§ 5 §18408 — Payment of benefits when a district disbands or dissolves

If the membership of the employees of a participating local district ceases under section 18255, the funds that have been established under the Participating Local District Retirement Program for that district must be used to provide benefits for members or beneficiaries at the date of the cessation of membership.
1.
Allocation.
The amount of the funds that have been established under the Participating Local District Retirement Program for the district at the date of the cessation of membership must be allocated by the board in an equitable manner to provide benefits for the members or beneficiaries:
2.
Manner of payment.
The allocation of the funds under subsection 1, as decided by the board, may be carried out through the continuance of the benefit payments or the funds may be distributed in one lump sum to the persons entitled to the benefits under subsection 1.
3.
Right to benefits.
A member may not be deprived of the member's right to any benefits under this section solely because the member later terminates employment with the participating local district before the member's service retirement date.

Legislative History

PL 1985, c. 801, §§5,7 (NEW). PL 2007, c. 491, §§237, 238 (AMD). RR 2023, c. 2, Pt. B, §142 (COR).