The plan does not provide for automatic cost-of-living increases in retirement benefits being paid to members or beneficiaries.
A. 
A member entitled to monthly retirement benefits under the plan may elect to have benefits paid under an optional form of payment which differs from the normal form of payment (which is a life annuity for the member's lifetime only with no survivor benefits). In such case, the benefit payable under the optional form will be the actuarial equivalent of the benefit payable under the normal form.
B. 
Optional forms available.
(1) 
Fifty-percent spouse annuity. Upon the retired member's death, 50% of the monthly benefit the member had been receiving will be continued to the member's spouse for life.
(2) 
One-hundred-percent spouse annuity. Upon the member's death, 100% of the monthly benefit the member had been receiving will be continued to the member's spouse for life.
(3) 
Life annuity with 10 years certain. A monthly annuity payable for the member's lifetime. If the member dies before receiving at least 120 monthly payments, payments will continue to the member's beneficiary until a grand total of 120 payments have been made to the member and beneficiary combined. If the member dies after having received at least 120 payments, no survivor benefits are payable.
C. 
For purposes of Subsection B(1) and (2), "spouse" means the member's spouse at the time when the optional form is elected.
Other provisions relating to the payment of benefits under the plan notwithstanding, if the actuarial equivalent lump sum value (i.e., the present value) of benefits initially due a member or beneficiary is $5,000 or less, the member or beneficiary may elect to receive such lump sum in lieu of the payments otherwise due the member or beneficiary.
The plan is subject to the minimum funding requirements of the Pennsylvania Municipal Pension Plan Funding Standard and Recovery Act (Act 205 of 1984).[1] The plan's funding requirements will be determined on the basis of regular actuarial valuations in accordance with Act 205, and the required funding will be met from the following sources:
A. 
The portion of state aid received by the Borough from the Commonwealth of Pennsylvania that is allocated to the plan.
B. 
Member contributions of up to 5% of compensation if the amount described in Subsection A is not sufficient to meet the plan's funding requirements.
C. 
Borough contributions, if the amounts described in Subsections A and B are not sufficient to meet the plan's funding requirements.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
A. 
The general administration and management of the plan and pension fund shall be vested in a Pension Committee which shall be under the direction of the Borough Council. The members of the Pension Committee shall be appointed from time to time to serve at the pleasure of the Borough Council but, unless sooner removed, shall continue to serve until their successors are duly appointed and have accepted their appointment. Upon the expiration of the term of the member on the Pension Committee and in the event of the resignation, death, inability to act or removal of any member of the Pension Committee at any time, the Borough Council by resolution shall designate and appoint a successor or successors to such member of the Pension Committee whose term has expired or who has resigned, died, become unable to act or been removed.
B. 
The Pension Committee shall elect one of its members as Chairman and shall appoint a Secretary who may be, but need not be, a member of the Pension Committee. The Pension Committee shall also from time to time appoint from its members such subcommittees or other officers as the Pension Committee shall from time to time determine. The members of the Pension Committee shall serve without compensation for their services as such members.
C. 
The Pension Committee shall have complete control of the administration of the plan and shall have all powers necessary to enable it to properly carry out its duties, including but not limited to the power to construe the provisions of the plan, to determine all questions relating to eligibility of pension members, to authorize all disbursements for benefits to members and (as set forth below) to contract with life insurance companies. The decisions of the Pension Committee on all matters within the scope of its authority shall be final.
D. 
The Pension Committee shall have the power to contract with any legal reserve life insurance company licensed to transact business in the Commonwealth of Pennsylvania, for the purpose of purchasing annuity contracts which will provide part or all of the death benefits and/or retirement benefits described in Articles III, V, VI and VII. Such contracts shall be owned by the plan, and any payments to any insurance company in consideration of such contracts shall be made by the plan. Upon the termination of a member, any cash surrender values arising from such contracts shall be deposited in the pension fund.
E. 
The Pension Committee may make such rules and regulations for the conduct of its meetings and administrative duties as it deems appropriate and may require that a member file with the Pension Committee a written application in form prescribed by the Pension Committee whereby the member agrees for himself, his heirs, executors and administrators to be bound by all of the terms and conditions of the plan.
F. 
No members of the Pension Committee shall incur any liability for any action or failure to act excepting only liability for their own gross negligence or willful misconduct. The Borough Council shall indemnify each member of the Pension Committee against any and all claims, loss, damages, expense and liability arising from any action or failure to act, except when the same is judicially determined to be due to the gross negligence or willful misconduct of such member.
G. 
The Pension Committee shall maintain an account showing the fiscal transactions of the pension fund and shall keep in convenient form such data as may be necessary for the actuarial valuations and computations under the plan. Each year, the Pension Committee shall submit to the Borough Council a report giving a brief account of the operations of the plan and pension fund during the previous year.
A. 
The pension fund shall be held in trust by a trustee or trustees to be designated from time to time by the Borough Council. The trustee shall administer the pension fund in accordance with the provisions of a trust agreement to be executed by the trustee and the Borough Council, which trust agreement may be amended from time to time by the Borough Council. The trustee shall not be liable to any member or to a beneficiary of a member or any other person for the payments of any benefits under the plan except to the extent expressly provided for in the plan.
B. 
The trustee shall make payment of benefits under the plan only to the extent, in the amounts, in the manner, at the time and to the persons as shall from time to time be set forth or designated in written authorizations or directions from the Pension Committee to the trustee.
The Borough Council shall employ an actuary to perform the required periodic actuarial valuations of the plan. Such actuary shall be an approved actuary as defined under the Pennsylvania Municipal Pension Plan Funding Standard Recovery Act (Act 205 of 1984).[1]
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
A. 
Payments made under the provisions of this plan shall not be a charge on any other fund in the Borough Treasury or any fund under the control of the Borough other than the pension fund.
B. 
Any person participating in the pension fund or who has become a beneficiary thereof and who is dissatisfied with any ruling or decision of the Pension Committee in reference to the rights of such person may, after notice and at a time fixed by the Pension Committee, personally appear before it for the purpose of stating his or her complaints.
C. 
All persons claiming pensions, all members of the plan and all officials and employees of the Borough shall furnish to the Pension Committee such information as it may require from them from time to time in furtherance of its duties.
D. 
None of the benefits provided herein shall be subject to the claims of, or to execution, attachment, garnishment or other legal process by any creditor of a member, nor of any beneficiary of such member, except to the extent required under the terms of a qualified domestic relations order as such order pertains to divorce settlements. No member, nor beneficiary of such member, shall have any right to alienate, encumber or assign any of the benefits provided herein, or any interest arising out of or created by the plan, but nothing herein contained shall be construed to prevent the member from designating or changing the designation of his beneficiary, provided that any change in designated beneficiary occurs prior to the date a member has commenced receiving benefits under the plan.
E. 
The expenses of the administration of the plan and pension fund shall be paid from the pension fund to the extent permitted by applicable law of the Commonwealth of Pennsylvania. Any administrative expenses of the plan and pension fund not permitted to be paid from the pension fund shall be paid by the Borough.
F. 
Dividends (if any) received by the pension fund from insurance companies and forfeitures resulting from a member's separation from service shall be used to reduce plan costs and shall not be applied to increase the benefits which any member would otherwise receive under the plan.
A. 
This plan may be amended by the Borough if, as amended, it continues to be for the exclusive benefit of members and continues to comply with the laws of the Commonwealth of Pennsylvania governing nonuniformed full-time employees pension plans. Amendments may not reduce accrued benefits under the plan except to the extent that the pension fund is then insufficient to provide such accrued benefits in full.
B. 
Subject to the laws of the Commonwealth of Pennsylvania governing nonuniformed full-time employees pension plans, the plan may be discontinued by the Borough, but it shall be impossible for any part of the pension fund to be used for, or diverted to, purposes other than the exclusive benefit of members, except such part as represents an actuarial surplus after provision for all accrued benefits under the plan.
C. 
Any other provisions of the plan to the contrary notwithstanding, benefits payable from the plan shall in no circumstances exceed the maximum benefit limitations of Section 415 of the United States Internal Revenue Code, nor shall compensation in excess of the maximum permitted under Section 401(a)(17) of such code be taken into account in calculating plan benefits.
D. 
A member or beneficiary may elect to have any portion of an eligible rollover distribution transferred directly to an eligible retirement plan as specified by the member or beneficiary. A distribution shall be determined to be an eligible rollover distribution and a plan shall be determined to be an eligible retirement plan in accordance with Section 401(a)(31) and other applicable sections of the United States Internal Revenue Code.