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(A) Lifetime benefit. The normal form of retirement pension whether regular, early, disability or vested pension is the lifetime benefit with a modified cash refund as set forth in §§ 31.40(F) or 31.41(E). Payments shall be made in monthly installments, commencing on the date of retirement and ceasing with the last monthly payment prior to death. In any case, upon direction of the Retirement Board, an actuarial equivalent lump-sum payment shall be made in lieu of all benefits if any retirement pension is less than $120 per annum or has a present value of $5,000 or less. Notwithstanding the foregoing, effective March 28, 2005, the member's written consent shall be required for distributions with a present value of $1,000 or more.
(B) Husband and wife benefit. At or before retirement, a member or terminated vested member may elect to convert his or her lifetime benefit to an actuarial equivalent husband and wife benefit, which will pay a reduced retirement amount during the pensioner's life, with the provision that after his or her death either 100%, 66-2/3% or 50% of his or her retirement pension will be paid to the person designated by him, by written designation and duly acknowledged by the Retirement Board. Should both husband and wife die before the member's accumulated contributions have been paid out, then §§ 31.40(F) or 31.41(E) shall apply.
(C) Ten-year certain and life benefit. At or before retirement, a member may elect to convert his or her life benefit into an actuarial equivalent ten-year certain and life benefit, which will pay a reduced retirement amount during the pensioner's life, with a guarantee of 120 payments. Should a member die prior to receiving 120 payments, the payments shall continue to his or her designated beneficiary until a combined total of 120 payments have been made. Should both the member and designated beneficiary die before the member's accumulated contributions have been paid out, then §§ 31.40(F) or 31.41(E) shall apply.
(D) Beneficiary election. A member's beneficiary must have been designated by the member by written designation received by the Retirement Board prior to the member's death. A member may change his or her beneficiary by similar written designation received by the Retirement Board prior to receipt of written notification of the member's death.
(E) Required minimum distributions.
(1) Notwithstanding any provisions in this plan to the contrary, a member's benefits shall not commence later than the member's required beginning date which is April 1 of the calendar year following the later of:
(a) The calendar year in which the member attains age 70-1/2; or
(b) The calendar year in which the member terminates employment. In any case where a lump sum death benefit is payable to a deceased member's beneficiary, such benefit shall be paid no later than 60 days following the member's date of death.
(c) Requirements of Treasury Regulations Incorporated. All distributions required under this division will be determined and made in accordance with the Treasury regulations under Section 401(a)(9) of the Internal Revenue Code.
(2) The member's entire interest in the plan must be distributed over the life of the member or the lives of the member and a designated beneficiary, over a period not extending beyond the life expectancy of the member or the life expectancy of the member and designated beneficiary.
(3) When a member dies after distribution of benefits has begun, the remaining portion of the member's interest shall be distributed at least as rapidly as under the method of distribution prior to the member's death.
(4) When a member dies before distribution of benefits has begun, the entire interest of the member shall be distributed within five years of the member's death. The five-year payment rule does not apply to any portion of the member's interest which is payable to a surviving spouse payable over the life or life expectancy of the spouse, and which begins no later than the date the member would have reached 70-1/2.
(5) The benefits payable must meet the minimum distribution incidental benefit requirements of Section 401(a)(9)(G) of the Internal Revenue Code.
(6) If there is no designated beneficiary as of September 30 of the year following the year of the member's death, the member's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death.
(7) If the member's surviving spouse is the member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this division other than division (E)(1) will apply as if the surviving spouse were the member.
(8) Form of distribution. Unless the member's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with divisions (E)(9), (E)(10) and (E)(ll). If the member's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code and the Treasury regulations. Any part of the member's interest which is in the form of an individual account described in Section 414(k) of the Internal Revenue Code will be distributed in a manner satisfying the requirements of Section 401(a)(9) of the Internal Revenue Code and the Treasury regulations that apply to individual accounts.
(9) Determination of amount to be distributed each year.
(a) General annuity requirements. If the member's interest is paid in the form of annuity distributions under the plan, payments under the annuity will satisfy the following requirements:
1. The annuity distributions will be paid in periodic payments made at intervals not longer than one year;
2. The distribution period will be over a life (or lives) or over a period certain not longer than the period described in division (E)(10) or (E)(11).
3. Once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted;
4. Payments will either be non-increasing or increase only as follows:
a. By an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index that is based on prices of all items and issued by the Bureau of Labor Statistics;
b. To the extent of the reduction in the amount of the member's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described in division (E)(10) dies or is no longer the member's beneficiary pursuant to a qualified Domestic Relations Order within the meaning of Section 414(p) of the Internal Revenue Code;
c. To provide cash refunds of employee contributions upon the member's death; or
d. To pay increased benefits that result from a plan amendment.
(b) Amount required to be distributed by required beginning date. The amount that must be distributed on or before the member's required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under divisions (E)(1) or (E)(4) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bimonthly, monthly, semi-annually, or annually. All of the member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the member's required beginning date.
(c) Additional accruals after first distribution calendar year. Any additional benefits accruing to the member in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.
(10) Requirements for annuity distributions that commence during member lifetime.
(a) Joint life annuities where the beneficiary is not the member's spouse. If the member's interest is being distributed in the form of a joint and survivor annuity for the joint lives of the member and a non-spouse beneficiary, annuity payments to be made on or after the member's required beginning date to the designated beneficiary after the member's death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the member using the table set forth in Q&A-2 of Section 1.401(a)(9)-6 of the Treasury regulations. If the form of distribution combines a joint and survivor annuity for the joint lives of the member and a non-spouse beneficiary and a period certain annuity, the requirement in the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain.
(b) Period certain annuities. Unless the member's spouse is the sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the member's lifetime may not exceed the applicable distribution period for the member under the uniform lifetime table set forth in Section 1.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the annuity starting date if the annuity starting date precedes the member is the distribution period for age 70 under the uniform lifetime table set forth in Section 1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the age of the member as of the member's birthday in the year that contains the annuity starting date if the member's spouse is the member's sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the member's applicable distribution period, as determined under this division (E)(10)(b), or the joint life and last survivor expectancy of the member and the member's spouse as determined under the joint and last survivor table set forth in Section 1.401(a)(9)-9 of the Treasury regulations, using the member's and spouse's attained ages as of the member's and spouse's birthdays in the calendar year that contains the annuity starting date.
(11) Requirements for minimum distributions where member dies before date distributions begin.
(a) Member survived by designated beneficiary. If the member dies before the date distribution of his or her interest begins and there is a designated beneficiary, the member's entire interest will be distributed, beginning no later than the time described in divisions (E)(1) or (E)(4) and except as otherwise provided in division (E)(4) over the life of the designated beneficiary or over a period certain not exceeding:
1. Unless the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary age as of the beneficiary birthday in the calendar year immediately following the calendar year of the member's death; or
2. If the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year that contains the annuity starting date.
(b) No designated beneficiary. If the member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the member's death, distribution of the member's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the member's death.
(c) Death of surviving spouse before distributions to surviving spouse begin. If the member dies before the date distribution of his or her interest begins, the member's surviving spouse is the member's sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, division (E)(ll) will apply as if the surviving spouse were the member, except that the time by which distributions must begin will be determined without regard to division (E)(1).
(12) Definitions.
(a) Designated Beneficiary. The individual who is designated as the beneficiary under § 31.39(D) and is the designated beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section 1.401 (a)(9)-1, Q&A-4, of the Treasury regulations.
(b) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the member's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the member's required beginning date. For distributions beginning after the member's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to division (E)(4).
(c) Life expectancy. Life expectancy as computed by use of the single life table in Section 1.401(a)(9)-9 of the Treasury regulations.
(F) Return to employment after commencement of benefits.
(1) A retired member who returns to employment with the town after benefits have commenced shall have his or her benefit suspended for each month he or she is in the employ of the town, unless the member meets the following conditions:
(a) The member's application for active employment is approved by the Retirement Board; or
(b) In the case of a service employee, the member is regularly scheduled to work less than 20 hours per week; or
(c) The member is a guardian employee who is rehired as a service employee or the member is a service employee who is rehired as a guardian employee.
(2) A retired member whose benefits are suspended in accordance with this division shall have his or her pension amount recalculated to recognize the additional credited service earned during his or her period of re-employment.
(Ord. 435, passed 3-12-01; Am. Ord. 458, passed 6-3-02; Am. Ord. 538, passed 7-5-06; Am. Ord. 666, passed 12-7-15)
(A) Lump sum death benefit.
(1) A lump sum death benefit of $5,000 shall be payable to the surviving spouse of a service employee member, or if there is no surviving spouse, to the surviving dependent child(ren) in equal shares, upon the death of such service employee member; provided, however that the service employee member's death:
(a) Occurs due to bodily injury arising out of the course of the service employee member's employment with the town within the meaning of the worker's compensation laws of the State of Connecticut; and
(b) Was sustained by an injury solely through external, violent or accidental means; and
(c) Occurs within one year of the date injury was sustained and such death is the direct result of such injury.
(2) The Retirement Board shall maintain sole discretion in the determination of eligibility for a lump sum death benefit. The lump sum death benefit described herein shall be in addition to all other benefits provided under this section.
(B) Pre-retirement surviving spouse pension.
(1) Effective on and after July 1, 1991, the surviving spouse of an active service employee member who has earned at least five years of credited service, and who dies prior to retirement shall receive a monthly surviving spouse pension equal to the greater of:
(a) 50% of the service employee member's accrued monthly benefit calculated as if the service employee member retired with a regular pension and died the next day; or
(b) 50% of the service employee member's compensation at the time of death and divided by 12.
(2) For periods prior to July 1, 1991, the monthly surviving spouse pension payable to the surviving spouse of a service employee member was equal to 25% of the average annual compensation of the service employee member, divided by 12 and determined in accordance with the provisions of the plan in effect at the time the service employee member died.
(3) The surviving spouse of a terminated, vested service employee member who dies prior to retirement shall not be entitled to receive a monthly surviving spouse pension but shall receive a return of the service employee member's accumulated contributions in accordance with division (F) of this section.
(4) The former spouse of an active service employee member shall not be entitled to a pre-retirement surviving spouse pension unless a Domestic Relations Order determined to be approved by the Retirement Board requires the payment of such a benefit.
(5) The pre-retirement surviving spouse pension shall be payable until the death or remarriage of the surviving spouse. In the event the surviving spouse does not notify the Retirement Board within 30 days of her remarriage, the Retirement Board shall have the right to seek a return of the benefits paid to her in error after the date of her remarriage.
(C) Post-retirement surviving spouse pension.
(1) The surviving spouse of any service employee member who retires on or after July 1, 1991 with a life annuity shall receive, until his/her death or remarriage, a monthly benefit equal to 50% of the monthly benefit that the retired service employee member was receiving at the time of death.
(2) In the event the service employee member elected a husband and wife benefit or a ten-year certain and life benefit, death benefits shall not be payable under this division (C) but shall be payable in accordance with the terms of the form of benefit elected by the member.
(D) Surviving children's pension.
(1) Upon the death of an active service employee member, a monthly benefit shall be payable to the surviving dependent child(ren) of the service employee member in an amount equal to one-twelfth (1/12) of 25% of the service employee member's average annual compensation in addition to all other benefits hereunder. Such monthly benefit shall be divided equally in the case of more than one dependent child and shall be payable until the dependent child attains age 18. In the event the benefit is divided between multiple dependent children, the monthly benefit to such dependent children shall be increased proportionately to each remaining dependent child when the payment to a child who has reached the age of 18 ceases.
(2) The Retirement Board shall direct payment of this benefit on behalf of the dependent child(ren) at its discretion, to the surviving spouse of the service employee member or to the guardian of the person of such surviving dependent child(ren) or to the person with whom such child or children reside. In no event shall the benefit be paid to a state or governmental agency with custody of the dependent child(ren) unless the benefits shall be held in trust for the child until the child reaches the age of 18.
(3) The benefit provided under this division shall terminate upon the attainment of age 18 by the last dependent child.
(E) Social security offset. The death benefits provided for in divisions (B) through (D) of this section shall be offset by a percentage of social security, if applicable, determined pursuant to § 31.37(A)(4).
(F) Modified cash refund. If a service employee member dies and the death benefits and/or pension payments payable do not exceed the service employee member's accumulated contributions, then the amount by which the accumulated contributions exceed the death benefits and/or pension payments payable shall be paid to the member's surviving spouse, surviving dependent children equally, duly designated beneficiary, or other executor or administrator of the service employee member's estate as designated by the Retirement Board.
(G) Non-duplication of benefits. If a service employee member has elected a husband and wife benefit or a ten-year certain and life benefit and has retired, the election of such benefit shall be in lieu of any post-retirement survivor amounts as described in division (C) of this section.
(H) Burial allowance. Upon the death of an active or retired service employee member, whether before or after retirement, there shall be paid a burial allowance of $5,000, to be paid to the service employee member's executors or administrators, if any, or, if none, to such person or persons as the Retirement Board may find to have paid or assumed financial responsibility for such expenses.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15)
(A) Lump sum death benefit.
(1) A lump sum death benefit of $5,000 shall be payable to the surviving spouse of a guardian employee member, or if there is no surviving spouse, to the surviving dependent child(ren) in equal shares, upon the death of such guardian employee member; provided, however that the guardian employee member's death:
(a) Occurs due to bodily injury arising out of the course of the guardian employee member's employment with the town within the meaning of the worker's compensation laws of the State of Connecticut; and
(b) Was sustained by an injury solely through external, violent or accidental means; and
(c) Occurs within one year of the date injury was sustained and such death is the direct result of such injury.
(2) The Retirement Board shall maintain sole discretion in the determination of eligibility for a lump sum death benefit. The lump sum death benefit described herein shall be in addition to all other benefits provided under this section.
(B) Pre-retirement surviving spouse pension.
(1) Effective on and after July 1, 1991, the surviving spouse of an active guardian employee member who dies prior to retirement shall receive a monthly surviving spouse pension equal to the greater of the following:
(a) Fifty percent of the guardian employee member's accrued monthly benefit calculated as if the guardian employee member retired with a regular pension and died the next day; or
(b) Fifty percent of the guardian employee member's compensation at the time of death and divided by 12.
(2) For periods prior to July 1, 1991, the monthly surviving spouse pension payable to the surviving spouse of a guardian employee member was equal to 25% of the average annual compensation of the guardian employee member, divided by 12 and determined in accordance with the provisions of the plan in effect at the time the guardian employee member died.
(3) The surviving spouse of a terminated vested guardian employee member who dies prior to retirement shall not be entitled to receive a monthly surviving spouse pension but shall receive a return of the guardian employee member's accumulated contributions in accordance with division (E) of this section.
(4) The former spouse of an active guardian employee member shall not be entitled to a pre-retirement surviving spouse pension unless a Domestic Relations Order determined to be approved by the Retirement Board requires the payment of such a benefit.
(5) The pre-retirement surviving spouse pension shall be payable until the death or remarriage of the surviving spouse. In the event the surviving spouse does not notify the Retirement Board within 30 days of her remarriage, the Retirement Board shall have the right to seek a return of the benefits paid to her in error after the date of her remarriage.
(6) Effective on and after July 1, 2022, the surviving spouse of a former Active Member who passes away after the last day of employment, but prior to the Member’s finalizing the employee’s Application For Benefits inclusive of designating the form of benefit to be provided under § 31.39 and prior to the Member receiving the first monthly pension benefit, will be entitled to a monthly benefit based on the 100% husband and wife benefit (including the actuarial adjustment for such payment) payable over the same time period as noted in item (5) above, provided that the following criteria are met:
(a) The Member was required to retire by the terms of the ordinance based on age and retired on or not more than 30 days prior to the mandatory retirement date, and
(b) The noted Annuity Starting Date is the first of the month following the last day of employment.
(C) Post-retirement surviving spouse pension.
(1) The surviving spouse of any active guardian employee member who retires on or after July 1, 1991 with a life annuity shall receive, until her death or remarriage, a monthly benefit equal to 50% of the monthly benefit that the retired guardian employee member was receiving at the time of death. The spouse of a terminated vested guardian employee member shall not be eligible for a benefit under this division (C).
(2) In the event the guardian employee member elected a husband and wife benefit or a ten-year certain and life benefit, death benefits shall not be payable under this division but shall be payable in accordance with the terms of the form of benefit elected by the guardian employee member.
(D) Surviving children's pension.
(1) Upon the death of an active guardian employee member, a monthly benefit shall be payable to the surviving dependent child(ren) of the guardian employee member in an amount equal to one-twelfth (1/12) of 25% of the guardian employee member's average annual compensation in addition to all other benefits hereunder. Such monthly benefit shall be divided equally in the case of more than one dependent child and shall be payable until the dependent child attains age 18. In the event the benefit is divided between multiple dependent children, the monthly benefit to such dependent children shall be increased proportionately to each remaining dependent child when the payment to a child who has reached the age of 18 ceases.
(2) The Retirement Board shall direct payment of this benefit on behalf of the dependent child(ren) at its discretion, to the surviving spouse of the guardian employee member or to the guardian of the person of such surviving dependent child(ren) or to the person with whom such child or children reside. In no event shall the benefit be paid to a state or governmental agency with custody of the dependent child(ren) unless the benefits shall be held in trust for the child until the child reaches the age of 18.
(3) The benefit provided under this division shall terminate upon the attainment of age 18 by the last dependent child.
(E) Modified cash refund. If a guardian employee member dies and the death benefits and/or pension payments payable do not exceed the guardian employee member's accumulated contributions, then the amount by which the accumulated contributions exceed the death benefits and/or pension payments payable shall be paid to the guardian employee member's surviving spouse, surviving dependent children equally, duly designated beneficiary, or other executor or administrator of the guardian employee member's estate as designated by the Retirement Board.
(F) Non-duplication of benefits. If a guardian employee member has elected a husband and wife benefit or a ten-year certain and life benefit and has retired, the election of such benefit shall be in lieu of any post-retirement survivor amounts as described in division (C) of this section.
(G) Burial allowance. Upon the death of an active or retired guardian employee member, whether before or after retirement, there shall be paid a burial allowance of $5,000, to be paid to the guardian employee member's executors or administrators, if any, or, if none, to such person or persons as the Retirement Board may find to have paid or assumed financial responsibility for such expenses.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15; Am. Ord. 731, passed 9-19-22)
(A) Cost of living benefit. On each May 1, subsequent to the date retirement benefits become payable to any pensioner or beneficiary, an adjustment shall be made in the yearly amount of the benefit payable to the retired member, as described in division (B) of this section.
(B) Determination of cost of living adjustment.
(1) For the purposes of determining the cost of living benefit, the following terms are defined:
(a) "ANNUITANT." Each pensioner, contingent annuitant or beneficiary who is receiving retirement benefits under this plan.
(b) "BASE INDEX."
1. Shall mean the Consumer Price Index for the month of January in the calendar year in which the pensioner or beneficiary's benefit first became payable.
2. If the Bureau of Labor Statistics subsequently adjusts the basis upon which the Consumer Price Index is determined, then the base index will be adjusted, as of the next January, by multiplying the base index by the ratio of that Consumer Price Index for said January on the new basis bears to the Consumer Price Index for the said January on the prior January.
(c) "BASE PENSION." The monthly pension benefit which first became payable to the pensioner or Beneficiary, whichever is applicable.
(d) "CONSUMER PRICE INDEX." The Consumer Price Index (U.S. All Items Index) published by the U.S. Department of Labor, Bureau of Labor Statistics.
(2) On each May 1, the cost of living benefit shall be determined. The adjustment with respect to each pensioner or beneficiary shall be equal to the excess of (a) over (b) below, if any, where:
(a) Is equal to the amount obtained by dividing the Consumer Price Index, as of the immediately preceding January, by the pensioner's base index. This quotient shall be multiplied by the pensioner's base pension. In no event may the amount determined in this division be greater than 3% of the last amount determined in accordance with this division (B)(2)(a); and
(b) Is equal to the annuitant's base pension.
(3) Such cost of living benefit will be applicable to such annuitant only if division (B)(2)(a) above exceeds division (B)(2)(b). Any excesses over 3% described in division (B)(2)(a) will be carried over to succeeding years, to be utilized in the event that the maximum rate is not achieved in succeeding years.
(4) On the May 1 on which a cost of living benefit is first applicable to an annuitant and on the first day of each month thereafter on which such individual continues to receive retirement benefits under this plan, he/she will be eligible for a cost of living benefit in an amount equal to one-twelfth (1/12) of the yearly cost of living benefit most recently determined for him, if applicable, in accordance with this division (B).
(5) Notwithstanding divisions (B)(2) and (B)(3) above, the cost of living benefit applied as of each May 1 in certain years prior to 2014, up to and including May 1, 2013 inclusive was 3% (the “3% Presumption”) regardless of whether the formula in division (B)(2) would have yielded a lower percentage cost of living benefit. This division (B)(5), effective as of the date of enactment and retroactively as necessary, confirms and ratifies all pension payments made to Members or their Beneficiaries prior to September 1, 2020, to the extent such payments were higher than would otherwise have been the case because of the application of the 3% Presumption. This division (B)(5) shall have no effect on pension payments made on or after September 1, 2020, which shall be calculated and paid under the regular provisions of the Plan without regard to the 3% Presumption.
(C) Adjustment for former retired members. A member who retired prior to July 1, 1986 shall be entitled to an increase in his/her retirement benefit as effective July 1, 1986, of 1% of his/her retirement benefit for each full year from his/her annuity starting date to the effective date of this provision.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15; Am. Ord. 732, passed 11-9-22)
(A) Member contributions.
(1) As a condition of employment, a member shall make member contributions to the plan in accordance with the provisions of the plan or such other previous or subsequent agreement that sets forth the requirement of member contributions to the plan.
(2) A member shall be 100% vested in his/her member contributions at all times.
(B) Contributions by the town. It is the intention of the town to continue the plan and to make regular contributions thereto each year.
(1) The contributions of the town shall consist of the following:
(a) A normal contribution each year equal to the percentage of the compensation of all members computed to be required to cover the cost of benefits currently accruing under the plan not provided by member contributions and the administrative expenses of the plan.
(b) Until the cost (not covered by normal contributions) of the credits of members for service prior to the date of adoption of the plan with regular interest on any unpaid amounts of such cost has been liquidated, the contribution of the town each year shall include a prior service contribution towards the payment thereof, in such amount, as determined by the actuary, as shall be sufficient to liquidate such prior service cost (including regular interest on the unpaid portion thereof) in full within 40 years from the date of adoption of plan changes.
(c) The full amount of all accidental death benefits payable under the plan, to be paid to the trustee within 90 days after the payment of such benefit from the fund.
(2) The percentage normal contribution rate shall be computed at the time of each actuarial valuation as the percent of the compensation of all members required each year to cover the cost of all benefits to be provided by contributions of the town not covered by the sum of the funds in hand held therefor plus any prior service contributions remaining to be paid. Following each actuarial valuation, the actuary shall certify to the Retirement Board his/her recommendation as to the percentage normal contribution rate.
(3) As of the date of the effective date of the plan, the actuary shall determine the present value of all benefits to be provided by contributions of the town on account of members as of said date, and shall subtract therefrom the sum of the funds in hand as of the date of adoption held therefor and the present value of future normal contributions on account of such members at the rate required to provide the membership service benefits under the plan to be provided by contributions of the town for the average member. The difference shall be known as the "initial prior service cost."
(C) Forfeitures. No part of any forfeitures resulting from the application of any provision of this plan shall be applied to increase the benefits any member would otherwise receive under this plan. Forfeitures shall be used to reduce contributions of the town.
(D) Management of assets.
(1) Until and unless otherwise determined by the Retirement Board, all the funds of the plan shall be held by a trustee, which shall be the Retirement Board itself, for use in providing the benefits of the plan and paying the expenses of the plan.
(2) The Retirement Board, with the prior approval of the Mayor of the town, may at any time and to any extent use the funds of the plan in whole or in part to fund the retirement pensions and other benefits provided by the plan by means of one or more annuity or life insurance contracts issued by any insurer selected by the Retirement Board.
(3) No part of the corpus or income of the trust shall be used for or diverted to purposes other than for the exclusive benefit of members or their beneficiaries and contingent annuitants under the plan, prior to the satisfaction of all liabilities with respect to them; and no person shall have any interest in or right to any part of the earnings of the trust, or any rights in, or to, or under the trust or any part of the assets thereof, except as and to the extent expressly provided for in the plan and in the trust instrument. The town shall have no liability for the payment of benefits under the plan nor for the administration of the funds paid over to the trustee.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15)
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