(A) This section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the system to the contrary that would otherwise limit a distributee’s election under this section, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(B) Definitions.
(1) 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 of 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 section 401(a)(9) of the Internal Revenue Code (“IRC”); and the portion of any distribution that is not includible in gross income. Effective January 1, 2002, any portion of any distribution which would be includible in gross income will be an eligible rollover distribution if the distribution is made to (i) an individual retirement account described in IRS Section 408(a), to an individual retirement annuity described in IRC Section 408(b) or to a qualified contribution plan described in IRC Section 401(a); (ii) on or after January 1, 2007, to a qualified defined benefit plan described in IRC Section 401(a) or to an annuity contract described in IRC Section 403(b), that agrees to separately account for amounts so transferred (and earnings thereon), 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; or (iii) on or after January 1, 2008, to a Roth IRA described in IRC Section 408A.
(2) ELIGIBLE RETIREMENT PLAN. An eligible retirement plan is (i) an individual retirement account described in Section 408(a) of the IRC, (ii) an individual retirement annuity plan described in Section 408(b) of the IRC, (iii) an annuity plan described in Section 403(a) of the IRC, (iv) a qualified trust described in Section 401(a) of the IRC, (v) effective January 1, 2002, an eligible deferred compensation plan described in Section 457(b) of the IRC which is maintained by an eligible employer described in Section 457(e)(1)(A) of the IRC and which agrees to separately account for amounts transferred into such plan from this plan, (vi) effective January 1, 2002, an annuity contract described in Section 403(b) of the IRC, and (vii) effective January 1, 2008, a Roth IRA described in Section 408A of the IRC, that accepts the distributee’s
eligible rollover distribution. Effective January 1, 2002, this definition shall apply in the case of an eligible distribution to the surviving spouse.
(3) DISTRIBUTEE. A distributee includes an employee or former employee. In addition, the employee’s or former employee’s surviving spouse are distributees with regard to the interest of the spouse. Effective January 1, 2009, a distributee further includes a nonspouse beneficiary who is a designated beneficiary as defined by Section 401(a)(9)(E) of the IRC. However, a nonspouse beneficiary may roll over the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an “inherited” individual retirement account or annuity.
(4) DIRECT ROLLOVER. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.
(C) Rollovers or transfers into the Fund. On or after January 1, 2002, the Plan will accept, solely for the purpose of purchasing continuous service if the purchase of continuous service is allowed, permissible member requested transfers of funds from other retirement or pension plans, member rollover cash contributions and/or direct cash rollovers of distributions made on or after January 1, 2002, as follows:
(1) Transfers or direct rollovers or member rollover contributions from other plans. The Plan will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from a qualified plan described in Section 401(a) or 403(a) of the IRC, from an annuity contract described in Section 403(b) of the IRC or from an eligible plan under Section 457(b) of the IRC 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. The Plan will also accept legally permissible member requested transfers of funds from other retirement or pension plans.
(2) Member rollover contributions from IRAs. The Plan will accept a member rollover contribution of the portion of a distribution from an individual retirement account or annuity described in Section 408(a) or 408(b) of the IRC that is eligible to be rolled over and would otherwise be includible in gross income.
(Ord. 93-73, passed 9-21-93; Am. Ord. 2007-22, passed 1-9-07; Am. Ord. 2008-16, passed 12-11-07; Am. Ord. 2010-35, passed 6-22-10)