§70-17-102.1. Termination of retirement plan.
462 words·~2 min read·
/ok/title-70-schools/70-17-102-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)In the event a plan of the retirement system is terminated or partially terminated the right of all participants or in the event of partial termination the rights of the affected participants, whether retired or otherwise, shall become fully vested.
(2)In the event of termination of the plan, the Board of Trustees shall distribute the net assets of the fund, allowing a period of not less than six
(6)nor more than nine
(9)months for dissolution of disability claims, as follows:
(a)First, accumulated contributions shall be allocated to
each respective participant, former participant,
retired member, joint annuitant or beneficiary then
receiving payments. If these assets are insufficient
for this purpose, they shall be allocated to each such
person in the proportion which his accumulated
contributions bear to the total of all such
participants' accumulated contributions. For purposes
of this section, contribution means payment into the
system by an employer or employee for the benefit of
an individual employee.
(b)The balance of such assets, if any, remaining after
making the allocations provided in subparagraph
(a)of
this section shall be disposed of by allocating to
each person then having an interest in the fund the
excess of his retirement income under the plan less
the retirement income which is equal to the actuarial
equivalent of the amount allocated to him under
subparagraph
(a)of this section. Such allocation
shall be made with the full amount of the remaining
assets to be allocated to the persons in each group in
the following order of precedence:
(i)those retired members, joint annuitants or
beneficiaries receiving benefits,
(ii)those members eligible to retire,
(iii)those members eligible for early retirement,
(iv)former participants electing to receive a vested
benefit, and
(v)all other members.
In the event the balance of the fund remaining after all allocations have been made with respect to all retirement income in a preceding group is insufficient to allocate the full actuarial equivalent of such retirement income to all persons in the group for which it is then being applied, such balance of the fund shall be allocated to each person in such group in the proportion which the actuarial equivalent of the retirement income allocable to him pursuant to such group bears to the total actuarial equivalent of the retirement income so allocable to all persons in such group.
Provided no discrimination in value results, the Board of Trustees shall distribute the amounts so allocated in one of the following manners as the Board of Trustees in their discretion may determine:
(i)by continuing payment of benefits as they become
due, or
(ii)by paying, in cash, the amount allocated to any
such person. Added by Laws 1978, c. 238, § 2, eff. July 1, 1978.