A.
Amount of Distribution for an unforeseeable emergency. Upon a showing
by a participant of an unforeseeable emergency, the administrative
service agency may permit a payment to be made to the participant
in an amount which does not exceed the lesser of (i) the amount reasonably
needed to meet the financial need created by such unforeseeable emergency,
including estimated income taxes and (ii) an amount which, together
with any prior distribution or withdrawal, does not exceed the value
of the participant's plan benefit determined as of the most recent
valuation date. Any such payment shall be made from the Trust Fund
by the Trustee upon the direction of the administrative service agency
and shall be withdrawn by the Trustee pro rata from the investment
funds in which the participant has an interest, unless the participant
specifies in the request for such a payment the portion of the total
amount to be withdrawn by the Trustee from each investment fund. The
participant shall designate the amount of the distribution that will
come from his or her before-tax deferral account and from his or her
Roth account in accordance with procedures established by the administrative
service agency. All payments shall be made in one lump cash sum within
60 days after approval of the request.
B.
Evidence of other relief. A participant must provide evidence that
the amount requested for an unforeseeable emergency may not be fully
relieved:
A.
Elective distribution. An account participant with a plan benefit,
not including the amount in the participant's rollover accounts, of
$5,000 or less [or such greater amount as may be permitted by Section
401(a)(11) of the Code] may elect at any time to receive a lump sum
distribution, not to exceed $5,000 of his or her account and rollover
account, which distribution will be made in accordance with procedures
established by the administrative service agency, provided that both
of the following conditions have been met:
B.
Automatic distribution. With respect to a participant or an alternate payee whose plan benefit, including any amounts attributable to an in-plan rollover contribution to a Roth account pursuant to § 50-8.4D, but not including any amounts in the participant's or alternate payee's rollover accounts, does not exceed the amount set forth in Subsection A, if and to the extent that the Committee has resolved to provide for automatic distributions pursuant to Section 7.2(b) of Schedule A, the Committee shall direct the automatic distribution of the participant's account and rollover account or the alternate payee's alternate payee account as soon as practicable, to the extent provided in Section 7.2(b) of Schedule A (i) following the participant's severance from employment and (ii) upon an account participant's plan benefit falling below the value set forth in Section 7.2(b) of Schedule A, to the extent that the requirements of Section 7.2(a) are met; provided, however, that in the event any such distribution is greater than $1,000, if the participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the participant in a direct rollover or to receive the distribution directly in accordance with § 50-8.1B, then the Committee will pay the distribution in a direct rollover to an individual retirement plan designated by the Committee; and provided, further, that such distribution shall made in accordance with the requirements of Section 401(a)(31) of the Code.
To the extent the Committee has resolved to adopt a loan program
pursuant to Section 7.3 of Schedule A, this § 50-7.3 shall
apply.
A.
Eligibility. Participants who are active employees, and, if the Committee
shall determine, participants who are on an approved leave of absence
from their employer, shall be eligible to request a plan loan. Each
participant shall have only one outstanding plan loan at any time.
Upon the request of a loan-eligible participant, the administrative
service agency may, on such terms and conditions prescribed herein,
direct the Trustee to make a plan loan to such loan-eligible participant.
B.
Loan amount. The principal amount of any plan loan shall be for an
amount equal to at least $1,000, or such other amount as the Committee
shall determine, and shall not exceed the lesser of:
(1)
Fifty percent of the value of the sum of the participant's accounts
[including his or her before-tax deferral account and Roth account
(to the extent applicable)]; and
(2)
Fifty thousand dollars reduced by the highest value in the last 12
months of any loans by the participant from the plan and other eligible
retirement plans sponsored by the employer or in which the employer
participates.
C.
Repayment period. All plan loans, other than those for the purpose
of acquiring the dwelling unit which is, or within a reasonable time
shall be, the principal residence of the participant, shall be repaid
over a nonrenewable repayment period of five years. A plan loan made
for acquiring a principal residence shall be repaid over a nonrenewable
repayment period of up to 15 years, or such shorter term as the Committee
shall determine. Any plan loan shall be repaid in substantially equal
installments of principal and accrued interest that shall be paid
at least monthly or quarterly, as specified by the Committee, subject
to the methods and procedures as shall be determined by the administrative
service agency.
D.
Rate of interest. Each plan loan granted shall bear a rate of interest
equal to one percentage point above the prime interest rate as published
in the Wall Street Journal on the last business day of the month preceding
the application for the loan, or such other reasonable rate of interest
as the Committee shall determine.
E.
Source of loans; security. The Committee shall be required to designate
under Section 7.3(e) of Schedule A the source(s) of plan loans. Plan
loans shall be made solely from the source(s) designated by the Committee.
All plan loans shall be made from the trust fund and notes evidencing
such obligations shall be considered assets of the trust fund and
shall be treated as a separate loan investment fund for purposes of
determining the value as of any valuation date of a participant's
accounts. All plan loans shall be secured, as of the date of the plan
loan, by the sum of (i) the participant's before-tax deferral account
and Roth account (to the extent applicable) and (ii) the participant's
rollover accounts, if applicable; provided, however, that no more
than 50% of the aggregate value of such participant's accounts shall
be used as security for the plan loan.
F.
Default. If a participant fails to make any scheduled repayment of
his or her plan loan within the loan grace period, such participant
shall be considered in default and the administrative service agency
shall declare a deemed distribution to have occurred with respect
to such plan loan, effective as of the date of the default, and shall
reduce the value of the participant's plan benefit by the amount of
the deemed distribution. Notwithstanding anything in this § 50-7.3
to the contrary, a participant who has defaulted on a loan made under
the plan shall not be eligible to obtain another loan hereunder until
the defaulted loan and accrued interest has been repaid, and the new
loan shall be subject to any other limitations required under Section
1.72(p) of the Treasury regulations.
H.
Administration and fees. The Committee may establish or change from
time to time the standards or requirements for making any plan loan,
including assessing an administrative fee against the participant
or the participant's account for such plan loan.
If a participant dies prior to the payment of any withdrawal for an unforeseeable emergency, distribution of a small, inactive account or disbursement of the proceeds of any plan loan, the participant's withdrawal, distribution or loan request shall be void as of the date of death and no withdrawal, distribution or disbursement shall be made by operation of Article VII to the participant's beneficiary or estate.
