[Added 7-16-2013 by Ord. No. 368]
Doylestown Township hereby establishes the Doylestown Township Nonuniformed Defined Contribution Pension Plan in the form of the ICMA Retirement Corporation Governmental Money Purchase Plan and Trust ("MPP01/01/06").
The effective date of the plan shall be January 1, 2012.
The normal retirement date shall be the first day of the month coincident with or next following the date in which the eligible employee attains 60 years of age.
The only group of employees eligible to participate in this plan are all nonuniformed full-time employees hired on or after January 1, 2012. An employee shall be eligible to participate at the completion of six months of full-time employment. Commencing after the completion of six months of full-time employment, employees shall begin to make contributions to the plan, and the Township's contribution shall be made in accordance with § 28-34 after the completion of six months of continuous service. Persons hired full-time on or after January 1, 2012, shall not be permitted to participate in the existing Township's Defined Benefit Pension Plan for nonuniformed employees.
[Amended 12-6-2016 by Ord. No. 379]
The Township shall contribute, on behalf of each participant, 5% of earnings for the plan year, subject to the eligibility requirements as set forth herein. Plan participants are required to contribute 5% of their earnings.
Earnings, as defined in the plan, shall include overtime and any bonuses paid to a participant.
[Amended 12-6-2016 by Ord. No. 379]
A participant is fully vested following the completion of five years of full-time employment with the Township. If a participant's employment by the Township terminates prior to becoming fully vested, the participant's own contribution shall be refunded to the participant, plus interest on said contributions. The Township's contributions and interest accrued on same shall be returned to the Township. If an employee leaves the employ of the Township after being fully vested but prior to attaining the age of 60 years, the employee shall have an option to withdraw his/her funds and be taxed accordingly or the employee may rollover his/her account balance into an individual retirement account or other appropriate account.
Loans are not permitted under the plan.
In-service distributions are not permitted under the plan even after a participant attains normal retirement age.
Upon attaining the age of 60 and being eligible to retire, the employee may select payment options then available from ICMA Retirement Corporation or available through a successor Plan Administrator.
The normal form of payment of benefits under the plan is a lump sum. Upon death, the surviving spouse is the beneficiary, unless he or she consents to the participant's naming another beneficiary.
The plan will provide for final pay contributions for accrued unpaid vacation and sick leave and the employer will contribute on behalf of the participant 5% of final pay to the plan, subject to the limitations as set forth in Article 5 of the plan. Each participant eligible to participate in the plan shall be given the opportunity to enroll at enrollment to irrevocably elect to contribute 5% of final pay to the plan. Once elected, a participant's election shall remain in force and may not be revised or revoked.
No contributions shall be made by a participant or be required to be made by the Township during periods when a participant is on an unpaid leave status such that the Township does not pay wages to the participant.
The Township herein appoints ICMA Retirement Corporation as the Plan Administrator pursuant to the terms and conditions of the ICMA Retirement Corporation Governmental Money Purchase Plan and Trust. By adoption of this article, the Township agrees to the provisions of the Plan and Trust. The Plan Administrator agrees to inform the Township of any amendments to the plan made pursuant to Section 14.05 of the plan or to the discontinuance or abandonment of the plan.
The Township Manager is authorized to complete the adoption agreement and execute any and all other documents as may be necessary to effectuate the intent of this article.