Distributions.

Denver Revised Municipal Code § 18-430.3

in effect

Sec. 18-430.3. - Distributions. (a) A participant in DROP II shall be entitled to select one (1) of the following methods of distribution by executing in writing a DROP II selection form prescribed by the board: (1) Deferral of any payment(s) from the account. If a deferral of payment(s) is selected, the participant may select one (1) of the following distribution methods at any time. Distributions may start no earlier than sixty (60) days following employment termination and must start no later than April 1 following the year in which the participant attains the age of seventy and one half (70½). (2) A lump-sum distribution of the entire account balance. (3) Monthly payments of a designated amount until the entire balance of the DROP II account have been distributed. The designated monthly payment amount may be adjusted annually. (4) Monthly payments for a designated period of years. An amount shall be calculated for this periodic payment so that the entire balance in the participant's DROP II account will have been distributed by the end of the period selected by the participant. The designated number of payments may be recalculated annually. (5) Initial minimum required distribution. The amount calculated to be the participant's monthly payment shall be based on the participant's current DROP II account balance. This minimum distribution is based on the participant's life expectancy (and the life expectancy of the participant's designated beneficiary, if applicable). (6) Combination of a lump sum and monthly payments by designating an initial lump sum payment of a specified amount and a specified monthly amount until the balance of DROP II account has been entirely distributed to the participant. The specified monthly amount may be adjusted annually. (7) The participant may rollover all or certain portions of eligible rollover distributions, as defined in the Internal Revenue Code, from DROP II to an individual retirement account (IRA) that qualifies as an IRA under the Internal Revenue Code or to any other eligible retirement plan available to receive rollovers under the Internal Revenue Code as set forth in section 18-416 of this article. (8) Any other plan approved method of distribution that is consistent with the requirements of the Internal Revenue Code. (b) Regardless of the form of payment the participant chooses, the minimum distribution amount will be determined and payment made in accordance with section 401(a)(9) of the Internal Revenue Code and the corresponding regulations. If the retiree has not selected a distribution method prior to reaching the age of seventy and one half (70½), the retiree shall be deemed to have elected the lump-sum payment method. (Ord. No. 960-05, § 1, 12-19-05)

Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH18EMOFPABE_ARTXIIRE_DIV4ANAMDEREOPPLDRIIMEDEEMREPL_S18-430.3DIFetched: 10/27/2026