[Amended BOS 2-10-1982; BOS 2-8-1989; BOS 6-13-1990]
A. Regular contributions. Effective January 1, 1989, each participant shall contribute during each year of his credited service following his entry date, except as provided in §
54-18 of Article
V, an amount equal to 2 1/2% of his compensation, as defined in Article
II hereof. The Town shall deduct such participant's contribution hereunder from such participant's pay, and the combined contributions of the participants shall be made directly by the Town to the trustee. In addition, participants on June 30, 1982, but hired prior to June 30, 1982, may purchase the number of years of credited service which such participant would have been eligible to receive had the definition of credited service and the conditions of eligibility read as adopted February 10, 1982. Such purchase must be made in equal monthly installments within a period equal to that being purchased following the date of notification by the Town of the amount required for the purchase. Such amount shall be 2% of the compensation which such participant received during the year or years to be purchased plus an interest charge of 5% compounded from the year being purchased to the purchase date. This purchase option shall not apply to any person who has previously elected not to participate in such plan.
B. Buy-back contributions.
(1) Participants who are actively employed by the Town on June 30, 1990, are eligible to make additional contributions for purposes of receiving credited service for service, prior to their most recent date of participation, which has not otherwise been credited in accordance with §
54-3.
(2) Such eligible participants will contribute 2 1/2%
of compensation as defined below for each year of service as defined
above that they elect to buy back.
(3) Compensation will be base salary for fiscal year 1989-1990
or actual salary, if employed for a portion of such year, except for
participants who will receive buy-back time for full-time service.
For such participants, compensation will be the base salary while
holding the full-time position.
(4) The additional contributions as outlined in this subsection
must be made by participants electing to contribute such additional
contributions no later than December 31, 1990. Otherwise, no additional
credited service will be granted.
(5) Employees electing to make additional contributions
under the provisions of this subsection will be not be eligible to
receive retirement benefits under the provisions of this subsection
unless retirement benefits commence no earlier than April 1, 1991.
The Town plans and intends to contribute to
the trust fund over a period of time, in addition to the amounts contributed
by participants, such amounts as may be determined by the actuary,
according to such mortality, interest and other assumptions as may
be approved by the Board from time to time, to be required to provide
the benefits set forth in this plan for the participants.
The Town, however, reserves the right to reduce,
suspend or discontinue its contributions under the plan for any reason
at any time, provided that, anything in this plan to the contrary
notwithstanding, it shall be impossible at any time prior to the satisfaction
of all liabilities in respect to all participants, retired participants,
contingent annuitants and beneficiaries under the plan for any part
of the trust fund to revert to the Town or to be used for or diverted
to any purpose other than the exclusive benefit of participants, retired
participants, contingent annuitants and beneficiaries.