Although the Town hopes to continue the plan
and the contributions to the trust indefinitely, the Town may, by
action at a Town Meeting, terminate the plan and all further contributions
thereunder for any reason and at any time. If the Town temporarily
discontinues its contributions or suspends them in whole or in part
and if such temporary discontinuance becomes a permanent discontinuance,
such permanent discontinuance shall be deemed to constitute termination
of the plan as of the date the contributions were first discontinued.
[Amended BOS 2-1-1977]
In the event of termination of the plan, the
Board shall first allocate an amount of the trust fund to each participant,
retired participant, contingent annuitant or the beneficiary of a
deceased participant equal to the amount of the contributions to the
trust fund made by such participant, retired participant or deceased
participant, plus interest thereon compounded annually, less all amounts
received from the trust fund by such participant, retired participant,
contingent annuitant or beneficiary. Such amounts so allocated shall
be paid to the respective participant, retired participant, contingent
annuitant or beneficiary, unless a written election is made by such
person to have the amount to which he is so entitled held in trust
and added to the amount, if any, which shall be set aside for his
benefit under the terms of the following sentence. The remaining net
assets in the trust fund, after deduction of all termination expenses,
shall then be allocated by the Board in an equitable manner among
the participants, retired participants, terminated participants, contingent
annuitants and beneficiaries of deceased participants in the following
order of precedence, and such allocation shall be final:
|
Order of Precedence
|
Classification at Date of Termination
|
|---|---|
|
Class I
|
Participants who have passed their normal retirement date and whose retirement benefits have been deferred under the terms of § 54-18 hereof, retired participants, contingent annuitants and beneficiaries of deceased participants
|
|
Class II
|
Participants age 55 or more who have at least 15 years of credited service and terminated participants who have elected to leave their contributions in the trust fund, as provided in § 54-22 hereof
|
|
Class III
|
All other participants
|
Such allocation shall be accomplished through
either continuance of the trust fund or a new trust fund or purchase
of insurance or annuity contracts as the Board shall determine.
A.
The following restrictions imposed by the provisions
of this section are included solely to meet the requirements of the
Treasury Department Mimeograph No. 5717, 1944 C.B. 321. In the event
that it should be determined by federal statute or by ruling of the
Commissioner of Internal Revenue that the provisions of this section
are no longer necessary to qualify this plan under the Internal Revenue
Code, this section shall be ineffective without the necessity of further
amendment.
(1)
Anything contained in this plan to the contrary notwithstanding,
during the first 10 years after the effective date of this agreement,
the benefits provided by the Town's contributions to the trust for
the 25 highest paid employees of the Town as of the time of establishment
of the trust, including any such high-paid employees who are not participants
at such time but may later become participants but excluding any employees
whose annual benefit provided by the Town will not exceed $1,500,
will be subject to the following conditions:
(a)
If the plan is terminated or the full current
costs thereof have not been met at any time within 10 years after
its establishment, the funds or benefits which any of such 25 employees
may receive from Town contributions (including any unrestricted benefits,
as hereinafter defined, but exclusive of any supplemental retirement
income payments he has already received up to that time) shall not
exceed his unrestricted benefits at that time.
(b)
If any such employee leaves the employ of the
Town or withdraws from participation in the plan when the full current
costs have not been met, the funds or benefits which he may receive
from Town contributions (including any funds or benefits he has already
received) shall not, at any time within the first 10 years after establishment
of the plan, exceed his unrestricted benefits at that time.
B.
These conditions shall not restrict the full payment
of any death or survivor's benefits on behalf of a participant who
dies while the plan is in full effect and its full current costs have
been met.
C.
The foregoing conditions do not restrict the current
payment of full retirement income benefits called for by the plan
for a retired participant while the plan is in full effect and its
full current costs have been met.
D.
"Unrestricted benefits" mean, at any time, benefits
of the form called for by this plan, including any withdrawal values
available to a living employee and any death or survivor's benefits
payable on behalf of a participant who dies after retirement, which
have been provided by contributions of the Town not exceeding the
larger of the following amounts:
E.
"Supplemental retirement income payments" mean any
current payments to a retired participant sufficient, together with
his unrestricted benefits, to bring the total current payments to
him up to the full retirement income benefits provided under the trust.
F.
If and when the contributions by the Town are sufficient
at a later date to meet the full current costs of the plan, the excess
of the retirement income payments otherwise payable over the actual
retirement income payments made during the period that such full current
costs have not been met shall be paid in a lump sum to the retired
participant or, if such participant has died in the meantime, to the
beneficiaries of such participant.
