[Adopted 2-11-2002 by Ord. No. 1669 (Ch. 1, Part 4B, of the
1997 Code of Ordinances)][1]
[1]
Editor's Note: Ordinance No. 1808, adopted 11-21-2011, amended
the Police Pension Plan to comply with the applicable terms of the
Pension Protection Act of 2006 (PPA) and the Heroes Earnings Assistance
Relief Tax Act (HEART Act). A complete copy of Ord. No. 1808 is on
file in the City offices.
A.
Pursuant to former Chapter 1, Part 4B, of the Code of Ordinances
(hereinafter referred to as "prior plan") of the City of Warren (hereinafter
referred to as the "employer"), the City has maintained a pension
plan for the benefit of full-time police officers, known as the "City
of Warren Police Pension Plan."
B.
Effective January 1, 2002, except to the extent a different date
is indicated in the text herein, the City desires to amend and restate
the prior plan in its entirety, the terms of which are hereinafter
set forth. This document shall continue to be known as the "City of
Warren Police Pension Plan" (hereinafter referred to as the "plan").
C.
The purpose of this plan continues to be to provide retirement income
for the benefit of its eligible employees and their beneficiaries,
but limited to those who qualify in accordance with the terms and
conditions of the plan as set forth herein.
D.
The City intends that this plan, together with any related trust
agreement, shall meet all the pertinent requirements for qualification
under the Internal Revenue Code of 1986, as amended, and the plan
and trust agreement shall be interpreted, wherever possible, to comply
with the terms of said code and all formal regulations and rulings
pertinent to the plan and trust agreement issued thereunder. The City,
as a home rule municipality, specifically elects not to be governed
by Act 600 of 1956, 53 P.S. § 767 et seq., or the Third
Class City Code, 53 P.S. § 39301 et seq.
E.
Each retired member who was receiving monthly benefits on December
31, 2001, under the prior plan shall receive payments on or after
January 1, 2002, in accordance with the terms of the prior plan.
F.
Each terminated member who terminated employment prior to January
1, 2002, with a vested interest in his accrued benefit under the prior
plan and who had not commenced receiving his retirement benefit on
such date will be eligible to receive retirement benefit on such benefit
commencement date as set forth in the prior plan.
G.
The provisions of this plan shall apply only to any member who terminates
employment on and after January 1, 2002, except for those members
who agree to retire prior to December 31, 2001, and who meet the terms
and conditions described in Appendix I,[1] who shall be eligible for the special retirement option
pursuant to the terms of the prior plan.
[1]
Editor's Note: Appendix I is included at the end of this chapter.
As used in this article, the following terms shall have the
meanings indicated:
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.
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.
The City of Warren, located in Warren County, Pennsylvania.
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]
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:
The percentage increase in the Consumer Price Index from the
year in which the member was last employed by the City.
In no case shall the total benefit of a member payable under
this plan exceed 75% of the member's final monthly average compensation.
The total cost-of-living increase applied to the member's retirement
benefit shall not exceed 30%.
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.
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.
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.
The spouse to whom a participant is married.
[Amended 12-18-2006 by Ord. No. 1748]
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.
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.
The compensation of a participant averaged over the participant's
final 36 months of service.
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.
Former participant(s) who are entitled or may be entitled
to current or future benefits from the plan and participant(s).
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]
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.
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.
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:
The time actually worked for the City as an eligible employee.
Absence due to vacation, holidays or sickness.
An authorized leave of absence.
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.
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.
A.
Entitlement. A member must satisfy at least one of the following requirements to become entitled to the retirement benefit described in Subsection B below:
[Amended 10-20-2008 by Ord. No. 1772]
(1)
Have reached normal retirement date, as defined in § 81-2, on or before the date on which he became a former participant; or
(2)
Have completed at least 12 years of service on or before the date on which he became a former participant and have filed a written notice of his intention to "vest" with the administrator within 90 days of such date. (See Subsection D hereof.) Note that the failure to file an election to vest will result in a payment of member contributions and associated earnings pursuant to § 81-6C of this article.
B.
Retirement benefit. A member who satisfies the conditions for entitlement
described in the foregoing subsection shall be entitled to a monthly
amount payable for his life, which amount (referred to hereinafter
as the "retirement benefit" or "normal retirement benefit") is derived
from the following formula:
|
(a x b) + c
|
|
Where, with respect to said member:
| ||||
|---|---|---|---|---|
|
a
|
=
|
50% of final average monthly compensation.
| ||
|
b
|
=
|
accrued benefit percentage.
| ||
|
c
|
=
|
extra service benefit.
| ||
C.
Commencement. The retirement benefit of a member shall become payable
on the first day of the calendar month next following the later of:
(i) the date the former participant would reach his normal retirement
date if he continued to be an eligible employee until such date; or
(ii) the date on which his employment terminated with the City, and
thereafter, the first day of each month during the former participant's
lifetime. Notwithstanding anything contained herein to the contrary,
no retirement benefit payments nor any other payments shall be due
or payable on or before the first day of the month next following
the date that is 90 days after the date the administrator receives
the application for benefits. Failure to comply with the 90 days'
notice will not result in a forfeiture of benefits by a participant.
D.
Deferred vested benefit. A member who has completed at least 12 years of service shall be entitled to elect to receive a deferred vested benefit in lieu of a withdrawal of member contributions pursuant to § 81-6C hereof. Such a deferred vested benefit shall be in an amount equal to the accrued benefit as of the date employment terminates as a police officer of the City and shall commence as of the first day of the month coincident with or next following the attainment of normal retirement date or the date it would have been attained if the participant continued in service until such date. The member shall be entitled to such a vested benefit by filing with the administrator, within 90 days of the date he ceases to be employed as a full-time police officer for the City, a written notice of his intention to vest.
E.
For those participants retiring under Subsection A(1), a cost-of-living adjustment such that the retirement benefit under Subsection B (exclusive of the extra service benefit or any retirement incentive) shall be adjusted effective as of each annual anniversary date of the original commencement of a participant's retirement benefit payments under the plan. Such cost-of-living adjustment shall be an amount equal to 2% a year of the above retirement benefit with a maximum retirement benefit of 70% of the contractual rate of pay for a fourth-year police officer, first class patrolman, at the time the participant retired.
A.
Disability benefit. Effective January 1, 1991, a disabled member
shall be entitled to receive a monthly benefit equal to 50% of his
final average monthly compensation, which benefit shall be known hereinafter
as the "disability benefit," reduced by the value of any compensation
received by such disabled member under workers' compensation (Where
any such benefits are received in a lump sum, the lump sum will be
applied in equal monthly offsets calculated on the basis of the recipient's
life expectancy.); provided, however, that, where the disabled member
has not served 36 months at the time of disability, the monthly payment
under this service-incurred disability pension shall be equal to 50%
of the final average monthly compensation of such disabled member
during the time he was a participant of the plan. The disability benefit
shall commence on the first day of the calendar month next following
the date on which the member has satisfied the plan's definition of
"disability" and shall continue, except as noted below until the earliest
of his death or recovery from disability. If the disabled member dies
before the total pension payments under the plan equal his accumulated
contributions made by him to the plan, with interest, the difference
shall be paid in the death benefit to his beneficiary.
B.
Cost-of-living increase to disability benefit. A cost-of-living adjustment
increase shall be applied to a member's disability benefit based upon
the percentage increase in the Consumer Price Index from the later
of the year in which the participant was last employed by the City
or the date the participant would have satisfied or met the requirements
for normal retirement date had he continued in service. Such cost-of-living
increase shall not exceed the following:
C.
Termination of the disability benefits. If the Committee shall determine
that a member who is disabled has recovered sufficiently to resume
active employment as a police officer, or if a member refuses to undergo
a medical examination as directed by the Committee (such a medical
examination may not be required more frequently than once in any given
twelve-month period), the payment of the disability benefit shall
cease. The disability benefit described above shall be terminated,
and the member shall be entitled to no further benefits under the
plan.
(1)
If the City shall determine, on the basis of a medical examination
by a physician acceptable to the City (and agreed to by the member),
that the member, prior to his normal retirement date, has sufficiently
recovered to return to employment. If the City and the member cannot
agree on a physician, they shall each select a physician who will
then select a third physician who will make a final binding decision.
(2)
If the member refuses to undergo a medical examination which may
be ordered by the City or the administrator, provided that the member
may not be required to undergo a medical examination more often than
once every 12 months.
(3)
If the member is employed in any capacity as a full-time or part-time
police officer after qualifying for the disability benefit.
(4)
If the disabled member recovers from his disability and does not
return to service and if his total payments under the plan are less
than his member contributions made to the plan, with interest, the
difference shall be paid to him as a termination benefit.
(5)
From time to time, the City shall adopt uniform provisions for disabled
members who recover from disability and return to service.
D.
Requirement of notification. A member who is receiving benefits from
the plan on account of disability shall be required to notify the
administrator of any change which may cause a cessation of entitlement
to receipt of such benefits. To the extent a member fails to provide
immediate notice to the administrator of any such change in status
and who continues to receive benefits to which he is not entitled
from the plan on account of disability, the administrator may take
any action necessary to recover any amount improperly paid, including
legal action or the offsetting of such amounts against future payments
on account of retirement or death under the plan, including the costs
of such actions.
A.
[1]Surviving spouse benefit. In the event a member who is eligible to receive or is receiving retirement benefits pursuant to § 81-3 shall die, the spouse of the deceased member or, if no spouse survives or if the spouse survives and subsequently dies or remarries, then the child or children under the age of 18 years of the deceased member shall, during the spouse's lifetime or so long as the spouse does not remarry in the case of the spouse or until reaching the age of 18 in the case of a child or children, receive a monthly income calculated at the rate of 100% of the monthly retirement benefit which the member was receiving or would have been receiving had he been retired at the time of his death. In the case of children, the above benefit shall be paid in equal shares. The share of any child attending a full-time accredited college or university in pursuit of a degree shall be eligible for payments until the age of 21, and a child who is disabled and unable to perform substantial gainful employment shall be eligible for payments during the duration of his/her disability.
[1]
Editor's Note: Former Subsection A, Preretirement death benefits
in service, which immediately preceded this subsection, was repealed
1-21-2013 by Ord. No. 1822.
B.
Payment of survivor benefits. Survivor payments shall be made monthly
as of the first day of each month. The first installment of any benefit
payable to a survivor shall be payable on the first day of the month
next following date of death of the member.
C.
Preretirement death benefits (not in service). In the event a participant
who has not attained entitlement to retirement benefits dies while
an eligible employee, but not as a direct result of an accident incurred
while performing his duties for the City, the beneficiary of the participant
or, if no beneficiary survives, the participant's estate shall be
entitled to receive a refund of the member contribution account.
A.
Member contributions defined.
(1)
The term "member contribution" shall mean any amount deposited into
the plan by a participant. In general, participant's contribution
shall not be less than 5% or more than 8% of a participant's compensation.
Except as provided below, contributions may be reduced or eliminated,
provided all three of the following requirements are met:
(a)
Current actuarial study indicates that the condition of the
plan is such that contributions may be reduced or eliminated.
(b)
Contributions by the City are not required to keep the plan
actuarially sound.
(c)
Any reduction or elimination of contributions is authorized
on an annual basis by an ordinance or resolution.
(2)
The arbitration award effective July 27, 1995, between the City of
Warren and the Police Department of the City of Warren, specifies
that contributions by participants shall be at the rate of 6% beginning
the first full pay after the issuance of the arbitration award. The
six-percent contribution rate shall be in effect for 26 biweekly pay
periods, after which time the contribution rate will then drop to
2% for the remainder of the contract year 1996. Police participants
who retire prior to completing one year of service following the issuance
of the arbitration award shall, at the time of retirement, make a
lump-sum contribution to the pension fund equivalent to 6% of 1995
eligible earnings less any contributions already made in 1995.
(3)
Pursuant to City Ordinance No. 1597 and Resolution No. 2383, mandatory
employee contributions are picked up by the City in lieu of contributions
by employees and thereafter treated as employer contributions.
B.
Crediting of interest. Interest shall accrue to member contributions
at the rate of 5% per annum (compound interest). Such interest shall
be credited from the midpoint of the year (or part of the year) when
made through the date of participant's termination of eligible employment.
C.
Withdrawal.
(1)
Member contributions, in addition to the interest accrued thereon
(hereinafter referred to collectively as the "member contribution
account"), may be withdrawn from the plan by or on behalf of a former
participant only under the following circumstances:
(b)
Where the member fails to elect to vest in a retirement benefit to which he has become entitled, pursuant to § 81-3A(2).
(c)
Where the member dies without satisfying the requirements of
entitlement to a death benefit, as detailed in § 81-55.
(d)
Where the retirement or disability benefit of such member has
not yet commenced.
(2)
Where the above conditions for the withdrawal of the member contribution
account have been satisfied, payment of the member contribution account
shall be made to the member or, in the event of the member's death,
to the member's beneficiary or, if a beneficiary does not exist, to
the member's estate. Such payment shall be made on or after the first
day of the calendar month next following the date on which the member
became a former participant or failed to elect vesting in a retirement
benefit to which he had become entitled, whichever is later.
(3)
Upon the distribution of the member contribution account, the entitlement
of the member, his spouse, children or beneficiary to any future retirement
benefit, disability benefit or death benefit shall cease, and they
shall have no further rights in the plan. If the member again becomes
an eligible employee, he shall pay to the fund the member contribution
account under the terms and conditions as may be determined by the
Committee.
D.
Pursuant to Ordinance No. 1597 and related Resolution No. 2383, employee
contributions shall be paid or picked up by the City in lieu of contributions
by participants and thereafter treated as employer contributions for
federal income tax purposes within the meaning of § 414(h)(2)
of the Internal Revenue Code of 1986.
E.
Effective January 1, 2006 through December 31, 2008, if determined actuarially feasible and allowable by law following required studies of the plan by a firm of the City's choice, the participant's contribution rate to the plan shall continue to be 2% of the participant's compensation less $5 per month plus the extra service benefit required contribution provided in the definition of "extra service benefit" in § 81-2 of this article.
[Added 12-18-2006 by Ord. No. 1748]
As used in this article, the following terms shall have the
meanings indicated:
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.
The Police Pension Fund Act, Act of May 29, 1956, P.L. (1955)
1804, No. 600, as amended, 53 P.S. 767 et seq.
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.
The 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.
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.
The Internal Revenue Code of 1986, as amended or replaced
from time to time.
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.
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.
The current instrument, including all amendments hereto.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
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.
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.
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.
A.
Authority and duties of the administrator.
(1)
The administrator shall have full power and authority to do whatever,
in its judgment, shall be reasonably necessary to effectuate the proper
administration and operation of the plan. The interpretation or construction
placed upon any term or provision of the plan by the administrator
or any action of the administrator taken in good faith shall be final
and conclusive upon all parties hereto, except with regard to the
power of Council provided in the definitions of "Chief Administrative
Officer," "Committee" or "Police Pension Fund Committee," and "Council"
hereof. The authority of the administrator shall include but shall
not be limited to:
(a)
Construction of the plan.
(b)
Determination of all questions affecting the eligibility of
any employee of the City to participate herein.
(c)
Computation of the amount and the source of any benefit payable
hereunder to any participant or beneficiary, as applicable.
(d)
Authorization of any and all disbursements of benefits.
(e)
Prescription of any procedure to be followed by any participant
or other person, as applicable, in filing any application or election
hereunder.
(f)
Preparation and distribution of information explaining the plan
as may be required by law or as the administrator deems appropriate.
(g)
Requisition of information necessary from the City or any participant
for the proper administration of the plan.
(h)
Appointment and retention of any individual to assist in the
administration of the plan, including such legal, clerical, accounting
and actuarial services as may be required by any applicable law or
laws.
(2)
The administrator shall have no authority to add to, subtract from
or modify the terms of the plan or to change or add to any benefits
provided by the plan, or to waive or fail to apply any requirements
of eligibility for benefits under the plan. Further, the administrator
shall have no power to adopt, amend or terminate the plan, to select
or appoint any trustee, or to determine or require any contributions
to the plan, said powers being exclusively reserved to Council.
B.
Hold harmless. To the full extent permitted by law, no member of
the Committee, Council, the chief administrative officer, the administrator,
nor any other person involved in the administration of the plan shall
be liable to any person on account of any act or failure to act which
is taken or omitted to be taken in good faith in performing their
respective duties under the terms of this plan. To the extent permitted
by law, the City shall, and hereby does agree to, indemnify and hold
harmless the administrator and each successor, and each individual's
heirs, executors and administrators, and the administrator's delegates
and appointees (other than any person or entity independent of the
City who renders services to the plan for a fee) from any and all
liability and expenses, including counsel fees, reasonably incurred
in any action, suit or proceeding to which he is or may be made a
party by reason of being or having been the administrator or a delegate
or appointee of the administrator, except in matters involving criminal
liability or intentional or willful misconduct. If the City purchases
insurance to cover claims of a nature described above, then no right
of indemnification shall exist except to the extent of any deductible
amount under the insurance coverage or to the extent of the amount
the claims exceed the insured amount.
C.
Appeal procedure. Any person whose application for benefits is denied,
who questions the amount or timing of any benefit paid, or who has
some other claim arising under the plan (the "claimant") shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
(1)
The claimant shall first file a notice of claim with the administrator,
which notice shall fully describe the nature of the claim. The administrator
shall review the claim and make an initial determination approving
or denying the claim and shall mail notice of the determination within
90 days (or such other period as may be established by applicable
law) from the time the application is received. Such ninety-day period
may be extended by the administrator, if special circumstances so
require, for up to 90 additional days by the administrator delivering
notice of such extension to the claimant within the first ninety-day
period. Any notice hereunder shall, if it is a notice of denial, set
forth:
(2)
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by Council of the initial
determination. Such request for review must be made by written notice
to Council within 60 days of mailing of the notice of denial. During
such review, the claimant or a duly authorized representative shall
have the right to review any pertinent documents and to submit any
issues or comments in writing. Council shall, within 60 days after
receipt of the notice requesting such review (or in special circumstances,
such as where Council in its sole discretion holds a hearing, within
120 days of receipt of such notice), submit its decision in writing
to the person or persons whose claim has been denied. The decision
shall be final, conclusive and binding on all parties and shall contain
specific references to the pertinent plan provisions on which the
decision is based.
(3)
Any notice of claim questioning the amount of a benefit in pay status
shall be filed by the claimant with the administrator within 90 days
following the date of the first payment which would be adjusted if
the claim is granted, unless the administrator allows a later filing
for good cause shown.
(4)
A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
A.
Actuarial valuations.
(1)
The actuary to the plan shall perform an actuarial valuation at least
biennially (unless the City is applying or has applied for supplemental
state assistance pursuant to Act 205, for purposes of this section,
whereupon actuarial valuation reports must be made annually).
(2)
Each biennial actuarial valuation report shall be made as of the
beginning of each plan year occurring in an odd-numbered calendar
year, beginning with the year 1985.
(3)
Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in Act 205.
(4)
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by Act 205 or any other expense which
is permissible under the terms of Act 205 and which are directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the trust. Such allowable expenses shall
include, but shall not be limited to, the following:
(a)
Investment costs associated with obtaining authorized investments
and investment management fees.
(b)
Accounting expenses.
(c)
Premiums for insurance coverage on fund assets.
(d)
Reasonable and necessary counsel fees incurred for advice or
to defend the fund.
(e)
Legitimate travel and education expenses for officials of the
plan.
(5)
Council, in its fiduciary role, shall monitor the services provided
to the plan to ensure that the expenses are necessary, reasonable
and benefit the plan, provided that the administrator shall document
all such expenses item by item and, where necessary, hour by hour.
B.
Duties of the chief administrative officer.
(1)
The actuarial reports described above shall be prepared and filed
under the supervision of the chief administrative officer.
(2)
The chief administrative officer of the plan shall determine the
financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum obligation of the
City with respect to funding the plan for a given plan year.
(3)
The chief administrative officer shall submit the financial requirements
of the plan and the minimum obligation of the City to Council annually
and shall certify the accuracy of such calculations and their conformance
with Act 205.
C.
Modification of benefits. Prior to the adoption of any provision
that modifies a benefit provided hereunder, the chief administrative
officer shall provide to Council a cost estimate of the proposed modification.
Such estimate shall be prepared by an approved actuary, which estimate
shall disclose to Council the impact of the proposed modification
on the future financial requirements of the plan and the future minimum
obligation of the City with respect to the plan.
D.
Utilization of state aid. Payments of general municipal state aid
or any other amount of state aid received pursuant to Act 205 from
the Commonwealth of Pennsylvania which are received by the City and
deposited into the fund shall be used as follows:
F.
City contributions. The remainder of the annual contributions required
under the provisions of Act 205, as determined by the actuary to the
plan in accordance with Act 205, shall become the obligation of the
City and shall be paid into the fund by annual appropriations.
[1]
Editor's Note: See the Municipal Pension Plan Funding Standard
and Recovery Act, 53 P. S. § 895.101 et seq.
[Amended 8-18-2008 by Ord. No. 1765]
A.
LEASED EMPLOYEE
LIMITATION YEAR
Definitions. The following definitions apply for purposes of this
section only:
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.
The plan year.
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:
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:
(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.
A.
Amendment. Council may amend this plan at any time or from time to
time by ordinance or resolution, provided that:
(1)
No amendment shall deprive any participant or beneficiary, as applicable,
of any of the benefits to which he is entitled under this plan pursuant
to state law.
(2)
No amendment shall provide for the use of funds or assets held under
this plan other than for the benefit of eligible employees or alternate
payee, and no funds contributed to the plan or assets of the plan
shall, except as provided below, ever revert to or be used or enjoyed
by the City.
(3)
No amendment to the plan which provides for a modification of one
or more benefits shall be made unless an estimate of cost has been
prepared and presented to Council.
B.
Termination of the plan. Council shall have the power to terminate
this plan in its entirety at any time by an instrument in writing
executed in the name of the City.
C.
Automatic termination of contributions. Subject to the provisions
of Act 205 governing financially distressed municipalities, the liability
of the City to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the City, upon its adjudication
as a bankrupt or upon the making of a general assignment for the benefit
of its creditors.
D.
Distribution upon termination. All assets attributable to the terminated
plan shall be distributed and disposed of in accordance with the provisions
of applicable law and the terms of any instrument adopted by the City
which effects such termination.
E.
Residual assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the City
insofar as such return does not contravene any provision of law, and
any remaining balance in excess of employer contributions shall be
returned to the commonwealth.
F.
Exclusive benefit rule. In the event of the discontinuance and termination
of the plan as provided herein, the City shall dispose of the pension
fund in accordance with the terms of the plan and applicable law;
at no time prior to the satisfaction of all liabilities under the
plan shall any part of the corpus or income of the pension fund, after
deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
A.
Operation of the pension fund.
(1)
Council is hereby authorized to hold and supervise the investment
of the assets of the pension fund, subject to the provisions of the
laws of the Commonwealth of Pennsylvania and of this plan and any
amendment thereto. It is specifically envisioned that Council may
delegate certain of its powers to the Committee pursuant to the terms
and conditions described therein.
(2)
The pension fund shall be used to pay benefits as provided in the
plan and, to the extent not paid directly by the City, to pay the
expenses of administering the plan pursuant to authorization by the
City.
(3)
The City intends the plan to be permanent and for the exclusive benefit
of its employees. It expects to make the contributions to the pension
fund required under the plan. The City shall not be liable in any
manner for any insufficiency in the pension fund; benefits are payable
only from the pension fund, and only to the extent that there are
monies available therein.
(4)
The pension fund will consist of all funds held by the City under
the plan, including contributions made pursuant to the provisions
hereof and the investments, reinvestment and proceeds thereof. The
pension fund shall be held, managed and administered pursuant to the
terms of the plan. Except as otherwise expressly provided in the plan,
the City has exclusive authority and discretion to manage and control
the pension fund assets. The City may, however, appoint a trustee,
custodian and/or investment manager, at its sole discretion.
B.
Powers and duties of the City. With respect to the pension fund,
the City shall have the following powers, rights and duties, in addition
to those vested in it elsewhere in the plan or by law, unless such
duties are delegated.
(1)
To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), and shall include the right to hold
funds on a temporary basis in accounts or investments that do not
bear interest.
(2)
To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time permitted investments for fiduciaries
under the Pennsylvania Fiduciaries Investment Act, or as the same
may be subsequently modified or amended.
(3)
To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
(4)
To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)
To exercise all voting rights with respect to property held in the
fund and, in connection therewith, to grant proxies, discretionary
or otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this plan no matter where situated, including,
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
(8)
In addition to the foregoing powers, the City shall also have all
of the powers, rights and privileges conferred upon trustees by the
Pennsylvania Fiduciaries Investment Act, or as the same may be subsequently
modified or amended, and the power to do all acts, take all proceedings
and execute all rights and privileges, although not specifically mentioned
herein, as the City may deem necessary to administer the pension fund.
(9)
To maintain and invest the assets of this plan on a collective and
commingled basis with the assets of other pension plans maintained
by the City, provided that the assets of each respective plan shall
be accounted for and administered separately.
(10)
To invest the assets of the pension fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder, or to invest
in a group contract or other funding arrangement. In this connection,
the commingling of the assets of this plan with assets of other eligible,
participating plans through such a medium is hereby specifically authorized.
Any assets of the plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
plan, to the extent of the participation in such collective or commingled
trust fund by the plan.
(11)
To make any payment or distribution required or advisable to
carry out the provisions of the plan, provided that, if a trustee
is appointed by the City, such trustee shall make such distribution
only at the direction of the City.
(12)
To compromise, contest, arbitrate, enforce or abandon claims
and demands with respect to the plan.
(13)
To retain any funds or property subject to any dispute without
liability for the payment of interest thereon, and to decline to make
payment or delivery thereof until final adjudication is made by a
court of competent jurisdiction.
(14)
To pay, and to deduct from and charge against the pension fund,
any taxes which may be imposed thereon, whether with respect to the
income, property or transfer thereof, or upon or with respect to the
interest of any person therein, which the fund is required to pay;
to contest, in its discretion, the validity or amount of any tax,
assessment, claim or demand which may be levied or made against or
in respect of the pension fund, the income, property or transfer thereof,
or in any matter or thing connected therewith.
(15)
To appoint any persons or firms (including, but not limited
to, accountants, investment advisors, counsel, actuaries, physicians,
appraisers, consultants, professional plan administrators and other
specialists), or otherwise act to secure specialized advice or assistance,
as it deems necessary or desirable in connection with the management
of the fund, to the extent not prohibited by applicable law, the City
shall be entitled to rely conclusively upon and shall be fully protected
in any action or omission taken by it in good faith reliance upon
the advice or opinion of such persons or firms, provided such persons
or firms were prudently chosen by the City, taking into account the
interests of the participants and beneficiaries and with due regard
to the ability of the persons or firms to perform their assigned functions.
(16)
To retain the services of one or more persons or firms for the
management of (including the power to acquire and dispose of) all
or any part of the fund assets, provided that each of such persons
or firms is registered as an investment advisor under the Investment
Advisors Act of 1940, is a bank (as defined in that act), or is an
insurance company qualified to manage, acquire or dispose of pension
trust assets under the laws of more than one state; in such event,
the employer shall follow the directions of such investment manager
or managers with respect to the acquisition and disposition of fund
assets, but shall not be liable for the acts nor omissions of such
investment manager or managers, nor shall it be under any obligation
to review or otherwise manage any fund assets which are subject to
the management of such investment manager or managers.
(17)
If the City appoints a trustee, the trustee shall not be permitted
to retain such an investment manager except with the express written
consent of the City.
C.
Common investments. The City shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account, but may invest contributions and any
profits or gains therefrom in common investments.
D.
Compensation and expenses of appointed trustee. If a trustee is appointed,
the trustee shall be entitled to such reasonable compensation as shall
from time to time be agreed upon by the City and the trustee, unless
such compensation is prohibited by law. Such compensation, and all
expenses reasonably incurred by the trustee in carrying out his functions,
shall constitute a charge upon the City or the pension fund, which
may be executed at any time after 30 days written notice to the City.
The City shall be under no obligation to pay such costs and expenses,
and in the event of its failure to do so, the trustee shall be entitled
to pay the same or to reimburse himself for the payment thereof from
the pension fund.
E.
Periodic accounting. If a trustee is appointed, the pension fund
shall be evaluated annually or at more frequent intervals by the trustee
and a written accounting rendered as of each fiscal year end of the
fund, and as of the effective date of any removal or resignation of
the trustee, and such additional dates as requested by the City, showing
the condition of the fund and all receipts, disbursements and other
transactions effected by the trustee during the period covered by
the accounting, based on fair market values prevailing as of such
date.
F.
Value of the pension fund. All determinations as to the value of
the assets of the pension fund and as to the amount of the liabilities
thereof shall be made by the City or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the participants and beneficiaries and their estates. In making
any such determination, the City or trustee shall be entitled to seek
and rely upon the opinion of or any information furnished by brokers,
appraisers and other experts and shall also be entitled to rely upon
reports as to sales and quotations, both on security exchanges and
otherwise, as contained in newspapers and in financial publications.
A.
Plan not a contract of employment. No employee of the City, nor anyone
else, shall have any rights whatsoever against the City or the administrator
as a result of this plan, except those rights expressly granted to
them hereunder. Nothing herein shall be construed to give any employee
the right to remain an employee of the City.
B.
Gender and number. For purposes of the plan and wherever plainly
necessitated by the person or context, the masculine shall be read
for the feminine, and the singular shall be read for the plural.
C.
Expenses. To the extent permitted by state law, all expenses related
to the operation and administration of the fund and plan shall be
paid from the assets of the fund.
D.
Construction. The validity of the plan or any of its provisions shall
be determined and construed pursuant to the laws of the Commonwealth
of Pennsylvania, the federal government and the agencies thereof.
E.
Headings. The headings and subheadings employed within the current
document have been inserted for convenience of reference and are to
be ignored in the construction of the provisions hereof.
F.
Incapacity of participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of benefits hereunder, the administrator, upon the receipt
of satisfactory evidence that such participant is incapacitated to
the aforesaid extent and that another person or institution maintains
him, may provide for such payment of benefits hereunder to such person
or the institution maintaining him, and any such payments so made
shall be deemed for every purpose to have been made to such participant.
G.
Protective clause relative to administration. Subject to the provisions
of all laws applicable hereto, and unless otherwise specifically required,
no past, present or future officer of the City shall be personally
liable to any participant, beneficiary or other person under any provision
of the plan.
H.
Sole benefit. The income and principal of the plan are for the sole
use and benefit of the participants covered hereunder and, to the
extent permitted by law, shall be free, clear and not in any way liable
for debts, contracts or agreements and from all claims and liabilities
now or hereafter incurred by any participant, beneficiary or alternate
payee.
I.
Assignment. Except as provided in § 81-10J hereof, the pension payments herein provided for shall not be subject to attachment, execution, levy, garnishment or other legal process and shall be payable only to the former participant, his survivors or his designated beneficiary or alternate payee, and shall not be subject to assignment or transfer.
