[1]
Editor's Note: This ordinance provided an effective date of
1-1-2009.
For the purposes of this article, the following definitions
shall apply:
Equals 2% of the member's average monthly compensation multiplied
by years of service as of the date of determination, not to exceed
25 years.
Age at nearest birthday.
The average of a member's monthly compensation over the last
60 months of employment or total months of employment, if member has
less than 60 months of service.
Any earnings reportable as W-2 wages for federal income tax
purposes, plus elective contributions, for the calendar year ending
with or within the plan year. However, compensation shall not include
elective contributions or amounts excludable from the employee's gross
income and contributed by the employer, at the employee's election
to:
Exclusions from compensation include:
Any earnings reportable as W-2 wages that are payable following
the termination of employment pursuant to a severance agreement.
Bonuses and other nonrecurring compensation.
Educational assistance payments.
Any amounts paid to an individual who waives his or her right
to participate in the Township's core health care, dental, vision
and/or prescription drug programs.
Limerick Township, Montgomery County, Commonwealth of Pennsylvania.
Limerick Township Non-Uniformed Employees Pension Plan Trust
Fund.
All municipality employees who meet the requirements set forth in § 29-15 of this article. The masculine pronoun will include the feminine.
Limerick Township of Montgomery County, Commonwealth of Pennsylvania.
Limerick Township Non-Uniformed Employees Pension Plan. The
plan's fiscal year is the calendar year.
Limerick Township, Montgomery County, Commonwealth of Pennsylvania.
Limerick Township Board of Supervisors or its designee.
The total of an employee's service, expressed as whole years
and completed months (to three decimal places) on the basis that 12
months equals one year.
This plan is to be funded and maintained by any of the following
methods, or combination of each:
A.
General fund: contributions from the general fund of Limerick Township
which may be required after appropriate approval of the Township Supervisors.
B.
Member contributions.
D.
Gifts, grants, devises or bequests. The sums which may be received
by the Township in the form of gifts, grants, devises or bequests
may, to the extent authorized by law, be contributed to such fund
so long as prior approval of the Township Supervisors is obtained.
A.
Pension Committee.
(1)
The general administration and management of the plan shall be under
the direction of a Pension Committee as appointed by the Limerick
Township Board of Supervisors. The Committee shall consist of two
duly appointed Township representatives and one Non-Uniformed Pension
Plan member.
(2)
The Pension Committee shall have all powers necessary to enable it
properly to carry out its duties, including, but not limited to, the
power to construe the provisions of the fund, to direct the investment
advisor, to determine all questions relating to eligibility of members
and to authorize all disbursements for benefits to members. The decisions
of the Pension Committee on all matters within the scope of its authority
shall be final, subject to approval of the Board of Supervisors.
B.
Trustee.
(1)
The fund shall be under the direction of a Trustee designated by
resolution of the Limerick Township Board of Supervisors. The Trustees
shall have full responsibility for administration of the program established
hereunder and shall hold, invest, reinvest and distribute all funds
and other property received pursuant hereto in trust for the purposes
of this article. The Trustees may receive, at any time, gifts, grants,
devises, or bequests to the pension fund of any money or property,
real, personal or mixed, to be held by them in trust for the benefit
of this fund and in accordance with the provisions hereof. The Trustees
shall be subject to such rules and regulations as may from time to
time be adopted by the governing body of this Township by ordinance
or resolution.
(2)
The Trustees shall have full power and authority by a majority action
of its members either directly or through their designated representatives
to do all acts, execute, acknowledge and deliver all instruments,
and to exercise for the sole benefit of the participants hereunder
any and all powers and discretions necessary to implement and effectuate
the purposes of this article, including for purposes of illustration,
but not limited to, any of the following:
(a)
To hold, invest and reinvest all funds received pursuant to
this article and such legal investments as may be authorized as legal
investments under the laws of the Commonwealth of Pennsylvania.
(b)
To retain any property which may at any time become an asset
of the fund, as long as said Trustees may deem it advisable; and
(c)
To make distribution of the monies in the fund, in accordance
with the terms of this article.
C.
The expense of administering this pension fund, including compensation
of any actuary, any custodian of the fund, and any other charges or
expenses related thereto, exclusive of the payment of pensions, may
be paid by the Township or by the pension fund as determined by the
governing body of the Township.
A.
Each full-time non-uniformed municipal employee (regularly working
not less than 35 hours per week during the calendar year) employed
by the employer is eligible to participate and shall be a member in
the Limerick Township Non-Uniformed Employees' Pension Plan and Fund
as of the date of hire. Notwithstanding the foregoing, former employees
of the Limerick Township Municipal Authority that were hired by the
employer on September 2, 2008, and full-time nonuniformed municipal
employees hired or rehired by the employer on or after January 1,
2009, are not eligible to participate in or be a member of the Limerick
Township Non-Uniformed Employees' Pension Plan and Fund and instead
may be eligible to participate in the Limerick Township Retirement
Savings Plan.[1]
B.
A Member shall retain membership status until he or she separates
from service. Any Member who separates from service shall cease to
be a Member.
C.
For the purpose of this section, "service" shall mean the period
of an employee's total employment by the employer. The following types
of absence shall not break continuity and the time elapsed shall be
included in computing length of service:
(1)
Temporary leaves of absence or layoff, which shall, if not otherwise
stated, expire in six months unless sooner renewed;
(2)
Absence during which regular remuneration is paid;
(3)
Absence for military service under leave granted by the employer
or when required by law, provided the absent employee returns to service
with the employer within 90 days of his or her release from active
military duty or any longer period during which his or her right to
reemployment is protected by law. For the purpose of this section,
employees in similar circumstances shall be similarly treated.
[Amended 4-5-2022 by Ord. No. 411]
A.
The benefits
from the fund shall be payable to members who have served in the Township
in a full-time capacity and who meet the following requirements, after
which the member may retire from service with the employer. Benefits
commence on the first day of the month coincident with or next following
actual retirement.
B.
"Normal retirement date" shall mean the first day of the month coincident
with or next following the attainment of the 62nd birthday.
[Amended 4-5-2022 by Ord. No. 411]
A.
The basis for determining the amount of monthly pension to members retiring under § 29-16 shall be 2% of average monthly compensation multiplied by the number of years of service up to a maximum of 25 such years multiplied by the vested percentage.
B.
The normal form of annuity under this plan is as follows:
[Amended 7-18-2023 by Ord. No. 425]
[Amended 7-18-2023 by Ord. No. 425]
A member who attained his or her 55th birthday may retire at
his or her own election. The benefit payable at early retirement shall
be the normal retirement benefit reduced by 6 2/3% for each year
(or portion thereof) up to five years and 3 1/3% for years (or
potion thereof) between five and seven years for benefits payments
commencing prior to the member's 62nd birthday.
A.
A Member shall become vested in accordance with the following schedule:
|
Completed Years of Service
|
Vested %
| |
|---|---|---|
|
Less than 2
|
0%
| |
|
2 but less than 3
|
20%
| |
|
3 but less than 4
|
40%
| |
|
4 but less than 5
|
60%
| |
|
5 but less than 6
|
80%
| |
|
6 or more
|
100%
|
B.
Upon termination of employment, a vested member shall be eligible
to receive his or her monthly vested accrued benefit payable on his
or her normal retirement date. However, if the actuarially equivalent
lump-sum value of the benefit is $5,000 or less, the benefit may be
paid as a lump sum.
C.
However, any Member who separates from service prior to his or her
normal retirement date for any reason other than death or early retirement
shall receive a complete refund of the total amount of his or her
member contributions, if any, without interest, if such refund is
greater in value than the actuarial equivalent of the accrued benefit.
A.
The preretirement death benefit is payable to spouse upon death of
a member while fully or partially vested. Benefits begin at the later
of the date of death or the date the participant would have reached
age 55. The amount of the benefit is equal to the amount that would
have been paid had the participant terminated employment on his or
her date of death and had retired with a joint and fifty-percent survivor
annuity, which is actuarially equivalent to the accrued benefit.
B.
The postretirement death benefit is determined by the form of annuity
in effect.
The plan is intended to be tax-qualified under the applicable
provisions of Section 401(a) of the Internal Revenue Code of 1986,
as amended (the "Code"), and shall be construed and applied in a manner
consistent with such intent. The plan and its trust fund are for the
exclusive benefit of plan members and their beneficiaries. Refer to
Attachment "A" for requirements of the Code.[1]
[1]
Editor's Note: Said attachment is on file in the Township
offices.
The pension payments herein provided for shall not be subject
to attachment, execution, levy, garnishment or other legal process,
and shall be payable only to the Member or his or her designated beneficiary.
No member or his or her beneficiary shall have any right to alienate,
encumber or assign any assets of the fund held by the Trustees on
his or her behalf, or any of the benefits of payments or proceeds
of any contract or agreement purchased or acquired by the Township
hereunder.
[Amended 4-5-2022 by Ord. No. 411]
This article shall become effective five days from the date
of adoption by the Board of Supervisors. All ordinances, or parts
of ordinances, inconsistent with the provision of this article are
hereby repealed as far as they are inconsistent with the article,
except for any ordinance provisions mandated by the Internal Revenue
Service.
