[Adopted 3-27-2002 by Ord. No. 02-02[1]]
[1]
Editor's Note: This ordinance repealed former Ch. 29, Art.
III, Nonuniformed Employees' Pension Plan, adopted 5-16-1985 by Ord.
No. 85-4, as amended, and any other ordinances or resolutions relating
to the West Manchester Township Nonuniformed Employees' Pension Plan
with an effective date prior to the adoption date of the amendment
and restatement of the plan with respect to benefits accruing on and
after the amendment and restatement effective date of the revised
plan.
[Amended 1-22-2009 by Ord. No. 09-02]
The document attached hereto and incorporated herein by reference
entitled, "West Manchester Township Non-Uniformed Employees Pension
Plan," originally effective January 1, 1966, as amended and restated
effective January 1, 2008, is hereby adopted and enacted as the West
Manchester Township Non-Uniformed Employees Pension Plan.[1]
[1]
Editor's Note: Said plan is on file in the Township offices.
The previous ordinances or resolutions of West Manchester Township
relating to the plan's trust fund with an effective date prior to
the adoption date of the amendment and restatement of the trust are
hereby repealed and the attached amendment and restatement of the
trust is enacted as the Trust Agreement[1] for the West Manchester Township Nonuniformed Employees'
Pension Plan.
[1]
Editor's Note: Said trust agreement is on file in the Township
offices.
The Township Manager of West Manchester Township is hereby appointed
as the Chief Administrative Officer of the plan.
The Chairman of the Board of Supervisors of West Manchester
Township, as agent of the employer, is authorized and directed to
execute the attached amendment and restatement of the West Manchester
Township Nonuniformed Employees' Pension Plan.
[Amended 1-22-2009 by Ord. No. 09-02]
Counsel Trust Company, or its successor in interest, is hereby
appointed and confirmed as the Trustee of the Trust.
[Added 6-23-2016 by Ord.
No. 16-04[1]]
A.
Establishment. A defined contribution retirement plan, entitled the
"West Manchester Township Nonuniformed Employees Defined Contribution
Retirement Plan" (the "Plan" or "Defined Contribution Plan"), is established
as a program of benefits under the West Manchester Township Nonuniformed
Employees Pension Plan for the benefit of full-time nonuniformed employees
of the Township hired or rehired on or after August 1, 2016, and is
hereby ratified and approved and the same is incorporated herein by
reference to the same. A copy of the Defined Contribution Plan is
attached, as Exhibit "A," to this section[2] in substantially final form and shall remain on file in
the Township office.
[2]
Editor's Note: Said plan is on file in the Township offices.
B.
Freeze of participation in defined benefit plan. The existing traditional
defined benefit program of benefits under the West Manchester Township
Nonuniformed Employees Pension Plan (the "Defined Benefit Plan") is
closed to participation by full-time nonuniformed employees of the
Township who are hired or rehired on or after August 1, 2016. The
Defined Benefit Plan remains ongoing with respect to eligible employees
hired or rehired by the Township prior to August 1, 2016, so long
as they remain active, eligible employees of the Township.
C.
Funding. The Defined Contribution Plan is a program of benefits under
the West Manchester Township Nonuniformed Employees Pension Plan and
is to be funded and maintained by any of the following methods, or
a combination of each:
(1)
Contributions from the general fund of the Township which may be
required after appropriate approval of the Board of Supervisors;
(2)
Contributions by Plan participants made on an after-tax basis which
are "picked up" by the Township pursuant to § 414(h)(2)
of the Internal Revenue Code of 1986, as amended;
(3)
State aid received pursuant to the Municipal Pension Plan Funding
Standard and Recovery Act (Act 205 of 1984);
(4)
Any other sums to the extent authorized by law and with prior approval
of the Board of Supervisors.
(5)
Rollovers to the Defined Contribution Plan.
[Added 1-25-2018 by Ord.
No. 18-03[3]]
(a)
The Defined Contribution Plan will accept participant rollover
contributions and/or direct rollovers of distributions (including
after-tax contributions) made after December 31, 2001, that are eligible
for rollover in accordance with § 402(c), 403(a)(4), 403(b)(8),
408(d)(3)(A)(ii), or 457(e)(16) of the Internal Revenue Code, from
all of the following types of plans:
[1]
A qualified plan described in § 401(a) or 403(a) of
the Internal Revenue Code;
[2]
An annuity contract described in § 403(b) of the Internal
Revenue Code;
[3]
An eligible plan under § 457(b) of the Internal Revenue
Code which is maintained by a state, political subdivision of a state,
or any agency or instrumentality of a state or a political subdivision
of a state; and
[4]
An individual retirement account or annuity described in § 408(a)
or 408(b) of the Internal Revenue Code (including SEPs, and Simple
IRAs after two years of participating in the Simple IRA).
(b)
Notwithstanding the foregoing, the Plan Administrator may reject
the rollover contribution if it determines, in its discretion, that
the form and nature of the distribution from the other plan does not
satisfy the applicable requirements under the Internal Revenue Code.
(c)
For indirect rollover contributions, the amount distributed
from such plan must be rolled over to this Plan no later than the
60th day after the distribution was made from the plan, unless otherwise
waived by the IRS pursuant to § 402(c)(3) of the Internal
Revenue Code.
(d)
The amount transferred shall be deposited in the Trust and shall
be credited to a rollover account. Such account shall be 100% vested
in the participant.
[3]
Editor's Note: This ordinance also provided for an effective
date of 1-1-2018.
D.
Administration.
(1)
The Township, acting by means of the Board of Supervisors, shall
be the Plan Administrator responsible for the administration of the
Defined Contribution Plan. The Board may appoint one or more members
of itself to be responsible for such administration.
(2)
The Board of Supervisors appoints the Township Manager as the Chief
Administrative Officer who shall have primary responsibility for the
execution of the administrative affairs of the Plan.
(3)
The Plan Administrator, including the Chief Administrative Officer
as the delegate of the Plan Administrator, shall have all powers necessary
to enable it to properly carry out its duties, including, but not
limited to, the power to construe the provisions of the Plan, to determine
all questions relating to eligibility of participants, to authorize
benefit disbursements to participants and to delegate its authority
as it deems appropriate. The decisions of the Plan Administrator on
all matters within the scope of its authority shall be final, subject
to approval of the Board of Supervisors.
E.
Plan investments.
(1)
It is intended that Defined Contribution Plan participants be able
to direct the investment of their accounts under the Plan from a menu
of investment options selected by the Plan Investment Committee. Such
options may include the engagement by the participant of a discretionary
investment portfolio manager selected by the Plan Investment Committee,
who may select investment options from the Plan's approved menu of
investments on the Plan participant's behalf. The Plan Investment
Committee shall consist of those individuals appointed from time to
time by the Board of Supervisors to serve as the investment committee
for the Defined Benefit Plan, except that the police representative
to that committee shall not serve on the Investment Committee for
the Defined Contribution Plan. The Plan Investment Committee shall
develop an investment policy for the Defined Contribution Plan and
may designate one or more investment managers to implement such investment
policy. The assets under the Defined Contribution Plan shall be held
by a Trustee designated by resolution of the Board of Supervisors.
Subject to the direction of such investment managers and the Plan's
investment policy, the Trustee shall have full responsibility for
administration of the Trust Fund established with respect to the Plan
and shall hold, invest, reinvest and distribute all funds and other
property received pursuant hereto in trust for the purposes of this
section. The Trustee shall be subject to such rules and regulations
as may from time to time be adopted by the Board of Supervisors by
ordinance or resolution.
F.
Power and authority of Trustee.
(1)
The Trustee shall have full power and authority to do all acts, execute,
acknowledge and deliver all instruments, and to exercise, for the
sole benefit of participants and beneficiaries of the Defined Contribution
Plan and the Nonuniformed Employees Pension Plan of which this Plan
is a part, any and all powers and discretions necessary to implement
and effectuate the purposes of this section, including for purposes
of illustration, but not limited to any of the following:
(a)
To hold, invest and reinvest all funds received pursuant to
this section and such legal investments as may be authorized as legal
investments under the laws of the Commonwealth of Pennsylvania;
(b)
To retain any property which may at any time become an asset
of the Defined Contribution Plan, as long as said Trustees may deem
it advisable; and
(c)
To make distribution of the monies in the Defined Contribution
Plan in accordance with the terms of this section.
(2)
The West Manchester Township Nonuniformed Employees Defined Contribution
Retirement Plan is a program of benefits under the West Manchester
Township Nonuniformed Employees Pension Plan. All of the assets of
the Defined Contribution Plan shall be held by the Trustee(s) as a
single plan and trust (which may consist of two or more subtrusts)
in accordance with the terms of the Defined Contribution Plan and
the terms of the Nonuniformed Employees Pension Plan of which the
Plan is a part.
G.
Administration expenses. The expense of administering the Defined
Contribution Plan, including compensation of any legal or actuary
counsel, any custodian of the Plan, and any investment managers, consultants
and other persons engaged to provide administrative services to the
Plan, and any other charges or expenses related thereto, exclusive
of the payment of benefits, may be paid by the Township or by the
Plan as determined by the Board of Supervisors or the Chief Administrative
Officer consistent with the terms of the Plan.
[1]
Editor's Note: This ordinance also provided for an effective
date of 8-1-2016.
