§ 6665. Withdrawal of an employer.

302 words·~1 min read·/de/title-16/6665

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A participating employer may withdraw from the Fund by providing a resolution from its governing body to the Board. The withdrawing employer shall be ineligible to rejoin the Fund at a future date. The withdrawing employer shall be required to make a withdrawal liability payment as provided under subsection

(c)of this section.

(b)All vested members of the employer shall be eligible for benefits accrued with the Fund up to the withdrawal date. All nonvested members will be eligible for a withdrawal benefit as provided under § 6660 of this title.

(c)The employer will remain liable to the Fund for the employer’s share of any unfunded actuarial liability of the Fund which is attributable to the members of the employer who have either retired or will retire from the Fund. The employer’s liability shall be calculated on the basis of the actuarial assumptions used in the Fund’s most recent actuarial valuation. The calculation will be based on the Fund’s present value of accrued benefits less the market value of assets multiplied by the fraction of the total amount required to be contributed to the Fund by the employer over the past 5 years divided by the total amount required to be contributed to the Fund by all participating employers during the past 5 years. The employer’s liability shall be paid in accordance with a schedule determined by the Board over a period not to exceed 2 years. Any payment schedule shall use an interest rate equal to the rate of investment return used in the actuarial valuation adopted by the Board prior to the withdrawal date.

(d)Should a volunteer fire company take formal action to disband their auxiliary organization the withdrawal liability payment pursuant to subsection

(c)of this section shall be paid by the volunteer fire company.