§ 40-271. Payment of Benefits.

(a)

Frequency of Payments. Pension benefits shall be paid monthly.

(b)

First Payment. The first payment shall begin on the first day of the month on which or after the Participant meets the requirements of section 40-211 (Right to Pension Benefits), provided that in no event may a member's retirement benefit be delayed beyond the latter of the April 1st following the calendar year in which he attains age seventy and one-half (70½) or April 1st of the year following the calendar year in which he retires. Distributions under this Plan will be made in accordance with regulations under Internal Revenue Code Section 401(a)(9). Provisions of Internal Revenue Code Section 401(a)(9) shall override any distribution options in the Plan that may be inconsistent with such section.

Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this Plan shall satisfy the following conditions:

(1)

If the retirement income is payable before the member's death:

a.

It shall either be distributed or commence to the member not later than April 1 of the calendar year following the later of the calendar year in which the member attains age 70½ or the calendar year in which the Participant retires;

b.

The distribution shall commence not later than the calendar year defined above; and (a) shall be paid over the life of the Participant or over the lifetimes of the Participant and spouse, issue or dependent, or (b) shall be paid over the period extending not beyond the life expectancy of the Participant and spouse, issue or dependent.

Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the Participant dies before his entire interest in the plan has been distributed, the remaining portion of such interest in the Pension Plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the Participant's death.

(2)

If the Participant's death occurs before the distribution of his interest in the Pension Plan has commenced, the Participant's entire interest in the Pension Plan shall be distributed within five years of the Participant's death, unless it is to be distributed in accordance with the following rules:

a.

The Participant's remaining interest in the Pension Plan is payable to his spouse, issue or dependent;

b.

The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life expectancy of the spouse, issue or dependent; and

c.

Such distribution begins within one year of the Participant's death unless the Participant's spouse is the sole designated beneficiary, in which case the distribution need not begin before the date on which the Participant would have attained age 70½ and if the Participant's spouse dies before the distribution to the spouse begins, this section shall be applied as if the spouse were the Participant.

(c)

Last Payment. The last payment shall be the month coincident with the death of the Participant (or survivor, if applicable) or later, depending on the form of benefit selected.

(Ord. No. 90-33, Ch. II, § 8-1, 5-21-91; Ord. No. 2015-03, § 2, 6-2-15; Ord. No. 2017-14, § 4, 8-15-17)