[HISTORY: Adopted by the Board of Supervisors of the Township
of Towamencin 12-11-1995 by Ord. No. 95-12. Amendments noted where
applicable.]
The Board of Supervisors of Towamencin Township is hereby authorized
to execute the Delaware Valley Workers' Compensation Trust Agreement
for the participation of Towamencin Township in the Delaware Valley
Workers' Compensation Trust, which Agreement is attached hereto
as Exhibit A and is on file for inspection and review at the Towamencin
Township Municipal Building, 1675 Sumneytown Pike, Kulpsville, Pennsylvania.
This Agreement may be amended after the enactment of this chapter
to conform to any requirements imposed by the Commonwealth of Pennsylvania
and any of its agencies, including the Department of Labor and Industry
Bureau of Workers' Compensation.
The participation of Towamencin Township in the Delaware Valley
Workers' Compensation Trust is authorized for the purpose of
enabling Towamencin Township to reduce the cost of workers' compensation
claims through the creation of a group self-insurance fund.
Towamencin Township delegates to the Delaware Valley Workers'
Compensation Trust the authority to pay workers' compensation
benefits on its behalf in accordance with the Pennsylvania Workers'
Compensation Act and the Pennsylvania Occupational Disease Act.[1]
[1]
Editor's Note: See 77 P.S. § 1 et seq. and
77 P.S. § 1201 et seq., respectively.
The Commonwealth of Pennsylvania Department of Labor and Industry
Bureau of Workers' Compensation has approved the issuance of
a permit to the Delaware Valley Workers' Compensation Trust to
operate as a group self-insurance fund subject to certain conditions.
As an approved self-insurance fund, the Delaware Valley Workers'
Compensation Trust will be responsible for the payment of workers'
compensation claims on behalf of all the Trust participants.
As set forth in the Delaware Valley Workers' Compensation
Trust Agreement, the following conditions, among others, apply to
the participation of Towamencin Township in the Delaware Valley Workers'
Compensation Trust:
A.Â
The Trust shall consist of at least five homogeneous municipal participants
organized as local government agencies under Pennsylvania law.
B.Â
Each participant satisfies all eligibility and admission requirements
for membership in the Trust.
C.Â
Each participant pledges and agrees to appropriate funds to pay all
its annual contributions and assessments which are required for the
creation of a fund maintained at a level sufficient to pay all workers'
compensation claims and related expenses incurred by the Trust participants.
D.Â
Each participant agrees to jointly and severally assume and discharge
the workers' compensation liabilities of each and every other
participant in accordance with the Delaware Valley Workers' Compensation
Trust Agreement when required to do so by the Pennsylvania Department
of Labor and Industry Bureau of Workers' Compensation.
E.Â
Each participant will institute any and all loss prevention measures
of risk management procedures as may be required for the purpose of
minimizing or eliminating work place risks to its employees.
F.Â
Each participant cooperates fully with the Trust's service and
fiscal agents, attorneys, claims adjusters and any other agents or
employees of the Trust with respect to the investigation, defense
and settlement of the claims.
G.Â
Each participant designates a person to be responsible for all contacts
with the Trust.
H.Â
Each participant provides any information to the Administrator or
Board of Trustees as may be required to effect the purposes and objectives
of the Trust.
Towamencin Township agrees to participate in the Trust for a
minimum period of two years subject to the terms and conditions of
the Delaware Valley Workers' Compensation Trust Agreement. After
the expiration of that minimum two-year period, each participant may
withdraw under the following conditions, subject to the right of arbitration
as provided in the Delaware Valley Workers' Compensation Agreement:
A.Â
An opinion is rendered by the Trust certified actuary that withdrawal
will not result in the number of participants falling below the minimum
required to assure the fiscal and actuarial soundness of the Trust
itself.
B.Â
The withdrawing participant is not then in default of its obligation
to pay premiums, contributions or assessments.
C.Â
The withdrawing participant shall pay the full amount of a termination
contribution or any additional assessments as determined by the Board
of Trustees in accordance with the Delaware Valley Workers' Compensation
Trust Agreement and Bylaws.
D.Â
The Board of Trustees shall have received a certification from the
Trust actuary that the withdrawal of the participant will not impair
the actuarial soundness of the Trust and, if any municipal debt has
been incurred by the participants to finance any portion of the Trust
reserves, an opinion is obtained from bond counsel that such withdrawal
will not adversely affect the tax-exempt status of any interest paid
and any debt incurred by the participants or any legal entity created
for the purpose of incurring such debt. As used herein, the term "debt"
shall include any municipal bonds, certificates, letters of credit
or other instruments of municipal indebtedness.
Participation of Towamencin Township in the Delaware Valley
Workers' Compensation Trust will be effective upon final approval
of the Trust permit application by the Pennsylvania Department of
Labor and Industry Bureau of Workers' Compensation or upon any
other date determined by the Department.
All contributions and assessments paid by Towamencin Township
shall be made with funds appropriated by the Board of Supervisors
of Towamencin Township for that purpose.
The organizational structure of the Trust shall consist of a
Board of Trustees, an Administrator, claims administration/loss control
consultant(s) and various service agents appointed by the Board of
Trustees in accordance with the Delaware Valley Workers' Compensation
Trust Agreement and any bylaws adopted pursuant thereto.
As set forth in the Delaware Valley Workers' Compensation
Trust Agreement, the funds required for the creation and operation
of the Trust shall be provided by the participating municipalities
through annual appropriations.
The Delaware Valley Workers' Compensation Trust is empowered
to enter into contracts for policies of group insurance and employee
benefits, including social security, for any of its employees.
As a condition of participating in the Delaware Valley Workers'
Compensation Trust, Towamencin Township agrees to:
A.Â
Pay all annual contributions or assessments as may be required by
the Board of Trustees.
B.Â
Appoint a representative to sit on the Board of Trustees and designate
a contact person for the purpose of communicating with the Trust or
its representatives.
C.Â
Not withdraw from the Trust for a period of two years following its
admission to the Trust, subject to the terms and conditions of the
Delaware Valley Workers' Compensation Trust Agreement.
D.Â
Withdraw from the Trust only upon satisfaction of the conditions
set forth in the Delaware Valley Workers' Compensation Trust
Agreement.
E.Â
Perform all covenants contained in the Delaware Valley Workers'
Compensation Trust Agreement and delegate to the Board of Trustees
the powers and authorities enumerated in that Agreement.
F.Â
Comply with all the conditions set forth in the Delaware Valley Workers'
Compensation Trust Agreement governing the handling and payment of
claims, including the defense and settlement thereof.
G.Â
Appropriate the funds needed to pay all its contributions and assessments
as may be required by the Board of Trustees in accordance with the
Delaware Valley Workers' Compensation Trust Agreement.
H.Â
Cooperate with the Trust, its agents or employees and provide the
Trust with all information it needs for the operation of the Trust,
including any underwriting or claims data which may be requested by
the Board of Trustees or their designee.