[Ord. 966, 12/19/1989, § 1]
There is hereby established in the Borough a Pension Plan and Pension Fund for the benefit of full-time nonuniformed employees of the Borough. The Pension Plan shall be known as the "Borough of Mechanicsburg Nonuniformed Employees Pension Plan" (hereinafter "Plan"). The Pension Fund shall be known as the "Borough of Mechanicsburg Nonuniformed Employees Pension Fund" (hereinafter "Fund").
[Ord. No. 966, 12/19/1989, § 2; as amended by Ord. No. 1094, 5/20/2007, § 1; by Ord. No. 1144, 10/21/2014; and by Ord. No. 1163, 8/6/2019, § 1]
1. 
The Council is hereby authorized to enter into an agreement of trust with a corporate fiduciary, which agreement of trust shall permit the fiduciary to manage and operate the Fund and to receive, hold, invest and disburse any sum or sums as may be necessary to carry out the Plan. The Council shall determine the form and terms of any such agreement of trust.
2. 
Effective January 1, 2019, and continuing thereafter until terminated by the Council, the accompanying joinder[1] agreements and the terms of the Pennsylvania State Association of Boroughs Municipal Retirement Trust are adopted by the Borough, to be known as the Borough of Mechanicsburg Nonuniformed Employees' Pension Plan and the Borough of Mechanicsburg Nonuniformed Defined Contribution Pension Plan (the "Plans"), in the form attached hereto, except as provided herein. Hereafter, by resolution duly adopted, the Council may amend any provisions of the Trust or joinder agreements relating to the administration and management of the Plans. Modifications to the Plans relating to contributions, vesting, member and survivor benefits or other substantive matters shall be effected only upon amendment of this Part by ordinance duly enacted by Council.
[1]
Editor's Note: The joinder agreements are on file in the office of the Borough Secretary.
[Ord. 966, 12/19/1989, § 3; as amended by Ord. 1144, 10/21/2014]
1. 
The Borough of Mechanicsburg Nonuniformed Employees Pension Fund shall be created and maintained in the following manner:
A. 
All funds on deposit and held for the pension or retirement benefits of the Borough of Mechanicsburg nonuniformed employees shall be transferred to the Pension Fund created hereby subject to any liabilities which may exist against the Fund.
B. 
The allocation by the Council of payments made by the Treasurer of the Commonwealth from monies received from taxes paid upon premiums by foreign casualty insurance companies and foreign fire insurance companies pursuant to the General Municipal Pension System State Aid Program.
C. 
Payments made by other gifts, grants, devises, or bequests made to the Fund.
D. 
Such other payments as may, from time to time, be made by the Council to the Fund from the general revenue of the Borough.
E. 
Payments made by nonuniformed full-time Borough employees from their employee compensation.
2. 
All such payments received shall be deemed to be part of the Pension Fund and shall not be applied to any other account or disbursed in any manner except as provided herein.
3. 
Payments required under the Plan shall be a charge only upon the Borough of Mechanicsburg Nonuniformed Employees Pension Fund and not upon other monies or funds of the Borough.
[Ord. No. 966, 12/19/1989, § 4; as amended by Ord. No. 1094, 5/20/2007, § 2; Ord. No. 1163, 8/6/2019, § 2]
1. 
The Pension Fund shall be deposited with, managed and invested by a corporate trustee, designated by the Council, which shall carry out its responsibilities in accordance with the terms of the Trust Agreement and further subject to such investment policy and guidance as the Council shall, from time to time, give to the Trustee for the investment of the Pension Fund assets.
2. 
Effective January 1, 2019, and continuing thereafter until terminated by the Council, the Pension Fund shall be deposited with, managed and invested pursuant to the accompanying joinder agreements and the terms of the Pennsylvania State Association of Boroughs Municipal Retirement Trust. Hereafter, by resolution duly adopted, the Council may amend any provisions of the Trust or joinder agreements relating to the administration and management of the Plans. Modifications to the Plans relating to contributions, vesting, member and survivor benefits or other substantive matters shall be effected only upon amendment of this Part by ordinance duly enacted by Council.
[Ord. 966, 12/19/1989, § 5]
1. 
The Plan shall be administered by the Council.
2. 
The Borough Manager-Secretary shall keep minutes of the proceedings and all dates, records and documents pertaining to the administration of the Plan. The Council may employ and suitably compensate such actuarial and consulting services and advisory, clerical or other employees and attorneys as it may deem necessary for the performance of its duties. The expenses of the administration of the Plan shall be paid from the assets of the Fund.
3. 
The action of the Council shall be determined by the vote or other affirmative expression of a majority of its members.
4. 
The Council shall make available to participants of the Plan, for examination during business hours, such of its records as pertain only to the participant involved. The Council shall make its records available to proper governmental officials during business hours and members of the general public upon 24 hours' notice.
5. 
The Council, on behalf of the participants of the Plan, shall enforce the Plan in accordance with the terms of this Part and shall have all powers necessary to accomplish that purpose including, but not limited to, the following:
A. 
To determine all questions relating to the eligibility of employees of becoming participants;
B. 
To compute and certify to the fiduciary the amount and kind of benefits payable to participants;
C. 
To select any issuing company and annuity contract which, in the opinion of the Council, will best carry out the purposes of the Plan; and
D. 
To make and publish such rules and regulations for the administration of the Plan as are not inconsistent with the terms of this Part.
6. 
The Borough shall supply full and timely information to the Council on all matters relating to the pay of all members of the Borough of Mechanicsburg Nonuniformed Employees Pension Plan, their retirements, deaths or other causes for termination of employment and such other pertinent data as the Council may require, and the Council shall advise the fiduciary with reasonable dispatch of such of the foregoing facts as may be pertinent to the fiduciary's administration of the Fund.
[Ord. 966, 12/19/1989, § 6; as amended by Ord. 1096, 5/20/2007, § 1]
1. 
This agreement shall cover all full-time nonuniformed employees of the Borough of Mechanicsburg, hereinafter referred to as "member." Every full-time nonuniformed employee of the Borough shall be a member covered under this agreement and be entitled to the benefits provided hereunder as of the first day following the sixth month anniversary of continuous employment with the Borough.
2. 
Every member who has first met the coverage requirement of Subsection 1 of this section, who shall thereafter leave the service of the Borough and subsequently return to Borough service after such intervening time, shall be re-credited with the employee's prior service only if the employee repays any refund of contributions, plus interest, which the employee received prior to the employee's termination with the Borough.
[Ord. 966, 12/19/1989, § 7]
The normal retirement date of a member shall be the day on which the member has attained 62 years of age and has completed 10 years of service.
[Ord. 966, 12/19/1989, § 8]
The basic monthly pension benefit shall be 50% of the monthly average compensation of such member during the last 60 months of employment. Such monthly retirement benefit shall be payable during the lifetime of the retiring member, with payments guaranteed for the first 120 months. The retiring member may choose another actuarial equivalent form of payment at the date of retirement before payments commence.
[Ord. 966, 12/19/1989, § 9]
If a member continues to be employed by the Borough after his normal retirement date, his monthly pension benefit shall not commence until such member ceases to be employed by the Borough. The monthly pension benefit payable to a member who retires after his normal retirement date shall be equal to the greater of his benefit accrued to his late retirement date or the actuarial equivalent of the monthly pension benefit which he would have received had he retired on his normal retirement date.
[Ord. 966, 12/19/1989, § 10]
A member is eligible to receive an early retirement benefit after he has attained 55 years of age and has completed 10 years of service. The monthly pension benefit payable to a member upon such early retirement date shall be equal to such member's accrued benefit as of his early retirement date, actuarially reduced for each month that such member's early retirement date precedes his normal retirement date.
[Ord. 966, 12/19/1989, § 11]
Upon the death of a member who has been married for at least one year and who is eligible for early retirement at the time of death, the surviving spouse shall receive a monthly pension benefit which such member was eligible to receive if he had retired on the day of this death and had elected to receive his monthly pension benefit in a joint and 50% survivor optional form.
[Ord. 966, 12/19/1989, § 12]
If a member, before reaching his normal retirement date and after having completed three years of total service for any reason, ceases to be employed by the Borough as a nonuniformed employee, he shall be entitled to a deferred monthly pension benefit payable on his normal retirement date. The deferred monthly pension benefit shall be equal to such member's accrued benefit as of his date of termination multiplied by his vesting percentage based upon the number of years of service completed at this date of termination as follows:
Years of Service
Vesting Percentage
0 to 2 years
0%
3
10%
4
20%
5
30%
6
40%
7
50%
8
60%
9
70%
10
80%
11
90%
12 or more years
100%
Such member may elect to receive his vested deferred monthly pension benefit prior to his normal retirement date after he has met the eligibility requirements for early retirement. The monthly pension benefit payable to the member upon such early retirement date shall be equal to such member's vested accrued benefit as of his early retirement date, actuarially reduced for each month that such member's early retirement date precedes his normal retirement date.
[Ord. 966, 12/19/1989, § 13]
If the actuarial present value of a terminated member's vested accrued benefit does not exceed $3,500, such value shall automatically be paid to such member from the Fund in full satisfaction of all benefits such member is entitled to receive under the Plan.
[Ord. 966, 12/19/1989, § 14]
A member's accrued benefit determined as of any date prior to his normal retirement date shall be equal to 50% of the monthly average compensation of such member during the last 60 months of employment, multiplied by the percentage his years of service, including completed months, to the date of determination bear to years of service, including completed months, which he will have completed as of his normal retirement date assuming continued employment until his normal retirement date as a nonuniformed employee of the Borough of Mechanicsburg.
[Ord. 966, 12/19/1989, § 15]
All payments under the Plan shall be, to the fullest extent permitted by law, free and clear of any debts, contracts, engagements, anticipations or liability to levy, attachment, execution or sequestration against the recipient, and shall not be subject to sale, assignment, transfer, claim, judgment or bankruptcy proceedings against the recipient of such payments, whether voluntary or involuntary.
[Ord. No. 966, 12/19/1989, § 16; as amended by Ord. 1144, 10/21/2014]
All members of the Plan shall pay into the Fund monthly an amount of compensation as determined by annual resolution of Council.
[Ord. No. 966, 12/19/1989, § 17; as amended by Ord. 1144, 10/21/2014]
Council may, by ordinance or resolution, on an annual basis, establish, reduce or eliminate payments into the Fund by members.
[Ord. No. 966, 12/19/1989, § 18; as amended by Ord. 1144, 10/21/2014]
1. 
Upon termination of full-time employment before completion of vesting, a refund shall be made of any monies contributed by such full-time employee, with interest at the rate of 4% per annum.
2. 
The surviving beneficiary of a full-time employee who dies before his or her pension has vested shall be entitled to receive payment of all money which the member invested in the Fund, plus interest.
[Ord. No. 966, 12/19/1989, § 19; as amended by Ord. 1144, 10/21/2014]
Any member of the Plan shall have the right:
A. 
To inquire of the Council as to his or her status or condition in the Plan, including prospective benefits to which such member may be entitled in the future;
B. 
To examine records of the Council pertaining to his or her pension records; and
C. 
To appear personally before the Council with or without counsel and to be heard on any matter pertaining to his or her rights under the Plan.
[Added by Ord. 1144, 10/21/2014]
The Plan and Fund established by this Part may be discontinued, modified, alternated, terminated or repealed according to law, by ordinance or resolution.
[Added by Ord. 1144, 10/21/2014]
The provisions of the Part are severable, and if any of its provisions shall be held to be illegal, invalid or unconstitutional, the decision of the court so holding shall not affect or impair any of the remaining provisions of this Part. It is hereby declared to be the intent of the Borough Council of the Borough of Mechanicsburg that this Part would have been adopted if such illegal, invalid or unconstitutional provision or provisions had not been included herein.