Sec. 7-444. Withdrawal by a municipality.
Sec. 7-444. Withdrawal by a municipality. A municipality may withdraw one or
more departments from the retirement system established by this part by the procedure
provided in section 7-427 for acceptance of this part; provided such withdrawal shall
not relieve the municipality from liability arising from retirement allowances already
granted. The employees of the department or departments shall be entitled to the return
of their contributions, plus interest as provided in section 7-440, and the same shall be
paid to the municipality for that purpose. In addition, the municipality shall be entitled
to receive any balance from the sums contributed by it for such department or departments after deducting any payments already made or then due on account of administrative expenses and retirement allowances, with a sum sufficient, as determined by the
commission on sound actuarial principles, to provide for the payment of all future retirement allowances and refunds already vested by the retirement of members from the
municipality. For this purpose, such retirement allowances and future retirement allowances shall exclude an amount equal to the total contributions, plus interest as provided
in section 7-440, of members previously retired under this part. If there is a deficit in
such sum, it shall be paid in full into the fund by the municipality seeking to withdraw
and its liability in this regard shall be enforceable as provided in section 7-445.
(1949 Rev., S. 897; 1959, P.A. 315; 1967, P.A. 402; P.A. 87-85; P.A. 90-232, S. 1, 2.)
History: 1959 act allowed withdrawal of one or more departments in lieu of complete withdrawal; 1967 act excluded
from retirement allowances and future allowances payments, an amount equaling total contributions of members previously
retired when municipality or one or more of its departments withdraws; P.A. 87-85 provided that employees shall receive
interest on their returned contributions after the withdrawal of their employer from the system; P.A. 90-232 added interest
to the exclusion from returned contributions of contributions of previously retired members.