Margate City, NJ Pension Plan for Lifeguards

Each plan member shall be required to contribute to the Pension Fund an amount equal to 4% of his 1985 Compensation multiplied by his Years of Service completed before the Effective Date. This contribution shall be called his "past service contribution." If a plan member did not receive any Compensation for 1985, his Compensation for the first year after 1985 for which he received Compensation shall be used to determine his past service contribution. No interest shall be added in determining a plan member's past service contribution.

A plan member's past service contribution shall be withheld from his Compensation during 1987 or, if no Compensation is received during 1987, during the first year after 1987 for which he receives Compensation. Past service contributions will be withheld in addition to the contributions described in Subsection B above. However, the past service contribution withheld from a plan member's Compensation for any year shall not exceed $500 unless the plan member consents thereto. Such portion of his past service contribution which remains unpaid by operation of the preceding sentence shall be withheld from his Compensation for the next following year(s) until completely paid. A plan member may pay all or part of his past service contribution directly to the Pension Fund in addition to the payroll withholding described in this section.

Any benefit under this plan which is conditioned on the completion of a minimum number of Years of Service, some of which were completed prior to the Effective Date, will also be conditioned on the full payment of the plan member's past service contribution.

§ A286-3 Normal retirement pension for service and age.

Conditions to be satisfied. A plan member may retire with a pension only after his 45th birthday and after he has completed 20 Years of Service, the last 10 of which must have been completed immediately preceding his application. This pension shall be known as his "normal pension." It shall commence no earlier than his 45th birthday, but it shall vest after 20 Years of Service, the last 10 years of which are continuous.

Amount and form of pension. A plan member's annual normal pension shall be equal to 50% of his Average Compensation. It shall be paid in monthly installments starting on the later of the member's 45th birthday or his actual retirement date and ending with the payment for the month in which his death occurs. However, postretirement death benefits may be available which provide for the continuation of such pension after the death of the plan member. (See § A286-5.) If the commencement of a plan member's normal pension is deferred by his continued employment (as an Employee) after his 45th birthday, the amount of his normal pension will not change, except to reflect changes in his Average Compensation. No optional or alternate payment arrangements are available for pensions described in this section or for disability or survivor pensions.

§ A286-4 Disability pension.

Conditions to qualify for disability pension. To qualify for a disability pension, a plan member must have suffered a disability (see below) which occurred during, or which was the direct result of, the performance of his duties as an Employee. Furthermore, he must have been a plan member at the time such duties were performed. However, a disability which occurs during, in connection with or while traveling to or from any sports or competitive event shall not be covered under this section.

Disability defined. For purposes of this section, disability shall mean the inability to engage in any substantial, gainful activity by reason of a medically determinable physical or mental impairment which can be expected to result in death or has lasted for a continuous period of at least 12 months. To the extent that additional clarification or guidance is needed in applying the preceding definition to determine whether a plan member qualifies for a disability pension, the Committee may look to the Federal Social Security Law and regulations thereunder with regard to social security disability benefits.

Procedures for determining a disability. In reaching its decision with respect to granting a disability pension, the Committee shall rely on a licensed physician it selects to interpret the medical evidence submitted in connection therewith.

Amount of disability pension. The disability pension shall commence on the first day of the 13th month following the onset of the plan member's disability and continue until the month of his death. The disability pension will equal the normal pension which would have been paid to the plan member had he remained an Eligible Employee until his 45th birthday and will be based on his Average Compensation as calculated prior the occurrence of such disability. There will be no actuarial reduction in the disability pension by reason of an earlier commencement date as compared to the normal pension.

Discontinuance of disability pension. If during any period prior to the plan member's 45th birthday it is determined by the Committee that his condition no longer satisfies the definition of disability, his disability pension may be discontinued by the Committee until the earlier of the date as of which his condition again meets the definition of disability or his 45th birthday, provided that he had completed 15 Years of Service prior to the occurrence of the disability.

§ A286-5 Survivor pension.

Conditions and payees. If a plan member dies before he has incurred a One-Year Service Break (see § A286-1B) and prior to the commencement of any benefits payable under § A286-3 or A286-4, a survivor pension shall be paid to and shared by the individual(s) named in one of the following survivor classes:

His Spouse, until the earlier of her remarriage or death.

If there is no surviving Spouse or if she subsequently dies or remarries, then the survivor pension will be paid to and split among the plan member's minor children who have not yet reached their 16th birthday. No survivor pension will be paid to any such child after his or her 16th birthday.

If, and only if, there is no surviving Spouse or surviving children under age 16 at the plan member's death, the survivor pension will be paid to or shared by the dependent parent or parents of the plan member. The same tests which are currently applicable with respect to claiming a dependent parent for federal income tax purposes shall be applied with respect to the survivor pension. The survivor pension shall cease at the death of the last surviving dependent parent.

Amount of survivor pension. The survivor pension shall be equal to the normal pension which would have been paid to the plan member had he remained an Eligible Employee until his 45th birthday, based on his Average Compensation determined immediately before his death. There will be no actuarial reduction in the amount of survivor pension due to an earlier commencement date as compared to the normal pension. The amount provided under this Subsection B shall be divided equally among all recipients currently entitled to share therein.

Survivor pension after benefits have commenced. If a plan member dies after payment of his normal pension or disability pension has commenced, a survivor pension shall be paid to, and shared by, the persons named in one of the survivor classes set forth in Subsection A above. The survivor pension described in this subsection shall be the same monthly amount as was being paid to the plan member immediately before his death, which shall be divided equally among all persons in the same survivor class who are entitled thereto.

§ A286-6 Funding.

Employer contributions.

Each year the Employer shall contribute to this plan 4% of the aggregate Compensation paid to plan members for such year. This contribution shall be paid into a Pension Fund (or "Fund"). The Fund shall be maintained as a segregated account by the City Treasurer, to be used solely for the accumulating and disbursing of moneys for benefits provided under the plan. The Fund shall be invested by the Pension Committee.

Any fines imposed upon a member of the lifeguard force, money given or donated to the Fund, money deducted from the salary of a member of the force because of absence or loss of time and half of any reward paid to the lifeguard force or any member thereof shall be added to the Pension Fund.

The Employer shall contribute an additional amount (supplemental contribution) each year so that the Fund will be sufficient to honor its benefit commitments. The supplemental contribution shall be determined upon the advice of the plan actuary retained by the Employer for this purpose, in accordance with generally accepted actuarial methods. The Employer may omit its supplemental contribution for a particular year if warranted by the actuarial soundness of the plan and if such omission is in accordance with the recommendations of the plan actuary.

Employee contributions. An amount equal to 4% of a plan member's Compensation plus any past service contributions required pursuant to § A286-2D shall be deducted from his Compensation and deposited into the Fund. Upon payment of any pension benefits (including disability and survivor pensions) by the plan, the Employee contribution account maintained in connection with such benefits shall be canceled and plan benefits based solely on the terms of the plan.

§ A286-7 Pension Committee.

Appointment. The Mayor of the Employer, with the advice and consent of the governing body thereof, shall appoint a Pension Committee (or "Committee") consisting of four individuals. One member shall be a superior officer of the lifeguard force, one a lifeguard and two citizens. For purposes of the preceding sentence, any active or former member of the lifeguard force shall be regarded as a lifeguard. Each member of the Pension Committee shall serve for a term of four years subject to Subsection B below and may be reappointed at the expiration of such four-year term. No member of the Pension Committee shall receive compensation for his services to the Committee, except for reimbursement for expenses incurred in connection therewith.

Removal or resignation. The Mayor may remove a member of the Pension Committee by giving written notice to the member. A member may resign from the Pension Committee by giving written notice to the Mayor.

Duties and responsibilities. The Committee shall be responsible for the administration of this plan in accordance with the terms and provisions herein contained. It shall possess such general authority and powers as are necessary for the discharge of its duties, including but not limited to the power to:

Construe, interpret and apply the plan and, in so doing, to correct any defect, omission or inconsistency as may be required to carry out what it reasonably believes to be the intent and objectives of the plan.

Decide all claims and questions with respect to plan membership, entitlement to benefits and the amount and commencement date thereof.

Approve and direct all disbursements from the Pension Fund, including benefit and expense disbursements.

(4)

Direct the investment of the Fund assets.

(5)

Establish rules, procedures and forms necessary for the administration of this plan.

Operating procedures. All acts and decisions of the Pension Committee shall be by majority (of those present) vote at any duly called meeting. All decisions shall be binding and conclusive, subject to a claims review procedure which might be established by the Committee. No Committee member shall vote or otherwise participate in a decision pertaining specifically to his own benefits from the plan. The members of the Committee accept no liability for any act or omission except those for which they are responsible under the terms of this plan.

§ A286-8 Amendments and termination.

Amendments. The Employer may amend this plan at any time by the same procedure used in connection with its establishment. Benefits payable to a plan member who has terminated his employment as an Employee shall be determined under the plan in effect when such employment terminated.

Termination. The Employer may terminate this plan by the same procedure used in connection with its establishment. However, if the plan is terminated before all benefits in pay status have been provided from the Fund, plan assets will remain in the Fund until it is determined, upon the advice of the plan actuary, that the Fund assets exceed the actuarial liability of plan benefits in pay status, at which time the surplus will be returned to the general fund of the City Treasury. Any benefit not yet in pay status but for which all of the qualifying conditions have been satisfied prior to the termination of the plan shall be regarded as a benefit in pay status.

Rules of construction.

If any provision hereof is subject to more than one interpretation or construction, it shall be interpreted or construed in such a manner as is consistent with the intent that this plan comply with the requirements of the laws of New Jersey.

If any provision of this plan is held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision, and the plan shall be construed and enforced as if such provisions had not been included.