§ 4-16-3. Required distributions.

A.

Distribution rule. Notwithstanding any provision to the contrary elsewhere in this title, either:

1.

Distribution of the entire interest of each participant shall begin not later than April 1 of the calendar year following the later of the calendar year in which he or she attains age 70½, or the calendar year in which he or she retires; or

2.

If such participant and his or her surviving spouse die before distribution of his or her interest under this plan commences, his or her entire interest shall be distributed not later than five years after such later death; provided:

a.

If any portion of such interest is to be distributed to his or her spouse or his or her surviving children, such distribution will commence within one year of the participant's death and will be made in level payments over a period not greater than such spouse's or children life or life expectancy; and

b.

If such benefit recipient is the participant's spouse, distribution shall take place as provided in subsection (A)(2)(a) of this section, but is not required to begin before the date such participant would have attained age 70½.

B.

Distributions to children. For purposes of this section, any amounts paid to a child of the participant will be treated as paid to the participant's surviving spouse, if such amounts become payable to such spouse when such child reaches majority (or upon any other designated event permitted by the secretary of the treasury in regulations).

C.

Distribution after death. If a participant dies after his or her annuity commencement date, but before his or her entire benefit has been paid, the remainder of his or her benefit shall be paid to his or her spouse or surviving children or any named beneficiary, if any, at least as rapidly as the method of payment used as of the participant's death.

(Code 1985, § 25-42; Ord. No. 3907, § 1, 12-5-1989)