§ 18-420 — Termination of affiliation

Sec. 18-420. - Termination of affiliation.

(a) Application for disaffiliation. Any employer, agency of an employer, or contractual entity (collectively hereinafter referred to as "entity") which is affiliated with the plan may make an application to the board to terminate its affiliation or modify the terms and conditions of its affiliation with the plan. An entity is deemed to be affiliated with the plan if its employees actively participate in the plan. Prior to granting any disaffiliation from or modification of the relationship with the plan, the board shall obtain an actuarial report certifying that the termination of affiliation or change in relationship shall not have an adverse financial impact on the actuarial soundness of the plan. If the actuary determines, in accordance with accepted actuarial principles, that the termination of affiliation or modification of the relationship shall have an adverse financial impact on the actuarial soundness of the plan, the entity shall not be permitted to terminate affiliation or change the relationship unless it agrees by written contract with the plan to pay for the full actuarial costs associated with the disaffiliation or modification of the relationship. These costs include, but are not limited to, that portion of the accrued unfunded liability, if any, of the plan attributable to the disaffiliating entity, and the actuarial normal cost of current and future benefits of members of the plan who are employees of the entity. (b) Vested rights. The rights of retired members or their beneficiaries and the vested rights of deferred members shall not be impaired or reduced in any manner as a result of the termination of affiliation or modification of the relationship of an entity with the plan. (c) Expenses incurred. The expenses incurred by the board for the actuarial reports prepared as a result of an application under subsection (a) of this section shall be paid by the entity making such application. (d) Disclosures to applicant. The board shall provide any information contained in such actuarial reports upon request of the entity making the application for termination of affiliation or modification of the relationship of its affiliation.

(Ord. No. 854-06, § 6, 12-26-06)