Reversion of Funds to City Prohibited, Exceptions.
Ann Arbor City Code § 1:629
in effect1:629. - Reversion of Funds to City Prohibited, Exceptions.
All assets of the Retirement System shall be held and invested in accordance with the terms of the Traditional Retirement Plan and the Dual Retirement Plan for the sole purpose of meeting the obligations of the Retirement System, including to pay the reasonable expenses of administration of the Retirement System and shall be used for no other purpose. No part of the corpus or income held in trust under the provisions of this chapter shall be used for, or diverted to, purposes other than for the exclusive benefit of the Members, Retirants and Beneficiaries of the Retirement System prior to satisfaction of all Retirement System obligations, except that:
(a) If the City determines that any contribution, or any portion thereof, was made by a good faith mistake of fact, then the Board of Trustees shall upon written request of the City return the contribution, or such portion thereof, to the City within 1 year after such determination; however, any earnings attributable to the amounts to be returned shall not be returned to the City, while losses attributable to such amounts shall reduce the amount to be returned; and
(b) If, after termination or partial termination of the Retirement System, by formal action of the City or for any other reason, the accrued benefits of all Members, Retirants and other Retirement System Beneficiaries and all other Retirement System liabilities have been paid, then, any residual assets of the Retirement System shall revert to the City.
(c) The Board of Trustees and its employees are prohibited from having a beneficial interest, direct or indirect, in an investment of the Retirement System; borrowing from the Retirement System; and receiving any pay or emolument (except the occasional gifts or other considerations, the value of which shall not exceed $50.00 on any 1 occasion, nor exceed $100.00 in value in the aggregate during any 1 Plan Year) from any individual or organization providing services to the Retirement System.
(Ord. No. 16-28, § 1, 1-3-17)
Source: City of Ann Arbor, Michigan, Code (Municode Library, library.municode.com)URL: https://library.municode.com/mi/ann_arbor/codes/code_of_ordinances?nodeId=TITIAD_CH18EMRESY_1_629REFUPREXFetched: 11/8/2026