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Lump Sum Payments

Assets accumulated under the ORP may be payable as either a full or partial lump sum. The plan’s rules governing lump sum payments are:

  1. For participants age 55 and older, lump sums are available at any time after termination of employment.

  2. For participants younger than age 55, lump sums are not payable until the attainment of age 55, except that:

    • For funds accrued as of June 30, 2004 ("old money"), and their related investment earnings accumulated to date, lump sum distributions are payable to participants younger than age 55 if the distribution is directly rolled over to either a subsequent employer’s retirement plan or a Rollover IRA.

    The fastest a participant younger than age 55 can liquidate their account is to take the funds over twenty-four (24) monthly installments. Please note that these payments are eligible for rollover treatment, and can be sent directly to either another retirement plan or an IRA without incurring current income taxes and penalties from the IRS.

    Fidelity Note: Fidelity Investments cannot liquidate and rollover your account using 24 monthly installments.  Participants younger than age 55 who wish to liquidate their accounts at Fidelity, and roll the funds over to another retirement plan or an IRA, must request eight individual, quarterly payments from Fidelity; effectively liquidating and rolling over their entire ORP account during a two-year period. Participants are responsible for submitting each of the eight requests to the Plan Administrator for implementation with Fidelity on a quarterly basis.

  3. Small Balance Distribution: Participants whose total account balance under the plan is less than $5,000 may take the full amount as a lump sum any time after terminating employment.

  4. Alternate Payees under a Domestic Relations Order that has been accepted by the Plan Administrator may draw full or partial lump sums from the Plan at any time.

 

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