As used in this article, the following terms shall have the
meanings indicated:
ACCRUED BENEFITS PERCENTAGE
A fraction, the numerator of which represents the participant's
total cumulative calendar months of service earned to the date of
determination, and the denominator of which represents the total possible
calendar months of service he could earn from his date of hire to
his normal retirement date. For purposes of the current definition
only, service at any time during a calendar month shall constitute
one whole month. In addition and notwithstanding the foregoing, a
participant's accrued benefit percentage may never exceed the number
one. The accrued benefit shall be the accrued benefit percentage times
50% of the final monthly average salary, as of the date of determination.
All accrued benefits are subject to all applicable limitations, reductions,
offsets and actuarial adjustments provided by the plan prior to actual
payment thereof.
BENEFICIARY
The person specified by each participant on becoming a participant
by way of written notice which designates his beneficiary or beneficiaries
to the plan administrator. The participant's election of any such
beneficiary or beneficiaries may be rescinded or changed without the
consent of the beneficiary or beneficiaries at any time, provided
the participant provides the plan administrator with written notice
of the changed designation.
CITY
The City of Warren, located in Warren County, Pennsylvania.
COMPENSATION
The amount of a participant's earnings received or receivable
during the participant's employment with the City as an eligible employee
that shall be considered under the plan for purposes of calculating
benefits and contributions and in applying any applicable limitations
to such benefits or contributions. For the foregoing purposes, effective
January 1, 1991, compensation shall be based on average gross compensation
in conformance with the Supreme Court of Pennsylvania's decision in
Palvok v. Borough of West Mifflin, except that, if a participant becomes
disabled and receives payments either directly or indirectly from
the City on account of any state or federally mandated disability
programs, such payments shall be considered compensation as well,
but only to the extent that such payments replace the otherwise includible
items described before. Effective for retirements occurring on or
after January 1, 2006, participants shall be paid for 40% of their
accumulated days of sick leave at retirement at their daily rate,
but only to a maximum of 80 days of pay. A day's pay shall be computed
by dividing the annual salary by 2,080 and then multiplying by eight.
For the purposes of determining "compensation," as that term is defined
in this section of the article, only sick days earned during the last
36 months of service shall be included.
[Amended 12-18-2006 by Ord. No. 1748]
COST-OF-LIVING ADJUSTMENT
The increase applied to a member's retirement benefit to combat the effects of inflation and shall only apply to members who have retired and are, as of January 1, 1988, receiving normal retirement benefits pursuant to §
81-3 hereof. The cost-of-living adjustment shall be made to the pension benefit payable to such member; this adjustment shall apply to the regular pension amount set forth in §
81-3B hereof, except it shall not apply to the extra service benefit. The cost-of-living adjustment shall be an ad hoc adjustment, if applicable, in an amount not to exceed a one-hundred-dollar increase in the participant's normal retirement benefit effective as of January 1, 1989, and the extra service benefit shall not apply to such member. Such cost-of-living increase shall not exceed any of the following:
A.
The percentage increase in the Consumer Price Index from the
year in which the member was last employed by the City.
B.
In no case shall the total benefit of a member payable under
this plan exceed 75% of the member's final monthly average compensation.
C.
The total cost-of-living increase applied to the member's retirement
benefit shall not exceed 30%.
DEPENDENT CHILD
Any natural-born child, any legally adopted child, any stepchild
or any foster child of a participant, which child is unmarried, has
not yet attained age 18 and, in the case of a foster child, resides
in such participant's household.
DISABLED or DISABILITY
A condition of physical or mental impairment which prevents
a person from engaging in any substantial gainful activity as a police
officer of the City and which occurs during, and results directly
from, the performance of duties as a police officer on behalf of the
City. A participant must submit satisfactory evidence and other proof
of such disability as required by the Committee.
ELIGIBLE EMPLOYEE
A regularly scheduled, full-time, permanent police officer
who shall participate herein as of the date of his appointment to
such permanent position. Any police officer employed as a temporary,
probationary, special, part-time, or permanent part-time officer of
the City shall not be considered an eligible employee for purposes
of this plan.
EXTRA SERVICE BENEFIT
[Amended 12-18-2006 by Ord. No. 1748]
A.
Shall be effective for retirements on or after January 1, 2006,
and shall be payable as the sum obtained by computing the number of
whole years after having served the minimum number of years of service
required under the plan for normal retirement during which a participant
has been employed by the City. The amount payable shall be derived
by multiplying the said number of years served in the excess of the
minimum required for normal retirement by an amount equal to 1/40
of the retirement allowance which has become payable to such participant
as provided for in this plan. In computing the service increment,
no employment after the contributor has reached the age of 65 years
shall be included, and no service increment shall be paid in the excess
of $500 per month.
B.
Each participant, effective January 1, 2006, shall pay into
the plan a monthly sum in addition to his or her retirement contribution,
which shall be equal to 1/2 of 1% of the participant's compensation,
provided that such payment shall not exceed the sum of $5 per month,
and provided that such service increment contributions shall not be
paid after a participant has reached the age of 65 years.
FORMER PARTICIPANT
A person who had become a participant but who subsequently
ceased to be an eligible employee on account of death or other termination
of employment with the City.
MEMBER(S)
Former participant(s) who are entitled or may be entitled
to current or future benefits from the plan and participant(s).
NORMAL RETIREMENT DATE
Effective January 1, 1991, other than incurring a disability,
shall mean the date on which a participant attains age 50 or completes
20 years of service, whichever is later. Notwithstanding the foregoing,
for participants who terminate employment on or after January 1, 2009,
"normal retirement," other than incurring a disability, shall mean
the date on which a participant completes 20 years of service.
[Amended 10-20-2008 by Ord. No. 1772]
PARTICIPANT
An eligible employee, effective as of the date on which such
employee first commences as an eligible employee with the City and
who has not for any reason ceased to be a participant hereunder.
PENSION FUND or FUND
The police pension fund administered under the terms of this
plan and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
SERVICE
Any specified period for which an eligible employee is directly
or indirectly compensated or entitled to compensation by the City
for the performance of duties as a full-time permanent police officer
or receives or is entitled to receive payment for:
A.
The time actually worked for the City as an eligible employee.
B.
Absence due to vacation, holidays or sickness.
C.
An authorized leave of absence.
D.
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that the
participant has been employed as a regular full-time member of the
City's police force for a period of at least six months immediately
prior to the period of military service and the participant returns
as an eligible employee within six months following discharge from
military service or within such longer period during which employment
rights are guaranteed by applicable law or under the terms of the
collective bargaining agreement with the City.
YEAR OF SERVICE
Twelve calendar months of service, whether or not such months
are consecutive, where service at any time during a calendar month
constitutes one whole month.
As used in this article, the following terms shall have the
meanings indicated:
ACT 205
The Municipal Pension Plan Funding Standard and Recovery
Act, Act of December 18, 1984, P.L. 1005, No. 205, as amended, 53
P.S. § 895.101 et seq.
ACT 600
The Police Pension Fund Act, Act of May 29, 1956, P.L. (1955)
1804, No. 600, as amended, 53 P.S. 767 et seq.
ACTUARY
A person who has at least five years of actuarial experience
with public pension plans and who is either enrolled as a member of
the American Academy of Actuaries or enrolled as an actuary pursuant
to the Federal employee Retirement Income Security Act of 1974.
CHIEF ADMINISTRATIVE OFFICER
The individual designated by Council who shall have the power
and authority to perform all acts and to execute, acknowledge and
deliver all instruments necessary to implement and effectuate the
purpose of the plan. Where Council fails to designate a chief administrative
officer, the "chief administrative officer" shall be the Manager of
the City. Any decision or determination made by the chief administrative
officer may be reviewed by Council with the right reserved by Council
to overrule, amend, modify, alter or change any decisions or determinations
of said chief administrative officer in such manner and to such extent
as may seem proper to Council.
CITY
The City of Warren and any successor which shall maintain
this plan, and any predecessor which has maintained this plan. The
City is situated in Warren County in the Commonwealth of Pennsylvania.
CODE
The Internal Revenue Code of 1986, as amended or replaced
from time to time.
COMMITTEE or POLICE PENSION FUND COMMITTEE
Shall, in general, be advisory in nature and shall have such
powers as are specifically delegated by Council in writing. The Committee
shall consist of the Mayor, Police Chief and Finance Officer of the
City of Warren, whose membership on said Committee shall be concurrent
with the tenure of the office of each; one member of the Council of
the City of Warren to be appointed by the Mayor of said Council for
a term of two years from the date of appointment and during his tenure
in office; an active member of the Police Department of the City of
Warren and a former member of the Police Department who is vested,
who each shall be elected by a majority vote of all members of the
Police Department to serve for the term of two years from the date
of his election; and one citizen of the City of Warren who is a registered
elector, to be appointed by Council to serve for a term of two years.
The Committee shall be deemed to exist subject to the power and authority
of the Council of the City, and any decision or determination of said
Committee may be reviewed by said Council with the right reserved
by Council to overrule, amend, modify, alter or change any decisions
or determinations of said Committee in such manner and to such extent
as may seem proper to Council.
COUNCIL
The Council of the City of Warren in whom rests the responsibility
for appointing the chief administrative officer and for deciding and
approving any matter of finance that affects or could affect the plan,
its participants or beneficiaries. All powers relative to the operation
and administration of the plan shall specifically reside with Council
unless delegated pursuant to this article.
PLAN
The current instrument, including all amendments hereto.
PLAN YEAR
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
POLICY or CONTRACT
A retirement annuity or a retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
TRUST or FUND
The fund administered and established under the terms of
the plan, which fund shall include all money, property, investments,
policies and contracts standing in the name of the plan.
TRUST AGREEMENT
The legal agreement entered into between the City and any
fiduciary that shall provide specifically for all objectives, powers
and responsibilities concerning the management of the trust's assets.
[Amended 8-18-2008 by Ord. No. 1765]
A. Definitions. The following definitions apply for purposes of this
section only:
LEASED EMPLOYEE
Effective as of January 1, 1997, any person (other than an
employee of the recipient) who, pursuant to an agreement between the
recipient and any other person ("leasing organization"), has performed
services for the recipient [or for the recipient and related persons
determined in accordance with Code Section 414(n)(6)] on a substantially
full-time basis for a period of at least one year, and such services
are performed under primary direction or control by the recipient.
B. Leased employees and independent contractors. Leased employees and
independent contractors are not eligible to participate in this plan.
Any person whom the employer does not regard as being an employee
shall not be eligible to participate.
C. Limit on compensation. Compensation is subject to the limitation
under Code Section 401(a)(17), which is $230,000 for the plan year
beginning in 2008. The limit is automatically adjusted periodically,
without formal amendment, for changes in the law and cost-of-living
adjustments under Code Section 401(a)(17).
D. Maximum annual benefit.
(1) General rule. Except as otherwise provided, this plan shall at all
times comply with the provisions of Code Section 415 and the regulations
thereunder, the terms of which are specifically incorporated herein
by reference. If a benefit payable to a participant under this plan
would otherwise exceed the limit under Code Section 415, the benefit
will be reduced to the maximum permissible benefit.
(2) Effective date. If there is more than one permissible effective date
for any required change in the Code Section 415(b) provisions, then
the change shall be effective as of the latest permissible effective
date; however, any adjustment in the dollar limit under Code Section
415(b)(1)(A), whether required or permissible, shall take effect automatically
as of the earliest permissible effective date. The "applicable mortality
table" in Revenue Ruling 2001-62 became effective as of December 31,
2002.
(3) No reduction in accrued benefits. Notwithstanding the above, no change
in the limits under this article shall reduce the benefit of any participant.
(4) Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(b) or (e),
and if the aggregated benefits would otherwise exceed the limit under
Code Section 415(b) or (e), then benefits shall be reduced first under
this plan. [Historical Note: Code Section 415(e) applied for limitation
years beginning prior to 2000.]
(5) Mandatory contributions. participant contributions are annual additions,
and any benefit attributable to participant contributions is not included
in the benefit subject to the limits of Code Section 415(b) or (e).
This subsection does not apply to contributions "picked up" in accordance
with Code Section 414(h).
(6) Permissive service credit. Effective as of January 1, 1998, if a
participant makes a purchase of permissive service credit [within
the meaning of Code Section 415(n)] under the plan, the benefit derived
from the contributions made to purchase the service credit shall be
treated as part of the benefit subject to the limitations under this
section.
(7) To the extent applicable, the above provisions and limitations shall
be subject to Code Section 415(b)(2)(G).
E. Limit on annual additions.
[Amended 10-19-2015 by Ord. No. 1861]
(1) Annual additions. Except as otherwise provided, annual additions
(which include participant contributions) under this plan shall at
all times comply with the provisions of Code Section 415(c) and the
regulations thereunder, the terms of which are specifically incorporated
herein by reference. If an annual addition would otherwise exceed
the limit under Code Section 415(c), the excess annual addition will
be eliminated in accordance with methods permitted under Rev. Proc.
2008-50 (Rev. Proc. 2006-27 prior to 2009) or its successor.
(2) Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(c), and
if the annual additions would otherwise exceed the limit under Code
Section 415(c), annual additions will first be reduced under the other
plan. If there is more than one other plan, annual additions will
first be reduced under the plan with the greatest amount of annual
additions.
(3) Effective date. The limits under which Code Section 415(c) are adjusted
periodically in accordance with changes in the law or cost of living
adjustments without the need for a plan amendment. If there is more
than one permissible effective date for any required change relating
to Code Section 415(c), then the change shall be effective as of the
earliest permissible effective date.
F. Direct rollovers.
(1) Effective as of January 1, 1993, if a participant, a spousal beneficiary,
or an alternate payee (who is a spouse or former spouse of a participant)
is entitled (under other provisions of this plan) to receive an eligible
rollover distribution of at least $200, the distributee may elect
that the plan administrator transfer all or part (provided that the
part is at least $500) to any eligible retirement plan capable of
accepting such a transfer.
(2) For purposes of this section, the following definitions shall apply:
(a)
An "eligible rollover distribution" is any distribution of all
or any portion of the balance to the credit of the distributee, except
that an eligible rollover distribution does not include: i) any distribution
that is one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy)
of the distributee or the joint lives (or joint life expectancies)
of the distributee and the distributee's designated beneficiary, or
for a specified period of 10 years or more; ii) any distribution to
the extent such distribution is required under Code Section 401(a)(9);
iii) the portion of any distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities); and iv) effective
as of January 1, 2002, any hardship distribution. Effective as of
January 1, 2002, clause (iii) does not apply to any after-tax participant
contributions that are paid to an individual retirement account or
annuity described in Code Section 408(a) or (b) or to a qualified
defined contribution plan described in Code Section 401(a) or 403(a),
or effective January 1, 2007, a Code Section 403(b) annuity contract
that agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which
is not so includible.
(b)
An "eligible retirement plan" is an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), an annuity plan described in Code
Section 403(a), or a qualified trust described in Code Section 401(a),
that accepts the distributee's eligible rollover distribution. However,
in the case of an eligible rollover distribution to a surviving spouse,
prior to January 1, 2002, an "eligible retirement plan" was an individual
retirement account or individual retirement annuity. Effective as
of January 1, 2002, an "eligible retirement plan" includes an annuity
contract described in Code Section 403(b) and an eligible plan under
Code Section 457(b) which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this plan. Effective January
1, 2008, an "eligible retirement plan" shall include a Roth IRA, as
that term is defined in Code Section 408A(b), that agrees to separately
account for amounts transferred from this plan.
(c)
A "distributee" includes an employee or former employee. In
addition, the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse who is
the alternate payee under a qualified domestic relations order, as
defined in Code Section 414(p)(11), are distributees with regard to
the interest of the spouse or former spouse.
(d)
Effective as of January 1, 2002, an employee may, in accordance
with Code Section 457(e)(17), make a trustee-to trustee transfer from
an eligible deferred compensation plan [as defined in Code Section
457(b)] to this plan for the purpose of purchasing service credit
(to the extent that such purchases are permitted under the terms of
the plan) or repaying a cash-out of contributions refunded under the
plan.
G. Nonspouse beneficiaries. Effective as of January 1, 2007, if a beneficiary
who is not a surviving spouse is entitled to receive what would otherwise
be an eligible rollover distribution, the beneficiary may, in accordance
with Code Section 402(c)(11), make a trustee-to-trustee transfer of
that amount to an IRA or individual retirement annuity (other than
an endowment contract), provided that:
(1) The transfer is made not later than the end of the fourth year after
the year of the participant's death; and
(2) The account or annuity to which the amount is transferred is treated
as an inherited IRA or individual retirement annuity in accordance
with Code Section 408(d)(3)(C).
H. Minimum required distributions.
(1) Notwithstanding any provision in this plan to the contrary, the distribution
of a participant's benefits shall be made in accordance with the requirements
and conditions of and shall otherwise comply with Code Section 401(a)(9).
For purposes of complying with Code Section 401(a)(9), life expectancies
shall be determined in accordance with the 1987 proposed regulations
prior to January 1, 2003, and with the final regulations [Sections 1.401(a)(9)-1
through 1.401(a)(9)-9] on or after January 1, 2003.
(2) Effective as of January 1, 1997, distribution of a participant's
benefits shall begin not later than April 1 of the calendar year following
the later of:
(a)
The calendar year in which the participant attains age 70 1/2;
or
(b)
The calendar year in which the participant retires.
Distributions must be made over a period not exceeding the life
of the participant or the joint lives of a participant and his beneficiary.
|
(3) Distributions to a participant and his beneficiaries shall only be
made in accordance with the incidental death benefit requirements
of Code Section 401(a)(9)(G) and the regulations thereunder.
(4) This section does not authorize the payment of any benefit in any
form not permitted under another provision of the plan.
I. Approved domestic relations orders. Upon approval by the plan administrator
of a domestic relations order as an "approved domestic relations order,"
all rights and benefits provided to a participant in this plan shall
be subject to the rights afforded an "alternate payee" pursuant to
an approved domestic relations order to the extent provided by the
laws of Pennsylvania. In no event shall a domestic relations order
be approved which expands the rights and benefits otherwise available
to the participant under the plan.
J. Credit for qualified military service. Effective as of December 12,
1994, notwithstanding any provision of this plan to the contrary,
contributions, benefits and service credit with respect to qualified
military service will be provided in accordance with Code Section
414(u).
K. Vesting upon plan termination. Upon the termination of this plan
or complete discontinuance of contributions [within the meaning of
pre-ERISA Code Section 401(a)(7)] to this plan, each employee as of
the date of such termination or discontinuance shall become vested
to the extent that the plan is funded.
L. Consent for lump-sum distributions. Effective January 1, 2006, notwithstanding
any other provision of the plan, any distribution to a participant
made prior to the earlier of age 62 or normal retirement age of an
amount in excess of $1,000 that is an eligible rollover distribution,
as set forth in the plan and the Internal Revenue Code, shall be made
only upon consent of the participant.