(a) Normal Form of Benefit Payment. The normal form for payment of retirement benefits shall be a monthly annuity for the life of the participant.
(b) Commencement of Benefits. A participant may elect to commence receiving distribution of retirement benefits as of the first day of the month coincident with or next following the date on which retirement occurs with an eligibility to receive benefits, or may defer such payments to a date not later than the required date for commencement of benefits determined under subsection (c) hereof.
Unless the participant otherwise elects, payment of benefits under the Plan shall commence not later than sixty days following the close of the Plan year, in which occurs the latest of the following dates:
(1) The date when the participant attains normal retirement age;
(2) The tenth anniversary of the year in which the participant commenced participation in the Plan; or
(3) The date when the participant terminates service with the employer.
(c) Required Distributions.
(1) Notwithstanding any other provision of this Plan, the entire benefit of any participant who becomes entitled to benefits prior to his or her death shall be distributed either:
A. Not later than the required beginning date; or
B. 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).
If a participant who is entitled to benefits under this Plan dies prior to the date when his or her entire interest has been distributed to him or her after distribution of his or her benefits has begun in accordance with paragraph (c)(1)B. hereof, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under paragraph (c)(1)B. hereof as of the date of his or her death.
(2) If a participant who is entitled to benefits under this Plan dies before distribution of his or her 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. However, 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. Further, if the surviving spouse dies before the distributions to such spouse begin, this paragraph shall be applied as if the surviving spouse were the employee.
(3) For purposes of this subsection, the following definitions and procedures shall apply:
A. "Required beginning date" means 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.
B. "Designated beneficiary" means any individual designated by the employee under this Plan according to its rules.
C. 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 issued by the Secretary of the Treasury).
D. The life expectancy of an employee and/or an employee's spouse (other than in the case of a life annuity) may be redetermined, but not more frequently than annually.
(d) Personal Right of Participant. Each participant's right to receive any benefits hereunder is personal and expires on such participant's death. 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 file an election hereunder or revocation of an election shall be final and binding on all persons.
(Ord. 2138. Passed 3-15-93.)