§ 33.70. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS.

(A)

General. This Section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the system to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

(B)

Definitions.

(1)

Eligible Rollover Distribution. Any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includable in gross income.

(2)

Eligible Retirement Plan. An eligible retirement plan is an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code, an annuity plan described in Section 403 (a) of the Internal Revenue Code, a qualified trust described in Section 401 (a) of the Internal Revenue Code, an eligible deferred compensation plan described in Section 457(b) of the Internal Revenue Code which is maintained by an eligible employer described in Section 457(e)(1)(A) of the Internal Revenue Code, or an annuity contract described in Section 403 (b) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution.

(3)

Distribute. A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse. Effective as of January 1, 2008, an employee's or former employee's non-spouse beneficiary is a distributee with regard to the interest of the employee or former employee.

(4)

Direct Rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. Effective as of January 1, 2008, a non-spouse beneficiary may make a direct rollover only to an "inherited" individual retirement account as described in Section 408(b) of the Internal Revenue Code. If a non-spouse beneficiary receives a distribution from the plan, the distribution is not eligible for a 60-day (non-direct) rollover.

(C)

Rollovers or Transfers into the Fund. On or after the effective date of this Section, the fund will accept member rollover cash contributions and/or direct cash rollovers of distributions for the purchase of continuous service or an enhanced multiplier as authorized under the plan, as follows: the fund will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from a qualified plan described in Section 401(a) or 403(a) of the Internal Revenue Code, from an annuity contract described in Section 403(b) of the Internal Revenue Code, or from an eligible plan under Section 457(b) of the Internal Revenue Code, which is maintained by a State, political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State.

(Ord. No. 95-94, passed 12/13/94; Ord. No. 58-02, § 2, passed 1/7/03; Ord. No. 22-04, § 1, passed 4/13/04; Ord. No. 16-12, § 9, passed 6/19/12; Ord. No. 06-16 , § 3, passed 2/16/16)