Common use of Distribution of DROP Funds Clause in Contracts

Distribution of DROP Funds. Within 45 days of termination of employment, the employee participating in the DROP must choose one, or a non-inconsistent combination of, the following distribution methods to receive payment(s) from his/her individual DROP account: 1) A lump sum distribution to the employee; AND/OR 2) A lump sum direct rollover to another qualified plan to the extent allowed by federal law and in accordance with any procedures established by the Macomb County Board of Commissioners or the Retirement System for such rollovers. Failure to elect one of the above options and receive such distribution within 60 days of termination of employment shall result in the termination of any interest paid on said account. All benefit payments under the Plan shall be made as soon as practicable after entitlement thereto, but in no event later than April 1 following the later of: 1) The calendar year in which the primary member attains age 70½ , or 2) The calendar year in which the employment is terminated. If the accumulated balance in any former employee’s account is more than $1,000 but less than $5,000 (or such other amount as provided in the Internal Revenue Code, particularly Section 411(a)(11)(A)), then the Retirement System, in its sole discretion, shall have the option of distributing the former employee’s entire account, in the form of a lump sum, to an individual retirement plan.

Distribution of DROP Funds. Within 45 days of termination of employment, the employee participating in the DROP must choose one, or a non-inconsistent combination of, the following distribution methods to receive payment(s) from his/her individual DROP account: 1) A lump sum distribution to the employee; AND/OR 2) A lump sum direct rollover to another qualified plan to the extent allowed by federal law and in accordance with any procedures established by the Macomb County Board of Commissioners or the Retirement System for such rollovers. Failure to elect one of the above options and receive such distribution within 60 days of termination of employment shall result in the termination of any interest paid on said account. All benefit payments under the Plan shall be made as soon as practicable after entitlement thereto, but in no event later than April 1 following the later of: 1) The calendar year in which the primary member attains age 70½ , or 2) The calendar year in which the employment is terminated. If the accumulated balance in any former employee’s 's account is more than $1,000 but less than $5,000 (or such other amount as provided in the Internal Revenue Code, particularly Section 411(a)(11)(A)), then the Retirement System, in its sole discretion, shall have the option of distributing the former employee’s 's entire account, in the form of a lump sum, to an individual retirement plan.