[Ord. 2007-O-21, 12/12/2007, Art. I]
The following words and phrases as used in this Plan shall have
the meaning set forth in this Part, unless a different meaning is
otherwise clearly required by the context:
As of any given date, the benefit determined under § 104.2,
calculated on the basis of final monthly average salary as of the
date of determination and multiplied by a fraction, the numerator
of which shall be the participant's credited service determined as
of such date and the denominator of which shall be the projected credited
service of the participant as if the participant were to continue
in employment until attainment of normal retirement age. Notwithstanding
anything contained herein to the contrary, in no event shall the fraction
exceed one.
The accrued benefit shall include any service increment benefit
determined pursuant to § 104.6 attributable to the participant's
aggregate service as of the determination date. In no event, however,
shall the accrued benefit exceed the maximum limitation, determined
as of the date of computation, provided under § 104.9. All
accrued benefits are subject to all applicable limitations, reductions,
offsets, and actuarial adjustments provided pursuant to the terms
of the plan prior to the actual payment thereof.
The total amount contributed by any participant to this fund
or its predecessor by way of payroll deduction or otherwise, plus
interest credited at 5% per annum. Interest shall be credited in the
form of a compound interest rate from the first day of the plan year
during which the contributions were paid to the first day of the month
that a distribution of accumulated contributions under §§ 106.5
or 107.2 shall be paid or payment of benefits shall commence.
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the 1983 (GAM) Group Annuity Mortality Table and 7% interest
unless otherwise specifically provided herein.
The person, partnership, association or corporation which
at any given time is serving as actuary; provided, that such actuary
must be an "approved actuary" as defined in the Act.
The eligible dependent children are registered at an accredited
institution of higher leaning and are carrying a minimum course load
of seven credit hours per semester.
The person or entity designated by the participant to receive
payment of the participant's IROP benefits pursuant to § 113.8(1),
or a distribution of the participant's accumulated contributions should
the participant die prior to becoming entitled to a retirement benefit.
In the event that a participant does not designate a beneficiary or
the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse, or if there is no surviving spouse,
the issue, per stirpes, or if there is no surviving issue, the estate;
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.
The Board of Supervisors of Newtown Township, Bucks County,
Pennsylvania.
The Township Manager unless otherwise designated by the Board.
The chief administrative officer shall have the primary responsibility
for the execution of the administrative affairs for the plan.
The Internal Revenue Code of 1986, as amended.
The Pension Committee as determined pursuant to § 108.2.
The Commonwealth of Pennsylvania.
The total remuneration of the employee, whether salary or
hourly wages including overtime pay, holiday pay, longevity pay and
any other form of remuneration paid by the employer for police services
rendered. Compensation shall be limited on an annual basis for purposes
of the plan to the amount specified for government plans pursuant
to Code § 401(a)(17), as adjusted under Code § 415(d).
The total period or periods of the participant's employment,
which is defined below in the definition of "employment," with the
employer whether or not interrupted. Notwithstanding the preceding
sentence, should any such participant receive a distribution of accumulated
contributions with respect to a period of employment for which employee
contributions are required, such period of employment shall not be
included in credited service thereafter unless, at the commencement
of the next period of employment, the participant repays to the fund
the amount of such distribution with interest. For purposes of this
section, interest shall accrue as of the date the employee receives
a distribution of accumulated contributions and shall be computed
at the same rate and in the same manner as described in "accumulated
contributions." Credited service shall be calculated in whole years
and completed months.
The date when a participant is determined by the plan administrator
to be incapacitated due to total and permanent disability, or the
date when the participant's employment terminates due to such total
and permanent disability, if later.
The date on which the participant has completed 20 years
of credited service with the employer.
The first day of the month coincident with or next following
the date on which a participant who has attained early retirement
age, ceases employment and chooses to commence receipt of retirement
benefits prior to their normal retirement age.
Any individual employed by the employer on a regular, full-time
and permanent basis as a police officer of the employer's police force.
The term "employee" shall also include any leased employee
deemed to be an employee of the employer as provided in Code § 414(n).
Notwithstanding anything contained herein to the contrary, leased
employees shall not be eligible to participate in this plan. Any person
whom the Board does not regard as being an employee shall not be eligible
to participate.
Newtown Township, Bucks County, Pennsylvania.
For the purpose of determining credited service:
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer.
Any period of time not to exceed six months for which an employee
is granted an authorized leave of absence provided that the participant
shall pay participant contributions to the plan in an amount equal
to the amount which would have been paid if the participant continued
in active employment. Such an authorized leave of absence may be granted
for a period of time for which an employee is paid a fixed, periodic
amount in the nature of salary continuation payments for reasons other
than the performance of duties (such as vacation, holidays, sickness,
entitlement to benefits under workers' compensation or similar laws),
either directly by the employer or through a program to which the
employer has made contributions on behalf of the employee; or a period
during which an employee is entitled to disability benefits under
this plan, provided that the employee returns to employment within
three months of the date on which it is determined that the employee
is no longer totally and permanently disabled if such determination
occurs prior to the date a participant attains normal retirement age;
or for any other reason acceptable to the Board.
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that the
participant has been employed as a regular full-time member of the
employer's police force for a period of at least six months immediately
prior to the period of military service; and the participant returns
to employment within six months following discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer.
Any period of qualified military service as determined under
the requirements of Chapter 43 of Title 38, United States Code, provided
that the participant returns to employment following such period of
qualified military service, and the participant makes payment to the
plan in an amount equal to the participant contributions that would
otherwise have been paid to the plan during such period of qualified
military service. The amount of participant contributions shall be
based upon an estimate of the compensation that would have been paid
to the participant during such period of qualified military service
as determined by the average compensation paid to the participant
during the 12 months immediately preceding the period of qualified
military service. The amount of participant contributions calculated
must be paid into the plan before the end of the period that begins
on the date of reemployment and ends on the earlier of the date that
ends the period that has a duration of three times the period of qualified
military service or the date that is five years after the date of
reemployment.
Any period of disability for a participant who was disabled
as a result of a non-service related disability.
The average monthly salary earned by the participant and
paid by the employer during the final 36 consecutive months, immediately
preceding termination of active employment. Salary shall include the
employee's compensation to which the employee is entitled for the
rendering of services in employment but shall exclude for this purpose
any single sum or extraordinary payments made which are not directly
attributable to active employment during the averaging period including,
but not limited to, payment of a back pay damage award.
Final monthly average salary shall be calculated by taking
into account only those periods during which an employee receives
salary, as that term is defined in this section. Therefore, for example,
the final monthly average salary for a participant who receives disability
benefits from this plan or who is voluntarily or involuntarily serving
in the United States armed forces during the final 36 months of credited
service shall be based on the period during which the employee last
received salary (as defined in the preceding paragraph) from the employer.
Salary used to determine final monthly average salary shall
be limited on an annual basis for purposes of this Plan to the amount
specified for government plans in accordance with Code § 401(a)(17),
as adjusted under Code § 415(d).
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The first day of the month next following the date on which
the participant retires from employment which is subsequent to the
date on which the participant attains normal retirement age.[1]
The fixed periodic payments for the final completed calendar
year of active employment, subject to future interpretation by state
courts or state legislature, at which time this definition shall comply
with the court or legislative interpretation.
The minimum obligation of the municipality as determined
by the actuary pursuant to the provisions of the Act.
The date on which the participant has completed 25 years
of credited service with the employer and has attained age 50.
A written document prepared in the form specified by the
plan administrator and delivered as follows: If such notice or election
is to be provided by the employer or the plan administrator, it shall
be mailed in a properly addressed envelope, postage prepaid, to the
last known address of the person entitled thereto, on or before the
last day of the specified notice or election period. If such notice
or election is to be provided to the employer or the plan administrator,
it must be received by the intended recipient on or before the last
day of the specified notice or election period.
An employee who has met the eligibility requirements to participate
in the plan as provided in § 112.1 and who has not for any
reason ceased to be a participant hereunder.
The Police Pension Fund administered under the terms of this
plan and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time and
designated as the Newtown Township Police Pension Plan.
Committee or the individual appointed by the Board for the
purpose of supervising and administering the provisions of the plan.
In the event that no such appointment is made, the plan administrator
shall be the Board.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
January 1, 2007, the date upon which this amendment and restatement
of the plan becomes effective.
The first day of the month coincident with or next following
the date on which the participant retires from employment or the first
day of any month thereafter on which the payment of retirement benefits
pursuant to this plan shall commence.
The amount calculated pursuant to § 114.6 on behalf
of a participant for each completed year of credited service in excess
of 25 years, not to exceed $500.
A condition of physical or mental impairment due to which
a participant is unable to perform the usual and customary duties
of employment and is reasonably expected to continue for the remainder
of the participant's lifetime. For purposes of this section and § 105,
a condition shall not be treated as a total and permanent disability
unless such condition is a direct result of and occurs in the line
of employment therefore, a participant whose physical or mental impairment
does not occur in the line of duty is not entitled to receive disability
benefits under the plan. Moreover, total and permanent disability
shall not exist if the condition is willfully self-inflicted or is
the result of criminal activity or substance abuse.
The Treasurer of the Township, or such other person(s) as
the Board by appropriate resolution shall appoint.
[1]
Editor's Note: The former definition of "member's salary at
the time of death," which immediately followed this definition, was
repealed 8/9/2017 by Ord. 2017-O-5.
[Ord. 2007-O-21, 12/12/2007, Art. II]
1.
Eligibility Requirements. Each employee who is employed as a regular,
full-time permanent member of the police department of the employer
shall participate herein as of the date on which such employee's employment
first commences or recommences provided all prerequisites to participation
under this plan shrill have been fulfilled including, but not limited
to, completion of all forms required by the plan administrator. Each
employee who was a participant in the plan on the day prior to the
restatement date shall continue to be a participant on and after the
restatement date subject to the terms and conditions of the plan as
set forth herein.
2.
Participation Requirements. The Board shall furnish the plan administrator
with written notification of the appointment of any new full-time
permanent employee who is eligible for participation hereunder. Each
participant hereunder shall be required to make contributions to the
plan, as provided in § 103.1 hereof, and shall execute and
complete any enrollment or application forms as required by the plan
administrator.
3.
Designation of Beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the plan administrator which designates a beneficiary
at the time participation commences. The participant's election of
any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time provided the participant provides
the written notice of the changed designation to the plan administrator
in the manner prescribed by the plan administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
plan administrator shall be null and void and have no effect under
the terms of this plan.
4.
Change in Status. A participant who remains in the service of the
employer but ceases to be an employee eligible for participation hereunder,
or ceases or fails to make any contributions which are required as
a condition of participation hereunder, shall have no further benefit
accruals occur until the individual again qualifies as a participant
hereunder eligible to resume such accrual of benefits.
5.
Recordkeeping. The employer shall furnish the plan administrator
with such information as will aid the plan administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this plan.
[Ord. 2007-O-21, 12/12/2007, Art. III]
1.
Participant Contributions. Except as otherwise provide in § 103.2
below, each participant shall as a requirement of participation pay
regular contributions to the pension fund in an amount equal to 5%
of the participant's compensation, Each participant shall complete
the necessary forms to authorize the payment of participant contributions
by way of payroll deduction. Such employee contributions shall be
designated as "picked-up" employer contributions pursuant to Code
§ 414(h)2).
Any employee who has been an employee of the employer for a
period of at least six months and who thereafter enters into the military
service of the United States, shall receive employment service credit
for the purposes of this Plan if such participant returns to employment
within six months after separation from military service. Such employee
shall not be required to make contributions to this plan during such
period.
2.
Reduction of Participant Contributions. Notwithstanding the preceding
§ 103.1, payments into the pension fund by participants
may be reduced below the minimum percentage prescribed in § 103.1,
or may be eliminated. The employer may, by ordinance or resolution,
reduce or eliminate payments into the pension fund by participants.
3.
Employer Contributions. The actuary, in accordance with the Act,
shall determine the minimum municipal obligation of the employer.
The employer shall pay into the pension fund, by annual appropriations
or otherwise, the contributions necessary to satisfy the minimum municipal
obligation. Notwithstanding the foregoing, nothing contained herein
shall preclude the employer from contributing an amount in excess
of the minimum municipal obligation.
4.
State Aid. General municipal pension system state aid, or any other
amount of state aid received by the employer in accordance with the
Act from the Commonwealth may be deposited into the pension fund governed
by this plan in amounts determined by the Board, and shall be used
to reduce the amount of the minimum municipal obligation of the employer.
5.
Gifts. The Board is authorized to take by gift, grant, devise or
otherwise any money or property, real or personal, for the benefit
of the plan and cause the same to be held as a part of the pension
fund. The care, management, investment and disposal of such amounts
shall be vested in the Board or its delegate, the plan administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.
6.
Employer Reversion. At no time shall it be possible for the plan
assets to be used for, or diverted to, any purpose other than for
the exclusive benefit of the participants and their beneficiaries,
including payment of any reasonable plan expenses. Notwithstanding
the foregoing, any contributions made by the employer may be returned
to the employer if the contribution was made due to a mistake and
the contribution is returned within one year of the date on which
the discovery of the mistaken payment of the contribution was made
or reasonably should have been made or the plan is terminated, as
provided in § 110.
[Ord. 2007-O-21, 12/12/2007, Art. IV]
1.
Normal Retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after the participant has
attained normal retirement age.
2.
Normal Retirement Benefit. Each participant who shall become entitled
to a benefit pursuant to § 104.1 shall receive a benefit
paid monthly in an amount equal to 50% of the participant's final
monthly average salary as determined herein, reduced by the amount
of any pension benefit from any pension plans established by any private
association or organization for the members of the police force of
the employer, but only to the extent that the employer shall have
contributed monies raised by taxation to such plans.
3.
Early Retirement. A participant shall be entitled to an early retirement
benefit after retirement on or after attainment of early retirement
age.
4.
Early Retirement Benefit. Each participant who shall become entitled
to a benefit pursuant to § 104.4 and who shall make written
application to commence such early retirement benefit shall be entitled
to receive an early retirement benefit paid monthly effective as of
the date the application is filed with the Board or the date designated
on the application, whichever is later. The early retirement benefit
shall be in an amount equal to the actuarial equivalent of the participant's
accrued benefit The actuarial equivalent calculation shall be completed
using the applicable factors contained in the last actuarial valuation
report filed with the Public Employee Retirement Commission under
the Act and for the purpose of adjusting the amount of benefit to
recognize the early commencement of benefit payments prior to attainment
of normal retirement age.
5.
Late Retirement. A participant may continue in employment beyond
the attainment of normal retirement age subject to the employer's
rules and regulations regarding retirement age. If a participant who
has met the eligibility requirements of § 114.1 continues
in employment beyond normal retirement age, there shall be no retirement
benefits paid until employment ceases and the participant's retirement
actually begins. The retirement benefit of a participant who continues
employment after attainment of normal retirement age shall be calculated
in accordance with § 114.2 on the basis of the final monthly
average salary as of such participant's late retirement date.
6.
Service Increment Benefit. Effective January 1, 2008, and notwithstanding
anything contained herein to the contrary, a participant who shall
retire after having completed years of credited service in excess
of 25 years may be eligible to receive a service increment in addition
to the normal retirement benefit The monthly amount of the Service
Increment shall be a monthly amount equal to $100 per month for each
year of completed credited service in excess of 25 years, up to a
maximum Service Increment of $500 per month after five completed years
of credited service in excess of 25 years.
7.
Payment of Benefits. Retirement benefit payments shall be payable
as of the first day of the month coincident with or next following
the participant's retirement date and the first day of each month
thereafter during the participant's lifetime. A participant must complete
an application for benefits in the manner prescribed by the plan administrator
and deliver such application to the plan administrator at least 30
days prior to the date on which benefit payments shall commence. Notwithstanding
anything contained herein to the contrary, no retirement benefit payments
nor any other payments shall be due or payable on or before the date
that is 30 days after the date the plan administrator receives the
application for benefits. Payment of benefits hereunder shall cease
as of the date of death of the participant.
8.
Limitations on Contributions.
A.
Annual Additions. Except as otherwise provided, annual additions
(which include participant contributions, unless the contributions
are being "picked-up" pursuant to Code § 414(h)(2)) under
this plan shall at all times comply with the provisions of Code § 415(c)
and the regulations thereunder, the terms of which are specifically
incorporated herein by reference. If an annual addition would otherwise
exceed the limit under Code § 415(c), the excess annual
addition will be allocated in accordance with Reg. § 1.415-6(b)(6)(ii).
B.
Multiple Plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code § 415(c),
and if the annual additions would otherwise exceed the limit under
Code § 415(c), annual additions will first be reduced under
the other plan. If there is more than one other plan, annual additions
will first be reduced under the plan with the greatest amount of annual
additions.
C.
Effective Date. The limits under which Code § 415(c) are
adjusted periodically in accordance with changes in the law or cost
of living adjustments without the need for a plan amendment. If there
is more than one permissible effective date for any required change
relating to Code § 415(c), then the change shall be effective
as of the earliest permissible effective date.
9.
Maximum Benefit Limitations. Notwithstanding any provision of this
plan to the contrary, no benefit provided under this plan attributable
to contributions of the employer shall exceed, as an annual amount,
the amount specified in Code § 415(b)(1)(A) as adjusted
pursuant to Code § 415(d), assuming the form of benefit
shall be a straight life annuity (with no ancillary benefits). The
limitations described in this subsection shall be governed by the
following conditions and definitions:
A.
Benefits paid or payable in a form other than a straight life annuity
(with no ancillary benefits) or where the employee contributes to
the plan or makes rollover contributions shall be adjusted on an actuarially
equivalent basis in accordance with applicable regulations to determine
the limitation contained herein.
B.
In the case of a benefit which commences prior to the attainment
of age 62 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis to the amount determined pursuant
to this section commencing at age 62; however, in the case of a qualified
participant (a participant with respect to whom a period of at least
15 years of service, including applicable military service, as a full-time
employee of a police or fire department is taken into account in determining
the amount of benefit), the limitation contained herein shall not
apply.
C.
In the case of a benefit which commences after attainment of age
65 by the participant, the limitation herein shall be adjusted on
an actuarially equivalent basis in accordance with applicable regulations
to the amount determined commencing at age 65.
D.
Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this section provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability retirement benefit pursuant to § 105.2 or a survivor benefit pursuant to §§ 106.2 or 106.3, with fewer than 10 years of participation the limitation expressed in this subsection (d) shall be reduced by 1/10 for each year of participation less than 10 but in no event shall this limitation be less than $1,000.
E.
The limitations expressed herein shall be based upon plan years for
calculation purposes, shall be applied to all defined benefit plans
maintained by the employer as one defined benefit plan and to all
defined contribution plans maintained by the employer as one defined
contribution plan, and shall be applied and interpreted consistent
with Code § 415 and regulations thereunder as applicable
to government plans in general and this Plan in particular.
F.
In the case of a survivor benefit under §§ 106.2 or
106.3 or a disability retirement benefit under § 105.2,
the adjustment under paragraph .B hereof shall not apply and the applicable
limitation shall be the limitation contained herein without regard
to the age of the benefit recipient.
10.
Required Distributions.
A.
Notwithstanding any other provision of this plan, the entire benefit
of any participant who becomes entitled to benefits prior to death
shall be distributed either:
(1)
Not later than the required beginning date.
(2)
Over a period beginning not later than the required beginning
date and extending over the life of such participant or over the lives
of such participant and a designated beneficiary (or over a period
not extending beyond the life expectancy of such participant, or the
joint life expectancies of such participant and a designated Beneficiary).
|
If a participant who is entitled to benefits under this plan
dies prior to the date when the entire interest has been distributed
after distribution of the benefits has begun in accordance with subparagraph
(2) above, the remaining portion of such benefit shall be distributed
at least as rapidly as under the method of distribution being used
under subparagraph (2) as of the date of the death.
|
B.
If a participant who is entitled to benefits under this plan dies
before distribution of the benefit has begun, the entire interest
of such employee shall be distributed within five years of the death
of such employee, unless the following sentence is applicable. If
any portion of the employee's interest is payable to (or for the benefit
of) a designated beneficiary, such portion shall be distributed over
the life of such designated beneficiary (or over a period not extending
beyond the life expectancy of such beneficiary), and such distributions
begin not later than one year after the date of the employee's death
or such later date as provided by regulations issued by the Secretary
of the Treasury, then for purposes of the five-year rule set forth
in the preceding sentence, the benefit payable to the beneficiary
shall be treated as distributed on the date on which such distributions
begin. Provided, however, that notwithstanding the preceding sentence,
if the designated beneficiary is the surviving spouse of the participant,
then the date on which distributions are required to begin shall not
be earlier than the date upon which the employee would have attained
age 70 1/2 and, further provided, if the surviving spouse dies
before the distributions to such spouse begin, this subparagraph shall
be applied as if the surviving spouse were the employee.
C.
For purposes, of this section, the following definitions and procedures
shall apply:
(1)
Required Beginning Date. April 1 of the calendar year following
the later of the calendar year in which the employee attains age 70 1/2,
or the calendar year in which the employee retires.
(2)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this plan according to its rules.
(3)
Any amount paid to a child shall be treated as if it had been
paid to the surviving spouse if such amount will become payable to
the surviving spouse upon such child's reaching majority (or other
designated event permitted under regulations issued by the Secretary
of the Treasury).
(4)
For purposes of this section, the life expectancy of an employee
and/or the employee's spouse (other than in the case of a life annuity)
may be redetermined but not more frequently than annually.
11.
Direct Rollovers.
A.
Notwithstanding any provision of the plan to the contrary that would
otherwise limit a distributee's election under this section, a distribute
may elect, at the time and in the manner prescribed by the plan administrator,
to have any portion of an eligible rollover distribution paid directly
to an eligible retirement plan specified by the distributee in a direct
rollover.
B.
This § 104.11.B shall apply to distributions made on or
after January 1, 2006. Notwithstanding any provision of the plan to
the contrary that would otherwise limit a distributee's election under
this section, if a distribution in excess of $1,000 is made and the
distributee does not make an election under § 104.11.A and
does not elect to receive the distribution directly, the plan administrator
shall make such transfer to an individual retirement plan of a designated
trustee or issuer pursuant to § 108.3.I. The plan administrator
shall notify the distributee in writing, within a reasonable period
of time and as otherwise prescribed by law, that the distribution
may be transferred to another individual retirement plan.
C.
For purposes of this section, the following definitions shall apply:
(1)
"Eligible rollover distribution" is any distribution of all
or any portion of the balance to the credit of the distributee, except
that an eligible rollover distribution does not include: any distribution
that is one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life or (life expectancy)
of the distributee or the joint lives (or joint life expectancies)
of the distributee and the distributee's designated beneficiary, or
for a specified period of 10 years or more; any distribution to the
extent such distribution is required under Code § 401(a)(9);
and the portion of any distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities).
For purposes of the direct rollover provisions in this section
of the plan, a portion of the distribution shall not fail to be an
eligible rollover distribution merely because the portion consists
of after-tax employee contributions that are not includible in gross
income. However, such portion may only be paid to an individual retirement
account or annuity described in § 408(a) or (b) of the Code,
or to a qualified defined contribution plan described in §§ 401(a)
or 403(a) of the Code that agrees to separately account for amounts
so transferred, including separately accounting for the portion of
such distribution which is includible in gross income and the portion
which is not includible.
(2)
"Eligible retirement plan is a qualified trust described in
Code § 401(a), an individual retirement account described
in Code § 408(a), an individual retirement annuity described
in Code § 408(b), an annuity plan described in Code § 403(a),
an annuity contract described in Code § 403(b), an eligible
deferred compensation plan described in Code § 457(b), which
is maintained by a state, political subdivision of a state, and any
agency or instrumentality of a state or a political subdivision of
a state and which agrees to separately account for amounts transferred
into such plan from this plan.
(3)
"Distributee" includes an employee or former employee. In addition,
the employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
§ 414(p), are distributees with regard to the interest of
the spouse or former spouse.
(4)
"Direct rollover" is a payment by the plan to the eligible retirement
plan specified by the distributee or the plan administrator, if the
distributee does not make an election.
12.
Assignment. The pension benefit payments prescribed herein shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant or designated
beneficiary and shall not be subject to assignment or transfer unless
the subject of a domestic relations order, mandated by court of competent
jurisdiction, that clearly provides for proper distribution of a portion
of the pension benefit payments to an alternate payee (former spouse
of the participant) and does not require any benefit to be paid in
excess of the available benefit earned and accrued under the plan.
13.
Retired Participants. Any participant who shall have retired prior
to the restatement date shall not have the benefit altered in any
way by the provisions of this amended and restated plan, except where
otherwise expressly provided herein. Such retired participants shall
continue to have their benefits governed by the terms of the plan
in effect on the day preceding the restatement date. Any participant
who shall have terminated employment and elected to receive a deferred
retirement benefit under § 107.3 shall have such benefit
determined based upon the provisions of the plan in effect as of the
date of such termination of employment and shall not have the benefit
altered by the provisions of this amended and restated Plan.
14.
Limitation of Liability. Nothing contained herein shall obligate
the employer, the plan administrator, any fiduciary or any agent or
representative of any of the foregoing, to provide any retirement
or other benefit to any participant or beneficiary which cannot be
provided from the assets available in the pension fund, whether such
benefits are in pay status or otherwise payable under the terms of
the plan. The Board retains the right to amend or terminate this plan
consistent with applicable law at any time, with or without cause
and whether or not such action directly or indirectly results in the
suspension, reduction or termination of any benefit payable under
the plan or in pay status, and without liability to any person for
any such action.
15.
Personal Right of Participant. The right to receive any benefits
under this plan is a personal right of the participant and shall expire
upon the death of the participant. No heir, legatee, devisee, beneficiary,
assignee or other person claiming by or through a participant shall
have any interest in any benefits hereunder unless clearly and expressly
so provided by the terms of this plan or the provisions of applicable
law. A participant's election, failure to make an election or revocation
of an election hereunder shall be final and binding on all persons.
16.
Non-duplication of Benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under the plan
and who shall resume employment shall have benefit payments suspended
until the first day of the month coincident with or next following
the date such employment shall cease, except for the participant who
is participating in the inservice retirement option plan sponsored
by the employer upon resumption of benefit payments, such participant
shall receive the greater of the amount of the suspended benefit or
the amount of benefit based upon final monthly average salary and
credited service as of the date that such period of resumed employment
shall cease.
[Ord. 2007-O-21, 12/12/2007, Art. V]
1.
Disability Retirement. A participant who shall incur a total and
permanent disability before attaining normal retirement age shall
be entitled to a disability retirement benefit as of the disability
date.
2.
Disability Retirement Benefit. A participant who shall be entitled
to a disability retirement benefit under subsection .1 shall receive
a monthly benefit in an amount equal to 50% of the participant's accrued
benefit, using their final monthly average salary as of the date the
participant terminated employment due to their total and permanent
disability, however, the disability retirement benefit shall be no
less than 50% of the member's salary at the time the disability was
incurred as defined pursuant to § 101 determined as of the
disability date, reduced by the amount of any benefits the member
receives for the same injuries under social security disability.
3.
Payment of Disability Benefits. Disability payments shall be made
monthly as of the first day of each month, commencing as of the first
day of the month coincident with or immediately following the participant's
disability date and continuing until the earliest of the death of
the participant or cessation of total and permanent disability.
A participant who shall fail to return within three months to
employment as an employee of the employer upon cessation of total
and permanent disability prior to attainment of normal retirement
age shall be deemed to have terminated employment as of the disability
date, shall not be entitled to any distribution of accumulated contributions
pursuant to § 107.2 to the extent that the total amount
of disability payments exceeds the value of the participant's accumulated
contributions as of the disability date, and shall not be entitled
to any other benefits under the plan on account of any credited service
as of the disability date.
4.
Verification of Disability. The plan administrator shall in its sole
discretion determine whether a participant shall have incurred a total
and permanent disability. The plan administrator shall rely on the
report of a physician acceptable to the plan administrator. If the
plan administrator shall determine that a participant who is totally
and permanently disabled has recovered sufficiently to resume active
employment as a police officer or if a participant refuses to undergo
a medical examination as directed by the plan administrator (such
a medical examination may not be required more frequently than once
in any given twelve-month period), the payment of disability retirement
benefits shall cease.
5.
Cessation of Disability. A participant who is receiving payment of
disability retirement benefits under this plan must notify the plan
administrator of any change which may cause a cessation of entitlement
to receipt of such benefits hereunder. If a participant fails to provide
immediate notice to the plan administrator of any such change in status
and continues to receive payment of benefits hereunder to which the
participant is not entitled, then the plan may take whatever action
is necessary to recover any amount of improperly paid amounts, including
legal action or offsetting such amounts against any future payments
of retirement or other benefits under the plan, including the costs
of such actions.
[Ord. 2007-O-21, 12/12/2007, Art. VI]
1.
Death of Participant. Upon the occurrence of the death of a participant,
there shall be benefits payable in accord with, the following sections
of this section.
2.
Survivor Benefit. If a participant shall die after commencement of
retirement or disability retirement benefit payments or after becoming
eligible to receive retirement benefit payments under the plan and
before retirement benefit payments commence, a survivor benefit shall
be paid to the surviving spouse or dependent child(ren), if any, of
the participant pursuant to § 106.4 in an amount equal to
50% of the benefit the participant was receiving or was eligible to
receive as of the date of death. The survivor benefit shall include
for this purpose, any service increment benefit to which the participant
was entitled pursuant to § 104.6.
4.
Payment of Survivor Benefit. The survivor benefit commences as of
the first day of the month coincident with or immediately following
the date of death of the participant. The survivor benefit shall be
paid monthly to the surviving spouse of the participant, if any, until
the date of death of the surviving spouse. Upon the death of the surviving
spouse or if there is no surviving spouse, the survivor benefit shall
be paid monthly in equal shares to the surviving dependent child(ren)
of the deceased participant until attainment of age 18, or if attending
college, under or attaining the age of 23. The shares payable to the
surviving dependent child(ren) shall be adjusted as each child ceases
to be eligible to receive a share of the benefit hereunder.
5.
Death of Participant Prior to Retirement. If a participant shall
die before payment of a benefit has commenced and without eligibility
for payment of a survivor benefit under §§ 106.2 or
106.3, the surviving spouse of the participant shall be eligible to
receive a distribution in an amount equal to the accumulated contributions
of the participant as of the date of death of the participant if the
participant's surviving spouse dies before the distribution or if
there is no surviving spouse, the deceased participant's surviving
dependent child(ren), if any, shall be entitled to receive a distribution
in an amount equal to the accumulated contributions of the participant
as of the date of death of the participant, until attainment of age
18 or, if attending college, under or attaining the age of 23, unless
the participant had designated another beneficiary under the plan
for this purpose. If the participant has received disability retirement
benefits hereunder, the amount of the distribution of accumulated
contributions shall be reduced by the amount of disability retirement
benefits, which have been paid hereunder.
[Ord. 2007-O-21, 12/12/2007, Art. VII]
1.
Rights of Terminated Employees. A participant who shall cease to
be an employee except as otherwise hereinbefore provided shalt have
all interest and rights under this plan limited to those contained
in the following Sections of this Part.
2.
Distribution of Accumulated Contributions. A participant whose employment
with the employer shall terminate for any reason other than death
or total and permanent disability prior to attainment of normal retirement
age shall be entitled to receive a distribution of accumulated contributions
upon receipt of such accumulated contributions, said participant and
beneficiary shall not be entitled to any farther payments from the
plan.
3.
Deferred Retirement Benefit. A participant who shall have completed
at least 12 years of credited service and whose employment with the
employer shall terminate for any reason other than due to death or
total and permanent disability prior to attainment of normal retirement
age shall be entitled to elect by filing a written notice of the intention
to vest with the plan administrator, within 90 days of the date employment
ceases to receive a deferred retirement benefit in lieu of a distribution
of accumulated contributions under § 107.2. Such a deferred
retirement benefit shall be equal to the participant's accrued benefit
as of the date employment terminates and shall commence after application
pursuant to § 104.7 and not earlier than the date which
would be the participant's normal retirement date under the plan if
the participant remained in employment until such date.
4.
Forfeiture. Rights under this plan shall be subject to forfeiture
as provided by the Act of July 8, 1978 (P.L. 752, No. 140), known
as the Public Employee Pension Forfeiture Act.
[Ord. 2007-O-21, 12/12/2007, Art. VIII]
1.
Plan Administrator. The plan administrator shall be the committee
or the individual appointed by the Board who shall have the power
and authority to do all acts and to execute, acknowledge and deliver
all instruments necessary to implement and effectuate the purpose
of this plan. The plan administrator may delegate authority to act
on its behalf to any persons it deems appropriate. If a plan administrator
is not appointed, the Board shall be the plan administrator.
2.
Pension Committee. The Board shall appoint a pension committee, and
it shall be for the purpose of advising the Board regarding the administration
of the plan unless the Board shall delegate such authority as it shall
deem appropriate to the committee to permit the Committee to act as
the plan administrator. The committee shall consist of at least one
employee covered by the plan. Each member of the committee shall serve
in that capacity until the earliest of death, resignation, removal
or otherwise. Each member may be removed at any time, with or without
cause, by the Board. Each member may resign by delivering written
notice to the Board and other members of the committee vacancies on
the committee shall be filled by the Board.
3.
Authority and Duties of the Plan Administrator. The plan administrator
shall have full power and authority to do whatever shall, in its judgment,
be reasonably necessary for the proper administration and operation
of the plan. The interpretation or construction placed upon any term
or provision of the plan by the plan administrator or any action of
the plan administrator taken in good faith shall, upon the Board's
review and approval thereof, be final and conclusive upon all parties
hereto, whether employees, participants or other persons concerned.
By way of specification and not limitation and except as specifically
limited hereafter, the plan administrator is authorized:
A.
To construe this plan.
B.
To determine all questions affecting the eligibility of any employee
to participate herein.
C.
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary.
D.
To authorize any and all disbursements.
E.
To prescribe any procedure to be followed by any participant or other
person in filing any application or election.
F.
To prepare and distribute, in such manner as may be required by law
or as the plan administrator deems appropriate, information explaining
the plan.
G.
To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan.
H.
To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws.
I.
To select an individual retirement plan provider (either the state
or a federally regulated financial institution) and invest funds in
connection with the rollover of mandatory distributions as described
in § 104.11.B.
The plan administrator shall have no power to add to, subtract
from or modify the terms of the plan or change or add to any benefits
provided by the plan, or to waive or fail to apply any requirements
of eligibility for benefits under the plan. Further, the plan administrator
shall have no power to adopt, amend, or terminate the plan, to select
or appoint any trustee or to determine or require any contributions
to the plan, said powers being exclusively reserved to the Board.
4.
Pension Committee Organization. If the Board appoints a committee,
it may organize itself in any manner deemed appropriate to effectuate
its purposes hereunder provided that it shall operate and act by a
majority of its members at the time in office either by vote at a
meeting or in writing without a meeting. The committee shall, from
time to time, appoint a chairman, a secretary who may, but need not
be a committee member and such other agents as it may deem advisable.
The committee may authorize any one or more of its members to execute
any document or documents including any application, request, certificate,
notice, consent, waiver or direction and shall notify the Board, in
writing, of the name or names of each such member so authorized; however,
if no such member is so authorized, the chairman shall be deemed to
be so authorized. Any trustee or other fiduciary appointed hereunder
shall accept and be fully protected in relying upon any document executed
by the designated members (or the chairman in the absence of a designation)
as representing a valid action by the committee until the committee
shall file with such fiduciary a written revocation of such designation.
The committee or its delegate, shall meet at least one time in each
plan year, and it shall maintain and keep such records as are necessary
for the efficient operation of the plan or as may be required by any
applicable law, regulation or ruling, and shall provide for the preparation
and filing of such forms, reports or documents as may be required
to be filed with any governmental agency or department and with the
participants or other persons entitled to benefits under the plan,
but only to the extent the Board shall delegate such duties and responsibilities
to the committee.
5.
Plan Administrator Costs. The plan administrator shall serve without
compensation for services unless otherwise agreed by the Board in
writing. All reasonable expenses incident to the functioning of the
plan administrator including, but not limited to, fees of accountants,
counsel, actuaries and other specialists, and other costs of administering
the plan, may be paid from the pension fund upon approval by the Board
to the extent permitted under applicable law and not otherwise paid
by the employer.
6.
Hold Harmless. No member of the Board, the plan administrator, nor
any other person involved in the administration of the plan shall
be liable to any person on account of any act or failure to act which
is taken or omitted to be taken in good faith in performing their
respective duties under the terms of this plan. To the extent permitted
by law, the employer shall, and hereby does agree to, indemnify and
hold harmless the plan administrator and each successor and each of
any such individual's heirs, executors and administrators, and the
delegates and appointees (other than any person, bank, firm or corporation
which is independent of the employer and which renders services to
the plan for a fee) from any and all liability and expenses, including
counsel fees, reasonably incurred in any action, suit or proceeding
to which he is or may be made a party by reason of being or having
been a member, delegate or appointee of the plan administrator, except
in matters involving criminal liability, intentional or willful misconduct.
If the employer purchases insurance to cover claims of a nature described
above, then there shall be no right of indemnification except to the
extent of any deductible amount under the insurance coverage or to
the extent of the amount the claims exceed the insured amount.
7.
Approval of Benefits. The plan administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
8.
Appeal Procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the plan ("claimant"), shall first
seek a resolution of such claim under the procedure hereinafter set
forth:
A.
Any claimant shall file a notice of the claim with the plan administrator
which shall fully describe the nature of the claim. The plan administrator
shall review the claim and make an initial determination approving
or denying the claim.
B.
If the claim is denied in whole or in part, the plan administrator
shall, within 90 days (or such other period as may be established
by applicable law) from the time the application is received, mail
notice of such denial to the claimant. Such ninety-day period may
be extended by the plan administrator if special circumstances so
require for up to 90 additional days by the plan administrator's delivering
notice of such extension to the claimant within the first 90 day period.
Any notice hereunder shall be written in a manner calculated to be
understood by the claimant and; if a notice of denial, shall set forth
(1) the specific plan provisions on which the denial is based, (2)
an explanation of additional material or information, if any, necessary
to perfect such claim and a statement of why such material or information
is necessary, and (3) an explanation of the review procedure.
C.
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Board of the initial
determination. Such request for review must be made by notice to the
Board within 60 days of receipt of such notice of denial. During such
review, the claimant or a duly authorized representative shall have
the right to review any pertinent documents and to submit any issues
or comments in writing. The Board shall, within 60 days after receipt
of the notice requesting such review, (or in special circumstances,
such as where the Board in its sole discretion holds a hearing, within
120 days of receipt of such notice), submit its decision in writing
to the person or persons whose claim has been denied. The decision
shall be final, conclusive and binding on all parties, shall be written
in a manner calculated to be understood by the claimant and shall
contain specific references to the pertinent Plan provisions on which
the decision is based.
D.
Any notice of a claim questioning the amount of a benefit in pay
status shall be filed within 90 days following the date of the first
payment which would be adjusted if the claim is granted unless the
plan administrator allows a later filing for good cause shown.
E.
A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
F.
Nothing contained herein is intended to abridge any right of a claimant
to appeal any final decision hereunder to a court of competent jurisdiction
under 2 Pa.C.S.A. § 752. No decision hereunder is a final
decision from which such an appeal may be taken until the entire appeal
procedure of this section of the plan has been exhausted.
[Ord. 2007-O-21, 12/12/2007, Art. IX]
1.
Operation of the Pension Fund. The Board is hereby authorized to
hold and supervise The investment of the assets of the pension fund,
subject to the provisions of the laws of the Commonwealth and of this
plan and any amendment thereto. The pension fund shall be used to
pay benefits as provided in the plan and, to the extent not paid directly
by the employer, to pay the expenses of administering the plan pursuant
to authorization by the employer, The employer intends the plan to
be permanent and for the exclusive benefit of its employees. It expects
to make the contributions to the pension fund required under the plan.
The employer shall not be liable in any manner for any insufficiency
in the pension fund; benefits are payable only from the pension fund,
and only to the extent that there are monies available therein. The
pension fund will consist of all funds held by the employer under
the plan, including contributions made pursuant to the provisions
hereof and the investments, reinvestments and proceeds thereof. The
pension fund shall be held, managed, and administered pursuant to
the terms of the plan. Except as otherwise expressly provided in the
plan, the employer has exclusive authority and discretion to manage
and control the pension fund assets. The employer may, however, appoint
a trustee, custodian or investment manager, at its sole discretion.
2.
Powers and Duties of Employer. With respect to the pension fund,
the employer shall have the following powers, rights and duties, in
addition to those vested in it elsewhere in the plan or by law, unless
such duties are delegated:
A.
To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), without liability for interest thereon.
B.
To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time legal investments for fiduciaries
under the Pennsylvania Fiduciaries Investment Act, or as the same
may be subsequently modified or amended.
C.
To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
D.
To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
E.
To exercise all conversion and subscription rights pertaining to
property held in the fund.
F.
To exercise all voting rights with respect to property held in the
fund and in connection therewith to grant proxies, discretionary or
otherwise.
G.
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this plan no matter where situated, including
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
H.
In addition to the foregoing powers, the employer shall also have
all of the powers, rights, and privileges conferred upon trustees
by the Pennsylvania Fiduciaries Investment Act, or as the same may
be subsequently modified or amended, and the power to do all acts,
take all proceedings and execute all rights and privileges, although
not specifically mentioned herein, as the employer may deem necessary
to administer the pension fund.
I.
To maintain and invest the assets of this plan on a collective and
commingled basis with the assets of other pension plans maintained
by the employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
J.
To invest the assets of the pension fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder. In this connection,
the commingling of the assets of this plan with assets of other eligible,
participating plans through such a medium is hereby specifically authorized.
Any assets of the plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
plan, to the extent of the participation in such collective or commingled
trust fund by the plan.
K.
To make any payment or distribution required or advisable to carry
out the provisions of the plan, provided that if a trustee is appointed
by the employer, such trustee shall make such distribution only at
the direction of the employer.
L.
To compromise, contest, arbitrate, enforce or abandon claims and
demands with respect to the plan.
M.
To retain any funds or property subject to any dispute without liability
for the payment of interest thereon, and to decline to make payment
or delivery thereof until final adjudication is made by a court of
competent jurisdiction.
N.
To pay, and to deduct from and charge against the pension fund, any
taxes which may be imposed thereon, whether with respect to the income,
property or transfer thereof, or upon or with respect to the interest
of any person therein, which the fund is required to pay; to contest,
in its discretion, the validity or amount of any tax, assessment,
claim or demand which may be levied or made against or in respect
of the pension fund, the income, property or transfer thereof, or
in any matter or thing connected therewith.
O.
To appoint any persons or firms (including, but not limited to, accountants,
investment advisors, counsel, actuaries, physicians, appraisers, consultants,
professional plan administrators and other specialists), or otherwise
act to secure specialized advice or assistance, as it deems necessary
or desirable in connection with the management of the fund; to the
extent not prohibited by applicable law, the employer shall be entitled
to rely conclusively upon and shall be fully protected in any action
or omission taken by it in good faith reliance upon, the advice or
opinion of such persons or firms, provided such persons or firms were
prudently chosen by the employer, taking into account the interests
of the participants and Beneficiaries and with due regard to the ability
of the persons or firms to perform their assigned functions.
P.
To retain the services of one or more persons or firms for the management
of (including the power to acquire and dispose of) all or any part
of the fund assets, provided that each of such persons or firms is
registered as an investment advisor under the Investment Advisors
Act of 1940, is a bank (as defined in that act), or is an insurance
company qualified to manage, acquire or dispose of pension trust assets
under the laws of more than one State; in such event, the employer
shall follow the directions of such investment manager or managers
with respect to the acquisition and disposition of fund assets, but
shall not be liable for the acts or omissions of such investment manager
or managers, nor shall it be under any obligation to review or otherwise
manage any fund assets which are subject to the management of such
investment manager or managers. If the employer appoints a trustee,
the trustee shall not be permitted to retain such an investment manager
except with the express written consent of the employer.
3.
Common Investments. The employer shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account, but may invest contributions and any
profits or gains therefrom in common investments.
4.
Compensation and Expenses of Appointed Trustee. If a trustee is appointed,
the trustee shall be entitled to such reasonable compensation as shall
from time to time be agreed upon by the employer and the trustee,
unless such compensation is prohibited by law. Such compensation,
and all expenses reasonably incurred by the Trustee in carrying out
its functions, shall constitute a charge upon the employer or the
pension fund, which may be executed at any time after 30 days written
notice to the employer. The employer shall be under no obligation
to pay such costs and expenses, and, in the event of its failure to
do so, the trustee shall be entitled to pay the same, or to be reimbursed
for the payment thereof, from the pension fund.
5.
Periodic Accounting. If a trustee is appointed, the pension fund
shall be evaluated annually, or at more frequent intervals, by the
trustee and a written accounting rendered as of each fiscal year end
of the fund, and as of the effective date of any removal or resignation
of the trustee, and such additional dates as requested by the employer,
showing the condition of the fund and all receipts, disbursements
and other transactions effected by the trustee during the period covered
by the accounting, based on fair market values prevailing as of such
data.
6.
Value of the Pension Fund. All determinations as to the value of
the assets of the pension fund, and as to the amount of the liabilities
thereof, shall be made by the employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the participants and beneficiaries and their estates. In making
any such determination, the employer or trustee shall be entitled
to seek and rely upon the opinion of or any information furnished
by brokers, appraisers and other experts, and shall also be entitled
to rely upon reports as to sales and quotations, both on security
exchanges and otherwise as contained in newspapers and in financial
publications.
[Ord. 2007-O-21, 12/12/2007, Art. X]
1.
Amendment of the Plan. The employer may amend this plan at any time
or from time to time by an instrument in writing executed in the name
of the employer under its municipal seal by officers duly authorized
to execute such instrument and delivered to the Board provided, however:
A.
That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which each is
entitled under this plan with respect to contributions previously
made.
B.
That no amendment shall provide for the use of funds or assets held
under this plan other than for the benefit of employees and no funds
contributed to this plan or assets of this plan shall, except as provided
in § 110.5, ever revert to or be used or enjoyed by the
employer.
C.
That no amendment to the plan which provides for a benefit modification
shall be made unless the cost estimate described in § 111.3
has been prepared and presented to the Board in accordance with the
Act.
2.
Termination of the Plan. The employer shall have the power to terminate
this plan in its entirety at any time by an instrument in writing
executed in the name of the employer.
3.
Automatic Termination of Contributions. Subject to the provisions
of the Act governing financially distressed municipalities, the liability
of the employer to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
4.
Distribution Upon Termination. In the event of the termination of
the plan, all amounts of vested benefits accrued by the affected participants
as of the date of such termination, to the extent funded on such date,
shall be nonforfeitable hereunder. In the event of termination of
the plan, the employer shall direct either (A) that the plan administrator
continue to hold the vested accrued benefits of participants in the
pension fund in accordance with the provisions of the plan (other
than those provisions related to forfeitures) without regard to such
termination until all funds have been distributed in accordance with
the provisions; or (B) that the plan administrator immediately distribute
to each participant an amount equal to the vested accrued benefit
to the date.
If there are insufficient assets in the pension fund to provide
for all vested accrued benefits as of the date of plan termination,
priority shall first be given to the distribution of any amounts attributable
to mandatory or voluntary employee contributions before assets are
applied to the distribution of any vested benefits attributable to
other sources hereunder.
All other assets attributable to the terminated plan shall be
distributed and disposed of in accordance with the provisions of applicable
law and the terms of any instrument adopted by the employer which
effects such termination.
5.
Residual Assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the employer
insofar as such return does not contravene any provision of law, and
any remaining balance, in excess of employer contributions, shall
be returned to the Commonwealth.
6.
Exclusive Benefit Rule. In the event of the discontinuance and termination
of the plan as provided herein, the employer shall dispose of the
pension fund in accordance with the terms of the plan and applicable
law; at no time prior to the satisfaction of all liabilities under
the plan shall any part of the corpus or income of the pension fund,
after deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
[Ord. 2007-O-21, 12/12/2007, Art. XI]
1.
Actuarial Valuations. The plan's actuary shall perform an actuarial
valuation at least biennially. Such biennial actuarial valuation report
shall be made as of the beginning of each plan year occurring in an
odd-numbered calendar year, beginning with the year 1985, Such actuarial
venation shall be prepared and certified by an approved actuary, as
such term is defined in the Act.
The expenses attributable to the preparation of any actuarial
valuation report or investigation required by the Act or any other
expense which is permissible under the terms of the Act and which
are directly associated with administering the plan shall be an allowable
administrative expense payable from the assets of the pension fund.
Such allowable expenses shall include but not be limited to the following:
A.
Investment costs associated with obtaining authorized investments
and investment management fees.
B.
Accounting expenses.
C.
Premiums for insurance coverage on Fund assets.
D.
Reasonable and necessary counsel fees incurred for advice or to defend
the fund; and legitimate travel and education expenses for plan officials;
provided, however, that the municipal officials of the employer, in
their fiduciary role, shall monitor the services provided to the plan
to ensure that the expenses are necessary, reasonable and benefit
the plan; and further provided, that the plan administrator shall
document all such expenses item by item, and where necessary, hour
by hour.
2.
Duties of Chief Administrative Officer. Such actuarial reports shall
be prepared and filed under the supervision of the chief administrative
officer.
The chief administrative officer of the plan shall determine
the financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum municipal obligation
of the employer with respect to funding the plan for any given plan
year. The Chief Administrative Officer shall submit the financial
requirements of the plan and the minimum municipal obligation of the
employer to the Board annually and shall certify the accuracy of such
calculations and their conformance with the Act.
3.
Benefit Plan Modifications. Prior to the adoption of any benefit
plan modification by the employer, the chief administrative officer
of the plan shall provide to the Board a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Board the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum municipal obligation of the employer
with respect to the plan.
[Ord. 2007-O-21, 12/12/2007, Art. XII]
1.
Plan Not a Contract of Employment. No employee of the employer nor
anyone else shall have any rights whatsoever against the employer
or the plan administrator as a result of this plan except those expressly
granted hereunder. Participation in this plan shall not give any right
to any employee to be retained in the employ of the employer, nor
shall interfere with the right of the employer to discharge any employee
and to deal with such employee without regard to the effect such treatment
might have upon participation in this Plan.
2.
Meaning of Certain Words. For purposes of this plan, the masculine
gender shall include the feminine gender and the singular shall include
the plural, and vice versa, in all cases wherever the person or context
shall plainly so require. Headings of articles and sections are inserted
only for convenience of reference and are not to be considered in
the construction of the plan.
3.
Information to Be Furnished By the Employer. The employer shall furnish
to the plan administrator (and where applicable, the trustee) information
in the employer's possession as the plan administrator and the trustee
shall require from time to time to perform their duties under the
plan.
4.
Severability of Provisions. Should any provision of this plan be
held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this plan, and the plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted herein.
5.
Incapacity of Participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of pension benefits hereunder, the plan administrator, upon
the receipt of satisfactory evidence that such participant is so incapacitated
and that another person or institution is maintaining the participant
and that no guardian or committee has been appointed for the participant,
may provide for such payment of pension benefits hereunder to such
person or institution so maintaining the participant, and any such
payments so made shall be deemed for every purpose to have been made
to such participant.
6.
Pension Fund for Sole Benefit of Participants. The income and principal
of the pension fund are for the sole use and benefit of the participants
covered hereunder, and to the extent permitted by law, shall be free,
clear and discharged from and are not to be in any way liable for
debts, contracts or agreements, now contracted or which may hereafter
be contracted, and from all claims and liabilities now or hereafter
incurred by any participant or beneficiary.
7.
Benefits for a Deceased Participant. If any benefit shall be payable
under the plan to or on behalf of a participant who has died, if the
plan provides that the payment of such benefits shall be made to the
participant's estate, and if no administration of such participant's
estate is pending in the court of proper jurisdiction, then the plan
administrator, at its sole option, may pay such benefits to the surviving
spouse of such deceased participant, or, if there is no surviving
spouse, to such participant's then living issue, per stirpes; provided,
however, that contained herein shall prevent the plan administrator
from insisting upon the commencement of estate administration proceedings
and the delivery of any such benefits to a duly appointed executor
or administrator.
8.
Assets of the Fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
9.
Personal Liability. Subject to the provisions of the Act and unless
otherwise specifically required by other applicable laws, no past,
present or future officer or agent of the employer or plan administrator
shall be personally liable to any participant, beneficiary or other
person under any provision of the plan.
10.
Construction of Document. This plan may be executed and/or conformed
in any number of counterparts, each of which shall be deemed an original
and shall be construed and enforced according to the laws of the Commonwealth,
excepting such Commonwealth's choice of law rules.
[Ord. 2007-O-21, 12/12/2007, Art. XIII]
1.
IROP
IROP ACCOUNT
TRUSTEE
Definitions. The following words and phrases when used in this Part
shall have the meanings given to them in this section only, unless
the context clearly indicates otherwise:
An in-service retirement option plan.
The Board of Supervisors of Newtown Township.
2.
Eligibility of Employee to Participate in IROP. Full-time officers
of the Newtown Township Police Department (the "officers"), that have
not retired prior to the implementation of the IROP program, may enter
into the IROP on the first day of any month after which they have
attained both the age and service requirements for normal retirement.
3.
Written Election. An officer electing to participate in the IROP
must complete and execute an "IROP option form" prepared by the Township
of Newtown, which shall evidence the officer's participation in the
IROP. The form must be signed by the officer and notarized and submitted
to the Township of Newtown, prior to the date on which the officer
wishers the IROP option to be effective. The IROP option notice shall
include an irrevocable notice to the Township, by the officer, that
the officer shall resign from employment with the Newtown Township
Police Department effective on a specific date not less than one nor
more than five years from the effective date of the IROP option. In
addition, as a condition of participating in the IROP plan, the officer
shall execute and file all retirement documents required by the plan
administrator with the Township for approval. Once a retirement application
has been approved by the Township, it is irrevocable.
4.
Limitation on Pension Accrual. After the effective data of the IROP
option, the officer shall no longer earn or accrue additional years
of credited service for pension purposes.
5.
Benefit Calculation. For all retirement purposes, credited service
of an officer participating in the IROP shall remain, as it existed
on the day prior to the effective date of commencement of participation
in the IROP. Credited service thereafter shall not be recognized or
used for the calculation or determination of any benefits payable
by the Newtown Township Police Pension Fund. The final monthly average
salary of the officer for pension calculation purposes shall remain,
as it existed on the day prior to the effective date of commencement
of participation in the IROP. Earnings or increases in earnings thereafter
shall not be recognized or used for the calculation or determination
of any benefits payable by the pension fund. By participating in the
IROP program, the officers agree that they will waive any claim that
their pension benefit must be increased (with back pay) because Act
600 requires that payments be based on final monthly average salary.
6.
Payments to IROP Account. The monthly retirement benefits that would have been payable had the officer elected to cease employment and receive a normal retirement benefit, shall, upon the officer commencing participation in the IROP, be credited to an TROP account in the name of such officer. A separate participant-directed IROP account shall be established pursuant to § 1-113, Subsection 7, to accept the monthly retirement benefits. Notwithstanding the preceding, to the extent that such participant-directed IROP account is considered a defined contribution plan pursuant to Code § 414(k) and a participant's total monthly retirement benefits to their IROP account for a plan year exceed the annual additions limit under Code § 415(c), the monthly retirement benefits in excess of such limit shall instead be credited to a notional IROP account established for the officer, which may not necessarily be physically segregated from the Pension Fund, along with interest pursuant to § 1-113, Subsection 7.
[Amended by Ord. No. 2023-O-3, 4/26/2023]
7.
IROP Account Investment and Earnings.
[Amended by Ord. No. 2023-O-3, 4/26/2023]
A.
The trustee
and the Newtown Township Police Benevolent Association shall select
a third party to provide mutual fund or other investment options,
recordkeeping and reporting to the Township for investment of monthly
retirement benefits transferred to participant-directed IROP accounts.
Each officer shall select the investment for his or her individual
participant-directed IROP account from the array of options provided
by the third-party fund administrator and shall be entitled to all
earnings on such investments. Each officer shall bear his or her pro
rata share of the investment and administration costs, which share
shall be charged against the individual investment accounts of the
officer's participant-directed IROP account.
B.
Monthly
retirement benefits credited to the notional IROP account, if any,
shall be credited with interest at the rate of return on the Pension
Fund, compounded monthly, but shall be no less than 0% nor more than
4.5% annually, in accordance with the Act.
8.
Payout. Upon the termination date set forth in the officer's IROP option notice, or such date as the Township separates the officer from employment, the retirement benefits payable to the officer or officer's beneficiary, if applicable, shall be paid to the officer or beneficiary and shall no longer be paid to the officer's IROP account. Within 30 days following termination of an officer's employment pursuant to his or her participation in the IROP program, the balance in the officer's participant-directed IROP account, and within 45 days the balance in the officer's notional IROP account, if any, shall be paid to the officer pursuant to the distribution options set forth in § 1-113, Subsection 9, below.
[Amended by Ord. No. 2023-O-3, 4/26/2023]
9.
Distribution Options. Commensurate with IROP participation, an officer
shall make an election, on forms designated by the trustee, of the
payout option(s) he or she wishes at the termination of the IROP period.
This election may be changed at anytime prior to termination.
[Amended by Ord. No. 2023-O-3, 4/26/2023]
A.
The distribution options for the participant-directed IROP account
are as follows:
(1)
A
full and single lump sum distribution;
(2)
Rollover
to another qualified retirement plan (as permitted by law) or to an
IRA;
(3)
Purchase
of an annuity; or
(4)
Keep
the monies in the individual IROP investment account.
Monies kept in the individual IROP investment account may be
withdrawn in any manner desired by the officer.
10.
Disability During IROP.
A.
Permanent Disability. If, while an officer is enrolled in IROP and
he or she is injured while on duty, to the extent that he or she is
permanently disabled from performing police work for Newtown Township
as a result of that service-connected disability, the Officer shall
be retired on the basis of a service-connected disability, at the
then current normal monthly retirement benefit. If an officer becomes
temporarily disabled during his or her participation in IROP, disability
benefits are not available from the plan.
B.
Temporary Disability. If an officer becomes temporarily disabled
during his or her participation in IROP, the officer shall receive
disability pay in the same amount as disabled officers that are not
participating in IROP. In no event shall an officer on temporary disability
have the ability to draw from his or her IROP account. However, notwithstanding
any other provision in this paragraph, if an officer is disabled and
has not returned to work as of the time of his or her required resignation,
then such resignation shall take precedence over all other provisions
herein and said officer shall be required to resign. Nothing contained
in this section shall be construed as conferring any legal rights
upon any officer or employee, or other person, to a continuation of
employment nor shall participation in the IROP program supersede or
limit in any way the right of the Township to honorably discharge
an IROP program participant based upon an inability to perform his
or her full duties as an officer. If an officer becomes temporarily
disabled during his or her participation in IROP, disability benefits
are not available from the plan.
11.
Beneficiary Designation. Commensurate with IROP participation, an
officer shall make an election, on forms designated by the trustee,
of the beneficiary or beneficiaries he or she wishes to receive the
monies in his or her individual IROP investment account in the event
of his or her death before all amounts have been distributed.
12.
Death. If an IROP officer dies before the IROP account balances are
paid, the officer's legal beneficiary shall have the same rights as
the officer to withdraw the account balance.
13.
Amendment. Any amendments to § 113 shall be consistent
with the provisions covering in-service retirement option plans set
forth in any applicable collective bargaining agreement and shall
be binding upon all future IROP participants and upon all IROP participants
who have balances in the IROP accounts. This § 113 shall
be consistent with the provisions of all future requirements imposed
by amendments to Act 600 or any other Federal, State or local ordinance
or resolution.
14.
Change of Law. If any State or Federal law is passed which is inconsistent
with the provisions of this section, this Part will automatically
be amended to comply with the applicable provision(s) of the State
or Federal law. Any officer who has already elected to participate
in the IROP shall, by virtue of his or her application to participate
in the IROP, be deemed to have his or her IROP option form and plan
automatically amended to conform to the inconsistent Federal or State
imposed requirement(s) on participation in an IROP. The Township shall
have an affirmative duty to meet and discuss any change in law which
affects the IROP with the individual participants and the police bargaining
unit.
