City of Greensburg, PA Police Pension

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.

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.

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.

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.

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.

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:

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;

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;

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;

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.

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.

§ 54-10 Disability retirement.

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.

Disability retirement benefit.

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.

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]

Payment of disability benefit.

Payment of a disability retirement benefit shall be made in the normal form under § 54-12A commencing on the participant's disability retirement date.

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.

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.

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.

§ 54-11 Death benefits.

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.

Survivor benefit. Upon the death of a participant the following survivor benefits shall apply:

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.

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.

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.

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.

§ 54-12 Payment of benefits.

Normal form. The normal form for payment of retirement benefits shall be a monthly annuity for the life of the participant.

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.

Required distributions.

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:

Not later than the required beginning date; or

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).

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.

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.

For purposes of this section, the following definitions and procedures shall apply:

"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.

The phrase "designated beneficiary" shall mean any individual designated by the employee under this plan according to its rules.

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).

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.

Direct rollovers.

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.

ELIGIBLE ROLLOVER DISTRIBUTION

For purposes of this section, the following definitions shall apply:

DIRECT ROLLOVER

A payment by the plan to the eligible retirement plan specified by the distributee.

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.

ELIGIBLE RETIREMENT PLAN

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.

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.

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.

§ 54-13 Termination of employment.

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.

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.

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.

§ 54-14 Administration.

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.

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.

Authority and duties of the Plan Administrator.

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:

To construe this plan;

To determine all questions affecting the eligibility of any employee to participate herein;

To compute the amount and source of any benefit payable hereunder to any participant or beneficiary;

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

§ 54-15 The pension fund.

Operation of the pension fund.

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.

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.

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.

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.

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:

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.

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.

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.

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.

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.

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.

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.

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.

§ 54-16 Amendment and termination of pension plan or pension fund.

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;

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;

That no amendment shall provide for the use of funds or assets held under this plan other than for the benefit of employees and no funds contributed to this plan or assets of this plan shall, except as provided in § 54-16E, ever revert to or be used or enjoyed by the employer; and

That no amendment to the plan which provides for a benefit modification shall be made unless the cost estimate described in § 54-17C has been prepared and presented to the Council in accordance with the Act.

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.

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.

Distribution upon termination.

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.

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.

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.

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.

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.

§ 54-17 Provisions to comply with the Municipal Pension Plan Funding Standard and Recovery Act of 1984.

Actuarial valuations.

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.

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.

Such actuarial valuation shall be prepared and certified by an "approved actuary," as such term is defined in the Act.

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:

Investment costs associated with obtaining authorized investments and investment management fees;

Accounting expenses;

Premiums for insurance coverage on fund assets;

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.

Duties of Chief Administrative Officer.

Such actuarial reports shall be prepared and filed under the supervision of the Chief Administrative Officer.

NORMAL RETIREMENT BENEFIT

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.

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.

§ 54-18 Miscellaneous provisions.

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.

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.

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.

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.

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.

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.

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.

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.

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.

§ 54-18.1 Deferred Retirement Option Plan.

[Added 12-13-2021 by Ord. No. 2133]

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:

DROP

A deferred retirement option plan established as an optional form of benefit under the plan and being operated by the City of Greensburg.

DROP PARTICIPANT

A retired participant of the City of Greensburg Police Pension Plan who is eligible to participate in a DROP under Subsection B and who has elected to participate in a DROP under Subsection C.

DROP PARTICIPANT ACCOUNT

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.

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.

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:

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.

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:

Active membership in the pension plan;

Any growth in the salary base used for calculating the normal retirement benefit;

Any additional benefit accrual for retirement purposes, including length-of-service increments;

Any additional longevity increments after the date of DROP participation.

The DROP participant shall be required to provide any other information required by the City.

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.

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.

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).

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.

DROP participant contributions. DROP participants shall neither be required nor permitted to pay contributions into the pension plan during the DROP participation period.

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.

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.

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:

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:

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.

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.

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.

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.

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.

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.