[HISTORY: Adopted by the Board of Supervisors of the Township
of East Hempfield as indicated in article histories. Amendments noted
where applicable.]
GENERAL REFERENCES
Pensions — See Ch. 37.
[Adopted 6-15-2011 by Ord. No. 2011-11]
For the purpose of this article, the following terms shall have
the respective meanings set forth below unless otherwise expressly
provided:
The investment recordkeeping account established to fund
the anticipated premiums for health insurance coverage for current
and retired police officers meeting the definition of "retiree" as
defined below.
The Township may contract for such administrative services
as are necessary to implement this article.
The bargaining agreement between the Association and the
Township, most recently approved on or about November 3, 2010, effective
January 1, 2011.
The collective bargaining unit comprising the police officers
of East Hempfield Township.
The Internal Revenue Code of 1986, as amended from time to
time.
Any separate investment option vehicle selected by the Township
in which all or a portion of the Trust assets may be invested as hereinafter
provided. The Trustee shall not be required to select any investment
fund.
A current or retired police officer who was hired before
January 1, 2011, and who thereafter retired or will retire after the
date of this article.
The trust established by this article.
The group of Trustees, appointed as hereinafter set forth,
acting collectively.
A.
The Trust is hereby established as of the date set forth above for
the exclusive purpose of providing a funding mechanism for anticipated
premiums for health insurance coverage for current and retired police
officers who were hired before January 1, 2011.
B.
On or about the date hereof, the Township will transfer to the Trust the assets listed on Schedule A,[1] which shall include all the assets heretofore set aside
for the purpose of paying premiums on medical and health insurance
policies for retired police officers.
[1]
Editor's Note: Schedule A is included at the end of this chapter.
C.
The Township is expected to continue to make additional contributions
based upon the Township's projections for future liability for
police health insurance coverage and subject to available funding.
A.
This article and its validity, construction and effect shall be governed
by the laws of the Commonwealth of Pennsylvania.
B.
Pronouns and other similar words used herein in the masculine gender
shall be read as the feminine gender, where appropriate, and the singular
form of words shall be read as the plural, where appropriate.
C.
If any provision of this article shall be held illegal or invalid
for any reason, such determination shall not affect the remaining
provisions, and such provisions shall be construed to effectuate the
purpose of this Trust.
A.
The Township shall appoint a Board of Trustees, from time to time,
as follows:
(1)
The Township shall appoint five Trustees, two of whom may be members
of the Board of Supervisors, two of whom may be staff employees of
the Township, and at least one of whom shall be a citizen of the Township
who is neither a member of the Board of Supervisors nor a staff employee
of the Township.
B.
Any decision to be made by the Board of Trustees or action taken
by the Board of Trustees may be made by a majority of the then-existing
Board of Trustees acting with or without a meeting.
C.
Except as described in this article, the Board of Trustees may adopt
its own rules, regulations and procedures for fulfilling the Board
of Trustee's duties.
D.
Upon the resignation, removal, death or incapacity of any Trustee,
the remaining members of the Board of Trustees may release the former
Trustee and such Trustee's estate. Any such release shall be
binding on all present and future parties in interest without the
necessity of a court accounting.
E.
If a vacancy in the Board of Trustees occurs which is not filled
within 30 days by the party or parties responsible, the existing Board
of Trustees may, by a majority vote, with or without a meeting, appoint
a successor to fill the vacancy, and if the existing members of the
Board of Trustees fail to name a successor to fill the vacancy within
30 days after the end of the thirty-day period described above, any
one or more of the Township, the Association or the existing Board
of Trustees may request the President Judge of the Court of Common
Pleas of Lancaster County to appoint a person to fill such vacancy.
A.
It shall be the duty of the Trustee to hold title to trust assets
in the Trustee's name, as directed by the Township or its designees
in writing. The Trustee shall not be under any duty to compute the
amount of contributions to be made by the Township or to take any
steps to collect such amounts as may be due to be held in Trust under
the terms of this article. The Trustee shall not be responsible for
the custody, investment, safekeeping or disposition of any assets
comprising the Trust, to the extent that such functions are performed
by the Township or the Administrator, or both.
B.
It shall be the duty of the Township to keep accurate books and records,
or cause its designee to keep accurate books and records, with respect
to the account.
A.
The Township may appoint one or more investment managers to manage
and control all or part of the assets of the Trust, and the Township
shall notify the Trustee, in writing, of any such appointment.
B.
The Trustee shall not have any discretion or authority with regard
to the investment of the Trust and shall act solely as directed trustee
of the assets of which it holds title. To the extent directed by the
Township, the Trustee is authorized and empowered with the following
powers, rights and duties, each of which the Trustee shall exercise
in a nondiscretionary manner:
(1)
To cause stocks, bonds, securities or other investments to be registered
in its name as Trustee, or in the name of a nominee, or to take and
keep the same unregistered.
(2)
To employ such agents and legal counsel as it deems advisable or
proper in connection with its duties and to pay such agents and legal
counsel a reasonable fee. The Trustee shall not be liable for the
acts of such agents and counsel or for the acts done in good faith
and in reliance upon the advice of such agents and legal counsel,
provided it has used reasonable care in selecting such agents and
legal counsel.
(3)
At the direction of the Township or the investment manager, as the
case may be, to sell, write options on, convey or transfer, invest
and reinvest any part thereof in each and every kind of property,
whether real, personal or mixed, tangible or intangible, whether income
or non-income-producing and wherever situated, including, but not
limited to, time deposits, shares of common and preferred stock, mortgages,
bonds, leases, notes, debentures, equipment or collateral trust certificates,
rights, warranties, convertible or exchangeable securities and other
corporate, individual or government securities or obligations, annuity,
retirement or other insurance contracts, mutual funds, or in units
of any other common, collective or commingled trust fund.
C.
Notwithstanding anything to the contrary herein, the assets of the
account shall be held by the Trustee as title holder only. Persons
holding custody or possession of assets titled to the Trust shall
include the Township, the Administrator, the investment manager and
any agents and subagents, but not the Trustee. The Trustee shall not
be responsible or liable for any loss or expense which may arise from
or result from compliance with any direction from the Township, Administrator,
the investment manager or such agents to take title to any assets
nor shall the Trustee be responsible or liable for any loss or expense
which may result from the Trustee's refusal or failure to comply
with any direction to hold title, except if the same shall involve
or result from the Trustee's negligence or intentional misconduct.
The Trustee may refuse to comply with any direction from the Township,
the Administrator, the investment manager or such agents in the event
that the Trustee, in its sole and absolute discretion, deems such
direction illegal.
D.
The Township hereby indemnifies and holds the Trustee harmless from
any and all actions, claims, demands, liabilities, loans, damages
or reasonable expenses of whatsoever kind and nature in connection
with or arising out of any action taken or omitted in good faith by
the Trustee in accordance with the directions of the Township or its
agents and subagents hereunder or any disbursements of any part of
the Trust made by the Trustee in accordance with the directions of
the Township or any action taken by or omitted in good faith by the
Trustee with respect to an investment managed by an investment manager
in accordance with any direction of the investment manager or any
inaction with respect to any such investment in the absence of directions
from the investment manager. Notwithstanding anything to the contrary
herein, the Township shall have no responsibility to the Trustee under
the foregoing indemnification if the Trustee fails negligently, intentionally
or recklessly to perform any of the duties undertaken by it under
the provisions of this Trust.
E.
Notwithstanding anything to the contrary herein, the Township, or
if so designated by the Township, the Administrator and the investment
manager or another agent of the Township, will be responsible for
valuing all assets so acquired for all purposes of the Trust and of
holding, investing, trading and disposing of the same. The Township
will indemnify and hold the Trustee harmless against any and all claims,
actions, demands, liabilities, losses, damages or expenses of whatsoever
kind and nature which arise from or are related to any use of such
valuation by the Trustee or holding, trading or disposition of such
assets.
F.
The Trustee shall and hereby does indemnify and hold harmless the Township from any and all actions, claims, demands, liabilities, losses, damages and reasonable expenses of whatsoever kind and nature in connection with or arising out of the Trustee's failure to follow the directions of the Township, the Administrator, the investment manager or agents thereof, except as permitted by the last sentence of Subsection C above; any disbursements made without the direction of the Township, the Administrator, the investment manager or agents thereof; and the Trustee's negligence, willful misconduct or recklessness with respect to the Trustee's duties under this article.
A.
The Township or its designee shall make such payments from the Trust
at such time to such persons and in such amounts as shall be authorized
by the agreement; provided, however, that no payment shall be made,
either during the existence of or upon the discontinuance of the Trust,
which would cause any part of the Trust to be used for or diverted
to purposes other than the exclusive purpose of funding post-retirement
benefits as described in this article.
B.
The Township, Trustee and Administrator may be reimbursed for expenses
reasonably incurred by them in the administration of the Trust. All
such expenses, including, without limitation, reasonable fees of accountants
and legal counsel to the extent not otherwise reimbursed, shall constitute
a charge against and shall be paid from the Trust upon the direction
of the Township.
A.
The Trustee shall not be required to keep accounts of the investments,
receipts, disbursements and other transactions of the Trust, except
as necessary to perform its title-holding function hereunder. All
accounts, books and records relating thereto shall be maintained by
the Township or its designee.
B.
As promptly as possible following the close of each year, the Trustee
shall file with the Township a written account setting forth assets
titled to the Trust as reported to the Trustee by the Township or
its designee.
A.
Neither the Trustee nor any affiliate thereof shall be required to
give any bond or to qualify before, be appointed by or account to
any court of law in the exercise of its powers hereunder.
B.
No person transferring title or receiving a transfer of title from
the Trustee shall be obligated to look to the propriety of the acts
of the Trustee in connection therewith.
C.
The Township shall have the right at all reasonable times during
the term of this article, and for three years after the termination
of this article, to examine, audit, inspect, review, extract information
from and copy all books, records, accounts and other documents of
the Trustee relating to this article and the Trustee's performance
hereunder.
A.
The Township reserves the right to alter, amend or (subject to the provisions on disbursements and expenses; see § 16-7) terminate this article at any time for any reason without the consent of the Trustee or any other persons, provided that no amendment affecting the rights, duties or responsibilities of the Trustee shall be adopted without the execution of the Trustee to the amendment. Any such amendment shall become effective as of the date provided in the amendment, if requiring the Trustee's execution, or on delivery of the amendment to the Trustee, if the Trustee's execution is not required.
B.
Upon termination of this article and upon satisfaction of all liabilities
of the Township to provide such benefits, any amount of Township contributions,
plus accrued earnings thereon, remaining in the accounts shall be
returned to the Township.
Neither the establishment of the Trust or any modification thereof,
the creation of any fund or account nor the payment of any benefits
shall be construed as giving to any person any legal or equitable
right against the Trustee, the Administrator, the Township or any
officer or employee thereof, except as otherwise may be expressly
provided for in this article.
Neither the Administrator, the Township nor the Trustee shall
be responsible for the validity of any contract of insurance or other
arrangement maintained in connection with this article or for the
failure on the part of the insurer or provider to make payment provided
by such contract or for the action of any person which may delay payment
or render a contract void or unenforceable in whole or in part.
