§ 2-533. Amendment; termination of the plan.

(a)

Power to amend:

(1)

The city commission shall have the right, at any time, to amend any or all of the provisions of the employees pension plan; provided, however, that it is impossible for any part of the corpus or income of the trust fund to be used for, or diverted to, purposes other than the exclusive benefit of the plan participants and their beneficiaries.

(2)

Any plan amendment which changes any benefit accrual rate or vesting schedule under the plan shall not reduce the nonforfeitable amount of any participant's accrued benefit determined as of the later of the date the amendment is adopted or becomes effective.

(b)

Termination of plan.

(1)

The board of trustees expects to continue this plan indefinitely, but reserves the right to terminate the plan and its city contributions thereunder at any time. In the event of the termination or partial termination of the plan, or complete discontinuance of contributions under the plan, the rights, if any, of all members to benefits accrued to the date of such termination, partial termination, or discontinuance, to the extent funded as of such date, shall be nonforfeitable.

(2)

Upon receipt of written notice of termination of the plan, the board shall arrange for the trust fund to be apportioned and distributed after preparing a list of members, showing for each, as of the date of plan termination, the following:

a.

For each member and beneficiary receiving payment of benefits, the amount and terms of the benefits.

b.

For each terminated member entitled to a deferred benefit, the amount, commencement date, and terms of payment of the benefit.

c.

For each active member, the amount of his/her accrued benefit.

(3)

In the event of termination of the plan, the board shall allocate the assets of the trust fund (available to provide benefits) among the members and their beneficiaries under the plan in the following order:

a.

Priority Class (A): The portion of members' accrued benefits which is derived from member contributions (if any).

b.

Priority Class (B): In the case of benefits payable as an annuity, equally among members and beneficiaries whose benefits were in pay status.

c.

Priority Class (C): Equally, among active members who are eligible for normal retirement, but who have not yet retired.

d.

Priority Class (D): Equally, between all other vested accrued benefits of both active and terminated members.

e.

Priority Class (E): All other nonvested accrued benefits under the plan.

(4)

If the allocated assets are insufficient to provide in full benefits in each priority class the remaining portion of the trust fund shall be distributed to provide in full the benefits in each priority class. If the assets are insufficient to provide the benefits in full for any class, such assets are to be allocated in full to provide a uniform percentage of benefits to the members of that priority class. Any residual assets of the plan may be distributed to the city after all liabilities of the plan to members and their beneficiaries have been satisfied.

(Code 1960, § 20-40.13; Ord. No. 110370, § 1, 11-17-11)