[HISTORY: Adopted by the Board of Supervisors of the Township of West Donegal as indicated in article histories. Amendments noted where applicable.]
Salaries and compensation — See Ch. 45.
[Adopted 9-7-1971 by Ord. No. 12-1971 (Ch. 1, Part 2A, of the 1984 Code of Ordinances)]
The Township of West Donegal shall become a participant in the social security program, and the benefits of social security shall be extended to its employees and officers.
The proper officers are authorized to execute and deliver to the state agency the plan and agreement required under the provisions of the Social Security Act, and said enabling Act to extend coverage to the employees and officers of this political subdivision.
The Treasurer of this political subdivision be authorized, and he is hereby authorized, to make all required payments into the contribution fund established by said enabling Act and to establish such system of payroll deductions from wages of employees and officers as may be necessary to their coverage under the social security program.
The governing body of this political subdivision shall hereby appropriate from the proper fund or funds of the political subdivision the amounts necessary to pay into the contribution fund as provided in the enabling Act and in accordance with the plan and agreement.
The proper officers of this political subdivision shall do all things necessary to the continued implementation of said social security program in accordance with the provisions contained in the plan and agreement and the said laws.
Participation in the social security program by this political subdivision shall commence as of the first day of January 1971.
[Adopted 11-6-1995 by Ord. No. 103-1995 (Ch. 1, Part 2C, of the 1984 Code of Ordinances)]
This article shall be known and may be cited as the "West Donegal Township Nonuniformed Employee Pension Plan Ordinance."
In the interpretation of this article, words in the singular shall include the plural, and words in the plural shall include the singular. The masculine gender shall include the feminine gender and the neuter gender. The following terms shall have the following meanings when used in this article:
- BOARD OF SUPERVISORS or BOARD
- The Board of Supervisors of the Township of West Donegal, Lancaster County, Pennsylvania.
- When the participant is unable, by reason of illness (physical or mental) or injury, to perform the majority of the duties which were his or her duties before the occurrence of such illness or injury as determined by the Board of Supervisors after consultation with a physician chosen by the Board. Notwithstanding such definition, a participant eligible for social security disability benefits shall automatically satisfy the requirements for determining disability.
- FULL-TIME NONUNIFORMED EMPLOYEE
- An employee of the Township who is not a police officer and who works not less than 35 hours per week with definite compensation, subject to reasonable vacation and sick leave.
- A nonuniformed employee of the Township who is eligible to participate in the Nonuniformed Employee Pension Plan.
- PENSION FUND or FUND
- The pension fund established to provide pension benefits for the nonuniformed employees of the Township.
- PENSION PLAN or PLAN
- The pension plan established by this article to provide pension benefits for the Township's full-time nonuniformed employees.
- The Township of West Donegal, Lancaster County, Pennsylvania.
There is hereby established in the Township for the benefit of full-time nonuniformed employees of the Township a pension plan and pension fund. The pension plan shall be known as the "West Donegal Township Nonuniformed Employee Pension Plan," and the pension fund shall be known as the "West Donegal Township Nonuniformed Employee Pension Fund." The plan shall be considered a defined contribution pension plan.
The Board is hereby authorized to enter into agreements with corporate fiduciaries, which agreements shall permit such fiduciaries 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. The Board of Supervisors shall determine the form, content and terms of such agreements.
The pension fund established under the provisions of this article shall be funded by:
The allocation by the Board of Supervisors of payments made by the Treasurer of the Commonwealth to the Township from funds received from taxes paid upon premiums by foreign casualty insurance companies and foreign fire insurance companies pursuant to the General Municipal Pension System State Aid program.
Gifts, grants, devises or bequests designated to or for the pension fund.
To the extent necessary, annual appropriations made by the Township.
All such payments received or made shall be deemed to be a part of the pension fund and shall not be applied to any other account or disbursed in any manner except as provided herein. Payments required under the pension plan shall be charged only against the pension fund and not against other monies or funds of the Township.
The pension fund shall be deposited with and managed and invested by the corporate fiduciary designated by the Board of Supervisors, which shall carry out its responsibilities in accordance with the terms of the agreement, and shall be further subject to such investment policy and guidance as the Board of Supervisors shall, from time to time, give to the corporate fiduciary for the investment of pension fund assets; provided, however, the Board of Supervisors shall also be permitted to purchase annuities without the intervention of a corporate fiduciary.
The plan shall be administered by the Board of Supervisors.
The Township Secretary shall keep minutes of the proceedings and all dates, records and documents pertaining to the administration of the plan. The Board of Supervisors may employ and suitably compensate such actuarial and consulting and advisory, clerical or other employees and attorneys as it may deem necessary for the performance of its duties. The expenses of the administration of the plan may be paid from the pension fund, at the discretion of the Board of Supervisors.
The action of the Board of Supervisors shall be determined by a vote of a majority of its members.
The Board of Supervisors shall make available to participants in the plan, for examination during business hours, such of its records as pertain only to the participant involved. The Board of Supervisors shall make its records available to the proper governmental officials during business hours and to members of the general public upon 24 hours' notice. Members of the general public are not permitted to examine the account balance of any participant except as otherwise permitted by law.
The Board of Supervisors on behalf of the participants shall enforce the plan in accordance with the terms of this article and shall have all the powers necessary to accomplish that purpose, including, but not limited to, the following:
To determine all questions relating to the eligibility of employees to become participants.
To compute and certify to the corporate fiduciary the amount and kind of benefits payable to each participant.
To select any insurance company and annuity contract which, in the opinion of the Board of Supervisors, will best carry out the purposes of the plan.
To make and publish such rules and regulations for the administration of the plan as are consistent with the terms of this article.
The Township Secretary shall supply full and timely information to the Board of Supervisors on all matters relating to the compensation of all participants in the plan, their retirement, death or other cause for termination of employment, and such other pertinent data as the Board of Supervisors may require. The Board of Supervisors shall advise the corporate fiduciary or the appropriate insurance company with reasonable dispatch of such of the foregoing facts as may be pertinent to the fiduciary's or the insurance company's administration of the pension fund or any annuities purchased from the pension fund, as the case may be.
The Board of Supervisors may appoint an advisory board. This advisory board, if appointed, shall consist of one member of the Board of Supervisors, a participant in the plan, and a resident of the Township. The advisory board, if appointed, shall meet as is deemed necessary but at least once annually. The advisory board shall keep written minutes of all of its meetings. All expenses incurred, including those of actuaries, consultants, attorneys, or other services provided by specialists, shall be approved by the Board of Supervisors and may be paid for from the plan.
Each full-time, nonuniformed employee of the Township shall become a participant in the plan on the first day of the month following 12 months of employment. All such employees who were employed by the Township for 12 months or longer as of January 1, 1995, shall participate in the plan on that date.
There shall be maintained a separate account covering each participant under the plan. Such account shall be increased by the participant's share of contributions, investment income and market value appreciation of the fund. It shall be decreased by the participant's share of market value depreciation of the fund.
A participant under this plan shall be entitled to an allocation of the contribution as of December 31, provided that he or she was employed during such calendar year as a full-time, eligible, nonuniformed employee. The contribution allocated to the account of such eligible participant shall be equal to 5% of the participant's gross compensation during the portion of the calendar year in which the employee was a participant in the plan. Investment income and market value appreciation or depreciation shall be allocated on each December 31 to the participants' accounts in proportion to the balances in their accounts at the beginning of that calendar year.
[Amended 5-21-2018 by Ord. No. 230-2018]
The normal retirement date for each participant shall be the day on which he or she attains 65 years of age. Upon reaching his or her normal retirement date, a participant shall be 100% vested in the amount of his or her account.
[Amended 2-11-2013 by Ord. No. 200-2013]
If a participant remains employed after his or her normal retirement date, payment of benefits shall not commence until he or she actually retires. Such participant shall continue to receive allocations to his or her account as he or she did before his or her normal retirement date. Upon actually retiring, the participant shall be 100% vested in the amount of his or her account at his or her date of late retirement.
A participant may retire before his or her normal retirement date if he or she becomes disabled. Upon such disability retirement, the participant shall be 100% vested in the amount in his or her account at his or her date of disability. In the administration of this section, all employees shall be treated in a uniform manner in similar circumstances.
Upon the death of an active participant, the beneficiary of such participant shall be entitled to receive 100% of the amount in such participant's account at the date of death. Each participant shall have the right to designate his or her beneficiaries, including a contingent death beneficiary, and shall have the right at any time to change such beneficiaries subject to applicable law. The foregoing designation shall be made, in writing, on a form signed by the participant and supplied by and filed with the Board of Supervisors. If no such designation is made, said amount shall be paid to the estate of the participant.
[Amended 2-11-2013 by Ord. No. 200-2013]
If a participant ceases participation in the plan except by retirement, disability or death, his or her benefits under the plan shall be limited to those provided under the vesting schedule set forth below. Upon such termination of participation, the participant shall have a vested interest equal to the amount in his or her account on the date of termination multiplied by the vesting percentage based upon his or her years of service to the date of termination and determined as follows:
One year of service shall be credited for each complete twelve-month period commencing with the participant’s date of hire and ending on the date of separation from service. For this purpose, participants in the plan shall be credited with service from their date of hire at the Township. The nonvested portion of the terminated participant’s account shall be forfeited and shall serve to reduce future required Township contributions to the plan.
A participant or beneficiary may only receive distribution of the account in the form of a lump-sum payment or such other form as may be available under any applicable annuity contract. The participant or beneficiary shall file a written request for benefits with the Board of Supervisors before commencement of payments, and distribution of benefits shall be subject to the Board of Supervisors' approval.
All payments under the plan shall be, to the fullest extent permitted by law, free and clear of any debts, contracts, engagements or anticipations of the recipient or any liability to levy, attachment, execution or sequestration against the recipient and shall not be subject to sale, assignment, transfer, claim, judgment or bankruptcy proceedings against the recipient of such payments, whether voluntary or involuntary.
The plan and fund established by this article may, by ordinance, be discontinued, modified, converted, terminated or repealed, according to law.
The plan shall be effective as of January 1, 1995.