(A) In the event of termination of the system, or complete discontinuance of city contributions to the system, the fund held on the effective date of termination or discontinuance shall be administered for the sole benefit of the then members, active and retired and beneficiaries then receiving benefits and any future beneficiaries entitled to receive benefits who are designated by any of the members. Subject to the provisions of this subsection, the fund shall be promptly allocated by the trustees in an equitable manner to provide benefits for the persons stated herein, in accordance with the provisions of the system, in the following order of priority, and after first allocating accumulated employee contributions with interest not yet paid in the form of benefits under the system.
(1) Members already retired under the normal retirement provisions of this system and those eligible for normal retirement but not actually retired, and their beneficiaries, in proportion to and to the extent of the then actuarially determined present value of the benefits payable.
(2) If any funds remain, then members already retired or eligible for retirement under the early retirement provisions of this system and their beneficiaries in the same manner as in (1) above.
(3) If any funds remain, then all other members and their beneficiaries in the same manner as in (1) above but based upon continuous service and average monthly earnings as of the date of termination of the system, and with any benefits vested given precedence.
(B) The allocation of the fund provided for may, as decided by the Board of Pension Trustees, be carried out through the purchase of insurance company contracts to provide the benefits as determined. The fund may be distributed in one sum to the persons entitled to the benefits in the proportion of the then present value of the benefits, or the distribution may be carried out in any other equitable manner that the trustees may direct.
(C) Under no circumstances before the satisfaction of all liabilities to members and their beneficiaries shall any part of the corpus or income of the trust fund be used for, or diverted to, purposes other than for the exclusive benefit of members and their beneficiaries; and until such liabilities are satisfied, all city contributions will remain in the fund for the benefit of the members or beneficiaries in the event that the system is terminated or city contributions cease.
(D) Upon the termination of the system or upon the complete discontinuance of contributions under the system, each member will have nonforfeitable 100% vested rights to the benefits accrued to date of termination or discontinuance to the extent funded at that time.
(E) If, at any time during the first ten years after its effective date, this system shall be terminated or the full current costs of the system, consisting of the normal costs and interest on any accrued liability, shall not have been met, and until such time thereafter as the full current costs have been met, anything in the system to the contrary notwithstanding, city contributions which may be used for the benefit of any one of the 25 highest paid general employees of the city on the effective date, whose anticipated annual retirement allowance provided by the city's contributions at his normal retirement date would exceed $1,500, shall not exceed the greater of either $20,000, or an amount computed by multiplying the smaller of $10,000 or 20% of the employee's average annual earnings during his last five years of service by the number of years of service since the effective date.
(F) In the event that it shall hereafter be determined by statute, court decision, ruling by the Commissioner of Internal Revenue, or otherwise, that the provisions of this subsection are not then necessary to qualify the system under the Internal Revenue Code, this subsection shall be ineffective without the necessity of further amendment of this subchapter.
('58 Code, § 11.37) (Ord. 73-3, passed 11-8-72; Am. Ord. 75-81, passed 9-16-75)