[HISTORY: Adopted by the Board of Supervisors of the Township
of West Donegal as indicated in article histories. Amendments noted
where applicable.]
GENERAL REFERENCES
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:
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.
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.
The pension fund established to provide pension benefits
for the nonuniformed employees of the Township.
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.
A.
The pension fund established under the provisions of this article
shall be funded by:
(1)
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.
(2)
Gifts, grants, devises or bequests designated to or for the pension
fund.
(3)
To the extent necessary, annual appropriations made by the Township.
B.
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.
A.
The plan shall be administered by the Board of Supervisors.
B.
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.
C.
The action of the Board of Supervisors shall be determined by a vote
of a majority of its members.
D.
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.
E.
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:
(1)
To determine all questions relating to the eligibility of employees
to become participants.
(2)
To compute and certify to the corporate fiduciary the amount and
kind of benefits payable to each participant.
(3)
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.
(4)
To make and publish such rules and regulations for the administration
of the plan as are consistent with the terms of this article.
F.
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.
G.
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.
A.
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.
B.
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.
C.
The Township shall contribute to the account of each full-time employee meeting the eligibility requirements of § 31-14A in an amount equal to 5% of the participant's gross compensation during the time period to which the contribution relates. The Board of Supervisors shall determine the frequency of contributions to the plan, which shall be not less than annually. Investment income and market value appreciation or depreciation shall be allocated to the participant's accounts in a proportion to the balances in their accounts in accordance with the schedule in the contract between the Township and the fiduciary retained in accordance with § 31-12.
[Amended 5-21-2018 by Ord. No. 230-2018; 4-12-2021 by Ord. No. 243-2021]
D.
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]
E.
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.
F.
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.
G.
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.
H.
Vested benefits.
[Amended 2-11-2013 by Ord. No. 200-2013]
(1)
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:
|
Vesting Schedule
| |
|---|---|
|
Years of Service
|
Vesting Percentage
|
|
Less than 1 year
|
0%
|
|
2
|
25%
|
|
3
|
50%
|
|
4
|
75%
|
|
5 or more years
|
100%
|
(2)
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.
I.
A participant or beneficiary may receive distribution of the account
in the form of a lump sum payment or in such other form as may be
available under the contract with the fiduciary. The participant or
beneficiary shall make a written request for a distribution in accordance
with the requirements of the contract with the fiduciary and applicable
law.
[Amended 4-12-2021 by Ord. No. 243-2021]
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.
