The Borough of Prospect Park hereby exercises
its right to execute and deliver to the Secretary of Labor and Industry
of the Commonwealth of Pennsylvania, designated as the "State Agency,"
under Act No. 491 of the Pamphlet Laws of the Commonwealth of Pennsylvania
of 1951, the plan or plans and agreement required under Section
6 of the said Act of Assembly and Section 218 of Public Law No. 734
of the 81st Congress of the United States of America, and to do all
other necessary things to effectuate social security coverage of employees
and officers of the Borough of Prospect Park.
The Borough Secretary and Borough Treasurer
are hereby authorized and directed to establish a system of payroll
deductions to be matched by payments by the Borough of Prospect Park
and to pay the amount of said deductions and matching payments into
the Contribution Fund of the Social Security Act through the office
of the State Agency and to make charges of this tax to the account,
fund or appropriation from which wage or salary payments are issued
to employees of the Borough of Prospect Park. All such payments shall
be made in accordance with the provisions of the said Act of Assembly
and Act of Congress and regulations promulgated by the State Agency
and the Federal Security Administrator. Any and all such payments
which shall be delinquent shall bear interest at the rate of one-half
of one percent (1/2 of 1%) per month until such time as payments are
made.
The Borough's payment as matching funds, as
provided in Section 4 of said Act No. 491 of the Commonwealth of Pennsylvania, shall be made from the same fund or appropriation from
which wage or salary payments are made to the employee whose contributions
are matched by the Borough, and appropriation is hereby made from
the said fund in such amounts are as necessary to be paid into the
Contribution Fund by the Borough of Prospect Park.
The Mayor and the Secretary of the Borough are hereby authorized to enter into an agreement with the State Agency in accordance with §
40-1 of this chapter and in accordance with the provisions of the Act of Assembly of the Commonwealth of Pennsylvania of 1951, No. 491, and in accordance with Section 218 of the said Public
Law No. 734 of the 81st Congress of the United States. Such plan and
agreement shall include the following provisions:
A. That the participation of the Borough of Prospect
Park shall commence as of the first day of January 1951.
B. That each employee subject to the terms of this chapter
as hereinafter provided shall pay to the Borough for transmission
to the Contribution Fund 1 1/2% of his wages or salary from January
1, 1951, until such time as the rate shall be changed by applicable
legislation of the United States of America or of the Commonwealth
of Pennsylvania; and in the event of any change in rate, the deduction
shall be at the percentage required by the said applicable Act of
Assembly or Act of Congress.
C. That the Borough of Prospect Park shall contribute
a matching fund equivalent to the amount of payroll deductions from
the wages or salaries of employees.
D. That the persons subject to said payroll deductions and entitled to the benefits of Old Age and Survivors' Insurance Plan shall be all employees of the Borough except those excluded under the provisions of §
40-5 of this chapter.
E. That there shall be paid into the Contribution Fund
interest at the rate set by the applicable Act of Congress with respect
to all delinquent amounts and that the interest on the payroll deductions
be paid by the employee affected and the interest on the matching
funds be paid by the Borough.
F. That the Borough Secretary and Borough Treasurer shall
make all such reports and provide all such information to the State
Agency and the Federal Security Administrator or their respective
successors, from time to time, as may be required by applicable legislation
and by regulations promulgated thereunder.
G. That the plan and agreement so entered into may be
modified to include groups or services in addition to those originally
established in the plan in the event that the same is hereafter authorized
by an ordinance of Council and by applicable Acts of Assembly of the
Commonwealth of Pennsylvania and Acts of the Congress of the United
States.
H. That the agreement may be terminated by an ordinance
of Council and agreements between the State Agency and the Borough
of Prospect Park in the manner authorized by the Acts of Assembly
of the Commonwealth of Pennsylvania and Acts of Congress of the United
States.
The following employees of the Borough of Prospect
Park shall not be included as covered employees:
A. Services of an emergency nature provided by persons
temporarily employed only for the purposes of meeting an emergency
of limited duration, including but not limited to emergency policemen,
emergency highway workman and emergency library and recreation employees.
B. Services of the Borough Engineer so long as he is
employed solely on a fee basis, and services of any other employee
paid solely upon a fee basis.
C. Services of the Collector or Receiver of Taxes or
of any employee thereof or deputy thereof.
D. Services performed by a student or researcher solely
as a part of his course of training.
E. Services in any class or classes of elective positions.