Section 27. All the assets of each system as they exist at the commencement of business on January first, nineteen hundred and forty-six, shall, as of such date and as soon thereafter as is practicable, be credited by the board to one of the five funds of the system enumerated in section twenty-two in the manner hereinafter described in this section. The board shall, subject to the approval of the actuary, transfer as of such date such amounts from one fund to another within the system as may be necessary to effectuate the purposes of this section.

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(1) Annuity Savings Fund. — (a) There shall be transferred from the previously existing annuity savings fund or annuity fund of each system, as the case may be, and credited to the annuity savings fund established for the corresponding system under the provisions of subdivision (1) of section twenty-two, an amount equal to the sum of the total accumulated regular deductions and the total accumulated additional deductions, if any, credited to the accounts of all members of the system as of the aforesaid date.

(b) Any amounts being held in the previously existing annuity savings fund of any system as of such date, remaining from sums appropriated by a governmental unit for the benefit of linemen under the provisions of paragraph (2)(g) of section twenty-nine of this chapter as in effect on December thirty-first, nineteen hundred and forty-five, shall be transferred and credited to the pension fund established for such system under the provisions of subdivision (3) of section twenty-two.

(c) Any amounts being held in the previously existing annuity savings fund or annuity fund of any system, as the case may be, as of such date, remaining from sums appropriated by a governmental unit for the benefit of veterans under the provisions of chapter seven hundred and eight of the acts of nineteen hundred and forty-one, as amended from time to time, shall be transferred and credited to the special fund for military service credit established for such system under the provisions of subdivision (4) of section twenty-two.

(d) Any amounts remaining in the previously existing annuity savings fund or annuity fund of any system, as the case may be, after the disposition of funds as provided for in paragraphs (a), (b) and (c) of this subdivision, and any surplus however described, shall be transferred and credited to the annuity reserve fund established for such system under the provisions of subdivision (2) of section twenty-two.

(2) Annuity Reserve Fund. — (a) All amounts being held in the previously existing annuity reserve fund of any system as of the aforesaid date, and all amounts specified in paragraph (1)(d) of this section belonging to such system, shall be transferred and credited to the annuity reserve fund established for such system under the provisions of subdivision (2) of section twenty-two.

(b) The board of each system shall, as of such date and as soon thereafter as is practicable, furnish to the actuary, on a form prescribed by him, a complete and accurate list of all retired members who are receiving annuity payments from the system, showing the sex, date of birth, amount of yearly annuity payment, form of annuity and interval of payment with respect to each such member, together with such other information as the actuary may request. Upon the receipt of such information, the actuary shall determine the total amount of the annuity reserve as of such date for each system and shall thereupon notify each board in writing of the amount thereof for the system over which the board has jurisdiction.

(c) If the total amount credited to the annuity reserve fund of any system as of such date as provided for in paragraph (a) of this subdivision is in excess of the total amount of the annuity reserve determined for such system under the provisions of paragraph (b) of this subdivision, the amount of such excess shall be transferred and credited to the pension fund established for such system under the provisions of subdivision (3) of section twenty-two. If the total amount so credited to the annuity reserve fund is less than the total amount of the annuity reserve so determined for such system, the deficiency shall be made up to the extent possible, by transferring from the pension fund of such system and crediting to the annuity reserve fund thereof an amount equal to such deficiency or such lesser amount, as determined by the actuary, as shall be available and not required for current pension payments.

(3) Other Funds. — (a) All amounts being held in the previously existing pension fund, pension accumulation fund or pension reserve fund of any system, as the case may be, as of the aforesaid date, and all amounts specified in paragraph (1)(b) of this section and the amount of any excess specified in the first sentence of paragraph (2)(c) of this section belonging to such system, shall be transferred and credited as soon as practicable to the pension fund established for such system under the provisions of subdivision (3) of section twenty-two. The amount of any deficiency specified in the second sentence of paragraph (2)(c) of this section, shall, to the extent available and not required for current pension payments, be transferred as soon as practicable from the pension fund to the annuity reserve fund of such system.

(b) All amounts being held as of the aforesaid date in the previously existing special fund for military service credit established in any system, and all amounts specified in paragraph (1)(c) of this section belonging to such system, shall be transferred and credited to the special fund for military service credit established for such system under the provisions of subdivision (4) of section twenty-two.

(c) All amounts being held in the previously existing expense fund of any system as of the aforesaid date, shall be transferred and credited to the expense fund established for such system under the provisions of subdivision (5) of section twenty-two.