[Ord. No. 287,
passed 8-10-1995]
This plan may be amended or terminated at any time, retroactively
or prospectively, by Township Council, provided, however, that no
modification or amendment which affects rights to any benefits accrued
by reason of contributions theretofore made under the plan shall be
made except to the extent necessary or appropriate to qualify or continue
to qualify the plan under the Code or to comply with any other requirements
of law, and, provided, further, that no termination, modification
or amendment shall permit any part of the corpus or income of the
fund to be used for or diverted to purposes other than for the exclusive
benefit of members and their beneficiaries under the plan.
[Ord. No. 287,
passed 8-10-1995]
Upon complete discontinuance of the employer's contributions
or full or partial termination of the plan, all members' rights
to their accrued benefits shall become fully vested and shall not
thereafter be subject to forfeiture except to the extent that law
or regulations may preclude such vesting in order to prevent discrimination
in favor of highly compensated employees. However, a member's
recourse toward satisfaction of his or her nonforfeitable benefits
shall be limited to the plan assets. Upon final termination of the
plan, the trustee shall distribute all assets remaining in the trust,
after payment of any expenses properly chargeable to the trust, in
accordance with the manner and priority described for allocation upon
termination in this Article, but such allocation shall be reduced
by the value of any prior payments under the plan.
[Ord. No. 287,
passed 8-10-1995]
(a)
Except as otherwise required by law, the value of the trust funds
remaining after providing for the expenses of final administration
of the plan shall, to the extent sufficient, be allocated for the
purpose of paying retirement benefits under the plan in the following
order of precedence:
(1)
First, to benefits attributable to a member's voluntary
contributions.
(2)
Second, to benefits attributable to a member's mandatory
contributions.
(3)
Third, in the case of benefits payable as an annuity:
A.
In the case of the benefit of a member or beneficiary which
was in pay status as of the beginning of the three-year period ending
on the termination of the plan, to each such benefit, based on the
provisions of the plan (as in effect during the five-year period ending
on such date) under which such benefit would be the least, provided,
however, that the lowest benefit in pay status during a three-year
period shall be considered the benefit in pay status for such period.
B.
In the case of a member's or beneficiary's benefit
(other than a benefit described in paragraph (a)(1)A. hereof) which
would have been in pay status as of the beginning of such three-year
period if the member had retired prior to the beginning of the three-year
period and if the member's benefits had commenced (in the beginning
of such period), to each such benefit based on the provisions of the
plan (as in effect during the five-year period ending on such date)
under which such benefit would be the least.
(4)
Fourth, to all other nonforfeitable benefits under the plan.
(5)
Fifth, to all other benefits under the plan.
(b)
For the purposes of subsection (a) hereof:
(1)
The amount allocated under any paragraph of subsection (a) hereof,
with respect to any benefit, shall be properly adjusted for any allocation
of assets with respect to that benefit under a prior paragraph of
subsection (a) hereof.
(2)
If the assets available for allocation under any paragraph of
subsection (a) hereof are insufficient to satisfy in full the benefits
of all individuals which are described in the paragraph, the assets
shall be allocated pro-rata among such individuals on the basis of
the present value (as of the termination date of the plan) of their
respective benefits described in such subsection.
(3)
If the assets available for allocation under paragraph (a)(3)
hereof are not sufficient to satisfy in full the benefits of individuals
described in such paragraph, the assets shall be allocated to the
benefits of individuals described in such paragraph on the basis of
the benefits which would have been described in such paragraph under
the plan as in effect at the beginning of the five-year period ending
on the date of the termination of the plan. If the assets available
for allocation under the preceding sentence are sufficient to satisfy
in full the benefits described in the preceding sentence (without
regard to this sentence), then, for the purpose of the preceding sentence,
benefits of individuals described in such sentence shall be determined
on the basis of the plan, as amended by the most recent plan amendment
effective during such five-year period under which assets available
for allocation are sufficient to satisfy in full the benefits of the
individual described in the preceding sentence, and any assets remaining
to be allocated under such preceding sentence shall be allocated under
such preceding sentence on the basis of the plan, as amended by the
next succeeding plan amendment effective during such period.
(c)
If the IRS determines that the allocation made pursuant to this Article results in discrimination prohibited by the law, then, if required to prevent the disqualification of the plan under the law, the assets allocated under subsection (a) hereof shall be reallocated to the extent necessary to avoid such discrimination.
(d)
Any increase or decrease in the value of the plan assets, occurring
during the period beginning on the later of the date a trustee is
appointed under the law or the date on which the plan is to be terminated,
shall be allocated in accordance with the provisions of the law.
[Ord. No. 287,
passed 8-10-1995]
The assets of the plan allocated as provided above in this Article
shall be distributed in such manner as the trustee shall determine,
including, without limitation, lump-sum cash payments, cash installments,
the purchase of immediate or deferred annuities, or any combination
thereof. Any residual assets of a plan may be distributed to the employer
if, and only if, all liabilities of the plan to the members and their
beneficiaries have been satisfied and such distribution does not contravene
any provision of law.
[Ord. No. 287,
passed 8-10-1995]
The trustee shall, as part of winding up the affairs of the
plan pursuant to its termination, file such terminal and supplemental
reports with the Secretary of Labor and the IRS as may be required.
[Ord. No. 287,
passed 8-10-1995]
Except as provided by law and Section 288.40, the assets of the plan shall never inure to the benefit of the employer and shall be held for the exclusive purposes of providing benefits to members in the plan and their beneficiaries and defraying reasonable expenses of administering the plan.
