N.Y. Comp. Codes R. & Regs. tit. 2 § 155.13

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

Section 155.13 - Program termination

(a) A State-administered defined benefit volunteer firefighter service award program may be terminated by the sponsor in the manner provided by section 216 or 216-a of the General Municipal Law. The termination of a State-administered defined benefit volunteer firefighter service award program shall take effect on the December 31st next succeeding approval by voters of the proposition to terminate the State-administered defined benefit volunteer firefighter service award program.

(b) The resolution authorizing the termination of a State-administered defined benefit volunteer firefighter service award program shall:

(1) list the name of each volunteer fire company or volunteer fire department having volunteer firefighters who are participants or in the State-administered defined benefit volunteer firefighter service award program to be terminated;

(2) state the estimated one-time cost of terminating the State-administered defined benefit volunteer firefighter service award 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 State-administered defined benefit volunteer firefighter service award program shall identify the State-administered defined benefit volunteer firefighter service award program and include:

(1) a statement that the State-administered defined benefit volunteer firefighter service award program shall be terminated; and

(2) an estimate of the one-time cost of terminating the State-administered defined benefit volunteer firefighter service award program as determined by the program actuary.

(d) Upon the termination of a State-administered defined benefit volunteer firefighter service award program, all participants who have earned nonforfeitable rights to a service award or beneficiaries of such participants, including those then receiving payment of their service awards, shall be paid a single-sum equal to the actuarial present value of the unpaid balance of their earned service awards 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 State-administered defined benefit volunteer firefighter service award 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 or agreements between the Comptroller and the administrator or the program actuary or both. The total one-time cost to terminate the program shall be paid by the sponsor to the administrator within 180 days after the effective date of termination of the State-administered defined benefit volunteer firefighter service award program.

(g) In the event that the State-administered defined benefit volunteer firefighter service award 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 § 155.13