(a) Right to Terminate. It is the present intention of the employer to maintain the Plan indefinitely. Nevertheless, the employer reserves the right, at any time, to permanently discontinue further contributions to the Plan or to terminate the entire Plan consistent with the provisions of applicable law.
(b) Distribution Upon Termination. In the event of the termination or partial termination of the Plan, all amounts of benefits accrued by the affected participants to the date of such termination, to the extent funded on such date, shall immediately become fully vested and nonforfeitable. In the event of termination of the Plan, the employer shall direct either that the accrued benefits of participants in the Plan continue to be held in the Pension Fund in accordance with the provisions of the Plan (other than those provisions relating to forfeitures), without regard to such termination, until all funds have been distributed in accordance with such provisions, or that distribution be made to each participant, in an amount equal to his or her accrued benefit as of such date, in the form of a lump sum or such other form as may be approved by the employer.
If there are insufficient assets in the Pension Fund to provide for all vested accrued benefits as of the date of Plan termination, priority shall first be given to the distribution of any amounts attributable to participant contributions before assets are applied to the distribution of vested benefits attributable to other sources hereunder.
(c) Residual Assets. If all liabilities under the Plan to participants and others entitled to receive a benefit have been satisfied, and there remain any residual assets in the Pension Fund, the residual assets shall be returned to the employer, insofar as such return does not contravene any provision of law, and any remaining balance, in excess of employer contributions, shall be returned to the Commonwealth.
(Ord. 2138. Passed 3-15-93.)