§ 15. Chapter 185 Share Account.

1.

Upon the insurance premium tax proceeds received by the Fund exceeding $276,923.73, one-half (½) of insurance premium tax proceeds in excess of $276,923.73 for that year shall be reserved to pay share account benefits to members of the Fund at the time of retirement.

A.

The insurance premium tax reserve will be invested with the pension fund assets.

B.

The reserve balance will be credited with the investment earnings/losses on a quarterly basis.

2.

In a year that the insurance premium tax proceeds exceed $276,923.73, members will earn credit for each year of service worked. One full credit is earned for each year in which a share account distribution is made.

3.

Upon attainment of 10 years of credited service, a member vests in entitlement to payment of the benefits upon the member's eligibility to collect retirement benefits.

A.

A member who does not attain 10 years of service is not entitled to a benefit under this section.

B.

Members who are entitled to duty disability benefits are entitled to a benefit under this section even though they do not have 10 years of service. However, the share of benefits is determined based upon the actual number of credits earned.

C.

Beneficiaries/surviving spouses of members who are entitled to duty death benefit are entitled to a benefit under this section, even though the member did not have 10 years of service. The share of benefits under this section is determined based upon the actual number of credits earned.

4.

Upon reaching retirement, a member's share of the insurance premium tax reserve will be determined by multiplying the insurance premium tax reserve balance by a fraction, the numerator of which is the member's total number of credits and the denominator is the total number of credits of all of the members of the plan.

A.

Benefits for vested terminated members are determined at the time of termination of employment and are accounted for separately until the member is eligible to begin receiving benefits under this section. These assets are credited with the investment earnings/losses on a quarterly basis, but the member is not entitled to share in any insurance premium tax receipts after termination of employment and no further service credits are earned.

5.

The member's share is payable at retirement in a lump sum of the entire balance, which can be rolled over.

6.

If an actively employed member dies and has more than 10 years of credited service, the deceased member's share is payable in a lump sum to the member's designated beneficiary. If a deceased, actively employed member fails to designate a beneficiary, or if the beneficiary predeceased the actively employed member, the entire balance shall be paid in the following priority:

A.

The deceased member's surviving child(ren), divided equally, if necessary;

B.

If no children are alive, the deceased member's surviving spouse;

C.

If no spouse is alive, the member's surviving parent(s), divided equally, if necessary; or

D.

If none are alive, the estate of the member.

(Ord. No. 08-16, § 3, 5-3-2016)

Passed on first reading, this 6th day of April, 2010.

Passed and Adopted on second reading, this 18th day of May, 2010.

_____ Mayor
Attest:
_____ Town Clerk
Approved as to form:
_____ Town Attorney