§ 35.109. TERMINATION OF PLAN.

(A)

The plan may be terminated by the City at any time by delivering to the Committee in writing an ordinance of the Commission, duly certified by an official of the City, specifying that the plan is being terminated or contributions thereunder are being permanently discontinued. The plan shall otherwise terminate only upon adjudication by a court of competent jurisdiction that the City is bankrupt or insolvent (whether the proceedings be voluntary or involuntary), dissolution of the City or upon its liquidation, merger, or consolidation without provisions being made by its successor, if any, for the continuation of the plan.

(B)

Upon termination of the plan for any reason, or upon written notice to the Committee that contributions thereunder are being permanently discontinued, or upon discontinuation of contributions for other than a temporary period, the Trust Fund shall be apportioned and distributed in accordance with the following procedure:

(1)

The Retirement Committee, subject to approval of the Commission, shall determine the date of distribution and the asset value to be distributed, after taking into account the expenses of that distribution.

(2)

The Committee, subject to approval of the Commission, shall determine the method of distribution of plan assets, and shall apportion those assets as follows:

(a)

An amount equal to each participant's contribution less the aggregate of any retirement income payments made to that participant will be determined, and that amount will be apportioned from the asset value. The asset value, if insufficient to provide that amount in full, will be apportioned among those participants in proportion to the amounts determined with respect to them.

(b)

Apportionment will next be made with respect to each retired participant receiving a retirement income through the plan on the plan termination date, each person receiving a retirement income on that date on account of a deceased participant or a retired (but since deceased) participant, and each participant who has, by that date, become eligible for normal retirement but has not yet retired, in the amount required to provide the retirement income; provided that, if the asset value is less than the aggregate of those amounts, the amounts will be proportionately reduced so that the aggregate of the reduced amounts will be equal to the asset value.

(c)

If there is any asset value remaining after the apportionment under subdivision (B)(2)(a) and (b) of this Section, apportionment shall next be made with respect to each participant or former participant who has both attained the age of fifty-five (55) years and completed at least fifteen (15) years of credited service, or has completed twenty (20) years of credited service, but has not yet begun to receive retirement income under the plan. Apportionment shall be made to such participants and former participants in the amount required to provide the actuarial equivalent of the retirement income accrued to the plan termination date; provided that, if the remaining asset value is less than the aggregate of the amounts to be apportioned, those amounts shall be proportionately reduced so that the aggregate of the reduced amounts will be equal to the remaining asset value.

(d)

If there is any asset value remaining after the apportionments under divisions (B)(2)(a), (b) or (c) of this Section, apportionment shall next be made with respect to each participant in the service of the City on that date who is not entitled to an apportionment under divisions (B)(2)(a), (b) or (c) of this Section, but who has completed at least five (5) years of credited service, in the amount required to provide the actuarially equivalent single-sum value of the vested deferred retirement income accrued to the date of plan termination. However, if the remaining asset value is less than the aggregate of the amounts apportioned, the latter amounts shall be proportionately reduced so that the aggregate of those reduced amounts will be equal to the remaining asset value.

(e)

If there is any asset value remaining after the apportionments under divisions (B)(2)(a) through (d) of this Section, apportionment shall next be made with respect to each participant in the service of the City on such date who is not entitled to an apportionment under division (B)(2)(a), (b), (c) or (d) of this Section, in the amount required to provide the actuarially equivalent single-sum value of the nonvested deferred retirement income accrued to the date of plan termination. If the remaining asset value be less than the aggregate of the amounts to be apportioned hereunder, those latter amounts shall be proportionately reduced so that the aggregate of the reduced values will be equal to the remaining asset value.

(f)

In the event that there is asset value remaining after the full apportionments specified in divisions (B)(2)(a) through (e) of this Section, and under the provisions of Section 35.097(I) of this subchapter, the excess shall be returned to the City.

(3)

The order of priorities for, and the amounts of, distribution set forth in division (B)(2) of this Section shall be subject to the limitations provided by Section 35.097(I) of this subchapter, and to the distributions not being determined to be otherwise discriminatory by the Internal Revenue Service. In the event either the limitations under Section 35.097(I) of this subchapter become effective or the Internal Revenue Service rules that the distributions are otherwise discriminatory, adjustment may be made in the priorities and amounts of distribution as may be required to satisfy the requirements of subsection 35.097(I) of this subchapter or the Internal Revenue Code.

(4)

As soon as practicable after receipt by the City of a determination letter from the Internal Revenue Service stating that the method of distribution in this Section will not adversely affect the continued qualified status of the plan, the Retirement Committee shall distribute, in accordance with the manner of distribution determined by the Committee, the amounts apportioned under divisions (B)(2) or (3) of this Section, or as may otherwise be required by law.

(Code 1980, §§ 18-98, 18-170; Am. Ord. No. 78-93, passed 12/7/93; Ord. No. 45-17 , § 14, passed 12/5/17)