§ 14 — Termination of pension plan or profit-sharing retirement plan; allocation of benefits and vesting of interests; insurance; notices

Section 14. In the absence of an acceptable method of termination of a pension plan benefits will be allocated to participants and their beneficiaries in the following order:—First, to provide for a refund to each participant of his contribution, if any, plus credited interest in excess of any benefits paid or to be paid to him or his beneficiary.Second, to provide to all retired participants and their beneficiaries the plan benefits.Third, to provide to all participants and their beneficiaries the statutory vested benefits.Fourth, to provide to participants eligible to retire on normal retirement and their beneficiaries, for the payment of their plan benefits in excess of clause Third.Fifth, to provide to all participants eligible for early retirement, and their beneficiaries, for the payment of their plan benefits in excess of clause Third above.Sixth, to provide to all participants eligible for vested benefits under the plan for the payment of their plan benefits in excess of clause Third above.Seventh, to provide to all participants under the plan for the payment of accrued benefits in excess of the above.Notwithstanding the above, upon termination of a profit-sharing retirement plan or a money purchase retirement plan, the interests of all participants in their participant accounts shall fully vest.Any assets insufficient to provide the full benefits with respect to any class will be prorated among the members of that class in proportion to their liability for their benefits.The board may require as a condition of approval of any plan that such trustee or plan administrator, employer or labor union insure that plan with a private carrier against loss of employee contributions and statutory vested benefits estimated to exist at the termination of the plan if such insurance is available.Any assessments and premiums required under this chapter shall be deducted from the administrative costs of the fund.Subsequent to termination of any plan the trustees or plan administrators shall make notification to board of termination of the plan within fifteen days. Within thirty days all employees shall be notified of their rights to any pension benefit and the procedures for claiming those benefits.