§ 2-436. Amendment, termination and merger.

(a)

Amendment of the retirement system. The city will have the right to amend the retirement system at any time subject to the following provisions:

(1)

General requirements. Amendments (including a change in the actuarial basis for determining optional or early retirement benefits) must be in writing and cannot:

a.

Increase the responsibilities of the city without written consent;

b.

Deprive any member or beneficiary of retirement system benefits to which member is entitled;

c.

Decrease the amount of any member's accrued benefit except as permitted under code § 412(c)(8);

d.

Permit any part of the trust fund to be used for or diverted to purposes other than the exclusive benefit of the members or their beneficiaries except as required to pay taxes and administration expenses, or cause or permit any portion of the trust fund to revert to or become the property of the city; or

e.

Eliminate or reduce a retirement-type subsidy, or an early retirement benefit, or an optional form of benefit with respect to benefits attributable to service before the amendment.

In the case of a retirement-type subsidy, this provision will apply only to a member who satisfies the pre-amendment conditions for the subsidy either before or after the amendment. In general, a retirement-type subsidy is a subsidy that continues after retirement, but does not include a qualified disability benefit, a medical benefit, a social security supplement, or a death benefit (including life insurance).

(2)

Certain corrective amendments. To satisfy the minimum coverage requirements of code § 410(b), the nondiscriminatory amount requirement of regulation § 1.401(a)(4)—1(b)(2), or the nondiscriminatory plan amendment requirement of regulation § 1.401(a)(4)—1(b)(4), a corrective amendment may retroactively increase accrued benefits for members who benefited under the retirement system during the plan year being corrected, or may grant accrued benefits to members who did not benefit under the retirement system during the plan year being corrected. To satisfy the nondiscriminatory current availability requirement of regulation § 1.401(a)(4)—4(b) for benefits, rights or features, a corrective amendment may make a benefit, right or feature available to members to whom it was previously not available. A corrective amendment will not be effective prior to the date of adoption unless it satisfies the applicable requirements of regulation § 1.401(a)(4)—11(g)(3)(ii) through (vii), including the requirement that, in order to be effective for the preceding plan year, such amendment must be adopted by the fifteenth day of the tenth month after the close of the preceding plan year.

(b)

Termination of retirement system by city. The city at any time can terminate the retirement system and trust fund in whole or in part in accordance with, and subject to, the following provisions:

(1)

Termination of retirement system. The city can terminate the retirement system and trust fund by filing written notice of any such termination with the city. If required by law, such written notice will be provided at least sixty (60) days (or any other period as may be required by law or regulation) prior to the date of termination.

(2)

Vesting requirement. Upon complete termination of the retirement system, all members will have a one hundred (100) percent vested interest in member's unpaid accrued benefit to the date of complete termination.

(3)

Continued administration of retirement system pending distribution. Upon complete termination of the retirement system the city will continue to administer the retirement system until distribution has been made to the members (which distribution must occur within a reasonable time after the termination of the retirement system) with full settlement of all such benefits made by lump sum payments of the actuarial equivalent of benefits and/or through the purchase of a group annuity contract or individual annuity contracts to the extent of trust fund assets.

(4)

Allocation of trust fund assets to members, spouses and beneficiaries. If the retirement system is terminated, the trust fund will be allocated on the basis of the costs of benefits due covered members and noncovered members as referenced in sections 2-417 and 2-418.

(c)

Retirement system merger or consolidation. The retirement system and trust fund may not be merged or consolidated with, nor may any of its assets or liabilities be transferred to, any other plan, unless the benefits payable to each member if the retirement system was terminated immediately after such merger, consolidation or transfer would be equal to or greater than the benefits to which such member would have been entitled if this retirement system had been terminated immediately before such merger, consolidation or transfer.

(Ord. No. 671, § 1, 1-17-06)