Article 6. Method and Time of Distribution
4.36.601 Method of distribution.
Distribution under this plan shall, subject to Section 4.38.602, be made or commence after a reasonable administrative period following the occurrence of the event which occasions the distribution or a change in the method of receipt thereof, but no later than sixty days after the close of the plan year in which the participant reaches normal retirement date, or if the participant continues in employment beyond normal retirement date, the year in which such participant dies or retires. Distribution shall be made by the trustee in accordance with whichever of the following methods or combination thereof the participant, in their sole discretion, shall elect.
A. One lump sum payment;
B. Cash payments in approximately equal monthly, quarterly, semi-annual or annual installments over a period of years certain which period may be based on but not exceed the life expectancy of the participant or of the participant and the participant’s beneficiary, but shall, in any event, be subject to the following limitation:
If the amount to be distributed each year under subsection B is based upon the life expectancy of either the participant or the participant and the beneficiary, the amount to be distributed each year must at least be equal to the quotient obtained by dividing the participant’s account balance at the beginning of the year by the applicable life expectancy or expectancies. The life expectancies shall be determined from tables set forth in IRS Regulation 1.401(a)(9)-9, as now in effect and as amended from time to time.
Effective for distributions on and after January 1, 2002, the plan will apply the minimum distribution requirements of Section 401(a)(9) of the code in accordance with the final regulations under Section 401(a)(9), notwithstanding any other provision of the plan to the contrary.
If the participant makes no selection of the method and timing of distribution, the account balance shall be paid in one lump sum at their normal retirement date. (Ord. 7263-NS § 1, 2012)