§ 8. Repeal or termination of system.

1.

This ordinance establishing the system and fund, and subsequent ordinances pertaining to said system and fund, may be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefitting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the Member or beneficiary shall not be affected thereby, except to the extent that the assets of the fund may be determined to be inadequate.

2.

Upon termination of the plan by the Town for any reason, or because of a transfer, merger, or consolidation of governmental units, services, or functions as provided in chapter 121, or upon written notice to the board of trustees by the Town that contributions under the plan are being permanently discontinued, the rights of all employees to benefits accrued to the date of such termination or discontinuance and the amounts credited to the employees' accounts are nonforfeitable. The fund shall be distributed in accordance with the following procedures:

a.

The board of trustees shall determine the date of distribution and the asset value required to fund all the nonforfeitable benefits, after taking into account the expenses of such distribution. The board shall inform the Town if additional assets are required, in which event the Town shall continue to financially support the plan until all nonforfeitable benefits have been funded.

b.

The board of trustees shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each police officer entitled to benefits under the plan, as specified in subsection (c).

c.

The board of trustees shall distribute the asset value as of the date of termination in the manner set forth in this subsection, on the basis that the amount required to provide any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under subsection (b) involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single-sum value may not be less than the employee's accumulated contributions to the plan, with interest if provided by the plan, less the value of any plan benefits previously paid to the employee.

d.

If there is asset value remaining after the full distribution specified in subsection (c), and after payment of any expenses incurred with such distribution, such excess shall be returned to the Town, less return to the state of the state's contributions, provided that, if the excess is less than the total contributions made by the Town and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the Town and the state.

e.

The board of trustees shall distribute, in accordance with the manner of distribution determined under subsection (b), the amounts determined under subsection (c).

(Ord. No. 10-03, 9-16-2003; Ord. No. 06-10, 5-18-2010)