§ 54-171. Trust fund.

(a)

Purpose of trust fund. A trust fund has been created and will be maintained for the purposes of the plan, and the monies thereof will be invested in accordance with the terms of the plan. All contributions will be paid into the trust fund, and all benefits under the plan will be paid from the trust fund.

(b)

Benefits supported only by trust fund. Any person having any claim under the plan will look solely to the assets of the trust fund for satisfaction. In no event will the city or any of its officials, employees, members of its city council or agents, be liable in their individual capacities to any person whomsoever, under the provisions of the plan.

(c)

Trust fund applicable only to payment of benefits. The trust fund will be used and applied only in accordance with the provisions of the plan, to provide the benefits thereof, and no part of the corpus or income of the trust fund will be used for, or diverted to, purposes other than for the exclusive benefit of participants and other persons thereunder entitled to benefits, except to the extent provided in sections 54-164 and 54-171(d) hereof with respect to expenses of administration and termination of the plan, respectively.

(d)

Termination of plan and distribution of trust fund. Upon termination of the plan for any reason, or upon written notice to the trustee that contributions thereunder are being permanently discontinued, the trust fund shall be apportioned and distributed in accordance with the following procedure.

(1)

The retirement committee, under the direction of the city council, shall determine the date of distribution and the asset value to be distributed, after taking into account the expenses of such distribution.

(2)

The retirement committee, under the direction of the city council, shall determine the method of distribution of the asset value - that is, whether distribution shall be by payment in cash, by transfer to individual retirement accounts established under Section 408 of the Internal Revenue Code of 1986 and amendments thereto, by the maintenance of another or substitute trust fund, by the purchase of insured annuities, or in kind based on the then market value - for each class of participants and other persons entitled to benefits under the plan, as specified in subsection (3) below.

(3)

The retirement committee, under the direction of the city council, shall apportion the asset value as of the date of termination of the plan in the manner set forth below, on the basis that the amount required to provide any given retirement income shall mean the actuarially computed single-sum value of such retirement income; except that if the method of distribution determined under subsection (2) above involves the purchase of an insured annuity, the amount required to provide the given retirement income shall mean the single-premium payable for such annuity:

a.

An amount equal to the participant contribution account less the aggregate of any retirement income payments made with respect to such participant will be determined, and such amount will be apportioned from the asset value. Such asset value, if insufficient to provide such amount in full, will be apportioned among such participants in proportion to the amounts determined with respect to them.

b.

If there be any asset value remaining after apportionment under subsection a. above, apportionment shall next be made with respect to each retired participant receiving a retirement income hereunder on such date, each person receiving a retirement income on such date on account of a deceased participant or a retired (but since deceased) participant and each participant who has, by such date, become eligible for normal retirement but has not yet retired, in the amount to provide such retirement income less any apportionment in subsection a. above; provided, however, that if the asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to the asset value.

c.

If there be any asset value remaining after the apportionment under subsections a. and b. above, apportionment shall next be made with respect to each participant in the service of the city on such date who is not entitled to an apportionment under subsection b. above but who has satisfied the requirements for early retirement in the amount required to provide the actuarial equivalent single-sum value of the participant's accrued benefit as of the date of termination of the plan, (i.e., the actuarial equivalent single-sum value of the retirement income which the participant would have been entitled to receive had the participant retired early on the date of termination of the plan) less any apportionment made under subsection a. above, and to each former participant then entitled to a benefit under the provisions of section 54-153(a) hereof who has not, by such date, reached his normal retirement date, in the amount required to provide the actuarial equivalent single-sum value of the accrued benefit to which the participant is entitled under section 54-153(a) hereof less any apportionment made in subsection a. above; provided, however, that if such remaining asset value be less than the aggregate of the amounts thus apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to the remaining asset value.

d.

If there be asset value remaining after the apportionment under subsections a., b. and c. above, apportionment shall lastly be made with respect to each participant in the service of the city on such date who is not entitled to an apportionment under subsections b. or c. above, in the amount required to provide the actuarial equivalent single-sum value of the participant's accrued benefit as of the date of termination of the plan, less any apportionment made under subsection a. above; provided, however, that if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.

e.

In the event that there be asset value remaining after the full apportionments specified in subsections a., b., c. and d. above, such excess shall be returned to the city.

(4)

The retirement committee, under the direction of the city council shall direct the trustee to distribute, in accordance with the manner of distribution determined under subsection (2) above, the amounts apportioned under subsection (3) above.

(Ord. No. 2003-27, § 1, 7-15-03)