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Defined contribution that: A. Interest will be paid on the lump sum amount deferred; B. During the period of the deferral; C. At the rate actually earned by the Association on Special Fund asset investments, but not to exceed 5% per M.S.356.215 Subdivision 4d., and D. Shall be compounded annually based on calendar year balances. SECTION 7. PAYMENT UPON DEATH OF ACTIVE MEMBER OR DEFERRED PENSIONER In the event of death of an active member or deferred pensioner who has not attained age 50 but is otherwise eligible for the pension benefit, the member's individual account balance will be paid to the named beneficiary as identified in the member's Beneficiary Designation Form. Payment will be made within 30 days after approval by the Board of the benefit application. The Board shall have the right and authority to obtain a certified copy of the Death Certificate prior to approving the application. The Association is not obliged to pay interest on the deceased member's account balance if payment is delayed due to the incapacity, uncooperativeness or unavailability of the named beneficiary. If legal expenses must be incurred by the Association in connection with its final disposition of the account balance, such as a lawsuit by an unnamed beneficiary claiming rights to or interest in the benefit, then those costs may be deducted from the account balance payable. SECTION 8. OPTIONAL PAYMENT FORMS OF THE RETIREMENT BENEFIT Because of the varying circumstances in each member's retirement planning, optional benefit payment methods are offered. Selection should be done after consultation with a tax consultant, insurance and/or estate planner, or an attorney. Any of the following may be selected by designating the payment method on the benefit application form: A. Lump sum. A single check payment payable to the eligible retiree. RELIEF ASSN. BY-LAWS Page 11