[HISTORY: Adopted by the Board of Supervisors of the Township of
East Norriton as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-28-1991 by Ord. No. 300]
The Board of Supervisors of East Norriton Township is hereby authorized
to execute the Delaware Workers' Compensation Intergovernmental Agreement
for the participation of East Norriton Township in the Delaware Valley Workers'
Compensation Trust, which agreement shall be substantially in the form as
attached hereto as Exhibit A. The agreement is on file for inspection and
review at the offices of East Norriton Township, Pennsylvania. This agreement
may be modified after the enactment of this article to conform to any requirements
imposed by the Commonwealth of Pennsylvania Department of Labor and Industry
Bureau of Workers' Compensation.
The participation of East Norriton Township in the Delaware Valley Workers'
Compensation Trust is authorized for the purposes of enabling East Norriton
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 in an effort to 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.
As set forth in the Delaware Valley Workers' Compensation Intergovernmental
Agreement, the following conditions, among others, apply to the participation
of East Norriton in the Delaware Valley Workers' Compensation Trust:
A.
Each participating municipality meets the admission and
eligibility requirements set forth therein.
B.
Each participating municipality agrees to pay all annual
contributions and any assessments which are required for the creation of the
General Operating and Restricted Surplus Funds created pursuant to the Delaware
Valley Workers' Compensation Intergovernmental Agreement.
C.
Each participating municipality uses 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.
Each participating municipality institutes 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.
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.
Each participating municipality designates a contact
person to be responsible for all contacts with the trust.
G.
Each participating municipality provides any information
to the administrator or Board of Trustees as may be required to effect the
purposes and objectives of the trust.
The participation of East Norriton Township in the Delaware Valley Workers'
Compensation Trust will not be effective unless and until it is granted a
self-insurance exemption for 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.
East Norriton 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.
The withdrawing municipality is not then in default of
its obligation to pay premiums, contributions or assessments;
C.
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; and
D.
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.
The effective date of the participating of East Norriton 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.
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.
All contributions and assessments paid by East Norriton Township shall
be made with funds appropriated by East Norriton Township for that purpose.
The organizational structure of the trust shall consist of a Board of
Trustees, an administrator, a claims administration/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.
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.
The Delaware Valley Workers' Compensation Trust is empowered to enter
into contracts for policies of group insurance and employee benefits, including
social security, for any of its employees.
As a condition of participating in the Delaware Valley Workers' Compensation
Trust, East Norriton Township will agree to:
A.
Pay all annual contributions or assessments 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 requested by the Board
of Trustees or its designee.
Nothing contained in this article shall be deemed to expand or in any
manner modify the Township's obligations or responsibilities under the agreement,
and nothing contained in this article shall be deemed to confer any rights
to any persons or parties in excess of those contained in the agreement.
This article is being enacted pursuant to 53 P.S. § 65741.
