Sallie Mae 2015 Annual Report Download - page 223

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Section 6.3. In-Service Distribution Option. The time and manner of payment elected
with respect to an In-Service Distribution Account must be elected on the Enrollment
Agreement at the time Salary or Bonus Deferrals are first directed into the In-Service
Distribution Account. The election of the time and manner of payment will be applicable
to all amounts in the In-Service Distribution Account and cannot be changed until the
Distribution Option Period has terminated and a new Distribution Option Period has begun,
at which time, a new In-Service Distribution Account shall be established for future deferrals.
An election to change the time and manner of payment of amounts deferred into the In-
Service Distribution Account: 1) must delay distribution of such amount for at least 5 years
beyond the original distribution date; 2) must be made at least 12 months before the original
distribution date; and 3) will not be effective until 12 months after the Participant makes
the new election.
Amounts credited to the In-Service Distribution Account must remain in the In-
Service Distribution Account for at least two years. In the event a Participant’s In-Service
Distribution Account includes amounts deferred within two years of the date on which the
Participant has elected a distribution of his In-Service Distribution Account, deferrals in an
amount equal to the deferrals made within the prior two-year period, measured from the
date of distribution, and earnings attributable to such amounts, shall remain credited to the
In-Service Distribution Account until all such deferrals have been credited to the Plan for
two years, at which time, they shall be distributable as soon as administratively feasible in
accordance with the Participant’s election.
ARTICLE 7. DISTRIBUTION OF BENEFITS TO PARTICIPANTS
Section 7.1. Benefits Under the Retirement Distribution Option. Benefits under the
Retirement Distribution Option shall be paid to a Participant as follows. The Participant’s
Retirement Distribution Account shall be distributed in one of the following methods, as
elected by the Participant in accordance with Section 6.2: (i) in a lump sum, (ii) in annual
installments, or (iii) in accordance with any formula elected by the Participant that is
mathematically derived and is acceptable to the Company’s Human Resources Department
or a Plan administrator selected by the Company; except that amounts deemed to be allocated
to SLM Corporation stock as an Earnings Crediting Option shall be made in a lump sum in
SLM Corporation stock as provided in Section 12. A Participant’s Retirement Distribution
Account must be distributed in full before the end of the fortieth year following the year in
which the Participant Terminates Employment.
Except as provided in Section 12.1, the Participant’s Retirement Distribution
Account shall be distributed as elected by the Participant in accordance with Section 6.2:
(1) 12 months following Termination of Employment, or (2) January 31st of the year
following the year in which the Participant attains a stated age, as elected by the Participant
and at least 12 months following Termination of Employment. Notwithstanding the
foregoing, any distribution of amounts in excess of Grandfathered Funds made to a Specified
Employee as a result of the Specified Employee’s separation from Service may not be made