Sec. 102-295. Termination and amendment.
(a) Termination of plan. The plan sponsor expects to continue the plan indefinitely, but the continuance of the plan and the payment of contributions are not assumed as contractual obligations. The plan sponsor may terminate the plan at any time by action of the city council. Upon termination or partial termination of the plan or the complete discontinuance of contributions to the plan, the accrued benefits of all affected participants in the trust fund shall become fully vested to the extent then funded and shall be distributed among them and their beneficiaries as provided in subsection (b).
(b) Distribution on termination.
(1) The assets of the plan available to provide benefits shall be allocated in the manner described in section 4044 of the Employee Retirement Income Security Act of 1974, as amended. The benefits to be provided by such allocations shall be fully vested and nonforfeitable as of the date of such termination of the plan for distribution to the persons entitled thereto, and distribution may be accomplished through the continuance of the trust fund, or the creation of a new trust fund for that purpose, or by purchase of nontransferable annuity contracts, or by a combination thereof. If any assets remain after such distribution, they shall revert to the City, except to the extent prohibited by the Code.
(2) The order of priorities set forth in this section if the plan is terminated shall be subject to the limitations of subsection (h) of section 102-290 and such distributions not being determined by the Secretary of Treasury to produce discrimination prohibited by the code. If either the limitations under subsection (h) of section 102-290 become effective or the Secretary of the Treasury rules that the distributions are otherwise discriminatory, adjustments shall be made in the priorities and amounts of distributions as may be necessary to satisfy the requirements of subsection (h) of section 102-290 or the Secretary of Treasury.
(3) Provided that no discrimination in value results, the plan administrator may direct that any or all of the benefits to be provided by such allocations may be computed on an actuarial basis and distributed as an actuarially equivalent immediate cash payment.
(c) Amendment by the plan sponsor. The plan sponsor expects this plan to continue indefinitely; however, as future conditions cannot be foreseen, the plan sponsor reserves the right to amend or terminate the plan at any time, without prior notice to anyone, except as may be required by the Code. Each amendment or termination shall be effective on such date as the plan sponsor shall determine. No amendment or modification which affects the rights, powers, privileges, immunities or obligations of the trustee may be made without the consent of the trustee. Amendments may modify the rights and interests of participants in the plan at the time thereof as well as future participants, but an amendment may not diminish the vested accrued benefit of any participant as of the effective date of such amendment except as may be permitted by the Code or divert any funds in the trust to purposes other than for the exclusive benefit of participants and their beneficiaries. (Ord. No. 2001-70, § 11, 11-19-2001)