In the event of discontinuance of the plan, the assets then
remaining in the plan shall be allocated by the Board, to the extent
that they shall be sufficient, for the purpose of paying retirement
benefits (the amount of which shall be computed on the basis of credited
service to the date of discontinuance of the plan) in the following
order of precedence:
A. To provide retirement benefits to employees (and/or their beneficiaries)
who shall have retired under the plan prior to its discontinuance,
without reference to the order of retirement.
B. To provide normal retirement benefits upon normal retirement to employees
who have reached their normal retirement date on the date of discontinuance
of the plan, without reference to the order in which they shall have
reached said normal retirement dates.
C. To provide deferred retirement benefits to former employees eligible
therefor, without reference to the order in which they shall reach
their normal retirement dates, provided that said employees have elected
such deferred retirement benefits.
D. To provide for the return of their own contributions with three-percent interest to all employees who have not received a distribution under Subsection
A,
B or
C above.
E. After satisfaction of the above liabilities, any remaining assets
of the plan shall be distributed pro rata, on a basis proportionate
to earnings and to total credited service at the date of discontinuance
of the plan, to employees in active employment with the Town at said
date who have not then attained the normal retirement date.
Such allocation shall be accomplished through either continuance
of the plan or a new plan or purchase of annuity contracts; provided,
however, that the Board, upon finding that it is not practicable or
desirable under the groups listed above, may provide for allocation
of a part or all of the assets of the plan as cash payments of equivalent
actuarial value to any or all of such groups; and provided, further,
however, that no change shall be effected in the order of precedence
and basis for allocation above established.
The Board shall make reasonable effort to locate any terminated
employees who have deferred retirement rights at the date of discontinuance
of the plan.
The plan may be amended or terminated by the Town Council after
giving 90 days' notice to all participants.
In the event of the termination of this plan, no part of the
corpus or income of the plan can be used for or diverted to purposes
other than the exclusive use of the beneficiaries and employees of
the plan, nor may any part of the plan revert to the Town.