[Adopted 8-20-2012 by Ord. No. 959]
The Board of Supervisors of the Borough of Perkasie is hereby
authorized to execute the Delaware Valley Workers' Compensation
Trust Agreement for the participation of the Borough of Perkasie in
the Delaware Valley Workers' Compensation Trust, which agreement
is attached hereto as Exhibit A and is on file for inspection and
review at the offices of the Borough of Perkasie, 620 W. Chestnut
Street, Perkasie, PA 18944. This agreement may be amended after the
enactment of this article to conform to any requirements imposed by
the Commonwealth of Pennsylvania and any of its agencies, including
the Department of Labor and Industry, Bureau of Workers' Compensation.
The participation of the Borough of Perkasie in the Delaware
Valley Workers' Compensation Trust is authorized for the purposes
of enabling the Borough of Perkasie to reduce the cost of workers'
compensation claims through its participation in a group self-insurance
fund.
The Commonwealth of Pennsylvania Department of Labor and Industry
Bureau of Workers' Compensation has approved the issuance of
a permit to the Delaware Valley Workers' Compensation Trust to
operate as a group self-insurance fund, subject to certain conditions.
As an approved self-insurance fund, the Delaware Valley Workers'
Compensation Trust will be responsible for the payment of workers'
compensation claims on behalf of all trust participants.
As set forth in the Delaware Valley Workers' Compensation
Trust Agreement, the following conditions, among others, apply to
the participation of the Borough of Perkasie in the Delaware Valley
Workers' Compensation Trust:
A.
That the trust shall consist of at least five homogeneous municipal
participants organized as local government agencies under Pennsylvania
law;
B.
That each participant satisfies all eligibility and admission requirements
for membership in the trust;
C.
That each participant pledges and agrees to appropriate funds to
pay all of its annual contributions and assessments which are required
for the creation of a fund maintained at a level sufficient to pay
all workers' compensation claims and related expenses incurred
by the trust participants;
D.
That each participant agrees to jointly and severally assume and
discharge the workers' compensation liabilities of each and every
other participant in accordance with the Delaware Valley Workers'
Compensation Trust Agreement when required to do so by the Department
of Labor and Industry Bureau of Workers' Compensation;
E.
That each participant will institute any and all safety regulations,
loss prevention measures or risk management procedures as may be required
for the purpose of minimizing or eliminating workplace risks to its
employees;
F.
That each participant cooperate fully with the trust's service
and fiscal agents, attorneys, claims adjusters and any agents or employees
of the trust with respect to the investigation, defense and settlement
of claims;
G.
That each participant designate a person to be responsible for all
contacts with the trust;
H.
That each participant provide any information to the Administrator
or Board of Trustees as may be required to effect the purposes and
objectives of the trust; and
I.
That each participant comply with all applicable statutes and regulations
governing the payment of workers' compensation claims, including,
but not limited to, the Pennsylvania Workers' Compensation Act
and any regulations promulgated thereunder.
The Borough of Perkasie agrees to participate in the Delaware
Valley Workers' Compensation Trust for a minimum period of two
years, subject to the terms and conditions of the Delaware Valley
Workers' Compensation Trust Agreement. After the expiration of
that minimum two-year period, each participant may withdraw under
the following conditions, subject to the right of arbitration as provided
in the Delaware Valley Workers' Compensation Trust Agreement:
A.
That an opinion is rendered by the trust-certified actuary that withdrawal
will not result in the number of participants falling below the minimum
required to assure the fiscal and actuarial soundness of the trust
itself;
B.
That the withdrawing participant is not then in default of its obligation
to pay premiums, contributions or assessments;
C.
That the withdrawing participant shall pay the full amount of a termination
contribution or any additional assessments as determined by the Board
of Trustees in accordance with the trust agreement and bylaws;
D.
That the Board of Trustees shall have received a certification from
the trust actuary that the withdrawal of the participant will not
impair the actuarial soundness of the trust and, if any municipal
debt has been incurred by the participants to finance any portion
of the trust reserves, an opinion is obtained from bond counsel that
such withdrawal will not adversely affect the tax-exempt status of
any interest paid and any debt incurred by the participants, or any
legal entity created for the purpose of incurring such debt. As used
herein, the term "debt" includes any municipal bonds, certificate,
letters of credit or other instruments of municipal indebtedness.
The organizational structure of the trust shall consist of a
Board of Trustees, an Administrator, a claims administrator/loss control
consultant and various service agents appointed by the Board of Trustees
in accordance with the Delaware Valley Workers' Compensation
Trust Agreement and any bylaws adopted pursuant thereto.
As set forth in the Delaware Valley Workers' Compensation
Trust Agreement, the funds required for the creation and operation
of the trust shall be provided by the participating municipalities
through annual appropriations.
The Delaware Valley Workers' Compensation Trust is empowered
to enter into contracts for policies of group insurance and employee
benefits, including social security, for any of its employees.
The participation of the Borough of Perkasie in the Delaware
Valley Workers' Compensation Trust will be effective by July
28, 2012, or thereafter, as approved by the trust Board.
All contributions and assessments paid by the Borough of Perkasie
shall be made with funds appropriated by the Borough of Perkasie for
that purpose.
As a condition of participating in the Delaware Valley Workers'
Compensation Trust, the Borough of Perkasie agrees to:
A.
Pay all annual contributions and assessments as may be required by
the Board of Trustees;
B.
Appoint a representative to sit on the Board of Trustees and designate
a contact person for the purpose of communicating with the trust or
its representatives;
C.
Not withdraw from the trust for a period of two years following its
admission to the trust, subject to the terms and conditions of the
Delaware Valley Workers' Compensation Trust Agreement;
D.
Withdraw from the trust only upon satisfaction of the conditions
set forth in the Delaware Valley Workers' Compensation Trust
Agreement;
E.
Perform all covenants contained in the Delaware Valley Workers'
Compensation Trust Agreement and delegate to the Board of Trustees
the powers and authorities enumerated in that agreement;
F.
Comply with all the conditions set forth in the Delaware Valley Workers'
Compensation Trust Agreement governing the handling and payment of
claims, including the defense and settlement thereof;
G.
Appropriate the funds needed to pay all contributions and assessments
as may be required by the Board of Trustees in accordance with the
Delaware Valley Workers' Compensation Trust agreement;
H.
Cooperate with the trust, its agents or employees and provide the
trust with all of the information it needs for the operation of the
trust, including any underwriting or claims data which it may be requested
by the Board of Trustees or its designee.
