[Adopted 12-21-2009 by Ord. No. 1782]
A.Â
Effective January 1, 2010, 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 article shall continue to be known as the City of
Warren Firefighters Pension Plan (hereinafter referred to as the "plan").
B.Â
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.
C.Â
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.
D.Â
Each retired participant who was receiving monthly benefits on December
31, 2009, under the plan shall receive payments on or after January
1, 2010, in accordance with the terms of the plan as it existed on
the date that the retired participant terminated employment with the
City.
E.Â
Each terminated participant who terminated employment prior to January
1, 2010, with a vested interest in his accrued benefit under the 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 plan as it existed on the date
that the participant terminated employment with the City.
F.Â
The provisions of this plan shall apply only to any participant who
terminates employment on or after January 1, 2010.
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 (a x b) as such are defined in § 81-32B.
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 pursuant to any procedures as may be required
by the plan administrator.
The City of Warren, located in Warren County, Pennsylvania.
The amount of a participant's fixed monthly salary or fixed
wage paid, including longevity but excluding all back pay, overtime
and other compensation.
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 permanent and total physical or mental impairment
which prevents a person from engaging in gainful activity as a fireman
of the City. A participant must submit satisfactory evidence and other
proof of such disability as required by the administrator.
A regularly scheduled, full-time, permanent member of the
Fire Department who shall participate herein as of the date of his
appointment to such permanent position. Any fireman employed as a
temporary probationary, special, part-time, permanent part-time or
utility firefighter of the City shall not be considered an eligible
employee for purposes of this plan.
The spouse to whom a member is married.
The greater of the compensation of a participant averaged
over the sixty-month period of service which produces the highest
average monthly compensation or the participant's rate of compensation
at the date that the participant terminates employment, except for
the purpose of computing the disability benefit, for which the final
60 months of service shall be utilized.
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.
Participant(s) and former participant(s) who are entitled
to current or future benefits from the plan.
Other than incurring a disability, shall mean the date on
which a participant attains age 55 or completes 20 years of service,
whichever is later.
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 fire 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.
The number of full years of continuous service and fraction
thereof with the employer, as determined by the administrator, completed
by the employee from his first date of employment to the date of termination
of employment. Continuous service with the employer shall not be broken
in the event of:
Absence with the consent of the administrator during any period
not in excess of one year, except that the administrator may consent
to extend the period of leave.
Absence from work because of occupational injury or disease
incurred as a result of employment with the employer, for which absence
an employee shall be entitled to workers' compensation payments.
Absence in the service of the armed forces of the United States,
provided the employee shall reenter the employ of the employer within
the statutory period during which his right of reemployment is guaranteed
after he has first become eligible for discharge or separation from
active duty. In interpreting this subsection, the administrator will
apply uniform rules in a like manner to all employees under similar
circumstances.
An employee shall not receive any credit of service in the case
of any of the periods of absence set forth above but shall retain
credited service accrued prior to such absence. Upon return to employment
after an approved absence, the employee will again accrue credited
service.
Failure to return to the employ of the employer by the end of any period specified in the definition above shall be considered a termination of employment. Any other absence shall also be considered a termination of employment. Any employee whose employment has been terminated shall, for the purpose of this plan, be deemed a new employee upon resumption of his employment unless he is vested in accordance with § 81-32E hereof.
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.Â
Entitlement. A member must satisfy at least one of the following requirements to become entitled to the retirement benefit described in § 81-32B below:
(1)Â
Have reached normal retirement date (the date on which a participant
attains age 55 or completes 20 years of service, whichever is later)
on or before the date on which he became a former participant; or
(2)Â
Have completed at least 12 years of continuous 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 § 81-32E hereof.) Note that the failure to file an election to vest will result in a payment of member contributions and associated earnings pursuant to § 81-35C of this article.
B.Â
Retirement benefit. A former participant who satisfies the conditions
for entitlement described in the foregoing section shall be entitled
to a monthly amount payable beginning on normal retirement date and
continuing 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)
|
Where, with respect to said former participant:
| ||||
---|---|---|---|---|
a
|
=
|
50% of final average monthly compensation
| ||
b
|
=
|
the accrued benefit percentage
|
C.Â
(Reserved)
D.Â
Commencement. The retirement benefit of a former participant shall
become payable on the first day of the calendar month next following
the later of: 1) the date the former participant would reach his normal
retirement date if he continued to be an eligible employee until such
date; or 2) 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.
E.Â
Deferred vested benefit. A participant 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 § 81-35C hereof. Such a deferred vested benefit shall be in an amount equal to the Accrued benefit as of the date employment terminates as a firefighter 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 participant 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 firefighter for the City, a written notice of his intention to vest.
F.Â
Normal form of retirement benefit. A member's retirement benefit shall be payable in the form of a monthly life annuity commencing on his actual retirement date and ceasing with the last payment due immediately preceding his death. Any death benefit which may be payable is described in § 81-34 hereof.[1]
[1]
Editor’s Note: Former Subsections G through I, which
immediately followed this subsection, were repealed 5-18-2015 by Ord.
No. 1855. This ordinance also provided for the redesignation of former
Subsection J as Subsection G.
G.Â
Mandatory retirement. The mandatory retirement age for all participants,
with the exception of the Fire Chief, is age 62. The retirement date
of any participant (other than the Fire Chief) who attains age 62
shall not be later than the first day of the next calendar month following
the participant's 62nd birthday.
H.Â
Service increment. A member who shall become entitled to a normal
retirement pension shall also be entitled to the payment of a "service
increment" in accordance with and subject to the conditions hereinafter
set forth below:
[Added 5-18-2015 by Ord.
No. 1855]
(1)Â
The service increment shall be the sum obtained by computing the
number of whole years of service the member serves after having served
the 20 years of service, and multiplying said number of years of service
so computed by an amount equal to 1/40 of the pension the member is
entitled to receive. In computing the service increment, no employment
after the member has reached the age of 65 shall be included, and
no service increment shall be paid in excess of $250.
(2)Â
Each member shall pay an additional $2.50 per month member contribution for the service increment. No member contribution for the service increment shall be required after the member has reached age 65. Service increment contributions shall be paid at the same time and in the same manner as member contributions required under § 81-35A and may be withdrawn in full, without interest, by members who terminate service with the City without entitlement to a pension, subject to the same conditions which member contributions may be withdrawn, or by members who retire before becoming entitled to any service increment.
A.Â
Non-service-related disability benefit.
(1)Â
A disabled member not disabled in the line of duty and hired before
January 1, 2010, shall be entitled to receive a monthly benefit equal
to 30% of his final average monthly compensation at the time he was
determined to be disabled, which benefit shall be known hereinafter
as the "non-service-related disability benefit"; provided, however,
that where the disabled member has not served 60 months at the time
of disability the monthly payment under this disability pension shall
be equal to 30% of the final average monthly compensation of such
disabled member during the time he was a participant of the plan.
The non-service-related 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, recovery from
disability or the employee's normal retirement date. Upon the occurrence
of normal retirement date, the normal retirement benefit shall commence
on such date in the same amount as his disability benefit.
(2)Â
A disabled member who was disabled from a non-service-related cause
and who was hired on or after January 1, 2010, shall be entitled to
the above benefit only if he has accrued 10 years of service prior
to being determined to be disabled.
B.Â
Service-related disability benefit. A disabled member who becomes
disabled in the line of duty shall be entitled to a monthly benefit
equal to 50% of his final average monthly compensation at the time
he was determined to be disabled, which benefit shall be known hereinafter
as the "service-related disability benefit." The service-related 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, recovery from disability or the employee's
normal retirement date. Upon the occurrence of normal retirement date,
the normal retirement benefit shall commence on such date in the same
amount as his disability benefit.
C.Â
Termination of the disability benefit. The City may require proof
of continued disability coverage by requesting a reevaluation of the
employee's condition. The City shall pay the expenses to and from
the physician's office for any exam required by the City. Any conflict
in diagnosis between the City's physician and the member's physician
shall be submitted to an impartial physician. The impartial physician
shall be selected from a list of three physician specialists in the
field of the injury or disease involved supplied by the local medical
society. Each party shall alternately strike a name until one remains.
The firefighters shall strike the first name; the physician remaining
shall be the impartial physician. The decision of the impartial physician
shall be binding on both parties; exam costs of the impartial physician
shall be paid by the City. The employee has the right to request a
reevaluation of his condition 90 calendar days after said decision.
Cost of this reevaluation shall be at the employee's expense.
D.Â
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.
[Amended 5-18-2015 by Ord. No. 1855]
A.Â
Preretirement death benefits. Upon the death of a participant prior to his normal retirement date, a monthly benefit shall be payable to the participant's eligible spouse equal to one-half of the member's vested accrued benefit as of the date of his death. Such benefit shall be payable effective as of the first day of the month following the death of the participant, and each following month for the remaining life of the eligible spouse. Benefits shall not be payable under both this section and under Subsection B. (See Subsection C below.)
B.Â
Survivor benefit. The eligible spouse of a member who retires on pension or dies while in the service shall be eligible to receive the same monthly benefit that the member was receiving or was eligible to receive at the date of his death, for the remainder of her life. If no eligible spouse survives the member, or if the eligible spouse subsequently dies, the benefit shall be payable to the child or children, if any, of the member until attaining age 18. In the case of a member who dies while in the service prior to normal retirement date, the survivor benefit shall commence at the date that would have been the member's normal retirement date had they continued in employment until such date. Benefits shall not be payable under both this section and under Subsection A. (See Subsection C below.)
C.Â
Coordination with Subsections A and B. Under no circumstances shall a benefit be payable under both Subsections A and B above. Should a surviving spouse become entitled to a benefit under both sections, then such eligible spouse shall be provided the opportunity to elect either the benefit payable under Subsection A or the benefit payable under Subsection B. Such election shall be made in writing on a form acceptable to the Plan Administrator and shall be binding and irrevocable thereafter.
A.Â
Member contributions defined.
(1)Â
The term "member contribution" shall mean any amount deposited into
the plan by a member. In general, member's contribution shall be 5%
of the participant's compensation.
(2)Â
Effective upon passage of a resolution by Council, participant contributions
shall be paid or "picked up" by the City and thereafter treated as
employer contributions for federal income taxation purposes consistent
with Section 414(h)(2) of the Internal Revenue Code of 1986, as amended.
Affected participants shall not have the option of choosing to receive
the picked-up contributions directly in lieu of having them contributed
to the plan. Notwithstanding the foregoing, contributions so picked
up shall continue to be treated as mandatory employee contributions
for all purposes of state and local law in the same manner and to
the same extent as mandatory employee contributions made prior to
passage of the resolution, including, by way of illustration and not
limitation, being treated as part of the affected employee's compensation
for both Pennsylvania and local income tax law and for purposes of
computing any benefits under this plan.
B.Â
(Reserved)
C.Â
Withdrawal.
(1)Â
(2)Â
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)Â
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.
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.
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 a member of Council appointed by the Mayor for a
two-year term and during his or her tenure in office; the Fire Chief
and Finance Officer and the Manager; two members of the City of Warren
Fire Department, who shall be elected by a majority vote of all the
members of the City of Warren Fire Department to serve for a term
of two years from the date of his/her election; and one citizen of
the City of Warren, 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 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.
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.
A.Â
Authority and duties of the administrator.
(1)Â
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 "Firefighters Pension Fund Committee," and
"Council" hereof. The authority of the administrator shall include,
but shall not be limited to:
(a)Â
Construction of the plan;
(b)Â
Determination of all questions affecting the eligibility of
any employee of the City to participate herein;
(c)Â
Computation of the amount and the source of any benefit payable
hereunder to any member or beneficiary, as applicable;
(d)Â
Authorization of any and all disbursements of benefits;
(e)Â
Prescription of any procedure to be followed by any participant
or other person, as applicable, in filing any application or election
hereunder;
(f)Â
Preparation and distribution of information explaining the plan
as may be required by law or as the administrator deems appropriate;
(g)Â
Requisition of information necessary from the City or any participant
for the proper administration of the plan; and
(h)Â
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)Â
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.Â
Hold harmless. To the full extent permitted by law, no member of
the Committee, Council, the chief administrative officer, the administrator,
trustees of the City of Warren Firefighters Pension Plan, nor any
other municipal employee or elected or appointed official 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), the Committee, Council, the chief administrative officer,
the Trustees of the City of Warren Firefighters Pension Plan as well
as any other municipal employee, elected or appointed official involved
in the administration of the plan, from any and all liability and
expenses, including counsel fees, reasonably incurred in any action,
suit or proceeding to which they are or may be made a party by reason
of their service or duties on behalf of the plan, 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.
[Amended 5-20-2013 by Ord. No. 1827]
C.Â
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)Â
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)Â
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)Â
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)Â
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.
(5)Â
No decision hereunder is a final decision from which an appeal may
be taken under 2 Pa.C.S.A. § 752 until the entire appeal
procedure of this subsection of the article has been exhausted.
A.Â
Actuarial valuations.
(1)Â
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 article,
whereupon actuarial valuation reports must be made annually).
(2)Â
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)Â
Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in Act 205.
(4)Â
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by Act 205 or any other expenses
which are 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)Â
Investment costs associated with obtaining authorized investments
and investment management fees;
(b)Â
Accounting expenses;
(c)Â
Premiums for insurance coverage on fund assets;
(d)Â
Reasonable and necessary counsel fees incurred for advice or
to defend the fund; and
(e)Â
Legitimate travel and education expenses for officials of the
plan.
(5)Â
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; and provided, further, that the administrator
shall document all such expenses item by item and, where necessary,
hour by hour.
B.Â
Duties of the chief administrative officer.
(1)Â
The actuarial reports described above shall be prepared and filed
under the supervision of the chief administrative officer.
(2)Â
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. 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.Â
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.Â
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.Â
City contributions. The remainder of the annual contributions required
under 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.
A.Â
LEASED EMPLOYEE
LIMITATION YEAR
Definitions. The following definitions apply for purposes of this
article 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.Â
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.Â
Limit on compensation. Compensation is subject to the limitation
under Code Section 401(a)(17), which is $245,000 for the plan year
beginning in 2010. 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.Â
Maximum annual benefit.
(1)Â
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)Â
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, and shall remain effective through December 31, 2007. The "applicable
mortality table" and "applicable interest rate" after December 31,
2007, is found in Revenue Ruling 2007-67.
(3)Â
No reduction in accrued benefits. Notwithstanding the above, no change
in the limits under this article shall reduce the benefit of any participant.
(4)Â
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)Â
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)Â
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)Â
To the extent applicable, the above provisions and limitations shall
be subject to Code Section 415(b)(2)(G).
E.Â
Limit on annual additions.
(1)Â
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 allocated with methods permitted under Rev. Proc. 2008-50 (Rev.
Proc. 2006-27 prior to 2009) or its successor.
(2)Â
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)Â
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.
(4)Â
Code Section 415(c) compensation. For the purposes of this section,
"compensation" includes only those items specified in Treas. Reg.
§ 1.415(c)-2(b)(1) or (2) and excludes all items listed
in Treas. Reg. § 1.415(c)-2(c), the terms of which are specifically
incorporated herein by reference. Effective as of January 1, 2009,
to the extent required by the Heroes Earnings Assistance Tax Relief
Tax Act of 2008 (HEART Act), differential wage payments shall be included
in compensation.
[Amended 9-17-2012 by Ord. No. 1816; 10-19-2015 by Ord. No. 1862]
F.Â
Direct rollovers.
(1)Â
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)Â
For purposes of this section, the following definitions shall apply:
(a)Â
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)Â
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)Â
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)Â
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.Â
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.Â
Minimum required distributions.
(1)Â
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 [§§ 1.401(a)(9)-1
to 1.401(a)(9)-9] on or after January 1, 2003.
(2)Â
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 the calendar year in which the participant attains age
70Â 1/2 or 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)Â
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)Â
This section does not authorize the payment of any benefit in any
form not permitted under another provision of the plan.
I.Â
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.Â
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.Â
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.Â
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.
M.Â
Heroes Earnings Assistance Tax Relief Act of 2008 (HEART Act). Effective
for deaths occurring on or after January 1, 2007, if a participant
dies while performing qualified military service [as defined in IRC
§ 414(u)], the survivors of the participant are entitled
to any additional benefits (other than benefit accruals relating to
the period of qualified military service) provided under the plan
had the participant resumed and then terminated employment on account
of death.
[Amended 9-17-2012 by Ord. No. 1816]
A.Â
Amendment. Council may amend this plan at any time or from time to
time by ordinance or resolution, provided that:
(1)Â
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)Â
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
payees, 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; and
(3)Â
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
Operation of the pension fund.
(1)Â
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 article 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)Â
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)Â
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)Â
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, reinvestments 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.Â
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)Â
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)Â
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)Â
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)Â
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)Â
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)Â
To exercise all voting rights with respect to property held in the
fund and, in connection therewith, to grant proxies, discretionary
or otherwise.
(7)Â
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)Â
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)Â
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)Â
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)Â
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)Â
To compromise, contest, arbitrate, enforce or abandon claims
and demands with respect to the plan.
(13)Â
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)Â
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)Â
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)Â
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. 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.Â
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.Â
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 itself for the payment thereof from
the pension fund.
E.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
Assignment. Except as provided in § 81-39I 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.