§ 2-605. Amendment; termination of 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 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 such 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 the termination, partial termination, or discontinuance, to the extent funded as of that 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 distributed in accordance with the following procedure:

a.

The board shall determine the date of distribution and the asset value required to fund all the nonforfeitable benefits after taking into account the expenses of such distribution. The board shall inform the city if additional assets are required, in which event the city shall continue to financially support the plan until all nonforfeitable benefits have been funded.

b.

The board shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each member entitled to benefits under the plan as specified in section 2-605(b)(2)c.

c.

The board shall distribute the asset value as of the date of termination in the manner set forth herein, on the basis that the amount required to provide any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under section 2-605(b)(2)b. involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single-sum value may not be less than the employee's accumulated contributions to the plan, with interest if provided by the plan, less the value of any plan benefits previously paid to the employee.

d.

If there is asset value remaining after the full distribution specified in section 2-605(b)(2)c., and after the payment of any expenses incurred with such distribution, such excess shall be returned to the city, less return to the state of the state's contributions, provided that, if the excess is less than the total contributions made by the city and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the city and the state.

e.

The board shall distribute, in accordance with section 2-605(b)(2)b., the amounts determined under section 2-605(b)(2)c.

(Code 1960, § 20-110.10; Ord. No. 110452, § 1, 12-1-11; Ord. No. 130203, § 6, 9-19-13)