EXHIBIT 99.02
SPECIAL CODE SECTION 401(a)(9) AMENDMENT
TO THE
CARDINAL HEALTH PROFIT SHARING,
RETIREMENT AND SAVINGS PLAN
BACKGROUND INFORMATION
A. Cardinal Health, Inc. (the "Company") maintains the Cardinal Health
Profit Sharing, Retirement and Savings Plan (the "Plan") for the
benefit of its eligible employees and their beneficiaries.
B. The Company desires to amend the Plan to comply with the requirements
of Section 401(a)(9) of the Internal Revenue Code of 1986, as amended
(the "Code") and the final and temporary regulations issued thereunder
and intends this Special Amendment as good faith compliance with the
requirements of the model plan amendment issued in Rev. Proc. 2002-29
and the guidance issued thereunder.
C. Section 13.02 of the Plan permits the Company to amend the Plan at any
time.
AMENDMENT OF THE PLAN
The Plan is hereby amended as set forth below effective January 1,
2003, unless some later effective date is specified.
1. A new Article VI.A. referencing the minimum distribution requirements
is hereby added to the Plan to read in its entirety as follows:
ARTICLE VI.A.
REVISED MINIMUM REQUIRED DISTRIBUTIONS
Section 6A.01. EFFECTIVE DATES. The provisions of this Article VI.A.
will apply for purposes of determining the required minimum distributions for
calendar years beginning on or after January 1, 2003.
Section 6A.02. DEFINITIONS. For purposes of this Article VI.A., the
following definitions shall apply:
A. "Designated Beneficiary" is the individual who is designated as the
beneficiary under Plan Section 1.03 and is the Designated Beneficiary under Code
Section 401(a)(9) and Section 1.401(a)(9)-1, Q&A-4 of the Treasury Regulations.
B. "Distribution Calendar Year" is a calendar year for which a minimum
distribution is required. For distributions beginning before the Participant's
death, the first Distribution Calendar Year is the calendar year immediately
preceding the calendar year which contains the participant's Required Beginning
Date. For distributions beginning after the Participant's death, the first
Distribution Calendar Year is the calendar year in which the distributions are
required to begin under Section 6.03.B. The required minimum distribution for
the Participant's first Distribution Calendar Year will be made on or before the
Participant's Required Beginning Date. The required minimum distribution for
other Distribution Calendar Years, including the required minimum distribution
for the Distribution Calendar Year in which the Participant's Required Beginning
Date occurs, will be made on or before December 31 of that Distribution Calendar
Year.
C. "Life Expectancy" is a beneficiary's life expectancy as computed by
use of the Single Life Table in Section 1.401(a)(9)-9 of the Treasury
Regulations.
D. "RMD Account Balance" is the account balance as of the last
valuation date in the calendar year immediately preceding the Distribution
Calendar Year (the "VALUATION CALENDAR YEAR") increased by the amount of any
contributions made and allocated or forfeitures allocated to the account balance
as of dates in the Valuation Calendar Year after the valuation date and
decreased by distributions made in the Valuation Calendar Year after the
valuation date. The account balance for the Valuation Calendar Year includes any
amounts rolled over or transferred to the Plan either in the Valuation Calendar
Year or in the Distribution Calendar Year if distributed or transferred in the
Valuation Calendar Year.
E. "Special Election" is a provision of the Plan included in this
Article which supersedes the general presumptions set forth in Code Section
401(a)(9) and the Treasury Regulations thereunder. To the extent that this
Article does not include any provisions for Special Elections, the default
provisions of Code Section 401(a)(9), as set forth below shall apply.
Section 6A.03. TIME AND MANNER OF DISTRIBUTION. Subject to any Special
Election set forth in this Article, the following rules shall apply:
A. Required Beginning Date. The Participant's entire interest will be
distributed, or begin to be distributed, to the Participant no later than the
Participant's Required Beginning Date.
B. Death of Participant Before Distributions Begin. If the Participant
dies before distributions begin, the Participant's entire interest will be
distributed, or begin to be distributed, no later than as follows:
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(i) If the Participant's surviving spouse is the Participant's sole
Designated Beneficiary, then, except as provided herein, distributions to the
surviving spouse will begin by December 31 of the calendar year immediately
following the calendar year in which the Participant died, or by December 31 of
the calendar year in which the Participant would have attained age 70 1/2, if
later.
(ii) If the Participant's surviving spouse is not the Participant's
sole Designated Beneficiary, then, except as provided herein, distributions to
the Designated Beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died.
(iii) If there is no Designated Beneficiary as of September 30 of the
year following the year of the Participant's death, the Participant's entire
interest will be distributed by December 31 of the calendar year containing the
fifth anniversary of the Participant's death.
(iv) If the Participant's surviving spouse is the Participant's sole
Designated Beneficiary and the surviving spouse dies after the Participant but
before distributions to the surviving spouse begin, this Section 6A.03.B., other
than Section 6A.03.B.(i)], will apply as if the surviving spouse were the
Participant.
For purposes of this Section 6A.03.B. and Section 6A.05., unless Section
6A.03.B.(iv) applies, distributions are considered to begin on the Participant's
Required Beginning Date. If Section 6A.03.B.(iv) applies, distributions are
considered to begin on the date distributions are required to begin to the
surviving spouse under Section 6A.03.B.(i). If distributions under an annuity
purchased from an insurance company irrevocably commence to the Participant
before the Participant's Required Beginning Date (or to the Participant's
surviving spouse before the date distributions are required to begin to the
surviving spouse under Section 6A.03.B.(i)), the date distributions are
considered to begin is the date distributions actually commence.
C. Forms of Distribution. Unless the Participant's interest is
distributed in the form of an annuity purchased from an insurance company or in
a single sum on or before the Required Beginning Date, as of the first
Distribution Calendar Year distributions will be made in accordance with
Sections 6A.04. and 6A.05. of this Article VI.A. If the Participant's interest
is distributed in the form of an annuity purchased from an insurance company,
distributions thereunder will be made in accordance with Code Section 401(a)(9)
and the Treasury Regulations.
Section 6A.04. REQUIRED MINIMUM DISTRIBUTIONS DURING PARTICIPANT'S
LIFETIME. Subject to any Special Election set forth in this Article, the
following rules shall apply:
A. Amount of Required Minimum Distributions for Each Distribution
Calendar Year. During the Participant's lifetime, the minimum amount that will
be distributed for each Distribution Calendar Year is the lesser of:
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(i) the quotient obtained by dividing the RMD Account Balance by the
distribution period in the Uniform Lifetime Table set forth in Treasury
Regulations Section 1.401(a)(9)-9, using the Participant's age as of the
Participant's birthday in the Distribution Calendar Year; or
(ii) if the Participant's sole Designated Beneficiary for the
Distribution Calendar Year is the Participant's spouse, the quotient obtained by
dividing the RMD Account Balance by the number in the Joint and Last Survivor
Table set forth in Treasury Regulations Section 1.401(a)(9)-9, using the
Participant's and the Spouse's attained ages as of the Participant's and
spouse's birthdays in the Distribution Calendar Year.
B. Lifetime Required Minimum Distributions Continue Through Year of
Participant's Death. Required minimum distributions will be determined under
this Section 6A.04 beginning with the first Distribution Calendar Year and up to
and including the Distribution Calendar Year that includes the Participant's
date of death.
Section 6A.05. REQUIRED MINIMUM DISTRIBUTIONS AFTER PARTICIPANT'S
DEATH. Subject to any Special Election set forth in this Article, the following
rules shall apply:
A. Death On or After Date Distributions Begin.
(i). Participant Survived by Designated Beneficiary. If the Participant
dies on or after the date distributions begin and there is a Designated
Beneficiary, the minimum amount that will be distributed for each Distribution
Calendar Year after the year of the Participant's death is the quotient obtained
by dividing the RMD Account Balance by the longer of the remaining Life
Expectancy of the Participant or the remaining Life Expectancy of the
Participant's Designated Beneficiary, determined as follows:
(1) The Participant's remaining Life Expectancy is calculated
using the age of the Participant in the year of death, reduced by one for each
subsequent year.
(2) If the Participant's surviving spouse is the Participant's
sole Designated Beneficiary, the remaining Life Expectancy of the surviving
spouse is calculated for each Distribution Calendar Year after the year of the
Participant's death using the surviving spouse's age as of the spouse's birthday
in that year. For Distribution Calendar Years after the year of the surviving
spouse's death, the remaining Life Expectancy of the surviving spouse is
calculated using the age of the surviving spouse as of the spouse's birthday in
the calendar year of the spouse's death, reduced by one for each subsequent
calendar year.
(3) If the Participant's surviving spouse is not the
Participant's sole Designated Beneficiary, the Designated Beneficiary's
remaining Life Expectancy is calculated using the age of the Beneficiary in the
year following the year of the Participant's death, reduced by one for each
subsequent year.
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(ii). No Designated Beneficiary. If the Participant dies on or after
the date distributions begin and there is no Designated Beneficiary as of
September 30 of the year after the year of the Participant's death, the minimum
amount that will be distributed for each Distribution Calendar Year after the
year of the Participant's death is the quotient obtained by dividing the RMD
Account Balance by the Participant's remaining Life Expectancy calculated using
the age of the Participant in the year of death, reduced by one for each
subsequent year.
B. Death Before Date Distributions Begin.
(i) Participant Survived by Designated Beneficiary. Except as provided
herein, if the Participant dies before the date distributions begin and there is
a Designated Beneficiary, the minimum amount that will be distributed for each
Distribution Calendar Year after the year of the Participant's death is the
quotient obtained by dividing the Participant's Account Balance by the remaining
Life Expectancy of the Participant's Designated Beneficiary, determined as
provided in Section 6A.05.A.
(ii) No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no Designated Beneficiary as of September 30 of
the year following the year of the Participant's death, distribution of the
Participant's entire interest will be completed by December 31 of the calendar
year containing the fifth anniversary of the Participant's death.
(iii) Death of Surviving Spouse Before Distributions to Surviving
Spouse are Required to Begin. If the Participant dies before the date
distributions begin, the Participant's surviving spouse is the Participant's
sole Designated Beneficiary, and the surviving spouse dies before distributions
are required to being to the surviving spouse under Section 6A.03.B.(i), this
Section 6A.05.B. will apply as if the surviving spouse were the Participant.
Section 6A.06 EARLY EFFECTIVE DATE AND GENERAL RULES
A. Coordination with Minimum Distribution Requirements Previously in
Effect. If Plan Section 6A.01 above specifies an effective date of this Article
VI.A. that is earlier than January 1, 2003, required minimum distributions for
2002 under this Article VI.A. will be determined as follows:
(i) If the total amount of 2002 required minimum distributions under
the Plan made to the Distributee prior to the effective date of this Article
VI.A. equals or exceeds the required minimum distributions determined under this
Article VI.A., then no additional distributions will be required to be made for
2002 on or after such date to the Distributee.
(ii) If the total amount of 2002 required minimum distributions under
the Plan made to the Distributee prior to the effective date of this Article
VI.A. is less than the amount determined under this Article VI.A., then required
minimum distributions for 2002 on and after such date will be determined so that
the total amount of required minimum distributions for 2002 made to the
Distributee will be the amount determined under this Article VI.A.
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B. Precedence. The requirements of this Article VI.A. will supersede
any contrary provisions of the Plan.
C. Requirements of Treasury Regulations Incorporated. All distributions
required under this Article VI.A. will be determined and made in accordance with
the Treasury Regulations under Code Section 401(a)(9).
D. TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Article VI.A., distributions may be made under a designation
made before January 1, 1984, in accordance with section 242(b)(2) of the Tax
Equity and Fiscal Responsibility Act ("TEFRA") and the provisions of the Plan
that relate to TEFRA Section 242(b)(2).
2. All other Plan provisions remain in full force and effect.
CARDINAL HEALTH, INC.
By: /s/ Carole Watkins
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Its: EVP, HR
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Date: 8-19-03
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