The plan does not provide for automatic cost-of-living
increases in retirement benefits being paid to members or beneficiaries.
Other provisions relating to the payment of
benefits under the plan notwithstanding, if the actuarial equivalent
lump sum value (i.e., the present value) of benefits initially due
a member or beneficiary is $5,000 or less, the member or beneficiary
may elect to receive such lump sum in lieu of the payments otherwise
due the member or beneficiary.
The plan is subject to the minimum funding requirements
of the Pennsylvania Municipal Pension Plan Funding Standard and Recovery
Act (Act 205 of 1984). The plan's funding requirements will be determined on
the basis of regular actuarial valuations in accordance with Act 205,
and the required funding will be met from the following sources:
A. The portion of state aid received by the Borough from
the Commonwealth of Pennsylvania that is allocated to the plan.
B. Member contributions of up to 5% of compensation if the amount described in Subsection
A is not sufficient to meet the plan's funding requirements.
C. Borough contributions, if the amounts described in Subsections
A and
B are not sufficient to meet the plan's funding requirements.
The Borough Council shall employ an actuary
to perform the required periodic actuarial valuations of the plan.
Such actuary shall be an approved actuary as defined under the Pennsylvania
Municipal Pension Plan Funding Standard Recovery Act (Act 205 of 1984).