Township of Lower Moreland, PA
Montgomery County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Board of Commissioners of the Township of Lower Moreland 7-17-1991 by Ord. No. 415. Amendments noted where applicable.]
GENERAL REFERENCES
Pensions — See Ch. 45.
Salaries and compensation — See Ch. 58.
Social security and retirement — See Ch. 62.

§ 64-1 Authorization.

The Board of Commissioners of Lower Moreland Township is hereby authorized to execute the Delaware Valley Workers' Compensation Intergovernmental Agreement for the participation of Lower Moreland 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 offices of Lower Moreland Township, Montgomery County, Pennsylvania. This agreement may be amended after the enactment of this chapter to conform to any requirements imposed by the Commonwealth of Pennsylvania Department of Labor and Industry Bureau of Workers' Compensation.

§ 64-2 Purpose.

The participation of Lower Moreland Township in the Delaware Valley Workers' Compensation Trust is authorized for the purposes of enabling Lower Moreland Township to obtain a self-insurance exemption for the payment of workers' compensation claims from the Pennsylvania Department of Labor and Industry pursuant to 77 P.S. § 501 and ultimately reduce the cost of workers' compensation claims through the creation of a joint fund to be used for the payment of workers' compensation claims on behalf of all participants in the Delaware Valley Workers' Compensation Trust.

§ 64-3 Conditions.

As set forth in the Delaware Valley Workers' Compensation Intergovernmental Agreement, the following conditions, among others, apply to the participation of Lower Moreland Township in the Delaware Valley Workers' Compensation Trust:
A. 
That each participating municipality meets the admission and eligibility requirements set forth therein.
B. 
That each participating municipality agrees to pay all annual contributions and any assessments which are required for the creation of the general operating and restricting surplus funds created pursuant to the Delaware Valley Workers' Compensation Intergovernmental Agreement.
C. 
That each participating municipality use its best efforts to provide appropriations for the payment of any contributions or assessments required by the trust for the payment of workers' compensation benefits.
D. 
That each participating municipality institute any and all loss-prevention measures or risk-management procedures as may be required for the purpose of minimizing or eliminating risks to its employees which could contribute to losses.
E. 
That each participating municipality 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 claims.
F. 
That each participating municipality designate a contact person to be responsible for all contacts with the trust.
G. 
That each participating municipality provide any information to the Administrator or Board of Trustees as may be required to effect the purposes and objectives of the trust.
H. 
That each participating municipality comply with all applicable statutes and regulations governing the payment of workers' compensation claims, including but not limited to the Pennsylvania Workmens' Compensation Act.[1]
[1]
Editor's Note: See 77 P.S. § 1 et seq. (Workers' Compensation Act).

§ 64-4 Self-insurance exemption.

The participation of Lower Moreland Township in the Delaware Valley Workers' Compensation Trust will not be effective unless and until it is granted a self-insurance exemption of the payment of workers' compensation claims by the Pennsylvania Department of Labor and Industry pursuant to 77 P.S. § 501 and any regulations promulgated thereunder.

§ 64-5 Duration of participation in trust; conditions for withdrawal.

Lower Moreland Township agrees to participate in the trust for a minimum period of two years, subject to the requirement that it continue to retain a self-insurance exemption for the payment of workers' compensation claims from the Pennsylvania Department of Labor and Industry. After the expiration of that minimum two-year period, each participating municipality may withdraw under the following conditions, subject to the right of arbitration as provided in the Delaware Valley Workers' Compensation Intergovernmental Agreement:
A. 
An opinion is rendered by the trust-certified actuary that such 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. 
That the withdrawing municipality is not then in default of its obligation to pay premiums, contributions or assessments.
C. 
That the withdrawing municipality shall pay the full amount of a termination contribution, as determined by the Board of Trustees in accordance with the Delaware Valley Workers' Compensation Intergovernmental Agreement and any bylaws adopted by the participants pursuant to that agreement.
D. 
That the Board of Trustees shall have received a certification from the trust actuary that the withdrawal of the municipality will not reduce 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 participating municipalities or any legal entity created for the purpose of incurring such debt. As used herein, the term "debt" includes any municipal bonds, certificates, letters of credit or other instruments of municipal indebtedness.

§ 64-6 Effective date.

The effective date of the participation of Lower Moreland Township in the Delaware Valley Workers' Compensation Trust will be January 1, 1992, provided that a self-insurance exemption for the payment of workers' compensation claims is obtained by it from the Pennsylvania Department of Labor and Industry before that date.

§ 64-7 Delegation of powers.

Each participating municipality delegates to the Board of Trustees of the Delaware Valley Workers' Compensation Trust the powers enumerated in the intergovernmental agreement, including the right to expel participants under certain conditions.

§ 64-8 Township contributions.

All contributions and assessments paid by Lower Moreland Township shall be made with funds appropriated by the Board of Commissioners for that purpose.

§ 64-9 Organizational structure.

The organizational structure of the trust shall consist of a Board of Trustees, an administrator, a claims administrative/loss control consultant and various service agents appointed by the Board of Trustees in accordance with the Delaware Valley Workers' Compensation Intergovernmental Agreement and any bylaws adopted pursuant thereto.

§ 64-10 Operation funds.

As set forth in the Delaware Valley Workers' Compensation Intergovernmental Agreement, the funds required for the creation and operation of the trust shall be provided by the participating municipalities through annual appropriations.

§ 64-11 Benefit contracts.

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.

§ 64-12 Township's obligations.

As a condition of participating in the Delaware Valley Workers' Compensation Trust, Lower Moreland Township agrees to:
A. 
Pay all annual contribution or assessment as may be required by the Board of Trustees.
B. 
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. 
Agree not to withdraw from the trust for a period of two years following its admission to the trust, provided that it maintains a self-insurance exemption for the payment of workers' compensation benefits from the Pennsylvania Department of Labor and Industry.
D. 
Withdraw from the trust only upon satisfaction of the conditions set forth in the Delaware Valley Workers' Compensation Intergovernmental Agreement.
E. 
Perform all covenants contained in the Delaware Valley Workers' Compensation Intergovernmental Agreement and delegate to the Board of Trustees the powers and authorities enumerated in that agreement.
F. 
Comply with all the conditions set forth in the Delaware Valley Workers' Compensation Intergovernmental Agreement governing the handling and payment of claims, including the defense and settlement thereof.
G. 
Appropriate the funds needed to pay all contributions and assessments as may be required by the Board of Trustees in accordance with the Delaware Valley Workers' Compensation Intergovernmental Agreement.
H. 
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 required by the Board of Trustees or its designee.