ACGL » Topics » 8.01 Events Triggering, and Form of, Distributions .

These excerpts taken from the ACGL 10-K filed Mar 2, 2009.

8.01 Events Triggering, and Form of, Distributions.

 

(a)          Events triggering the distribution of benefits and the form of such distributions are described in Section 1.07(a), pursuant to the Employer’s election and/or the Participant’s election, as applicable.

 

(1)        With respect to the form and time of distribution of amounts attributable to a Deferral Contribution, a Participant election must be made no later than the time by which the Participant must elect to make a Deferral Contribution, as described in Section 4.01.

 

(2)        With respect to the form and time of distribution of amounts attributable to Matching or Employer Contributions, a Participant election must be made no later than the time by which a Participant would be required to make a Deferral Contribution as described in Section 4.01 with respect to the calendar year for which the Matching and/or Employer Contributions are credited.  For purposes of applying Section 4.01(d) “Active Participant” shall have the meaning assigned in Section 2.01(a)(2)(B).

 

(3)        Notwithstanding anything herein to the contrary, an election choosing a distribution trigger and payment method pursuant to Section 1.07(a)(1) will only be effective with respect to amounts attributable to contributions credited to the Participant’s Account for the calendar year (or other deferral period described in 4.01(a) or (b)) to which such election relates.  Amounts attributable to contributions credited to a Participant’s account prior to the effective date of any new election will not be affected and will be paid in accordance with the otherwise applicable election.

 

(b)         If the Employer elects to permit a distribution election change pursuant to Section 1.07(b), then any such distribution election change must satisfy (1) through (3) below:

 

(1)         Such election may not take effect until at least 12 months after the date on which such election is made.

 

(2)         In the case of an election related to a payment not on account of Disability, death or the occurrence of an Unforeseeable Emergency, the payment with respect to which such election is made must be deferred for a period of not less than five years from the date such payment would otherwise have been paid (or in the case of installment payments, five years from the date the first amount was scheduled to be paid).

 

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(3)  Any election related to a payment at a specified time or pursuant to a fixed schedule may not be made less than 12 months prior to the date the payment is scheduled to be paid (or in the case of installment payments, 12 months prior to the date the first amount was scheduled to be paid).

 

With respect to any initial distribution election, a Participant shall in no event be permitted to make more than one distribution election change.

 

(c)  A Participant’s entitlement to installments will not be treated as an entitlement to a series of separate payments.

 

(d)  If the Plan does not provide for Plan-level payment triggers pursuant to Section 1.07(a)(3), and the Participant does not designate in the manner prescribed by the Administrator the method of distribution, and/or the distribution trigger (if and as required), such method of distribution shall be a lump sum at Separation from Service.

 

(e)  Notwithstanding anything herein to the contrary, with respect to any Specified Employee, if the applicable payment trigger is Separation from Service, then payment shall not commence before the date that is six months after the date of Separation from Service (or, if earlier, the date of death of the Specified Employee, pursuant to Section 7.02).  Payments to which a Specified Employee would otherwise be entitled during the first six months following the date of Separation from Service are delayed by six months.

 

(f)  Notwithstanding anything herein to the contrary, the Administrator may, in its discretion, automatically pay out a Participant’s vested Account in a lump sum, provided that such payment satisfies the requirements in (1) through (3) below:

 

(1)   Such payment results in the termination and liquidation of the entirety of the Participant’s interest under the plan (as defined in 26 CFR section 1.409A-1(c)(2)), including all agreements, methods, programs, or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under 26 CFR section 1.409A-1(c)(2);

 

(2)   Such payment is not greater than the applicable dollar amount under Code section 402(g)(1)(B); and

 

(3)   Such exercise of Administrator discretion is evidenced in writing no later than the date of such payment.

 

(g)  Notwithstanding anything herein to the contrary, the Administrator may, in its discretion, delay a payment otherwise required hereunder to a date after the designated payment date due to any of the circumstances described in (1) through (4) below, provided that the Administrator treats all payments to similarly situated Participants on a reasonably consistent basis.

 

(1)   In the event the Administrator reasonably anticipates that, if the payment were made as scheduled, the Employer’s deduction with respect to such payment would not be permitted due to the application of Code section 162(m), provided the delay complies with the conditions in 26 CFR section 1.409A-2(b)(7)(i).

 

(2)   In the event the Administrator reasonably anticipates that the making of such payment will violate Federal securities laws or other applicable law, provided the delay complies with the conditions in 26 CFR section 1.409A-2(b)(7)(ii).

 

(3)   Upon such other events and conditions as the Commissioner of the Internal Revenue Service may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.

 

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(4)   Upon a change in control event, provided the delay complies with conditions in 26 CFR section 1.409A-3(i)(5)(iv).

 

(h)  Notwithstanding anything herein to the contrary, the Administrator may provide an election to change the time or form of a payment hereunder to satisfy the requirements of the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended, 38 USC sections 4301 through 4344.

 

8.01 Events Triggering, and Form of, Distributions.



 



(a)          Events triggering the
distribution of benefits and the form of such distributions are described in Section 1.07(a),
pursuant to the Employer’s election and/or the Participant’s election, as
applicable.



 



(1)        With respect to the form
and time of distribution of amounts attributable to a Deferral Contribution, a
Participant election must be made no later than the time by which the
Participant must elect to make a Deferral Contribution, as described in Section 4.01.



 



(2)        With respect to the form
and time of distribution of amounts attributable to Matching or Employer
Contributions, a Participant election must be made no later than the time by
which a Participant would be required to make a Deferral Contribution as
described in Section 4.01 with respect to the calendar year for which the
Matching and/or Employer Contributions are credited.  For purposes of applying Section 4.01(d) “Active
Participant” shall have the meaning assigned in Section 2.01(a)(2)(B).



 



(3)        Notwithstanding anything
herein to the contrary, an election choosing a distribution trigger and payment
method pursuant to Section 1.07(a)(1) will only be effective with
respect to amounts attributable to contributions credited to the Participant’s
Account for the calendar year (or other deferral period described in 4.01(a) or
(b)) to which such election relates. 
Amounts attributable to contributions credited to a Participant’s
account prior to the effective date of any new election will not be affected
and will be paid in accordance with the otherwise applicable election.



 



(b)         If the Employer elects to
permit a distribution election change pursuant to Section 1.07(b), then
any such distribution election change must satisfy (1) through (3) below:



 



(1)         Such election may not take
effect until at least 12 months after the date on which such election is made.



 



(2)         In the case of an election
related to a payment not on account of Disability, death or the occurrence of
an Unforeseeable Emergency, the payment with respect to which such election is
made must be deferred for a period of not less than five years from the date
such payment would otherwise have been paid (or in the case of installment
payments, five years from the date the first amount was scheduled to be paid).



 



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(3)  Any election
related to a payment at a specified time or pursuant to a fixed schedule may
not be made less than 12 months prior to the date the payment is scheduled to
be paid (or in the case of installment payments, 12 months prior to the date
the first amount was scheduled to be paid).



 



With
respect to any initial distribution election, a Participant shall in no event
be permitted to make more than one distribution election change.



 



(c)  A Participant’s
entitlement to installments will not be treated as an entitlement to a series
of separate payments.



 



(d)  If the Plan does not
provide for Plan-level payment triggers pursuant to Section 1.07(a)(3),
and the Participant does not designate in the manner prescribed by the
Administrator the method of distribution, and/or the distribution trigger (if
and as required), such method of distribution shall be a lump sum at Separation
from Service.



 



(e)  Notwithstanding
anything herein to the contrary, with respect to any Specified Employee, if the
applicable payment trigger is Separation from Service, then payment shall not
commence before the date that is six months after the date of Separation from
Service (or, if earlier, the date of death of the Specified Employee, pursuant
to Section 7.02).  Payments to which
a Specified Employee would otherwise be entitled during the first six months
following the date of Separation from Service are delayed by six months.



 



(f)  Notwithstanding
anything herein to the contrary, the Administrator may, in its discretion,
automatically pay out a Participant’s vested Account in a lump sum, provided
that such payment satisfies the requirements in (1) through (3) below:



 



(1)   Such
payment results in the termination and liquidation of the entirety of the
Participant’s interest under the plan (as defined in 26 CFR section
1.409A-1(c)(2)), including all agreements, methods, programs, or other
arrangements with respect to which deferrals of compensation are treated as
having been deferred under a single nonqualified deferred compensation plan
under 26 CFR section 1.409A-1(c)(2);



 



(2)   Such payment is not greater
than the applicable dollar amount under Code section 402(g)(1)(B); and



 



(3)   Such exercise of Administrator
discretion is evidenced in writing no later than the date of such payment.



 



(g)  Notwithstanding
anything herein to the contrary, the Administrator may, in its discretion,
delay a payment otherwise required hereunder to a date after the designated
payment date due to any of the circumstances described in (1) through (4) below,
provided that the Administrator treats all payments to similarly situated
Participants on a reasonably consistent basis.



 



(1)   In
the event the Administrator reasonably anticipates that, if the payment were
made as scheduled, the Employer’s deduction with respect to such payment would
not be permitted due to the application of Code section 162(m), provided the
delay complies with the conditions in 26 CFR section 1.409A-2(b)(7)(i).



 



(2)   In
the event the Administrator reasonably anticipates that the making of such
payment will violate Federal securities laws or other applicable law, provided
the delay complies with the conditions in 26 CFR section 1.409A-2(b)(7)(ii).



 



(3)   Upon such other events and
conditions as the Commissioner of the Internal Revenue Service may prescribe in
generally applicable guidance published in the Internal Revenue Bulletin.



 



11
















 



(4)   Upon a change in control event,
provided the delay complies with conditions in 26 CFR section
1.409A-3(i)(5)(iv).



 



(h)  Notwithstanding
anything herein to the contrary, the Administrator may provide an election to
change the time or form of a payment hereunder to satisfy the requirements of
the Uniformed Services Employment and Reemployment Rights Act of 1994, as
amended, 38 USC sections 4301 through 4344.



 



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Mar 2, 2009

RELATED TOPICS for ACGL:

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