§ 31.43  FUNDING.
   (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)