§ 2-428. Refund of member's accumulated contributions.

(a)

Should any member, who has not satisfied the age and service requirements for retirement provided in section 2-415, cease to be employed by the city, for any reason except member's disability retirement, member shall be paid such member's accumulated contributions standing to member's credit in the members savings fund upon member's request in writing filed with the board.

(b)

Upon the death of a member member's accumulated contributions standing to member's credit in the members savings fund at the time of member's death shall be paid to such person or persons as member shall have nominated by written designation duly executed and filed with the board; provided that no pension becomes payable by the retirement system on account of member's death, except as provided in section 2-425. If no such designated person survives the member, or if member made no such nomination of beneficiary, member's said accumulated contributions shall be paid to member's estate.

(c)

A former member, who has not satisfied vesting requirements but has thirty (30) or more months of credited service, may leave member's accumulated contributions in member's credit for provisions of the Reciprocal Retirement Act to be effective until the timely election of option of payment. If by April 1 of the calendar year in which the former member attains the age of seventy and one-half (70½) there has been no election of option of payment, any balance standing to member's credit in member's savings fund shall be transferred to the income fund.

(d)

Payment of accumulated contributions, as provided in this section, may be made in a single sum or in installments as the board shall determine.

(e)

Code §401(a)(31) direct rollovers. A member may elect to have all or any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the member in a direct rollover, which is a payment by the retirement system to the eligible retirement plan specified by the member.

(1)

Eligible rollover distribution. An eligible rollover distribution is any distribution of all or any portion of the refund of accumulated contributions paid to a member under this section, except that an eligible rollover distribution does not include:

a.

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 member or for the joint lives (or joint life expectancies) of the member and the member's beneficiary, or for a specified period of ten (10) years or more;

b.

Any distribution to the extent such distribution is required under code § 401(a)(9);

c.

The portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation on city securities); and

d.

The portion of any distribution made on or after January 1, 2000 which is attributable to a hardship distribution described in code § 401(k)(2)(B)(i)(IV).

(2)

Eligible retirement plan. An eligible retirement plan is an individual retirement account described in code § 408(a), an individual retirement annuity described in code § 408(b), an annuity plan described in code § 403(a), or a qualified trust described in code § 401(a), that accepts the member'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.

(Ord. No. 638, § 1, 9-15-03; Ord. No. 671, § 1, 1-17-06)