[HISTORY: Adopted by the Board of Commissioners
of the Township of Nether Providence as indicated in article histories.
Amendments noted where applicable.]
[Former Ch. 53, Art. I, Police Pension Fund,
adopted 2-10-1983 by Ord. No. 520, as amended, was superseded 8-10-2006
by Ord. No. 713, which ordinance established a Police Pension Plan,
effective 1-1-2006. Said plan is on file in the Township offices.]
[Adopted 3-8-1984 as Ord. No. 527]
Unless otherwise expressly stated, the following
terms shall have, for purposes of interpreting this article, the meanings
as set forth below:
A participant's accrued pension benefit shall be equal to
the expected normal retirement benefit multiplied by a fraction. The
expected normal retirement benefit shall be based upon the participant's
average annual compensation as of the termination and the social security
laws in effect as of such termination date. The fraction shall be
equal to the participant's credited service as of the termination
date, divided by the participant's total expected credited years of
service as of the normal retirement date.
A benefit determined by the plan administrator, or any actuary,
to be equal to another benefit or to a dollar amount in accordance
with the 1971 Group Annuity Mortality Table and the rate of interest
assumed in the most recent State Actuarial Investigation Report.
A person skilled in calculating the value of life interests,
annuities and insurances, who shall be retained by the Commissioners
to advise them upon the establishment, regulation and maintenance
of the Pension Fund.
The age an employee attained on the nearest birthday.
The anniversary date will be one year following the date
of employment.
[Amended 4-9-2009 by Ord. No. 741]
The basic compensation paid and accrued to a participant
during the plan year, excluding overtime and all other compensation.
The average annual compensation earned by a participant during
the last 36 months of employment prior to retirement or termination.
The average monthly compensation during the last 36 months.
A participant shall be credited with a year of service for
any plan year in which the participant completes at least 1,000 hours
of service with the employer. Any year in which the participant has
waived participation shall be excluded for purposes of determining
"credited service."
Upon death while in the employ of the Township and while
a participant in the plan, the participant shall be vested in the
accrued normal retirement benefit, and the beneficiary shall be entitled
to received the actuarial equivalent of the accrued normal retirement
benefit as of the day immediately preceding death. If the sum of the
participant's contributions with interest exceeds the actuarial equivalent
of the accrued benefit, such sum shall be paid in lieu of the actuarial
equivalent. In the event of death following retirement, benefits shall
be paid in accordance with the form of benefit elected at retirement.
In the event of the death of the participant and the contingent annuitant
after retirement, the beneficiary shall be entitled to receive an
amount, if any, equal to the sum of the participant's contributions,
with interest, less the payments made to both the participant and
the contingent annuitant.
If a participant retires from active employment with the
Township because of a permanent and total disability for a non-service-related
reason, the participant shall be vested in the accrued normal retirement
benefit and shall be entitled to receive a disability retirement benefit.
If the participant has suffered a service-related disability which
is permanent and total, the benefit shall be offset by 100% of any
amounts received under workmen's compensation or any similar payment
compensation plan to which the Township has contributed. Any amounts
received under the Federal Social Security Program shall reduce the
disability retirement benefit by 50% of such social security benefits
actually received by the participant. Disability shall be determined
by the Commissioners of the Township. If, after disability, the participant
becomes eligible for a normal retirement benefit, the disability retirement
benefit shall cease, and the normal retirement benefit shall commence
as of such date. If, after disability, the participant dies, the beneficiary
shall be entitled to receive an amount, if any, equal to the sum of
the participant's contributions, with interest, less the payments
made to the participant.
A participant may retire early if the participant has attained
age 65 and completed 10 years of service. The early retirement benefit
shall be computed in the same manner as the normal retirement benefit
and shall be based upon average annual compensation at the early retirement
date. Said benefit shall be reduced by 1/15 for each year between
the early retirement date and the normal retirement date. The participant's
early retirement benefit shall commence at "early retirement."
The "effective date" of the Pension Plan shall be January
1, 1958. The "effective date" of the amended and restated Pension
Plan shall be January 1, 1984.
The Township of Nether Providence.
December 31.
The Municipal Employees' Pension Fund of the Township of
Nether Providence.
The "normal retirement date" for each participant shall be
the first of the month coincident with or next following the 65th
birthday. If the participant has not completed 15 years of credited
service upon attainment of age 65, the "normal retirement date" shall
be the date upon which the participant completes 15 years of service.
Each employee who has fulfilled the requirements of § 53-7 hereof and has not waived participation.
A contract between the Township and the trustee stipulating
the terms by which the fund is held, invested, distributed, accounted
for and to be terminated.
A fiduciary appointed by the Commissioners of the Township
of Nether Providence to hold in trust the Municipal Employee's Pension
Fund.
[Amended 12-10-1992 as Ord. No. 581]
Each employee who is not a participant of the
police force and not a Commissioner or Tax Collector may be a participant
of this Pension Plan upon completion of the eligibility requirements.
Any employee shall be eligible to enter the plan on the anniversary
date next following the completion of one year of service. For purposes
of computing years of service, credit will be given from the date
of permanent appointment, provided that participation hereunder has
not been waived.
A.
If a participant who entered the plan after January
1, 1984, terminates employment prior to the normal or early retirement
date, the participant shall be entitled to a nonforfeitable percentage
of the accrued benefit according to the following schedule:
|
Years of Service
|
Vested Percentage
| |
|---|---|---|
|
Less than 1 year
|
0%
| |
|
1 year but less than 2
|
10%
| |
|
2 years but less than 3
|
20%
| |
|
3 years but less than 4
|
30%
| |
|
4 years but less than 5
|
40%
| |
|
5 years but less than 6
|
50%
| |
|
6 years but less than 7
|
60%
| |
|
7 years but less than 8
|
70%
| |
|
8 years but less than 9
|
80%
| |
|
9 years but less than 10
|
90%
| |
|
10 or more years
|
100%
| |
B.
Any participant who entered the plan prior to January
1, 1984, shall be vested in accordance with the following schedule:
|
Years of Service
|
Vested Percentage
|
|---|---|
|
Less than 1 year
|
0%
|
|
1 year but less than 2
|
20%
|
|
2 years but less than 3
|
40%
|
|
3 years but less than 4
|
60%
|
|
4 years but less than 5
|
80%
|
|
5 years or more
|
100%
|
C.
The participant shall commence to receive the vested
accrued pension benefit on the first of the month coincident with
or next following the normal retirement date, unless application is
made to the Commissioners for another form of benefit payment. If
the actuarial equivalent of the participant's deferred vested benefit
is less than the accumulated contributions with interest, the participant
shall be entitled to receive a return of the employee contributions
plus interest, as determined under § 53-11 and shall receive
no further benefit from the plan.
[Amended 12-10-1992 as Ord. No. 581]
The monthly pension at normal retirement date
shall be based on 50% of the average monthly compensation during the
last 36 months.
Each participant shall contribute 3% of the
base earnings to the plan. Such employee contributions shall be credited
with interest at the rate of 3% compounded annually. Effective January
1, 1984, such credited interest rate shall be 5 1/2%. Any balance
of contributions determined by the plan actuary to be necessary for
the funding of the fund shall be made by the Township.
A participant may elect to receive the benefit
in any manner acceptable to the Commissioners. The following forms
of benefit payment may be considered acceptable to the Commissioners
and shall be the actuarially determined equivalent of any annuity
payable for the life of a participant:
A.
A life annuity with no certain period.
B.
A life annuity with a certain period of five or 10
years guaranteed.
C.
A joint and survivor annuity with survivor benefit
equal to 50%, 75% or 100% of the joint annuity.
D.
Payments in equal quarterly, semiannual or annual
installments not exceeding 10 years.
E.
A lump sum payment not in excess of $1,750, unless
such lump sum payment is a return of the participant's employee contributions
with credited interest.
Each participant who has not elected an option
as offered above shall receive a monthly pension benefit payable for
life, with the first payment commencing upon the retirement date,
and thereafter payments will be made in like amount on the first day
of each subsequent month, continuing to and terminating with the month
in which the death of the former participant takes place. After such
series of payments shall be completed, no further payments of any
kind will be made to the beneficiary or the estate of the deceased
participant unless the accumulated employee contributions with interest
exceed the total payments made.
This Pension Plan shall be financed by annual
payments made by the Township, by employee contributions and other
payments to the Nether Providence Township Municipal Employees' Pension
Trust and shall be subject to the requirements of the separate trust
agreement with the trustee.
[Added 7-13-1989 by resolution]
Effective January 1, 1989, the monthly benefit
payable to each retired participant and to each beneficiary of a deceased
retired participant who were receiving benefits under the plan as
of December 1989 shall be increased by a percentage equal to the amount
in Sub§ A or B, whichever is applicable, as follows:
A.
In the case of a retired participant, 5%, plus 1/4
of 1% for each month that the participant was retired as of January
1, 1989.
B.
In the case of a beneficiary of a deceased retired
participant, 5%), plus 1/4 of 1% for each month that the participant
would have been retired as of January 1, 1989.
Any amendments and revisions may be made by
resolution of the Commissioners.
