[Ord. 632, 7/28/2005, Art. I]
1. As used
in this Part 6, the following terms shall have the meanings indicated:
AGE
The age attained by the employee at his or her last birthday.
AVERAGE COMPENSATION
The average monthly salary of the employee at any time of
reference computed over the final 48 months of compensation during
his continuous employment by the Township prior to such date of reference.
W-2 wages will be used for purposes of computing the average compensation.
BOARD
The Board of Supervisors of Warminster Township, Bucks County,
Pennsylvania.
CHIEF ADMINISTRATIVE OFFICER
The person who has primary responsibility for the execution
of the administrative affairs of this pension plan, or the designee
of that person.
EARLY RETIREMENT DATE
For the members of the Warminster Township Employees Organization
(WETO) and the nonbargaining employees, the first day of the month
coincident with or next following the date on which the member attains
age 55 and completes 20 years of service.
[Added by Ord. 648, 1/11/2007, § 1]
EFFECTIVE DATE
The effective date of this Part 6 shall be January 1, 2005.
EMPLOYEE
Any person in the full-time employ of the Township whose
customary employment by the Township is for not less than 35 hours
per week. Such employment must be permanent; any person hired on a
temporary or seasonal basis shall not be eligible for this plan.
FUND
All assets held by the trustee under the trust agreement
relating to this pension plan.
MEMBER
Any employee who has satisfied the eligibility requirements established in §
1-602 hereof and who is, at the time of reference, making such contributions as may be required pursuant to §
1-603, Subsection
1, hereof.
PLAN
The pension plan for the nonuniformed employees of Warminster
Township, as herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
SERVICE
The aggregate of a member's total periods of employment as
a full-time employee of the Township. If a member enters military
service, either voluntarily or by conscription, after he has been
employed for at least six months, such time spent in the Armed Forces
of the United States during a period of national emergency shall be
counted as service for purposed of this plan, provided such member
returns to service with the Township within six months after his discharge
or release from such active duty in the Armed Forces of the United
States. The time spent in military service due to voluntary extension
of such military service during a period of peacetime shall not be
included as service for the purpose of this plan. Time spent on Reserve
or National Guard training shall be included as service for purposes
of this plan.
TOTAL DISABILITY
A physical or mental condition that prevents the employee
from engaging in any remunerative employment on a full-time basis.
TOWNSHIP
The Township of Warminster, Bucks County, Pennsylvania.
TRUST AGREEMENT
The contract between the Township and the trustee establishing
the terms by which and under which the fund is invested, distributed,
accounted for and terminated, as the same now exists and as it may
hereafter be amended.
TRUSTEE
The Board or any other agency or person appointed by the
Board to serve in that capacity.
2. Wherever
applicable as used herein, unless the context specifically provides
otherwise, the singular and plural shall be interchangeable, and the
masculine or feminine shall include either sex.
[Ord. 632, 7/28/2005, Art. II]
1. All persons who are employees (as defined in this plan) as of the
effective date hereof shall be a member as of the effective date.
2. Any person who becomes an employee after the effective date hereof
shall become a member on the first day of service as an employee.
[Ord. 632, 7/28/2005, Art. III]
1. Contributions by members. Members are not required to contribute
into the fund. However, the Board, at its own discretion, may require
members to contribute in order to keep the fund actuarially sound.
If contributions are required, members would contribute a percentage
of their annual compensation. The Board, on an annual basis, will
determine the percentage to be used in deducting the member's contributions.
Individual records or contributions by members shall be maintained,
including all interest credited to the member's contribution account.
Interest to be credited shall be 5% annually.
2. Refund of member's contributions. Any member who for any reason shall
be ineligible to receive a pension after having made contributions
shall be entitled to a refund of his individual account balance; such
refund is payable immediately upon the discontinuance of his employment
with the Township or within a reasonable time (not more than 45 days
after discontinuance). If such discontinuance is due to death, then
such refund shall be paid to his designated beneficiary or, in the
absence thereof, to his estate. If the retired member is receiving
a benefit, then the refund payable to the beneficiary is equal to
the individual account balance at the date of retirement, less any
payments made to the member.
3. Deposits. Contributions by members (if any) shall be remitted to
the trustee not less than monthly.
4. State aid. Payments made by the State Treasurer from the moneys received
from taxes paid upon premiums by foreign casualty insurance companies
for purposes of pension retirement for members shall be used as follows:
A. To reduce the unfunded liability or after such liability has been
fully funded.
B. To apply against the annual obligation of the Township for future
service costs or to the extent that the payment may be in excess of
such obligation.
C. To reduce member contributions pursuant to Subsection
1 hereof.
5. Township contributions. Subject to the provisions and limitations
set forth in other sections of this plan, the Township shall contribute
the amounts certified to be necessary by the fund's actuary to provide
the benefits provided by this plan.
6. Other contributions. The fund shall be authorized to receive, by
gift, grant, devise or bequest, any money or property, real, personal
or mixed, in trust for the benefit of the fund. The trustee of the
fund shall be subject to such directions, not inconsistent with this
plan, as the donors of such funds and property may prescribe.
[Ord. 632, 7/28/2005, Art. IV]
1. Normal retirement. A member may retire on or at any time after his
normal retirement date. Any member so retiring shall be entitled to
receive a monthly pension commencing as of the first day of the month
coincident with or next following his date of actual retirement and
ending with the payment made as of the first day of the month in which
his death occurs. The monthly pension to which such retired member
shall be entitled under this plan shall be equal to 2.5% of such member's
average compensation for each year of service, measured in years and
completed months.
2. Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any member on postponed retirement shall continue to make the contributions required pursuant to §
1-603, Subsection
1, hereof.
3. Disability retirement. A member who has suffered a total disability after completing five years of credited service shall be eligible to receive a benefit computed in accordance with Subsection
1, with payments commencing at the onset of the member's total disability and continuing thereafter during the remainder of such period of total disability. This benefit is reduced, however, by any payment that the member is entitled to receive under any workers' compensation law or any other program of disability benefits financed in whole or in part by the Township, exclusive of benefits payable under social security. The Board, or its designee, reserves the right to require disabled members to present evidence of total disability and of the continuance of such condition from time to time and further reserves the right to require disabled members to submit to medical examinations by one or more licensed medical practitioners selected by the Board, or its designee, as a precondition to the continued payment of benefits.
4. Cost-of-living increase. Beginning January 1, 2000, the plan shall
provide for a cost-of-living increase for the nonbargaining employees
who begin receiving retirement benefits after the above date. Beginning
January 1, 2004, the plan shall provide for a cost-of-living increase
for the Local 1598 employees and the Warminster Township Employees
Organization employees who begin receiving retirement benefits after
January 1, 2004. Such cost-of-living increases shall not exceed the
percentage increase as determined by the Department of Labor in the
All Urban Consumers Price Index for the Philadelphia metropolitan
region from the year in which the member last worked; provided, further,
that in no such case shall the total pension benefits exceed 75% of
the salary for computing retirement benefits; and provided further
that the total cost-of-living increase shall not exceed 30%. No cost-of-living
increase shall be granted which would impair the actuarial soundness
of the plan. All adjustments shall be made in January and calculated
on the twelve-month percentage change in the consumer price index
as of the previous October.
5. Early retirement. A member of the Warminster Township Employees Organization
(WETO) and nonbargaining employees may retire on or at any time after
their early retirement date. The member's monthly benefit at his early
retirement date, payable on his normal retirement date, shall be equal
to 2.5% of such member's average compensation for each year of service,
measured in years and completed months. In the event that the benefit
payments commence prior to the normal retirement date, the monthly
benefit will be reduced by 1/180 for each month of the first 60 months
by which the benefit commencement date precedes the normal retirement
date and by 1/360 for each month of the next 60 months by which the
benefit commencement date precedes the normal retirement date.
[Added by Ord. 648, 1/11/2007, § 2]
[Ord. 632, 7/28/2005, Art. V]
1. If a member is eligible to elect a normal retirement, early retirement,
or a vested benefit and dies before electing said benefit, it will
be presumed that he elected the benefit the day before he died.
2. A member who meets the qualifications for normal retirement, early
retirement, or a vested benefit may file an application for said benefit,
providing that the application becomes effective only upon his death.
In the event no application is filed, it will be presumed the member
had elected to retire on a 50% joint and survivor actuarial equivalent
basis.
3. Death benefit if no surviving spouse. If a member dies and is not
survived by a spouse, his designated beneficiary shall be entitled
to a refund of his accumulated member's contributions, with credited
interest. If no beneficiary survives, then the refund is payable to
the member's estate.
[Ord. 632, 7/28/2005, Art. VI]
1. If a member leaves the employ of the Township or ceases to be a member, whether by reason of his transfer, resignation or discharge or by reason of retirement other than after becoming eligible for benefits pursuant to §§
1-604 and
1-605 of this plan, he shall be entitled to a refund of all contributions made by him and then on deposit in the fund, plus interest thereon, computed at the rate described in §
1-603, Subsection
1. However, the member may elect to leave his contributions, plus interest, in the fund so as to receive a vested pension benefit to start at his normal retirement date. The vesting percentage is determined from the schedule below:
|
Years of Vesting Service
|
Percentage
|
---|
|
0 to 4
|
0%
|
|
5 or more
|
100%
|
2. The amount of the vested pension benefit shall be computed in accordance with §
1-604, Subsection
1, as of the date of termination, multiplied by the vesting percentage.
[Ord. 632, 7/28/2005, Art. VII]
1. Refund of member contributions becoming distributable pursuant to §
1-606, Subsection
1, shall be paid in the form of a lump-sum distribution.
2. Options on normal, early, disability retirement, or vesting.
A. At the
time a member elects to receive a retirement benefit allowance, the
benefit is 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, or prior to retirement, to receive
a lump-sum payment or the following actuarial equivalent value in
a lesser allowance:
(1) Single
life annuity. This optional form provides a monthly annuity for the
lifetime of the member. There are no death benefits provided.
(2) Life
annuity with certain period. This optional form provides a monthly
annuity for the lifetime of the member. If his death occurs before
the end of a specified certain period of five or 10 years, the balance
of the annuity payments for the certain period will be paid to his
beneficiary. The certain period must be named by the member before
his retirement date and cannot be changed after such date. The member
may change his beneficiary at any time.
(3) Survivorship
life annuity. This optional form provides a monthly annuity for the
lifetime of the member. Upon his death, a percentage of 50% or 100%
of such annuity will continue for the lifetime of his contingent annuitant.
The survivorship percentage and contingent annuitant must be named
by the member before his retirement date and cannot be changed after
such date. If the contingent annuitant dies before the member's retirement
date, this optional form is cancelled.
B. Should a member who has elected a single life annuity die before
receiving, in annuity payments, the full amount of the total accumulated
member's contribution deductions standing to his credit in the member
account on the effective date of retirement, the balance shall be
paid to the designated beneficiary.
[Ord. 632, 7/28/2005, Art. VIII]
1. It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§
1-604,
1-605,
1-606 and
1-607, in accordance with the instructions received from the Board; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
2. The Township may employ an actuary, investment advisors, counsel,
or other professional consultants from time to time in connection
with the operation of the fund or of this plan. Such persons or entities
shall be compensated by the Township at such rates as may be agreed
upon by the Board. Such compensation may be paid from the fund.
3. The trustee shall make an annual determination of the fair market
value of the fund as of the anniversary date and as of such additional
dates as the Board may direct. The fair market value of the fund shall
be reported to the actuary, who shall calculate the amount to be contributed
to the fund by the Township with respect to each plan year in accordance
with the assumptions most recently adopted by the Board for the purpose
of such computations; provided, however, that the liability of the
Township to make such contributions is subject to all of the conditions
and limitations set forth elsewhere in this plan.
[Ord. 632, 7/28/2005, Art. IX]
1. The plan shall be administered by the Board. The Board shall make
and adopt rules and regulations for the efficient administration of
the plan.
2. The Board shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provisions of the plan and shall provide all such data, records and documents to the trustee, the actuary and any other professional whose services are employed pursuant to §
1-608, Subsection
2, of this plan.
3. The Board shall construe the plan, shall determine any questions
of fact arising under the plan and shall make all decisions required
of it under the plan or the trust agreement and its construction thereof,
and decisions and actions taken thereon in good faith shall be final
and conclusive. It may correct any defect or supply any omission or
reconcile any inconsistency in such manner and to such extent as it
shall deem expedient to carry the plan into effect, and it shall be
the sole judge of such expediency. The Board shall act uniformly with
respect to matters coming before it concerning employees in similar
circumstances.
4. The Board shall serve without bond, except as may be otherwise required
by law, and without compensation for its services as such.
5. The members of the Board, and each of them, shall be free of all
liability for any act or omission, except by willful misconduct or
gross negligence, and each of them shall be fully indemnified by the
Township against all judgements not involving findings of their respective
personal or collective willful misconduct or gross negligence and
against all costs, including counsel fees, incurred in defense of
actions brought against them.
6. The Board shall make available to members, retired members and terminated
members, and to their beneficiaries, for examination during business
hours, such records as pertain to the person examining.
7. To enable the Board to perform its functions, the Township shall
supply full and timely information to it on all matters relating to
the pay of all members, their retirement, death, termination of employment
and such other pertinent facts as the Board may require, and the Board
shall advise the trustee of such of the foregoing facts as may be
pertinent to the trustee's administration of the trust and shall give
proper instructions to the trustee for the carrying out of the purposes
of this plan.
8. The Board shall enact such rules and regulations for the conduct
of its business and for the administration of the plan as it may consider
desirable, provided the same shall not be in conflict with any of
the provisions of the plan. All actions of the Board shall be taken
at meetings at which at least three members shall be present, or by
written resolution concurred in by not less three of its members.
Written minutes shall be kept of the meetings and actions of the Board.
9. The Secretary, acting on behalf of the Board, shall have the power
to execute all documents necessary to carry out the actions of the
Board, and any person, partnership, corporation or government agency
shall accept such documents over such signature or signatures as if
executed by the Board.
[Ord. 632, 7/28/2005, Art. X]
1. It is the expectation of the Township that it will continue this
pension plan indefinitely and will from time to time contribute to
the fund such amounts as may be needed to provide the benefits set
forth in the plan, but continuance of the plan is not assumed as an
obligation of the Township, and the right is reserved by the Township
at any time to reduce, suspend or discontinue its contributions hereunder.
2. The Township assumes no obligation or responsibility with respect
to the operation of the plan and does not guarantee the payment of
the benefits therein provided for members of the plan. The Township
shall have no liability with respect to the administration of the
fund held by the trustee, and payments made under the provisions of
any ordinance establishing, amending, or maintaining the plan shall
not be a charge on any other fund in the treasury of the Township
or under its control, save the Nonuniformed Employees Pension Fund
herein provided for.
3. Nothing contained in the plan shall be held or construed as a contract
or guarantee of employment nor to create any liability upon the Township
to retain any person in its service. The Township reserves the full
right to discontinue the service of any person without any liability,
except for salary or wages that may be due and unpaid, whenever, in
its judgement, its best interests so require, and such discontinuance
shall be without regard to this plan.
[Ord. 632, 7/28/2005, Art. XI]
1. The Township may amend, curtail or terminate this plan at any time;
provided, however, that no amendment affecting the trustee shall be
made without its consent (other than an amendment having the effect
of terminating of the plan), nor shall any amendment be made which
will in any manner divert any part of the fund to any purpose other
than the exclusive benefit of members or their beneficiaries (except,
upon termination, such diversion may be made after all of the fixed
and contingent liabilities to members and their beneficiaries have
been met), nor shall any amendment be made at any time which will
in any manner divest any benefit then vested in a member.
2. In the event of termination of this plan, the trustee, upon written
instructions from the Board, shall allocate the assets then remaining
in the fund, to the extent that such assets are sufficient, to members
and retired members in the following order of precedence:
A. To members and retired members in an amount equal to their respective
contributions, with interest, reduced in the cases of retired members
by any prior distributions made to them.
B. To provide benefits due retired members in the proportion that the
pension earned by each such member bears to the total pensions earned
for all such members.
C. The remaining assets, if any, to each of the remaining members in
the proportion that his pension credits earned to the date of termination
bears to the total pension credits so earned for all such remaining
members.
3. After allocation of the funds, the Board shall determine whether
to operate the fund as the source of whatever payments the money so
allocated will provide.
[Ord. 632, 7/28/2005, Art. XII]
1. No benefit under this plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge or encumbrance, nor
to seizure, attachment or other legal process, for the debts of any
member or member's beneficiary. This provision shall not apply to
a qualified domestic relations order, defined in Section 414(p) of
the Internal Revenue Code, and those other domestic relations orders
permitted to be so treated by the Board under the provisions of the
Retirement Equity Act of 1984. Further, to the extent provided under
a qualified domestic relations order, a former spouse of a member
shall be treated as the spouse or surviving spouse for all purposes
under this plan.
[Amended by Ord. 737, 1/19/2017]
2. Any person dealing with the trustee may rely upon a copy of this
plan and any amendments thereto certified to be a true and correct
copy by the trustee.
3. Anything heretofore contained in this plan to the contrary notwithstanding,
it is the intention of the Township that any action herein provided
to be taken by the trustee shall be taken only in accordance with
written instructions of the Board, given in such detail as to preclude
the exercise by the trustee of discretion in the performance thereof.
4. Under no circumstances, whether upon amendment or termination of
this plan or otherwise, shall any part of the fund be used for or
diverted to any purpose other than the exclusive benefit of members
or their beneficiaries until all of the actuarial obligations to such
member or member's beneficiaries have been met.
5. If the Board deems any person incapable of receiving benefits to
which he is entitled by reason of minority, illness, infirmity, or
other incapacity, it may direct the trustee to make payment directly,
for the benefit of such person, to any person selected by the Board
to disburse it, whose receipt shall be a complete acquittance therefor.
Such payment shall, to the extent therefor, discharge all liability
of the Township, the trustee and the fund.
6. Should any provision of this plan be determined to be void by any
court, the plan will continue to operate and, to the extent necessary,
will be deemed not to include the provision determined to be void.
7. Headings and captions provided herein are for convenience only and
shall not be deemed part of the plan.
8. This plan shall be construed and applied under the laws of the Commonwealth
of Pennsylvania where not in conflict with federal laws which shall
prevail.
9. All ordinances or resolutions or portions thereof inconsistent herewith
are hereby repealed.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
As used in this article, the following terms shall have the
meanings indicated:
AFSCME EMPLOYEE
Any nonuniform AFSCME 1598 employee hired on or after January
1, 2013, in full-time employment whose customary employment by the
Township is not less than 35 hours per week.
AFSCME/WTEO EMPLOYEE
Any nonuniform AFSCME 2289 employee hired on or after January
1, 2013, whose customary employment by the Township is not less than
35 hours per week.
AGE
The age attained by the employee at his or her last birthday.
AT-WILL EMPLOYEE
Any nonuniform, nonbargaining personnel hired on or after
January 1, 2012, whose customary employment by the Township is not
less than 35 hours per week.
BOARD
The Board of Supervisors of Warminster Township, Bucks County,
Pennsylvania.
COMPENSATION
All W-2 wages paid by the Township to the member during a
plan year.
CUSTODIAL AGREEMENT
The contract between the Township and the custodian establishing
the terms by which and under which the fund is held in-custody for
the exclusive benefit of the plan participants and their beneficiaries,
as the same now exists and as it may be amended.
FORFEITURE
The nonvested portion of a member's account.
FUND
All assets held by the trustee under the trust agreement
and related insurance and investment contracts relating to this plan.
INVESTMENTS
The list of investment menu options provided by the trustee
to the members.
MEMBER
Any employee who has satisfied the eligibility requirements established in §
1-622 hereof.
MEMBER ACCOUNT
Each member's individual account maintained within the fund
to custody the member's account balance.
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following
the date on which the member completes five years of service or on
the date which the member attains the age of 62.
PAY PERIOD
The period of time at which an employee is compensated for
his/her services to the Township.
PLAN
The defined contribution plan for the nonuniform employees
of Warminster Township, as herein set forth and as the same may hereafter
be amended.
PLAN YEAR
A period of 12 consecutive months commencing on January 1
and ending on the following December 31.
RECORDKEEPER
The firm that keeps participant level records of the participant's
account balance, processes any change requests, and communicates to
the participant information on their account.
RECORDKEEPING AGREEMENT
The contract between the Township and the recordkeeper establishing
the terms by which and under which the fund is invested, distributed,
accounted for and communicated to plan participants.
SERVICE
The aggregate of a member's total periods of employment as
a full-time employee of the Township. If a member enters military
service, either voluntarily or by conscription, after he/she has been
employed for at least six months, such time spent in the Armed Forces
of the United States during a period of national emergency shall be
counted as service for purposes of this plan, provided such member
returns to service with the Township within six months after his/her
discharge or release from such active duty in the Armed Forces of
the United States. The time spent in military service due to voluntary
extension of such military service during the period of peacetime
shall not be included as service for the purpose of this plan.
TOWNSHIP
Warminster Township, Bucks County, Pennsylvania.
TRUSTEE
The Board of Supervisors of Warminster Township or any other
agency or person appointed to the Board to serve in that capacity
as set forth in the custodian agreement.
VESTED INTEREST
The nonforfeitable right to any immediate or deferred benefit
in the amount which is equal to the sum of Subsections 1 and 2 below:
1.
The value on that date of that portion of the participant's
account that is attributable to and derived from a participant's own
contributions, if any.
2.
The value on that date of that portion of the participant's
account that is attributable to and derived from employer contributions
multiplied by his vesting percentage determined on the date applicable.
VESTING PERCENTAGE
The member's nonforfeitable interest to his account plus
earnings thereon computed in accordance with the following schedule:
[Amended by Ord. No. 759, 11/21/2019]
AFSCME EMPLOYEE
|
---|
Years of Service
|
Percent Vested
|
---|
Less than 5 years
|
0%
|
5 or more years
|
100%
|
AFSCME/WTEO EMPLOYEE
|
---|
Years of Service
|
Percent Vested
|
---|
1 year
|
20%
|
2 years
|
40%
|
3 years
|
60%
|
4 years
|
80%
|
5 years
|
100%
|
AT-WILL EMPLOYEE
|
---|
Years of Service
|
Percent Vested
|
---|
1 year
|
20%
|
2 years
|
40%
|
3 years
|
60%
|
4 years
|
80%
|
5 years
|
100%
|
The Township Manager shall be 100% vested upon date of hire
unless other otherwise stated in the employment agreement with the
Township.
|
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. All persons who are at-will employees, AFSCME employees, AFSCME/WTEO
employees, and the Township Manager (as defined above by this plan)
are eligible to participate in the plan.
2. Any person who becomes an employee after the effective date January
1, 2018, hereof shall become a member at the date of their full-time
hire and shall vest according to the appropriate vesting percentage.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. Township contributions:
A. The Township shall contribute, on behalf of each member, an amount
equal to the fixed percentage of his/her compensation for that month's
pay, as has been established by the Board and which may, from time
to time, be changed by the Board. The current level, as of the effective
date of this Part 6B is reflected in the schedule below.
AFSCME employee
|
5%
|
At-will employee
|
5%
|
AFSMCE/WTEO employee
|
5%
|
B. The Township Manager contribution shall be set forth in an approved
employment agreement.
C. Should the Township, for any reason, fail to make a contribution
as provided herein, then such deficiency shall be made up in subsequent
years. The Township, at its own discretion, may contribute more than
the fixed percentage. However, any additional contributions would
be distributed on an equal basis.
2. Member contributions: Members shall not be required to contribute
into this plan.
3. Rollovers and transfers: The trustee may receive on behalf of a member
all or part of the entire amount of any distribution from a terminated
pension or profit sharing plan or any lump sum distribution therefor
received by such member from a pension or profit sharing plan meeting
the requirements of Internal Revenue Code Section 401(a).
4. State aid: The portion of the payments made by the State Treasurer to the Township and designated by the Board to be allocated to the nonuniformed employee's pension fund from money received from taxes paid upon premiums by foreign causality insurance companies shall be used to reduce or eliminate the Township's contribution pursuant to Subsection
1 hereof and offset the payment of any administrative expenses.
5. Other contributions: The fund shall be authorized to receive by gift,
grant, devise, or bequest, any money or property, real, personal,
or mixed, in trust for the benefit of the fund. The trustee shall
be subject to such directions not inconsistent with this plan as the
donors of such funds and property may prescribe.
6. Forfeiture: Forfeiture will remain assets of the Trust and at the Township's discretion, be used to reduce or eliminate future Township contributions pursuant to Subsection
1 and/or to be reallocated to the member's account in the proportion that an individual member's account balance (excluding rollover account balances) bears to the total of all member's accounts.
7. Accounting and allocations:
A. The recordkeeper shall establish and maintain an account in the name
of each member.
B. The Township shall provide the recordkeeper with all information
required by the recordkeeper to make proper allocation of the Township's
contribution. The recordkeeper shall allocate the contribution to
each member's account daily based upon the direction of the member.
C. The recordkeeper shall calculate the value of the member's account
daily and give access to the member to self-direct the assets of the
member's account.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. Normal retirement: A member who attains their normal retirement date
shall be considered fully vested. If a member retires on his/her normal
retirement date he/she shall receive a distribution of the vested
value of his/her member account.
2. Late retirement: A member may continue in the service of the Township after his/her normal retirement date, and in such event, shall retire on their late retirement date. Such member shall continue as a member under this plan until such late retirement date. The member shall have a vesting percentage as determined by §
1-621 hereof and shall receive a distribution of the vested value of his/her member account.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. Death prior to retirement: If a member dies prior to the commencement of pension benefits, his/her designated beneficiary shall be entitled to the vested interest of the member's account determined pursuant to §
1-621 hereof and valued as of the prior anniversary date. If no such beneficiary survives, the account will be paid to the member's estate.
2. Death after retirement: If a member dies after distribution has commenced, the remaining portion of such interest will continue to be distributed in accordance with the method of distribution elected pursuant to §
1-626 hereof.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. Settlement options:
A. After a member terminates employment with the Township, they may
select from the following settlement options:
(1)
Paid to the member as a lump sum benefit.
(2)
Rollover into an IRS qualified account.
(3)
Remain in the fund until a distribution method is selected.
B. Distribution selection shall be made in writing. In the event that
the member is deceased, the designated beneficiary shall elect a settlement
option as listed above.
2. Joint and survivor annuity: Unless an optional form of benefit is
selected by a member and agreed to by the member's spouse, the member's
vested member account balance will be paid in the form of a 50% joint
and survivor annuity.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. Distribution: As of a member's termination of employment, he/she
shall receive a distribution of his/her entire vested interest.
2. Reemployment rights: If the terminated member is rehired by the Township
and re-enrolls in the plan within 12 consecutive months of termination,
he/she shall continue to participate in the plan as if such termination
had not occurred.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§
1-624,
1-625,
1-626 and
1-627, in accordance with the instructions received from the Board; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
2. The Township may employ an actuary, investment advisors, counsel,
or other professional consultants from time to time in connection
with the operation of the fund or of this plan. Such persons or entities
shall be compensated by the Township at such rates as may be agreed
upon by the Board. Only investment advisory, custodial, and investment
fund company fees will be paid by the member's individual accounts.
3. The trustee will provide investment options to the members. The member
shall have the ability to self-direct their individual account investments
from a list of predetermined investment options provided by the trustee.
The trustee is not responsible for any investment earnings or losses.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 737, 1/19/2017; and by Ord. No. 746, 6/21/2018]
1. The plan shall be administered by the Board. The Board shall make
and adopt rules and regulations for the efficient administration of
the plan.
2. The Board shall keep all data, records, and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provisions of the plan, and shall provide all such data, records and documents to the trustees, and any other professional whose services are employed pursuant to §
1-628, Subsection
2, of this plan.
3. The Board shall construe the plan, shall determine any questions
of fact arising under the plan and shall make all decisions required
of it under the plan and its construction thereof, and decisions and
actions taken thereon in good faith shall be final and conclusive.
It may correct any defect or supply any omission or reconcile any
inconsistency in such manner to such extent as it shall deem expedient
to carry the plan into effect, and it shall be the sole judge of such
expediency. The Board shall act uniformly with respect to matters
coming before it concerning employees in similar circumstances.
4. The Board shall serve without bond except as may be otherwise required
by law and without compensation for its services as such.
5. The members of the Board and each of them shall be free of all liability
for any act or omission except by willful misconduct or gross negligence,
and each of them shall be fully indemnified by the Township against
all judgments not involving findings of their respective personal
or collective willful misconduct or gross negligence and against all
costs, including counsel fees, incurred in defense of actions brought
against them.
6. The Board shall make available to members, retired members and terminated
members and to their beneficiaries, for examination during business
hours, such records as pertain to the person examining.
7. To enable the Board to perform its functions, the Township shall
supply full and timely information to it on all matters relating to
the pay of all members, their retirement, death, termination of employment
and such other pertinent facts as the Board may require.
8. The Board shall enact such rules and regulations for the conduct
of its business and for the administration of the plan as it may consider
desirable, provided the same shall not be in conflict with any of
the provisions of the plan. All actions of the Board shall be taken
at meetings at which at least four members shall be present, or by
written resolution and any resolutions concurred in by not less than
four of its members shall be the action of the entire Board. Written
minutes shall be kept of the meetings and actions of the Board.
9. The Chief Administrative Officer and approved authorized signer(s),
acting on behalf of the Board, shall have the power to execute all
documents necessary to carry out the actions of the Board, and any
person, partnership, corporation or government agency shall accept
such documents over such signature or signatures as if executed by
the Board.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. It is the expectation of the Township that it will continue this
pension plan indefinitely and will from time to time contribute to
the fund such amounts as may be needed to provide the benefits set
forth in the plan; but continuance of the plan is not assumed as an
obligation of the Township and the right is reserved by the Township
at any time to reduce, suspend or discontinue its contributions hereunder.
2. The Township assumes no obligation or responsibility with respect
to the operation of the plan and does not guarantee the payment of
the benefits provided for members of the plan. The Township shall
have no liability with respect to the administration of the fund and
payments made under the provisions of any ordinance establishing,
amending or maintaining the plan shall be a charge on any other fund
in the treasury of the Township or under its control, save the nonuniformed
employees' pension fund herein provided for. In addition, the Township
shall not have or assume any liability for investment or other loss
and/or tax consequences associated with the decision of members to
utilize self-directed options and/or the selection of particular investment
vehicles. Members will be advised to seek their own investment and/or
tax advice from professionals regarding participation in the self-directed
options available under the plan.
3. Nothing contained in the plan shall be held or construed as a contract
or guarantee of employment nor to create any liability upon the Township
to retain any person in its service. The Township reserves the full
right to discontinue the service of any person without any liability
except for salary or wages that may be due and unpaid, whenever in
its judgment its best interests so require, and such discontinuance
shall be without regard to this plan.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]
1. The Township may amend, curtail or terminate this plan at any time,
provided, however, that no amendment affecting the trustee shall be
made without its consent (other than an amendment having the effect
of termination of the plan); nor shall any amendment be made which
will in any manner divert any part of the fund to any purpose other
than the exclusive benefit of members or their beneficiaries (except
upon termination such diversion may be made after all of the fixed
and contingent liabilities to members and their beneficiaries have
been met); nor shall any amendment be made at any time which will
in any manner divest any benefit then vested in a member.
2. In the event of termination of this plan, the Board shall allocate
the assets then remaining in the fund, to the extent that such assets
are sufficient, to members and retired members in an amount equal
to their respective member account balance reduced in the cases of
retired members by any prior distributions made to them.
3. After allocation of the funds, the Board shall determine whether
to operate the fund as the source of whatever payments the money so
allocated will provide.
[Ord. No. 709, 7/19/2012; as amended by Ord. No. 737, 1/19/2017; and by Ord. No. 746, 6/21/2018]
1. No benefit under this plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge or encumbrance, nor
to seizure attachment or other legal process for the debts of any
members or member's beneficiary.
A. This provision shall not apply to a "qualified domestic relations
order" defined in Code Section 414(p), and those other domestic relations
orders permitted to be so treated by the Board under the provisions
of the Retirement Equity Act of 1984.
2. Any person dealing with the trustee may rely upon a copy of this
plan and any amendments thereto certified to be a true and correct
copy by the trustee.
3. Anything heretofore contained in this plan to the contrary notwithstanding,
it is the intention of the Township that any action herein provided
to be taken by the trustee shall be taken only in accordance with
written instructions of the Board given in such detail as to preclude
the exercise by the trustee of discretion in the performance thereof.
4. Under no circumstances, whether upon amendment or termination of
this plan or otherwise, shall any part of the fund be used for or
diverted to any purpose other than the exclusive benefit of members
or their beneficiaries until all of the obligations to such member
or member's beneficiaries have been met.
5. If the Board deems any person incapable of receiving benefits to
which he is entitled by reason of minority, illness, infirmity, or
other incapacity, it may direct the trustee to make payment directly
for the benefit of such person, to the guardian or trustee of such
person whose receipt shall be a complete acquittance therefor. Such
payment shall, to the extent therefor, discharge all liability of
the Township, the trustee and the fund.
6. Should any provision of this plan be determined to be void by any
court, the plan will continue to operate and, to the extent necessary,
will be deemed not to include the provision determined to be void.
7. Headings and captions provided herein are for convenience only and
shall not be deemed part of the plan.
8. This plan shall be construed and applied under the laws of the Commonwealth
of Pennsylvania where not in conflict with federal laws which shall
prevail.
9. All ordinances or resolutions or portions thereof inconsistent herewith
are hereby repealed.