§ 40-86 — Latest date for commencement of payment of benefits

§ 40-86. - Latest date for commencement of payment of benefits.

Distribution of a Participant's Retirement Benefit must be made or must commence no later than April 1 of the calendar year following the later of the calendar year in which the Participant (a) attains age 70½ for a Participant who attains age 70½ before January 1, 2020, or effective for distributions required to be made after December 31, 2019, but before January 1, 2023, the calendar year in which the Participant reaches 72 years of age for a Participant who attains age 70½ after December 31, 2019, or effective for distributions required to be made after December 31, 2022, the calendar year in which the Participant reaches 73 years of age for an individual who attains age 72 after December 31, 2022, or "the applicable age", as defined in Code Section 401(a)(9)(C)(v), if later; or (b) retires. With respect to distributions from the System made for calendar years beginning on or after January 1, 2002 through December 31, 2004, the System shall apply the minimum distribution requirements and incidental benefit requirements of Code Section 401(a)(9) in accordance with the regulations under Code Section 401(a)(9) that were proposed on January 17, 2001, notwithstanding any provision in this Division to the contrary. With respect to distributions made for calendar years beginning on or after January 1, 2005, the System shall apply the minimum distribution incidental benefit requirements, incidental benefit requirements, and minimum distribution requirements of Code Section 401(a)(9) in accordance with the final regulations under Code Section 401(a)(9), including Treasury Regulations Sections 1.401(a)(9)-1 through 1.401(a)(9)-9; provided, however, that for distributions required to be made after December 31, 2019, for individuals who attain 70½ years of age after December 31, 2019, but before January 1, 2023, such distributions shall take into account that age 70½ was stricken and age 72 was inserted in Code Section 401(a)(9)(B)(iv)(I), Code Section 401(a)(9)(C)(i)(I) and Code Section 401(a)(9)(C)(ii)(I), and, provided further, that for individuals who attain 72 years of age after December 31, 2022, such distributions shall take into account that "age 72" was stricken and "the applicable age", as defined in Code Section 401(a)(9)(C)(v), was inserted in Code Section 401(a)(9)(B)(iv)(I) (applicable to calendar year 2023), Code Section 401(a)(9)(C)(i)(I) and Code Section 401(a)(9)(C)(ii)(I) and that the further revision of Code Section 401(a)(9)(B)(iv) effective for calendar years after 2023 with respect to certain distributions shall be taken into account, in all cases notwithstanding any provision in this Division to the contrary. All required distributions on or after January 1, 2005, shall be determined and made in accordance with the final regulations under Code Section 401(a)(9), including the minimum distribution incidental benefit requirements of the final regulations; provided, however, that for distributions required to be made after December 31, 2019, for individuals who attain 70½ years of age after December 31, 2019, but before January 1, 2023, such distributions shall take into account that age 70½ was stricken and age 72 was inserted in Code Section 401(a)(9)(B)(iv)(I), Code Section 401(a)(9)(C)(i)(I) and Code Section 401(a)(9)(C)(ii)(I) and, provided further, that for individuals who attain 72 years of age after December 31, 2022, such distributions shall take into account that "age 72" was stricken and "the applicable age", as defined in Code Section 401(a)(9)(C)(v), was inserted in Code Section 401(a)(9)(B)(iv)(I) (applicable to calendar year 2023), Code Section 401(a)(9)(C)(i)(I) and Code Section 401(a)(9)(C)(ii)(I) and that the further revision of Code Section 401(a)(9)(B)(iv) effective for calendar years after 2023 with respect to certain distributions shall be taken into account, in all cases notwithstanding any provision in this Division to the contrary. Effective September 8, 2009, notwithstanding anything herein to the contrary, the System, which is a governmental plan (within the meaning of Code Section 414(d)) is treated as having complied with Code Section 401(a)(9) for all years to which Code Section 401(a)(9) applies to the System if the System complies with a reasonable and good faith interpretation of Code Section 401(a)(9).

(Ord. No. 22103, § 3, 12-17-02; Ord. No. 22890, § 1, 12-13-05; Ord. No. 24145, § 2, 10-12-10; Ord. No. 27206, § 1, 10-25-22; Ord. No. 27456, § 3, 11-7-23)