(1) Any employer that has not elected to affiliate with the fire and police pension association relating to an old hire plan established pursuant to this article may offer to the active old hire members of such plan the option of converting to a money purchase plan.
Such option shall be available on an individual basis such that any member desiringto remain in the current defined benefit plan may do so.
The money purchase plan offered may be a new plan established by the employer oran existing plan maintained for the benefit of other members employed in the same department.
Any such money purchase plan shall be exempt from all provisions of parts 3 to 7 ofthis article.
The option may be offered only if approved by at least sixty-five percent of all activeold hire members. If approved, a deadline shall be set for electing between the current plan and the money purchase plan. Prior to said deadline, the employer shall provide to each active old hire member a disclosure statement describing the differences between the current plan and the money purchase plan and a statement as to the minimum beginning account balance for such employee in the event of conversion to a money purchase plan.
If any active old hire member elects to remain in the current plan, the employer shallcontinue to fund such plan on an actuarially sound basis with any unfunded liability being amortized over a period not to exceed twenty years after January 1, 1989.
Within ninety days after the election is made by each active old hire member, theemployer shall make the final determination as to whether to adopt such option and shall be under no obligation to do so. In the event that the employer determines that the option will not be adopted at that time, the employer may reoffer the option at a later date in accordance with the provisions contained in this section.
No such option may be adopted which, in its application, would adversely affect thepension benefits of retired old hire members.
Nothing in this section shall be construed to prohibit an election by an employer toaffiliate its local plan with the fire and police pension association after said employer has adopted a money purchase plan option pursuant to this section. Any such affiliation shall be governed by the provisions of section 31-31-701.
Source: L. 96: Entire article added with relocations, p. 890, § 1, effective May 23.
Editor's note: This section was formerly numbered as § 31-30-1003.3.