03-1412 ICMA CIty Manager 457 Deferred Compensation Plan

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Article VII. Benefits 7.01 Retirement Benefits and Election on Severance Event: (a) General Rule: Except as othetwise provided in this Article VII, the disttibution of a Participant's Account shall commence as of a Participant's Automatic Disttibution Date, and the disttibution of such benefits shall be made in accotdance with one of the payment options desctibed in Section 7.02. Notwithstanding the fotegoing, but subject to the following patagtaphs of this Section 7.01, the Participant may elect following a Sevetance Event to have the distribution of benefits commence on a fixed determinable date other than that described in the preceding sentence, bur nor later rhan April I of the year following the year of the Participant's Retirement or attainment of age 70-1/2, whichever is later. Prior to January I, 2002, an elecrion made pursuant to the preceding sentence shall not be valid unless such election is made not less than 30 days prior to the date that the distribution of a Participant's Account would otherwise com- mence. (b) Additional Delay in Disttibution: Prior to January I, 2002, the Participant may elecr ro defer the commencement of distribution of benefirs ro a fixed detetminable date later than the date provided in Section 7.01 (a), but nor later than April 1 of the year following the year of rhe Participant's retirement or attainment of age 70 1/2, whichever is later, provided, however, that (a) such election is made after rhe 61 st day following the Participant's Severance Event and before commencement of distributions, (b) the Participant may make only one (I) such elecrion, and (c) such election is made not less than 30 days prior to the dare the disrribution of a Participant's Account would otherwise commence. On or after January 1,2002, the Participant's right to change his or her elecrion wirh respect to commencement of the disttibution of benefits shall nor be restrained by this Section 7.0 I. Notwithstanding the foregoing, the Administrator, in order to ensure the orderly administration of this provision, may establish a deadline after which such election to defer the commencement of disttiburion of benefits shall not be allowed. (c) Loans: Notwithstanding the foregoing provisions of rhis Section 7.01, no election to defer the commencement of benefits after a Severance Event shall operare to defer the distribution of any amount in the Participant's Loan Account in the event of a default of the Participant's loan. 7.02 Payment Options: As provided in Secrions 7.01, 7.04 and 7.05, a Participant may elect to have value of the Participant's Account distributed in accordance with one of the following payment options, provided that such option is consistenr wirh the limitations set forth in Section 7.03. (a) Equal monthly, quarterly, semi-annual or annual payments in an amount chosen by the Partici- pant, continuing until his or her Account is exhausted; (b) One lump-sum payment; (c) Approximarely equal monthly, quarterly, semi-annual or annual payments, calculated to con- tinue for a period certain chosen by the Participant. (d) Annual Payments equal to the minimum distributions required under Section 401 (a)(9) of the Code. including the incidental death benefit requirements of Section 401(a)(9)(G), over the life expectancy of the Participant or over the life expectancies of the Participant and his or her B<:nefici~lry. II