(A) Should any member cease to be an employee of the city before attaining his voluntary retirement age for any reason other than his death or retirement, or after his voluntary retirement age, and not be entitled to a pension, he shall be paid all or part of his accumulated contributions in the pension savings fund that he shall demand in writing on forms furnished by the Board.
(B) Should a member die before his retirement becomes effective, his accumulated contributions in the pension savings fund at the time of his death shall be paid to the person or persons as he has nominated by written designation duly executed and filed with the Board. In the event there is no designated person or persons surviving the member, his accumulated contributions shall be paid to his legal representative.
(C) If any member dies without heirs and without having nominated a beneficiary as provided in division (B) of this section, his accumulated contributions in the pension savings fund at the time of his death may be used to pay his reasonable burial expenses, provided that he leave no other estate sufficient for such purpose.
(D) Refunds of accumulated contributions may be made in installments according to rules and regulations as the Board may adopt from time to time.
(E) This division applies to distributions made on or after January 1, 1993. Notwithstanding any provision of this chapter to the contrary that would otherwise limit a distributee's election under this division, 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.
(1) Definitions.
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 years or more; any distribution to the extent such distribution is required under § 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities).
ELIGIBLE RETIREMENT PLAN. An eligible retirement plan is an individual retirement account described in § 408(a) of the Internal Revenue Code, an individual retirement annuity described in § 408(b) of the Internal Revenue Code, an annuity plan described in § 403(a) of the Internal Revenue Code, or a qualified trust described in § 401(a) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity.
DISTRIBUTEE. A 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 § 414(p) of the Internal Revenue Code, or an eligible domestic relations order under Public Act 46 of 1991, being M.C.L.A. 38.1701 et seq., are distributees with regard to the interest of the spouse or former spouse.
DIRECT ROLLOVER. A direct rollover is a payment by the retirement system to the eligible retirement plan specified by the distributee.
(2) If a distribution is one to which §§ 401(a)(11) and 417 of the Internal Revenue Code do not apply, such distribution may commence less than 30 days after the notice required under § 1.411(a)-(c) of the Income Tax Regulations is given, provided that the following occurs.
(a) The Board clearly informs the member that the member has a right to a period of at least 30 days after receiving the notice to consider the decision of whether or not to elect a distribution (and, if applicable, a particular distribution option).
(b) The member, after receiving the notice, affirmatively elects a distribution.
(F) This division shall apply to distributions made after December 31, 2001.
(1) For purposes of the direct rollover provisions in division (E) of this section, an eligible retirement plan shall also mean an annuity contract described in § 403(b) of the Internal Revenue Code and an eligible plan under § 457(b) of the Internal Revenue Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to account separately for amounts transferred into such plan from the retirement system. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in § 414(p) of the Internal Revenue Code, or an eligible domestic relations order under Public Act 46 of 1991, being M.C.L.A. 38.1701 et seq.
(2) For purposes of the direct rollover provisions in division (E) of this section, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be paid only to an individual retirement account or annuity described in § 408(a) or (b) of the Internal Revenue Code, or to a qualified defined contribution plan described in § 401(a) or 403(a) of the Internal Revenue Code that agrees to account separately for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.
(‘83 Code, § 36.46) (Am. Ord. 2002-007, passed 5-13-02)