(1)If the governing body of a municipality, by
resolution, finds that no person named in this article is, and no such person can
become, eligible for payment of a benefit from the municipality's police officers' old
hire pension fund established pursuant to section 31-30.5-201 (2), it may authorize
use of the money in the fund to make contributions to the defined benefit system
trust fund pursuant to part 3 of article 31.5 of this title 31, to make contributions to
a police benefit fund established pursuant to section 31-31-601 (1)(b), as said
section existed prior to its repeal, or to make contributions under the federal social
security laws if the municipality's police officers are covered by the social security
laws. To the extent that money in the fund exceeds three times the
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(1) If the governing body of a municipality, by
resolution, finds that no person named in this article is, and no such person can
become, eligible for payment of a benefit from the municipality's police officers' old
hire pension fund established pursuant to section 31-30.5-201 (2), it may authorize
use of the money in the fund to make contributions to the defined benefit system
trust fund pursuant to part 3 of article 31.5 of this title 31, to make contributions to
a police benefit fund established pursuant to section 31-31-601 (1)(b), as said
section existed prior to its repeal, or to make contributions under the federal social
security laws if the municipality's police officers are covered by the social security
laws. To the extent that money in the fund exceeds three times the present yearly
employer contribution to any of the preceding benefit funds on behalf of the
municipality's current police officers, such excess may be used for any law-enforcement-related purpose. If the municipality does not employ any police
officer, the governing body may authorize use of the money in the fund for any law-enforcement-related purpose. In addition, any money in the fund that is attributable
to contributions by the municipality and to interest on such contributions may be
used for any police-related purpose and, if no such police-related need exists, then
for any purpose as decided by the governing body of the municipality. For the
purposes of this subsection (1), contracting with the county or county sheriff for law
enforcement service shall not be considered employment of a police officer.
(2) If the governing body of a municipality, fire protection district, or county
improvement district, by resolution, finds that no person named in this article is, and
no such person can become, eligible for payment of a benefit from the employer's
firefighters' old hire pension fund, it may authorize use of the money in the fund to
make contributions to the defined benefit system trust fund pursuant to part 3 of
article 31.5 of this title 31 or to make contributions under the federal social security
laws if the employer's firefighters are covered by the social security laws. In
addition, any money in the fund that is attributable to contributions by the
municipality or district and to interest on such contributions may be used for any
fire-related purpose and, if no such fire-related need exists, for any purpose as
decided by the governing body of the municipality or district.
(3) (a) At least sixty days before adoption of a resolution permitted by
subsection (1) or (2) of this section, the governing body of the municipality or district
shall publish one notice in a newspaper having general circulation within the
municipality or district and shall provide a copy of such published notice to the
board of directors of the state fire and police pension association established
pursuant to section 31-31-201 (1). The notice shall state the intent of the governing
body to use the money in the fund for the purposes permitted in this section. The
notice shall state that persons who believe they are or may be entitled to benefit
payments from the fund shall have fifty days from the date of the notice in which to
file an objection, in writing, with the governing body regarding its proposed use of
the fund. If any such written objection is received, the governing body shall hold a
public hearing before adoption of any resolution under this section with prior
published notice of the time and place of the hearing as well as written notice of
such hearing mailed, by certified mail, to each person filing a written objection.
(b) If, within one year after adoption of a resolution pursuant to this section,
any person establishes a claim to a benefit from the fund, the municipality or
district shall repay to the fund any money expended from such fund pursuant to
this section, and no such additional expenditures shall be made from the fund.
(4) (a) (I) Notwithstanding the provisions of subsections (1) and (2) of this
section and subject to the provisions of paragraph (c) of this subsection (4), if no
members are active participants in an employer's old hire pension plan established
under this article, the governing body of the employer, by resolution, may authorize
the use of the excess balance in the plan fund for the purposes permitted in
subsections (1) and (2) of this section. If a governing body authorizes the use of the
excess balance under this subsection (4), the employer shall maintain the plan fund
at a level equal to at least two times the amount necessary to fund the benefit
liabilities of any persons continuing to receive benefits from the plan fund.
(II) For purposes of this paragraph (a), excess balance means the amount in
an old hire plan fund in excess of two times the amount necessary to fund the
benefit liabilities of persons continuing to receive benefits from the plan fund, as
determined by the plan's actuary. In determining the excess balance in an old hire
plan fund, the actuary shall utilize the assumptions approved by the board of
directors of the fire and police pension association pursuant to section 31-30.5-306
(2)(b).
(b) Notwithstanding the provisions of subsections (1) and (2) of this section
and paragraph (a) of this subsection (4) and subject to the provisions of paragraph
(c) of this subsection (4), if no members are active participants in an employer's old
hire pension plan established under this article and the plan provides no rank
escalation benefit to persons receiving benefits from the plan fund, the board, after
disclosure to the affected retirees, is authorized to use the assets in the plan fund
for the purpose of purchasing annuities in amounts sufficient to pay any required
benefits, including nondiscretionary cost-of-living adjustments required under the
plan, to those persons who continue to receive benefits from the plan fund. If the
board purchases annuities for such persons, the governing body of the employer, by
resolution, may authorize the use of any additional funds that remain in the plan
fund after purchasing such annuities for the purposes permitted in subsections (1)
and (2) of this section. Annuities may be purchased pursuant to this paragraph (b)
only from insurance companies rated at least A+ by the A.M. Best company or rated
at least AA by Standard & Poors Corporation. If there is a default on the payment of
benefits resulting from an annuity purchased under this paragraph (b), the
employer remains liable to make any required benefit payments to persons for
whom the annuities were purchased.
(c) Moneys in the plan fund in excess of the amount required to purchase
annuities as provided in paragraph (b) of this subsection (4), if any, may be used to
purchase additional benefits or may be treated as an excess balance as provided in
paragraph (a) of this subsection (4).