(a) If a member ceases to be employed by the city, for any reason except his or her retirement or death, before he or she has satisfied the age and service requirements for retirement provided in § 39.227, he or she shall be paid his or her accumulated contributions account upon his or her written request filed with the board.
(b) Should a member die and no retirement allowance or pension becomes or will become payable by the retirement system on account of his or her death, except as provided in § 39.245, his or her accumulated contributions account at the time of his or her death shall be paid to that person as he or she shall have nominated by written designation duly executed and filed with the board. If there is no designated person surviving the member, his or her accumulated contributions shall be paid to his or her legal representative.
(c) If a member dies without heirs, and without having nominated a beneficiary as provided in division (b) above, his or her accumulated contributions account at the time of his or her death may be used to pay his or her burial expenses, not to exceed a reasonable sum to be determined by the board, provided that he or she leaves no other estate sufficient for that purpose.
(d) Payments of refunds of accumulated contributions, as provided in this section, may be paid in a single sum or in installments according to the rules and regulations as the board may from time to time adopt.
(e) (1) Notwithstanding any provisions of the plan to the contrary that would otherwise limit a distributee's election under this rule, 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.
(2) For the purposes of this division (e), the following definitions shall apply throughout this rule.
DIRECT ROLLOVER. A payment by the plan to the eligible retirement plan specified by the distributee.
DISTRIBUTEE. Includes an employee or former employee. Effective January 1, 2007, a DISTRIBUTEE further includes a nonspouse beneficiary who is a designated beneficiary as defined by Internal Revenue Code § 401(a)(9)(E). However, a nonspouse beneficiary may only make a direct rollover to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity shall be treated as an "inherited" individual retirement account or annuity.
ELIGIBLE RETIREMENT PLAN.
1. The following that accepts a distributee's eligible rollover distribution;
a. An individual retirement account described in § 408(a) of the Internal Revenue Code;
b. An individual retirement annuity described in § 408(b) of the Internal Revenue Code;
c. An annuity plan described in § 403(a) of the Internal Revenue Code;
d. A qualified trust described in § 401(a) of the Internal Revenue Code;
e. On or after January 1, 2008, to a Roth IRA described in § 408A of the Internal Revenue Code; or
f. With respect to any distribution made after December 31, 2001, an annuity contract described in § 403(b) of the Internal Revenue Code or an eligible plan described 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 separately account for amounts transferred into the plan from this plan.
An eligible rollover distribution does not include any other distribution which the Internal Revenue Service does not consider eligible for rollover treatment, such as certain corrective distributions necessary to comply with the provisions of § 415 of the Internal Revenue Code.
2. The definition of ELIGIBLE RETIREMENT PLAN shall also apply in the case of a distribution to a surviving spouse.
ELIGIBLE ROLLOVER DISTRIBUTION. 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 the following:
1. 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;
2. Any distribution to the extent the distribution is required under § 401(a)(9) of the Internal Revenue Code; and
3. With respect to any distribution made prior to January 1, 2002, 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). With respect to any distribution made after December 31, 2001, 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 included in gross income. However, that portion may be transferred 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 separately account for amounts so transferred, including separately accounting for the portion of the distribution which is includable in gross income and the portion of the distribution which is not so includable.
(1957 Rev. Ords., § 2.530; 1992 Code, § 35-42) (Ord. 5-05, passed 1-10-2005; Ord. 118-16, passed 12-20-2016)