N.Y. Comp. Codes R. & Regs. tit. 2 § 152.15

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

Section 152.15 - Conversion to defined benefit plan

(a) A defined contribution plan service award program adopted in accordance with article l1-AA of the General Municipal Law may be converted into a defined benefit plan service award program in accordance with sections 219-i and 219-l of the General Municipal Law and these rules and regulations.

(b) In addition to the requirements of section 2l9-l of the General Municipal Law, the resolution authorizing conversion of a service award program shall include: a statement that the purpose of the resolution is to authorize the conversion of a defined contribution plan service award program into a defined benefit plan service award program;

(c) In addition to the requirements of section 219-l of the General Municipal Law, the proposition authorizing the conversion of a service award program shall identify the program and include a statement that the purpose of the proposition is to authorize conversion of a defined contribution plan service award program into a defined benefit plan service award program.

(d) No person who applied for a distribution of a service award under a defined contribution plan service award program before the effective date of the conversion of the program into a defined benefit plan service award program shall be eligible for a distribution under the defined benefit plan service award program. Any distribution to such person shall be made in accordance with the provisions of the defined contribution plan service award program.

(e) All the assets within the defined contribution plan service award program trust fund on the effective date as of which a defined contribution plan service award program is converted to a defined benefit plan service award program shall be transferred to the defined benefit plan service award program trust fund and shall become the initial assets of the replacement defined benefit plan service award program. Any prior service contributions owed to the defined contribution plan service award program trust fund under the provisions of the defined contribution plan service award program by the sponsor shall no longer be payable, shall not be considered as an asset of the defined benefit plan program and shall not be considered as an asset in any calculations by the program actuary of the cost or costs of the defined benefit plan service award program. Except for those persons who applied for a distribution of a defined contribution plan service award before the effective date of the conversion to a defined benefit plan, no person shall have any right to payment of a defined contribution plan service award, or any claim whatsoever to the assets held within the defined contribution plan service award program trust fund.

N.Y. Comp. Codes R. & Regs. Tit. 2 § 152.15