§ 5.23.070. Distributions and withdrawals.

A.

Distributions Only as Provided. A Participant or Beneficiary shall only be paid vested benefits under the Plan as provided in this section. A Participant or Beneficiary who is eligible to receive a distribution under the Plan shall submit an application for benefits to the Administrative Committee, furnishing such information as the Administrative Committee or its duly authorized agent may require.

B.

Nonforfeitability. Any amount credited to a Participant's Tax Deferred Contributions Account shall be nonforfeitable and fully vested. Any amount credited to a Participant's Matching Contributions Account shall vest and become nonforfeitable at the rate of 20 percent for each Year of Service completed by such Participant.

C.

Distributions on Retirement or Disability.

1.

Notwithstanding the provisions of subsection B of this section, the entire Account of a Participant whose employment with the County terminates after he is age 70 or qualified for a service retirement benefit under the County Employees Retirement Law of 1937, as amended, if earlier, or whose employment with the County terminates because of Disability, shall be nonforfeitable and fully vested. Such Account shall be paid to the Participant or his Beneficiary, in cash, in accordance with one of the following methods as the Participant determines:

a.

A lump sum payment; or

b.

Equal monthly, quarterly or annual installments not extending over more than 15 years; or

c.

Consecutive periodic payments for the life of the Participant or for the lives of the Participant and his spouse and the last survivor of them; or

d.

A combination of the methods of payment described in subsections C1a, b and c above.

2.

All distributions hereunder shall be made or begun as soon as administratively practicable after the Participant's application is filed pursuant to subsection A of this section and approved by the Administrative Committee. For purposes of a distribution, the date that such Participant's interest in an Investment Fund is liquidated or redeemed, partially or in full, to satisfy the distribution application shall be the applicable Valuation Date.

D.

Distributions on Death.

1.

Notwithstanding the provisions of subsection B of this section, after the death of a Participant at any time whatsoever, his entire Account shall be nonforfeitable and fully vested. Such Account shall be paid by the Trustee to the Participant's Beneficiary after the Trustee is notified by the Administrative Committee of the Participant's death.

2.

A Participant shall have the right to designate that after his death his Account shall be paid to or for his Beneficiary in accordance with one of the methods set forth in subsection C1 of this section. Any designation by a Participant of the method of payment of death benefits hereunder may be made, changed or revoked by the Participant in writing in a form prescribed by the Administrative Committee and filed with the Administrative Committee prior to the Participant's death.

3.

If a Participant does not expressly designate the method of distribution of his Account, or if such designation is for any reason not effective, such Account shall be paid to or for the Beneficiary in accordance with one of the methods set forth in subsection C1 of this section as such Beneficiary, in his discretion, shall determine and designate to the Administrative Committee.

E.

Distributions of Vested Interest.

1.

A Participant whose employment with the County terminates for any reason other than the reasons specified in subsections C or D of this section shall receive his entire Tax Deferred Contributions Account and the portion of his Matching Contributions Account in which he is vested in accordance with subsection B of this section. The portion of his Matching Contribution Account which is not so vested shall be immediately forfeited. If a Participant forfeits a portion of his Account and he is later rehired by the County, his employment with the County or participation in the Plan after such rehire shall have no effect on the amount of the forfeiture. If such a rehired Participant subsequently becomes party to another Compensation Deferral Agreement, any Matching Contributions thereafter made by the County and any earnings and investment gains or losses allocable thereto shall be credited to a separate Matching Contributions Account maintained for such Participant and shall vest as provided herein without regard to any Year of Service prior to his rehire.

2.

Amounts distributed pursuant to subsection E1 of this section shall be paid in accordance with one of the methods set forth in subsection C1 of this section as selected by the Participant.

F.

Latest Time of Distribution.

1.

Notwithstanding any other provision hereof to the contrary, distributions under the Plan shall be made in accordance with Code Section 401(a)(9) (including Section 401(a)(9)(G)) and the Treasury Regulations promulgated thereunder (including Section 1.401(a)(9)-2); provided, however, that such provisions shall override the other distribution provisions of the Plan only to the extent that such other Plan provisions provide for a distribution that is less rapid or of a lesser amount than required under such provisions of the Code and Regulations. Nothing contained in this Section 5.23.070F shall be construed as providing an optional form of payment that is not available under the other distribution provisions of this Section 5.23.070.

2.

General Rule. The entire interest of each Participant under the plan:

a.

Either will be distributed to him not later than his taxable year in which he attains age 70-1/2 or in his taxable year in which he retires from County service, whichever is the later (his "Required Beginning Date"); or

b.

Will be distributed, commencing not later than his Required Beginning Date, (1) in accordance with Regulations prescribed by the Secretary of the Treasury, over the life of such Participant or over the lives of such Participant and his designated Beneficiary, or (2) in accordance with such Regulations, over a period not extending beyond the life expectancy of such Participant or the life expectancy of such Participant and his designated Beneficiary.

3.

Distributions Upon Death of a Participant. Upon the death of a Participant, the following distribution provisions will apply to limit the Beneficiary's ability to delay distributions.

4.

If the Participant dies after distribution of his benefit has begun, the remaining portion of his benefit will continue to be distributed at least as rapidly as under the method of distribution being used prior to the Participant's death.

5.

If the Participant dies before distribution of his benefit has begun, his entire benefit will be distributed no later than five years after his death, unless an individual who is a designated Beneficiary elects to receive distributions in substantially equal installments over the Beneficiary's life or over a period not extending beyond the life expectancy of the Beneficiary (and, if the Beneficiary is not the Participant's spouse, not extending beyond 15 years in accordance with the distribution options available under Sections 5.23.070C and D) beginning no later than December 31 of the calendar year following the calendar year in which the Participant died. If the designated Beneficiary is the Participant's surviving spouse, the date distributions are required to begin is the later of December 31 of the calendar year following the calendar year in which the Participant died or December 31 of the calendar year in which such Participant would have attained age 70-1/2. If the spouse dies before such payments begin, subsequent distributions will be made as if the spouse had been the Participant.

6.

Generally, distributions will be treated as having begun to the Participant for the purposes of this Section 5.23.070F on the employee's Required Beginning Date, even though payments may actually have been made before that date; provided, however, that if distributions irrevocably (except for acceleration) commence to an employee under an annuity contract, distributions will be considered to have begun on the actual commencement date.

7.

Recalculation of Life Expectancies. The Participant (or the Participant's spouse if the Participant dies before distributions have begun) may elect not to recalculate annually the life expectancy of the Participant and the Participant's spouse (other than in the case of a life annuity) in accordance with Code Section 401(a)(9)(D) and the Regulations thereunder. Such election must be made prior to the time of the first required distribution under Code Section 401(a)(9). If the Participant (or spouse if applicable) fails to make such election, life expectancies will be recalculated annually in accordance with the Regulations.

8.

2001 Proposed Regulations. With respect to distributions under the Plan made for calendar years beginning on or after January 1, 2001, the Plan will apply the minimum distribution requirements of Section 401 (a)(9) of the Internal Revenue Code in accordance with the regulations under Section 401 (a)(9) that were proposed on January 17, 2001, notwithstanding any provision of the Plan to the contrary. This amendment shall continue in effect until the end of the last calendar year beginning before the effective date of final regulations under Section 401 (a)(9) or such other date as may be specified in guidance published by the Internal Revenue Service.

G.

Withdrawal of Contributions. Upon not less than 30 days' prior written notice filed with the Administrative Committee, effective as of the Entry Date following notification of the Trustee and Investment Manager by the Administrative Committee, a Participant who is an Employee may withdraw in cash all or a part of his Account balance as of the immediately preceding Valuation Date as provided and in the order set forth below. Except in cases of Hardship, a Participant may make only two withdrawals pursuant to this subsection per Plan Year.

1.

A Participant may withdraw all or a part of his Matching Contributions Account in which he has a vested interest but a Participant may not make a withdrawal pursuant to this subsection unless he is either credited with at least 10 Years of Service or such withdrawal is made due to Hardship.

2.

a.

Participant who has withdrawn his entire Matching Contributions Account may in addition withdraw all or a part of his Tax Deferred Contributions Account (excluding any earnings credited to such Account on or after January 1, 1989), provided that the Participant has attained age 59-1/2 or demonstrated to the Administrative Committee that he is suffering from Hardship. A withdrawal shall not be permitted for Hardship unless such withdrawal is on account of an immediate and heavy financial need of the Participant and is necessary to satisfy such financial need.

b.

Effective as of January 1, 2006, the determination of whether a Participant has an immediate and heavy financial need shall be made by the Administrative Committee on the basis of all relevant facts and circumstances. Nevertheless, a withdrawal shall be deemed to be made on account of an immediate and heavy financial need of a Participant if the withdrawal is on account of:

(1)

Expenses for (or necessary to obtain) medical care that would be deductible under Section 213(d) of the Code (determined without regard to whether the expenses exceed 7.5% of adjusted gross income);

(2)

The purchase (excluding mortgage payments) of a principal residence of the Participant;

(3)

The payment of tuition for the next semester or quarter of post-secondary education for the Participant, the spouse, the children, or the dependents (as defined in section 152 of the Code, and for taxable years beginning on or after January 1, 2005, without regard to section 152(b)(1), (b)(2) or (d)(1)(B) of the Code);

(4)

The need to prevent the eviction of the Participant from his principal residence or the foreclosure on the mortgage of the Participant's principal residence;

(5)

On and after January 1, 2007, payment for burial or funeral expenses for the Participant's deceased parent, spouse, children or dependents (as defined in section 152 of the Code but without regard to subsection 152(d)(1)(B));

(6)

On and after January 1, 2007, expenses for the repair of damage to the Participant's principal residence that would qualify for the casualty deduction under section 165 of the Code (determined without regard to whether the loss exceeds 10% of adjusted gross income); or

(7)

Any other financial need which the Commissioner of Internal Revenue, through the publication of revenue rulings, notices, and other documents of general applicability, may from time to time designate as a deemed immediate and heavy financial need as provided in Section 1.401(k)-1(d)(2)(iii)(C) of the Treasury Regulations.

c.

Effective as of January 1, 2006, a withdrawal shall not be treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the amount of the withdrawal exceeds the amount required to relieve the financial need or to the extent such need may be satisfied from other resources that are reasonably available to the Participant. The determination of whether the amount of a withdrawal is necessary to satisfy an immediate and heavy financial need shall be made by the Administrative Committee on the basis of all relevant facts and circumstances. Nevertheless, the amount of a withdrawal shall be deemed to be necessary to satisfy an immediate and heavy financial need of a Participant if: (1) the amount of the distribution is not in excess of the amount of the immediate and heavy financial need; (2) the Participant has obtained all distributions (other than Hardship distributions) and nontaxable (at the time of the loan) loans available under the terms of this Plan or any other plans of deferred compensation maintained by the County; and (3) the Participant irrevocably elects to suspend all elective contributions and employee contributions under this Plan (e.g., After-Tax Contributions and Tax Deferred Contributions) and all other plans of deferred compensation maintained by the County from the date on which the withdrawal is made until the close of the six-calendar-month period that began on the first day of the month following the date on which the withdrawal is made. For the purposes of this subsection c, the term "other plans of deferred compensation" include, without limitation, all qualified and non-qualified deferred compensation plans and any cash or deferred arrangements that are part of a cafeteria plan, except that it does not include the mandatory employee contribution component of a defined benefit plan or welfare plan. For the purposes of this subsection c the County includes the County and all other employers which are required to be treated as a single "employer" under Treasury Regulation section 1.401(k)-6.

H.

Loans to Participants.

1.

Upon application by a Participant, but subject to such uniform and nondiscriminatory rules as the Administrative Committee may establish and to the provisions of this subsection, effective July l, 1987, the Administrative Committee may in its discretion direct the Trustee to make a loan or loans to a Participant from his separate account in the Participant Loan Fund in an amount not exceeding the excess of:

a.

The lesser of:

(1)

$50,000.00, reduced by the excess (if any) of:

(a)

The highest outstanding balance of loans to such Participant from the Plan during the one-year period ending on the day before the date on which such loan was made,

(b)

Over the outstanding balance of loans to such Participant from the Plan on the date on which such loan was made, or 50 percent of the vested portion of the Participant's Account balance;

b.

Over the outstanding balance of any other loan or loans from the Plan to the Participant; provided, however, that if 50 percent of the vested portion of the Participant's Account balance is less than $10,000.00, the amount in subsection H2 of this section shall be the lesser of $10,000.00 or 80 percent of the vested portion of the Participant's Account balance. The minimum loan that may be made from the Plan is $2,000.00 (or such other amount determined by the Administrative Committee). All loans hereunder shall be subject to such loan processing fees charged by the Trustee and Investment Manager as are approved by the Administrative Committee, which fees shall be paid by borrowing Participants.

2.

As soon as practicable after the receipt of all necessary information and directions from the Administrative Committee to make a loan and prior to making any loan pursuant to subsection H1 of this section, but in no event later than 30 days after the applicable Valuation Date, the Trustee or Investment Manager shall transfer, in accordance with procedures determined by the Administrative Committee, to the Participant Loan Fund from the assets invested in other Investment Funds allocated to the Account of each borrowing Participant an amount equal to the amount of such Participant's Account. The Participant Loan Fund shall be invested solely in loans to Participants made pursuant to this subsection and shall at all times be at least equal to the total amount of such loans. All interest and principal payments made by such Participants shall be credited to the separate account within the Participant Loan Fund of each Participant who borrows money from the Plan. Except as otherwise provided by the Administrative Committee, as of each Valuation Date all cash in the Participant Loan Fund shall be transferred to the other Investment Funds in accordance with each borrowing Participant's investment choice under Section 5.23.060 C.

3.

Loans made pursuant to subsection H1 of this section:

a.

Shall be secured by (l) the portion of the Participant's Account attributable to Matching Contributions and, to the extent necessary, the portion of the Participant's Account attributable to Tax Deferred Contributions, and (2) such other collateral as the Administrative Committee may require;

b.

Shall be available to all Participants on a reasonably equivalent basis that shall not result in discrimination in favor of Employees who are officers or highly compensated within the meaning of Code Section 401; and

c.

Shall be evidenced by a promissory note executed by the Participant which provides for:

(1)

A reasonable rate of interest determined by the Administrative Committee, and

(2)

For repayment (a) within a specified period of time, which shall not extend beyond five years from the time the loan is made unless the loan proceeds are used to acquire a dwelling which within a reasonable time is to be used as a principal residence (as determined at the time the loan is made) of a Participant, in which case the promissory note shall provide for repayment within 15 years of the time the loan is made unless otherwise provided by the Administrative Committee at the time the loan is made, and (b) in substantially equal payments, at least quarterly, over the term of the loan, and (c) upon such other terms and conditions as the Administrative Committee shall determine.

Notwithstanding any other provision of the Plan, such loan shall be a first lien against the Participant's Account and any amount of principal or interest due and unpaid thereon shall be deducted from such Account before the payment of any portion thereof to the Participant or his Beneficiary.

4.

Notwithstanding the foregoing provisions of this subsection, loans made to Participants under the Plan shall be due and payable upon the Participant's termination of employment with the County, whether by death, retirement or otherwise.

I.

Order of Distributions. Distributions (including withdrawals) shall be made from the applicable portion of a Participant's Account invested in the Investment Funds on a pro rata basis from each Investment Fund, unless a different order of distribution is directed by the Participant. Each Participant by written notice (in form acceptable to the Administrative Committee) signed by the Participant and filed with the Administrative Committee may direct the order in which distributions are to be made if other than on a pro rata basis.

J.

Small Accounts. Notwithstanding the foregoing provisions of this section, if a Participant's vested Account balance does not exceed $5,000.00 at the time the Participant or Beneficiary requests a distribution, such Account shall be payable to the Participant or Beneficiary only in the form of a lump sum. Additionally, if a Participant does not make a timely election regarding the distribution of his benefits after receiving the notice required under Code section 402(f), then, provided that the distribution is $1,000.00 or less, the Participant's benefits shall be distributed in a single cash payment as soon as practicable notwithstanding his failure to file an application for distribution.

K.

Lost Participants. If the Participant or his or her Beneficiary cannot be located within four years of the date the Participant's interest under the Plan is first payable, the entire balance in his or her Investment Accounts shall be forfeited; provided, however, that the amount so forfeited shall be reinstated as of the date of the subsequent filing of an application for benefits under the Plan, and payment of the lump sum benefit shall occur no later than 60 days after such application is filed.

L.

Application of Forfeitures. The Amount of Participant's Investment Accounts which is forfeited for a Plan Year in accordance with Sections 5.23.050B.2 and 5.23.070E and K shall be placed in a suspense account and applied as soon as possible to first, restore the accounts of lost Participants who have filed an application for benefits that has been approved by the Administrative Committee, if any, and second, to offset future Matching Contributions to be made by the County in accordance with Section 5.23.050D.

(Ord. 2007-0001 § 1, 2007; Ord. 2005-0037 § 5, 2005; Ord. 2001-0097 § 2 (part), 2001.)