Common use of Optional Forms of Distribution Clause in Contracts

Optional Forms of Distribution. Effective as of January 1, 2008, the optional forms of retirement benefit include a single life annuity with a certain period of ten years with survivorship percentages of 60, 75, and 100 percent. The single life annuity with modified cash refund of the Participant’s Required Contribution Account is hereby deleted for participants who retire after September 1, 2008. The benefit payable on any optional annuity form available (other than the Normal Form) shall be the Actuarial Equivalent of the Normal Form. Election of an optional form is subject to the qualified election provisions of Article VI. Any form of distribution for a retirement benefit must meet the following limitations: (a) The Contingent Annuitant shall be the Participant’s spouse or, on the date benefit payments are to commence, the Present Value of the amount to be paid to the Participant while living shall be greater than 50 percent of the total benefit to be paid to the Participant and the Beneficiary or, if applicable, the Contingent Annuitant. (b) An interest only optional form is not available. (c) The entire interest of the Participant shall be distributed either (1) over the life of the Participant or over the lives of the Participant and an individual named as his Beneficiary or Contingent annuitant or (2) over a period not extending beyond the life expectancy of the Participant or the life expectancies of the Participant and such named Beneficiary. (d) If the Participant dies after benefit payments begin and before his entire interest has been distributed, the form of distribution in effect before his death may continue unchanged. If the form of distribution is changed, the Participant’s remaining interest shall be distributed at least as rapidly as under the form of distribution in effect before the Participant died. The optional forms of death benefit are any annuity that is an optional form of retirement benefit. The optional forms of death benefit from the Participant’s Account shall also include a single sum payment. If the Participant dies before beginning to receive a distribution of his retirement benefits, any form of distribution for a death benefit must meet the following limitations. (a) If the Participant did not name an individual as his Beneficiary to receive any death benefit payable under the Death Benefits Section of Article V, such death benefit shall be distributed within five years of the Participant’s death. (b) If the Participant named an individual as Beneficiary to receive any death benefit payable under the Death Benefits Section of Article V, such death benefit may be distributed over the life (or over a period not extending beyond the life expectancy) of such individual. Payment to the Beneficiary must begin within one year of the Participant’s death. If such individual is the Participant’s surviving spouse, payments need not begin until the date the Participant would have been 70½. If the Participant’s surviving spouse dies before such payments begin, then the provisions of (e) and (f) shall be applied to the spouse’s Beneficiary as if the spouse were the Participant. Payments to a child shall be treated as though made to the surviving spouse if the payments will be made to the spouse when the child reaches the age of majority. Any annuity contract distributed shall be nontransferable. A form of distribution for retirement or death benefits shall be available to a Participant or Beneficiary only if the annual distribution under such form is at least equal to the quotient of the Present Value of such benefit as of the date distribution is to begin, divided by the life expectancy of the Participant, Beneficiary, or joint and last survivor expectancy of the Participant and Beneficiary, as appropriate. If the distribution is in a form other than a life annuity, the life expectancy of the Participant (and/or Beneficiary, if the spouse is the Beneficiary) may be recalculated after distribution begins, but no more frequently than annually. In the case of a Beneficiary who is not the Participant’s spouse, life expectancy shall be calculated when benefits start and minimum payments for any twelve-consecutive month period will be based on such life expectancy minus the number of whole years since the distribution first began. The life expectancy or joint and last survivor expectancy shall be computed by use of the return multiples contained in Section 1.72-9 of the regulations under the Code.

Optional Forms of Distribution. Effective as of January 1, 2008, the optional forms of retirement benefit include a single life annuity with a certain period of ten years with survivorship percentages of 60, 75, and 100 percent. The single life annuity with modified cash refund of the Participant’s Required Contribution Account is hereby deleted for participants who retire after September 1, 2008. The benefit payable on any optional annuity form available (other than the Normal Form) shall be the Actuarial Equivalent of the Normal Form. Election of an optional form is subject to the qualified election provisions of Article VI. Any form of distribution for a retirement benefit must meet the following limitations: (a) The Contingent Annuitant shall be the Participant’s spouse or, on the date benefit payments are to commence, the Present Value of the amount to be paid to the Participant while living shall be greater than 50 percent of the total benefit to be paid to the Participant and the Beneficiary or, if applicable, the Contingent Annuitant. (b) An interest only optional form is not available. (c) The entire interest of the Participant shall be distributed either (1) over the life of the Participant or over the lives of the Participant and an individual named as his Beneficiary or Contingent annuitant or (2) over a period not extending beyond the life expectancy of the Participant or the life expectancies of the Participant and such named Beneficiary. (d) If the Participant dies after benefit payments begin and before his entire interest has been distributed, the form of distribution in effect before his death may continue unchanged. If the form of distribution is changed, the Participant’s remaining interest shall be distributed at least as rapidly as under the form of distribution in effect before the Participant died. The optional forms of death benefit are any annuity that is an optional form of retirement benefit. The optional forms of death benefit from the Participant’s Account shall also include a single sum payment. If the Participant dies before beginning to receive a distribution of his retirement benefits, any form of distribution for a death benefit must meet the following limitations. (a) If the Participant did not name an individual as his Beneficiary to receive any death benefit payable under the Death Benefits Section of Article V, such death benefit shall be distributed within five years of the Participant’s death. (b) If the Participant named an individual as Beneficiary to receive any death benefit payable under the Death Benefits Section of Article V, such death benefit may be distributed over the life (or over a period not extending beyond the life expectancy) of such individual. Payment to the Beneficiary must begin within one year of the Participant’s death. If such individual is the Participant’s surviving spouse, payments need not begin until the date the Participant would have been 70½. 72. (For Participants who attained (or who would have attained) age 70½ prior to January 1, 2020, the reference to age 72 in the preceding sentence shall be replaced with age 70½.) If the Participant’s surviving spouse dies before such payments begin, then the provisions of (e) and (f) shall be applied to the spouse’s Beneficiary as if the spouse were the Participant. Payments to a child shall be treated as though made to the surviving spouse if the payments will be made to the spouse when the child reaches the age of majority. majority Any annuity contract distributed shall be nontransferable. A form of distribution for retirement or death benefits shall be available to a Participant or Beneficiary only if the annual distribution under such form is at least equal to the quotient of the Present Value of such benefit as of the date distribution is to begin, divided by the life expectancy of the Participant, Beneficiary, or joint and last survivor expectancy of the Participant and Beneficiary, as appropriate. If the distribution is in a form other than a life annuity, the life expectancy of the Participant (and/or Beneficiary, if the spouse is the Beneficiary) may be recalculated after distribution begins, but no more frequently than annually. In the case of a Beneficiary who is not the Participant’s spouse, life expectancy shall be calculated when benefits start and minimum payments for any twelve-consecutive month period will be based on such life expectancy minus the number of whole years since the distribution first began. The life expectancy or joint and last survivor expectancy shall be computed by use of the return multiples contained in Section 1.72-9 of the regulations under the Code.

Optional Forms of Distribution. Effective as of January 1, 2008, the optional forms of retirement benefit include a single life annuity with a certain period of ten years with survivorship percentages of 60, 75, and 100 percent. The single life annuity with modified cash refund of the Participant’s Required Contribution Account is hereby deleted for participants who retire after September 1, 2008. The benefit payable on any optional annuity form available (other than the Normal Form) shall be the Actuarial Equivalent of the Normal Form. Election of an optional form is subject to the qualified election provisions of Article VI. Any form of distribution for a retirement benefit must meet the following limitations: (a) The Contingent Annuitant shall be the Participant’s spouse or, on the date benefit payments are to commence, the Present Value of the amount to be paid to the Participant while living shall be greater than 50 percent of the total benefit to be paid to the Participant and the Beneficiary or, if applicable, the Contingent Annuitant. (b) An interest only optional form is not available. (c) The entire interest of the Participant shall be distributed either (1) over the life of the Participant or over the lives of the Participant and an individual named as his Beneficiary or Contingent annuitant or (2) over a period not extending beyond the life expectancy of the Participant or the life expectancies of the Participant and such named Beneficiary. (d) If the Participant dies after benefit payments begin and before his entire interest has been distributed, the form of distribution in effect before his death may continue unchanged. If the form of distribution is changed, the Participant’s remaining interest shall be distributed at least as rapidly as under the form of distribution in effect before the Participant died. The optional forms of death benefit are any annuity that is an optional form of retirement benefit. The optional forms of death benefit from the Participant’s Account shall also include a single sum payment. If the Participant dies before beginning to receive a distribution of his retirement benefits, any form of distribution for a death benefit must meet the following limitations. (a) If the Participant did not name an individual as his Beneficiary to receive any death benefit payable under the Death Benefits Section of Article V, such death benefit shall be distributed within five years of the Participant’s death. (b) If the Participant named an individual as Beneficiary to receive any death benefit payable under the Death Benefits Section of Article V, such death benefit may be distributed over the life (or over a period not extending beyond the life expectancy) of such individual. Payment to the Beneficiary must begin within one year of the Participant’s death. If such individual is the Participant’s surviving spouse, payments need not begin until the date the Participant would have been 70½. the “Applicable Age” (as defined in Section 8.7(f)(7)). If the Participant’s surviving spouse dies before such payments begin, then the provisions of (e) and (f) shall be applied to the spouse’s Beneficiary as if the spouse were the Participant. Payments to a child shall be treated as though made to the surviving spouse if the payments will be made to the spouse when the child reaches the age of majority. Any annuity contract distributed shall be nontransferable. A form of distribution for retirement or death benefits shall be available to a Participant or Beneficiary only if the annual distribution under such form is at least equal to the quotient of the Present Value of such benefit as of the date distribution is to begin, divided by the life expectancy of the Participant, Beneficiary, or joint and last survivor expectancy of the Participant and Beneficiary, as appropriate. If the distribution is in a form other than a life annuity, the life expectancy of the Participant (and/or Beneficiary, if the spouse is the Beneficiary) may be recalculated after distribution begins, but no more frequently than annually. In the case of a Beneficiary who is not the Participant’s spouse, life expectancy shall be calculated when benefits start and minimum payments for any twelve-consecutive month period will be based on such life expectancy minus the number of whole years since the distribution first began. The life expectancy or joint and last survivor expectancy shall be computed by use of the return multiples contained in Section 1.72-9 of the regulations under the Code.