Section 100-B:12 Amendment and Termination of Plan.
I. The committee shall have the right to amend the plan at any time provided that no amendment shall:
(a) Cause or permit any portion of the fund to become the property of the sponsor until contribution repayments to members and beneficiaries are satisfied; or
(b) Deprive any member or beneficiary retroactively of rights already accrued under the plan.
II. No amendment improving the contribution repayment amounts provided by a plan shall be made before January 1, 2001.
III. The local legislative body of the municipality shall have the right by action to terminate the plan at any time, subject to the following:
(a) If the plan is terminated in its entirety, or if the sponsor's contributions are discontinued, and not merely suspended, the fund shall be used subject to the payment of expenses, for the benefit of members and beneficiaries and for no other purpose until all contribution repayments to members and beneficiaries for contributions payable under the plan to the date of termination or discontinuance of contributions have been satisfied.
(b) If the fund is insufficient to satisfy all contribution repayments in full, then the assets of the fund shall be applied in the following order:
(1) To provide to each member an amount equal to the member's contributions, with credited interest thereon, to the earliest of the member's contribution repayment date, or the date of termination, reduced by the amount of any payments made to such member, which amount shall reduce the amounts necessary to provide contribution repayments set forth in subparagraphs (2)-(4).
(2) Class 1: Retired members and other members who have attained their benefit dates.
(3) Class 2: Members who have terminated volunteer service with the sponsor, or could have terminated such service, with a right to termination benefits for themselves or their beneficiaries under RSA 100-B:4.
(4) Class 3: All remaining members.
(c) Each of the foregoing classes, with the exception of Class 1, shall be determined as of the date of termination of the plan.
IV. (a) If upon the application of the assets of the fund in the order of priority to provide payment in part of liabilities to members and beneficiaries in one of the 3 classes, there are assets available for that class but not sufficient to satisfy such liabilities in full, the assets available for that class shall be applied on the basis of the proportions which the available assets bear to the current values of the accrued benefits of all members and beneficiaries in that class.
(b) Upon the termination of the plan, the fund shall continue in existence and the assets shall be applied to the benefit of the several classes, or the fund may be distributed to each member or beneficiary of the current value of what such member or beneficiary is entitled to receive. These payments shall be made in installments over a period of 3 years.
V. After the fulfillment of all obligations to members and their beneficiaries provided for in this section, any portion of the fund remaining shall be returned to the governing body of the municipality.
Source. 1996, 211:1. 1998, 371:6, eff. June 26, 1998.