Section 4. Automatic Rollovers:

In the event of a mandatory distribution greater than $1,000, in accordance with the provisions of section _____ of the plan, if the participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the participant in a direct rollover or to receive the distribution directly, then the plan administrator will pay the distribution in a direct rollover to an individual retirement plan designated by the plan administrator. For purposes of determining whether a mandatory distribution is greater than $1000, the portion of the participant’s distribution attributable to any rollover contribution is included.

(Note to reviewer: The blank above should be filled in with the plan section number which corresponds to the mandatory distributions provisions of LRM #44.)

(Note to reviewer: A plan that is described in IRC 414(k), relating to a defined benefit plan where the benefit is based partly on the balance of the participant’s separate account, may not be a Pre-approved Plan. (However, this rule will not be applied to prohibit a Pre-approved Plan’s acceptance of rollover contributions.) In addition, a Standardized Pre-approved defined benefit plan may not provide for employee contributions. Accordingly, a Standardized Pre-approved defined benefit plan may not include a deemed IRA under IRC 408(q).)

(Note to reviewer: If an employer intends that this plan will accept rollovers from defined contribution plans to increase the annuity benefits otherwise payable under the plan, the plan must specifically provide for such rollovers and must specify the types of rollover contributions it will accept and from which type of plans. The plan must also define how the rollover amounts are converted to additional annuity benefits for the participant and a surviving spouse, and other provisions necessary for benefits under the plan to be definitely determinable with respect to such rollovers.