(A) Each participant who becomes a former participant (or his or her beneficiary in the case of a deceased former participant) shall be entitled to a distribution of the entire balances in his or her account and participant account payable collectively in accordance with this section.
(B) Benefits under paragraph (A) above shall be distributed in one of the following methods:
(1) In a lump sum representing the full amount distributable at the time of distribution and determined by reference to the balances in the former participant’s account and participant account as of the settlement date (or as of the later trust fund valuation date referred to in § 31.030(H)(2), if applicable); or
(2) In periodic payments of substantially equal amounts for a specified number of years not in excess of the lesser of 20 years or the life expectancy of the former participant or that of the former participant and his or her designated beneficiary. Such periodic payments shall be made annually. Such life expectancy shall be determined in accordance with the applicable regulations promulgated under the Internal Revenue Code. If the former participant’s spouse is not the designated beneficiary, the method of distribution selected must assure that at least 50% of the present value of the amount available for distribution is paid within the life expectancy of the former participant.
(C) When distribution is made in installment payments under paragraph (B)(2) above, the person or persons entitled to such distributions shall continue to share in the allocations provided for in § 31.028(C). The amount of the first such installment payment shall be determined by reference to the balances in the former participant’s account and participant account as of the settlement date and the amount of any subsequent installment payment shall be determined by reference to the balances in such former participant’s account and participant account as of the same trust fund valuation date in the applicable succeeding year. In addition, each installment payment shall be deemed to be made from such former participant’s account and participant account in proportion to the balances in each such account. Each installment distribution from a former participant’s account or participant account shall also be charged against such account’s interest in any subfunds and the remaining trust fund in proportion to the balance of such account invested in such subfunds and the remaining trust fund. Upon the receipt by a former participant or his or her beneficiary of any lump sum payment or last installment payment, the interest of that former participant and his or her beneficiary or beneficiaries in the plan shall terminate.
(D) A participant or former participant may file an election with the Committee indicating the method for the payment of benefits provided by paragraph (B) above and such election, if filed in accordance with established administrative procedures, shall be binding upon the Committee. Notwithstanding the foregoing, in no event may a participant or former participant elect to receive his or her benefits hereunder in installments pursuant to paragraph (B)(2) above, unless the payment of such installments commences after such individual attains age 55 pursuant to paragraph (H)(1), rather than paragraph (H)(2), of the plan. In the absence of an effective election to the contrary, all benefits hereunder will be paid in the form of a lump sum distribution.
(E) The Trustee shall make delivery of authorized benefits to former participants or their beneficiaries by mailing them to the addresses designated by the Committee; and such delivery by the Trustee shall be adequate for all purposes.
(F) The amount which a former participant or beneficiary is entitled to receive at any time, and from time to time may be paid in cash (which may be made by Trustee’s check) or in securities, or in any combination thereof, provided no diminution in value results therefrom.
(G) (1) Whenever any person to whom payments are directed to be made shall be mentally or physically incapable of receiving or acknowledging receipt of such payments, neither the participating employers, the Committee nor the Trustee shall be under any obligation to see that a legal representative is appointed for such person or to make such payments to such legal representative, but the Trustee may make all or any portion of such payments in anyone or more of the following ways as the Committee determines:
(a) Directly to such person;
(b) To his or her conservator;
(c) To his or her spouse, child or other relative by blood or marriage;
(d) To the person with whom he or she resides; or
(e) By expending the same directly for the benefit of said person.
(2) Any such determination made by the Committee in good faith shall be conclusive on all persons, and neither the participating employers, the Committee or the Trustee shall be liable to any person as a result of such determination. Any payment made in accordance with this paragraph (G) shall fully discharge the participating employers, the Committee and the Trustee from all future liability with respect to such payment.
(H) Payment of any benefits payable hereunder to a former participant (or to his or her beneficiary if such former participant is deceased) shall commence as promptly as is reasonably possible after such former participant’s settlement date; subject, however, to the following rules:
(1) Subject to paragraph (H)(2), payment shall commence no later than the sixtieth day after the last day of the plan year in which such former participant’s employment with all participating employers and affiliates terminates; provided, however, that if the amount of a payment cannot be ascertained by such date or if the individual entitled to the payment cannot be located, a payment retroactive to such date may be made no later than 60 days after the earliest date on which the amount of such payment can be ascertained or such individual can be located; and
(2) Distribution of benefits to a former participant who has not attained at least normal retirement age shall not begin unless such former participant consents to receive an immediate distribution on such form and in such manner as the Committee may require; provided, however, that this paragraph (H)(2) shall not apply if the aggregate of the balances in such former participant’s account and participant account as of the settlement date does not exceed $3,500. If a former participant who is required to consent to an immediate distribution pursuant to this paragraph (H)(2) fails to do so in accordance with established administrative procedures, then his or her benefits shall remain in the trust fund. Distribution to such a nonconsenting former participant shall commence as soon as practicable after the trust fund valuation date coincident with or next following the date on which he or she attains his or her normal retirement age with the amount of such distribution determined by reference to the balances in his or her account and participant account as of such trust fund valuation date. In the event such a nonconsenting former participant dies before the payment of his or her benefits commences, the balances in his or her account and participant account as of the trust fund valuation date coincident with or immediately following his or her death shall be distributed to his or her beneficiary as soon as practicable after such trust fund valuation date.
(I) No distribution of any part of an account or participant account will be made before the termination of the employment of the participant entitled thereto except as provided in paragraph (P) below or § 31.031.
(J) From time to time, the Trustee shall make payments or distributions from the trust fund, constituting benefits, to or for the benefit of the persons who become entitled to such benefits in accordance with the provisions of the plan. Any such payment or distribution and any other payment or distribution from the trust fund permitted or required by the plan may be made out of the principal or income of the trust fund and may be made in money or in stock or other securities or other property or partly in one form and partly in another. After any person has received any such payment or distribution or after the same shall have been applied by the Trustee for his or her use and benefit, neither he or she nor his or her legal representatives, heirs or assigns nor any other person claiming any interest through or against him or her shall have any further right or claim under the trust with respect to his or her credits or interest under the trust used to provide the benefit or part of the benefit so paid, distributed or applied. In paying cash benefits under the trust, the Trustee may deduct from such payments any costs of liquidation which are reasonably attributable to any such payments.
(K) Benefits provided by the plan are only such as can be provided out of the trust fund. The participating employers shall not, at any time, have any legal or other obligation, responsibility or liability to make any further contribution to the trust, or to payor provide for the payment of any benefits other than those which can be so provided out of the trust fund.
(L) The Committee shall make available to all participants and former participants forms on which to designate beneficiaries to receive any benefits that may remain payable upon the death of any such participant or former participant. However, notwithstanding any provision to the contrary, in the case of the death of a married participant, any remaining benefits under this plan shall be paid to the surviving spouse of such participant or to another beneficiary but only if the spouse has consented to the designation of such other beneficiary. The spouse’s consent must be witnessed by a Plan Committee member or notary public. Where distribution to a participant began before said participant died and the participant dies before his or her entire interest is distributed to him or her, the remaining portion of interest is to be distributed to his or her beneficiary under the method of distribution that was in effect at the date of his or her death. Where a participant dies before receiving any distribution, his or her entire distribution must be distributed to the beneficiary in a lump sum no later than five years after the death of the participant.
(M) It shall be the responsibility of each participant or former participant to notify the Committee of his or her address, the address of any beneficiary or any change of any such addresses, for use in respect to the trust. The Committee may direct any communication, notice or statement to the address most recently designated for any such person, or if no such address has been designated to the Committee, then to the last address of such person shown on the participating employer’s records. Neither the Committee, Trustee or any participating employer shall be required to search for or ascertain the whereabouts of any participant, former participant or beneficiary for whom no address has been designated or for whom the last address of record, if any, is no longer current.
(N) When a benefit becomes payable to a former participant or to any beneficiary of such former participant, the Committee shall notify any such former participant or such beneficiary at his or her last known address, if any, as provided in paragraph (M) above. If the Committee is unable to locate such former participant or such beneficiary through such notification, and if the Committee fails to receive a claim for such benefit from any such person or any person validly acting in his or her behalf for a period of seven years following the date on which any such benefit becomes payable and if the whereabouts of such former participant and/or such beneficiary is then unknown to the Committee, and the person or persons next entitled thereto under the provisions of this plan (including any beneficiary of a missing former participant) is or are then known to the Committee, distribution of such benefit shall be made as though such former participant and/or such beneficiary had died at the end of said seven-year period and no amounts shall be payable thereafter to such former participant and/or beneficiary.
(O) If a former participant is subsequently re-employed by a participating employer or affiliate, no payments shall be made to such individual pursuant to this section while he or she is so re-employed.
(P) For plan years beginning on or after January 1, 1989, payment to any participant who has attained at least age 70.5 shall commence no later than April 1 of the calendar year following the calendar year in which such participant has attained at least age 70.5, regardless of whether he or she is still employed by any participating employer or affiliate. The amount of any distribution payable to a participant pursuant to this section shall be equal to the minimum amount which must be payable to such participant in order to satisfy the requirements of I.R.C. § 401(a)(9).
(Ord. MET 88-24, passed 6-10-1988; Ord. MET 89-2, passed 1-13-1989)