Sallie Mae 2015 Annual Report Download - page 224

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earlier than the first day of the seventh month following the Specified Employee’s date of
separation from Service.
A lump sum benefit shall equal the value of the Retirement Distribution Account as
of the Valuation Date immediately preceding the date of payment. The first annual
installment payment shall equal (i) the value of such Retirement Distribution Account as of
the Valuation Date immediately preceding the date of payment, divided by (ii) the number
of annual installment payments elected by the Participant in the Enrollment Agreement,
pursuant to which such Retirement Distribution Account was established. The remaining
annual installments shall equal (i) the value of such Retirement Distribution Account as of
the Valuation Date immediately preceding Plan Year divided by (ii) the number of
installments remaining.
With respect to Grandfathered Funds, a Participant may accelerate the distribution
of his Retirement Distribution Account balance upon the occurrence of a Change in Control.
With respect to amounts in excess of Grandfathered Funds, a Participant’s Retirement
Distribution Account balance shall become immediately due and payable upon the
occurrence of a Change in Control only if the Change in Control satisfies the requirements
of Code Section 409A(a)(2)(A)(v) (and the guidance issued thereunder). For purposes of
this Section 7.1, a Change in Control means a change in the ownership or effective control
of the Corporation or in the ownership of a substantial portion of the assets of the Corporation,
as determined in accordance with the requirements of Code Section 409A.
Section 7.2. Benefits Under the In-Service Distribution Option. Benefits under the In-
Service Distribution Option shall be paid to a Participant as follows:
(a) In-Service Distributions. In the case of a Participant who continues in Service
with the Company, the Participant’s In-Service Distribution Account for any
Distribution Option Period shall be paid to the Participant between January 1
and January 31 of the Plan Year elected by the Participant in the Enrollment
Agreement pursuant to which such In-Service Distribution Account was
established, in one lump sum or in annual installments payable over 2, 3, 4,
or 5 years. Any lump sum benefit payable in accordance with this paragraph
shall be paid between January 1 and January 31 of the Plan Year elected by
the Participant in accordance with Section 6.3, in an amount equal to the
value of such In-Service Distribution Account as of the Valuation Date
immediately preceding the date of payment Annual installment payments, if
any, shall commence between January 1 and January 31 of the Plan Year as
elected by the Participant in accordance with Section 6.3, in an amount equal
to (i) the value of such In-Service Distribution Account as of the Valuation
Date immediately preceding the date of payment, divided by (ii) the number
of annual installment payments elected by the Participant in the Enrollment
Agreement pursuant to which such In-Service Distribution Account was
established. The remaining annual installments shall be paid between
January 1, and January 31 of each succeeding year in an amount equal to