§ 54-156. Funding of benefits through purchase of insurance contract or contracts.

In lieu of paying benefits from the trust fund to a participant or the participant's beneficiary, upon direction of the retirement committee, with specific prior authorization by the city, the trustee may purchase with funds in the trust fund, an individual retirement income or retirement annuity contract from an insurance company which, as far as possible, provides benefits equal to (or the actuarial equivalent of) those provided in the plan for such participant or beneficiary, whereupon such contract shall thereafter govern the payment of the amount of benefit, if any, represented by such contract which is payable under the plan upon the participant's normal retirement, early retirement, death or termination of service, and the liability of the trust fund and of the plan will cease and terminate with respect to such benefits that are purchased and for which the premiums are duly paid. Such individual retirement income or retirement annuity contract may be purchased by the trustee on a single-premium basis or on the basis of annual premiums payable over a period of years, as directed by the retirement committee and as agreed upon by the insurance company; and such individual retirement income or retirement annuity contract may be purchased, as directed by the retirement committee, at any time, on or after the participant's date of retirement to provide the benefits due under the plan to the participant or the participant's beneficiary, on or after the date of such purchase.

No insurance company which may issue any contract upon the application of the trustee shall be required to take or permit any action contrary to the provisions of such contract; or be bound to allow any benefit or privilege to any person interested in any contract it has issued which is not provided in such contract; or be deemed to be a party to this plan for any purpose; or be responsible for the validity of this plan; or be required to look into the terms of this plan; or question any act of the retirement committee or the trustee hereunder; or be required to see that any action of the trustee is authorized by this plan. Any such issuing company shall be fully discharged from any and all liability for any amount paid to the trustee; or in accordance with its direction; and no issuing company shall be obligated to see to the application of any monies so paid by it. Any such issuing company shall be fully protected in taking or permitting any action on the faith of any instrument executed by the trustee in its name as trustee and shall incur no liability for so doing.

(Ord. No. 2003-27, § 1, 7-15-03)