As used in this article, the following terms shall have the
meanings indicated:
ACTUARIAL EQUIVALENT
A.
The present value of any benefit under the terms of this plan
will be the actuarial equivalent of the accrued benefit in the normal
form of benefit commencing at normal retirement date.
B.
In compliance with Act 600, this plan does not provide optional forms of benefit payment;
therefore, no actuarial equivalence for determining optional forms
need be determined.
C.
Limitations on benefits.
(1)
For the purpose of implementing the limitations on benefits
of IRC Section 415, actuarial equivalence shall be determined based
on the following mortality and interest assumptions:
(a)
Mortality table: UP-1984 (-2).
(b)
Interest rate: 5.00% per annum, compounded annually.
(2)
For the purpose of applying the limitations on benefits of §
52-9.2, the applicable mortality table is the applicable mortality table described in Treasury Regulation Section 1.417(e)-1(d)(2) in effect for the plan year that contains the annuity starting date. The applicable interest rate is the annual rate of interest as determined under Treasury Regulation Section 1.417(e)-1(d)(3) for the second month preceding the first day of the plan year that contains the annuity starting date.
COMPENSATION/AVERAGE MONTHLY COMPENSATION
A.
Compensation; exclusions from compensation.
(1)
(a)
Any earnings reportable as W-2 wages for federal income tax
withholding purposes, plus elective contributions, for the applicable
period. Elective contributions are amounts excludable from the employee's
gross income and contributed by the employer, at the employee's
election to:
[1]
A cafeteria plan [excludable under IRC Section 125 and as provided in §
52-9.2A(5)(c)];
[2]
A tax-sheltered annuity [excludable under IRC Section 403(b)];
or
[3]
A deferred compensation plan (excludable under IRC Section 457).
(b)
Picked-up contributions under IRC Section 414(h)(2) shall be
included in the participant's compensation.
(c)
Any reference in this plan to compensation shall be a reference
to the definition in this section, unless the plan reference specifies
a modification to this definition. The plan administrator shall take
into account only compensation actually paid by the employer for the
relevant period. A compensation payment includes compensation by the
employer through another person under the common paymaster provisions
in IRC Sections 3121 and 3306. Compensation from a related employer
that is not a participating employer under this plan shall be excluded.
(2)
Exclusions from compensation. Notwithstanding the provisions of Subsection
A(1), the following types of remuneration shall be excluded from the participant's compensation:
(a)
Unused vacation, personal days, and sick pay paid on account
of termination of employment.
(b)
Any lump sum payment made upon termination of employment.
B.
Limitations on compensation.
(1)
For any plan year beginning after December 31, 2001, the plan
administrator shall take into account only the first $200,000 [or
beginning January 1, 2003, as adjusted for cost-of-living increases
in accordance with IRC Section 401(a)(17)(B)] of any participant's
annual compensation for determining all benefits provided under the
plan for the applicable twelve-month period. The compensation dollar
limitation in effect for a plan year shall be the limitation amount
in effect on January 1 of the calendar year in which the plan year
begins. In determining benefits in plan years beginning on or after
January 1, 2002, the annual compensation limit for determination periods
beginning before January 1, 2002, shall be $150,000 for any determination
period beginning in 1996 or earlier; $160,000 for any determination
period beginning in 1997, 1998, or 1999; and $170,000 for any determination
period beginning in 2000 or 2001. For any plan year beginning after
December 31, 1995, the plan administrator shall take into account
only the first $150,000 [or beginning January 1, 1995, as adjusted
for cost-of-living increases in accordance with IRC Section 401(a)(17)(B)]
of any participant's compensation for determining all benefits
provided under the plan for a determination period. If the plan should
determine compensation on a period of time that contains less than
12 calendar months (such as for a short plan year), the annual compensation
dollar limitation shall be an amount equal to the otherwise applicable
annual compensation dollar limit for the plan year, multiplied by
the ratio obtained by dividing the number of full months in the period
by 12.
(2)
Notwithstanding the preceding, in the case of an eligible participant,
the annual compensation dollar limitation shall not apply to the extent
that the application of the limitation would reduce the amount of
compensation that is allowed to be taken into account under the plan
below the amount that was allowed to be taken into account under this
plan as in effect on July 1, 1993. For this purpose, an "eligible
participant" is an individual who first became a participant in the
plan during a plan year prior to the first day of the first plan year
beginning after December 31, 1995.
C.
AVERAGE MONTHLY COMPENSATIONThe average of a participant's monthly compensation over the thirty-six-consecutive-month period ending on the date of employment termination. If a participant's entire period of service for the employer is less than the specified period, compensation shall be averaged on a monthly basis over the participant's entire period of service.
D.
The annual compensation taken into account in determining average annual compensation shall be subject to the compensation dollar limitation described in Subsection
B(1) as in effect for each particular year.
DATES/YEARS
B.
The effective date of the plan is October 1, 1957.
(1)
The effective date of this amendment and restatement is January
1, 2008; provided, however, that the plan provisions required to comply
with the Tax Reform Act of 1986 (TRA '86), the Omnibus Budget
Reconciliation Act of 1986 (OBRA '86), the Omnibus Budget Reconciliation
Act of 1987 (OBRA '87), and the Technical and Miscellaneous Revenue
Act of 1988 (TAMRA) shall generally be effective on the first day
of the plan year beginning after December 31, 1988, except as specified
otherwise in this plan or in TRA '86, OBRA '86, OBRA '87
or TAMRA for a government-sponsored plan. The plan provisions required
to comply with the 1989 Revenue Reconciliation Act shall generally
be effective on the first day of the plan year beginning after December
31, 1989, except as specified otherwise in this plan or in said Act.
The plan provisions required to comply with the Unemployment Compensation
Amendments of 1992 shall be effective on January 1, 1993, except as
specified otherwise for a government-sponsored plan. The plan provisions
required to comply with the Omnibus Budget Reconciliation Act of 1993
shall generally be effective on the first day of the plan year beginning
after December 31, 1993, except as specified otherwise in said Act.
(2)
The plan provisions required to comply with the Family and Medical
Leave Act shall be effective August 5, 1993; the plan provisions required
to comply with the Uniformed Services Employment and Re-Employment
Rights Act of 1994 shall be effective December 12, 1994; the plan
provisions required to comply with the Retirement Protection Act of
1994 shall generally be effective on the first day of the first limitation
year beginning after December 31, 1994; the plan provisions required
to comply with the Small Business Job Protection Act of 1996 shall
generally be effective on the first day of the plan year beginning
after December 31, 1996; the plan provisions required to comply with
the Taxpayer Relief Act of 1997 shall generally be effective on the
first day of the plan year beginning after August 5, 1997; the plan
provisions required to comply with the Economic Growth and Tax Relief
Reconciliation Act of 2001 shall generally be effective on the first
day of the plan year beginning after December 31, 2001; the plan provisions
required to comply with the Pension Funding Equity Act of 2004 (PFEA)
shall be effective for distributions made during the plan year beginning
on or after January 1, 2004, and the plan year beginning on or after
January 1, 2005; and the plan provisions required to comply with the
Pension Protection Act of 2006 that are effective prior to the first
day of the first plan year beginning on or after January 1, 2008,
shall be effective as of the first day of the first plan year beginning
on or after January 1, 2006, except as specified otherwise in this
plan or in said Acts for a government-sponsored plan.
D.
PLAN YEARThe twelve-consecutive-month period beginning on January 1 and ending on December 31.
EMPLOYEE
A.
EMPLOYEEAny person employed by the employer. The term "employee" shall include any employee of the employer maintaining the plan or of any other employer required to be aggregated with such employer under IRC Section 414(b), (c), (m) or (o), as such provisions may be interpreted to apply to a governmental entity by the Internal Revenue Service. The term "employee" shall also include any leased employee deemed to be an employee of any such employer as provided in IRC Section 414(n) or (o) and as defined in Subsection
B.
B.
LEASED EMPLOYEEAn individual (who otherwise is not an employee of the employer) who, pursuant to a leasing agreement between the employer and any other person, has performed services for the employer [or for the employer and any persons related to the employer within the meaning of IRC Section 414(n)(6)] on a substantially full-time basis for at least one year, and such services are performed under the primary direction or control of the employer. If a leased employee is treated as an employee by reason of this subsection, compensation from the leasing organization that is attributable to services performed for the employer shall be considered as compensation under the plan. Contributions or benefits provided a leased employee by the leasing organization that are attributable to services performed for the employer shall be treated as provided by the employer.
EMPLOYER
Swatara Township, a political subdivision of the Commonwealth
of Pennsylvania, or any successor entity that may assume the obligations
of this plan with respect to its employees by becoming a party to
this plan.
PARTICIPANT/BENEFICIARY/SPOUSE
A.
PARTICIPANTAn eligible employee of the employer who becomes a member of the plan pursuant to the provisions of §
52-6 or a former employee who has an accrued benefit under the plan.
B.
BENEFICIARYA person designated by a participant who is or may become entitled to a benefit under the plan. The beneficiary may be someone other than the participant's spouse, but only to the extent that this plan provides for a benefit to be payable to a nonspouse beneficiary. A beneficiary who becomes entitled to a benefit under the plan remains a beneficiary under the plan until the trustee has fully distributed his benefit to him. A beneficiary's right to (and the plan administrator's or a trustee's duty to provide to the beneficiary) information or data concerning the plan shall not arise until he first becomes entitled to receive a benefit under the plan.
C.
SPOUSEThe person married to the participant at the time of the determination as evidenced by a marriage license valid under the laws of the place of issuance.
[Amended 12-10-2014 by Ord. No. 2014-10]
PLAN
Swatara Township Police Pension Plan as set forth herein
and as it may be amended from time to time.
REFERENCES
A.
ACT 205The Municipal Pension Plan Funding Standard and Recovery Act, Act of December 18, 1984, P.L. 1005, No. 205, as amended, 53 P.S. § 895.101 et seq., as enacted by the Commonwealth of Pennsylvania.
B.
ACT 600The Police Pension Fund Act, Act of May 29, 1956, P.L. 1804, No. 600, as amended, 53 P.S. § 761 et seq., as enacted by the Commonwealth of Pennsylvania. Cites herein to this Act shall use the Purdon Statute instead of the section number.
C.
ERISAThe Employee Retirement Income Security Act of 1974, as amended.
D.
IRCThe Internal Revenue Code of 1986, as it may be amended from time to time.
SERVICE
A.
SERVICEAny period of time the employee is in the employ of the employer, including any period the employee is absent due to vacation, holidays, or sickness. "Separation from service" means that the employee no longer has an employment relationship with the employer.
B.
HOUR OF SERVICEEach hour for which an employee is paid or entitled to payment for the performance of duties for the employer.
D.
PERIOD OF SEVERANCEA continuous period of time during which the employee is not employed by the employer and is not credited with an hour of service. Such period begins on the date the employee retires, terminates service or, if earlier, the date on which the employee was otherwise first absent from service.
E.
Credit for military service.
(1)
Any employee employed as a member of the police force who has
been a regularly appointed employee for a period of at least six months
and who thereafter is inducted into the military service of the United
States shall receive credit for all such military service if he returns
to employment with the employer within six months after his separation
from military service.
(2)
Further, any employee who entered into the military service
of the United States before employment with the employer shall receive
credit for each year of military service or fraction thereof for a
period not to exceed five years. Such service shall not be credited
if the employee fails to make the required payment. The required payment
for such crediting shall be computed by applying the lesser of 10%
or the average normal cost rate for borough and Township police pension
plans as certified by the Public Employee Retirement Study Commission
to the employee's average annual rate of compensation over the
first three years of service and multiplying the result by the number
of years and fractional parts of years of creditable nonintervening
military service being purchased together with interest at the rate
of 4.75% compounded annually from the date of employment to the date
of payment, as provided under Act 600, 53 P.S. § 770(b).
(3)
No service shall be credited under this Subsection
E if the employee is entitled to receive retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other governmental agency, with the exception of an employee eligible to receive military retirement pay earned by a combination of active duty and nonactive duty with a reserve or national guard component of the armed forces, which retirement pay is payable only upon attainment of a specified age and period of service under 10 U.S.C. Ch. 67 (relating to retired pay for nonregular service).
(4)
Notwithstanding the preceding, effective December 12, 1994,
contributions, benefits, and service credit with respect to qualified
military service will be provided in accordance with IRC Section 414(u)
and the applicable Pennsylvania statutes. An employee reemployed after
qualified military service shall not be treated as having incurred
a break in service, for purposes of vesting and benefit accruals,
solely because of an absence due to qualified military service.
(5)
Effective with respect to deaths occurring on or after January 1, 2007, in the case of a participant who dies while performing qualified military service, the beneficiary(ies) of the participant shall be entitled to any benefits payable under §
52-8A and
B(2) and
(3) that would have been payable had the participant resumed and then terminated employment on account of death. Years of vesting service shall be credited under this provision for purposes of determining the amount of any death benefit payable.
[Added 12-14-2011 by Ord.
No. 2011-11]
F.
Other service credited. If the employer is a member of an affiliated
service group under IRC Section 414(m) or a controlled group of corporations
under IRC Section 414(b), or any other entity required to be aggregated
with the employer pursuant to IRC Section 414(o), as these Internal
Revenue Code provisions are applied to a governmental entity, service
shall be credited for any employment for any period of time for any
other member of such group. Service shall also be credited for any
leased employee who is considered an employee for purposes of this
plan under IRC Section 414(n) or (o).
G.
Year of service; crediting years of service; predecessor service.
(1)
YEAR OF SERVICETwelve months of service, excluding any breaks in service. For purposes of determining an employee's initial year of service upon his employment, the initial year of service shall commence on the employee's first day of employment. The first day of employment is the first day the employee performs an hour of service. The first day of reemployment is the first day the employee performs an hour of service following a break in service. An initial year of service shall end on the day immediately preceding the first anniversary of the employee's date of hire or rehire. Any subsequent year of service shall commence on the day following the completion of the immediately preceding year of service.
(2)
Crediting years of service. Service may be credited for the
purpose of eligibility to participate, vesting, benefit accrual, or
determining the benefit payable under the normal retirement benefit
formula. Generally, no service shall be credited for periods during
which the employee performs no services for the employer. Further,
no more than one year of service will be credited for any twelve-consecutive-month
period.
(3)
Predecessor service. If the employer maintains the plan of a
predecessor employer, service with such predecessor employer shall
be treated as service for the employer. If the employer does not maintain
the plan of a predecessor employer, then service as an employee of
a predecessor employer shall not be considered as service under the
plan. The plan may be amended to provide for the crediting of service
performed for a disbanded police force under an intermunicipal agreement
pursuant to the Intergovernmental Cooperation Law as provided in 53
P.S. § 770(e) and (f).
TRUST
The qualified trust created under the employer's plan.
The trust shall be known as the "Swatara Township Police Pension Fund."
TRUSTEE
The person or persons appointed by the employer to be the
trustee of the trust or any duly appointed successor trustee.