City of DuBois, PA
Clearfield County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of DuBois as indicated in article histories. Amendments noted where applicable.]
[Adopted 1-25-1937 by Ord. No. 615 (Ch. 1, Part 2, of the 1995 Code); amended 12-10-2012 by Ord. No. 1780]
As used in this article, the following terms shall have the meanings indicated:
ACCRUED BENEFIT
As any given date, the benefit determined under § 48-5B calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the aggregate service which would be credited to the participant as of his normal retirement date if he were to continue to be employed as an employee until such date with the caveat that once the participant shall have achieved the years of aggregate service required for normal retirement as set forth in the definition of "normal retirement date" in this section, the value of the fraction shall be one. The value of the fraction shall be limited to one.
ACCUMULATED CONTRIBUTIONS
The total amount contributed by each participant to this fund or its predecessor by way of payroll deduction or otherwise, but shall not include interest.
ACT
The Municipal Pension Plan Funding Standard and Recovery Act, enacted as P.L. 1005 (Act 205) of 1984, as amended.[1]
ACTUARIAL EQUIVALENT
A form of benefit differing in time, period or manner of payment from a specific benefit, provided under the plan but having the same value when computed using the "applicable interest rate" and "applicable mortality table" as defined in Section 417(e) of the Internal Revenue Code. The "applicable interest rate" shall be determined as of the second month prior to the first month of the limitation year. The "applicable mortality table" and "applicable interest rate" shall be adjusted automatically when necessary to maintain the qualified status of the plan. The applicable mortality table was found in Revenue Ruling 95-6, 1995-1 C.B. 80 and, effective as of December 31, 2002, is found in Revenue Ruling 2001-62.
ACTUARY
The person, partnership, association, or corporation which at any given time is serving as actuary, provided that such actuary must be an "approved actuary" as defined in the Act.
AGGREGATE SERVICE
The total period of continuous employment with the employer.
ANNUAL SALARY
For participants hired on or after January 1, 2004, shall mean base salary and longevity pay. For participants hired before January 1, 2004, "annual salary" shall mean W-2 earnings.
BASIC MONTHLY EARNINGS
1/12 of the annual salary.
BENEFICIARY
The person or entity designated by the participant to receive a refund of the participant's accumulated contributions should the participant die prior to becoming entitled to a retirement benefit. In the event that a participant does not designate a beneficiary or his beneficiary does not survive him, his beneficiary shall be his surviving spouse, or if there is no surviving spouse, his issue, per stirpes, or if there is no surviving issue, his estate; but if no personal representative has been appointed, to those persons who would be entitled to his estate under the intestacy laws of the Commonwealth of Pennsylvania as if he had died intestate and a resident of Pennsylvania.
CHIEF ADMINISTRATIVE OFFICER
The person designated by Council to serve in the capacity of chief administrative officer. If no such designation is made, the chief administrative officer shall be the City Manager.
CODE
The Internal Revenue Code of 1986, as amended.
COUNCIL
The City Council of the City of DuBois.
DISABILITY DATE
The date when a participant is determined by the plan administrator to be incapacitated due to a "total and permanent disability," or the date when the participant's employment terminates due to a "total and permanent disability," if later.
EMPLOYEE
Any individual employed by the employer on a permanent, full-time basis as a member of the employer's police force.
EMPLOYER
The police force of the City of DuBois, Clearfield County, Pennsylvania.
EMPLOYMENT
For the purposes of determining aggregate service, shall mean the following:
A. 
The period of time for which an employee is directly or indirectly compensated or entitled to compensation by the employer for the performance of duties as a full-time police officer;
B. 
Any period, up to five years, of intervening voluntary or involuntary military service with the armed forces of the United States of America, provided that:
(1) 
The participant had been employed as a regular, full-time member of the employer's police force immediately prior to the period of military service;
(2) 
The participant returns to employment within six months following his discharge from military service or within such longer period during which his employment rights are guaranteed by applicable law or under the terms of a collective bargaining agreement with the employer;
(3) 
The participant's discharge or separation from military service was granted under other than dishonorable conditions;
(4) 
The participant complies with the requirements of § 48-4C, including, without limitation, the requirement to make contributions to the plan.
C. 
Any period of prior voluntary or involuntary military service with the armed forces of the United States, not to exceed five years, upon the payment by the participant of an amount equal to that which he would have paid had he been a member during the period for which he desires credit, and his payment to such fund of an additional amount is the equivalent of the contributions of the employer on account of such military service.
D. 
Credit for qualified military service. Notwithstanding any provision of this plan to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Code.
E. 
Any period during which the employee is entitled to disability benefits under this plan, provided that the employee returns to employment within one month of the date on which the plan administrator determines that he is no longer totally and permanently disabled, if such determination occurs prior to the participant's normal retirement date.
FINAL MONTHLY AVERAGE SALARY
1/12th of the annual salary paid to the participant by the employer at retirement or 1/12th of the highest average annual salary during any five years preceding retirement, whichever is higher.
NORMAL RETIREMENT DATE
The date on which the participant has both completed 20 years of aggregate service as a police officer with the employer and has attained age 50.
PARTICIPANT
An employee who has met the eligibility requirements to participate in the plan as provided in § 48-3A and who has not for any reason ceased to be a participant hereunder.
PENSION FUND or FUND
The police pension fund administered under the terms of this plan and which shall include all money, property, investments, policies and contracts standing in the name of the plan.
PLAN
The plan set forth herein, as amended from time to time, and designated as the "City of DuBois Police Retirement Plan."
PLAN ADMINISTRATOR or ADMINISTRATOR
The employer.
PLAN YEAR
The twelve-month period beginning on January 1 and ending on December 31.
TOTAL AND PERMANENT DISABILITY
A condition of physical or mental impairment resulting from an in-service cause which renders the employee unable to perform his duties. Proof of disability shall be by competent medical evidence, provided by the claimant. Council may at any time have the claimant examined by a physician of its choosing.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
A. 
Plan administrator. The plan administrator (administrator) shall be the employer.
B. 
Authority and duties of the administrator.
(1) 
The administrator shall have full power and authority to do whatever, in its judgment, shall be reasonably necessary to effectuate the proper administration and operation of the plan. The interpretation or construction placed upon any term or provision of the plan by the administrator, or any action of the administrator taken in good faith, shall be final and conclusive upon all parties hereto. The authority of the administrator shall include, but shall not be limited to:
(a) 
Construction of the plan;
(b) 
Determination of all questions affecting the eligibility of any employee of the City to participate herein;
(c) 
Computation of the amount and the source of any benefit payable hereunder to any participant or beneficiary, as applicable;
(d) 
Authorization of any and all disbursements of benefits;
(e) 
Prescription of any procedure to be followed by any participant or other person, as applicable, in filing any application or election hereunder;
(f) 
Preparation and distribution of information explaining the plan as may be required by law or as the administrator deems appropriate;
(g) 
Requisition of information necessary from the City or any participant for the proper administration of the plan; and
(h) 
Appointment and retention of any individual to assist in the administration of the plan, including such legal, clerical, accounting, and actuarial services as may be required by any applicable law or laws.
(2) 
The administrator shall have no authority to add to, subtract from, or modify the terms of the plan or to change or add to any benefits provided by the plan, or to waive or fail to apply any requirements of eligibility for benefits under the plan. Further, the administrator shall have no power to adopt, amend, or terminate the plan or to determine or require any contributions to the plan, said power being exclusively reserved to Council.
C. 
Hold harmless. To the full extent permitted by law, no member of Council, the chief administrative officer, the administrator, nor any other person involved in the administration of the plan shall be liable to any person on account of any act or failure to act which is taken or omitted to be taken in good faith in performing their respective duties under the terms of this plan. To the extent permitted by law, the City shall, and hereby does agree to, indemnify and hold harmless the administrator and each successor and each individual's heirs, executors and administrators, and the administrator's delegates and appointees (other than any person or entity independent of the City who renders services to the plan for a fee) from any and all liability and expenses, including counsel fees, reasonably incurred in any action, suit, or proceeding to which he is or may be made a party by reason of being or having been the administrator or a delegate or appointee of the administrator, except in matters involving criminal liability or intentional or willful misconduct. If the City purchases insurance to cover claims of a nature described above, then no right of indemnification shall exist except to the extent of any deductible amount under the insurance coverage or to the extent of the amount the claims exceed the insured amount.
D. 
Appeal procedure. Any person whose application for benefits is denied, who questions the amount of timing of any benefit paid, or who has some other claim arising under the plan (the "claimant"), shall first seek a resolution of such claim under the procedure hereinafter set forth.
(1) 
The claimant shall first file a notice of claim with the administrator, which notice shall fully describe the nature of the claim. The administrator shall review the claim and make an initial determination approving or denying the claim and shall mail notice of the determination within 90 days (or such other period as may be established by applicable law) from the time such application is received. Such ninety-day period may be extended by the administrator, if special circumstances so require, for up to 90 additional days, by the administrator's delivering notice of such extension to the claimant within the first ninety-day period. Any notice hereunder shall, if it is a notice of denial, set forth:
(a) 
The specific provisions of the plan on which the denial is based;
(b) 
An explanation of additional material or information, if any becomes necessary to perfect such claim, and a statement of why such material or information is necessary; and
(c) 
An explanation of the review procedure.
(2) 
Upon receipt of notice denying the claim, the claimant shall have the right to request a full and fair review by Council of the initial determination. Such request for review must be made by written notice to Council within 60 days of mailing of the notice of denial. During such review, the claimant or a duly authorized representative shall have the right to review any pertinent documents and to submit any issues or comments in writing. Council shall, within 60 days after receipt of the notice requesting such review, (or in special circumstances, such as where Council in its sole discretion holds a hearing, within 120 days of receipt of such notice), submit its decision in writing to the person or persons whose claim has been denied. The claimant shall have the right to appeal the decision of Council pursuant to the Local Agency Law, 2 Pa.C.S.A. § 101. If not so appealed, the decision shall be final, conclusive, and binding on all parties.
(3) 
Any notice of claim questioning the amount of a benefit in pay status shall be filed by the claimant with the administrator within 90 days following the date of the first payment which would be adjusted if the claim is granted, unless the administrator allows a later filing for good cause shown.
(4) 
A claimant who does not submit a notice of a claim or a notice requesting a review of a denial of a claim within the time limitations specified above shall be deemed to have waived such claim or right to review.
A. 
Eligibility requirements. Each employee who is employed as a regular, full-time permanent member of the police department of the employer shall participate herein as of the date on which such employee is first employed in the above capacity.
B. 
Notification of plan administrator. The employer shall furnish the administrator with written notification of the appointment of any new full-time permanent employee who is eligible for participation hereunder as soon as practicable following the date of such appointment.
C. 
Designation of beneficiary. Any employee who becomes a participant hereunder shall provide a written notice which designates his beneficiary or beneficiaries to the plan administrator at the time his participation commences or recommences. The participant's election of any such beneficiary or beneficiaries may be rescinded or changed, without the consent of the beneficiary or beneficiaries, at any time, provided the participant provides the plan administrator with written notice of the changed designation.
A. 
Employee contributions. Each employee shall make regular monthly contributions to the plan at a rate not to exceed 3% of the participant's annual salary plus $5 per month for the service increment. No contributions for the service increment shall be made by the employee after he attains 65 years of age.
B. 
Payment of employee contributions. The employee contributions provided for in Subsection A of this section shall be deducted from the employee's annual salary in each month of his service during which he receives payments of annual salary.
C. 
Employee contributions for periods of military service. An employee may be entitled to have certain periods of military service credited to him as additional years of aggregate service for purposes of determining: (i) the amount of his retirement benefit; and (ii) his eligibility for normal retirement or disability retirement, provided that the military service satisfies the requirements for treatment as aggregate service described in the definition in § 48-1 and the participant makes contributions to the pension fund as described in this Subsection C.
(1) 
For intervening military service, the amount of contributions required under this section shall be determined by the actuary and certified by the plan administrator and shall be in such amounts as required by Section 414(u) of the Code and the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
(2) 
For credit for military service served subsequent to September 1, 1940, and prior to becoming an employee, the amount of contributions required under this section shall be an amount equal to that which the participant would have paid had he been a participant during the period for which he desires credit and his payment of an additional amount as the equivalent of the contributions of the employer on account of such military service.
D. 
Employer contributions. Employer contributions required under the provisions of the Act, as determined by the actuary in accordance with the Act, shall become the obligation of the employer and shall be paid into the pension fund by annual appropriations.
A. 
Normal retirement. Each participant shall be entitled to normal retirement benefits, provided he retires on or after his normal retirement date.
B. 
Normal retirement benefit. Each participant entitled to normal retirement benefits pursuant to this § 48-5 shall receive during his lifetime a monthly retirement income commencing at his normal retirement date, equal to 50% of his final monthly average salary; provided, however, that payment of benefits upon retirement shall be conditioned upon a participant's being subject to service from time to time as a police reserve in cases of riot, tumult or preservation of the public peace until unfitted for such service, at which time such participant shall be finally discharged by reason of age or disability upon written notice from the employer.
C. 
Late retirement. A participant may continue to work beyond his normal retirement date subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of § 48-5A continues to work beyond his normal retirement date, there shall be no retirement benefits paid until employment ceases and retirement begins. The retirement benefit of a participant who retires after his normal retirement date shall be calculated on the basis of his final monthly average salary as of such participant's actual date of retirement.
D. 
Service increment benefits. In addition to the pension benefit provided in Subsections B and C of this section, a service increment benefit shall be payable to a participant who has retired under this section if such participant has completed one or more years of aggregate service in excess of the years of aggregate service required to attain his normal retirement date with the employer. The amount of increment shall be an additional monthly benefit of 1/40 of the amount of monthly retirement benefit otherwise payable, multiplied by the number of completed years of aggregate service in excess of the number of years of aggregate service required to attain his normal retirement date. In no case shall the total service increment exceed $500 per month, and in no case will the service increment for any participant be based on any year of aggregate service completed after the date the participant has attained 65 years of age.
E. 
Deferred vested retirement. A participant who terminates employment before attaining his normal retirement date, but after completing 12 years of aggregate service, shall be entitled to vest his or her retirements benefits, subject to the conditions set forth below:
(1) 
Participant must file with the plan administrator a written notice of his intention to vest at least 30 days prior to the date the participant intends to terminate his service and be in good standing with the employer on the date of the notice to vest.
(2) 
The plan administrator shall indicate on the notice to vest the annual salary of the participant as of the date of said notice to vest.
(a) 
For a participant hired prior to January 1, 2004, the deferred vested retirement shall be determined as follows: upon reaching the date that would have been the participant's normal retirement date, the participant shall be entitled to receive a pension benefit computed as his normal retirement benefit, multiplied by his vesting percentage, which shall be 60% upon completion of 12 years of aggregate service, and increasing by 5% for each additional completed year of aggregate service to a maximum of 100%.
(b) 
For a participant hired on or after January 1, 2004, the deferred vested retirement shall be determined as follows: upon reaching the date that would have been the participant's normal retirement date, the participant shall be entitled to receive a pension benefit computed as his normal retirement benefit based on his or her annual salary on said notice to vest, multiplied by the percentage that his or her years of aggregate service bears to the years of aggregate service that the participant would have rendered had he continued in employment until his normal retirement date.
F. 
Cost-of-living adjustment. Commencing on January 1, 1999. in any year in which the Consumer Price Index has changed by at least 1% from the prior year, participants who are receiving retirement allowances of any kind from the pension fund by reason of and after the termination of employment of the participant shall have their retirement benefit increased by 6.66% up to a total maximum of 40%. However, a participant shall receive no increase in the amount of monthly income payments if the amount of such monthly income is greater than 50% of the highest paid patrolman's gross pay on such date. Any cost-of-living increase will not exceed the percentage increase in the Price Index from the year in which the participant last worked and in no event will the amount of monthly retirement benefit be more than 130% of the amount of the retirement benefit the participant would have received had the provisions of this section not been in effect. No cost-of-living increase shall result in a monthly retirement benefit which exceeds 75% of the participant's final average monthly salary as determined on the date his monthly retirement benefit was first calculated. No cost-of-living increase shall be made if such increase would impair the actuarial soundness of the plan.
G. 
Payment of benefits. Retirement payments shall be payable as of the first day of the month coincident with or next following the participant's retirement date and the first day of each month thereafter during the participant's lifetime.
A. 
Disability benefits.
(1) 
A participant who is totally and permanently disabled and who is not otherwise eligible for a normal retirement benefit shall, upon application to the plan administrator, be entitled to a monthly disability benefit equal to:
(a) 
25% of his monthly compensation as of the date of his death, for a participant with less than ten year of accrual service.
(b) 
50% of his monthly compensation as of the date of his death, for a participant with 10 or more years of accrual service.
(2) 
Monthly disability benefit payments shall begin on the earliest first day of the month on or after the date the participant meets the requirements under this section. Such payments shall continue through the first day of the month before the earliest of his retirement date (normal retirement date, if earlier), the date of his death or the day following the date he is no longer totally and permanently disabled.
(3) 
If the payments continue through the first day of the month before the participant's superannuation retirement date, retirement benefits shall be provided for him on his superannuation retirement date under the provisions of § 48-4 as if he were an active participant. His accrued benefit shall be equal to the accrued benefit as of the day before the disability benefit began. However, such accrued benefit shall not be less than the amount of monthly disability payment paid to him under this section. If, before the participant's superannuation retirement date, he recovers and returns to active work for the employer within one month of his recovery, the payments shall stop and he shall again become an active participant. If, before the participant's superannuation retirement date, he recovers and does not return to active work for the employer within one month of his recovery, the payments shall stop and his benefits shall be redetermined, on the date he ceased to be an employee, under the vested benefits section of § 48-5.
B. 
In-service disability. A participant who is totally and permanently disabled in the line of duty shall be deemed to be fully vested in his pension and entitled to a normal retirement benefit. For in-service disabilities of participants hired on or after January 1, 2004, the plan shall be subrogated to the right of the claimant to the extent of any payments made under the act of June 2, 1915 (P.L. 736, No. 338), known as "the Pennsylvania Workmen's Compensation Act" or the act of June 28, 1935 (P.L. 477, No. 193), referred to as the "Enforcement Officer Disability Benefits Law."
C. 
Payment of disability benefits. Disability payments shall be made monthly as of the first day of each month, commencing as of the first day of the month immediately following or coincident with the participant's disability date and continuing until the earliest of the death of the participant, cessation of total and permanent disability or the date the participant attains his normal retirement date. If a participant fails to return within three months to his position as an employee of the employer upon cessation of total and permanent disability prior to his normal retirement date, his date of termination shall be his disability date.
A. 
Preretirement death benefits payable to beneficiary. In the event a participant hired on or after January 1, 2004, who has not attained entitlement to retirement benefits or disability benefits, dies during employment or dies after termination of employment but prior to receiving a refund of accumulated contributions, and the participant's beneficiary is not entitled to a benefit described in Subsection B of this section, the participant's designated beneficiary shall be entitled to receive a refund of the participant's accumulated contributions to the plan, payable in one cash lump sum as soon as practicable following the participant's death.
B. 
Preretirement death benefits for participants hired prior to January 1, 2004.
(1) 
A participant who was hired prior to January 1, 2004, and who dies while an employee and is survived by a spouse to whom he was continuously married through the one-year period ending on the date he dies or who has a dependent child under the age of 18 on the date he dies, shall be entitled to a monthly benefit equal to:
(a) 
1/12th of 25% of his annual salary as of the date of his death for a participant with less than 10 years of employment; or
(b) 
1/12th of 50% of his annual salary as of the date of his death for a participant with 10 or more years of employment.
(2) 
Any benefits paid under this section shall begin on the first day of the month on or after the participant's death and shall continue to the later of the date of the surviving spouse's death or the date there is no longer a surviving child under the age of 18. However, payments under this section shall cease on the date of the surviving spouse's remarriage.
(3) 
If any benefits are paid under this section, no other benefits shall be payable under any other provision or section of this plan.
C. 
Survivor benefit.
(1) 
In the event of the death of a participant: (i) who would be eligible to receive an immediate payment of retirement benefits if he had elected to retire on the day before his death; or (ii) who is receiving such benefits, a survivor benefit shall be payable under this Subsection C.
(2) 
In the event of the death of a participant who has terminated employment, vested his benefit pursuant to § 48-5E and is entitled to a deferred vested retirement pursuant to § 48-5E, but dies before commencing receipt of his retirement benefit, a survivor benefit shall be payable under this § 48-7C; however in no circumstances shall the survivor benefit commence before the date that the participant would have been eligible to commence his retirement benefit had he not died.
(3) 
The survivor benefit shall be equal to 50% of the monthly retirement benefit which the participant was receiving or would have been receiving had he retired on the day before his death.
(4) 
The survivor benefit provided for in this Subsection C shall be payable to the widow or widower of the deceased participant until such widow's or widower's death. If there is no widow or widower of the deceased participant, the survivor benefit provided for in this subsection shall be payable in equal shares to the deceased participant's child or children who have not attained age 18 as of the date on which survivor benefit payments under this subsection would otherwise be payable to the child or children. Payments to each surviving child shall cease as of the earlier of such child's death or attainment of age 18. Such child's share of the survivor benefit shall be reallocated in equal shares to any remaining surviving children, then living, who have not attained age 18. If survivor benefits are payable under this section, no survivor benefits shall be payable under any other sections of this plan.
A. 
Rights of terminated employees. If a participant ceases to be an employee except as otherwise herein before provided, his interest and rights under this plan shall be limited to those contained in the following sections of this section.
B. 
Refund of accumulated contributions. If a participant whose employment with the employer has been terminated for any reason prior to his normal retirement date and is not eligible for retirement benefits or disability benefits under the plan, such participant or his beneficiary shall be entitled, upon request, to receive a refund of his accumulated contributions to the plan. Upon receipt of such accumulated contributions, neither the participant, his beneficiary nor any other survivor shall be entitled to any further payments from the plan.
C. 
Reemployment. If any participant shall have returned to him his accumulated contributions and shall afterward again become an employee, he shall not be entitled to the pension designated until 20 years after his reemployment, unless he shall return to the pension fund the amount withdrawn, in which event the period of 20 years shall be computed from the time during which the participant was not an employee.
A. 
Explanation. In recognition of the fact that the plan must comply in form, content and operation with certain provisions of the Internal Revenue Code, and in spite of the limited applicability of such provisions to the normal operation of the plan, the following sections detail the limitations and parameters applicable to maintaining favorable tax treatment of funds contributed to the plan under federal law.
B. 
Definitions. The following words and phrases are hereby introduced and defined for purposes of this section only:
LEASED EMPLOYEE
Any person (other than an employee of the recipient) who, pursuant to an agreement between the recipient and any other person ("leasing organization"), has performed services for the recipient [or for the recipient and related persons determined in accordance with Code Section 414(n)(6)] on a substantially full-time basis for a period of at least one year, and such services are under the primary direction and control of the recipient. A leased employee shall not be considered an employee of the recipient.
LIMITATION YEAR
The plan year, for purposes of applying the limitations under the current section.
C. 
Maximum annual benefit.
(1) 
General rule. Except as otherwise provided, this plan shall at all times comply with the provisions of Code Section 415 and the regulations thereunder, the terms of which are specifically incorporated herein by reference. If a benefit payable to a participant under this plan would otherwise exceed the limit under Code Section 415, the benefit will be reduced to the maximum permissible benefit.
(2) 
Effective date. If there is more than one permissible effective date for any required change in the Code Section 415(b) provisions, then the change shall be effective as of the latest permissible effective date; however, any adjustment in the dollar limit under Code Section 415(b)(1)(A), whether required or permissible, shall take effect automatically as of the earliest permissible effective date. The "applicable mortality table" in Rev. Rul. 2001-62 became effective as of December 31, 2002.
(3) 
No reduction in accrued benefits. Notwithstanding the above, no change in the limits under this section shall reduce the benefit of any participant.
(4) 
Multiple plans. If a participant also participates in one or more other plans that are required to be aggregated with this plan for purposes of determining the limits under Code Section 415(b), and if the aggregated benefits would otherwise exceed the limit under Code Section 415(b), then benefits shall be reduced first under the other plan.
(5) 
Mandatory contributions. participant contributions are annual additions, and any benefit attributable to participant contributions is not included in the benefit subject to the limits of Code Section 415(b). This subsection does not apply to contributions "picked up" in accordance with Code Section 414(h).
(6) 
Permissive service credit. Effective as of January 1, 1998, if a participant makes a purchase of permissive service credit [within the meaning of Code Section 415(n)] under the plan, the benefit derived from the contributions made to purchase the service credit shall be treated as part of the benefit subject to the limitations under this section.
D. 
Limit on annual additions.
(1) 
Annual additions. Except as otherwise provided, annual additions (which include participant contributions) under this plan shall at all times comply with the provisions of Code Section 415(c) and the regulations thereunder, the terms of which are specifically incorporated herein by reference. If an annual addition would otherwise exceed the limit under Code Section 415(c), the excess annual addition will be allocated in accordance with Reg. Section 1.415-6(b)(6)(ii).
(2) 
Multiple plans. If a participant also participates in one or more other plans that are required to be aggregated with this plan for purposes of determining the limits under Code Section 415(c), and if the annual additions would otherwise exceed the limit under Code Section 415(c), annual additions will first be reduced under the other plan. If there is more than one other plan, annual additions will first be reduced under the plan with the greatest amount of annual additions.
(3) 
Effective date. The limits under which Code Section 415(c) are adjusted periodically in accordance with changes in the law or cost-of-living adjustments without the need for a plan amendment. If there is more than one permissible effective date for any required change relating to Code Section 415(c), then the change shall be effective as of the earliest permissible effective date.
E. 
Leased employees and independent contractors. Leased employees and independent contractors are not eligible to participate in this plan. Any person whom the Borough Council does not regard as being an employee shall not be eligible to participate.
F. 
Limit on compensation. Compensation is subject to the limitation under Code Section 401(a)(17), which is $210,000 for the plan year beginning in 2005. The limit is automatically adjusted periodically, without formal amendment, for changes in the law and cost-of-living adjustments under Code Section 401(a)(17).
G. 
Multiple plan reduction. Code Section 415(e) applied for limitation years beginning prior to 2000.
H. 
Vesting upon plan termination. Upon the termination of this plan, or complete discontinuance of contributions [within the meaning of pre-ERISA Code Section 401(a)(7)] to this plan, each participant as of the date that such termination or discontinuance shall become vested to the extent that the plan is funded.
I. 
Minimum required distributions. Notwithstanding any provision in this plan to the contrary, the distribution of a participant's benefits shall be made in accordance with the requirements and conditions and shall otherwise comply with Code Section 401(a)(9). Any distribution option under the plan that is inconsistent with Section 401(a)(9) of the Code shall be inoperative to the extent of the inconsistency. Effective as of January 1, 2003, all distributions under the plan shall be made in accordance with Reg. Section 1.401(a)(9)-1 through 1.401(a)(9)-9. For calendar years prior to 2003, distributions were made in accordance with the 1987 proposed regulations, except to the extent that those proposed regulations were overridden by amendments to the Code.
(1) 
Distributions.
(a) 
A participant's benefits shall be distributed to him not later than April 1 of the calendar year following the later of:
[1] 
The calendar year in which the participant attains age 70 1/2; or
[2] 
The calendar year in which the participant retires.
(b) 
Alternatively, distributions to a participant must begin no later than the applicable April 1 as determined under the preceding sentence.
(2) 
Distributions to a participant and his beneficiaries shall only be made in accordance with the incidental death benefit requirements of Code Section 401(a)(9)(G) and the regulations thereunder.
(3) 
Nothing in this section gives any participant (active or retired), beneficiary, or "alternate payee" the right to elect any time or method of a distribution not provided for in another section of the plan.
J. 
Domestic relations order. All rights and benefits, including elections, provided to a participant in this plan may be subject to the rights afforded to any "alternate payee" pursuant to a domestic relations order as provided by applicable state law.
K. 
Direct rollover.
(1) 
This section applies to distributions made on or after January 1, 1993. 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 plan administrator, to have any portion of an eligible rollover distribution 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: (i) 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; (ii) any distribution to the extent such distribution is required under Code Section 401(a)(9); (iii) the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and (iv) effective as of January 1, 2002, any hardship withdrawal. Effective as of January 1, 2002, clause (iii) does not apply to any after-tax participant contributions that are paid to an individual retirement account or annuity described in Code Section 408(a) or (b), or to a qualified defined contribution plan described in Code Section 401(a) or 403(a) that agrees to separately account for amounts so transferred, 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, prior to January 1, 2002, an eligible retirement plan is an individual retirement account or individual retirement annuity. Effective as of January 1, 2002, an "eligible retirement plan" includes 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.
(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)(11), are distributees with regard to the interest of the spouse or former spouse.
(d) 
A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee.
L. 
Nonspouse beneficiaries. Effective as of January 1, 2007, if a beneficiary who is not a surviving spouse is entitled to receive what would otherwise be an "eligible rollover distribution," the beneficiary may, in accordance with Code Section 402(c)(11), make a trustee-to-trustee transfer of that amount to an IRA or individual retirement annuity (other than an endowment contract),. provided that:
(1) 
The transfer is made not later than the end of the fourth year after the year of the participant's death; and
(2) 
The account or annuity to which the amount is transferred is treated as an inherited IRA or individual retirement annuity in accordance with Code Section 408(d)(3)(C).
M. 
Consent for lump-sum distributions. Effective January 1, 2006, notwithstanding any other provision of the plan, any distribution to a participant made prior to the earlier of age 62 or normal retirement age of an amount in excess of $1,000 that is an eligible rollover distribution as set forth in the plan and the Code shall be made only upon consent of the participant.
N. 
Credit for qualified military service. Notwithstanding any provision of this plan to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Code.
A. 
Actuarial valuations.
(1) 
The actuary to the plan shall perform an actuarial valuation at least biennially. Each biennial actuarial valuation report shall be made as of the beginning of each plan year occurring in an odd-numbered calendar year, beginning with the year 1985.
(2) 
Such actuarial valuation shall be prepared and certified by an approved actuary, as such term is defined in Act 205.
(3) 
The expenses attributable to the preparation of any actuarial valuation report or investigation required by Act 205 or any other expense which is permissible under the terms of Act 205 and which are directly associated with administering the plan shall be an allowable administrative expense payable from the assets of the trust. Such allowable expenses shall include, but shall not be limited to, the following:
(a) 
Investment costs associated with obtaining authorized investments and investment management fees;
(b) 
Accounting expenses;
(c) 
Premiums for insurance coverage on fund assets;
(d) 
Reasonable and necessary counsel fees incurred for advice or to defend the fund; and
(e) 
Legitimate travel and education expenses for officials of the plan.
(4) 
The employer shall monitor the services provided to the plan to ensure that the expenses are necessary, reasonable and benefit the plan, and further provided, that the administrator shall document all such expenses item by item and, where necessary, hour by hour.
B. 
Duties of the chief administrative officer.
(1) 
The actuarial reports described above shall be prepared and filed under the supervision of the chief administrative officer.
(2) 
The chief administrative officer of the plan shall determine the financial requirements of the plan on the basis of the most recent actuarial report and shall determine the minimum obligation of the City with respect to funding the plan for a given plan year. The chief administrative officer shall submit the financial requirements of the plan and the minimum obligation of the City to Council annually and shall certify the accuracy of such calculations and their conformance with Act 205.
C. 
Modification of benefits. Prior to the adoption of any provision that modifies a benefit provided hereunder, the chief administrative officer shall provide to Council a cost estimate of the proposed modification. Such estimate shall be prepared by an approved actuary, which estimate shall disclose to Council the impact of the proposed modification on the future financial requirements of the plan and the future minimum obligation of the City with respect to the plan.
D. 
Utilization of state aid. Payments of general municipal state aid, or any other amount of state aid received pursuant to Act 205 from the Commonwealth of Pennsylvania, which are received by the City and deposited into the fund, shall be used as follows:
(1) 
To reduce the amortization of the unfunded liability; or
(2) 
After such liability has been funded, to apply against the annual obligation of the City; or
(3) 
To the extent that the payments may be in excess of such obligation, to reduce member contributions hereunder.
E. 
City contributions. The remainder of the annual contributions required under provisions of Act 205, as determined by the actuary to the plan in accordance with Act 205, shall become the obligation of the City and shall be paid into the fund by annual appropriations.
[1]
Editor's Note: See the Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101 et seq. (1984, Dec. 18, P.L. 1005, No. 205).
A. 
Operation of the pension fund.
(1) 
Council is hereby authorized to hold and supervise the investment of the assets of the pension fund, subject to the provisions of the laws of the Commonwealth of Pennsylvania and of this plan and any amendment thereto.
(2) 
The pension fund shall be used to pay benefits as provided in the plan and, to the extent not paid directly by the employer, to pay the expenses of administering the plan pursuant to authorization by Council.
(3) 
The employer intends the plan to be permanent and for the exclusive benefit of its employees. It expects to make the contributions to the pension fund required under the plan. The employer shall not be liable in any manner for any insufficiency in the pension fund; benefits are payable only from the pension fund and only to the extent that there are monies available therein.
(4) 
The pension fund will consist of all funds held by Council under the plan, including contributions made pursuant to the provisions hereof and the investments, reinvestments and proceeds thereof. The pension fund shall be held, managed, and administered pursuant to the terms of the plan. Except as otherwise expressly provided in the plan, Council has exclusive authority and discretion to manage and control the pension fund assets. Council may, however, appoint a trustee, custodian and/or investment manager, at its sole discretion. If Council does not appoint a trustee, the trustee shall be Council.
(5) 
If all plan assets are held in one or more custodial accounts or annuity contracts issued by an insurance company licensed to do business in Pennsylvania, then the Council does not need to appoint a trustee and plan assets shall be administered in accordance with the other provisions of this plan and the terms of the agreement with the insurance company. If there is a separate trust document, then the terms of that document shall supersede the provisions of this section. If the Council fails to name a trustee, the City shall be the trustee.
B. 
Powers and duties of Council. With respect to the pension fund, Council shall have the following powers, rights and duties, in addition to those vested in it elsewhere in the plan or by law, unless such duties are delegated.
(1) 
To retain in cash so much of the pension fund as it deems advisable and to deposit any cash so retained in any bank or similar financial institution (including any such institution which may be appointed to serve as trustee hereunder), and shall include the right to hold funds on a temporary basis in accounts or investments that do not bear interest.
(2) 
To invest and reinvest the principal and income of the fund and keep said fund invested, without distinction between principal and income, in securities which are at the time legal investments for fiduciaries under the Pennsylvania Fiduciaries Investment Act, or as the same may be subsequently modified or amended.
(3) 
To sell property held in the fund at either public or private sale for cash or on credit at such times as it may deem appropriate; to exchange such property; to grant options for the purchase or exchange thereof.
(4) 
To consent to and participate in any plan of reorganization, consolidation, merger, extension or other similar plan affecting property held in the fund; to consent in any contract, lease, mortgage, purchase, sale or other action by any corporation pursuant to any such plan.
(5) 
To exercise all conversion and subscription rights pertaining to property held in the fund.
(6) 
To exercise all voting rights with respect to property held in the fund and, in connection therewith, to grant proxies, discretionary or otherwise.
(7) 
To place money at any time in a deposit bank deemed to be appropriate for the purposes of this plan, no matter where situated, including in those cases where a bank has been appointed to serve as trustee hereunder, the savings department of its own commercial bank.
(8) 
In addition to the foregoing powers, Council shall also have all of the powers, rights and privileges conferred upon trustees by the Pennsylvania Fiduciaries Investment Act, or as the same may be subsequently modified or amended, and the power to do all acts, take all proceedings and execute all rights and privileges, although not specifically mentioned herein, as Council may deem necessary to administer the pension fund.
(9) 
To maintain and invest the assets of this plan on a collective and commingled basis with the assets of the other pension plans maintained by Council, provided that the assets of each respective plan shall be accounted for and administered separately.
(10) 
To invest the assets of the pension fund in any collective commingled trust fund maintained by a bank or trust company, including any bank or trust company which may act as a trustee hereunder. In this connection, the commingling of the assets of this plan with assets of other eligible, participating plans through such a medium is hereby specifically authorized. Any assets of the plan which may be so added to such collective trusts shall be subject to all of the provisions of the applicable declaration of trust, as amended from time to time, which declaration, if required by its terms or by applicable law, is hereby adopted as part of the plan, to the extent of the participation in such collective or commingled trust fund by the plan.
(11) 
To make any payment or distribution required or advisable to carry out the provisions of the plan, provided that, if a trustee is appointed by Council, such trustee shall make such distribution only at the direction of Council.
(12) 
To compromise, contest, arbitrate, enforce or abandon claims and demands with respect to the plan.
(13) 
To retain any funds or property subject to any dispute without liability for the payment of interest thereon, and to decline to make payment or delivery thereof until final adjudication is made by a court of competent jurisdiction.
(14) 
To pay, and to deduct from and charge against the pension fund, any taxes which may be imposed thereon, whether with respect to the income, property or transfer thereof, or upon or with respect to the interest of any person therein, which the fund is required to pay; to contest, in its discretion, the validity or amount of any tax, assessment, claim or demand which may be levied or made against or in respect to the pension fund, the income, property or transfer thereof, or in any matter or thing connected therewith.
(15) 
To appoint any persons or firms (including but not limited to accountants, investment advisors, counsel actuaries, physicians, appraisers, consultants, professional plan administrators and other specialists), or otherwise act to secure specialized advice or assistance, as it deems necessary or desirable, in connection with the management of the fund; to the extent not prohibited by applicable law, Council shall be entitled to rely conclusively upon and shall be fully protected in any action or omission taken by it in good faith reliance upon the advice or opinion of such persons or firms, provided such persons or firms were prudently chosen by Council, taking into account the interests of the participants and beneficiaries and with due regard to the ability of the persons or firms to perform their assigned functions.
(16) 
To retain the services of one or more persons or firms for the management of (including the power to acquire and dispose of) all or any part of the fund assets, provided that each of such persons or firms is registered as an investment advisor under the Investment Advisors Act of 1940, is a bank (as defined in that Act), or is an insurance company qualified to manage, acquire or dispose of pension trust assets under the laws of more than one state; in such event, Council shall follow the directions of such investment manager or managers with respect to the acquisition and disposition of fund assets, but shall not be liable for the acts or omissions of such investment manager or managers, nor shall it be under any obligation to review or otherwise manage any fund assets which are subject to the management of such investment manage or managers. If Council appoints a trustee, the trustee shall not be permitted to retain such an investment manager except with the express written consent of Council.
C. 
Common investments. Council shall not be required to make separate investments for individual participants or to maintain separate investments for each participant's account, but may invest contributions and any profits or gains therefrom in common investments.
D. 
Compensation and expenses of appointed trustee. If a trustee is appointed, the trustee shall be entitled to such reasonable compensation as shall from time to time be agreed upon by Council and the trustee, unless such compensation is prohibited by law. Such compensation, and all expenses reasonably incurred by the trustee in carrying out his functions, shall constitute a charge upon Council or the pension fund, which may be executed at any time after 30 days' written notice to the Council. Council shall be under no obligation to pay such costs and expenses, and in the event of its failure to do so, the trustee shall be entitled to pay the same or to reimburse itself for the payment thereof from the pension fund.
E. 
Periodic accounting. If a trustee is appointed, the pension fund shall be evaluated annually, or at more frequent intervals, by the trustee and a written accounting rendered as of each fiscal year end of the fund, and as of the effective date of any removal or resignation of the trustee, and such additional dates as requested by Council, showing the condition of the fund and all receipts, disbursements and other transactions effected by the trustee during the period covered by the accounting, based on fair market values prevailing as of such date.
F. 
Value of the pension fund. All determinations as to the value of the assets of the pension fund, and as to the amount of the liabilities thereof, shall be made by Council or its appointed trustee, whose decisions shall be final. In making any such determination, Council or the trustee shall be entitled to seek and rely upon the opinion of or any information furnished by brokers, appraisers and other experts, and shall also be entitled to rely upon reports as to sales and quotations, both on security exchanges and otherwise as contained in newspapers and in financial publications.
G. 
Plan administration expenses. All reasonable expenses incident to the functioning of the administrator may be paid by the plan, to the extent permitted by law and not otherwise paid by the employer.
A. 
Amendment.
(1) 
The City shall have the right to amend this plan at any time; provided, however, that no such action shall be effective to permit any part of the corpus or income of the plan established herewith to be used for, or diverted to, purposes other than the exclusive benefit of the participants and their beneficiaries, and defraying the reasonable expenses of administering the plan. The City retains the right to amend the plan at any time.
(2) 
No amendment to the plan (including a change in the actuarial basis for determining optional or early retirement benefits) or restricting a participant's right to those benefits shall be effective to the extent that it has the effect of decreasing a participant's accrued benefit.
A. 
Plan not a contract of employment. No employee of the employer, nor anyone else, shall have any rights whatsoever against the employer or the administrator as a result of this plan, except those rights expressly granted to them hereunder. Nothing herein shall be construed to give any employee the right to remain an employee of the employer.
B. 
Gender and number. For purposes of the plan and wherever plainly necessitated by the person or context, the masculine shall be read for the feminine, and the singular shall be read for the plural.
C. 
Expenses. To the extent permitted by state law, all expenses related to the operation and administration of the fund and plan shall be paid from the assets of the fund.
D. 
Construction. The validity of the plan or any of its provisions shall be determined and construed pursuant to the laws of the Commonwealth of Pennsylvania, the federal government, and the agencies thereof.
E. 
Severability of provisions. In the event that any provision, section, subsection, paragraph, sentence, clause, or other part of the plan shall be held to be invalid, such invalidity shall not affect or impair any remaining provisions, sections, subsections, paragraphs, sentences, clauses, or other parts of the plan.
F. 
Headings. The headings and subheadings employed within the current document have been inserted for convenience of reference and are to be ignored in the construction of the provisions hereof.
G. 
Incapacity of participant. If any participant shall be physically or mentally incapable of receiving or acknowledging receipt of any payment of benefits hereunder, the administrator, upon the receipt of satisfactory evidence that such participant is incapacitated to the aforesaid extent and that another person or institution maintains him, may provide for such payment of benefits hereunder to such person or the institution maintaining him, and any such payments so made shall be deemed for every purpose to have been made to such participant.
H. 
Protective clause relative to administration. Subject to the provisions of all laws applicable hereto, and unless otherwise specifically required, no past, present or future officer of the employer shall be personally liable to any participant, beneficiary or other person under any provision of the plan.
I. 
Sole benefit. The income and principal of the plan are for the sole use and benefit of the participants covered hereunder and, to the extent permitted by law, shall be free, clear and not in any way liable for debts, contracts or agreements, and from all claims and liabilities now or hereafter incurred by any participant, beneficiary, or alternate payee.
J. 
Assignment. Except as provided in § 48-9J hereof, the pension payments herein provided for shall not be subject to attachment, execution, levy, garnishment or other legal process, and shall be payable only to the former participant, his survivors or his designated beneficiary, or alternate payee and shall not be subject to assignment or transfer.
[Adopted 2-27-2012 by Ord. No. 1776]
A pension plan is hereby established for the City's nonuniformed employees and elected officials. Such plan shall be under the direction of the Council of the City of DuBois and shall be applied under such regulations as the Council may prescribe. The effective date of this article shall be January 1, 2012; however, the plan established hereunder shall be deemed a continuation of the previous nonuniformed pension plan, as maintained and administered by PMRS, for state aid purposes.
As used in this article, the following terms shall have the meanings indicated:
COMMITTEE
The persons which may be appointed to serve in an advisory capacity to the Council in the administration of the plan.
CONTRIBUTION
The monies paid by the employer to the plan and/or the payroll deductions made monthly from the salaries of the participants and paid to the plan; except that "contributions" in § 48-17G shall mean total contributions paid by the participant and accumulated during the period of employment and participation in this plan.
COUNCIL
The governing body of the City of DuBois acting in the capacity of administrator of the nonuniformed employees pension plan established pursuant to this article.
EMPLOYER
The City of DuBois.
FUTURE SERVICE LIABILITY
The value of any participant's benefits which shall accrue by virtue of that participant's service rendered subsequent to the enactment of this article.
A. 
Every person duly appointed from time to time by the employer as a full-time nonuniformed employee working not less than 35 hours per week at a definite salary, subject to reasonable vacation and sick leave, to be included in the plan upon date of hire. The term "participant" shall also include elected officials, but such membership shall be optional. Any current full-time employee or elected official who did not become a participant of the plan upon date of hire or election shall be entitled to receive pension credit for any prior service to the City, provided that such participant deposits the required amount of member's contributions for the applicable period of time, together with interest at a rate of 6% compounded annually, from date of service to date of deposit.
B. 
Any current part-time employee hired by the employer prior to January 1, 2012, may elect to join the plan at any time and be eligible for the same benefits as a full-time employee. However, any part-time employee hired on or after January 1, 2012, shall not be eligible to participate in this plan and shall not receive any benefit from this plan.
PLAN
The nonuniformed pension plan established pursuant to this article.
SALARY
The amount of compensation received by a participant in each and every month, including base pay, overtime pay, longevity pay, shift differential, and any other such increments. The term "salary" shall include regular payments made for vacation time, sick time, compensatory time, personal days and bereavement leave. The term "salary" shall also include lump-sum payments for any unused days for any of the foregoing listed benefits which were earned during the highest five consecutive years of employment, as well as any severance payments made at the time of termination or retirement, provided that participant contributions are deducted from any such payments at the rate in effect at that time.
SERVICE
Total aggregate service, not necessarily continuous, with the employer.
TERMINATION
The cessation of service by the participant for any reason, including disability, resignation, and employee termination. Death shall not be considered a termination within the meaning of this article. Voluntary leaves of absence without pay shall not be considered a termination for the purposes of this article, but no period of such leave shall be computed in the total service for pension benefit purposes. Leaves of absence with pay shall not be considered a termination within the meaning of this article (provided that the municipality is able to certify to the Department of the Auditor General that such participant on a leave of absence with pay is within the definition of a participant as set forth herein), but such leaves may be computed in the total service for pension benefit purposes.
UNFUNDED LIABILITY
The present value of any participant's benefits accrued prior to the enactment of this article by virtue of that participant's prior service.
A. 
The Council shall administer the plan by such regulations as shall from time to time be necessary for the effective maintenance of the plan, provided that no regulation shall be contrary to the statutes of the Commonwealth of Pennsylvania and/or applicable federal regulations.
B. 
The Council shall appoint a committee, which shall act as an advisory body to the Council in the administration of the plan according to the regulations established pursuant to this section.
C. 
Committee.
(1) 
The Committee shall consist of two Administration participants, two participants of the plan representing the union, two retired individuals representing the retirees, and one Council member.
(2) 
All such persons so designated shall serve at the pleasure of the Council. Any member may resign upon written notice to the Council and the Committee. Any vacancies in the Committee arising from resignation, death or removal shall be filled by the Council by the procedure set out herein for the member of the Committee whose resignation, death or removal has created the vacancy.
(3) 
The Committee shall meet no less than annually, and members shall serve without compensation for their services.
D. 
The Committee shall act by such procedure as the Committee shall establish, provided that all decisions shall be by majority vote. The Committee may authorize one of its members to execute any document or documents on behalf of the Committee, may adopt bylaws and regulations as it deems necessary for the conduct of its affairs, and may appoint such accountants, counsel, specialists or such other personnel as it may deem desirable for the proper administration of the plan, provided that all such executions of documents, adoptions of bylaws and regulations, and appointments shall be approved by the Council.
E. 
The Committee shall keep a record of all its proceedings and acts which shall relate to the plan and shall keep all such books of accounts, records and other data as shall be necessary for the proper administration of the plan. All actions of the Committee shall be communicated to the Council.
F. 
All such reasonable expenses incurred in the administration of the plan, including, but not limited to, fees for the services of specialists, including actuaries, accountants, consultants, and legal counsel, shall be approved by the Council, and all may be paid from the plan, provided that no such payment shall be contrary to the statutes of the Commonwealth of Pennsylvania.
G. 
No member of the Council or the Committee established pursuant to this section shall incur any liability for any action or failure to act, excepting only liability for its own gross negligence or willful misconduct. The employer shall indemnify each member of the Council and the Committee against any and all claims, loss, damages, expense and liability arising from any action or failure to act, except for such that is the result of gross negligence or willful misconduct of such member.
A. 
Eligibility for normal retirement.
[Amended 1-12-2015 by Ord. No. 1804]
(1) 
Employees hired before January 1, 2013. A participant in the plan may retire from active employment on the first day of the month following the attainment of age 60, provided that the participant has completed 12 or more years of service with the employer.
(2) 
Employees hired on or after January 1, 2013. A participant in the plan may retire from active employment on the first day of the month following the attainment of age 60, provided that the participant has completed 20 or more years of service with the employer.
B. 
Normal retirement benefit.
[Amended 1-12-2015 by Ord. No. 1804]
(1) 
Employees hired before January 1, 2013.
(a) 
A participant who shall complete the age and service requirements as set forth in this section shall receive a pension for life in the amount equal to 2.50% multiplied by years of credited service with a maximum benefit of 90%, times the participant's average monthly salary over the participant's highest five consecutive years of employment.
(b) 
Subject further to those limitations imposed by the statutes of the Commonwealth of Pennsylvania, no offset or reduction from the benefit here provided for shall be made for any social security retirement benefits, workmen's compensation, or other benefits to which the participant is also entitled.
(c) 
The benefit herein provided shall be payable solely from the assets of the plan.
(2) 
Employees hired on or after January 1, 2013.
(a) 
A participant who shall complete the age and service requirements as set forth in this section shall receive a pension for life in the amount equal to 50% of the employee's average annual salary or wages received during the last or any five years of employment, whichever is higher.
(b) 
Subject further to those limitations imposed by the statutes of the Commonwealth of Pennsylvania, no offset or reduction from the benefit here provided for shall be made for any social security retirement benefits, workmen's compensation, or other benefits to which the participant is also entitled.
(c) 
The benefit herein provided shall be payable solely from the assets of the plan.
C. 
Early retirement benefit.
[Amended 1-12-2015 by Ord. No. 1804]
(1) 
Employees hired before January 1, 2013. A participant who has been involuntarily terminated after eight years of credited service or who has separated voluntarily after 20 years of credited service may retire early. Benefits will be actuarially reduced for each year or partial year thereof that early retirement takes place prior to age 60.
(2) 
Employees hired on or after January 1, 2013. A participant who has completed at least 20 years of service, but has not yet attained age 60, shall be entitled to a pension at age 60 if the participant continues paying monthly employee's contributions equal to the last amount due while in active employment until the employee reaches age 60.
D. 
Disability benefit.
[Amended 1-12-2015 by Ord. No. 1804]
(1) 
Employees hired before January 1, 2013.
(a) 
A member who has 10 or more years of credited service may, upon application or on application of one acting in the member's behalf, or upon application of a responsible official of the municipality, be retired by the City on a disability allowance if the physician designated by the City, after medical examination of the member, shall certify to the City that the individual is unable to engage in any gainful employment and that said member ought to be retired. When the disability of a member is determined to be service-connected, no minimum period of service shall be required for eligibility.
(b) 
A disability annuity payable from the total disability reserve account which, together with the municipal annuity and the member's annuity, if any, shall be sufficient to produce a retirement allowance of 30% of the member's final salary. Where the disability of the member is determined to be service-connected, the disability allowance shall equal 50% of the member's final salary. The disability annuity shall be reduced by the amount of any payments for which the member shall be eligible under the Act of June 2, 1915 (P.L. 736, No. 338), known as "The Pennsylvania Workmen's Compensation Act" or the Act of June 21, 1939 (P.L. 566, No. 284), known as "The Pennsylvania Occupational Disease Act."
(c) 
Any member with eight or more years of credited service entitled to retire for disability may, in lieu of such retirement, elect to retire not voluntarily under the provisions of Subsection C of this section.
(d) 
Should a disability annuitant die before the total disability retirement allowance received equals the amount of the member's accumulated deductions at the time of disability retirement, the City shall pay to the named beneficiary (if living, or if the named beneficiary predeceased the annuitant or no beneficiary was named, then to the annuitant's estate) an amount equal to the difference between such total retirement allowance received and the annuitant's accumulated deductions. If such difference is less than $100 and no letters have been taken out on the estate within six months after the disability annuitant's death, such difference may be paid to the undertaker or to any person or municipality who or which shall have paid the claim of the undertaker.
(2) 
Employees hired on or after January 1, 2013.
(a) 
Should an employee become totally and permanently disabled, after 10 years of service and before attaining the age of 60 years, the employee shall be entitled to the pension. Proof of total and permanent disability shall consist of a sworn statement from three practicing physicians, designated by the Board, that the employee is in a permanent condition of health which would permanently disable the employee from performing the duties of the position or office.
(b) 
The member shall be eligible to receive a normal retirement benefit, which shall not be reduced by eligibility for or receipt of Social Security benefits. Any member with 20 or more years of credited service entitled to retire for disability may, in lieu of such retirement, elect to retire not voluntarily under the provisions of Subsection C of this section.
E. 
Death benefit.
(1) 
A member who is entitled to a retirement allowance because of attaining 60 years of age or a member who is entitled to a voluntary early retirement allowance because of completing 20 years of credited service may file a written application for retirement requesting that such retirement become effective at the time of death.
(2) 
When applying for retirement, the member may elect one of the options provided in Subsection H of this section and nominate a beneficiary. The application shall be held by the City until: a) the member files a later application for a retirement allowance; or b) the death of the member while in municipal service.
(3) 
If a member entitled to a retirement allowance dies while in municipal service, benefits become effective as if the member had retired on the day immediately preceding death. The beneficiary receives the annuity option elected before the member's death. If an option was not filed with the City, it shall be considered that the member elected Option 1 as was provided by PMRS. In such event, payment under Option 1 shall be made to the beneficiary designated in the nomination of beneficiary form on file with the City.
F. 
Vested benefit.
(1) 
A vested deferred monthly benefit shall be provided for any participant whose termination date occurs prior to the participant's normal retirement date, provided that the participant shall have completed a minimum of 12 years of service with the employer and shall have notified the employer of such intention to vest within 90 days of the participant's date of termination. This benefit shall be computed in the same manner as set forth in this section.
(2) 
Such vested deferred monthly benefit shall be paid to the participant upon attainment of that participant's normal retirement age as set forth in this section.
(3) 
The surviving spouse of a participant who dies before his or her pension has vested shall be entitled to receive repayment of all money which the participant invested in the pension fund, including the participant's contributions and any excess interest previously awarded to the participant, plus interest or other increases in value of the participant's investment in the pension fund, unless the participant has designated another beneficiary for this purpose.
G. 
Termination.
(1) 
If for any reason a participant shall terminate service with the employer prior to becoming vested, that participant shall be entitled to a refund of that participant's contributions plus interest at a rate of 6% per annum. Such interest shall be uniform for all participants.
(2) 
If a participant shall subsequently return to service and return to the plan the contributions plus interest which were refunded to the participant upon termination, together with interest at a rate of 6% compounded annually from date of service to date of deposit, the participant shall be entitled to credit for the prior years of service to the extent of the return of contributions.
(3) 
Nothing in this section shall be construed to allow credit for service not actually given to the employer, except as specifically provided for in § 48-19.
H. 
Actuarial equivalent benefits.
(1) 
Options on superannuation, early retirement or vesting. At the time a member elects to receive a retirement benefit allowance, the benefit may be payable throughout the member's life, in which case the benefit is known as a "single life annuity." The member may alternatively elect at the time of retirement to receive the equivalent actuarial value in a lesser allowance, payable throughout life, with provisions that:
(a) 
Option 1. If the member dies before receiving in payments the present value of the retirement allowance as it was at the time of retirement, the balance, if less than $5,000, shall be paid in a lump sum to the designated beneficiary if living, or if the named beneficiary predeceased the member or if no beneficiary was named, then to the member's estate. If the balance is $5,000 or more, the beneficiary may elect, by application duly acknowledged and filed with the City, to receive payment of such balance according to any one of the following provisions:
[1] 
In a lump-sum payment; or
[2] 
In an annuity having a present value equal to the balance payable; or
[3] 
In a lump-sum payment and an annuity. Such annuity shall be of equivalent actuarial value to the balance payable less the amount of the lump-sum payment specified by the beneficiary.
(b) 
Option 2. Upon the annuitant's death, the retirement allowance shall be continued throughout the life of and paid to the survivor annuitant, if then living.
(c) 
Option 3. Upon the annuitant's death, one-half of the retirement allowance shall be continued throughout the life of and paid to the survivor annuitant, if then living.
(d) 
Option 4. A member may elect to receive, in one payment at the time of retirement, the full amount of the member's accumulated deductions (not to include excess investment monies) standing to his credit in the member's account. In so electing this option, the member forfeits the portion of the annuity paid for from the accumulated contributions, but shall continue to be entitled to an annuity comprised of the municipal contribution and any excess investment monies so credited to the account. Any member electing this option shall be entitled to receive his remaining annuity calculated in accordance with any of the other options provided for in this section.
(2) 
Should a member who has elected a single life annuity die before receiving in annuity payments the full amount of the total accumulated deductions standing to his or her credit in the member account on the effective date of retirement, the balance shall be paid to the designated beneficiary.
I. 
Nonalienation of benefits and vesting.
(1) 
No benefit under the plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge. Nor shall any such benefits be in any manner liable for or subject to garnishment, attachment, execution, levy or other legal process.
(2) 
Further, all benefits granted herein shall vest in the participant upon completion of the requirements for eligibility, and that participant's benefits shall continue in the amount and in the form in which that participant first became entitled to them.
J. 
Cost-of-living adjustment.
[Amended 1-12-2015 by Ord. No. 1804]
(1) 
Employees hired before January 1, 2013.
(a) 
An annual cost-of-living adjustment may be provided to a retired participant effective the first January following at least one year from the initial date of retirement. The amount of such increase is subject to the limitations as noted hereinafter:
[1] 
Such an increment shall not exceed the percentage increase in the Consumer Price Index as published by the Social Security Administration each year.
[2] 
In no case may the participant's total pension benefits exceed 90% of the retired participant's salary for computing retirement benefits.
[3] 
The retired participant's total cost-of-living adjustments shall not exceed 30% of the retiree's original pension benefit.
(b) 
Effective January 1, 2012, a cost-of-living adjustment shall be provided to all retirees and/or survivors who are receiving benefits as of December 31, 2011. The amount of the adjustment shall be equal to 3.6%.
(2) 
Employees hired on or after January 1, 2013. The cost-of-living adjustment to the normal retirement benefit is hereby eliminated because such benefit is not permissible under the Third Class City Code.
A. 
Contributions of the employer. Contributions to the plan by the employer shall be in an amount determined by the annual minimum municipal obligation (MMO) calculation, prepared in accordance with Act 205 of 1984, which is certified to the governing body of the City by September 30 and included in the City budget for the following year.
B. 
Contributions of participants.
[Amended 1-12-2015 by Ord. No. 1804]
(1) 
Employees hired before January 1, 2013.
(a) 
Participants shall contribute 3.5% of their total compensation to the funding of the plan. Such mandatory member contributions made since January 1, 1987, shall be picked up by the City and shall be treated as the employer's contributions in determining tax treatment under the United States Internal Revenue Code for federal tax purposes. For all other purposes, such pickup contributions shall be treated as contributions made by the member. If a member terminates prior to becoming eligible for any benefit or the member elects not to receive a benefit, that individual shall be entitled to all accumulated contributions, interest and any excess investment monies allocated to the member's account.
(b) 
Any future changes in the contributions requirement for participants may be enacted by an ordinance or resolution.
(2) 
Employees hired on or after January 1, 2013.
(a) 
Participants shall contribute 3.5% of their total compensation to the funding of the plan. Such mandatory member contributions made since January 1, 1987, shall be picked up by the City and shall be treated as the employer's contributions in determining tax treatment under the United States Internal Revenue Code for federal tax purposes. For all other purposes, such pickup contributions shall be treated as contributions made by the member. If a member terminates prior to becoming eligible for any benefit or the member elects not to receive a benefit, that individual shall be entitled to a return of the total amount paid to the pension fund by the member without interest.
(b) 
Any future changes in the contributions requirement for participants may be enacted by an ordinance or resolution.
C. 
Allocation of commonwealth funds. Any payments made by the State Treasurer to the employer from the monies received from the taxes paid on the premiums of foreign casualty insurance companies for purposes of retirement or disability benefit pensions for municipal employees shall be used as follows:
(1) 
To reduce the unfunded liability; or
(2) 
After such liability is funded, to apply against the annual obligation of the employer for future service cost; or
(3) 
To the extent that the payments may be in excess of such obligations, to reduce or eliminate the contributions paid by the participants.
D. 
Allocation of assets of existing pension plans. Any assets of any existing pension plans for the full-time, nonuniformed employees of the City are hereby transferred to the plan established pursuant to this article, and shall be applied against the unfunded liability.
E. 
Gifts, bequests, and grants. All other monies and property received by the plan, including gifts, bequests, devises, and grants, shall be applied equally against the participant and the employer portions of the future service cost unless otherwise specifically provided.
A. 
Credit for military service. Any participant in the plan with at least six months of service with the employer, who thereafter shall enter the military service of the United States of America, shall have credited to the participant's employment record for pension benefit purposes all of the time spent by the participant in such military service, provided that the participant returns to service with the employer within six months after said participant's separation from such military service.
B. 
Purchase of nonintervening military service credits.
[Amended 1-12-2015 by Ord. No. 1804]
(1) 
Employees hired before January 1, 2013.
(a) 
A service credit may be purchased for each year of military service or fraction thereof, not to exceed five years, by any participant of the plan, provided the participant has completed five years of service to the municipality subsequent to such military service. The amount due for the purchase of credit for military service, other than intervening military service, shall be computed by applying the average normal cost rate for the City's nonuniformed pension plan, as certified by the Public Employee Retirement Commission, but not to exceed 10%, to the member's average annual rate of compensation over the first three years of municipal service and multiplying the result by the number of years and fractional part of a year of creditable nonintervening military service being purchased, together with interest at the rate of 6% compounded annually from the date of initial entry of municipal service to the date of payment.
(b) 
Any participant of the plan shall be eligible to receive service credit for intervening or nonintervening military service as provided herein, provided that the member is not 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 services).
(2) 
Employees hired on or after January 1, 2013. The credit for military service is hereby eliminated because such benefit is not permissible under the Third Class City Code.
A. 
Matters or procedure not covered in this article shall be as set forth in Act 205 of 1984, as may, from time to time, be amended.
B. 
Should any change or mistake in records result in any member, beneficiary or survivor annuitant receiving from the plan more or less than the individual would have been entitled to receive had the records been correct, regardless of the intentional or unintentional nature of the error, and upon the discovery of such error the plan will correct the error and, so far as practicable, adjust the payments which may be made for and to such person in such a manner that the actuarial equivalent of the benefit to which the individual was correctly entitled shall be paid.
Upon termination of the plan, the assets shall be distributed as follows:
A. 
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 48-17 for all participants who have retired prior to the termination of the plan or who are eligible to retire at the time of the termination of the plan.
B. 
Sufficient funds shall be maintained to provide vested pension benefits prescribed in § 48-17 for all participants who are eligible for such benefits.
C. 
Any funds representing contributions from the remaining participants shall be returned to such participants with interest at a rate of 6% per annum.
D. 
Of the remaining funds, those which can be identified as contributions of the employer, or contributions other than those identified as unused commonwealth allocations, shall be distributed as the Council sees fit, provided that such distribution is made on a uniform basis.
E. 
All funds in excess of the funds described in Subsections A, B, C and D above shall be returned to the commonwealth as unused funds pursuant to the act of May 12, 1943 P.L. 259, No. 120, as amended, 72 P.S. § 2263.1 et seq.
A. 
Neither the establishment of the plan hereby created, nor any modification thereof, nor the creation of any fund or account, nor the payment of any benefits shall be construed as giving to any participant or other person any legal or equitable right against the employer, or any officer or employee thereof, or the Council, except as herein provided.
B. 
Under no circumstance shall the plan hereby created constitute a contract for continuing employment for any participant or in any manner obligate the employer to continue or to discontinue the services of an employee.
C. 
This plan has been established and shall be maintained by the employer in accordance with the laws of the Commonwealth of Pennsylvania. The plan shall continue for such period as may be required by such laws, provided that the employer may, by its own action, discontinue this plan should such laws provide, and the employer reserves the right to take such action in its sole and absolute discretion. Upon termination, the employer shall have no liability hereunder other than that imposed by law.
All investments by the Council of the assets of this plan shall comply with any applicable state statutes, rules and regulations with respect to municipal investments for nonuniformed pension funds and with such regulations as the Council shall establish for the purpose of investing such funds.
The Council reserves the right to amend, at any time, in whole or in part, any or all of the provisions of the plan, provided that no such amendment shall authorize or permit any part of the plan to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries, or their estates. Nor shall any amendment divest a participant of benefits vested by the provisions of § 48-17. All such amendments shall comply with the applicable statutes of the Commonwealth of Pennsylvania.
A. 
This plan shall be constructed according to the laws of the Commonwealth of Pennsylvania, and all provisions hereof shall be administered according to the laws of such commonwealth.
B. 
Wherever any words are used herein in the masculine gender, they shall be construed as though they were also used in the feminine gender in all cases where they would so apply; and wherever any words used herein are in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply.
C. 
Headings of sections and paragraphs of this article are inserted for convenience of reference. They constitute no part of this plan and are not to be considered in the construction thereof.
The provisions of this article shall be severable, and if any section, paragraph, clause, sentence, or words of this article hereby adopted are declared for any reason invalid, unlawful, or unconstitutional, it is the intent of the City that it would have passed all other sections, paragraphs, clauses, sentences, or words of this article independent of the elimination herefrom of any such portion as may be declared invalid, unlawful, or unconstitutional.
This article repeals all other ordinances and/or resolutions prior to the date of its enactment, which documents established, maintained, governed, or regulated a pension plan for the full-time, nonuniformed employees of the City of DuBois, it being further provided that the provisions of this article are intended to be a continuation of those existing in Ordinance No. 1543, as amended, to the extent they are consistent herewith.