Common use of Methods of Distribution Clause in Contracts

Methods of Distribution. Subject to the provisions of subsection (b), the Plan Administration Committee after consultation with the Participant, (or his or Beneficiary in the event of the Participant’s death, or his or her legal representative in the event of the Participant’s Disability), shall direct the Trustee to distribute all or a portion of his or her Nonforfeitable Accrued Benefit to the recipient thereof under one of the following methods: (1) By payment in a lump sum. (2) By payment in monthly, quarterly or annual installments over a fixed reasonable period of time, not exceeding the life expectancy of the Participant, or the joint life and last survivor expectancy of the Participant and the Participant’s designated Beneficiary. (3) A straight life annuity, payable no less frequently than annually, with payment of the Participant’s Nonforfeitable Accrued Benefit ending on the Participant’s death. (4) A life annuity, payable no less frequently than annually, with a term certain guaranteed. The term certain cannot exceed the Participant’s life expectancy, or the joint life and last survivor expectancy of the Participant and his or her designated Beneficiary. If a Participant dies before the Trustee has made the guaranteed number of payments, the Plan Administration Committee shall direct the Trustee to continue the balance of the payments to the Participant’s designated Beneficiary. (5) Any other form of payment of the Participant’s Nonforfeitable Accrued Benefit which the Plan Administration Committee may approve. However, such form of payment cannot extend beyond the Participant’s life, the life of the Participant and his or her designated Beneficiary, the Participant’s life expectancy or the joint life and last survivor expectancy of the Participant and his or her designated Beneficiary.