(A) Whenever any town employee shall cease to be an employee for any reason other than death or retirement, he or she shall be paid on demand the full amount of the accumulated credit of his or her individual account, together with interest at 2.5%, compounded semi-annually, accruing on the accumulated deductions. However, any employee shall, upon application in writing to the Board of Trustees within 60 days from the termination of his or her employment, be permitted to retain membership in the Retirement Fund upon the payment of regular deposits in lieu of salary deductions; provided, that the annuity payments to the members shall be in proportion to the annuities otherwise payable, as the employee’s period of actual public service is to the number of years of service that would have been required had the employee continued service until eligible for a retirement annuity, and the employees shall not be eligible to apply for or receive an annuity until the date that he or she would have otherwise been eligible had the employee continued in the public service.
(B) Direct payments in lieu of salary deductions required of an employee retaining membership after leaving the service of the town, as provided in division (A) above, shall become due without notice or demand by the Town Clerk-Treasurer on the first day of each calendar month for the preceding month, anything to the contrary contained in other provisions of this subchapter notwithstanding. If the payment is not made within 60 days from the due date, membership in the Retirement Fund shall lapse at the end of the 60-day period and all rights shall be forfeited except the right to receive back upon demand within 2 years from date of last payment the accumulated deductions and direct payments standing to the credit of his or her individual account. A period of 60 days from the date the employee leaves the service is allowed for notice to the Town Clerk-Treasurer of continuance of membership and the first payment in lieu of salary deductions must be made within the period, otherwise all rights are forfeited.
(Ord. 341, passed 3-28-1951)