[Ord. 2118, 12/9/2013; as amended by Ord. 2123, 5/12/2014]
There is hereby established by the Borough of Pottstown a Nonuniformed
Pension Plan (hereinafter referred to as the “plan”) and
the Borough of Pottstown Nonuniformed Pension Fund (hereinafter referred
to as the “fund”), for the benefit of all eligible, nonuniformed
employees of the Borough. The plan is intended to qualify under Section
401(a) of the Internal Revenue Code of 1986, as amended (the “code”),
and its related trust is intended to be tax-exempt under Section 501(a)
of the code.
[Ord. 2118, 12/9/2013; as amended by Ord. 2131, adopted 12/8/2014]
The Borough of Pottstown Nonuniformed Pension Plan (“nonuniformed
plan”) is hereby established pursuant to Ordinance 2118 for
the benefit of the nonuniformed employees of the Borough of Pottstown
in the form attached hereto, incorporated herein, which is marked
as Exhibit A.
[Ord. 2118, 12/9/2013]
The plan and fund shall become effective upon the effective
date of the Borough's withdrawal from the Pennsylvania Municipal Employee
Retirement System with regard to the existing retirement plan, the
"Pottstown Municipal Employee Retirement System (Nonuniform Employee
Pension Plan)" (hereinafter the "PMRS Plan"), as authorized by Ordinance
No. 2117.
[Ord. 2118, 12/9/2013]
As of the effective date of the plan and the fund, all assets
and liabilities of the PMRS Plan shall be transferred to the newly
established fund; thereafter, all payments and pensions and other
benefits shall be made from the fund and all contributions by the
members, by the Borough of Pottstown, and from other sources shall
be paid to the fund.
[Ord. 2118, 12/9/2013]
All individuals who meet the criteria for eligibility as defined
under the plan shall become members of the plan.
[Ord. 2118, 12/9/2013]
A Pension/Investment Board is hereby established for the purpose
of administering the plan and the fund, which Board shall be known
as the "Borough of Pottstown's Nonuniformed Pension/Investment Board"
(hereinafter the "Board").
A. The Board shall consist of seven members, three of whom shall be
municipal employees in the active employment of the Borough of Pottstown,
two of those to be elected by the AFSCME membership; one member who
shall be an elected Councilmember appointed by the Pottstown Borough
Council; one of whom shall be the Mayor of the Borough of Pottstown;
one of whom shall be the duly appointed Borough Manager of the Borough
of Pottstown; and one of whom shall be the duly appointed Finance
Director of the Borough of Pottstown. The third municipal employee
member shall be appointed by the members of the Board. The Board shall
elect a Chairman of the Borough of Pottstown Nonuniformed Pension/Investment
Board, and vacancies of the Board shall be filled in the same fashion
and manner as the previous occupant was selected.
B. Members of the Board shall serve as such without compensation.
C. The term of office for members of the Board shall be two years, provided
that any member of the Board who is a municipal employee shall cease
to be a member of the Board on the last day of his/her employment
as a nonuniformed employee of the Borough of Pottstown; and provided,
further, that any member of the Board who shall also be a member of
the Borough government shall cease to be a member of the Board on
the day he/she ceases to hold office as a Borough Council member and/or
Mayor. Members may be reappointed or reelected.
D. The duly appointed Manager of the Borough of Pottstown shall appoint
an executive secretary as the nonvoting Secretary of the Board, who
shall keep minutes of the Board's proceedings and all dates, records
and documents pertaining to the Board's administration of the plan
and fund.
E. No member of the Board shall be liable for any act or omission of
any other member of the Board, nor for any act or omission on his/her
own part, excepting only his/her own willful misconduct. The Borough
shall indemnify and save harmless each and every member of the Board
against any and all expenses, claims or liabilities arising from his
or her membership on the Board, except for expenses and liabilities
arising out of the Board member's own willful misconduct. Members
of the Board shall serve without bond.
F. No member of the Board shall vote on any matter in which he/she has
a direct personal interest.
G. The action of the Board shall be determined by the vote or other
affirmative expression of a majority of its members. All actions of
the Board shall be certified by its Chairman and attested to by its
Secretary.
H. The Board shall meet at least twice annually and at other times at
the call of the Chairman or the request of the majority of the Board.
I. Any member of the Board may be removed by the Borough Council for
just cause, defined as acts or omissions contrary to or inconsistent
with the best interests of the plan.
[Ord. 2118, 12/9/2013]
The Board shall have the following powers and duties:
A. Administration of the plan in accordance with the plan document and
an agreement of trust entered into by the Borough Council of the Borough
of Pottstown and a corporate fiduciary, which agreement of trust shall
permit the fiduciary to manage and operate the fund and to receive,
hold, invest and disburse any sum or sums as may be necessary to carry
out the plan and all other applicable statutes, ordinances and regulations;
or in accordance with an agreement of trust entered into by the Borough
Council of the Borough of Pottstown and a private fiduciary commonly
known as a "money manager" of the Board's selection, as recommended
through an investment consultant, which agreement of trust shall permit
the money manager to operate the fund and to receive, hold, invest
and disburse any sum or sums as may be necessary to carry out the
plan and all other applicable statutes, ordinances and regulations.
B. To make rules and regulations for the governance of the affairs of
the Board to better enable it to carry out its powers and duties imposed
hereunder.
C. To employ, upon approval of the Borough Council, retain and compensate
approved actuaries, accountants, attorneys, money managers and an
investment consultant, as it may deem necessary, to carry out its
duties hereunder. The expense of the administration of the fund and
the plan shall be paid from the assets of the fund.
D. To make all decisions pertinent to the award of any pension to any
applicant or participant or for the return of any individual contributions
to any person who may be entitled to the same under the plan.
E. To designate the depository of the plan funds received through the
Borough.
F. To make an annual report to the Council on the first Monday of February
of each year of all receipts, disbursements, expenditures, and investments
of the fund and such matters as should properly be embodied in such
a report.
[Ord. 2118, 12/9/2013]
The Board shall select and employ an actuary to calculate participant
benefits in accordance with the terms of the plan, applicable actuarial
practices (where not inconsistent with the plan), applicable law,
and the code. The Board may employ an independent auditor for the
purpose of reviewing and reporting on the fund on a periodic basis.
[Ord. 2118, 12/9/2013]
The amounts of the payments made by the Treasurer of the Commonwealth
of Pennsylvania from the monies received from the General Municipal
Pension System State Aid Program which are determined by the Council
to be deposited in the fund shall be used and applied as follows:
A. To pay expenses incurred for the administration of the fund and the
plan.
B. To reduce any unfunded liability, defined as the present value of
liability of the fund on account of retirement benefits payable under
this Part 8 to municipal employees of the Borough of Pottstown for
service prior to the date upon which they first made contributions
to the plan, offset by the value of any assets in the fund, or after
such liability has been funded.
C. To apply against the annual obligation of the Borough for future
service cost, defined as the amount of money required to be contributed
annually into the fund on account of benefits payable under the plan
to municipal employees of the Borough of Pottstown for service subsequent
to the date of the establishment of the plan, or to the extent that
the payment made is in excess of such obligation.
D. To reduce member contributions.
E. Any other monies paid into the fund shall be applied equally against
the member and Borough obligations for future service costs.
[Ord. 2118, 12/9/2013]
The plan and fund established by this Part 8 may be discontinued,
modified, altered, terminated or repealed according to law by future
ordinance.
[Ord. No. 2191, 12/9/2019]
1. Establishment of Pottstown 401(a) Nonuniformed Defined Contribution
Plan. The Borough of Pottstown does hereby establish a 401(a) Nonuniformed
Defined Contribution Plan for all eligible full-time employees as
set forth below:
A. Each full-time, eligible nonuniformed Borough employee hired on or
after January 1, 2020, shall be required to participate in a defined
contribution plan, also referred to as a "money purchase plan" (the
"DC Plan").
B. Employees hired after January 1, 2020, shall no longer be eligible
to participate in the defined benefit plan currently provided to nonuniformed
employees.
C. The DC Plan offered by the Borough is outlined in a summary sheet
with specific terms and conditions, which is attached hereto and marked
as Exhibit A.
D. The DC Plan shall be funded by contributions from the Pottstown Borough
general fund; by state aid received pursuant to the Municipal Pension
Plan Funding Standard and Recovery Act (Act 205 of 1984); and any other sums received or contributed to the Borough
to the extent authorized by law.
E. The Borough shall contribute 5% of each eligible employee's annual
compensation, which is to be paid at each pay period.
F. For purposes of the DC Plan, "compensation" means earnings reportable
as wages, tips and other compensation on the final pay stub either
of the year end or at the end of the employment, excluding severance
payments.
G. All other nonuniformed employees hired prior to January 1, 2020,
shall continue under the current defined benefit pension plan, and
such benefits shall remain unchanged by this section.
H. A complete copy of the DC Plan is attached hereto, incorporated herein,
marked as Exhibit B.
