[Adopted 5-12-1992 by Ord. No. 1536; amended in its entirety 10-13-2003 by Ord. No. 1874]
The City of Greensburg Police Pension Fund ("Plan")
which was established pursuant to ordinance for the benefit of police
employees of the City of Greensburg, and which has been amended and
restated by ordinances and resolutions of the City Council thereafter,
shall be, and hereby is, amended and supplemented in the following
respects:
A.
Any ordinances, resolutions or parts of ordinances
or resolutions conflicting with the provisions of this article be
and the same hereby are repealed so far as the same affects this article;
however, such repeal shall not affect any act done or any right or
liability accrued under any such ordinance or resolution herein repealed
or superseded, and all such rights or liabilities shall continue and
may be enforced in the same manner as if such repeal or supersession
had not been made, but only to the extent otherwise permitted under
the laws of the Commonwealth of Pennsylvania.
B.
Effective January 1, 2002, the plan shall be amended
by entirely deleting the provisions of said plan and substituting
the following in its place.
The following words and phrases as used in this
plan shall have the meaning set forth in this article, unless a different
meaning is otherwise clearly required by the context:
As of any given date, the participant's monthly benefit determined under § 54-9B, which amount shall be based upon the participant's final monthly average salary determined as of such date and multiplied by a fraction, the numerator of which shall be the participant's completed years of continuous service as of such determination date and the denominator of which shall be the projected years of continuous service to normal retirement date. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed 1.0.
The accrued benefit shall include any service increment to which the participant is entitled but shall not exceed the maximum limitation, determined as of the date of computation, provided under § 54-9H. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof and no accrued benefits shall be paid unless the participant satisfies all requirements hereunder for entitlement to receive such benefit.
The total amount contributed by any participant to this plan
or its predecessor by way of payroll deduction or otherwise.
The Municipal Pension Plan Funding Standard and Recovery
Act (enacted as Act 205 of 1984), as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The factors to be used in determining actuarial
equivalents shall be 7% interest and UP-1984 Mortality Table rates.
The person, partnership, association or corporation which
at any given time is serving as actuary, provided that such actuary
must be an "approved actuary," as defined in the Act.
Any leave of absence granted in writing by the employer for
reasons including, but not limited to, accident, sickness, pregnancy
or temporary disability, education, training, jury duty or such other
reasons as may necessitate authorized leave from active employment.
The person or legal entity designated by the participant
to receive any applicable benefits under the plan payable upon the
occurrence of the death of the participant. In the event that a participant
does not designate a beneficiary or the beneficiary does not survive
the participant, the beneficiary shall be the surviving spouse, or
if there is no surviving spouse, the issue, per stirpes, or if there
is no surviving issue, the estate, but if no personal representative
has been appointed, to those persons who would be entitled to the
estate under the intestacy laws of the Commonwealth of Pennsylvania
if the participant had died intestate and a resident of Pennsylvania.
The person designated by the employer who has primary responsibility
for the execution of the administrative affairs of the plan.
The Internal Revenue Code of 1986, as amended.
The Commonwealth of Pennsylvania.
The base pay, holiday pay, night shift differential, personal
days and longevity pay, paid to an employee by the employer with respect
to personal services rendered as an employee and shall exclude all
other forms of remuneration, including but not limited to overtime
and expense reimbursements. Compensation shall be limited on an annual
basis for purposes of this plan to the amount specified in accordance
with Code Section 401(a)(17) for government plans, as adjusted under
Code Section 415(d).
Any insurance or annuity contract issued by an insurance
company in accordance with the requirements of the plan.
The Council of the City of Greensburg.
The first day of the month coincident with or next following
the date when a participant terminates employment due to a total and
permanent Disability.
Any police officer employed on a full-time basis as a member
of the employer's police department.
The City of Greensburg, Westmoreland County, Pennsylvania,
a political subdivision of the Commonwealth of Pennsylvania.
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as an employee. Employment may include, for the purpose
of determining years of continuous service, an authorized leave of
absence to the extent it is specifically granted in writing by the
Council and permitted pursuant to applicable law.
The greater of the monthly rate of pay at the time of termination
front employment, or the average of the monthly compensation of the
participant during any five years of service prior to termination
of employment which provide the highest average. The monthly rate
of pay at termination shall be the sum of the participant's annual
base salary, night shift differential, longevity increment, four personal
days at straight time and paid holidays at time and one half, divided
by 12. Amounts paid as lump sums for back-pay damage awards or settlements
other than to the extent that such amounts arc credited to periods
of time when they would otherwise have accrued or been earned shall
be excluded such that no amounts are credited in a manner which would
result in duplication of remuneration for any particular period of
time.
Any legal reserve life insurance company licensed to do business
in one or more states of the United States.
The first day of the month coincident with or next following
the date when a participant retires which is subsequent to the participant's
normal retirement date.
The minimum annual obligation of the municipality prepared
by the fiscal director based on the applicable actuarial valuation
report and certified by the chief administrative officer pursuant
to the provisions of the Act.
For officers hired prior to January 1, 2009, the date on
which the participant completes 20 years of continuous service. All
officers hired after January 1, 2009, will be subject to the provisions
of the Third Class City Code[1] in regard to pension eligibility. This includes 20 years
of service and age 50.
[Amended 3-9-2009 by Ord. No. 1978[2]]
The first day of the month coincident with or next following
the date when an employee attains normal retirement age.
A written document prepared in the form specified by the
plan administrator. If such notice or election is to be provided by
the employer or the plan administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto, on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the plan administrator, it must be received by
the intended recipient on or before the last day of the specified
notice or election period.
Any employee who has commenced participation in this plan in accordance with § 54-7 and has not for any reason ceased to participate hereunder.
The assets of the plan, which shall be accounted for separately
from the assets of any other plans maintained by the employer and
which shall be administered under the supervision of the employer
in accordance with the terms of the plan.
The board appointed pursuant to the provisions of applicable law to administer the plan as more fully described herein under § 54-14.
The City of Greensburg Police Pension Fund.
The Police Retirement Commission.
The twelve-month period beginning on January 1 and ending
on December 31.
January 1, 2002, the effective date of this amended and restated
plan.
A condition of physical or mental impairment due to which
a participant is unable to perform the reasonable and customary duties
of employment as a police officer with the employer and which is reasonably
expected to continue for the remainder of the participant's life.
A twelve-month period of continuous employment during which
a participant is employed with the employer.
Years of continuous service shall include years
of nonintervening military service purchased by the participant as
follows: A participant who is making contributions and served in the
Armed Forces of the United States following September 1, 1940, and
who was not a participant of the police pension fund prior to such
military service, shall be entitled to have full credit for each year
or fraction thereof, not to exceed five years of service, upon his
payment to the pension fund of an amount equal to that which he would
have paid had he been a participant during the period for which he
desires credit, and his payment to the pension fund of an additional
amount as the equivalent of the contribution of the employer on account
of such military service, plus interest on contributions as determined
by the Police Retirement Commission.
Years of continuous service shall also include
any period of qualified military service as determined under the requirements
of Chapter 43 of Title 38, United States Code, provided that the participant
returns to employment following such period of qualified military
service, and the participant makes payment to the plan in an amount
equal to the participant contributions that would otherwise have been
paid to the plan during such period of qualified military service,
The amount of participant contributions shall be based upon an estimate
of the compensation that would have been paid to the participant during
such period of qualified military service as determined by the final
monthly average salary paid to the participant during the 12 months
immediately preceding the period of qualified military service. The
amount of participant contributions so calculated must be paid into
the plan before the end of the period that begins on the date of reemployment
and ends on the earlier of the date that ends the period that has
a duration of three times the period of qualified military service,
or the date that is five years after the date of reemployment.
A.
Eligibility for participation. Each employee shall
be eligible to participate in the plan as of the first day of employment,
provided that all administrative prerequisites have been fulfilled.
Each employee who was a participant in the plan on the day prior to
the restatement date shall continue to be a participant on and after
the restatement date, subject to the terms and conditions of the plan
as set forth herein.
B.
Participation requirements. Each participant hereunder shall be required to make contributions to the plan, as provided in § 54-8A hereof, and shall execute and complete any enrollment or application forms as required by the Plan Administrator.
C.
Reemployment. Each employee who had previously been employed by the employer shall, upon reemployment, have prior years of continuous service recredited for all purposes under the plan upon repayment to the plan of any amount of accumulated contributions which had been distributed pursuant to § 54-13B.
D.
Change in status. A participant who remains in the
service of the employer but ceases to be an employee eligible for
participation hereunder, or ceases or fails to make any contributions
which are required as a condition of participation hereunder, shall
have no further benefit accruals occur until the individual again
qualifies as a participant hereunder eligible to resume such accrual
of benefits.
E.
Leave of absence. During any leave of absence that
is not an authorized leave of absence, a participant shall be deemed
an inactive participant and shall not be given credit for years of
continuous service nor continue to accrue any benefits hereunder.
If the employee is not reemployed by the expiration of such leave
of absence, participation in the plan shall cease on the date on which
such leave of absence commenced. During any authorized leave of absence,
a participant shall continue to receive credit for years of continuous
service to the extent such credit is specifically granted in writing
by the employer and is permitted pursuant to applicable law.
F.
Recordkeeping. The employer shall furnish the Administrator
with such information as will aid the Administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this plan.
A.
Employee contributions. As a condition of participation
hereunder, each participant shall be required to have contributions
deducted from the participant's compensation and contributed to the
plan. The rate of contributions shall be 5% of the participant's compensation
each month to the pension fund. In addition, each participant shall
contribute $1 per month as a service increment contribution, until
the participant attains age 65 or terminates employment, whichever
shall first occur.
B.
Employer contributions. The Fiscal Director, in accordance
with the Act, shall annually determine the minimum municipal obligation
of the employer. The employer shall pay into the pension fund, by
annual appropriations or otherwise, the contributions necessary to
satisfy the minimum municipal obligation. Notwithstanding the foregoing,
nothing contained herein shall preclude the employer from contributing
an amount in excess of the minimum municipal obligation.
C.
State aid. General municipal pension system state
aid, or any other amount of state aid received by the employer in
accordance with the Act from the commonwealth may be deposited into
the pension fund governed by this plan and shall be used to reduce
the amount of the minimum municipal obligation of the employer.
D.
Gifts. The Council is authorized to take by gift,
grant, devise or otherwise any money or property, real or personal,
for the benefit of the plan and cause the same to be held as a part
of the pension fund. The care, management, investment and disposal
of such amounts shall be vested in the Council or its delegate, the
Plan Administrator, subject to the direction of the donor and not
inconsistent with applicable laws and the terms of the plan.
E.
No reversion to the employer. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, except that contributions made by the employer may be returned to the employer if the contribution was made due to a mistake of fact and the contribution is returned within one year of the mistaken payment of the contribution or the plan is terminated, as provided in § 54-16.
A.
Normal retirement benefit. Each participant shall be entitled to a normal retirement benefit after retirement on or after attainment of normal retirement age as "normal retirement age" is defined under § 54-6 of this chapter.
[Amended 3-9-2009 by Ord. No. 1978[1]]
[1]
Editor's Note: This ordinance provided an effective date of
1-1-2009.
B.
Normal retirement benefit commencement. Each participant who shall become entitled to a benefit pursuant to § 54-9A hereof shall receive a benefit commencing on the participant’s normal retirement date and paid in the normal form as provided in § 54-12A hereof. The monthly amount of the normal retirement benefit for officers hired prior to January 1, 2009, shall be equal to 60% of the participant’s final monthly average salary. The monthly amount of normal retirement benefit for officers hired after January 1, 2009, shall be equal to 50% of the participant’s final monthly average salary.
[Amended 3-9-2009 by Ord. No. 1978[2]]
[2]
Editor's Note: This ordinance provided an effective date of
1-1-2009.
C.
Late retirement. A participant may continue in employment beyond the attainment of normal retirement age subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of § 54-9A continues in employment beyond the participant's normal retirement date, there shall be no retirement benefits paid until employment has ceased and the participant's retirement actually commences. The retirement benefit of a participant described in this § 54-9C shall be calculated in accordance with § 54-9B on the basis of final monthly average salary as of the participant's actual retirement and shall commence on the participant's late retirement date.
D.
Service increment benefit.
(1)
Notwithstanding anything contained herein to the contrary, a participant who shall retire after completion of more than 20 years of continuous service may be entitled to receive a monthly service increment benefit; provided, however, that the participant shall have accrued sufficient service credit pursuant to this § 54-9D. Years of continuous service for purposes of this § 54-9D shall only include periods of time when the participant actively renders service in employment or is on an authorized leave of absence and pays all required contributions to the plan or military service, purchased pursuant to § 54-6. Years of continuous service completed after attaining age 65 shall not be recognized for this purpose.
(2)
The service increment benefit shall be a monthly amount equal to 1/40 of the benefit determined under § 54-9B multiplied by the total number of completed years of continuous service in excess of 20 years. Notwithstanding the foregoing, in no event shall the monthly amount of service increment benefit exceed $100. The service increment benefit shall be paid monthly in addition to the benefit determined under § 54-9B for each month that such benefit under § 54-9B shall be paid.
E.
Application for benefit. A participant must complete
and execute an application for benefit on a form and in the manner
prescribed by the Plan Administrator and deliver the said application
to the Chief Administrative Officer at least two weeks prior to the
date on which benefit payments are to commence. Notwithstanding anything
contained herein to the contrary, no retirement benefit payments or
any other benefit payments shall be due or payable on or before the
first day of the month coincident with or next following the date
that is two weeks after the date the Chief Administrative Officer
receives the application for benefit.
F.
Limitation of liability. Nothing contained herein
shall obligate the employer, the Plan Administrator, any fiduciary
or any agent or representative of any of the foregoing, to provide
any retirement or other benefit to any participant or beneficiary
which cannot be provided from the assets available in the pension
fund, whether such benefits are in pay status or otherwise payable
under the terms of the plan. The Council retains the right to amend
or terminate this plan consistent with applicable law at any time,
with or without cause and whether or not such action directly or indirectly
results in the suspension, reduction or termination of any benefit
payable under the plan or in pay status, and without liability to
any person for any such action.
G.
Special provision for restated plans. The benefit
amount of any participant who may have retired prior to the restatement
date shall not be in any way altered by the provisions of this plan,
except where otherwise expressly indicated herein, and shall continue
to be determined on the basis of the terms of the plan in effect on
the day preceding the restatement date.
H.
Maximum benefit limitations. Notwithstanding any provision of this plan to the contrary, no benefit provided under this plan attributable to contributions of the employer shall exceed, as an annual amount, the amount specified in Code Section 415(b)(1)(A) as adjusted pursuant to Code Section 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this § 54-9H(1) through (7) shall be governed by the following conditions and definitions:
(1)
Benefits paid or payable in a form other than a straight
life annuity (with no ancillary benefits) or where the employee contributes
to the plan or makes rollover contributions shall be adjusted on an
actuarially equivalent basis to determine the limitation contained
herein;
(2)
In the case of a benefit which commences prior to the attainment of age 62 by the participant, the limitation herein shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to this section commencing at age 62; however, in the case of a qualified participant (a participant with respect to whom a period of at least 15 years of service, including applicable military service, as a full-time employee of a police or fire department is taken into account in determining the amount of benefit), the limitation contained in this § 54-9H(2) shall not apply;
(3)
In the case of a benefit which commences after attainment
of age 65 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis to the amount determined herein
commencing at age 65;
(4)
Benefits paid to a participant which total less than
$10,000 from all defined benefit plans maintained by the employer
expressed as an annual benefit shall be deemed not to exceed the limitation
of this section, provided that the employer has not at any time maintained
a defined contribution plan in which the participant has participated;
(5)
In the case of a participant with fewer than 10 years of service or participation, the limitation expressed in this § 54-9H shall be reduced by 1/10 for each year of participation less than 10 with respect to Code Section 415(b)(1)(A) or each year of service less than 10 years in the case of the limitation in Subsection H(4); but in no event shall this limitation be less than 1/10 of the applicable limit;
(6)
The limitations expressed herein shall be based upon
plan years for calculation purposes, shall be applied to all defined
benefit plans maintained by the employer as one defined benefit plan
and to all defined contribution plans maintained by the employer as
one defined contribution plan, and shall be applied and interpreted
consistent with Code Section 415 and regulations thereunder as applicable
to government plans in general and this plan in particular; and
(7)
In the case of a survivor benefit under § 54-11B(1) and (2), or a disability retirement benefit under § 54-10B(1) and (2), the adjustment under Subsections H(2) and (5) hereof shall not apply and the applicable limitation shall be the limitation contained herein without regard to the age or years of service or participation of the benefit recipient.
I.
Notwithstanding anything contained in this section
to the contrary, the limitations, adjustments, and other requirements
prescribed in this section shall at all times comply with the provisions
of Code Section 415 and the regulations thereunder (as such apply
to governmental plans), the terms of which are specifically incorporated
herein by reference.[3]
[3]
Editor's Note: See the Internal Revenue Code
of 1986, as amended.
A.
Disability retirement. A participant who incurs a
total and permanent disability before attaining normal retirement
age shall be entitled to a disability retirement benefit as of the
disability retirement date pursuant to this section.
B.
Disability retirement benefit.
(1)
If any participant, regardless of the number of completed years of continuous service with the employer, shall incur a total and permanent disability in the line of duty, such participant shall be entitled to receive a disability retirement benefit in an amount equal to the normal retirement benefit pursuant to § 54-9B, based on the final monthly average salary of the participant at the date the total and permanent disability was incurred.
(2)
If a participant who has completed 12 years of continuous
service with the employer incurs a total and permanent disability
due to injuries or mental incapacities which did not occur in the
line of duty, such participant shall be entitled to receive a disability
retirement benefit equal to 50% of the participant’s final monthly
average salary at the date the total and permanent disability was
incurred.
[Amended 9-8-2008 by Ord. No. 1972]
C.
Payment of disability benefit.
(1)
Payment of a disability retirement benefit shall be made in the normal form under § 54-12A commencing on the participant's disability retirement date.
(2)
If the participant's total and permanent disability shall cease prior to the attainment of the participant's normal retirement age, the participant shall be deemed to have terminated employment as of the disability retirement date for purposes of this plan unless the participant shall resume active employment within three months following the date on which such total and permanent disability ceased. A participant who fails to resume active employment after total and permanent disability ceases shall not be entitled to a distribution of accumulated contributions pursuant to § 54-13B to the extent that the total amount of disability retirement benefits paid exceeds the value of the participant's accumulated contributions as of the disability retirement date and shall not be entitled to any other benefits under the plan as a result of the accumulation of any years of continuous service as of the disability retirement date.
D.
Verification of disability. The Plan Administrator
shall determine whether a participant shall have incurred a total
and permanent disability. Proof of total and permanent disability
shall consist of the sworn statement of two practicing physicians
designated by the Plan Administrator that the participant has incurred
a total and permanent disability. If the Plan Administrator shall
determine that a participant who is totally and permanently disabled
has recovered sufficiently to resume active employment or if a participant
refuses to undergo a medical examination as directed by the Plan Administrator
(such a medical examination may not be required more frequently than
once in any given twelve-month period), the payment of disability
retirement benefits shall cease.
E.
Cessation of disability. A participant who is receiving
payment of disability retirement benefits under this plan must notify
the Plan Administrator of any change in condition which may cause
the participant's entitlement to receipt of such benefits to cease.
If a participant fails to provide immediate notice to the Plan Administrator
of any such change in status and thereby continues to receive payment
of benefits hereunder to which the participant is not entitled, the
Plan Administrator may take whatever action is necessary and permitted
under applicable law to recover any amount of improper payments, including
offsetting such amounts against any future payment of retirement or
other benefits under the plan or legal action. The Plan Administrator
may also recover the costs of any such action.
A.
Death of participant. Upon the occurrence of the death of a participant, there shall be benefits payable in accord with the following sections of this § 54-11.
B.
Survivor benefit. Upon the death of a participant
the following survivor benefits shall apply:
(1)
If a participant dies in the line of duty or after retiring due to a line of duty disability, his surviving spouse shall be entitled to receive a monthly benefit equal to the normal retirement benefit under § 54-9B based on the participant's final monthly average salary at the time of death, payable for life. If no spouse survives or if a spouse survives and subsequently dies, the participant's child or children under the age of 18 shall, until reaching the age of 18, be entitled to receive the monthly benefit.
(2)
Upon the death of a participant not in the line of
duty or that occurs after the participant has retired, the spouse
shall be entitled to receive a monthly benefit equal to 50% of the
amount the participant was receiving or would have received if he
retired on the date of death. If the death occurs before the participant's
normal retirement date, he shall be deemed to have attained normal
retirement age. If no spouse survives or if a spouse survives and
subsequently dies, the participant's child or children under the age
of 18 shall, until reaching the age of 18, be entitled to receive
the monthly benefits.
C.
Death before retirement. If a participant shall die prior to the commencement of the payment of any retirement or other benefits under this plan, and without eligibility for payment of a survivor benefit under § 54-11B(1) and (2), the beneficiary shall be entitled to receive a distribution of the participant's accumulated contributions determined as of the date of death of the participant. If the participant has received disability retirement benefits hereunder, the amount of distribution of accumulated contributions shall be reduced by the amount of disability retirement benefits which have been paid hereunder.
D.
Death after retirement. If a participant shall die after commencement of a benefit under § 54-9B or 54-10B(1) and (2) and without eligibility for payment of a survivor benefit under 54-11B(1) and (2), and the total amount of benefits paid to the participant does not at least equal or exceed the participant's accumulated contributions as of the date of death, there shall be paid to the beneficiary an amount equal to the difference between the amount of benefits paid and the amount of the participant's accumulated contributions. If the benefits paid equals or exceeds the amount of the participant's accumulated contributions, there shall be no additional amounts due or payable hereunder.
A.
Normal form. The normal form for payment of retirement
benefits shall be a monthly annuity for the life of the participant.
B.
Commencement of benefits. A participant may make an Election to commence receiving distribution of retirement benefits as of the participant's normal retirement date or late retirement date, whichever is applicable, or may defer such payments to a date not later than the required date for commencement of benefits determined under § 54-12C.
C.
Required distributions.
(1)
Notwithstanding any other provision of this plan,
the entire benefit of any participant who becomes entitled to benefits
prior to death shall be distributed either:
(a)
Not later than the required beginning date;
or
(b)
Over a period beginning not later than the required
beginning date and extending over the life of such participant or
over the lives of such participant and a designated beneficiary (or
over a period not extending beyond the life expectancy of such participant,
or the joint life expectancies of such participant and a designated
beneficiary).
(2)
If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of benefits has begun in accordance with Subsection C(1)(b) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection C(1)(b) as of the date of death.
(3)
If a participant who is entitled to benefits under
this plan dies before distribution of the benefit has begun, the entire
interest of such employee shall be distributed within five years of
the death of such employee, unless the following sentence is applicable.
If any portion of the employee's interest is payable to (or for the
benefit of) a designated beneficiary, such portion shall be distributed
over the life of such designated beneficiary (or over a period not
extending beyond the life expectancy of such beneficiary), and such
distributions begin not later than one year after the date of the
employee's death or such later date as provided by regulations issued
by the Secretary of the Treasury; then, for purposes of the five-year
rule set forth in the preceding sentence, the benefit payable to the
beneficiary shall be treated as distributed on the date on which such
distributions begin; provided, however, that notwithstanding the,
preceding sentence, if the designated beneficiary is the surviving
spouse of the participant, then the date on which distributions are
required to begin shall not be earlier than the date upon which the
employee would have attained age 70 1/2 and, further provided,
if the surviving spouse dies before the distributions to such spouse
begin, this section shall be applied as if the surviving spouse were
the employee.
(4)
For purposes of this section, the following definitions
and procedures shall apply:
(a)
"Required beginning date" shall mean April 1
of the calendar year following the later of the calendar year in which
the employee attains age 70 1/2 or the calendar year in which
the employee retires.
(b)
The phrase "designated beneficiary" shall mean
any individual designated by the employee under this plan according
to its rules.
(c)
Any amount paid to a child shall be treated
as if it had been paid to the surviving spouse if such amount will
become payable to the surviving spouse upon such child's reaching
majority (or other designated event permitted under regulations issued
by the Secretary of the Treasury).
(d)
For purposes of this section, the life expectancy
of an employee and/or the employee's spouse (other than in the case
of a life annuity) may be redetermined but not more frequently than
annually.
D.
Direct rollovers.
(1)
This section applies to distributions made on or after
December 31, 2001. Notwithstanding any provision of the plan to the
contrary that would otherwise limit a distributee's election under
this section, a distributee may elect, at the time and in the manner
prescribed by the Plan Administrator, to have any portion of an eligible
rollover distribution that is equal to at least $500 paid directly
to an eligible retirement plan specified by the distributee in a direct
rollover.
(2)
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(a)
(b)
For purposes of this section, the following definitions
shall apply:
A payment by the plan to the eligible retirement plan specified
by the distributee.
Includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
Section 414(p), are distributees with regard to the interest of the
spouse or former spouse.
A qualified trust described in Code Section 401(a), an individual
retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an annuity plan
described in Code Section 403(a), an annuity contract described in
Code Section 403(b), an eligible plan under Section 457(b) of the
Code which is maintained by a state, political subdivision of a state,
or any agency or instrumentality of a state or political subdivision
of a state and which agrees to separately account for amounts transferred
into such plan from this plan.
Any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible
rollover distribution does not include: any distribution that is one
of a series of substantially equal periodic payments (not less frequently
than annually) made for the life (or life expectancy) of the distributee
or the joint lives (or joint life expectancies) of the distributee
and the distributee's designated beneficiary, or for a specified period
of 10 years of more; any distribution to the extent such distribution
is required under Code Section 401(a)(9); and the portion of any distribution
that is not includible in gross income (determined without regard
to the exclusion for net unrealized appreciation with respect to employer
securities).
For purposes of the direct rollover provisions
in this section of the plan, a portion of a distribution shall not
fail to be an eligible rollover distribution merely because the portion
consists of after-tax employee contributions that are not includible
in gross income. However, such portion may be paid only to an individual
retirement account or annuity described in Section 408(a) or (b) of
the Code, or to a qualified defined contribution plan described in
Section 401(a) or 403(a) of the Code that agrees to separately account
for amounts so transferred, including separately accounting for the
portion of such distribution which is includible in gross income and
the portion of such distribution which is not so includible.
E.
Nonduplication of benefit. To avoid any duplication
of benefits, a participant who is receiving a retirement benefit under
this plan and who shall resume employment shall have benefit payments
suspended until the first day of the month coincident with or next
following the date such employment shall cease. Upon resumption of
benefit payments, such participant shall receive the greater of the
amount of the suspended benefit or the amount of benefit based upon
final monthly average salary and years of continuous service as of
the date that such period of resumed employment shall cease.
F.
Personal right of participant. The right to receive
any benefits under this plan is a personal right of the participant
and shall expire upon the death of the participant. No heir, legatee,
devisee, beneficiary, assignee or other person claiming by or through
a participant shall have any interest in any benefits hereunder unless
clearly and expressly so provided by the terms of this plan. A participant's
election, failure to make an election or revocation of an election
hereunder shall be final and binding on all persons.
A.
Rights of terminated employees. A participant who shall cease to be an employee except as otherwise hereinbefore provided shall have all interest and rights under this plan limited to those contained in the following subsections of this § 54-13.
B.
Distribution of accumulated contributions. A participant
whose employment with the employer shall terminate for any reason
other than death or total and permanent disability prior to attainment
of normal retirement age shall be entitled to receive a distribution
of accumulated contributions. Upon receipt of such accumulated contributions,
said participant and beneficiary shall not be entitled to any further
payments from the plan.
C.
Deferred retirement benefit. A participant who shall have completed at least 12 years of continuous service and whose employment shall terminate for any reason other than due to death or total and permanent disability prior to attainment of normal retirement age shall be entitled to elect to receive a deferred retirement benefit in lieu of a distribution of accumulated contributions under § 54-13B. Such an election shall be made in writing and delivered to the Chief Administrative Officer within two weeks of the date of employment termination. Such deferred retirement benefit shall be equal to the participant's accrued benefit as of the date employment terminates and shall commence after application pursuant to § 54-9E and not earlier than the date which would be the participant's normal retirement date under the plan if the participant remained in employment until such date.
A.
Plan Administrator. The Police Retirement Commission
shall be the Plan Administrator and shall have the power and authority
to do all acts and to execute, acknowledge and deliver all instruments
necessary to implement and effectuate the purpose of this plan. The
Plan Administrator may delegate authority to act on its behalf to
any persons it deems appropriate.
B.
Police Retirement Commission. The pension fund shall
be under the care and control of a commission known as the Police
Retirement Commission which shall consist of the Mayor, all members
of Council, the City Administrator, and the City Treasurer, whose
terms shall be concurrent with their tenure in office; and seven members
of the Police Department who shall be elected yearly to serve on the
Commission by the members of the Police Department. The Mayor shall
be the President of the Commission, the City Administrator shall be
the secretary of the Commission and the City Treasurer shall be the
Treasurer of the Commission. The Commission shall have the power and
the right to collect and disburse all moneys due or owing to said
fund. The Commission may, upon the passage of an appropriate resolution,
delegate the custody and management of the assets of the pension fund
to a corporate fiduciary, as may be appointed by Council. The Commission
shall, upon the selection of a corporate fiduciary by Council, enter
into an appropriate agreement with the corporate fiduciary, specifying
the rights and duties of the parties to such agreement and the manner
of management of the funds entrusted to the fiduciary. The Commission
shall retain all powers necessary to make determinations of membership
in the plan and determination of all matters pertaining to disbursements
from the pension fund. The Commission shall submit at least annually
a financial report to Council of the condition of the pension fund
or any other report that Council may require.
C.
Authority and duties of the Plan Administrator.
(1)
The Plan Administrator shall have full power and authority
to do whatever shall, in its judgment, be reasonably necessary for
the proper administration and operation of the plan. The interpretation
or construction placed upon any term or provision of the plan by the
Plan Administrator or any action of the Plan Administrator taken in
good faith shall be final and conclusive upon all parties hereto,
whether employees, participants or other persons concerned. By way
of specification and not limitation and except as specifically limited
hereafter, the Plan Administrator is authorized:
(a)
To construe this plan;
(b)
To determine all questions affecting the eligibility
of any employee to participate herein;
(c)
To compute the amount and source of any benefit
payable hereunder to any participant or beneficiary;
(d)
To authorize any and all disbursements;
(e)
To prescribe any procedure to be followed by
any participant and/or other person in filing any application or election;
(f)
To prepare and distribute, in such manner as
may be required by law or as the Plan Administrator deems appropriate,
information explaining the plan;
(g)
To require from the employer or any participant
such information as shall be necessary for the proper administration
of the plan; and
(h)
To appoint and retain any individual to assist
in the administration of the plan, including such legal, clerical,
accounting, actuarial and investment services as may be required by
any applicable law or laws.
(2)
The Plan Administrator in its capacity as Plan Administrator
shall have no power to add to, subtract from or modify the terms of
the plan or change or add to any benefits provided by the plan, or
to waive or fail to apply any requirements of eligibility for benefits
under the plan. Further, the Plan Administrator shall have no power
to adopt, amend, or terminate the plan, or to determine or require
any contributions to the plan, said powers being exclusively reserved
to the Council in its capacity as the governing body of the employer.
D.
Plan administration expense. All reasonable expenses
incident to the functioning of the Plan Administrator, including but
not limited to fees of accountants, counsel, actuaries and other specialists
and other costs of administering the plan, may be paid from the pension
fund upon approval by the Plan Administrator to the extent permitted
under applicable law and not otherwise paid by the employer.
E.
Hold harmless. No member of the Council nor the Plan
Administrator nor the actuary nor any other person involved in the
administration of the plan shall be liable to any person on account
of any act or failure to act which is taken or omitted to be taken
in good faith in performing their respective duties under the terms
of this plan. To the extent permitted by law, the employer shall,
and hereby does agree to, indemnify and hold harmless the Plan Administrator
and each successor and each of any such individual's heirs, executors
and administrators, and the Plan Administrator's delegates and appointees
(other than any person, bank, firm or corporation which is independent
of employer and which renders services to the plan for a fee) from
any and all liability and expenses, including counsel fees, reasonably
incurred in any action, suit or proceeding to which he is or may be
made a party by reason of being or having been the Plan Administrator
or a delegate or appointee of the Plan Administrator, except in matters
involving criminal liability, intentional or willful misconduct. If
the employer purchases insurance to cover claims of a nature described
above, then there shall be no right of indemnification except to the
extent of any deductible amount under the insurance coverage or to
the extent of the amount the claims exceed the insured amount.
F.
Approval of benefits. The Chief Administrative Officer
shall review and approve or deny any application for retirement benefits
within two weeks following receipt thereof or within such longer time
as may be necessary under the circumstances. Any denial of an application
for retirement benefits shall be in writing and shall specify the
reason for such denial.
G.
Appeal procedure. Any person whose application for
retirement benefits is denied, who questions the amount of benefit
paid, who believes a benefit should have commenced which did not so
commence or who has some other claim arising under the plan ("claimant"),
shall first seek a resolution of such claim under the procedure hereinafter
set forth.
(1)
Any claimant shall file a notice of the claim with
the Plan Administrator which shall fully describe the nature of the
claim. The Plan Administrator shall review the claim and make an initial
determination approving or denying the claim.
(2)
If the claim is denied in whole or in part, the Plan
Administrator shall, within 90 days (or such other period as maybe
established by applicable law) from the time the application is received,
mail notice of such denial to the claimant. Such ninety-day period
may be extended by the Plan Administrator if special circumstances
so require for up to 90 additional days by the Plan Administrator's
delivering notice of such extension to the claimant within the first
ninety-day period. Any notice hereunder shall be written in a manner
calculated to be understood by the claimant and, if a notice of denial,
shall set forth the specific plan provisions on which the denial is
based, an explanation of additional material or information, if any
necessary, to perfect such claim and a statement of why such material
or information is necessary, and an explanation of the review procedure.
(3)
Any notice of a claim questioning the amount of a
benefit in pay status shall be filed within 90 days following the
date of the first payment which would be adjusted if the claim is
granted, unless the Plan Administrator allows a later filing for good
cause shown.
(4)
A claimant who does not submit a notice of a claim
or a notice requesting a review of a denial of a claim within the
time limitations specified above shall be deemed to have waived such
claim or right to review.
(5)
Nothing contained herein is intended to abridge any
right of a claimant to file and arbitrate a grievance under an applicable
collective bargaining agreement, if any.
A.
Operation of the pension fund.
(1)
The Council of the City of Greensburg is hereby authorized
to hold and supervise the investment of the assets of the pension
fund, subject to the provisions of the laws of the Commonwealth of
Pennsylvania and of this plan and any amendment thereto by ordinance.
(2)
The pension fund shall be used to pay benefits as
provided in the plan and, to the extent not paid directly by the employer,
to pay the expenses of administering the plan pursuant to authorization
by the employer.
(3)
The employer intends the plan to be permanent and
for the exclusive benefit of its employees. It expects to make the
contributions to the pension fund required under the plan. The employer
shall not be liable in any manner for any insufficiency in the pension
fund; benefits are payable only from the pension fund, and only to
the extent that there are monies available therein.
(4)
The pension fund will consist of all funds held by
the employer under the plan, including contributions made pursuant
to the provisions hereof and the investments, reinvestments and proceeds
thereof. The pension fund shall be held, managed, and administered
pursuant to the terms of the plan. Except as otherwise expressly provided
in the plan, the employer has exclusive authority and discretion to
manage and control the pension fund assets. The employer may, however,
appoint a trustee, custodian and/or investment manager, at its sole
discretion.
B.
Powers and duties of employer. With respect to the
pension fund, the employer shall have the following powers, rights
and duties, in addition to those vested in it elsewhere in the plan
or by law, unless such duties are delegated:
(1)
To retain in cash so much of the pension fund as it
deems advisable and to deposit any cash so retained in any bank or
similar financial institution (including any such institution which
may be appointed to serve as trustee hereunder), without liability
for interest thereon.
(2)
To invest and reinvest the principal and income of
the fund and keep said fund invested, without distinction between
principal and income, in securities which are at the time legal investments
for fiduciaries under the Pennsylvania Fiduciaries Investment Act,
or as the same may be subsequently modified or amended.
(3)
To sell property held in the fund at either public
or private sale for cash or on credit at such times as it may deem
appropriate; to exchange such property; to grant options for the purchase
or exchange thereof.
(4)
To consent to and participate in any plan of reorganization,
consolidation, merger, extension or other similar plan affecting property
held in the fund; to consent to any contract, lease, mortgage, purchase,
sale or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights
pertaining to property held in the fund.
(6)
To exercise all voting rights with respect to property
held in the fund and in connection therewith to grant proxies, discretionary
or otherwise.
(7)
To place money at any time in a deposit bank deemed
to be appropriate for the purposes of this plan no matter where situated,
including, in those cases where a bank has been appointed to serve
as trustee hereunder, the savings department of its own commercial
bank.
(8)
In addition to the foregoing powers, the employer
shall also have all of the powers, rights, and privileges conferred
upon trustees by the Pennsylvania Fiduciaries Investment Act, or as
the same may be subsequently modified or amended, and the power to
do all acts, take all proceedings and execute all rights and privileges,
although not specifically mentioned herein, as the employer may deem
necessary to administer the pension fund.
(9)
To maintain and invest the assets of this plan on
a collective and commingled basis with the assets of other pension
plans maintained by the employer, provided that the assets of each
respective plan shall be accounted for and administered separately.
(10)
To invest the assets of the pension fund in
any collective commingled trust fund maintained by a bank or trust
company, including any bank or trust company which may act as a trustee
hereunder. In this connection, the commingling of the assets of this
plan with assets of other eligible, participating plans through such
a medium is hereby specifically authorized. Any assets of the plan
which may be so added to such collective trusts shall be subject to
all of the provisions of the applicable declaration of trust, as amended
from time to time, which declaration, if required by its terms or
by applicable law, is hereby adopted as part of the plan, to the extent
of the participation in such collective or commingled trust fund by
the plan.
(11)
To make any payment or distribution required
or advisable to carry out the provisions of the plan, provided that,
if a trustee is appointed by the employer, such trustee shall make
such distribution only at the direction of the employer.
(12)
To compromise, contest, arbitrate, enforce or
abandon claims and demands with respect to the plan.
(13)
To retain any funds or property subject to any
dispute without liability for the payment of interest thereon, and
to decline to make payment or delivery thereof until final adjudication
is made by a court of competent jurisdiction.
(14)
To pay, and to deduct from and charge against
the pension fund, any taxes which may be imposed thereon, whether
with respect to the income, property or transfer thereof, or upon
or with respect to the interest of any person therein, which the fund
is required to pay; to contest, in its discretion, the validity or
amount of any tax, assessment, claim or demand which may be levied
or made against or in respect of the pension fund, the income, property
or transfer thereof, or in any matter or thing connected therewith.
(15)
To appoint any persons or firms (including but
not limited to accountants, investment advisors, counsel, actuaries,
physicians, appraisers, consultants, professional plan administrators
and other specialists), or otherwise act to secure specialized advice
or assistance, as it deems necessary or desirable in connection with
the management of the fund; to the extent not prohibited by applicable
law, the employer shall be entitled to rely conclusively upon and
shall be fully protected in any action or omission taken by it in
good faith reliance upon the advice or opinion of such persons or
firms, provided such persons or firms were prudently chosen by the
employer taking into account the interests of the participants and
beneficiaries and with due regard to the ability of the persons or
firms to perform their assigned functions.
(16)
To retain the services of one or more persons
or firms for the management of (including the power to acquire and
dispose of) all or any part of the fund assets, provided that each
of such persons or firms is registered as an investment advisor under
the Investment Advisors Act of 1940, is a bank (as defined in that
act), or is an insurance company qualified to manage, acquire or dispose
of pension trust assets under the laws of more than one state; in
such event, the employer shall follow the directions of such investment
manager or managers with respect to the acquisition and disposition
of fund assets, but shall not be liable for the acts or omissions
of such investment manager or managers, nor shall it be under any
obligation to review or otherwise manage any fund assets which are
subject to the management of such investment manager or managers.
If the employer appoints a trustee, the trustee shall not be permitted
to retain such an investment manager except with the express written
consent of the employer.
C.
Common investments. The employer shall not be required
to make separate investments for individual participants or to maintain
separate investments for each participant's account but may invest
contributions and any profits or gains therefrom in common investments.
D.
Compensation and expenses of appointed trustee. If
a trustee is appointed, the trustee shall be entitled to such reasonable
compensation as shall from time to time be agreed upon by the employer
and the trustee, unless such compensation is prohibited by law. Such
compensation, and all expenses reasonably incurred by the trustee
in carrying out his functions, shall constitute a charge upon the
employer or the pension fund, which may be executed at any time after
30 days' written notice to the employer. The employer shall be under
no obligation to pay such costs and expenses, and, in the event of
its failure to do so, the trustee shall be entitled to pay the same,
or to reimburse themselves for the payment thereof, from the pension
fund.
E.
Periodic accounting. If a trustee is appointed, the
pension fund shall be evaluated annually, or at more frequent intervals,
by the trustee and a written accounting rendered as of each fiscal
year end of the fund, and as of the effective date of any removal
or resignation of the trustee, and such additional dates as requested
by the employer, showing the condition of the fund and all receipts,
disbursements and other transactions effected by the trustee during
the period covered by the accounting, based on fair market values
prevailing as of such date.
F.
Value of the pension fund. All determinations as to
the value of the assets of the pension fund, and as to the amount
of the liabilities thereof, shall be made by the employer or its appointed
trustee, whose decisions shall be final and conclusive and binding
on all parties hereto, the participants and beneficiaries and their
estates. In making any such determination, the employer or trustee
shall be entitled to seek and rely upon the opinion of or any information
furnished by brokers, appraisers and other experts, and shall also
be entitled to rely upon reports as to sales and quotations, both
on security exchanges and otherwise as contained in newspapers and
in financial publications.
A.
Amendment of the plan. The employer may amend this
plan at any time or from time to time by an instrument in writing
executed in the name of the employer under its municipal seal by officers
duly authorized to execute such instrument and delivered to the Council;
provided, however;
(1)
That no amendment shall deprive any participant or
any beneficiary of a deceased participant of any of the benefits to
which each is entitled under this plan with respect to contributions
previously made;
B.
Termination of the plan. The employer shall have the
power to terminate this plan in its entirety at any time by an instrument
in writing executed in the name of the employer.
C.
Automatic termination of contributions. Subject to
the provisions of the Act governing financially distressed municipalities,
the liability of the employer to make contributions to the pension
fund shall automatically terminate upon liquidation or dissolution
of the employer, upon its adjudication as a bankrupt or upon the making
of a general assignment for the benefit of its creditors.
D.
Distribution upon termination.
(1)
In the event of the termination of the plan, all amounts
of vested benefits accrued by the affected participants as of the
date of such termination, to the extent funded on such date, shall
be nonforfeitable hereunder. In the event of termination of the plan,
the employer shall direct either that the Plan Administrator continue
to hold the vested accrued benefits of participants in the pension
fund in accordance with the provisions of the plan (other than those
provisions related to forfeitures) without regard to such termination
until all funds have been distributed in accordance with the provisions,
or that the Plan Administrator immediately distribute to each participant
an amount equal to the vested accrued benefit to the date.
(2)
If there are insufficient assets in the pension fund
to provide for all vested accrued benefits as of the date of plan
termination, priority shall first be given to the distribution of
any amounts attributable to mandatory or voluntary employee contributions
before assets are applied to the distribution of any vested benefits
attributable to other sources hereunder.
(3)
All other assets attributable to the terminated plan
shall be distributed and disposed of in accordance with the provisions
of applicable law and the terms of any instrument adopted by the employer
which effects such termination.
E.
Residual assets. If all liabilities to vested participants
and any others entitled to receive a benefit under the terms of the
plan have been satisfied and there remain any residual assets in the
pension fund, such residual assets remaining shall be returned to
the employer insofar as such return does not contravene any provision
of law, and any remaining balance, in excess of employer contributions,
shall be returned to the commonwealth.
F.
Exclusive benefit rule. In the event of the discontinuance
and termination of the plan as provided herein, the employer shall
dispose of the pension fund in accordance with the terms of the plan
and applicable law; at no time prior to the satisfaction of all liabilities
under the plan shall any part of the corpus or income of the pension
fund, after deducting any administrative or other expenses properly
chargeable to the pension fund, be used for or diverted to purposes
other than for the exclusive benefit of the participants in the plan,
their beneficiaries or their estates.
A.
Actuarial valuations.
(1)
The plan's actuary shall perform an actuarial valuation
at least biennially unless the employer is applying or has applied
for supplemental state assistance pursuant to Section 603 of the Act,
whereupon actuarial valuation reports shall be made annually.
(2)
Such biennial actuarial valuation report shall be
made as of the beginning of each plan year occurring in an odd-numbered
calendar year, beginning with the year 1985.
(3)
Such actuarial valuation shall be prepared and certified
by an "approved actuary," as such term is defined in the Act.
(4)
The expenses attributable to the preparation of any
actuarial valuation report or experience investigation required by
the Act or any other expense which is permissible under the terms
of the Act, and which are directly associated with administering the
plan, shall be an allowable administrative expense payable from the
assets of the pension fund. Such allowable expenses shall include
but not be limited to the following:
(a)
Investment costs associated with obtaining authorized
investments and investment management fees;
(b)
Accounting expenses;
(c)
Premiums for insurance coverage on fund assets;
(d)
Reasonable and necessary counsel fees incurred
for advice or to defend the fund; and
(e)
Legitimate travel and education expense for
pension plan officials; provided, however, that the municipal officials
of the employer, in their fiduciary role, shall monitor the services
provided to the plan to ensure that the expenses are necessary, reasonable
and benefit the pension plan and, further provided, that the Plan
Administrator shall document all such expenses item by item and, where
necessary, hour by hour.
B.
Duties of Chief Administrative Officer.
(1)
Such actuarial reports shall be prepared and filed
under the supervision of the Chief Administrative Officer.
(2)
The Chief Administrative Officer of the plan shall
determine the financial requirements of the plan on the basis of the
most recent actuarial report and shall determine the minimum municipal
obligation of the employer with respect to funding the plan for any
given plan year. The Chief Administrative Officer shall submit the
financial requirements of the plan and the minimum municipal obligation
of the employer to the Council annually and shall certify the accuracy
of such calculations and their conformance with the Act.
C.
Benefit modifications. Prior to the adoption of any
benefit plan modification by the employer, the Chief Administrative
Officer of the plan shall provide to the Council a cost estimate of
the proposed benefit plan modification. Such estimate shall be prepared
by an approved actuary, which estimate shall disclose to the Council
the impact of the proposed benefit plan modification on the future
financial requirements of the plan and the future minimum municipal
obligation of the employer with respect to the plan.
A.
Employment rights. Participation in this plan shall
not give any right to any employee to be retained in the employ of
the employer nor shall it interfere with the right of the employer
to discharge any employee and to deal with such employee without regard
to the effect that such treatment might have upon participation in
this plan.
B.
Meaning of certain words. As used herein, the masculine
gender shall include the feminine gender and the singular shall include
the plural in all cases where such meaning would be appropriate. Headings
of articles and sections are inserted only for convenience of reference
and are not to be considered in the construction of the plan.
C.
Information to be furnished by the employer. The employer
shall furnish to the Plan Administrator (and where applicable, the
trustee) information in the employer's possession as the Plan Administrator
and the trustee shall require from time to time to perform their duties
under the plan.
D.
Severability of provisions. Should any provisions
of this plan be held illegal or invalid for any reason, said illegality
or invalidity shall not affect the remaining parts of this plan, and
the plan shall be construed and enforced as if said illegal and invalid
provisions had never been inserted herein.
E.
Incapacity of participant. If any participant shall
be physically or mentally incapable of receiving or acknowledging
receipt of any payment of pension benefits hereunder, the Plan Administrator,
upon the receipt of satisfactory evidence that such participant is
so incapacitated and that another person or institution is maintaining
the participant and that no guardian or committee has been appointed
for the participant, may provide for such payment of pension benefits
hereunder to such person or institution so maintaining the participant,
and any such payments so made shall be deemed for every purpose to
have been made to such participant.
F.
Pension fund for sole benefit of participants. The
income and principal of the pension fund are for the sole use and
benefit of the participants of this plan and, to the extent permitted
by law, shall be free, clear and discharged from and are not to be
in any way liable for debts, contracts or agreements, now contracted
or which may hereafter be contracted, and from all claims and liabilities
now or hereafter incurred by any participant or beneficiary.
G.
Benefits for a deceased participant. If any benefit
shall be payable under the plan to or on behalf of a participant who
has died, if the plan provides that the payment of such benefits shall
be made to the participant's estate and if no administration of such
participant's estate is pending in the court of proper jurisdiction,
then the Plan Administrator, at its sole option, may pay such benefits
to the surviving spouse of such deceased participant, or, if there
be no such surviving spouse, to such participant's then living issue,
per stripes; provided, however, that nothing contained herein shall
prevent the Plan Administrator from insisting upon the commencement
of estate administration proceedings and the delivery of any such
benefits to a duly appointed executor or administrator.
H.
Assets in pension fund. Nothing contained herein shall
be deemed to give any participant or beneficiary any interest in any
specific property of the pension fund or any right except to receive
such distributions as are expressly provided for under the plan.
I.
Personal liability. Subject to the provisions of the
Act and unless otherwise specifically required by other applicable
laws, no past, present or future officer or agent of the employer
or Plan Administrator shall be personally liable to any participant,
beneficiary or other person under any provision of the plan.
[Added 12-13-2021 by Ord. No. 2133]
A.
DROP
DROP PARTICIPANT
DROP PARTICIPANT ACCOUNT
NORMAL RETIREMENT BENEFIT
Definitions. The following words and phrases when used in this section
shall have the meanings given to them in this section only, unless
the context clearly indicates otherwise:
A deferred retirement option plan established as an optional
form of benefit under the plan and being operated by the City of Greensburg.
The separate, interest-bearing, DROP participant account established for a DROP participant under Subsection P.
The retirement benefit payable to a participant of a defined
benefit pension plan at the point in time when the participant satisfies
the age and service requirements for full, unreduced retirement benefits.
B.
Eligibility of employee to participate in DROP. An employee who is
eligible for a normal retirement benefit under the pension plan or
will be eligible for a normal retirement benefit under the pension
plan prior to participation in the DROP is eligible to participate
in the DROP by filing a written application with the retirement Plan
Administrator at least 30 days before the employee's effective date
of retirement from the pension plan. Retirement, for the purpose of
the DROP program, shall be defined as the date that the employee is
retired for the purposes of their pension plan and their enrollment
in the DROP program, but they are otherwise actively employed as a
police officer.
C.
Participation in DROP. An eligible participant may elect to participate
in this DROP for a period not to exceed four years. Upon deciding
to participate in a DROP, a participant must submit, on forms provided
by the Plan Administrator, all of the following:
(1)
A binding and irrevocable letter of resignation from regular
employment with the City of Greensburg which discloses the participant's
intent to retire from the pension plan and specifies the participant's
1) pension plan retirement date, and 2) the date that the employee
shall fully separate from employment with the City.
(2)
A binding and irrevocable written election to participate in the DROP, which must specify the effective date of DROP participation that shall be one day after the participant's specified retirement date, specify the DROP termination date (date of final separation from employment with the City) which satisfies the limitation in Subsection E, detail a DROP participant's rights and obligations under the DROP and include an agreement to forgo:
(a)
Active membership in the pension plan;
(b)
Any growth in the salary base used for calculating the normal
retirement benefit;
(c)
Any additional benefit accrual for retirement purposes, including
length-of-service increments;
(d)
Any additional longevity increments after the date of DROP participation.
(3)
The DROP participant shall be required to provide any other
information required by the City.
(4)
Only service rendered prior to entry into the DROP shall be recognized in calculating the retirement annuity. Service rendered after entry into the DROP shall not count as additional service for the accrual of any additional pension benefit including for the purposes of § 54-9D of the Greensburg Code. An employee shall not receive the retirement annuity payments until fully separated from employment with the City.
D.
Eligibility for disability. If a DROP participant becomes eligible
for a disability benefit, and terminates employment, the monthly normal
retirement benefit of the DROP participant shall terminate.
E.
Effective dates of DROP participation. A retired participant's effective date of participation in a DROP shall begin on the day following the effective date of the participant's retirement, and participation in a DROP shall end on the last day of the participation period specified by the employee pursuant to Subsection C herein (date of separation from employment).
F.
DROP participation termination. A DROP participant may change the DROP termination date to an earlier date within the limitations of Subsection C, but may not change it to a later date than elected at the time of initial DROP participation. No penalty shall be imposed for early termination of DROP participation. Upon either early or regular termination of DROP participation, the DROP participant shall be separated from employment with the City of Greensburg and the plan shall pay the balance in the DROP participant's DROP participant account to the terminating participant as provided in Subsection J. The DROP participant shall be ineligible to reenroll in the DROP. Following separation from employment with the City, should the separated employee seek reemployment with the City, they shall be considered a new employee, with no credit for any prior years of service, and they shall not be entitled to participate in any City-sponsored or -provided pension plan(s) nor any benefits that they otherwise would receive as a retired police officer.
G.
DROP participant contributions. DROP participants shall neither be
required nor permitted to pay contributions into the pension plan
during the DROP participation period.
H.
Fixed retirement benefits, retirement date and DROP dates. Effective with the date of retirement, which must be the day before the effective date of DROP participation, the participant's monthly, normal retirement benefit as calculated under Greensburg Code § 54-9 and pursuant to the provisions of the plan and the parties' collective bargaining agreement, the participant's effective date of retirement and the participant's effective dates of beginning and terminating participation in the DROP shall be fixed (DROP participation end date may be advanced pursuant to Subsection F). There shall be no further retirement benefit accruals after the participant's effective date of retirement.
I.
Normal retirement benefit payments and accruals. The retired participant's
monthly retirement benefit and interest on that benefit compounded
and credited monthly shall be credited to the DROP participant's DROP
participant account, either in the pension trust fund or with a financial
institution as selected by the police officers. Interest shall be
credited on the existing account balance in the DROP participant's
subsidiary DROP participant account as of the first day of the month
coincident with or following the participant's retirement date. The
participant's monthly retirement benefit shall be credited to the
account after the interest has been credited to the existing account
balance in the DROP participant's DROP participant account. The participant's
retirement benefit and interest on that benefit shall continue to
accrue in this manner on the first day of each month thereafter during
the participant's DROP participation. A separate accounting of the
DROP participant's accrued benefit accumulation under the DROP shall
be calculated annually and provided to the participant.
J.
Payment of DROP benefits. On the effective date of a DROP participant's
termination of employment with the City as a DROP participant, participation
in the DROP shall cease; and the plan shall calculate and pay to the
participant the participant's total accumulated DROP benefits in the
DROP participant's DROP participant account subject to the following
provisions:
(1)
The terminating DROP participant or, if the participant is deceased,
the participant's named beneficiary shall elect on a form provided
by the Plan Administrator to receive payment of the DROP benefits
in accordance with one of the following options:
(a)
The balance in the DROP participant's DROP participant account,
less withholding taxes, if any, remitted to the Internal Revenue Service,
and shall be paid within 45 days of the receipt of the election form,
by the plan from the account to the DROP participant or surviving
beneficiary.
(b)
The balance in the DROP participant's DROP participant account
shall be paid within 45 days of the receipt of the election form,
by the plan from the account directly to the custodian of an eligible
retirement plan as defined in Section 402(c)(8)(B) of the Internal
Revenue Code of 1986 or, in the case of an eligible rollover distribution
to the surviving spouse of a deceased participant to an eligible retirement
plan which is an individual retirement account or an individual retirement
annuity as described in Section 402(c)(9) of the Internal Revenue
Code of 1986.
(c)
If the DROP participant or beneficiary fails to elect a method of payment within 60 days after the participant's termination date, the plan shall pay the balance directly to the police officer, or their beneficiary, as provided in Subsection J(1). If no account is provided to the plan, the plan shall mail a check directly to the mailing address of the participant or their beneficiary if deceased.
(d)
The form of payment selected by the DROP participant or surviving
beneficiary shall comply with the minimum distribution requirements
of the Internal Revenue Code of 1986.
(2)
The terminating DROP participant, who has separated from employment,
shall commence receipt of the normal monthly retirement benefit directly
starting with the first day of the month coincident with or next following
termination of employment with the City.
(3)
The monthly retirement benefits that would have been payable
had the DROP participant elected to cease employment and receive a
normal retirement benefit or late retirement benefit shall, upon the
DROP participant commencing participation in the DROP program, be
credited on the first day of each month into a separate ledger account
established by the Plan Administrator to track and accumulate the
participant's DROP benefits. This account shall be designated the
"DROP account." The DROP account shall not contain a guaranteed interest
rate but shall be credited with interest at the actual rate earned
by the fund, and shall be compounded monthly. All earnings or losses
credited to the DROP account will be included in the final cash settlement.
(4)
The DROP shall at all times comply with the annual benefit limitations
of IRC Section 415 and the regulations thereto.
K.
Preretirement benefits. Except for those benefits specified in Subsection C(2) as forgone by the member, a DROP participant shall be eligible for any employee benefits provided to active employees before retirement by the City of Greensburg and those otherwise provided by law, including, but not limited to, hospitalization provided in Sections 1, 2, 3, 5 and 6 of Article XVI of the parties' collective bargaining agreement, benefits under the Act of June 2, 1915 (P.L. 736, No. 338), known as the "Workers' Compensation Act"; the Act of June 28, 1935 (P.L. 477, No. 193), referred to as the "Enforcement Officer Disability Benefits Law"; the Act of December 5, 1936 (2nd Sp. Sess., 1937 P.L. 2897, No. 1), known as the "Unemployment Compensation Law"; the Act of June 24, 1976 (P.L. 424, No. 101), referred to as the "Emergency and Law Enforcement Personnel Death Benefits Act"; and the Public Safety Officers' Benefit Act of 1976 (Public Law 94-430, 42 U.S.C. § 90 stat. 1347).
L.
DROP benefits for designated beneficiary. If a DROP participant dies, the participant's designated beneficiary shall be entitled to apply for and receive the benefits accrued in the DROP participant's DROP participant account as provided in Subsection J.
M.
Final credited monthly retirement benefit. The monthly retirement
benefit accrued in the DROP participant's DROP participant account
during the month of a DROP participant's death shall be the final
monthly retirement benefit credited for DROP participation.
N.
DROP eligibility terminates upon participant's death. A DROP participant's
eligibility to participate in the DROP terminates upon the death of
the DROP participant. If a DROP participant dies on or after the effective
date of participation in the DROP but before the initial monthly retirement
benefit of the participant accruable for the month has accrued in
the DROP participant's DROP participant account, the pension plan
shall pay the monthly retirement benefit as though the participant
had not elected DROP participation and had died after the employee's
effective date of retirement but before receipt of the retired participant's
first normal retirement benefit.
O.
Survivors ineligible for active employee's death benefit. The survivors
of a DROP participant who dies during participation in the DROP shall
not be eligible to receive retirement death benefits payable in the
event of the death of an active employee, as the employee is already
retired for the purposes of retirement benefits. The death benefits
to survivors shall be those of a retired employee.
P.
DROP participant account. As the City of Greensburg establishes a DROP, it shall establish a DROP participant account either with a third-party financial institution or as a separate interest-bearing, ledger account in its pension trust fund for each DROP participant. The election shall be made by the police officers no later than the end of business on the effective date of this section and the collective bargaining agreement, effective January 1, 2022. Any delay in election shall not be held against the City in creating the account. The City shall create the account as quickly as administratively feasible following the police officer's election of financial institution. In the event that the account is through the pension fund, the account balance shall be accounted for separately but need not be physically segregated from other pension trust fund assets, and a separate, interest-bearing, subsidiary DROP participant account shall be established for each DROP participant. While a retired participant is employed as a DROP participant, the participant's monthly retirement benefit and interest on that benefit shall be credited to the DROP participant account under Subsection I. The interest shall be compounded and credited monthly. When a DROP participant terminates employment with the City, the participant's total accumulated benefits shall be calculated, charged to the DROP participant account and paid out pursuant to Subsection J. In the event that the DROP accounts are held in the pension fund, the balance in the DROP participant's account shall be excluded from actuarial valuation reports of the plan prepared and filed as required. The DROP participant's account shall be held for the exclusive benefit of DROP retired participants who are or were DROP participants and for the beneficiaries of these participants or an alternate payee pursuant to Subsection J.
