288.08 TERMINATION OF SERVICE BEFORE RETIREMENT/DIRECT ROLLOVER DISTRIBUTIONS
   (a)   Forfeitures. Upon the forfeiture of any non-vested portion of a participant's accrued benefit, the amount of such forfeiture shall be credited against the future contributions of the employer under the Plan as provided under Section 288.03(a).
   (b)   Return of Contributions. A participant who terminates employment prior to satisfying the conditions for receipt of a retirement benefit (including the election to vest pursuant to Section 288.06(c)), the total amount of the contributions paid into the Pension Fund by such member including pick-up contributions (pursuant to Section 288.03(b)(6)) shall be refunded to him or her without interest. If any participant shall have returned to him or her the amount contributed, and shall afterward again become a member of the Bureau of Fire, he or she shall not be entitled to the pension designated until 20 years after his or her re-employment unless he or she shall return to the Pension Fund the amount withdrawn, in which event the period of 20 years shall be computed from the time the member first became a member of the Fire Department, excluding therefrom any period of time during which the member was not employed by the Fire Department.
   (c)   Direct Rollover of Eligible Rollover Distribution.
      (1)   This division (c) applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this division (c), 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.
      (2)   For purposes of applying this division (c):
         A.   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'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 Code; and the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities) and the portion of any distribution made on or after January 1, 2000, which is attributable to a hardship distribution described in Code Section 401(k)(2)(B)(i)(IV).
         B.   An "eligible retirement plan" is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified trust described in Section 401(a) of the 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.
         C.   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 Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse.
         D.   A "direct rollover" is a payment by the plan to the eligible retirement plan specified by the distributee.
      (3)   This section shall apply to distributions made after December 31, 2001.
         A.   Modification of definition of eligible retirement plan. For purposes of the direct rollover provisions in Section 288.08(c) of the Plan, an eligible retirement plan shall also mean an annuity contract described in Section 403(b) of the Code and an eligible plan under Section 457(b) of the 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 separately account for amounts transferred into such plan from this Plan. 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 relation order, as defined in Section 414(p) of the Code.
         B.   Modification of definition of eligible rollover distribution to include after-tax employee contributions. For purposes of the direct rollover provisions in Section 288.08(c) of the Plan, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includable in gross income. However, such portion may be paid only to an individual retirement account or annuity described in Section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in Section 401(a) or 403(a) of the Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includable in gross income and the portion of such distribution which is not so includable.
(Ord. 02-02. Passed 4-8-02.)