§ 1201. Distribution of assets of retirement fund on termination of Plan.

A.

Order of Payment. Upon termination of the Plan, all benefits accrued by Participants who are contributing to the Plan on the date of termination shall become fully vested and nonforfeitable to the extent funded on the date of termination. The assets remaining in the Fund shall be applied to provide retirement income to Participants and their contingent annuitants according to rules adopted by the Board of Trustees and approved by the Legislative Body.

B.

Release of Restricted Reserves. Any reserves which shall be released as a result of the application of the provisions of Section 904 hereof shall be added to the portion of the Retirement Fund which is distributed according to rules adopted by the Board of Trustees and approved by the Legislative Body.

C.

Surplus. Any surplus remaining in the Retirement Fund, after the satisfaction of all rights or contingent rights accrued under the Plan with respect to such benefits, and after distribution of any released reserves as above provided, shall be allocated among all Participants according to rules adopted by the Board of Trustees and approved by the Legislative Body.