(a)     This article establishing the system and fund, and subsequent ordinances pertaining to said system and fund, may be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the member or beneficiary shall not be affected thereby, except to the extent that the assets of the fund may be determined to be inadequate.

(b)     If this article shall be repealed, or if contributions to the system are discontinued or if there is a transfer, merger or consolidation of government units, services or functions as provided in F.S. Ch. 121, the board shall continue to administer the system in accordance with the provisions of this article, for the sole benefit of the then members, any beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this article who are designated by any of said members. In the event of repeal, discontinuance of contributions, or transfer, merger or consolidation of government units, services or functions, there shall be full vesting (one hundred (100) per cent) of benefits accrued to date of repeal and the assets of the system shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in accordance with the provisions thereof, with prior preference being directed towards the return of accumulated contributions.

(c)     The following shall be the order of priority for purposes of allocating the assets of the system as of the date of repeal of this article, or if contributions to the system are discontinued with the date of such discontinuation being determined by the board.

(1)     Retirees already retired under the early or normal retirement provisions of the system and those members eligible for such retirement, active or deceased, but not actually retired, and their beneficiaries, in proportion to and to the extent of the then actuarially determined present value of the benefits payable less amounts received. If any funds remain, then

(2)     Retirees retired under the disability provisions of this system and their beneficiaries, in the same manner as in subsection (1) above. If any funds remain, then

(3)     Other members with accumulated contributions and other vested benefits, and their beneficiaries, in the same manner as in subsection (1) above. If any funds remain, then

(4)     All other members and their beneficiaries in the same manner as subsection (1) but based upon credited service and average final compensation as of the date of termination of the system.

The allocation of the fund provided for in this subsection may, as decided by the board, be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this subsection. The fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the board may direct. The fund may be continued in existence for purposes of subsequent distributions.

If, at any time during the first ten (10) years after the effective date of the article originally establishing this system, the system shall be terminated or the full current costs of the system shall not have been met, anything in the system to the contrary notwithstanding, city contributions which may be used for the benefit of any one of the twenty-five (25) highest paid members on such effective date, whose anticipated annual retirement allowance provided by the city's contributions at member's normal retirement date would exceed one thousand five hundred dollars ($1,500.00), shall not exceed the greater of either a) twenty thousand dollars ($20,000.00), or b), an amount computed by multiplying the smaller of ten thousand dollars ($10,000.00) or twenty (20) per cent of such member's average annual earnings during his last five (5) years of service by the number of years of service since the effective date. In the event that it shall hereafter be determined by statute, court decision, ruling by the commissioner of internal revenue, or otherwise, that the provisions of this paragraph are not then necessary to qualify the system under the internal revenue code, this paragraph shall be ineffective without the necessity of further amendment of this article.

(d)     After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, including a return to the state of funds as required under F.S. Ch. 175, then and only then shall any remaining funds revert to the general fund of the city.