Los Angeles County Municipal Code Part 6 Distributions

A.

A Participant who terminates employment with the County for any reason is eligible to receive the entire balance in his Account in a single lump-sum payment. To obtain a distribution under the Plan, such Participant shall submit an application for benefits to the Administrative Committee, furnishing such information as the Administrative Committee or its duly authorized Agent may require. All distributions hereunder shall be made as soon as administratively practicable after the Participant's application is filed and approved by the Administrative Committee.

B.

Notwithstanding subsection A of this Section, if a Participant's Account does not exceed $1,000 at the time of his termination of employment with the County, the Administrative Committee may instruct the Trustee to distribute the entire Account balance in a single lump-sum payment as soon as administratively practicable without the Participant's consent.

C.

Notwithstanding any provision of the Plan to the contrary, distributions will be made by the Required Beginning Date in accordance with Code section 401(a)(9) and the regulations thereunder and Section 5.18.180. Such provisions shall override any inconsistent distribution election.

D.

A Participant has not terminated employment with the "County" for the purposes of this Section when he or she moves to another employer whose Eligible Employees also participate in the Plan.

(Ord. 2004-0063 § 1 (part), 2004.)

A.

Upon the Participant's death prior to distribution, the Participant's Beneficiary is eligible to receive the entire balance in the Participant's account in a single lump-sum payment. To request a distribution under the Plan, the Beneficiary shall submit an application for benefits to the Administrative Committee, furnishing such information as the Administrative Committee or its duly authorized Agent may require. Distributions hereunder shall be made as soon as administratively practicable after the Beneficiary's application is filed pursuant to this subsection and approved by the Administrative Committee.

B.

Notwithstanding subsection A of this Section, even if a Beneficiary does not file an application, the Administrative Committee may distribute the Participant's Account balance to the Beneficiary, without his or her consent, as soon as administratively practicable following the notice to the Administrative Committee of the Participant's death.

C.

Notwithstanding any provision of the Plan to the contrary, distributions will be made by the Required Beginning Date in accordance with Code section 401(a)(9) and the regulations thereunder and Section 5.18.18. Such provisions shall override any inconsistent distribution election.

(Ord. 2004-0063 § 1 (part), 2004.)

A Participant's Account balances will be valued as of the Valuation Date immediately preceding the date of distribution.

(Ord. 2004-0063 § 1 (part), 2004.)

A.

Generally. Notwithstanding any provision of the Plan to the contrary, all distributions must comply with Code section 401(a)(9) and the Treasury Regulations thereunder. The only permissible distribution option under this Plan is a lump-sum distribution and, thus, the Participant's entire account balance must be distributed no later than the Required Beginning Date, as defined below.

B.

Definitions. For the purposes of this Section, the following terms, when used with initial capital letters, shall have the following respective meanings:

"Designated Beneficiary": The person who is designated as the Beneficiary as defined in Part 1, Section 5.18.020 and is the designated beneficiary under section 401(a)(9) of the Code and section 1.401(a)(9)-4 of the Treasury Regulations.

"Required Beginning Date": Except as otherwise described in this Section, the Required Beginning Date of any Participant shall be the April 1 of the calendar year following the later of (a) the calendar year he terminates employment or (b) the calendar year he attains age 70 1/2. If the Participant dies before distributions begin, the Required Beginning Date is December 31 of the calendar year containing the fifth anniversary of the Participant's death.

(Ord. 2004-0063 § 1 (part), 2004.)

Participants may not borrow any amounts from their Accounts.

(Ord. 2004-0063 § 1 (part), 2004.)

If the Participant or his or her Beneficiary cannot be located within four years of the date the Participant's interest under the Plan is first payable, the entire balance in his Account shall be forfeited; provided, however, that the amount so forfeited shall be reinstated as of the date of the subsequent filing of an application for benefits under the Plan. Amounts restored to lost Participant's Account in accordance with this Section shall be restored out of forfeitures as provided in Section 5.18.210. The restoration of a lost Participant's Account balance will not be treated as an Annual Addition. Payment of the restored amount shall be paid in a lump-sum benefit no later than 60 days after the lost Participant's application is approved by the Administrative Committee.

(Ord. 2004-0063 § 1 (part), 2004.)

The amount of a Participant's Account which is forfeited in accordance with Section 5.18.200 shall be placed in one or more forfeiture accounts held in the Trust Fund and applied to restore the accounts of lost Participants who have filed an application for benefits that has been approved by the Administrative Committee, if any. Earnings on the forfeiture account

held in the Trust Fund shall be used to reduce administrative expenses of the Plan in accordance with Part 7, Section 5.18.300.

(Ord. 2004-0063 § 1 (part), 2004.)

A.

Rollovers From the Plan.

A Participant who is entitled to receive an Eligible Rollover Distribution from the Plan may direct the Administrative Committee to have the distribution transferred in a lump sum directly to the trustee of an Eligible Retirement Plan; provided, however, that an eligible deferred compensation plan described in Code section 457(b), which is maintained by an eligible employer described in Code section 457(e)(1)(A), may receive an Eligible Rollover Distribution from the Plan only if it provides for separate accounting as required under Code section 402(c)(10).

In order for a transfer to be made with respect to a Participant under this Section, (a) the Participant must designate in writing the Eligible Retirement Plan to receive the transferred amounts; (b) the Participant must timely provide the Administrative Committee with adequate information to enable the Administrative Committee to determine that the transferee plan is an Eligible Retirement Plan described above; (c) the entire amount to be transferred must be an Eligible Rollover Distribution; and (d) the Participant must have received proper notice in accordance with Code section 402(f).

A Participant's surviving spouse who becomes eligible to receive a distribution on the Participant's death under Section 5.18.160, or an Alternate Payee who is a Participant's spouse or former spouse who becomes eligible to receive a distribution under Section 5.18.360 shall be treated as the Participant for purposes of this Section. For Plan Years beginning on and after January 1, 2010, a Participant's surviving Beneficiary who is not a spouse and becomes eligible to receive a distribution on the Participant's death under Section 5.18.160 of the Plan, may elect a direct trustee-to-trustee rollover to an individual retirement account or individual retirement annuity (as defined in Code section 408) established to receive such distribution in accordance with Code section 402(c)(11).

Notwithstanding the foregoing provisions of this section, upon termination of the Plan, in the event a Participant or Beneficiary either (i) does not make a distribution election within 30 days after the Plan furnishes the notice described in this section; or (ii) cannot be located after the Plan Administrator has made reasonable attempts to locate such Participant or Beneficiary in order to provide the notice described in this section, distribution will be made on behalf of the Participant in the form of an automatic direct rollover to an individual retirement plan (or, in the case of a non-spouse Beneficiary, an inherited individual retirement plan within the meaning of Code section 402(c)(11)). Prior to distribution, each Participant or Beneficiary shall be furnished with a notice that satisfies the requirements of 29 C.F.R. section 2550.404a-3(e)(1) unless he or she cannot be located after reasonable attempts by the Plan Administrator. Amounts automatically rolled over pursuant to this section shall be subject to a contract between the Administrative Committee and the transferee entity that is consistent with 29 C.F.R. section 2550.404a-3(d)(2). The Administrative Committee will be deemed to have satisfied its fiduciary obligations with respect to plan distributions, selection of a transferee entity and investment of funds with that transferee entity provided such actions are taken in accordance with this section. Upon completion of the direct rollover of a Participant's or Beneficiary's Account pursuant to this subsection, such Participant or Beneficiary releases and agrees, on his or her behalf and on behalf of his or her heirs and beneficiaries, to hold harmless the County, the Board of Supervisors, the Administrative Committee, the TPA, the Trustee and any agent, officer or employee of any of them, from and against any claim, demand, loss, liability, costs or expense (including reasonable attorneys' fees) caused by or arising out of the automatic rollover of funds to the

individual retirement plan, including without limitation any diminution in value or losses incurred within the individual retirement plan.

B.

Rollovers to the Plan Not Permitted.

The Plan shall not accept any cash or property that constitutes an Eligible Rollover Distribution from an Eligible Retirement Plan.

(Ord. 2014-0017 § 1, 2014; Ord. 2004-0063 § 1 (part), 2004.)