07.01 - Benefit Level Increase and Bylaws

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has served as an active member of the Fire Department. The base sum for purposes of pension �--- benefits or other benefits as allowed by the Bylaws shall be as stated in Appendix A, which is incorporated into these Bylaws by reference herein, and reduced pursuant to the partial vesting schedule as stated in Section 3 of this Article. � Section 2- ELIGIBILITY. To be eligible to receive a service pension a member must meet all of the following requirements: 1. Have separated from active service with the Fire Department; 2. Be at least 50 years of age; 3. Have completed at least 20 years of active membership with the Association to be fully vested, and at least 10 years of active membership with the Association to be partially vested; Section 3- PARTIAL VESTING SCHEDULE: Completed Years of Service: 10 11 12 13 14 15 16 17 18 19 20 and thereafter Nonforfeitable percentage of pension amount: 60% 64% 68% 72% 76% 80% 84% 88% 92% 96% 100% All service pension assets must be held by the Association until the retiree reaches 50 years of age. Section 4- PAYMENT OPTIONS. The manner of payment of the retirement benefits shall be specified by the retiring member. Options include but are not limited to: (a) A single lump sum check payment payable to the retiree (subject to current income tax withholding requirements). (b) Lump sum payment by the Association to a recognized insurance carrier, licensed to do business in this state and approved for this product by the Commerce Commissioner under Minn. Stat. §60A.40, to purchase an annuity contract on behalf of a retiring member. (c) Direct transfer of the member's lump sum payment to the member's individual retirement account under §408(a) of the federal Internal Revenue Code, as provided for in Minn. Stat. § 424A.02, subd. 8b. Section 5- SUPPLEMENTAL BENEFIT. The Association must pay a supplemental � benefit to individuals who receive a lump sum distribution of pension or retirement