A.
Plan established. A nonuniformed employees' pension
plan and trust (hereinafter referred to as the "plan") is hereby established
for the benefit of eligible nonuniformed employees of the Township.
B.
Effective date. The plan shall be effective as of
January 1, 1973.
C.
Approval of agreement. The agreement and declaration
of trust presently on file in the office of the Township Secretary,
together with any amendments thereto agreed upon by the Board of Supervisors,
is hereby approved, and the public officers of the Township are authorized
and directed to execute said agreement and declaration of trust on
behalf of the Township.
D.
Inspection of agreement. Said agreement and declaration
of trust shall remain on file in the office of the Township Secretary
and shall be open to inspection during usual business hours by nonuniformed
employees and residents of the Township.
E.
Payroll deductions authorized. The Township Secretary
is hereby authorized to establish a system of payroll deductions necessary
for the administration of the plan, if required.
[Amended 11-4-1991 by Ord. No. 208]
F.
Township contribution. Appropriation is hereby made
from the proper fund or funds of the Township in the necessary amount
to pay into the contribution fund for the administration of the plan.
G.
Administration by trustee. The plan shall be administered
by a corporate trustee. The trustee shall serve with compensation
as per the agreement of trust until his successor is duly appointed.
The trustee shall make and adopt rules and regulations for the efficient
administration of the plan subject to the approval of the Board of
Supervisors.
H.
Modifications to plan. The Board of Supervisors reserves
the right to amend, modify or wholly discontinue the plan at any time;
provided, however, that any such action shall not divest the previously
acquired rights of any participant in the plan.
The Township of Doylestown, situate in the County
of Bucks, Commonwealth of Pennsylvania, hereby creates an Employees'
Pension Plan and Fund for the purpose of providing retirement and
other benefits for eligible employees of this Township and their beneficiaries.
As used in this article, the following terms
shall have the meanings indicated:
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
The Administrative Committee appointed as provided in § 28-25 of this article.
With respect to each employee who became or who becomes a member thereof when first eligible to be a member and who thereafter remains a member continuously until such date as he becomes eligible to receive benefit payments hereunder, such employee's current period of continuous service as an employee, computed in years and months, with each completed calendar month counted as 1/12 of a year. With respect to all other employees becoming members hereof, "credited service" shall mean all of the period of the employee's current continuous service as an employee, computed in years and months as aforesaid, during which said employee was a member and made contributions pursuant to the provisions of § 28-19A hereof and with respect to which said contributions remain on deposit in the fund at the time of the employee's cessation of employment by the Township.
The following shall not be deemed to interrupt
the continuity of service, credited service or membership for any
of the purposes of this plan, notwithstanding the fact that no credited
service will be granted for such periods and that no member contributions
will be accepted with respect to such period:
Any period of absence during which said employee
receives his regular compensation.
Absence on leave granted by the Township for any cause for the period stated in such leave or if no period is stated, then for six months and any extensions the Township may grant, in writing. For the purposes of this Subsection A(2), the Township shall give equal treatment to all employees who are in similar circumstances.
Absence in the Armed Forces or government service
in a time of war or emergency, as defined by the Township, provided
that he returns to service with the Township within six months after
his discharge or release to inactive duty (whichever shall occur first)
or if he does not return to such service within said six-month period
because of a disability incurred while in the Armed Forces of the
United States, if he returns to service with the Township upon termination
of such disability, provided that within said six-month period he
indicates his intention of returning to such service and furnishes
satisfactory proof to the Committee that his disability prevents him
from returning within said period, and provided that he continues
to furnish such proof at such times as may be requested by the Committee
until he returns.
Continued employment by the Township other than
as an employee, provided that, for the purposes hereof, service rendered
as an independent contractor or as an employee of another employer
shall not be deemed to be "continued employment by the Township."
An employee shall receive credit for vesting
purposes for any period of employment with the Township as a uniformed
police officer as if that period of service had been as a member and
participant in the nonuniformed pension plan. This provision, however,
shall not apply if the employee shall have vested pursuant to the
uniformed police pension plan then in place in the Township prior
to his participation in the nonuniformed pension plan.
[Added 7-16-1996 by Ord. No. 251]
Any employee whose credited service is interrupted under circumstances other than those specified above shall forfeit all credited service prior to the date of his termination and if subsequently rehired shall requalify for membership as though he had never been an employee; provided, however, that this provision shall not be construed to deprive any member of any vested interest he may have in connection with such period of prior employment pursuant to the provisions of § 28-22. Any member who ceases to make contributions pursuant to the provisions of § 28-19A while being eligible to make such contributions shall be treated, for purposes of the plan, as though his employment by the Township was terminated on the date he ceased making contributions. If such employee thereafter again becomes a member, he shall be treated, for all purposes of the plan, as a new employee, except that his credited service thereafter shall be limited to the period during which such employee makes contributions as a member hereof.
January 1, 1973.
Any person in the full-time employ of the Township whose
customary employment by the Township is for not less than 35 hours
per week. Such employment shall be permanent; any person hired on
a temporary or seasonal basis shall not be eligible to participate
in this plan.
[Amended 10-7-2003 by Ord. No. 314]
The average actual monthly earnings of the employee shall
be the average of the employee's three highest years of gross annual
salary as reported on the employee's W-2 form, including amounts not
then includible in federal W-2 wages by reason of the application
of Internal Revenue Code § 414(h)(2) (relating to employee
contributions to governmental plans that are picked up by the employing
unit and thus treated as employer contributions), although they may
otherwise be shown on the employee's W-2 form.
[Amended 1-24-1989 by Ord. No. 180; 10-7-2003 by Ord. No.
314; 8-16-2011 by Ord. No. 362]
All assets held by the trustee under the trust agreement.
The first day of the month coincident with or next following
the date on which the member attains 60 years of age.
[Amended 7-16-1996 by Ord. No. 251; 10-7-2003 by Ord. No.
314]
The Employees' Pension Plan of the Township as herein set
forth and as the same may hereafter be amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31. The first plan year is
the period from January 1, 1973, through December 31, 1973.
Any member who is absent from the employ of the Township for any reason set forth in Subsection A(1), (2) or (3) of the definition of "credited service" above or who, by reason of a change in the conditions of his employment as set forth in Subsection A(4) of such definition, is ineligible to continue making the contributions required pursuant to § 28-19A hereof and who has not withdrawn or otherwise received a return of contributions he made to this plan or the fund.
Any condition which qualifies the member for disability pension
benefits from the federal social security disability pension benefits.
The Township of Doylestown, Bucks County, Commonwealth of
Pennsylvania.
The contract between the Township and the trustee establishing
the terms by which and under which the fund is invested, distributed,
accounted for and terminated, as the same now exists and as it may
hereafter be amended.
Any corporate fiduciary appointed by the Board of Supervisors
of the Township to serve in that capacity under the trust agreement.
A.
Any employee who was under 56 when he became an employee at or after his most recent date of hire may become a member on the first day of the month coincident with or next following the date upon which he has completed six months of continuous service as an employee by completing such forms and providing such data as are required by the Committee for application for membership and by agreeing to make the contributions required by § 28-19A hereof in such manner as is prescribed by the Committee.
[Amended 10-1-1985 by Ord. No. 138]
B.
Any employee eligible for membership pursuant to Subsection A hereof who does not become a member when first eligible may, nevertheless, become a member at any time thereafter while still an employee, provided that no such person shall become a member after attaining age 56.
D.
Military buyback. A member, at his/her option, may
purchase credit for military service subject to all of the following
conditions:
[Added 2-1-2000 by Ord. No. 283]
(1)
The total credit which may be purchased shall not
exceed five years.
(2)
The military service must have been performed by the
member prior to any employment by the member with the Township of
Doylestown.
(3)
The military service must be for full-time active
duty service, and the purchase option shall not be available to members
serving in the National Guard or Reserve Forces on a part-time basis,
even if such service included active duty service.
(4)
The amount due for the purchase of credit for military
service shall be computed by applying the average normal cost rate
for the nonuniformed pension plan as certified by the Public Employee
Retirement Study Commission, but not to exceed 10%, to member's average
annual rate of compensation over the first three years of municipal
service and multiplying the result by the number of years and fractional
part of a year of credible nonintervening military service being purchased
together with interest at the rate of 4 3/4% compounded annually
from the date of employment as a full-time employee of the Township
(or initial entry into the plan) to the date of payment.
[Amended 8-1-2000 by Ord. No. 290]
(5)
The member may not exercise the option to purchase
military service credit if the member is entitled to receive eligible
to receive, or in the future is or may receive retirement benefits
for such service under a retirement system administered or wholly
or partially paid for by any other governmental agency, with the exception
of a member eligible to receive or receiving military retirement pay
earned by a combination of active duty and nonactive duty with the
Reserve or National Guard component of the Armed Services, which retirement
pay is payable only upon the attainment of a specified age and period
of service under 10 U.S.C. Chapter 67, as amended.
A.
Member contributions.
[Amended 10-1-1985 by Ord. No. 138; 7-19-2011 by Ord. No.
361; 8-16-2011 by Ord. No. 362]
(1)
In
general. Effective January 1, 2011, each member of the plan shall
contribute to the plan each pay period an amount equal to 5% of his/her
gross compensation for the pay period via payroll deduction.
(2)
Uniformed
service.
(a)
In general. No member shall be required to make any contributions to the plan during any period of service in the uniformed services of the United States. If such a member returns to employment with the Township, he/she shall contribute to the plan an amount equal to the rate in effect under Subsection A(1) above for the period of uniformed service multiplied by the compensation the member would have received for such period but for the uniformed service (or, if that amount is not reasonably certain, on the basis of the member's average rate of compensation during the twelve-month period immediately preceding the uniformed service, or, if shorter, the period of employment immediately preceding the uniformed service). Where more than one rate is in effect during the period of uniformed service, a calculation shall be performed for each portion of the period of uniformed service governed by a separate rate, and the total required contribution shall be equal to the sum of such calculations. The participant may make an irrevocable election to make the contribution by a series of payroll deductions.
(3)
Treatment of member contributions as employer pickup contributions. Effective for service on or after August 22, 2011, member contributions that are to be made under this § 28-19A via payroll deduction, although designed as member contributions, shall be "picked up" and paid to the plan and trust by the Township on behalf of the member in lieu of contributions by the member in order to be treated as employer contributions under Internal Revenue Code § 414(h)(2). The amount of such contributions shall be deducted from the member's paycheck as a reduction in the member's salary/wages. The member shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the Township to the plan. This Subsection A(3) shall be construed to include all requirements necessary to satisfy the provisions of Internal Revenue Code § 414(h)(2). Under current law, such contributions are not subject to federal income tax at the time of contribution, but only at the time when plan benefits are paid. However, these amounts are considered wages subject to current Federal Insurance Contributions Act (FICA) taxation and are also considered current income for Pennsylvania state and local income taxes.
(4)
Voluntary
contributions. No voluntary member contributions beyond those required
by this § 29-19A may be made to the plan by any member.
A.
Each member shall be required to retire on his normal retirement date, and if he became a member when first eligible and thereafter continuously remained a member, he shall be entitled to receive a monthly pension commencing upon said normal retirement date and ending on the first day of the month following the month in which his death occurs equal to 50% of the member's final average earnings, as defined in § 28-17 hereof. Each member so retiring shall be entitled to receive the benefit hereinabove described with a further understanding that said benefit shall be reduced by 1/25 for each year of credited service less than 25 years.
[Amended 1-24-1989 by Ord. No. 180)
B.
Early retirement.
(1)
Deferred pension. Any member who has completed 15 years of continuous credited service and who has attained age 55 shall be entitled to retire as of the first day of any month prior to his normal retirement date. The date on which such member retires shall be known as his "early retirement date." Any member retiring on his early retirement date shall' be entitled to a monthly pension benefit commencing at his normal retirement date computed pursuant to the provisions of Subsection A hereof and multiplied by a fraction, the numerator of which is the lesser of the member's actual credited service to his early retirement date or 25 and the denominator of which is 25.
(2)
Immediate or early pension. A member who retires, pursuant to this Subsection B, may elect to have his pension benefits commence on his early retirement date or at any time thereafter prior to his normal retirement date. In the event that benefits are payable prior to normal retirement date, the benefits determined in accordance with Subsection B(1) hereof will be reduced by 1/180 for each month of the first 60 months by which the benefit commencement date Precedes normal retirement date and by 1/360 for each month of the next 60 months by which the benefit commencement date Precedes normal retirement date.
C.
Postponed retirement. At the discretion of the Township,
an employee may be allowed to continue as an employee beyond his/her
normal retirement date. In such case, the employee shall remain a
member of the plan until he/she actually retires or ceases to be an
employee. As an incentive for an employee to continue employment beyond
his/her normal retirement date, the benefit to be conferred upon a
retiring member shall be increased so that, for every complete year
of service beyond 25 years of service that an employee serves as an
employee of the Township, he/she shall receive an additional $100
per month up to a maximum of $500 per month, which would be five additional
complete years of service beyond 25 years.
[1]
Editor's Note: The provisions of this ordinance
are applicable to “all persons who retire subsequent to 1-1-2007.”
D.
Disability retirement.
(1)
Should any member suffer total disability after the
completion of 10 years of credited service, he shall be entitled to
receive, beginning six months after the date of the onset of such
total disability and continuing thereafter during the remainder of
such period of total disability, a pension benefit equal to the same
benefit as paid for normal retirement but in any event not less than
$300 per month.
[Amended 12-15-1987 by Ord. No. 169]
(2)
The Committee reserves the right to require disabled
members to present evidence of total disability and of the continuance
of such condition from time to time and further reserves the right
to require members to submit to medical examinations from time to
time by one or more licensed medical practitioners selected by the
Committee as a precondition to the continued payment of benefits.
E.
Provisional benefit guaranty. Subject to the member's right to request an optional mode of pension benefit providing otherwise, pursuant to the provisions of § 28-23 hereof and the Committee's right to grant that request, the normal form of pension benefit to be paid pursuant to this § 28-20 is an annuity commencing on the date specified and ending on the first day of the month in which the death of the member occurs, with an additional benefit to be paid to the member's designated beneficiary as promptly as practicable after the retired member's death equal to the excess, if any, of the sum of the member's credit at the time of the commencement of his pension benefits over the sum of the benefits paid to the member to the date of his death.
F.
Post-retirement cost-of-living adjustments. Each member
receiving retirement benefits shall receive a cost of living increase
on an annual basis, but such annual increase shall not exceed the
percentage increase in the consumer price index from the previous
year; and provided, further, that in no case shall the total pension
benefit exceed 75% of the salary for computing benefits; and further,
provided that the total cost-of-living increase shall not exceed 3%
in any one year and the aggregate increase in the cost-of-living during
the entire time benefits are paid shall not exceed 30%. The cost-of-living
provisions as set forth in this section shall be effective as of January
1, 1995, but the maximum cost-of-living adjustment shall be fixed
at 10% from January 1, 1995, through January 1, 1999, and subsequent
to January 1, 1999, the maximum aggregate increase shall not exceed
30% but in any event the cost-of-living provisions as set forth herein
shall apply only to members retiring thereafter or who are retired
or on disability as of the effective date of this provision.
[Added 7-16-1996 by Ord. No. 251; amended 2-1-2000 by Ord. No.
283]
A.
In the event of the death of any member before he is entitled a pension hereunder, his beneficiaries, as determined pursuant to Subsection E hereof, shall be entitled to receive an amount equal to the sum of Subsection A(1) and (2) where:
(1)
Is the sum of all contributions hereto made by the
member after the effective date; and
(2)
Is the interest, computed at 4% per annum, compounded
annually, and applied to the balance of member contributions and interest
thereon standing to the credit of the member as of the beginning of
each plan year and remaining on deposit through the end of such plan
year, from the effective date to the first day of the plan year in
which the member's death occurred.
B.
In the event of the death of any member after the first date on which he became eligible for benefits pursuant to the provisions of § 28-20 hereof but prior to the actual payment of such benefits, the member's death benefit shall be as set forth in Subsection A above; provided, however, that in the event that the member is survived by his or her spouse, for the purpose hereof the member will be deemed to have retired pursuant to the provisions of § 28-20 hereof on the first day of the month in which his death occurred and will be deemed to have selected with the consent of the Committee a joint and survivor annuity providing for his surviving spouse a monthly pension benefit equal to 100% of the monthly benefit to which the member would have been entitled under such election as of that date, which benefit shall be paid for the remainder of the life of said spouse. In the event of the death of a member's surviving spouse prior to the receipt of the amount that would have been payable pursuant to Subsection A hereof, had the member not been survived by said spouse, the difference between the amount actually paid to the spouse pursuant to this Subsection B and the amount that otherwise would have been paid pursuant to Subsection A will be paid as a lump-sum to the estate of said spouse.
C.
Should an employee die after ceasing to make contributions as a member but prior to the receipt of a refund, pursuant to § 28-22A, or receipt of benefits, pursuant to § 28-22B, his designated beneficiary will be entitled to a death benefit equal to the amount that would have been distributed to the former member had he opted, pursuant to § 28-22A or B hereof, to receive a refund of his contributions, plus interest, on the last business day immediately preceding the date of his death.
D.
No death benefit will be paid in the event of the death of a member after commencement of retirement benefits to him except as may be provided in any actuarially equivalent optional mode of benefit payment that may then be in effect with respect to such member, pursuant to § 28-23 hereof.
E.
Any benefits payable pursuant to Subsections A and B hereof shall be paid to the member's beneficiary as designated by the member on forms provided by the Committee and as filed with the Committee. Should a member fail to designate a beneficiary or not be survived by his designated beneficiary, benefits payable hereunder will be paid to the member's surviving spouse. In the event that the member is not survived by his spouse or such spouse cannot be located, such benefits shall be paid to the member' natural and adopted children, per stirpes. In the event that the member is survived by none of the above-mentioned persons or classes, the benefits payable hereunder shall be paid equally to the member's parents or the survivor thereof, and should the member be survived by neither of his parents, then the benefits payable hereunder shall be paid to the member's estate.
A.
Every member is at all times fully vested in the contributions he made prior to the amendment effective date and thereafter pursuant to § 28-19A hereof. If a member leaves the employ of the Township or ceases to be a contributing member or a suspended member, he shall be entitled to a refund of all contributions made by him and vested in him as aforesaid, plus interest thereon, the interest to be the amount of interest standing to his credit as of the first day of the plan year in which such refund occurs, computed at the rate of 4% per annum, compounded annually, and calculated with respect to member contributions in such fashion as to disregard fractional plan years during which the amounts of such member contributions may have been held in the fund.
B.
Options.
(1)
Any member with five or more years of credited service at the time he becomes eligible for a refund pursuant to Subsection A above may elect to leave the entire amount, but not less than such entire amount to which he would otherwise have been entitled pursuant to Subsection A, in the fund until he attains such age as would entitle him to benefits, pursuant to the provisions of § 28-20A or B hereunder. In the event that the member so elects, he shall receive, commencing at his normal retirement date, a retirement benefit computed pursuant to § 28-20A, multiplied by a fraction, the numerator of which is the lesser of the member's number of years of credited service completed by him to the date of his termination of employment or 25, and the denominator of which is 25, multiplied by the vesting factor set forth in the table below:
[Amended 1-24-1989 by Ord. No. 180]
|
Years of Completed Service at Cessation
of Member Contribution
|
Vesting Factor
|
(Vested Percentage)
| |
|---|---|---|---|
|
Less than 5 years
|
.00
|
(0%)
| |
|
5 years of consecutive service
|
100%
|
(100%)
| |
|
An employee shall become one-hundred-percent
vested in the plan when he has been employed for five consecutive
years.
| |||
(2)
For the purposes of this Subsection B, years of credited service shall refer only to the member's period of most recent plan membership, including periods when the member was a suspended member, and shall not, in the case of a retired person or one who at any time ceased to be a member, include any prior period of credited service.
C.
Any member who opted to exercise his privileges pursuant to Subsection B may, nonetheless, reassert his privileges for immediate payout, as provided in Subsection A, at any time prior to the receipt of any pension benefits. Any employee electing to assert his right to refund and interest at any time, pursuant to Subsection A, shall immediately forfeit and waive all right to the pension benefits provided under the options set forth in Subsection B and accruing with respect to years during which the member made contributions to the plan.
D.
Notwithstanding any other provision of this plan,
any member who ceases to be an employee by reason of discharge for
cause, which includes willfully damaging the Township's property,
proven or admitted dishonesty or stealing or conviction of a felony,
or who, after having terminated his service as an employee prior to
normal retirement date, is proven or admits to having committed an
act that was grounds for discharge for cause hereunder shall be divested
of all rights under this plan and shall be entitled only to a refund
of his contributions without interest thereon.
B.
The normal form of all benefits payable hereunder shall be a pension for the life of the member commencing on the date specified and ending with a payment made on the first day of the month in which the member dies, subject, however, to the payment of a death benefit calculated pursuant to § 28-20E in the case of those whose aggregate pension payments are less than the sum of their member contributions and interest standing to their credit at the time their pension benefit payments commenced.
C.
In lieu of the pension benefit payout mode set forth in Subsection B, the Township, in its discretion, may permit the member to select an optional form of pension from any of the following actuarial equivalents:
[Amended 10-7-2003 by Ord. No. 314]
(1)
A reduced pension for the life of the member commencing
upon the date specified and guaranteed for a period certain of five,
10 or 15 years, with payments to be made to the member's designated
beneficiary after the death of the member for the balance of the period
certain specified either in equal monthly installments or commuted
in value and as a lump-sum, as determined by the Township.
(2)
A joint and survivor pension providing for continuation
of monthly pension benefits after the death of the member to the member's
surviving spouse for the remainder of said spouse's life in an amount
equal to 50% or 100% of the benefit being received by the member at
the time of his death.
(3)
Such other actuarially equivalent mode of payment
as is permitted by the Township and is consistent with rules and regulations
of the Internal Revenue Service then in effect.
D.
Pension benefits may be paid directly by the trustee
or by purchase of annuity contracts which may be held by the trustee
or which may be assigned by the trustee to the member, provided that
such contracts are, in the hands of the member, nonassignable and
noncommutable.
E.
The following rules, and such others as may from time
to time be promulgated by the Township, shall be applicable to the
selection of optional modes of benefit payout:
[Amended 10-7-2003 by Ord. No. 314]
(1)
When the member requests an optional form of pension
and the same is granted by the Township, the option shall become effective
on the date that benefit payments are to commence.
(2)
The amount of each pension payment to a member who
has requested an optional form of pension shall be the actuarial equivalent
of the amount of his normal form of pension, determined as of the
effective date of the option on the basis of the actuarial assumptions
last adopted by the Township for this purpose.
(3)
To request an optional form of pension, a member must complete the appropriate request form provided for this purpose at least six months before his/her benefit commencement date, unless the Township waives this time requirement. If the member is married and dies prior to making an election, it will be assumed that the member would have chosen a one-hundred-percent actuarial equivalent joint benefit. It is understood that this subsection would apply to a member who is eligible for a vested benefit pursuant to § 28-22.
(4)
If the joint annuitant designated by a member under
the joint and survivor option dies before the effective date of the
option, the option shall become void. The rights of all persons shall
then be the same as if an option had never been requested by the member.
(5)
A member may not revoke his option, change his joint annuitant, change the effective date of his option or change the provisions of his election in any other way unless the Township agrees thereto, and any such revocation or change shall only be considered before the effective date of the option. Consent of the joint annuitant or designated beneficiary is not required for any such revocation or change. The foregoing shall not preclude any change in beneficiary designation by a member in connection with a period certain annuity or the refund future of any other annuity pursuant to Subsections B and C(2) above.
A.
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 28-20, 28-21 and 28-22, in accordance with instructions received from the Committee; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose. Neither the trustee nor the Township in any way guarantees the sufficiency of the fund to make such payments nor assumes any liability for the insufficiency thereof.
B.
The Township or the Committee may employ an actuary,
investment advisors, counsel or other professional consultants from
time to time in connection with the operation of the fund or this
plan. If hired by the Township, such persons or entities shall be
compensated by the Township, at such rates as may be agreed upon by
the Board of Supervisors of the Township. If hired by the Committee,
such persons or entities shall be compensated by the Township if agreed
by the Board of Supervisors, but shall otherwise be compensated by
the Committee directly from the fund.
C.
The trustee shall make an annual determination of
the fair market value of the fund as of the anniversary date and as
of such additional dates as the Committee may direct. The fair market
value of the fund shall be reported to the actuary who shall calculate
the amount to be contributed to the fund by the Township with respect
to each plan year in accordance with the assumptions most recently
adopted by the Committee for the purpose of such computations; provided,
however, that the liability of the Township to make such contributions
is subject to all of the conditions and limitations set forth elsewhere
in this plan.
[Amended 2-1-2000 by Ord. No. 283; 10-7-2003 by Ord. No.
314]
A.
The pension plans of the Township, including the Uniformed and Nonuniformed
plans, shall be administered by the Township Board of Supervisors.
To assist the Township Board of Supervisors in the administration
of the plans, a Pension Advisory Committee shall be established, which
shall consist of 10 persons. The 10 members shall include: one member
of the Board of Supervisors, who shall be appointed at the reorganization
meeting of the Board of Supervisors held in January of each year and
shall serve for a one-year period and shall not be a voting member
of the Committee; the Township Manager, who shall be a nonvoting member
of the Committee; the Township Finance Director, who shall be a nonvoting
member of the Committee; two persons appointed by the Board of Supervisors,
one of whom shall be a representative of the Police Department, whose
name shall be recommended by the Police Department for inclusion in
the Committee, and one person shall be recommended by the Nonuniformed
Pension participants for inclusion in the Committee. In addition thereto,
five persons shall be appointed by the Board of Supervisors, who shall
not include members of the Board of Supervisors or the representatives
of the Uniformed and Nonuniformed Employees or be employees of the
Township, but rather shall be persons appointed by the Board of Supervisors,
three of whom must be residents of Doylestown Township. The five additional
persons noted herein, who are appointed by the Board of Supervisors,
shall have expertise and/or experience and/or training with respect
to the administration of pensions, actuarial matters, and investments,
or in any related field which would be beneficial to the Township
with respect to the management of its pension funds. The persons appointed
by the Board of Supervisors, who are not supervisors and/or employees
of the Township, shall serve for three-year terms. Initial appointments
shall be staggered such that one person shall be appointed to a one-year
term, two persons shall be appointed to a two-year term, and two persons
shall be appointed to a three-year term. Each member shall be appointed
to serve without compensation. The five individuals appointed, who
are not employees and/or supervisors, together with the two employees
of the Township appointed by the Board of Supervisors, who are representatives
of the Police Department and are nonuniformed employees, shall be
the voting members of the Committee. The member of the Board of Supervisors,
the Finance Director, and the Township Manager shall be nonvoting
members of the Committee. In addition to the 10 members, the Committee
shall have a secretary, who shall be a secretary of the Township.
The Committee shall recommend the adoption of rules and regulations
and investment strategies for the administration of the pension plans
to the Board of Supervisors of the Township. Any member of the Committee
may resign by filing a written notice with the Township. The vacancy
shall be filled promptly by the Township Board of Supervisors.
[Amended 3-20-2018 by Ord. No.
387]
B.
The Committee shall keep all data, records and documents pertaining to the writing of the plan, but all documents shall be executed by the Board of Supervisors so as to carry out the provisions of the plan. The Committee shall, with the approval of the Board of Supervisors, provide all such data, records and documents to the trustee, the actuary and any other professional whose services are employed pursuant to § 28-10B noted above.
C.
The Committee shall make recommendations to the Board
of Supervisors concerning interpretation of the plan and shall make
recommendations to the Board of Supervisors concerning the determination
of any questions of fact arising out of the plan and shall make recommendations
to the Board of Supervisors in all matters required under the plan
or the trust agreement and the construction thereof. The Committee
may make further recommendations to the Board of Supervisors concerning
correcting any defect or supplying any omission or the reconciliation
of any inconsistency in such manner and to such extent as it shall
deem it appropriate to carry the plan into effect. The Committee shall
make recommendations uniformly with respect to matters coming before
it concerning employees in similar circumstances.
D.
The Committee shall serve without bond except as may
be otherwise required by law and without compensation for its services
as such. All expenses of the Committee shall be paid by the plan.
E.
The members of the Committee, and each of them, shall
be free of all liability for any act or omission except by willful
misconduct or gross negligence, and each of them be fully indemnified
by the Township against all judgments not involving findings of their
respective personal or collective willful misconduct or gross negligence
and against all costs, including counsel fees, incurred in defense
of actions brought against them.
F.
The Committee shall make available to members, retired
members and terminated members and to their beneficiaries, for examination
during business hours, such records as pertain to the person examining.
G.
To enable the Committee to perform its functions,
the Township shall supply full and timely information to it on all
matters relating to the pay of all members, their retirement, death,
termination of employment and such other pertinent facts as the Committee
may require; and the Committee shall advise the trustee of such of
the foregoing facts as may be pertinent to the trustee's administration
of the trust and shall give proper instructions to the trustee for
the carrying out of the purposes of this plan and shall make such
recommendations to the Board of Supervisors as to the proper instructions
to be given to the trustee for the carrying out of the purposes of
this plan.
H.
The Committee shall recommend to the Board of Supervisors
the enactment of such rules and regulations for the conduct of its
business and for the administration of the plan as it may consider
desirable, provided that the same shall not be in conflict with any
of the provisions of the plan. All actions of the Committee in making
recommendations to the Board of Supervisors shall be taken at meetings
at which at least five members shall be present. Written minutes shall
be kept of the meetings and actions of the Committee. No member of
the Committee who is a member of the plan shall vote on any matter
affecting his benefits separately from the benefits of all other employees.
A.
It is the expectation of the Township that it will
continue this pension plan indefinitely and will from time to time
contribute to the fund such amounts as may be needed to provide the
benefits set forth in the plan but continuance of the plan is not
assumed as an obligation of the Township, and the right is reserved
by the Township at any time to reduce, suspend or discontinue its
contributions hereunder.
B.
The Township assumes no obligation or responsibility
with respect to the operation of the plan and does not guarantee the
payment of the benefits therein provided for members of the plan.
The Township shall have no liability with respect to the administration
of the fund held by the trustee, and payments made under the provisions
of any ordinance establishing, amending or maintaining the plan shall
not be a charge on any other fund in the treasury of the Township
or under its control, save the Employees' Pension Fund herein provided
for.
C.
Nothing contained in the plan shall be held or construed
as a contract or guaranty of employment nor to create any liability
upon the Township to retain any person in its service. The Township
reserves its full right to discontinue the services of any person
without any liability except for salary or wages that may be due and
unpaid, whenever, in its judgment, its best interests so require,
and such discontinuance shall be without regard to this plan.
A.
The Township may amend, curtail or terminate this
plan at any time; provided, however, that no amendment affecting the
trustee shall be made without its consent (other than an amendment
having the effect of terminating the plan) nor shall any amendment
be made which will in any manner divert any part of the fund to any
purpose other than the exclusive benefit of members or their beneficiaries
(except that upon termination such diversion may be made after all
of the fixed and contingent liabilities to members and their beneficiaries
have been met) nor shall any amendment be made at any time which will
in any manner divest any benefit then vested in a member.
B.
In the event of termination of this plan, the trustee,
upon written instructions from the Committee, shall allocate the assets
then remaining in the fund, to the extent that such assets are sufficient,
to members and retired members in the following order of precedence:
(1)
To members and retired members in an amount equal
to their respective contributions, reduced in the cases of retired
members by any prior distributions made to them.
(2)
To provide benefits due retired members in the proportion
that the pension earned of each such member bears to the total pensions
earned for all such members.
(3)
The remaining assets, if any, to each of the remaining
members in the proportion that his pension credits earned to the date
of termination bears to the total pension credits so earned for all
such remaining members.
C.
After allocation of the funds, the Committee shall
determine whether to operate the fund as the source of whatever payments
the money so allocated will provide or to purchase immediate or deferred
annuities from an insurance company in whatever amounts the money
so allocated will provide.
D.
If the plan is discontinued within 10 years of the effective date or if during that period payments to date do not equal the current normal cost of benefits provided hereunder, no member or former member whose presumptive normal retirement benefit as of the effective date exceeds $1,500 annually and who on the effective date was one of the 25 highest paid employees of the Township shall receive any pension or other payment greater than would be provided by the larger of $20,000 or 20% of his actual average annual compensation after the effective date [or $10,000 if that be less], multiplied by the number of years elapsed thereafter. If the amount allocable to any person under Subsection B is more than it permitted by this Subsection D, the excess shall be allocated as provided in Subsection B to persons not limited by this Subsection D. If there are no persons not limited by this Subsection D or if all accrued benefits for persons not so limited have been fully funded and secured by the purchase of one or more annuity contracts covering all such persons, the excess then may be applied to the funding of benefits for persons subject to the limitations hereof.
A.
No benefit under this plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge
or encumbrance nor to seizure, attachment or other legal process for
the debts of any member or member's beneficiary.
B.
Any person dealing with the trustee may rely upon
a copy of this plan and any amendments thereto certified to be a true
and correct copy by the trustee.
C.
Anything heretofore contained in this plan to the
contrary notwithstanding, it is the intention of the Township that
any action herein provided to be taken by the trustee shall be taken
only in accordance with written instructions of the Committee given
in such detail as to preclude the exercise by the trustee of discretion
in the performance thereof.
D.
In no circumstance, whether upon amendment or termination
of this plan or otherwise, shall any part of the fund be used for
or diverted to any purpose other than the exclusive benefit of members
or their beneficiaries until all of the actuarial obligations to such
members or members' beneficiaries have been met.
E.
If the Committee deems any person incapable of receiving
benefits to which he is entitled by reason of minority, illness, infirmity
or other incapacity, it may direct the trustee to make payment directly
for the benefit of such person or to any person selected by the Committee
to disburse it, whose receipt shall be a complete acquittance therefor.
Such payment shall, to the extent therefor, discharge all liability
of the Township, the Committee, the trustee and the fund.
F.
In the case of all provisions utilized herein, the
singular shall include the plural and the masculine shall include
the feminine.
G.
Should any provision of this plan be determined to
be void by any court, the plan will continue to operate and, to the
extent necessary, will be deemed not to include the provision determined
to be void.
H.
Headings and captions provided herein are for convenience
only and shall not be deemed part of the plan.
I.
This plan shall be construed and applied under the
laws of the Commonwealth of Pennsylvania where not in conflict with
federal laws which shall otherwise prevail.
[Added 6-1-2010 by Ord. No. 356]
A.
DROP
DROP ACCOUNT
Definitions. As used in this section, the following terms shall have
the meanings indicated:
Deferred Retirement Option Plan.
A separate account created to accept a DROP participants'
monthly pension check while a DROP participant.
B.
Eligibility. Effective on January 1, 2010, nonuniformed employees
who have not retired prior to the implementation of the DROP program
may enter into the DROP on the first day of any month following completion
of 25 years of credited service and attaining the age of 60.
C.
Written election. A nonuniformed employee electing to participate
in the DROP must complete and execute a DROP option form prepared
by the Township, which shall evidence the member's participation
in the DROP. The form must be signed by the member and notarized and
submitted to the Township prior to the date on which the member wishes
the DROP option to be effective. The DROP option notice shall include
a notice to the Township, by the member, that the member shall resign
from employment with the Township effective on a specific date (the
"resignation date"). In no event shall the resignation date be less
than 12 months or more than 48 months from the execution of the DROP
option form. An employee shall cease to work as an employee on the
employee's resignation date, unless the Township terminates or
honorably discharges the employee prior to the resignation data. A
member may elect in writing to terminate participation in the DROP
program any time up to six months before the previously selected resignation
date without penalty. Once a member terminates participation in the
program, then the member is barred from any future participation in
the program. In addition, all retirement documents required by the
Nonuniformed Employees' Pension Administrator must be filed and
presented to the Township for approval of the retirement and payment
of pension benefits.
D.
Limitation on pension accrual. After the effective date of the DROP
option, a member shall no longer earn or accrue additional years of
continuous service for pension purposes.
E.
Benefit calculation. For all retirement fund purposes, continuous
service of a member participating in the DROP shall remain as it existed
on the effective date of commencement of participation in the DROP.
Service thereafter shall not be recognized or used for the calculation
or determination of any benefits payable by the Nonuniformed Employees'
Pension Plan. The average applicable compensation of a member for
pension calculation purposes shall remain as it existed on the effective
date of commencement of participation in the DROP. 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. The
pension benefit payable to a member shall remain unchanged even if
the pension plan improvements occur after the election of the DROP
option but prior to the employee's termination of employment.
F.
Payments to the DROP account. The monthly retirement benefits that
would have been payable had a member elected to cease employment and
receive a normal retirement benefit shall, upon the member commencing
participation in the DROP, be paid into the separate account established
to receive the participant's monthly pension payments pursuant
to Act 44. This account shall be designated the "DROP trust account."
Interest shall be compounded and credited monthly at the accrual rate
earned by the DROP participant account but shall not be less than
0% nor more than 4.5%.
G.
Accrual of nonpension benefits. After an employee elects to participate
in the DROP program, all other contractual benefits shall continue
to accrue, with the exception of those provisions relating to the
Nonuniformed Employees' Pension Plan.
H.
Payout. Upon the termination date set forth in a member's DROP
option notice or such date as the Township separates the member from
employment, the retirement benefits payable to the member, or the
member's beneficiary, if applicable, shall be paid to the member
or beneficiary and shall no longer be paid to the member's deferred
retirement option trust account. Within 45 days following the termination
of a member's employment pursuant to his/her participating in
the DROP program, the balance in the member's DROP account shall
be paid to the member in a single lump-sum payment or, at the member's
option, in any fashion permitted by law.
I.
Disability during DROP. If a member becomes incapacitated during
his or her participation in the DROP, that member shall continue to
participate in the DROP program as if fully employed. However, notwithstanding
any other provision in this subsection, if a member is disabled and
has not returned to work as of the date of his or her required resignation,
then such resignation shall take precedence and said employee shall
be required to resign. Nothing contained in this plan shall be construed
as conferring any legal rights upon any employee or other person to
a continuation of employment, nor shall participation in the DROP
Program supersede, or limit in any way, the right of the Township
to sever an employee's employment based upon an inability to
perform his or her full duties. If such person is terminated while
participating in the DROP program, he or she shall, upon termination,
receive the DROP payments that had accrued to the date of his or her
termination of employment.
J.
Death. If a DROP member dies before the DROP account balances are
paid, the participant member's legal beneficiary shall have the
same rights as the member to withdraw the account balance as of the
date of death.
K.
Forfeiture of benefits. Notwithstanding an employee's participation
in the DROP, an employee who is convicted of, or pleads guilty to,
engaging in criminal misconduct which constitutes a "crime related
to public office or public employment," as that phrase is defined
in Pennsylvania's Pension Forfeiture Act, 43 P.S. § 1311
through 1314, shall forfeit his or her right to receive a pension,
including any amounts currently deposited in the DROP account. In
such a case, the member shall only be entitled to receive the contributions,
if any, made by the member to the fund, without interest.
L.
Account manager. The Township shall select an investment manager
to administer the DROP accounts. The Township shall not be responsible
for any investment losses incurred in the plan or for the failure
of an investment to earn a specific or expected return or to earn
as much as any other opportunity, whether or not such other investment
opportunity was offered or available to participants in the plan.
M.
Cost of management for DROP program. The Township agrees that all
costs or fees associated with the management of the DROP accounts
shall be paid directly from the Nonuniformed Employees' Pension
Plan Fund and not by the Township.
N.
Amendment. Any amendments to the DROP Ordinance shall be consistent
with the provisions covering deferred retirement option plans and
shall be binding upon all future DROP participants and upon all DROP
participants who have balances in their deferred retirement option
accounts. The DROP may only be amended by a written instrument.
O.
Construal of provisions. An employee's election to participate
in the DROP program shall in no way be construed as a limitation on
the Township's right to suspend or terminate the employee for
just cause or to sever the employee's employment because of a
physical or mental inability to perform his or her duties.
