§ 32-34. Provision to prevent discrimination in the pension plan.

(a)

If within ten (10) years after the effective date of the pension plan, the plan is terminated, contributions discontinued by the employer, or the full current costs are not met, then, anything herein to the contrary notwithstanding, the contributions of the employer hereunder which may be used for the benefit of any member in the pension plan, who on the effective date of the pension plan is among the twenty-five (25) highest paid employees, but excluding any member in the pension plan whose annual retirement benefit, estimated on the basis of his compensation for the calendar year 1962, will exceed fifteen hundred dollars ($1,500.00) shall not exceed the greater of:

(1)

Twenty thousand dollars ($20,000.00); or

(2)

The amount obtained by multiplying twenty (20) percent of the first fifty thousand dollars ($50,000.00) of the average compensation received from the employer by such member for the five (5) consecutive years preceding the occurrence of such event by the number of years between the effective date of the pension plan and the occurrence of such event.

(b)

If within ten (10) years after the effective date of the pension plan, the pension plan is terminated or the full current costs are not met, then, no member who is within the class described above shall thereafter receive benefits hereunder in excess of those provided in the foregoing paragraph.

(c)

If the provisions of this section shall become operative because of the failure of the employer to meet the full current costs of the pension plan and thereafter contributions of the employer shall be made in an amount sufficient to meet such costs, the excess of the aggregate amount of the benefits which would have been paid if such full current costs had at all times been met, over the aggregate amount of the benefits which had been paid, shall be paid in a lump sum to the members in the pension plan who would have been entitled to receive them.

(d)

These conditions shall not restrict the full payment of benefits to the contingent annuitant or beneficiary of any retired member in the pension plan who dies while the pension plan is in full effect and full current costs have been met.

(e)

For the purpose of this section, the full current costs of the pension plan shall be deemed to be met at any time if the unfunded accrued liability at that time does not exceed the initial unfunded accrued liability of the pension plan as determined by the actuary.

(f)

In the event that it shall be determined by statute, court decision, or otherwise that the provisions of this section are no longer necessary to qualify the pension plan under the Internal Revenue Code, this section shall be ineffective without amendment to the pension plan.

(Ord. No. 31, § 14-12, 12-6-2016)