[HISTORY: Adopted by the Board of Supervisors
of Falls Township as indicated in article histories. Amendments noted
where applicable.]
[1]
Editor's Note: The title of this article was amended 5-13-1998
by Ord. No. 98-4.
[Amended 5-13-1998 by Ord. No. 98-4]
A.Â
The purpose of this article is to create a deferred
compensation plan in accordance with Section 457 of the Internal Revenue
Service Code to provide benefits for all full-time employees of Falls
Township. This deferred compensation plan is available to the full-time
police officers of the Township as well.
B.Â
Pursuant to the requirements of the Internal Revenue
Code the deferred compensation plan is to be identified as the ICMA
Retirement Corporation Deferred Compensation Plan and Trust. The plan
shall be held in trust, with the employer serving as trustee, for
the exclusive benefit of the plan participants and their beneficiaries,
and the assets shall not be diverted to any other purpose. The trustee's
beneficial ownership of plan assets held in the ICMA Retirement Trust
shall be held for the further exclusive benefit of the plan participants
and their beneficiaries.
[Amended 5-13-1998 by Ord. No. 98-4]
Any person employed in a permanent full-time
capacity by the Township of Falls may elect to participate in the
deferred compensation plan and trust.
[Amended 5-13-1998 by Ord. No. 98-4]
A.Â
Member contributions. Each member shall defer to the
plan any whole percent of his compensation from 2% to 25% to the maximum
dollar limit established by the Internal Revenue Service for the tax
year in which the deferral occurred ($8,000 for 1998). A member may
elect to increase his deferral percent once every three months by
filing a written joinder agreement with the Township. A member may
elect to decrease his deferral percent at any time by filing a written
joinder agreement with the Township. Member deferrals shall be collected
by the Township through payroll deductions and paid into the plan
at such times as the Township shall determine, but in no case shall
the transfer be more than 30 days after the end of the month during
which the deferral took place.
B.Â
Township contribution. Contributions by the Township
shall be to nonuniformed employees only. The Township will contribute
the equivalent of 5% of the employee's monthly compensation to the
Township's 401(a) Money Purchase Pension Plan for nonuniformed employees.
Township contributions shall be paid into the Money Purchase Pension
Plan not less frequently than quarterly. No Township contribution
will be made on behalf of any member to the Deferred Compensation
Plan and Trust.
The defined benefit pension plan is terminated
effective April 1, 1984 and the proceeds earned by current participants
will be guaranteed to them and paid to them according to the actuarial
calculations that are now in process.
The Township of Falls hereby establishes a retirement
benefit as provided in Falls Township Deferred Compensation Program,
adopted by Resolution 82-28 as subsequently amended, and by the provisions
of this article.
[Adopted 8-17-2010 by Ord. No. 10-05]
Falls Township (the "Township") hereby elects to enroll its
municipal employees who are excluded from membership in the Township's
ICMA pension plan in the Pennsylvania Municipal Retirement System
(the "System"), established by the Pennsylvania Municipal Retirement
Law, Act 15 of 1974,[1] as amended, with the express purpose of having the System
administer the pension plan established for the municipal employees
of the Township. The Township does hereby agree to be bound by all
the requirements and provisions of said Law, and to assume all obligations,
financial and otherwise, placed upon member municipalities by said
law. All references hereafter shall be based on benefits negotiated
between the Pennsylvania Municipal Retirement Board (the "Board")
and the Township under the provisions of Article IV of the Pennsylvania
Municipal Retirement Law.[2]
Membership in the System shall be mandatory for all full-time
municipal employees of the Township who are excluded from membership
in the Township's ICMA pension plan. Membership for elected officials,
part time employees, and employees hired on a temporary or seasonal
basis is prohibited, as is membership for individuals paid only on
a fee basis.
Credit for service toward the annuity of each original member
shall begin to accrue upon the member's date of enrollment in the
System. However, for purposes of determining eligibility for early
retirement, credited service shall accrue from each original member's
date of hire or upon the expiration of the member's probationary period
if one so existed, whichever is more recent. Benefits provided to
members in the agreement dated September 1, 2010 (the "Agreement")
shall accrue based on all credited service granted and earned in accordance
with this section.
Payment for any obligation established by the adoption of this
article and the agreement between the Board and the Township shall
be made by the Township in accordance with the Pennsylvania Municipal
Retirement Law[1] and Act 205 of 1984, the Municipal Pension Plan Funding
Standard and Recovery Act.[2]
As part of this article, the Township agrees that the System
shall provide the benefits set forth in the agreement. The passage
and adoption of this article by the Township is in official acceptance
of said agreement and the financial obligations resulting from the
administration of said benefit package. The Township hereby assumes
all liability for any unfundedness created due to the acceptance of
the benefit structure outlined in the above-referenced agreement.
By adoption of this article the Township agrees to terminate, upon the effective date of membership in the System, any previously maintained municipal pension program applicable to those employees identified as members in § 74-7 of this article and to transfer all assets from any existing plan to offset the established liability and to transfer all liabilities relating to retirement allowances or pensions. Liabilities not so transferred, whether known or not known at the time of the Township's enrollment into the System, shall remain with the Township.
The Township also acknowledges that an affirmative vote representing
at least 75% of the plan members indicated the members were in agreement
with the establishment of the plan with the System.
The Township intends this article to be the complete authorization
of the Township's municipal pension plan and it shall become effective
and specifically repeal Ordinance Number 10-01 ab initio either immediately
or on September 1, 2010, which is the effective date of the agreement,
whichever is later.
A duly certified copy of this article and the referenced agreement
shall be filed with the System. Membership for the municipal employees
of the Township in the System shall be effective the first day of,
September, 2010.
