Expedited Bill No.
8-12
Concerning: Retirement Savings Plan ­
Amendments
Revised: March 1,2012 Draft No. 2 _
_
Introduced:
March 6, 2012
Enacted:
May 1,2012
Executive:
May 10. 2012
Effective:
Mav 10, 2012
Sunset Date: ...:N.=o=n=e'--_ _ _ _ __
Ch. _1_1_. Laws of Mont. Co.
2012
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN EXPEDITED ACT
to:
(1)
amend the Retirement Savings Plan to remain
tax
qualified under the Internal
Revenue Code; and
(2)
generally amend the law regarding the employees' retirement system.
By amending
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-118 and 33-120
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Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No. 8-12
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Sec.
1.
Sections 33-118 and 33-120 are amended as follows:
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33-118.
Maximum annual contribution.
(a)
Annual Contribution Limitation
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[(4)
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County contributions that would be allocated to County
contributions accounts of participants but for the limitations of
this Section must be carried over to subsequent years and
allocated in order of time to the County contributions accounts
that would have received the contributions but for the
limitations in this Section. However, if a participant whose
County contributions are carried over is not a participant in the
subsequent years, that portion of the carryover contributions
attributable to the participant must be allocated to the County
contribution accounts of all participants. Amounts carried over
must be allocated to a suspense account that must be invested in
a fund deemed prudent by the Board.
Any earnings of the
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suspense account must be allocated ratably among the County
contributions accounts of all the participants except as
otherwise provided in this Section.]
(5)]
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[(6)]
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Effective July
2007, all contributions made to
f!
participant's
account within
2Yi
months after termination of employment or within
the limitation year that contains the termination from employment
must be considered compensation for purposes of Internal Revenue
Code Section 415, as amended.
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33-120.
Distribution of Benefit
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ExPEDITED BILL
No. 8-12
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(g)
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Direct rollover distributions.
Notwithstanding any provision of this
Division that would otherwise limit a participant's election under this
Section, a participant or beneficiary may elect in any manner
prescribed by the Chief Administrative Officer at any time to have
any portion of an eligible rollover distribution
[(as
defined in the
Internal Revenue Code)] paid directly to an eligible retirement plan
[(as defined in the Internal Revenue Code)] specified by the
participant in a direct rollover. [For purposes of]
As used in this subsection[,t
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direct rollover
[is] means a payment from the retirement
savings plan to the eligible retirement plan specified by the
participant.
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eligible retirement plan
means:
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an individual retirement account described in Internal
Revenue Code Section 408(a), as amended;
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an individual retirement annuity described in Internal
Revenue Code Section 408(b), as amended. (other than
an endowment contract);
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qualified trust;
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an annuity plan described in Internal Revenue Code
Section 403(a), as amended;
.em
an eligible deferred compensation plan described in
Internal Revenue Code Section 4S7(b), as amended,
which is maintained Qy an eligible employer described in
Internal
Revenue
Code
Section
4S7(e)(1)(A),
as
amended; and
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EXPEDITED BILL
No. 8-12
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an annuity contract described in Internal Revenue Code
Section 403(b), as amended.
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eligible rollover distribution
means any distribution to
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participant of all or any portion of the participant's account
balance; except:
fA)
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any distribution which is one of
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series of substantially
equal periodic payments (not less frequently than
annually) made:
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for the life (or life expectancy) of the employee or
the joint lives (or joint life expectancies) of the
employee
and
the
employee's
designated
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beneficiary; or
(ii)
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for
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specified period of 10 years or more; or
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any distribution to the extent such distribution is required
under Internal Revenue Code Section 40 1(a)(9), as
amended.
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Sec. 2. Effective Date.
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The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law. The amendments to Section 33-118 in Section 1 are effective on
July 1,2007.
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EXPEDITED BILL
No. 8-12
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Rog
Date
Approved:
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Approved:
This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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