§ 3.85.035. Appointment of a successor trustee; disposition of residual assets.


Latest version.
  • A.

    When the total number of living participants in the system shall be less than 50, the board shall have the authority to provide for the appointment of a successor trustee to fulfill the duties of the six member representatives.

    B.

    The successor trustee may be comprised of natural or corporate persons who shall exercise all powers and duties of the board, including the final plan termination of an individual plan or the total system and disposition of its residual assets in accordance with the provisions of this chapter.

    C.

    The successor trustee shall be elected by the remaining participants in the same manner as the election and appointment of member trustees. In the event that the remaining participants elect a corporate trustee, the corporate trustee shall perform the duties and exercise the votes of the member trustees. The municipal representatives shall continue to serve, unless the mayor appoints the corporate trustee to act on behalf of the municipality, as well.

    D.

    Upon the recommendation of the actuary, and with the consent of the majority of the members of any plan with less than 50 living participants, the residual assets of that plan, including the actuarial value of unpaid defined benefits, may be annuitized with a third party administrator or distributed on a per capita basis. Any such distribution shall constitute a full and complete satisfaction of any constitutional or contractual rights of the participants and shall terminate that particular plan as a part of the system.

    E.

    The provisions of this section may be altered by ordinance upon the recommendation of the board of trustees, as deemed necessary in the best interest of the system, its members and participants.

(AO No. 2000-65, § 3, 4-18-00)