N.Y. Comp. Codes R. & Regs. tit. 2 § 152.13

Current through Register Vol. 46, No. 50, December 11, 2024

Section 152.13 - Program termination

(a) A defined benefit plan service award program may be terminated by the sponsor in the manner provided by subdivision 9 of section 2l9-l of the General Municipal Law. The termination of a service award program shall take effect on the December 31st next succeeding approval by voters of the proposition to terminate the defined benefit plan service award program.

(b) The resolution authorizing the termination of a service award program shall:

(1) list the name of each ambulance company having volunteer ambulance workers who are participants or in the program to be terminated;

(2) the estimated one-time cost of terminating the program, as determined by the program actuary; and

(3) indicate the date on which the proposition authorizing the termination shall be submitted to referendum.

(c) The proposition authorizing the termination of a service award program shall identify the program and include:

(1) a statement that the program shall be terminated; and

(2) an estimate of the one-time cost of terminating the program as determined by the program actuary.

(d) Upon the termination of a program, all participants including those then receiving payment of their service award, shall be paid a single-sum equal to the actuarial present value of the unpaid balance of their earned service award as of the date of program termination. Payment shall be made within one year of the effective date of termination.

(e) The program actuary shall determine the actuarial present value single-sum distributions to participants and beneficiaries using the same actuarial assumptions he or she used to calculate the annual program funding cost payable during the calendar year in which voters approved the proposition to terminate the program.

(f) The one-time cost to terminate the program shall be calculated by the program actuary. Such costs shall include the difference between the total cost of the single-sum distributions to participants and beneficiaries calculated by the program actuary, and the program assets. Such costs shall also include administrative costs. When the Comptroller is not the administrator, the administrative costs shall be determined in accordance with the service agreement between the Comptroller, the administrator and the program actuary. The total one-time cost to terminate the, program actuary shall be paid by the sponsor to the administrator within 180 days of the effective date of termination of the program.

(g) In the event that the program assets exceed the total single-sum distributions to participants and beneficiaries, all or a portion of the administrative costs of terminating the program may be paid, at the discretion of the sponsor, from the program assets.

(h) After payment of the one-time cost to terminate the program, the program trustee, upon notification by the administrator, shall transfer the remaining program assets to the sponsor.

(i) A participant or beneficiary may waive payment of any service award payable to him or her from a terminated program by filing a written waiver of payment with the administrator.

N.Y. Comp. Codes R. & Regs. Tit. 2 § 152.13