[Adopted 8-3-1987 by Ord.
No. 14-87]
For the purposes of this chapter, the following definitions
shall apply:
ACCRUED BENEFIT
Eighty-two and one-half percent of 1% of the number of years
in Subsection A below, as computed to the nearest 1/12 of a year,
up to a maximum of 30 years.
[Amended 7-1-1996 by Ord.
No. 2-96]
A.
The number of years of service between the entry date and the
date of determination.
ACT 205
Act 205 of 1984, the Municipal Pension Plan Funding Standard
and Recovery Act.
COMPENSATION
Annual basic compensation with the employer as of January
1 in each year, excluding overtime payments, commissions, bonuses
and any other additional compensation.
EFFECTIVE DATE
The original effective date of the plan is January 1, 1971.
EMPLOYER
The Borough of Boyertown, Berks County, Commonwealth of Pennsylvania.
ENTRY DATE
The anniversary date of one year of service from the date
of employment.
FINAL AVERAGE COMPENSATION
The average compensation on the last five January 1s before
early retirement, termination of employment or retirement.
FUND
The Borough of Boyertown Retirement Income Plan Trust Fund.
PARTICIPANT
Any Borough employee who meets the requirements set forth in §
42-4 of this chapter.
PLAN
The Borough of Boyertown Retirement Income Plan.
SERVICE
Continuous employment with the employer. Absence from employment
on account of leave of absence authorized by the employer pursuant
to the employer's established leave policy will be counted as
continuous employment with the employer, provided that such leave
of absence is of not more than two years' duration and provided
further that the employee returns to active service with the employer
at the end of such leave of absence. The employer's leave policy
shall be applied in a uniform and nondiscriminatory manner to all
participants under similar circumstances. Absence from employment
on account of active duty with the Armed Forces of the United States
will be counted as continuous employment with the employer, provided
that the employee returns to active service with the employer within
90 days after he becomes eligible for release from such active duty.
This plan is to be funded and maintained by any of the following
methods or combinations of each:
A. State aid. Funds which are received from the Commonwealth of Pennsylvania
pursuant to Act 205 which are directed to this plan, as approved by
the Borough Council, may be used.
B. Borough contributions. Contributions from the Borough of Boyertown,
as necessary, with appropriate approval by the Borough Council, may
be used.
C. Gifts, grants, devises or bequests. The sums which may be received
by the Borough of Boyertown in the form of gifts, grants, devises
or bequests may, to the extent authorized by law, be contributed to
said fund with the approval of the Borough Council.
D. Any other sums received or contributed to the Borough, to the extent
authorized by law and with prior approval of the Borough Council,
may be used.
Each regular full-time employee of the Borough whose customary
employment is for more than 30 hours per week will be eligible to
participate on the day when he completes one year of service. No one
will be eligible for this plan if he is hired after his 60th birthday
or if he is a police officer, part-time employee, dispatcher, or member
of a bargaining unit.
The normal retirement date to receive benefits from the fund
shall be the first day of the month coinciding with or next following
the 65th birthday or the completion of 10 years of service, if later.
If a participant is continuing in the employ of the employer after
the normal retirement date, benefit payments will be postponed to
the first day of the month next following the actual date of retirement
and will be in an amount equal to the actuarial equivalent of the
normal retirement benefit.
The early retirement date is the first of the month coincident
with or next following a participant's retirement from the employ
of the employer which occurs within five years before the normal retirement
date. Such retirement is subject to the written consent of the Committee
and to the requirement that the participant have 10 years of service.
The early retirement benefit is the actuarial equivalent of
the accrued benefit earned to the early retirement date.
There are no death benefits under this plan except for any death
benefits that may be payable based upon the annuity option elected
for someone in benefit receipt status.
[Amended 7-1-1996 by Ord.
No. 2-96]
A. A participant's vesting percentage is 100% upon attainment of
normal retirement date or upon being disabled. Upon early retirement
or termination of employment, the vesting percentage is as follows:
|
Participant's Years of Service
|
Percentage
|
|
---|
|
Less than 3
|
0
|
|
|
3
|
20
|
|
|
4
|
40
|
|
|
5
|
60
|
|
|
6
|
80
|
|
|
7
|
100
|
|
[Adopted 3-4-2002 by Ord.
No. 1-02]
As used in this article, the following terms shall have the
meanings indicated:
CODE
The Internal Revenue Code, as amended periodically.
COMPENSATION
Plan member's wages, as defined in Code Section 3401(a),
for a plan year for which the municipality is required to provide
the plan member a written statement under Code Sections 6041(d), 6051(a)(3)
and 6052. Such 415 compensation shall include any elective deferrals
defined in Code Section 402(g)(3) and all amounts contributed or deferred
at the election of the plan members which are not includible in the
gross income of the plan member by reason of either Code Sections
125, 402(e)(3), 402(h)(1)(B), 403(b), 414(h)(2) or 457.
MUNICIPALITY
The political subdivision named at the top of this page.
PLAN
The pension plan specified at the top of this page.
REGULATION(S)
The income tax regulations, as amended periodically.
The limitations and other requirements outlined below are intended
to comply with Code Section 415 and the regulations thereunder, the
terms of which are specifically incorporated herein by reference.
The maximum compensation limit and benefits limitations under the
Code are as follows:
A. The compensation used in calculating a plan member's benefit
cannot exceed the limits of Code Section 401(a)(17), as adjusted for
cost-of-living increases, per Code Section 415(d).
B. General rule. In no event shall the annual retirement benefit payable
to a plan member under this plan, together with retirement benefits
provided under all qualified benefit plans maintained or previously
maintained by the municipality, for any limitation year, which shall
be the calendar year, exceed the maximum benefit permitted, as adjusted
annually per Code Section 415(d), under Code Section 415(b) (including
any applicable grandfathering rules). This plan section shall be applied
in accordance with Code Section 415 and the regulations thereunder.
C. Adjustments of limits.
(1) Where a retirement benefit commences before age 62, the Code Section
415(b)(1)(A) dollar limit shall be reduced in accordance with Code
Section 415(b)(2)(F). This reduction shall not result in a limit that
is less than $75,000 if the benefit begins at or after age 55, or
the actuarial equivalent of $75,000 at age 55 (determined in accordance
with Code Section 415) if the benefit begins before age 55.
(2) Where a retirement benefit commences after age 65, the Code Section
415(b)(1)(A) dollar limit shall be increased as described in Code
Section 415(b)(2)(F).
(3) The maximum benefit limit of Code Section 415(b)(1) shall be applied
to benefits in the form of a straight life annuity (with no ancillary
benefits) without regard to benefits attributed to plan member contributions
and rollover contributions. If the form payable to a plan member is
other than a single life annuity or a Code Section 417(b) qualified
joint and survivor annuity, the plan member's benefit shall not
exceed the actuarial equivalent of the Code Section 415(b)(1) maximum
payable in the form of a single life annuity unless no such adjustment
is required under Code Section 415 and related regulations.
(4) Notwithstanding the other rules of the plan and Code Section 415,
if the plan member has not participated in a defined contribution
plan of the municipality, the plan member's annual retirement
benefit shall not be deemed to exceed the maximum benefit limit if
it does not exceed the Code Section 415(b)(4) limit of $10,000, as
adjusted for plan participation or service of less than 10 years in
accordance with Code Section 415(b)(5).
D. Order of defined benefit plan reductions. If the plan member participates
or participated in any other defined benefit plan of the municipality,
and the plan member's aggregate annual retirement benefit under
this plan and such other plan exceeds the limits permitted under Code
Section 415, such plan member's benefit shall be first reduced
under this plan.
Notwithstanding §
42-16, the plan shall recognize any qualified domestic relations order (QDRO) set forth under Code Section 414(p). Any plan member's benefits, rights or elections shall be subject to any rights afforded to the alternate payee by a QDRO. Further, a distribution to an alternate payee is permitted if authorized by a QDRO, even if the plan member involved has not separated from service and has not reached the earliest retirement age under the plan.
No plan member or beneficiary shall have any benefit subject to any type of alienation, anticipation, assignment, charge, encumbrance, pledge, sale or transfer. Further, no benefits shall be subject to or liable for any debts, contracts, engagements, liabilities or torts. The only exceptions to this section are those in §
42-17, above and those referenced in Code Sections 401(a)(13)(C) and (D).
If any portion of a plan benefit is payable to a plan member
or beneficiary at the later of the plan member's 62nd birthday
or his normal retirement age and such benefit remains unpaid solely
by reason that the municipality, after sending a registered letter,
to the last known address, return receipt requested, and after diligent
effort fails to locate the plan member or beneficiary, the actuarial
value of the benefit shall be forfeited and applied towards reducing
plan costs. If, subsequent to the forfeiture, a plan member or beneficiary
is located, the actuarial value of the forfeiture at the time it was
forfeited (no adjustments for gains or losses) shall be restored.
Forfeitures must not be applied to increase the benefits any
municipal employee would otherwise receive under the plan.
In the case of any merger or consolidation with, or transfer
of plan assets or liabilities to any other plan, each plan member
would (if the plan then terminated) receive a benefit immediately
after the merger, consolidation, or transfer which is equal to or
greater than the benefit he would have been entitled to receive immediately
before the merger, consolidation, or transfer (if the plan had then
terminated).
As required by Code Section 401(a)(25), the actuarial assumptions
used to calculate plan benefits shall not be subject to the municipality's
discretion.