Section 100-B:10 Defined Contribution Plan.
I. All plan assets shall be held in trust for the exclusive purpose of providing contribution repayments to members and their beneficiaries or for the purpose of defraying the reasonable expenses of the operation and administration of the plan. If the service awards program and the related trust fund are not tax qualified within the meaning of the Internal Revenue Code of 1986, as amended, the trust fund referred to in this paragraph may provide that the assets held under the fund may be subject to the claims of general creditors, if any, of the sponsor or may contain such other terms and provisions as are necessary to insure that the participation by an active member in the service awards program does not result in taxable income to such volunteer firefighter under any provision of the United States Internal Revenue Code of 1986, as amended. The contribution requirements for a service awards program that is a nonqualified deferred compensation plan or other pension plan shall be the amount actuarially determined. The contributions shall be made by the sponsors and the members on an annual basis. The sponsor shall contribute a minimum of $300 for each member in the plan. Each member in the plan shall contribute a minimum of $60. The maximum number of years for which a participating active member may make a contribution shall be 40 years.
II. The contribution repayment payable to a participating active member entitled to a contribution repayment under the program shall be the resulting amount from a defined annual contribution made by the sponsor. The administrative costs shall be met by a .3 percent surcharge on the contribution.
III. A member's retirement income plan shall provide that, in the event of the death of an active member who has a right to a nonforfeitable percentage of retirement income, the designated beneficiaries of such active member, or the estate if no beneficiary is so designated, shall be entitled to receive benefits payable under the service award plan. Such benefits shall be equal to the amount of contributions earned by the member under the plan at the date of death.
Source. 1996, 211:1. 1998, 371:5, eff. June 26, 1998.