[HISTORY: Adopted by the Town of Clinton 8-31-2016. Amendments
noted where applicable.]
As used in this chapter, the following terms shall have the
meanings indicated:
The Clinton Volunteer Fire Department.
Monthly contributions after 20 years of service at 65 years of age as described in § 110-3A.
Contribution of $1,000 annually to a 457E plan as described in § 110-3B.
Those enrolled in the plan.
As described in § 110-3 and referenced throughout the document.
The Town of Clinton.
Members of CVFD who have completed one year of continuous service
and meet the eligibility requirements set forth in the CVFD Tax Abatement
Ordinance (attached),[1] will be enrolled in the plan.
[1]
Editor's Note: Said ordinance is on file in the Town
offices.
A.
Members who elected to enroll in the defined benefit plan in May 2015 will be eligible to receive a benefit of $400 a month, after completing 20 years of service and reaching the age of 65. Each year of service must comply with the requirements of § 110-2. The benefit will be paid to the member until he or she is deceased; there are no survivor benefits.
B.
Those members not electing to be in the defined benefit plan in May
2015 will be enrolled in a defined contribution (457E) plan.
(1)
Members will receive a contribution of $1,000 to this fund for each year they meet the eligibility requirements of § 110-2, commencing at the adoption date of this chapter.
(2)
Members must have five years of eligibility to be vested in the defined
contribution.
*See § 110-5, Leave of absence/break in service for exceptions.
(3)
Members must designate a beneficiary who will take over ownership
of the plan upon the member's death.
(4)
Members cannot contribute on their own behalf to this plan.
The Town will contribute the entire cost of the benefits and
will retain an actuary to annually determine the appropriate amount
necessary to fund the plan.
A.
Leave of absence. A CVFD member who has been an eligible plan participant
may request a leave of absence in accordance with CVFD bylaws. If
granted the member will not lose any past service counting towards
the defined benefit or vesting in the defined contribution. They,
however, do not accumulate time during the leave of absence.
B.
Break in service. A CVFD member who is a participant of either plan and has met the eligibility requirements of § 110-2 in the previous year can request a break in service. Upon his or her return, he or she will have his or her prebreak and post-break service aggregated for the purpose of eligibility and vesting.
*Breaks in service must be approved in accordance with CVFD
bylaws.
A.
The Town expects to continue the plan indefinitely, but, as future
conditions cannot be foreseen, the Town reserves the right to suspend
or discontinue the contributions and/or terminate the plan at any
time. This must be done by a vote of the Town's legislative body
following a public hearing.
B.
At no time, however, may any part of the contributions made by the
Town be used for purposes other than those provided for in the plan.
C.
Upon termination or partial termination of the plan or upon suspension
of contributions to the plan, the assets of the plan shall be allocated
as follows:
(1)
First. Complete commitment to participants of the defined benefit
already in pay status for that fiscal year.
(2)
Second. To participants of the defined benefit not in pay status:
divide any remaining funds amongst them; prorated based on years of
service and contribute that amount to a 457E, which they can convert
via a 1035 rollover.
(3)
Third. Participants in the defined contribution will be allowed to
convert assets, if vested, via a 1035 rollover into personal ownership.
(4)
Any residual assets of the plan remaining after all of the above
conditions have been met shall be returned to the Town.
A.
Participant rights. All CVFD members participating in the plan are
volunteers in service of the CVFD. This plan in no way shall be construed
as a contract of employment between the Town and any CVFD member.
B.
Assignment. The interest of a participant in this plan may not be
assigned, sold, alienated, discounted or pledged as collateral for
a loan or as a security for the performance of an obligation or for
any other purpose whatsoever. No such interest shall be subject to
attachment, garnishment, sequestration or other legal, equitable or
other process.
C.
Qualified domestic relations order. Distribution to an alternate
payee shall be permitted if such distribution is authorized by a qualified
domestic relations order which will have the meaning as set forth
under IRC section 414.
D.
Applicable law. This plan shall be construed in accordance with the
laws of the State of Connecticut, except when such laws are superseded
by federal laws.
E.
Important plan dates.
(1)
All benefits for Plan A shall be retroactive to July 1, 2016, and
based on member eligibility as of October 31, 2015, statistics.
(2)
All benefits for Plan B shall be deposited into the 457E member's
account for year one as soon as the accounts are established.
(3)
For all following eligible years, the funds shall be deposited into
the member's accounts by the third week of July of that calendar
year.
