The Borough of Kutztown, Berks County, Pennsylvania (the Borough), being a member municipality of the Pennsylvania Municipal Retirement System (the System), hereby elects to amend its Municipal Pension Plan administered by the System in accordance with Article IV of the Pennsylvania Municipal Retirement Law, 53 P.S. § 881.101 et seq. as amended (the Retirement Law) and does hereby agree to be bound by all of the requirements and provisions of the Retirement Law and the Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101 et seq., and to assume all obligations, financial and otherwise, placed upon member municipalities.
[Adopted 1-18-2022 by Ord. No. 2-2022[1]]
[1]
Editor's Note: This ordinance also repealed former Art. III, Nonuniformed Employees, adopted 4-17-2012 by Ord. No. 1-2012.
Membership in the System shall be mandatory for all permanent, nonuniformed employees and existing part-time employees who are already enrolled in the plan (i.e., "municipal employee" as defined in the Pennsylvania Municipal Retirement Law) of Kutztown Borough. Membership for elected officials, part-time employees and employees hired on a temporary or seasonal basis, whether full or part time, is prohibited, as is membership for individuals paid only on a fee basis.
Credit for prior service for original members is granted for each year or partial year thereof that the member was employed by Kutztown Borough from original date of hire. Benefits provided to members in the agreement dated on or about January 21, 2022, and effective January 1, 2022, by and between the Board and Kutztown Borough and approved by this article (the "Contract"), shall accrue based on all credited service granted and earned in accordance with this section.
[Amended 12-17-2024 by Ord. No. 4-2024]
A.
As part of this article, the Borough agrees that the System shall administer and provide the benefits set forth in the contract effective September 1, 2020. The passage and adoption of this article by the Borough is an official acceptance of the contract and the financial obligations resulting from the administration of said benefit package. The Borough hereby assumes all liability for any unfundedness created due to the benefit structure set forth in the contract.
B.
As part of this article, the Borough agrees that the System shall administer and provide the benefits set forth in the contract effective January 1, 2022. The passage and adoption of this article by the Borough is an official acceptance of the contract and the financial obligations resulting from the administration of said benefit package. The Borough hereby assumes all liability for any unfundedness created due to the benefit structure set forth in the contract.
A duly certified copy of the ordinance enacting this article and an executed contract shall be filed with the System. Membership for the Municipal employees of the Borough in the System shall be effective the first day of January, 1963, with the revised plan structure reflected in the Contract, effective January 1, 2022.
The Borough intends this article to be the complete authorization of the Borough plan and therefore specifically repeals the previous Contract and Ordinance No. 1-2012, enacted on April 17, 2012, either immediately or on January 1, 2022, which is the effective date of the amended Contract dated January 21, 2022, between the Pennsylvania Municipal Retirement System and the Borough, whichever is later.