[Adopted 12-17-2003 by Ord. No. 787; amended
in its entirety 5-19-2010 by Ord. No. 913]
The Commissioners of the Township of South Whitehall established
a pension plan and trust fund for its police officers by Ordinance
No. 149, enacted June 14, 1971. The plan and trust have been amended
from time to time thereafter. Effective as of January 1, 2010, the
Commissioners hereby continue said plan as the "South Whitehall Township
Police Pension Plan" and amend and restate it in its entirety. The
pension benefits of any participant who terminated his employment
with the Township prior to January 1, 2010, shall be determined solely
under the provisions of the plan in effect at the time of his termination.
When used in §§ 58-28 through 58-43, with initial capital letters, the following terms shall have the meanings set forth below, unless a different meaning is plainly required by the context:
Each January 1.
The eligible child or children of a Participant is or are
registered at an accredited institution of higher learning and are
carrying a minimum course load of seven credit hours per semester.
The Board of Commissioners of the Township of South Whitehall.
The committee appointed by the Commissioners under § 58-40 to administer the Plan.
Of an employee for a given year (or other period for which
a determination is being made), the amount of Compensation actually
paid, made available, or includible in gross income for the year (or
other determination period). [In the case of a period during which
an employee is serving in the uniformed forces of the United States,
or during the term of any other approved leave of absence, the employee's
Compensation shall be computed (A) at the rate the employee would
have received but for the uniformed service or other leave of absence,
or (B) in the case that the determination of such rate is not reasonably
certain, on the basis of the employee's average rate of compensation
during the twelve-month period immediately preceding the period of
uniformed service or leave of absence (or, if shorter, the period
of employment immediately preceding such period)]. However, Compensation
shall not include any compensation in excess of the amount in effect
for such year under Section 401(a)(17) of the Internal Revenue Code
of 1986, as amended (the "Code"). If Compensation is ever required
to be determined for a period of time which contains fewer than 12
months, the amount in effect for such period under Code Section 401(a)(17)
shall be equal to the amount in effect under Code Section 401(a)(17)
for the calendar year in which the period begins, multiplied by a
fraction whose numerator is equal to the number of months in the period,
and whose denominator is 12.
A person shall be considered "Disabled" if he has a physical
or mental condition which renders him permanently and totally disabled
from substantially performing police work for the Employer due to
injuries incurred while performing police duties for the Employer,
and such condition is established by a licensed physician satisfactory
to the Committee.
With respect to any given person, each of the following shall
be a "Disqualifying Event":
The voluntary or involuntary termination of the person's
employment with the Employer, unless the termination occurs due to
the conscription, enlistment or appointment of the person to service
in the Armed Forces of the United States, or because of a condition
which renders the person Disabled. However, if the Employer shall
terminate the person's employment due to insufficient work for
such person or shall indicate that the termination is temporary, such
termination shall be considered a "layoff" and not a "termination"
unless the layoff continues for a period in excess of six months.
The mere cessation of a person's status as a Qualified Employee
shall not constitute a "termination" under this subsection; only a
termination from all employment with the Employer shall be a "termination";
The person's failure to return to work at the end of any
leave of absence, after ceasing to be Disabled, or upon recall following
a layoff;
The lapse of the person's right under the then-effective
laws of the United States to reinstatement of employment with the
Employer following a period of service with the Armed Forces of the
United States, unless the person was reinstated before such lapse;
or the failure of the person to qualify for reinstatement rights following
a period of service with the Armed Forces of the United States.
The Deferred Retirement Option Program as reflected in the Articles of Agreement between Police Services of South Whitehall Township and the Board of Commissioners of South Whitehall Township dated as of December 20, 2006 (for the period January 1, 2006, through December 31, 2007), and the Arbitration Award between South Whitehall Police Bargaining Unit and South Whitehall Township (for the period May 1, 2009, through October 31, 2011), which program permits a Participant who has met the age and service requirements of § 58-32 of the Plan to become a former Participant but continue in active employment with the Employer for up to four years. From the period of time a Participant enters into the DROP Program until the person ceases active employment with the Employer, such Participant's normal retirement benefit shall be segregated within the Plan without interest for the former Participant's benefit upon ceasing active employment with the Employer. During the period of time a former Participant participates in the DROP Program, the former Participant shall not be classified as a Qualified Employee under the Plan and shall not accrue Years of Vesting Service or Years of Benefit Accrual Service under the Plan.
The Township of South Whitehall, a Pennsylvania First Class
Township and municipal corporation, located in Lehigh County, Pennsylvania.
The equivalent value when computed on the basis of the following
actuarial assumptions:
Of a Participant or former Participant, the Compensation
paid to the Participant or former Participant during the thirty-six-month
period ending on his Final Police Date, divided by 36. However, if
a Participant or former Participant shall not have been a Qualified
Employee throughout the thirty-six-month period, his Final Average
Monthly Compensation shall be his Compensation during his last 36
months of employment as a Qualified Employee through the Final Police
Date (regardless of whether consecutive or not), divided by 36; and
if he shall not have been a Qualified Employee of the Employer for
a total of at least 36 months before his Final Police Date (whether
consecutive or not), his Final Average Monthly Compensation shall
be his Compensation during all periods of employment with the Employer
through the Final Police Date (regardless of whether he was employed
as a Qualified Employee or otherwise), up to a maximum of 36, divided
by the number of months of his employment with the Employer through
the Final Police Date (rounded to the nearest 0.001 of a month), up
to a maximum of 36.
For purposes of computing the normal retirement benefit under § 58-32, the "Final Police Date" shall be the last date the person performed work for the Employer as a Qualified Employee on or before the date of retirement;
For purposes of computing the disability benefit under § 58-33, the "Final Police Date" shall be the last date the person performed work for the Employer as a Qualified Employee on or before the date he became Disabled;
For purposes of computing the vested benefit under § 58-34A, the "Final Police Date" shall be the last date the person performed work for the Employer as a Qualified Employee on or before the date of the Disqualifying Event;
For purposes of computing the death benefit under § 58-35B, the "Final Police Date" shall be the last date the deceased Participant performed work for the Employer as a Qualified Employee on or before the date of his death.
Any person who is a Participant in the Plan under the requirements of § 58-31.
The consultant appointed by the Commissioners under § 58-40C.
The South Whitehall Township Police Pension Plan as described
herein or as hereafter amended.
Each one-year period beginning on January 1 and ending on
the following December 31.
An employee holding a full-time position in the police department
of the Employer for a stated salary or compensation and who is included
within the bargaining unit of police officer employees represented
by the Fraternal Order of Police;
The Chief of Police; or
Any person employed in a full-time police position that was
removed or excluded from the bargaining unit due to the managerial
nature of the position. For purposes of this definition, a "full-time"
position is one for which work is regularly scheduled for an average
of not less than 40 hours per week (including vacation days, sick
days and holidays). Notwithstanding the foregoing, a person shall
cease to be a Qualified Employee on the date he or she enters the
DROP Program.
All remuneration paid to an employee for services rendered
during any applicable period.
The trust described in § 58-40B to hold the funds to be used to provide benefits under the Plan, and designated the South Whitehall Township Police Pension Trust.
The trustee of the Trust.
As of any given date, the meaning ascribed to that term in § 58-30B.
As of any given date, the meaning ascribed to that term in § 58-30A.
A.
Vesting service. A person's vesting service as of any given
date (the "determination date") shall be determined as follows:
(1)
Days of vesting service.
(a)
In general. Except as provided in Subsection A(1)(b), the person shall be credited with one day of vesting service as of the determination date for each day:
[1]
That he is actually employed by the Employer (whether as a Qualified
Employee or not), including normal vacations, holidays, sick leave,
weekends and other days off;
[2]
Of service in the uniformed services of the United States, provided
that (I) such service immediately follows service with the Employer
as a Qualified Employee, and (II) the person returns to employment
with the Employer within the time period provided under the provisions
of the Act of 1955, P.L. 1804, No. 600, as amended and the provisions
of the Uniformed Services Employment and Reemployment Rights Act of
1994, 38 U.S.C. § 4301 et seq. and any amendments, supplements
or successor legislation. Such credit shall be granted upon the person's
return to employment with the Employer; or
[3]
Within the first six months of any leave of absence which immediately
follows a period of service with the Employer as a Qualified Employee,
provided that the leave of absence was granted by the Commissioners
upon the written application of the person.
(b)
Exclusions. Notwithstanding the provisions of Subsection A(1)(a), a day of vesting service shall not be credited as of the determination date for any working or nonworking day:
[1]
Within any period of employment solely as an elected official;
[2]
Within any period of employment in a position regularly scheduled
for fewer than 1,500 hours of work in a calendar year;
[3]
During any layoff;
[4]
Within any period of service in the Armed Forces of the United States, except as provided in Subsection A(1)(a)[2];
[5]
Within any leave of absence, except as provided in Subsection A(1)(a)[3];
[6]
Within any period of disability which lasts longer than 20 calendar
days (or the number of sick days available to the person at the time
of the disability, if longer);
[7]
After the determination date;
[8]
On or before the date of any Disqualifying Event which occurs
with respect to the person before the determination date;
[9]
On or before the last date of any period of employment for which
the person has elected to receive a return of employee contributions
to this Plan; or
[10]
On or after the date a person enters the DROP Program.
(2)
Months of vesting service. The number of months of vesting service
credited to the person as of the determination date shall be the sum
of:
(a)
The number of calendar months in which every day of the month
is a day of vesting service; and
(b)
The number of days of vesting service credited to the person as of the determination date, other than those described under Subsection A(2)(a), divided by the actual number of days in such calendar month (rounding down any fraction to the next whole number and eliminating any fractional amount).
(3)
Years of Vesting Service. The number of Years of Vesting Service
credited to the person as of the determination date, which number
may be expressed as a fraction, shall be the number of months of vesting
service credited to the person as of the determination date divided
by 12.
B.
Benefit accrual service. A person's benefit accrual service as of any given date (the "determination date") shall be determined by applying the provisions of Subsection A with the following modifications:
(1)
The words "vesting service" shall be replaced with the words "benefit
accrual service" every time they occur therein; and
(2)
Subsection A(1)(b)[2] shall be modified to read as follows: "within any period of employment in a position that does not qualify the person as a Qualified Employee."
C.
Preemployment military service. Notwithstanding any provision contained in the Plan to the contrary, if applicable, in addition to benefit accrual service credited under Subsection B, benefit accrual service may be credited for each month of preemployment military service in accordance with the following:
(1)
In addition to the benefit accrual service credited under Subsection B, one month of preemployment military service shall be credited to the person for each month of preemployment military service purchased by the person during an election period [as described in Subsection C(4)] and purchased on or before the determination date.
(2)
A person may purchase credit for a month of preemployment military service for any one-month period in which he was in full-time military service of the United States. Any such period must have been prior to the date the person was first employed by the Employer, and no period of time may be used more than once under this subsection. No person may purchase more than a total of 60 months of preemployment military service. No period of military service may be used for purchase of preemployment military service (and, if purchased, no such benefit accrual service will be credited) if the person is entitled to receive, eligible to receive now or in the future, or is receiving 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 a member eligible to receive or receiving 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 the attainment of a specified age and period of service under 10 U.S.C. Ch. 67 (relating to retired pay for nonregular service).
A.
Continuing participants. All persons who are Qualified Employees
on January 1, 2010, and were members of or participants in the Plan
immediately before that date shall continue as Participants under
this Plan as of January 1, 2010.
B.
New participants. A present or future employee of the Employer other than one described in Subsection A shall become a Participant on the later of (1) the first Anniversary Date following the commencement of his employment with the Employer (whether as a Qualified Employee or not), or (2) the day the person first becomes a Qualified Employee.
C.
Termination of participation. A Participant shall cease to be a Participant
under this Plan upon the occurrence of a Disqualifying Event. A Participant
shall also cease to be a Participant under this Plan if he ceases
to be a Qualified Employee but continues in the employ of the Employer.
He shall then be a former Participant until all benefits to which
he may be entitled hereunder are paid.
D.
Reemployment of a former Participant.
(1)
If a person who formerly was a Participant shall again become a Qualified
Employee, and no Disqualifying Event shall have occurred at or after
the time he ceased to be a Participant, he shall again become a Participant
immediately upon becoming a Qualified Employee.
(2)
If a person who formerly was a Participant in this Plan shall again become a Qualified Employee, and a Disqualifying Event shall have occurred at or after the time he ceased to be a Participant, he shall be treated as if he were two different employees - one who was employed at the earlier time and one who was employed at the later time. Thus, he shall be treated as an entirely new employee of the Employer for purposes of any benefits under this Plan related to the new period of employment, and shall become a Participant again only under the terms of Subsection B; his benefits for the new period shall be based solely on Compensation and service during the new period. However, he shall retain the right to receive all unpaid pension benefits to which he is entitled with respect to his previous period of employment in accordance with the pension provisions in effect on the last day of the previous period of employment, without regard to any Plan amendments enacted thereafter (see § 58-37D) or any Compensation from or service to the Employer thereafter. Any benefits payable with respect to the previous period of employment shall be in addition to any benefits payable with respect to the new period of employment.
A Participant or former Participant shall be entitled to receive
a normal retirement benefit if he retires from all employment with
the Employer or enters the DROP Program after having attained the
age of 50 years and at a time when he has at least 25 Years of Benefit
Accrual Service. The normal retirement benefit shall be paid in the
following form: a series of equal monthly payments beginning on the
first day of the month following retirement and ending on the first
day of the month following the month during which the recipient's
death occurs, in an amount equal to 50% of his Final Average Monthly
Compensation. No actuarial adjustment shall be made to the amount
of the normal retirement benefit if the Participant defers retirement
beyond the first day he is entitled to retire with a normal retirement
benefit (except that Final Average Monthly Compensation shall still
be based on the last months of actual employment as a Qualified Employee,
not the last months before the earliest normal retirement date), and
no benefits shall be paid before actual retirement. Notwithstanding
the foregoing, effective January 1, 2006, if a Participant retires
from all employment with the Employer and is entitled receive a normal
retirement benefit, such Participant shall receive a monthly service
increment of $100 per month for each Year of Benefit Accrual Service
in excess of 25; provided, however, that the payment of such service
increments shall not exceed $400 per month after completing four Years
of Benefit Accrual Service in excess of 25.
A.
In general. A Participant or former Participant who becomes Disabled
may elect to receive a disability benefit. The disability benefit
shall be paid in a series of equal monthly payments beginning on the
first day of the month following the month in which the recipient
demonstrates to the satisfaction of the Committee that he is Disabled
and ending on the earlier of the first day of the month following
the month during which the recipient's death occurs or the first
day of the month following the month during which the recipient ceases
to be Disabled. In the event of Disability, benefits shall become
payable to an injured police officer in equal monthly installments
in an amount equal to 50% of the Participant's Salary at the
time the Disability was incurred reduced by any monthly social security
disability benefits received by the Participant as a result of the
Disability. The monthly Disability benefits shall begin the first
month following the month in which the officer is honorably discharged
as a result of the disability.
B.
Other benefits. A person shall be ineligible to receive any other
benefit under this Plan during any period in which he is Disabled
if he elects to receive the disability retirement benefit.
C.
Recovery of disabled employee: does not return to employment. If
a person who received a disability retirement benefit ceases to be
Disabled and does not immediately thereafter return to the employ
of the Employer, the amount of any benefit the person may be entitled
to receive under this Plan with respect to the period before he ceased
to be Disabled shall be reduced by the Equivalent Actuarial Value
of the disability retirement benefit paid to him.
D.
Recovery of disabled employee: returns to employment. If a person
who received a disability retirement benefit ceases to be Disabled
and immediately thereafter returns to the employ of the Employer,
the amount of any benefit the person may be entitled to receive under
this Plan shall be reduced by the Equivalent Actuarial Value of the
disability retirement benefit paid to him. Notwithstanding the preceding
sentence, if such a person's total benefits under this Plan would
have been greater if he were treated as having failed to immediately
return to the employ of the Employer after he ceased to be Disabled
(so as to suffer a Disqualifying Event) and as then becoming a new
employee of the Employer upon his return, he shall be so treated.
E.
Death benefit. Effective as of April 17, 2002, if a Participant dies
after sustaining a Disability, the surviving spouse of such member,
including surviving spouses whose spouse died on or before April 17,
2002, and who were not remarried as of such date, shall receive a
pension calculated at 50% of the salary of the Participant at the
time of his death. If there is no surviving spouse or the spouse subsequently
dies, the child or children of the deceased Participant shall share
equally in a pension calculated at 50% of the salary the Participant
at the time of his death until each reach the age of 18 years, or
if Attending College, until each such child is under or attaining
the age of 23.
A.
Vested benefit.
(1)
In general. A Participant or former Participant who suffers a Disqualifying Event at a time when he is not eligible to receive a normal retirement benefit will be entitled to a vested benefit under this Plan if he has 12 or more Years of Vesting Service as of the date of the Disqualifying Event, provided he complies with the provisions of Subsection A(3).
(2)
Vested benefit. The vested benefit shall be paid in the following form: a series of equal monthly payments beginning the first date a normal retirement benefit (see § 58-32) could have commenced if the former Participant had continued in the employ of the Employer as a Qualified Employee from the last day that he was a Qualified Employee until the first day he would have been entitled to retire and receive a normal retirement benefit (or, if later, commencing the first day of the month following retirement from all employment with the Employer), and continuing until the first day of the month following the month during which the recipient's death occurs, in an amount equal to 50% of his Final Average Monthly Compensation multiplied by a fraction, the numerator of which is his Years of Benefit Accrual Service as of the date of the Disqualifying Event, and the denominator of which is the number of Years of Benefit Accrual Service he would have completed as of his retirement date if he had continued to work as a Qualified Employee from the last day that he was a Qualified Employee until the first day he would have been entitled to retire and receive a normal retirement benefit under § 58-32.
(3)
Procedure. In order to be able to receive the vested benefit, the Participant or former Participant must elect to vest his benefits and waive a return of contributions under Subsection B within 90 calendar days after he ceases to be a Qualified Employee. The election must be made within that time period even if the Participant does not suffer a Disqualifying Event (e.g., because he continues in the employ of the Employer or enters the armed services of the United States). However, if the Participant or former Participant elects to vest and eventually does not have at least 12 Years of Vesting Service when he finally suffers a Disqualifying Event, the election and waiver shall be revoked, and the former Participant shall be entitled to a return of contributions under Subsection B.
B.
Return of contributions.
(1)
In general. A Participant or former Participant who ceases to be a Qualified Employee at a time when he is not eligible to receive a normal retirement benefit will be entitled to a return of all employee contributions he has made to the plan, if any, plus interest. The payment will be made as soon as practicable after the Participant or former Participant files an election to receive a return of contributions. However, if he has 12 or more Years of Vesting Service at that time, or does not then suffer a Disqualifying Event (e.g., because he continues in the employment of the Employer in a position other than as a Qualified Employee or because he enters the armed services of the United States) and believes that he might accrue 12 or more Years of Vesting Service before he suffers a Disqualifying Event, he may elect to vest his benefits under the provisions of Subsection A and waive the return of employee contributions and interest thereon. Any such waiver shall be irrevocable, unless the former Participant had less than 12 Years of Vesting Service at the time of the election and has less than 12 Years of Vesting Service when he suffers a Disqualifying Event.
A.
Retiree receiving benefits. If a former Participant dies after he
has begun receiving payments from this Plan under the normal retirement
benefit, the vested benefit or the disability benefit (provided that
the former Participant was still Disabled at the time of his death),
monthly death benefits in an amount equal to 50% of the monthly payments
being received by the former Participant during his lifetime shall
be paid to his surviving spouse (including surviving spouses whose
spouse died on or before April 17, 2002, and were not married as of
such date), if any, commencing on the first day of the month following
the death of the former Participant and ending on the first day of
the month in which the surviving spouse dies. Effective as of April
17, 2002, if there is no surviving spouse or the spouse subsequently
dies, the child or children of the deceased Participant shall share
equally in a pension equal to 50% of the pension the Participant was
receiving or was eligible to receive at the time of his death until
each such child reaches the age of 18 years, or if Attending College,
until each such child is under or attaining the age of 23.
B.
Employee eligible to retire. If a Participant or former Participant
dies while he is still employed by the Employer, and the Participant
or former Participant could have received an immediate normal retirement
benefit if he had retired on the date of his death and survived for
at least one month, monthly death benefits in an amount equal to 25%
of the Participant's or former Participant's Final Average
Monthly Compensation shall be paid to his surviving spouse, if any,
commencing on the first day of the month following the death of the
former Participant and ending on the first day of the month in which
the surviving spouse dies.
C.
Killed-in-service benefit. Effective for members of the Township's police force who are killed in service on or after April 17, 2002, and before January 1, 2010, the surviving spouses of such members shall receive a pension calculated at 100% of the Participant's Salary at the time of death. If there is no surviving spouse or the spouse subsequently dies, the child or children of the member of the police force shall share equally in a pension calculated at 100% of the Participant's Salary at the time of death until each such child reaches the age of 18 years, or if Attending College, until each such child is under or attaining the age of 23 years. Effective with respect to deaths occurring on or after January 1, 2010, the killed-in-service benefit provided for pursuant to this § 58-35C shall no longer be payable under the Plan. Unless otherwise provided for by law or contract, the benefit provided for under this § 58-35C shall be payable in the manner provided for under § 58-35A.
D.
Return of employee contributions.
(1)
In general. If no death benefits are payable under Subsections A through C with respect to a Participant or former Participant as a result of his death, and the Participant or former Participant did not receive any payments from this Plan under a normal retirement benefit, disability benefit or vested benefit during his lifetime, effective April 17, 2002, the Plan shall return all employee contributions made to the Plan by the Participant or former Participant, if any, plus interest, to the surviving spouse of the member of the police force, or if there is no surviving spouse or the spouse subsequently dies, the child or children under the age of 18 years, or if Attending College, under or attaining the age of 23 years, of the member of the police force, shall be entitled to receive repayment of all money which the member invested in the Fund plus interest or other increases in value of the member's investment in the Fund, unless the member has designated another beneficiary for this purpose as may be provided for under the Plan. The payment will be made as soon as practicable after the death of the Participant or former Participant. If the Participant or former Participant failed to designate a beneficiary, or if no designated beneficiary shall have survived the Participant or former Participant, the employee contributions plus interest shall be paid to the Participant's surviving spouse; if none, then to the surviving children who are under the age of 18 or, if Attending College, under or attaining the age of 23; if none, then to the estate of the Participant or former Participant.
E.
No other death benefits. Except as provided in this § 58-35, no Participant or former Participant, and no estate, heir or beneficiary of any Participant or former Participant, shall receive any payment or benefit under this Plan or from the Trust due to the death of a Participant or former Participant. Notwithstanding the foregoing, effective January 1, 2007, if a Participant dies while performing qualified military service [as defined in Section 414(u) of the Code], the Participant's beneficiary shall be entitled to additional benefits (including benefit accruals relating to the period of qualified military service), if any, that would be provided under the Plan had the Participant resumed employment with the Township's police force and then terminated employment on account of death.
A.
Defined benefit dollar limitation. The "defined benefit dollar limitation"
is $195,000, as adjusted, effective January 1 of each year, under
Section 415(d) of the Code in such manner as the Secretary shall prescribe,
and payable in the form of a straight life annuity. A limitation as
adjusted under Section 415(d) will apply to limitation years ending
with or within the calendar year for which the adjustment applies.
B.
Defined benefit compensation limitation. The "defined benefit compensation
limitation" is the Participant's or former Participant's
high three-year average compensation. In the case of a Participant
who has had a severance from employment, the defined benefit compensation
limitation applicable to the Participant in any limitation year beginning
after the date of severance from employment shall be automatically
adjusted by multiplying the limitation applicable to the Participant
in the prior limitation year by the annual adjustment factor under
Code Section 415(d).
C.
High three-year average compensation. The average compensation for the three consecutive calendar years of service with the Employer that produces the highest average. In the case of a Participant who is rehired by the Employer after a severance from employment, the Participant's high three-year average compensation shall be calculated by excluding all years for which the Participant performs no services for and receives no compensation from the Employer (the break period) and by treating the years immediately preceding and following the break period as consecutive. For purposes of this § 58-36, a Participant's compensation shall mean wages, within the meaning of Code Section 3401(a), and all other payments of compensation to an Employee by the company (in the course of the company's trade or business) for which the company is required to furnish the Participant a written statement under Code Sections 6041(d), 6051(a)(3) and 6052. Compensation shall be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or services performed. Compensation paid or made available during a limitation year shall include amounts that would otherwise be included as compensation but for a Participant's election under Code Sections 125(a), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b). effective January 1, 2008, and solely for purposes of this § 58-36, compensation shall also include compensation paid by the later of 2 1/2 months after a Participant's severance from employment or the end of the calendar year that includes the date of the Participant's severance from employment, if the payment is regular compensation for service during the Participant's regular working hours, or compensation for services outside the Participant's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the Participant while the Participant continued in employment with the Employer. Any payments not described above shall not be considered compensation if paid after severance from employment, even if they are paid by the later of 2 1/2 months after the date of severance from employment or the end of the calendar year that includes the date of severance from employment. Back pay, within the meaning of Treas. Reg. Section 1.415(c)-2(g)(8), shall be treated as compensation for the calendar year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition. A Participant's compensation for a calendar year of service shall not include compensation in excess of the limitation under Code Section 401(a)(17) that is in effect for the calendar year in which such year of service begins.
D.
Maximum permissible benefit. The "maximum permissible benefit" is the lesser of the defined benefit dollar limitation or the defined benefit compensation limitation (both adjusted where required, as provided in Subsection E, and, if applicable, in Subsections F or G, below). Notwithstanding anything to the contrary contained in this Plan, when expressed as a monthly pension in the form of a straight life annuity (with no ancillary benefits) over the life of a Participant or former Participant, a pension benefit hereunder shall not exceed the lesser of (1) the defined benefit dollar limitation divided by 12, or (2) 100% of the participants monthly defined benefit compensation limitation. The maximum shall apply to any pension payable to the Participant or former Participant as a joint and survivor annuity without any actuarial reduction.
E.
If the participant has fewer than 10 years of participation in the
plan, the defined benefit dollar limitation shall be multiplied by
a fraction, the numerator of which is the number of years (or part
thereof) of participation in the plan and the denominator of which
is 10. In the case of a participant who has fewer than 10 years of
service with the employer, the defined benefit compensation limitation
shall be multiplied by a fraction, the numerator of which is the number
of years (or part thereof) of service with the employer and the denominator
of which is 10.
F.
If the benefit of a participant begins prior to age 62, the defined benefit dollar limitation applicable to the participant at such earlier age is an annual benefit payable in the form of a straight life annuity beginning at the earlier age that is the actuarial equivalent of the defined benefit dollar limitation applicable to the participant at age 62 (adjusted under Subsection E above, if required). The defined benefit dollar limitation applicable at an age prior to age 62 is computed using a 5% interest rate and the applicable mortality table as defined in Rev. Rul. 2001-62 or, for distributions prior to January 1, 2008, computed using the interest rate and mortality table (or other tabular factor) specified in the definition of "equivalent actuarial value" in § 58-29 of the Plan if lesser. Any decrease in the defined benefit dollar limitation determined in accordance with this Subsection F shall not reflect a mortality decrement if benefits are not forfeited upon the death of the participant. If any benefits are forfeited upon death, the full mortality decrement is taken into account.
G.
If the benefit of a participant begins after the participant attains age 65, the defined benefit dollar limitation applicable to the participant at the later age is the annual benefit payable in the form of a straight life annuity beginning at the later age that is actuarially equivalent to the defined benefit dollar limitation applicable to the participant at age 65 (adjusted under Subsection D above, if required). The actuarial equivalent of the defined benefit dollar limitation applicable at an age after age 65 is computed using a 5% interest rate assumption and the applicable mortality table as defined in Rev. Rul. 2001-62 or, for distributions prior to January 1, 2008, computed using the interest rate and mortality table (or other tabular factor) specified in the definition of "equivalent actuarial value" in § 58-29 of the Plan if lesser. For these purposes, mortality between age 65 and the age at which benefits commence shall be ignored.
H.
For all purposes of this Plan, the maximum defined benefit dollar limitation shall be increased in accordance with § 58-36J of the Plan as permitted by Section 5(g)(1) of Act 600 [53 P.S. § 771(g)(1)]. As a result of such an adjustment, a pension which had been limited by the provisions of this § 58-36 in a previous plan year may be increased with respect to future payments to the lesser of the adjusted defined benefit dollar limitation amount or the amount of pension which would have been payable under this Plan without regard to the provisions of this § 58-36.
I.
The limitations described in this § 58-36 are intended to comply with the provisions of Section 415 of the Internal Revenue Code, as amended, so that the maximum benefits provided by plans of the Employer shall be exactly equal to the maximum amounts allowed under Section 415 of the Internal Revenue Code and the regulations thereunder. If there is any discrepancy between the provisions of this § 58-36 and the provisions of Section 415 of the Internal Revenue Code and the regulations thereunder, such discrepancy shall be resolved in such a way as to give full effect to the provisions of Section 415 of the Internal Revenue Code and the regulations thereunder.
J.
Cost of living increases. Cost of living increases, if any, shall
be determined from time to time as provided for in a Cost of Living
Schedule, which shall be attached to the Plan and made a part hereof.
The cost of living increase shall not exceed the percentage increase
in the Consumer Price Index from the year in which the police member
last worked, shall not cause the total police pension benefits to
exceed 75% of the Salary used for computing retirement benefits and
shall not cause the total cost of living increase to exceed 30%. No
cost of living increase shall be granted which would impair the actuarial
soundness of the pension fund.
A.
Production of information. Before any payment shall be made under
this Plan to or on account of a Participant or former Participant,
the recipient of such payment shall file with or make available to
the Committee such information as the Committee may from time to time
require to determine the recipient's rights and benefits under
the Plan.
B.
Notice of benefit options. The Committee shall provide a Participant
or former Participant with written notice of the benefit options which
are available to him under the Plan and of the procedures for obtaining
such benefits within a reasonable time after the Participant or former
Participant expresses an interest in retirement, and also approximately
three months before the Participant or former Participant would first
become eligible to receive a normal retirement benefit.
C.
Election of benefits and benefit options. All applications for benefit payments, elections to receive optional forms of benefits, and beneficiary designations shall be made on forms supplied by the Committee and within such reasonable periods of time as may be prescribed by the Committee. The time provided in this Plan for the commencement of any benefits shall be subject to compliance with the requirements of Subsection A and this Subsection C.
D.
No benefit increases following termination. The amount of benefits
to which a Participant or former Participant may be entitled under
this Plan with respect to any continuous period of employment with
the Employer (whether as a Qualified Employee or not) or any consecutive
periods of employment in which a Disqualifying Event has not occurred
between the beginning of the first of such periods and the day before
the end of the last of such periods, shall be determined in accordance
with the provisions of the Plan in effect on the last day in which
the Participant or former Participant worked for the Employer during
such period or during the last of such consecutive periods. Such amount
shall not be affected by benefit increases which become effective
thereafter.
E.
Latest commencement of benefits. Notwithstanding anything to the
contrary in this Plan, distribution of benefits under this Plan with
respect to any Participant or former Participant shall commence no
later than the later of:
F.
Compliance with Code Section 401(a)(9). Not withstanding anything
to the contrary contained in this Plan, all distributions of Plan
benefits must comply with the provisions of Section 401(a)(9) of the
Internal Revenue Code of 1986 (or any successor provision of any future
federal internal revenue law) and the regulations thereunder, and
the incidental death benefit rules of the Internal Revenue Service.
G.
Public Employee Pension Forfeiture Act. Not withstanding anything
to the contrary contained herein, any benefit hereunder is subject
to reduction in accordance with the provisions of the Public Employee
Pension Forfeiture Act, 43 P.S. § 1311 et seq.
H.
Direct rollover.
(1)
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 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.
(2)
For purposes of this section, the following definitions shall apply:
(a)
An "eligible rollover distribution" is 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 or more; any distribution to
the extent such distribution is required under Code Section 401(a)(9);
the portion of any other distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities); any hardship distribution
described in Code Section 401(k)(2)(B)(i)(IV) made after December
31, 1999; and any other distribution that is reasonably expected to
total less than $200 during a year. Effective January 1, 2002, a portion
of a distribution shall not fail to be an eligible rollover distribution
merely because the portion consists of after-tax employee contributions
which are not includible in gross income; provided, however, such
portion may be transferred only to (i) an individual retirement account
or annuity described in Section 408(a) or (b) of the Code; (ii) for
taxable years beginning before January 1, 2007, 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 that is
includible in gross income and the portion of such distribution that
is not so includible; or (iii) for taxable years beginning after December
31, 2006, a qualified trust or to an annuity contract described in
Section 403(b) of the Code if such trust or contract provides for
separate accounting for amounts so transferred (including interest
thereon), 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.
(b)
An "eligible retirement plan" is 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), or a qualified trust described in Code Section 401(a),
that accepts the distributee's eligible rollover distribution.
However, in the case of an eligible rollover distribution to the surviving
spouse, an "eligible retirement plan" is an individual retirement
account or individual retirement annuity. Effective for distributions
made after December 31, 2001, an "eligible retirement plan" shall
also mean an annuity contract described in Code Section 403(b) and
an eligible plan under Code Section 457(b) 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. Effective for distributions made after December 31, 2001, an
"eligible retirement plan" shall also apply in the case of a distribution
to a surviving spouse, or to a spouse or former spouse who is the
alternate payee under a qualified domestic relations order, as defined
in Code Section 414(p). Effective January 1, 2008, an eligible retirement
plan shall also mean a Roth IRA described in Code Section 408A.
(c)
A "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. Effective
for distributions made on or after January 1, 2010, "distributee"
shall also mean the Employee's nonspouse designated beneficiary;
provided, however, that the direct rollover for a nonspouse designated
beneficiary may be made only to an individual retirement account or
annuity described in Code Sections 408(a) or 408(b) that is established
on behalf of the Employee's nonspouse designated beneficiary
and that will be treated as an inherited IRA pursuant to the provisions
of Code Section 402(c)(11).
(d)
A "direct rollover" is a payment by the Plan to the eligible
retirement plan specified by the distributee.
A.
The Employer shall, from time to time, contribute to the Plan and Trust the amounts required to fund all the benefits provided under this Plan to the extent they are not funded by employee contributions under § 58-39. The minimum amount of Employer contributions shall be determined in accordance with the calculations of the Pension Consultant and as required by the Municipal Pension Plan Funding Standard and Recovery Act, 53 P. S. § 895.101 et seq. Employer contributions may be derived from grants of state aid, disbursements from the Township's general fund, and other sources.
B.
All Employer contributions shall be paid to the Trustee to be held
in the Trust. The Trust shall be used to pay all benefits under this
Plan.
A.
Each month, each Qualified Employee (including Qualified Employees
on paid leaves of absence) shall contribute an amount equal to 5%
of his Salary for the month to the Trust.
B.
Notwithstanding the provisions of Subsection A, the Commissioners may, by ordinance or resolution, on an annual basis, so reduce or eliminate the contributions required under Subsection A for the following Plan Year. No ordinance or resolution under this Subsection B may affect any year beyond the first Plan Year which begins after the date the ordinance or resolution is passed. Except as otherwise provided in this Subsection B, reduction or elimination of member contributions shall not permit the return of contributions or any interest or fund earnings to be made to Participants while actively employed as a police officer by the Employer. Where an agreement, collectively bargained or otherwise, arbitration award or court decision was agreed to, issued or rendered on or prior to February 23, 1994, which provided for a return of contributions, with or without interest, or fund earnings to members, a return of contributions, with or without interest, or fund earnings shall be made to members and any such return of contributions shall reduce or eliminate any entitlement to refunds pursuant to § 58-34. The Employer making such return or Participant receiving such return shall be required to restore to the Plan any such contributions, interest or fund earnings. Effective January 1, 2004, and until such time as the Commissioners determine otherwise by appropriate resolution, a Qualified Employee is not required to contribute an amount equal to 5% of his Salary each month to the Plan.
C.
If a Qualified Employee refuses, at any time, to contribute any amounts required under this § 58-39, he shall forfeit all benefits under this Plan which are based on service prior to the date of the refusal, except a return of his previously contributed employee contributions.
D.
No Participant shall be required to make any contributions to this Plan during any period of service in the uniformed services of the United States. If such a Participant returns to employment with the Employer, he/she shall contribute to the Plan an amount equal to the rate in effect under Subsections A and B for the period of uniformed service multiplied by the deemed Compensation of the Participant for such period. (Where more than one rate is in effect during the period of uniformed service, a calculation shall be performed for each portion of the period of uniformed service governed by a separate rate, and the total required contribution shall be equal to the sum of such calculations.) The contribution shall be made during the period beginning with the date of reemployment and whose duration is the lesser of (1) three times the period of the person's service in the uniformed services, or (2) five years.
E.
A Participant on an unpaid leave of absence shall make a contribution to this Plan for the portion of the leave for which he/she accrues service credit under § 58-30 in an amount equal to the rate in effect under Subsections A and B for the period of leave in which service is credited multiplied by the deemed Compensation of the Participant for such period. (Where more than one rate is in effect during such period, a calculation shall be performed for each portion of the period governed by a separate rate, and the total required contribution shall be equal to the sum of such calculations.) The contribution shall be made no later than six months after the expiration of the leave.
A.
Administrative Committee.
(1)
The South Whitehall Township Pension Committee shall administer the
South Whitehall Township Office Personnel Pension Plan, the South
Whitehall Township Public Works Union Employees’ Pension Plan,
and the South Whitehall Township Police Pension Plan and Trust. The
Committee shall consist of a minimum of three persons and a maximum
of seven persons. The members of the Committee shall serve at the
pleasure of the Board of Commissioners, with appointments to the Committee
being made by resolution of the Board of Commissioners from time to
time. Any member of the Committee may resign by delivering his written
resignation to the Commissioners and to the Committee.
[Amended 10-17-2012 by Ord. No. 961]
(2)
Organization and operation of the Committee. A majority of the appointed
members of the Committee shall constitute a quorum for all actions
taken by the Committee. Any such action may be taken either by vote
at a meeting or in writing without a meeting. The Committee may authorize
any one or more of its members to execute any document or documents
on behalf of the Committee, in which event the Committee shall notify
the Trustee in writing of such action and the name or names of its
member or members so designated. Thereafter, the Trustee shall accept
and rely upon any document executed by such member or members as representing
action by the Committee until the Committee shall file with the Trustee
a written revocation of such designation. The Committee may adopt
such by-laws and regulations as it deems desirable for the conduct
of its affairs, and may appoint such accountants, consultants and
other persons as it may deem necessary or desirable in connection
with the administration of this Plan. The Committee shall be entitled
to rely exclusively upon, and shall be fully protected in any action
taken by it in good faith in relying upon, any opinions or reports
which shall be furnished to it by any such accountant, counsel or
other consultants.
(3)
Powers and duties. The Committee shall administer the Plan in accordance with its terms, shall direct the Trustee to make the benefit payments provided under this Plan, and shall have all powers necessary to carry out the provisions of the Plan. The Committee shall establish, from time to time, and periodically review all actuarial assumptions used in administering the Plan, in consultation with the Pension Consultant appointed under Subsection C. The Committee shall interpret the Plan and shall determine all questions arising in the administration, interpretation and application of the Plan. Any such determination by the Committee shall be conclusive and binding on all persons.
(4)
Records and reports. The Committee shall keep a record of all its
proceedings and acts, and shall keep all such books of account, records
and other data as may be necessary for the proper administration of
the Plan. The Committee shall notify the Trustee and the Employer
of any action taken by the Committee and, when required, shall notify
any other interested person or persons.
(5)
Payment of expenses. Unless otherwise determined by the Commissioners,
the members of the Committee shall serve without compensation for
services as such, but all expenses of the Committee shall be paid
by the Trust or the Employer in such manner as the Employer shall
determine. Such expenses shall include any expenses incident to the
functioning of the Committee, including but not limited to fees of
accountants, counsel, consultants and other specialists, and any other
costs of administering the Plan.
(6)
Immunity from liability; indemnification. No member of the Committee
shall incur any liability for any action or failure to act except
with respect to his own gross negligence or willful misconduct. The
Employer shall and does hereby indemnify each member of the Committee
against any and all claims, losses, damages, expenses and liabilities
arising from any action or failure to act, except when the same is
judicially determined to be due to the gross negligence or willful
misconduct of such member. In addition, the Committee and any member
or agent thereof shall be fully protected in relying upon the advice
of any counsel, consultant or actuary appointed by the Committee or
the Employer.
B.
The Trust.
(1)
In general. All of the funds of this Plan shall be held by a corporate trustee or trustees appointed by the Commissioners, in trust, in accordance with the terms of the Trust Agreement which follows § 58-43,[1] as it may be amended from time to time. Said Trust Agreement
is incorporated herein by reference. The Trust created or existing
under the Trust Agreement shall be a part of this Plan for use in
providing the benefits of this Plan and paying any expenses not directly
paid by the Employer. Neither the Employer, the Committee nor the
Commissioners shall have any responsibility for the administration
of the Trust funds or any liability for any loss with respect thereto.
[1]
Editor's Note: The Trust Agreement is on file in the Township
offices.
(2)
Rights in trust funds. No part of the corpus or income of the Trust
shall be used for or diverted to purposes other than the exclusive
benefit of Participants, former Participants, and beneficiaries of
this Plan prior to the satisfaction of all liabilities under this
Plan with respect to such persons. No person shall have any interest
in or right to any part of the earnings or assets of the Trust except
as and to the extent expressly provided in this Plan and in the Trust
Agreement.
(3)
Source of plan benefits. The Trust is designed to be and shall be the sole source of the benefits provided under the Plan. The Employer does not guarantee such benefits or payments or assume any obligation with respect thereto other than to pay into the Trust the contributions provided under § 58-38.
(4)
Trustee. The Commissioners hereby reaffirm the appointment of Wells
Fargo Bank as Trustee of the Trust.
(5)
No funding by individual policies. The Plan shall not be funded on
an individual insurance policy basis.
C.
Pension Consultant. The Commissioners hereby appoint Conrad Siegel
Actuaries as the Pension Consultant to the Plan and Trust to serve
at the pleasure of the Commissioners.
D.
Nondiscrimination. Whenever there is a choice or decision to be made
by the Employer or the Committee in connection with the administration
of the Plan, the result shall be uniformly applied then and thereafter
in all similar circumstances so that there shall be no discrimination
in the operation of the Plan.
A.
The Commissioners may by ordinance at any time and from time to time
modify or amend, in whole or in part, any or all of the provisions
of the Plan and/or Trust Agreement, including the method of financing
the Plan, provided that:
(1)
No modification or amendment may be made which would have the effect
of depriving any retired former Participant or beneficiary receiving
a retirement benefit of any benefits under the Plan to which he would
otherwise be entitled by reason of the accumulated funds held under
the Plan at that time, unless such former Participant or contingent
annuitant consents thereto;
(2)
No modification or amendment may be made which would reduce the benefits
of any Participant or former Participant to the extent they have been
earned as of the date of the modification or amendment;
(3)
No modification or amendment may be made which would increase the number of Years of Vesting Service specified in § 58-34A to qualify for the vested benefit, or would otherwise change the vesting schedule of the Plan (currently 0% for 11 or fewer Years of Vesting Service and 100% for 12 or more Years of Vesting Service) to the potential detriment of any Participant;
(4)
No such modification or amendment shall make it possible for any
part of the funds of the Plan to be used for or diverted to purposes
other than for the exclusive benefit of Participants, former Participants,
and contingent annuitants under the Plan prior to the satisfaction
of all liabilities with respect to them; and
(5)
No such modification or amendment shall make it possible for the
Employer to appoint to the position of Trustee anyone other than a
corporate trustee.
B.
Notwithstanding the foregoing, any modifications or amendments of
the Plan may be made by ordinance, retroactively if necessary, which
the Commissioners may deem necessary or appropriate to make the Plan
conform to the requirements of any law or governmental regulation
now or hereafter enacted or promulgated, or to qualify the Plan and
Trust as exempt under existing or future federal, state, or local
income tax or estate tax laws and regulations.
A.
Right of termination. Although the Employer expects and desires that
this Plan shall be permanent, it reserves the right to terminate the
Plan for any reason at any time and discontinue contributions to this
Plan, to the extent permitted by state and federal law.
B.
Use of funds upon termination. In case of termination of this Plan,
all active Participants who are accruing benefits shall become fully
vested in their accrued benefits and the funds of the Plan and Trust
shall be used for the exclusive benefit of Participants, former Participants,
and beneficiaries to the extent of their rights under the Plan. However,
if the Employer, because of erroneous actuarial calculations, shall
have contributed funds in excess of the amount required to satisfy
all liabilities of the Plan for benefits, then such excess shall be
returned to the Employer.
C.
Order of payments. In the event this Plan is terminated or the Employer
discontinues making contributions to this Plan, the Committee shall
determine the share of the funds of the Plan and Trust allocable to
each Participant, former Participant and contingent annuitant in the
following order, except as may be required by rule, regulation or
direction of the Internal Revenue Service, the Pension Benefit Guaranty
Corporation or the Pennsylvania Auditor General's office:
(1)
Any benefits that Participants, former Participants or beneficiaries
have accrued to the date of termination or discontinuance of contributions,
to the extent that these benefits are then funded or credited to their
individual accounts, shall be nonforfeitable and payable to them.
If the funds of the Plan are insufficient to provide for all such
benefits in full, each benefit shall be reduced pro rata.
(2)
To the extent that the accrued benefits are not funded or credited
on an individual basis, they shall be payable in the following order:
(a)
Each retired former Participant or his beneficiary receiving a retirement benefit and each Participant or former Participant who has not yet retired from employment with the Employer but who is entitled to retire and receive a normal retirement benefit shall be entitled to a benefit equal to the reserve computed to be required to provide his full accrued benefits. If the funds of the Plan and Trust are insufficient to provide in full for all benefits under this Subsection C(2)(a), then all benefits under this Subsection C(2)(a) shall be reduced pro rata.
(b)
After the benefits under the provisions of Subsection C(2)(a) above have been set aside in full, each other person entitled to a benefit hereunder shall be entitled to a benefit equal to the reserve computed to be required to provide his accrued benefits. If the funds of the Plan and Trust are insufficient to provide in full for all benefits under this Subsection C(2)(b), then all benefits under this Subsection C(2)(b) shall be reduced pro rata.
D.
Form of termination payments. To the extent permitted by law, the
Committee may require that all shares of the Trust be paid following
the termination of the Plan (or the complete discontinuance of Employer
contributions to the Plan) in cash, in immediate annuities, in deferred
annuities, or in other periodic payment forms, or in one of such forms
permitted by the Committee and elected by the recipient.
E.
Merger.
(1)
For purposes of this Subsection E, the term "merger" shall mean any merger or consolidation of this Plan and/or the Trust with any other plan, or any transfer of the assets or liabilities of this Plan and/or the Trust to any other plan.
(2)
The terms of any merger must specify that if this Plan or its successor
were to terminate immediately after the merger, each Participant and
former Participant shall receive a benefit which is not less than
he would have received in the event this Plan terminated immediately
before such merger.
A.
No other legal rights conferred by plan. The establishment and maintenance
of this Plan shall not be construed as conferring any legal rights
upon employees or other persons to a continuation of employment with
the Employer nor shall it interfere with the rights of the Employer
to discharge any person or to treat him without regard to the effect
which such treatment might have upon him as a Participant or former
Participant in the Plan.
B.
Spendthrift provisions. No benefit under this Plan shall be subject
in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge, and any attempt to do so shall be void,
except as specifically provided in this Plan, nor shall any such benefit
be in any manner liable for or subject to garnishment, attachment,
execution, levy or other legal process for the collection of debts,
or liable for or subject to the debts, contracts, liabilities, engagements
or torts of the person entitled to such benefit. In the event the
Committee shall find that any Participant, former Participant, or
contingent annuitant under this Plan has become incompetent, bankrupt
or insolvent, or that any attempt has been made to anticipate, alienate,
sell, transfer, assign, pledge, encumber or charge any of his benefits
under the Plan, except as specifically provided in the Plan, then
such benefit shall cease and terminate and in such event the Committee
and the Trustee shall hold or apply the same to or for the benefit
of such Participant, former Participant or contingent annuitant, his
spouse, children or other dependents, or any of them, in such manner
as the Committee may find proper from time to time.
C.
Right to inspect documents. Notwithstanding any information that
is made available by the Employer, Committee or Trustee to any person
through the distribution of descriptive booklets, bulletin board notices,
payroll notices or oral announcements, any Participant or former Participant
may examine the Plan as presented in this article and amendments thereto,
and the Trust Agreement and all amendments thereto, at the main office
of the Employer at such mutually convenient time as is arranged by
the Participant or former Participant and a representative of the
Employer, Committee or Trustee.
D.
Compliance with Act 600. This Plan is designed to comply with the
provisions of Pennsylvania Act 600 of 1955 (enacted May 29, 1956),
as amended, 53 P.S. § 767 et seq. To the extent there is
any discrepancy between the provisions of this Plan and any of the
requirements of Act 600, this Plan shall be interpreted and construed
as if it had been written in conformity with the requirements of Act
600.
E.
Severability. In the event that any provision, section, sentence,
clause or part of this Plan shall be held to be invalid or unenforceable,
such invalidity or unenforceability shall not affect or impair any
remaining provision, section, sentence, clause or part of this Plan,
it being the intent of the Commissioners of the Township that such
remainder be and remain in full force and effect.
F.
Construction. When used herein, the masculine shall include the feminine
and neuter, as appropriate. Section, subsection, paragraph and subparagraph
headings are included for purposes of convenience only and are not
to be considered a part of this Plan or used to interpret this Plan.
G.
Governing law. This Plan shall be construed, regulated and administered
under the laws of the Commonwealth of Pennsylvania and the applicable
laws of the United States of America.
