Common use of 225 – Distribution of Assets if System is Terminated Clause in Contracts

225 – Distribution of Assets if System is Terminated. (1) The Employer hopes and expects to continue the System indefinitely but necessarily reserves the right to amend, modify, suspend, or terminate the System in a manner compatible with any applicable collective bargaining agreement. No such action shall operate to recapture for the Employer any contributions previously made under the System prior to the satisfaction of all liabilities for System benefits to members, nor, except to the extent necessary to meet the requirements of any other governmental Authority, to affect adversely the benefits of retirants and beneficiaries or the trust fund or insured fund then securing such benefits. (2) If the System is terminated, the amount of the trust fund and/or insured fund then held by the System shall be allocated, subject to provisions for expenses of administration or liquidation, in the following manner for the exclusive benefit of the then retired and non- retired members (and their beneficiaries) having an interest in this System. Such assets shall be allocated to such persons in the following order of precedence: (a) To provide for the payment to each non-retired member of an amount equal to his/her accumulated contributions; (b) If any assets remain after complete allocations for the purposes of (a) above, to provide for the continuance of allowances to retirants and beneficiaries, if any; (c) If any assets remain after complete allocations for the purposes of (a) and (b) above, they shall be allocated toward the potential rights of non-retired members on an equitable and nondiscriminatory basis according to accepted actuarial principles; and (d) If any assets remain after satisfaction of all liabilities provided for in (a), (b), and (c) above, any excess shall be delivered over and paid to the Employer according to determinations made by the actuary. The above allocations to System participants shall be distributed by the System in annuities or in such other manner as may be determined by the Board. Payment of all other assets shall be made as determined by the City Commission.

225 – Distribution of Assets if System is Terminated. (1) The Employer employer hopes and expects to continue the System indefinitely but necessarily reserves the right to amend, modify, suspend, or terminate the System in a manner compatible with any applicable collective bargaining agreement. No such action shall operate to recapture for the Employer employer any contributions previously made under the System prior to the satisfaction of all liabilities for System benefits to members, nor, except to the extent necessary to meet the requirements of any other governmental Authority, to affect adversely the benefits of retirants and beneficiaries or the trust fund or insured fund then securing such benefits. (2) If the System is terminated, the amount of the trust fund and/or insured fund then held by the System shall be allocated, subject to provisions for expenses of administration or liquidation, in the following manner for the exclusive benefit of the then retired and non- retired members (and their beneficiaries) having an interest in this System. Such assets shall be allocated to such persons in the following order of precedence: (a) To provide for the payment to each non-retired member of an amount equal to his/her accumulated contributions; (b) If any assets remain after complete allocations for the purposes of (a) above, to provide for the continuance of allowances to retirants and beneficiaries, if any; (c) If any assets remain after complete allocations for the purposes of (a) and (b) above, they shall be allocated toward the potential rights of non-retired members on an equitable and nondiscriminatory basis according to accepted actuarial principles; and (d) If any assets remain after satisfaction of all liabilities provided for in (a), (b), and (c) above, any excess shall be delivered over and paid to the Employer employer according to determinations made by the actuary. The above allocations to System participants shall be distributed by the System in annuities or in such other manner as may be determined by the Board. Payment of all other assets shall be made as determined by the City Commission.