Town of Suffield, CT Article II Pension Plan

[Adopted 6-29-1961; amended in its entirety 7-1-1989 (Ch. 2, Art. III, Div. 2, of the 1987 Code)[1]]

[1] Note: An amendment effective July 1, 1989, amended and restated the pension plan in order to clarify the provisions of the plan and in order to make certain changes. Except where noted herein, the provisions of this amended and restated plan shall apply only to employees who terminate employment on or after July 1, 1989. The rights and benefits of any other employee shall be governed by the terms of the plan in effect on his date of termination of employment.

§ 102-4 Definitions.

[Amended 4-25-1991 by Ord. No. 91-01]

A. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

ACCRUED BENEFIT

The benefit determined as of any given date under § 102-8A of this plan and payable at a participant's normal retirement date.

ACTUARIAL EQUIVALENT

A benefit which is equal in value to the normal form of benefit and is calculated using the following actuarial assumptions:

(1) Interest rate: 6%.

(2) Mortality for participants: UP-1984 Table, ages set back two years.

(3) Mortality for beneficiaries: UP-1984 Table, ages set back five years.

ACTUARY

A member of the Society of Actuaries who is enrolled by the Joint Board for the Enrollment of Actuaries.

ANNUITY COMMENCEMENT DATE

The first of the month when annuity payments are to begin under the plan.

AVERAGE MONTHLY EARNINGS

The average of the monthly earnings during the three years out of the last seven years of full-time employment in which employee contributions were made which produce the highest average immediately preceding a participant's actual retirement date.

BENEFICIARY

Any individual or entity most recently designated to receive benefits upon the death of any person covered by this plan.

CREDITED INTEREST

The rate of interest to be credited to participants' contributions as provided in § 102-13I of this plan.

CREDITED SERVICE

The service counted for calculating benefits as determined under § 102-5A of this plan.

EFFECTIVE DATE

September 1, 1961.

EMPLOYEE

Any person employed on a full-time basis by the Town, including employees of the Board of Education. Any person covered by the State Teachers Retirement System and any person appointed by the General Assembly or by the Governor of the State of Connecticut will not be included in this plan. For the purpose of this definition a person is a full-time employee if he/she is regularly employed by the employer for at least 20 hours per week.

FISCAL YEAR

The 12 months from July 1 of any year to June 30 of the following year, both dates inclusive.

MONTHLY EARNINGS

A participant's monthly compensation for service to the Town, as reported annually on IRS Form W-2. Monthly earnings include the following: overtime payments and amounts which are contributed by the employer pursuant to a salary reduction agreement and which are not includable in the gross income of the participant under Internal Revenue Code § 125. Monthly earnings do not include the following: reimbursement for accumulated sick time, unused vacation time, or other special payments made to a participant at retirement or termination of employment, off-duty pay for police officers, or compensation from which a participant did not make the contributions required under § 102-13H of the plan. For a participant who at any time during the year receives compensation for less than 30 hours a week, monthly earnings will be adjusted by multiplying the participant's monthly earnings by the following fraction (but less than 1.000): Hours for which participant would have received compensation if employed 30 hours per week/Hours for which participant actually received compensation.

[Amended 8-29-1994 by Ord. No. 94-02]

NORMAL RETIREMENT DATE

The date specified in § 102-7A herein.

PARTICIPANT

An employee who is eligible to participate according to § 102-6 of this plan. "Participant" shall not include retired participant, terminated participant, or any former participant who has become ineligible for any reason.

PARTICIPANT CONTRIBUTIONS

The employee contributions required for membership into the plan in accordance with § 102-13.

PENSION FUND

The assets held by the trustee for the plan in accordance with any existing trust agreement.

PLAN

The pension plan of the Town as stated herein and as it may be amended from time to time.

PLAN ADMINISTRATOR

The Retirement Commission as designated in § 102-14.

PLAN YEAR

The period beginning each July 1 and ending each June 30.

RETIRED PARTICIPANT

A former participant who retired and commenced receiving benefits in accordance with § 102-7A through C or a former terminated member who retired and commenced receiving benefits in accordance with § 102-10.

RETIREMENT DATE

The date a participant terminates service with the employer for the purposes of retirement benefit eligibility as provided in § 102-7.

SERVICE

Continuous employment with the Town of Suffield as provided in § 102-5 herein.

SPOUSE

The person to whom a participant, retired participant, or terminated participant is legally married.

TERMINATED PARTICIPANT

A former participant who has terminated employment with the employer and retained a vested right to a benefit in accordance with § 102-10.

TOWN

The Town of Suffield.

TRUST AGREEMENT

A written declaration of trust between the Town and the trustee.

TRUSTEE

The individuals or entity so designated by the trust agreement.

B. Construction. Wherever used herein a pronoun in the masculine gender shall be considered as including the feminine gender unless the context clearly indicates otherwise, and wherever used herein a pronoun in the singular form shall be considered as being in the plural form unless the context clearly indicates otherwise.

§ 102-5 Credited service.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Credited service.

(1) Credited service means that portion of a participant's service which is used to determine the amount of retirement benefit he/she may become eligible to receive, as provided in § 102-8. Credited service shall be measured in years and completed months, each such completed month being 1/12 of a year. Credited service shall include:

(a) Period of employment during which an employee participates in this plan by making the contributions required in § 102-13; and

(b) Service before September 1, 1961, which is subsequent to the participant's completion of three years of service and the attainment of age 30.

(2) If at any time during the year a participant receives compensation for less than 30 hours a week, the above credited service will be adjusted annually by multiplying it by the following fraction (but not greater than 1.000): Hours for which participant actually received compensation/Hours for which participant would have received compensation if employed 30 hours per week.

B. Military service. Leave of absence caused by military service in the Armed Forces of the United States of America or any of its allies shall be included when determining credited service, and the employee on such leave shall be deemed for purposes of this plan to be continuously employed by the Town during such leave of absence at the salary he/she was receiving from the Town upon the date of leaving, provided he/she shall return to active employment within 90 days of his actual discharge from military service and shall within one year thereafter make such contributions as would have been required of him/her had he/she remained in the active service of the Town at such salary.

C. Reemployment. Except for reemployed employees who did not withdraw their employee contributions upon prior termination, reemployed employees shall be considered new employees for purposes of determining service under the plan. Only credited service earned after reemployment will be used in calculating the participant's retirement benefit.

D. Special credited service "buy back" provision. Active employees covered under the plan as of March 1, 1985, may elect to buy back service before age 30 and all but one year of service before they became eligible to participate. The Retirement Commission has full authority to set the rules regarding the time period in which this buy back option may be exercised and the formula to determine the participant's contribution required to buy back the service.

E. Additional special credited service "buy back" provisions.

(1) Active employees covered under the plan as of January 1, 1987, may elect to buy back the first year of service with the Town which previously was used towards the eligibility requirements to become a participant of this plan. Effective October 31, 1986, employees may immediately elect to join the plan in accordance with the plan's rules for participation.

(2) Police officers may elect to buy back their "supernumery" time as credited service effective December 1, 1986. Beginning on that date, earnings and service resulting from "supernumery" duty will be considered eligible for treatment as monthly earnings and service for purposes of this plan.

(3) The Retirement Commission has full authority to set the rules regarding the time period in which these buy back options may be exercised and the formula to determine the participant's contribution required to buy back the service.

§ 102-6 Participation.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Eligible employees. An employee who was a participant on July 1, 1989, will continue to be a participant. Each other employee will be eligible to become a participant of the plan at any time during the 30 days following employment. Thereafter, the employee may elect to commence participation as of any subsequent July 1.

B. Required participation. Each eligible employee who entered the service of the Town after September 1, 1961, will be required to participate in the pension plan unless, within six months after entering the service of the Town or within six months after the establishment of this plan, he/she shall notify the Retirement Commission, in writing, of his intention not to participate in the plan. If any such employee now or hereafter employed shall give such notice of his intention not to participate or has not begun making contributions within the 30 days following employment, he/she shall not thereafter be admitted to the pension plan except on a future service basis and only upon application to participate starting on the next July 1.

C. Date of participation. An employee will become a participant as of the first day of the month coinciding with or next following the date he/she begins making the contributions required under § 102-8.

D. Reemployment. If a participant terminates his employment with the employer and is subsequently rehired by the employer, he/she will become a participant of the plan upon again satisfying the requirements of Subsections A through C above. However, a reemployed employee who did not withdraw his employee contributions upon prior termination is eligible for participation in the plan on his date of reemployment and needs only to satisfy the requirement contained in Subsection C to again become a participant of the plan.

§ 102-7 Benefit eligibility.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Normal retirement date. A participant's normal retirement date shall be the first day of the month coincident with or next following the earlier of the following:

(1) Later of a participant's 55th birthday or upon completion of 10 years of credited service; or

(2) Upon completion of 25 years of credited service; or

(3) Later of age 65 or upon completion of five years of credited service.

B. Early retirement date. Each participant who has attained age 50 and completed 15 years of credited service and whose service ceases by reason of retirement may elect, with the consent of the employer, to receive an early retirement benefit. Payment of this retirement benefit may be deferred to his normal retirement date or may commence on the first day of any month between the date the election is made and the participant's normal retirement date, as specified by the participant in his election. Benefits payable before normal retirement date will be adjusted as described in § 102-8C.

C. Late retirement date. A participant may continue employment after his normal retirement date. The late retirement date of any participant who is in employment with the employer beyond his normal retirement date shall be the first day of the month coincident with or next following the participant's date of termination of employment.

§ 102-8 Accrued benefits and retirement benefits.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Accrued benefit. The monthly accrued benefit of a participant shall be equal to 2% of the participant's average monthly earnings multiplied by his credited service.

B. Normal retirement benefit. The amount of normal retirement benefit payable to a participant who retires on his normal retirement date shall be equal to his accrued benefit determined as of such participant's normal retirement date.

C. Early retirement benefit. The amount of early retirement benefit payable to a participant who retires on an early retirement date shall be equal to one of the following:

(1) The accrued benefit as of the early retirement date, if benefits are to commence on the participant's normal retirement date.

(2) The benefit actuarially equivalent to his accrued benefit payable on the participant's normal retirement date, if benefits are to commence before the participant's normal retirement date.

D. Late retirement benefit. The amount of late retirement benefit payable to a participant who retires on a late retirement date shall be the participant's accrued benefit based on his average annual earnings and credited service at his late retirement date.

§ 102-9 Payment provisions and forms of payment.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Payment of retirement benefit. A participant's retirement benefit will be payable monthly. The first of such monthly payments shall be made as of the first of the month coincident with or next following the participant's retirement date, with subsequent monthly payments being made as of the first of each month thereafter.

B. Nonassignment. All retirement benefit payments, or other payments, are provided for the participant or other payee for the support and maintenance of such payee, and shall not be assigned, commuted (except as may be provided herein), or anticipated, and shall be free from the claims of all creditors to the fullest extent permitted by law.

C. Normal form of payment.

(1) Under this plan, retirement benefits will normally be paid on the modified cash refund form. This form provides that payments will be made to a participant in a level amount during his lifetime. Upon the participant's death, there will be paid to his beneficiary an amount equal to the excess, if any, of the participant contributions, together with credited interest specified in § 102-13I and computed thereon to his retirement date, over the sum of all retirement benefit payments made to the participant.

(2) In lieu of receiving his retirement benefit in this form but before benefit payments commence, a participant may elect to receive an actuarial equivalent benefit of equal value based on one of the optional forms of payment subsequently described in this section.

D. Joint annuitant option.

(1) The participant who elects this option will receive a reduced amount of retirement benefit during his lifetime so that, after his death, retirement benefits equal to 100%, 75%, 66 2/3%, or 50% thereof (as specified in the election) will be paid for the life of the joint annuitant designated by the participant if he/she survives the participant.

(2) At the participant's retirement date, if the option is in effect, the amount of retirement benefit will be the actuarial equivalent of the normal form of payment.

(3) This option will be inoperative if the joint annuitant is someone other than the participant's spouse and the reduced amount of retirement benefit payable to the member is not more than 50% of the amount of retirement benefit which would have been payable to him/her had the option not been elected. Such prohibition is designed to conform the plan to the Internal Revenue Service requirement that the amount of benefits provided a beneficiary of an employee, under various optional forms of payment, must be "incidental" to the basic purpose of providing retirement benefits to the employee himself.

(4) This option will be inoperative if the joint annuitant dies before the participant's retirement date or if the participant dies before his retirement date.

(5) At any time before his retirement date, the participant may elect or revoke this option or change the percentage of his benefit to be continued to his contingent pensioner by filing written notice with the employer.

E. Ten-year certain and life option.

(1) The participant who elects this option will receive a reduced amount of retirement benefit during his lifetime so that, if his death occurs within the ten-year period commencing upon his retirement date, retirement benefits in the same amount will be paid to the beneficiary designated by the participant for the balance of this ten-year period.

(2) At the participant's retirement date, if this option is in effect, the amount of retirement benefit payable to him/her will be the actuarial equivalent of the normal form of payment.

(3) This option will be inoperative if the participant dies before his retirement date.

(4) At any time before his retirement date a participant may elect or revoke this option by filing written notice with the employer.

F. Other options. Other optional forms of benefit payments may be made available to participants only through formal amendment to this plan.

G. Cost of living increase.

(1) Effective January 1, 1985, each participant who began receiving monthly benefits from this plan on or before January 1, 1984, and is receiving benefits (or the participant's beneficiary is receiving benefits) on January 1, 1985, shall receive an increase in monthly benefits payable for the same time period as are the January 1, 1985, pension benefits. The amount of benefit increase equals 1 1/2% of the January 1, 1985, pension benefit times the number of full years pension benefits have been received. Period of pension payments of less than one year shall not be recognized in this formula.

(2) This increase in monthly pension benefits is a one-time increase. There is no obligation on the part of the Town to provide increases of this type in future years.

§ 102-10 Termination of employment/withdrawal from plan.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Vested right after normal retirement date. A participant who terminates his employment with the Town on or after his normal retirement date shall have a vested right to 100% of his accrued benefit determined as of such date of termination regardless of the amounts of his accumulated service.

B. Termination before retirement.

(1) Vested rights before retirement. A participant who terminates employment prior to his normal or early retirement date, and who does not elect a refund of participant contributions with credited interest thereon, shall be 100% vested in his accrued benefit payable at his normal retirement date if he/she has completed the following years of service:

Effective	Years
7-1-1988	9
7-1-1990	8
7-1-1992	7
7-1-1994	6
7-1-1996	5

(2) Nonvested rights.

(a) A participant who terminates employment with less than the required years of service for full vesting shall forfeit all rights to benefits under the plan except for the return of his participant contributions with credited interest.

(b) A participant who is vested on his date of termination and elects a refund of his participant contributions with credited interest shall forfeit his entire accrued benefit. Such an election may be made any time prior to actual retirement.

(c) Upon subsequent reemployment, an employee who previously elected a refund of his participant contributions will be treated as a new employee for all purposes of this plan.

C. Withdrawal from the plan.

(1) A participant who ceases to make his employee contributions will no longer be an active participant. Monthly earnings and credited service will not be recognized after his contributions stop. For purposes of vesting in benefits, he/she will be treated the same as a terminated participant, based upon his credited service at the time his contributions stopped.

(2) If his employee contributions are returned to him/her, and he/she subsequently elects to again participate in the plan, only service after his subsequent date of participation will be recognized for determining his vesting status and his accrued benefit.

D. Vested accrued benefit. A participant's vested accrued benefit shall be payable at the participant's normal retirement date in a form as determined in accordance with § 102-9. If a participant or terminated participant has 15 or more years of service as of his date of termination, such participant may elect, in lieu of a benefit payable at normal retirement date, to receive a benefit payable on the first day of any month falling after his 50th birthday. Such early retirement benefit will be equal to the participant's accrued benefit reduced in accordance with § 102-8C.

§ 102-11 Death benefits.

A. Death of active participant with less than 10 years of credited service. If an active participant with less than 10 years of credited service dies before his benefits commence or if a terminated participant dies before his benefits commence, he/she shall not retain any nonforfeitable rights hereunder, other than the return of any participant contributions with credited interest, payable to his beneficiary.

B. Death of active participant with more than 10 years of credited service.

(1) Any active participant in the pension plan who dies after accruing 10 years of credited service as a participant of the plan shall have a death benefit paid to the participant's spouse. The participant's spouse shall be entitled to a monthly pension, with payment commencing on the first of the month coincident with or following death, equal to 50% of the participant's benefit calculated as though the participant had 25 years of credited service. The benefit is payable until the spouse dies or remarries.

(2) If there is no spouse, or should the spouse die before remarrying, a death benefit may be payable to the guardian of the participant's children. The benefit will be payable monthly, with the last payment on the first of the month in which falls the child's 18th birthday. The total combined monthly amount payable will equal the monthly benefit as determined in the preceding subsection. Each child's portion will be determined by allocating this monthly benefit equally among all the participant's children under age 18 on the date of the participant's death.

(3) If, upon a participant's death, there is no surviving spouse or child meeting the above qualifications, the death benefit payable will equal the employee's contributions accumulated with interest to the date of the participant's death. The accumulated contributions will be payable to a beneficiary designated by the participant, or, if no beneficiary is designated, to the participant's estate.

C. Death after actual retirement date. If a participant dies after he/she has retired, his death benefit will be determined under the form of payment then in effect. The various forms of payment are described in § 102-9.

§ 102-12 Disability.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Eligibility for benefits. Any participant in the pension plan who, after the attainment of age 50 and after 10 years of credited service as an employee of the Town, shall be totally and permanently disabled may be retired for disability, provided such participant qualified for disability benefits under the Federal Social Security Act. Such employee retired because of disability shall receive a pension benefit as provided under § 102-8 without reduction for the early commencement of such benefit.

B. Occupational disability. In the event that such total disability is shown to the satisfaction of the Retirement Commission to have been sustained during the performance of essential duties pertaining to his employment with the Town and such participant qualifies for disability benefits under the Federal Social Security Act, then such participant shall be entitled to retirement for disability irrespective of his age or the duration of his employment. Such employee retired because of disability shall receive a pension benefit as provided under § 102-8 without reduction for the early commencement of such benefit, and in no event shall such annual disability income benefit be less than 1/2 the annual pay rate of the participant at the time the disability was incurred, including payments under the Federal Social Security Act, payments under any federal or state law pertaining to workers' compensation and payments under any salary or wage continuance plan financed by the Town.

C. Recovery from disability. If a disabled participant should recover and resume employment as an employee prior to his retirement date, he/she shall immediately resume his status as a participant and his credited service for purposes of computing his retirement benefit under § 102-8 shall be resumed where it stopped on the date of commencement of disability benefit, but he/she shall be entitled to no credited service for the period during which he/she received disability benefits hereunder.

§ 102-13 Funding and participant contributions.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Town contributions. For the purpose of carrying out the funding policy in § 102-13B, the Town will maintain a trust agreement and will make periodic payments to the pension fund.

B. Contributions by the Town. The Town shall be liable to the Retirement Commission for such an amount on account of future pensions representing services of employees rendered prior to the inception of the pension plan and which amount shall be determined by the Retirement Commission on sound actuarial principles. In lieu of full payment initially of such an amount, the Town shall pay periodically, over a definite period not exceeding 30 years, such amounts as the Retirement Commission shall determine as necessary to discharge such disability, provided in no fiscal year shall the payment made on this account be less than regular interest on the amount of such liability as assumed for actuarial purposes still outstanding. The Town shall pay into the pension fund such amounts determined by the Retirement Commission on sound actuarial principles as necessary, in addition to contributions of the employees, to provide future pensions on account of services rendered by employees subsequent to the date upon which each shall begin participation in the pension plan.

C. Nondiversion. Except as provided in this section, no part of the pension fund shall be used for or diverted to purposes other than for the exclusive benefit of participants, their spouses or their beneficiaries covered under this plan prior to the satisfaction of all liabilities hereunder with respect to them, provided that any funds under this plan may be used to pay reasonable plan administration expenses.

D. Mistake in Town contribution. If the Town determines that a contribution to the pension fund has been made by mistake of fact, the Town shall direct the trustee or the insurance company to return that contribution to the Town within one year of the date the contribution was made.

E. Limitation of rights of employees. No person shall have any interest in or right to the pension fund except as expressly provided in this plan and trust agreement.

F. Limitation of Town liability. While the Town intends that the plan be permanent as distinguished from a temporary program, the Town shall have any liability to make contributions to the fund. Benefits provided by the plan are to be paid only from the fund to the extent assets therein permit.

G. Use of forfeitures. A credit or forfeiture arising from the operation of the plan may not be used to increase the benefit of any participant or group of participants but will instead be taken into account in determining contributions to be made by the Town.

H. Participant contributions. Immediately prior to July 1, 1989, participants were required to contribute 4 1/2% of monthly earnings. Effective July 1, 1989, participants are required to contribute 5 1/4% of monthly earnings. Participant contributions are payable through payroll deduction or as otherwise determined by the Town.

(1) Participant contributions will stop upon the earlier of:

(a) Termination of employment.

(b) Actual retirement.

(2) Changes in the rate of contribution to be made by an employee shall be determined by the Retirement Commission.

I. Credited interest. Participant contributions shall be paid by the Town to the fund and shall be accumulated therein with credited interest. Credited interest on participant contributions means interest for the number of full months from the July 1 following the date such contributions were made to the date to which it is being computed. Credited interest will be at the rate of 3% per annum prior to March 1, 1979. On and after March 1, 1979, credited interest will be at the rate of 5% per annum.

§ 102-14 Administration.

[Amended 4-25-1991 by Ord. No. 91-01; 12-16-1993 by Ord. No. 93-02]

A. The pension plan of the Town as herein set forth shall be administered by the Retirement Commission consisting of the First Selectmen, the Town Treasurer, a member of the Board of Finance designated by the Chairperson of the Board of Finance for his or her term of office, and three citizens at large appointed as herein after provided. Not more than two of the said three citizens at large so appointed shall be of the same political party. Each appointed citizen shall be appointed for a three-year term. At the end of the term the Board of Selectmen shall appoint a successor. The Board of Selectmen shall appoint successors for the appointed citizens as may be necessary to fill vacancies resulting from death or resignation.

(1) Effective July 1, 1989, the police union shall designate one of its members to serve on the Retirement Commission, also for a three-year term. The police union shall appoint successors as necessary for this position.

(2) Each of the above seven individuals will be voting members of the Retirement Commission, with one vote for each member.

(3) The Board of Selectmen shall also appoint one "ad hoc" member to the Retirement Commission. The "ad hoc" member will not maintain a voting privilege.

(4) Effective July 1, 1989, the Retirement Commission agrees to permit three additional nonvoting representatives, one designated by SEIU, one by NAGE, and one by the Board of Education, to attend Retirement Commission meetings. The representative designated by the Board of Education must be a noncertified employee participating in the pension plan.

(5) The members of the Retirement Commission shall serve without compensation. The Retirement Commission shall employ such actuarial, medical, clerical, and other services as are needed for the proper operation of the pension plan.

B. The Retirement Commission shall submit annually, to the Board of Finance of the Town, or to the budget-making body, if the Town abolishes the Board of Finance, a schedule of its estimated expenses necessary for the administration of this plan, and all such expenses of administration shall be paid by the Town.

C. The Retirement Commission shall deposit Town retirement funds with a qualified public depository or insurance company qualified to do business in the State of Connecticut, and the public depository or insurance company so selected shall manage said funds. All funds appropriated by the Town or contributed by the employees of the Town pursuant to this plan shall be paid over to the trustee which shall have the right and power to invest and reinvest the same in securities legal for investment of trust funds under the General Statutes, including common trust funds. The trustee shall make payments from the trust fund from time to time on the written directions of the Retirement Commission pursuant to this plan. The Retirement Commission shall enter into a written agreement with said trustee specifically outlining the duties of the trustee which shall be in all respects in accordance with and consistent with this plan. The Retirement Commission shall not be liable for any negligence, misfeasance or malfeasance on the part of such trustee in managing said fund but shall be liable only in the event that the Board has been negligent in the selection and appointment of such trustee. Such trustee shall be paid reasonable compensation for its services rendered for managing, investing and reinvesting the fund.

D. The Retirement Commission shall act by a majority of its voting members at the time in office, and such action may be taken either by a vote at a meeting or in writing without a meeting.

E. The Retirement Commission may authorize any one or more of its members to execute any document or documents on behalf of the Retirement Commission, in which event the Retirement Commission shall notify the trustee in writing of such action and the name or names of its member or members so designated. The trustee thereafter shall accept and rely upon any document executed by such member or members as representing action by the Retirement Commission until the Retirement Commission shall file with the trustee a written revocation of such designation.

F. The Retirement Commission may adopt such bylaws and regulations as it deems desirable for the conduct of its affairs, and shall adopt mortality tables and the interest rate to be used as the basis for all actuarial calculations. The Retirement Commission may appoint such actuaries, accountants, counsel, specialists, and other persons as it deems necessary or desirable in connection with the administration of this plan. The Retirement Commission shall be entitled to rely conclusively upon, and shall be fully protected in any action taken by it in good faith in relying upon, any opinions or reports which shall be furnished to it by any such actuary, accountant, counsel or other specialist.

§ 102-15 Amendment and termination of plan.

A. Amendment of plan. The Town shall have the right at any time, and from time to time, to amend, in whole or in part, any or all of the provisions of this plan. However, no such amendment shall authorize or permit any part of the trust fund (other than such part as is required to pay taxes and administration expenses) to be used for or diverted to purposes other than the exclusive benefit of the participants and their beneficiaries, and no such amendment which affects the rights, duties or responsibilities of the trustee may be made without the trustee's written consent. Any such amendment shall become effective upon delivery of a written instrument, executed by order of the Retirement Commission, to the trustee and the endorsement of the trustee of its receipt or of its written consent thereto, if such consent is required.

B. Termination of plan.

(1) The Town shall have the right at any time to terminate this plan upon resolution of the Town duly enacted at a Town Meeting warned and held for that purpose.

(2) The plan shall terminate if the Town fails to make the contributions required hereunder for more than two successive years measured by anniversary dates.

C. Allocation of contributions. Upon written notice from the Town or upon automatic termination of the plan, the trustee shall deduct its reasonable compensation and estimated expenses in administering the trust fund. Then it shall allocate the assets in the trust fund for the purposes set forth below and in the order set forth below, to the extent the assets are sufficient. These allocations may be implemented by the continuance of the trust, despite termination of the plan, or by the purchase and distribution by the trustee of insurance company annuity contracts, or by a combination of these methods. If the allocations produce a benefit of less than $240 a year for any participant or contingent beneficiary, the trustee may pay a lump sum of equivalent actuarial value in lieu of such benefit. The purposes for which the trustee shall make allocations referred to above are as follows:

(1) To provide the benefits of the plan for retired participants and their contingent beneficiaries, if any. The allocation for this purpose shall be based on immediate life annuity values without death benefits, as determined by the actuary of the plan. Any reduction in benefits due to insufficient trust assets shall be determined by the actuary in a uniform manner on the basis of similar annuity values.

(2) If any trust assets remain after complete allocation for the purposes of Subsection C(1) above, to provide the benefits of the plan for participants who have reached their normal retirement dates when the plan is terminated but have not started to receive benefits, and their contingent beneficiaries, if any. The allocation for this purpose shall be based on immediate life annuity values without death benefits, as provided in Subsection C(1) above, and any reductions in benefits due to insufficient trust assets shall be made as provided in Subsection C(1) above.

(3) If any trust assets remain after complete allocation for the purposes of Subsection C(1) and (2) above, to provide the benefits of the plan for participants who are eligible to retire under the early retirement provisions of the plan when the plan is terminated but who have not started to receive benefits, and their contingent beneficiaries, if any. The allocation for this purpose shall be based on immediate life annuity values without death benefits, as provided in Subsection C(1) above, and any reductions in benefits due to insufficient trust assets shall be made as provided in Subsection C(1) above.

(4) If any trust assets remain after complete allocation for the purposes of Subsection C(1) through (3) above, to provide the benefits of the plan for participants who are employees when the plan is terminated and who have acquired vested rights. The allocation for this purpose shall be based on deferred life annuity values without death benefits, as determined by the actuary of the plan. Any reductions in benefits due to insufficient trust assets shall be determined by the actuary in a uniform manner on the basis of similar annuity values.

(5) If any trust assets remain after complete allocation for the purposes of Subsection C(1) through (4) above, to provide the benefits of the plan for participants who are separated from the Town's service before the plan is terminated but after they have acquired vested rights, and for whom the payment of benefits has been deferred until their normal retirement dates. The allocation for this purpose shall be based on deferred life annuity values without death benefits, as provided in Subsection C(4) above, and any reduction in benefits due to insufficient trust funds shall be made as provided in Subsection C(4) above.

(6) If any trust assets remain after complete allocation for the purposes of Subsection C(1) through (5) above, to provide the benefits for all other participants who are employees at the time of termination of the plan and who do not have vested rights but do have pension interests because of their respective credits for past and future service at the time of such termination. The allocation for this purpose shall not exceed the value of their interests, on a basis proportionate to the actuarial value of such interests.

D. Residual assets. If any balance of assets in the trust fund remains after the trustee has made all of the allocations described in Subsection C(1) through (6) above, and after all liabilities with respect to participants and retired participants and their contingent beneficiaries, if any, are satisfied, then the trustee shall return such balance to the Town and the trust shall terminate.

E. Obligations after termination. Upon making such distribution, the trustee shall be discharged from all obligations under the trust and no participant shall have any further right or claim therein.

§ 102-16 Miscellaneous.

[Amended 4-25-1991 by Ord. No. 91-01]

A. Annual report. The Retirement Commission shall file with the Board of Selectmen an annual report showing the financial condition of the retirement system as of the end of the last completed fiscal year, including an actuarial valuation of assets and liabilities, and setting forth such other facts, recommendations and data as may be of value to the participants of the plan and the Town.

B. The Commission may, if it shall determine the same to be for the best interests of any participant, direct the payment of any amount due to any participant hereunder to the conservator of such participant or to adult spouse or blood relative of the participant for the benefit of such participant.

C. Neither the establishment of this plan or any modification thereof nor the creation of any trust or fund or account nor the payment of any proceeds shall be construed as giving to any employee, participant or other person any legal or equitable right against the Town or any officer or employee thereof or the trustee or any officer or employee thereof except as herein provided.

D. This plan is intended to meet the requirements for qualification under Section 401(a) of the Federal Internal Revenue Code. Any modification or amendment to the plan may be made by the Town, retroactively if necessary, to establish and maintain such qualification.

E. Liability.

(1) It is expressly understood and agreed by each employee who becomes a participant hereunder that, except for its or their willful neglect or fraud, neither the Town nor the trustee shall in any way be subject to any suit or litigation or to any legal liability, for any cause or reason or thing whatsoever, in connection with this trust or its operation, and each such employee hereby releases the Town and all its officers and agents from any and all liability or obligation.

(2) In any action or proceeding involving the trust fund, or any property constituting part or all thereof, or the administration thereof, the Town, the Retirement Commission, and the trustee shall be the only necessary parties and no employees or former employees of the Town or their beneficiaries or any other person having or claiming to have an interest in the trust fund or under the plan shall be entitled to any notice of process.

(3) Any final judgment which is not appealed or appealable that may be entered in any such action or proceeding shall be binding and conclusive on the parties hereto, the Retirement Commission, and all persons having or claiming to have any interest in the trust fund or under the plan.