Berkeley Municipal Code Art. 8 Amendment and Termination

It is the expectation and the intention of the employer to make such contributions as are provided for herein. The employer, however, in its sole and absolute discretion reserves the rights set forth in the succeeding sections of this article. (Ord. 6837-NS § 1 (part), 2005)

Except as provided in Section 4.39.803, the Council may at any time amend this plan and trust in whole or in part. No amendment shall operate retroactively in such a manner as to deprive any participant of rights, which have vested in such participant prior to the enactment of the amendment or diminish the amount thereof, unless such amendment is required in order to qualify this plan and trust under Sections 401 and 501 of the Code. No amendment shall cause or permit any part of the trust to revert to or become the property of the employer or to be used for or diverted to any purpose other than the exclusive benefit of participants, former participants or their beneficiaries. No amendment substantially increasing the obligations or the liabilities of the trustee shall be made without the trustee’s written consent. (Ord. 6837-NS § 1 (part), 2005)

The Council shall have the right to discontinue the employer’s contribution hereunder and to terminate this plan and trust. In the event of termination the employer shall have no obligation to make any contribution to the trustee for the year of termination or thereafter. (Ord. 6837-NS § 1 (part), 2005)

Any amendment or termination of the plan or trust shall be accomplished by appropriate Ordinance of the Council and a copy of such Ordinance shall be delivered to the committee and to the trustee. (Ord. 6837-NS § 1 (part), 2005)

Upon discontinuance of the employer’s contributions or termination of the plan, the trustee shall revalue the trust and, after satisfying current obligations of the plan and setting aside funds for anticipated future obligations of the trust, shall inform the committee in order that it may make the necessary adjustments to all participants’ accounts in the ratio that the balance in each such account bears to the total amount in all such accounts.

The committee in its sole discretion may elect, with respect to the account balances of participants, any method of distribution or combination thereof, including but not limited to, the transfer to a trust for the benefit of the former participants and their beneficiaries or a continuation of the trust associated with this plan to provide for benefits commencing at their normal retirement dates.

The committee shall then furnish instructions to the trustee concerning distribution of the balance of the accounts of the participants, former participants and their beneficiaries. (Ord. 6837-NS § 1 (part), 2005)