Upon termination of the plan for any reason, or upon written notice to the Board of Trustees that contributions thereunder are being permanently discontinued, the fund shall be apportioned and distributed in accordance with the following procedures:
(A) The Board of Trustees shall determine the date of distribution and the asset value to be distributed after taking into account the expenses of such distribution.
(B) The Board of Trustees shall determine the method of distribution of the asset value, that is, whether distribution shall be by payment in cash, the maintenance of another or substituted trust fund, by the purchase of insured annuities or otherwise, for each member entitled to benefits under the plan, as specified in division (C).
(C) The Board of Trustees shall apportion the asset value as of the date of termination in the manner set forth below, on the basis that the amount required to provide any given retirement income shall mean the actuarially computed single-sum value of such retirement income; except that if the method of distribution determined under division (B) involves the purchase of an insured annuity, the amount required to provide the given retirement income shall mean the single premium payable for such annuity.
(1) Apportionment shall first be made in respect of each retired member receiving a retirement income hereunder on such date, each person receiving a retirement income on such date on account of a retired (but since deceased) member and each member who has, by such date, become eligible for normal retirement but has not yet retired, in the amount required to provide such retirement income, provided that if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value.
(2) If there be any asset value remaining after the apportionment under subdivision (1), apportionment shall next be made in respect of each member in the service of the city on such date who has completed at least ten years of continuous service and who has contributed to the municipal Police Officers' Retirement Trust Fund for at least ten years and who is not entitled to an apportionment under subdivision (1), in the amount required to provide the actuarial equivalent of the accrued normal retirement income, based on the member's continuous service and earnings to such date, and each former member then entitled to a benefit under the provisions of this subchapter, who has not, by such date, reached his normal retirement date, in the amount required to provide the actuarial equivalent of the accrued normal retirement income to which he is entitled under this subchapter, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(3) If there be any asset value after the apportionments under subdivisions (1) and (2), apportionment shall lastly be made in respect to each member in the service of the city on such date who is not entitled to an apportionment under subdivisions (1) and (2) in the amount equal to his total contributions to the plan to date of termination; provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value.
(4) In the event that there be asset value remaining after full apportionment specified in subdivisions (1) through (3), such excess shall be returned to the city, less return of state's contributions to the state, provided that, if the excess is less than the total contributions made by the city and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the city and the state.
(D) Board of Trustees shall distribute, in accordance with the manner of distribution determined under division (B), the amounts apportioned under division (C).
(Ord. O-91-82, passed 11-20-91)