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Does Withdrawal of a Local Agency from a State Plan Considered a Termi


Guest slt

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Does anyone know if a local agency's withdrawal from a state retirement system constitutes a plan termination for defined benefit distribution purposes? In other words, if a local agency participates in a state's retirement system and then elects insttead to join a county retirement system, has the "plan" been terminated? Are the participants entitled to a distribution? Thanks!

  • 2 weeks later...
Guest Ralph Amadio
Posted

Not enough information, but here goes:

State plans will typically establish their relationship with county and local plans by statute, providing reciprocity, fund transfer, frozen benefits or some other method. If your state does not do this, then look for guidance in the State Constitution as to the guarantees of safety of public employee benefits. If you will provide your State, I can possibly assist.

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