a)(9)-9, Q&A-3, using the member’s and spouse’s attained ages as of the member’s and spouse’s birthdays in the distribution calendar year.
Required minimum distributions must be determined under this subsection beginning with the first distribution calendar year and continuing up to, and including, the distribution calendar year that includes the member’s date of death.
If a member dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that must be distributed for each distribution calendar year after the year of the member’s death is the quotient obtained by dividing the member’s account balance by the longer of the remaining life expectancy of the member or the remaining life expectancy of the member’s designated beneficiary, determined as follows:The member’s remaining life expectancy is calculated by using the age of the member in the year of death, reduced by one for each subsequent year.
If the member’s surviving spouse is the member’s sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the member’s death by using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated by using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year.
If the member’s surviving spouse is not the member’s sole designated beneficiary, the designated beneficiary’s remaining life expectancy is calculated using the age of
the beneficiary in the year following the year of the member’s death, reduced by one for each subsequent year.
If a member dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year after the year of the member’s death, the minimum amount that must be distributed for each distribution calendar year after the year of the member’s death is the quotient obtained by dividing the member’s account balance by the member’s remaining life expectancy, calculated by using the age of the member in the year of death, reduced by one for each subsequent year.
Ord. 14-216
If a member experiences a distributable event under § 9-2 {“Distributable events – Retirement”}, § 9-3 {“Distributable events – Disability”}, § 9-4 {“Distributable events – Death”} or § 9-5 {“Distributable events – Other termination of employment”}, and if the member’s total vested account balance on the date of the event is less than $1,000, then the total vested account balance will automatically be distributed to the member (or the member’s beneficiary) without the member (or beneficiary) applying as soon as administratively practicable after 90 days following the distributable event.
Ord. 20-458