38-814. Termination of plan
A. If the plan terminates, each member's accrued benefits to the date of
termination become one hundred per cent nonforfeitable to the extent funded. After
provision is made for all expenses of the plan, including expenses of liquidation, the
assets of the plan shall be allocated by the payment or provision for the payment of
benefits in the following order of preference:
1. To pay each elected official and nonretired former elected official an amount
equal to his accumulated contributions.
2. To continue to pay pensions to retired members or their beneficiaries.
3. To provide for potential rights of elected officials and former elected
officials on an equitable and nondiscriminatory basis according to generally accepted
actuarial principles.
4. To pay any excess to this state.
B. The allocations in subsection A may be implemented through the existing trust, a
new trust instrument for that purpose or the purchase by the board of insurance company
contracts, or by a combination of these methods. An elected official has no rights or
claims on the plan or this state beyond the capacity of the assets held by the board to
provide benefits in accordance with subsection A.
C. If the allocations produce a pension of less than twenty-five dollars per month
for any person, the board may pay a lump sum of actuarial equivalent value in lieu of the
pension.
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