[HISTORY: Adopted by the Board of Supervisors of the Township
of Warwick as indicated in article histories. Amendments noted where
applicable.]
[1]
Editor's Note: This ordinance also superseded former Art.
I, Nonuniformed Employees Pension Plan, adopted 6-17-1991 by Ord.
No. 91-6
As used in this article, the following terms shall have the
meanings indicated:
The actual base salary of a participant during a calendar
year. The term "salary," as used in this section, and in this pension
plan and trust, shall mean all compensation for which payroll deductions
have been required and withheld.
The average monthly salary of a participant during the last
36 months of employment.
Any person designated by a participant to receive any death
benefit upon the death of the participant.
The inability to substantially perform functions of employment
by reason of a physical or mental impairment which can be expected
to result in death or to be of long-continued and indefinite duration.
With mutual agreement of the participant and the Trustees, disability
shall be determined by a licensed physician. However, if either the
participant or the Trustees desire, disability shall be determined
by a majority of three licensed physicians, two selected by the participant
and the Trustees individually and one selected by their mutual agreement.
In addition to satisfying the above definition of total and permanent
disability, a participant must have completed 10 years of full-time
employment before such disablement in order to qualify for Disability
benefits. Disability benefits shall commence six months after the
date of disablement.
The first day of the month coincident with or next following
the 55th birthday or completion of 10 years of full-time employment,
whichever is later.
The nonuniformed defined benefit pension plan is effective
January 1, 1986. The defined contribution pension transition date
is September 9, 2013.
A permanent, full-time employee of Warwick Township who is
not a member of the police force.
"Full-time" for participants in the defined benefit pension
shall mean employees who have worked at least 1,000 hours of service
during a twelve-month period for defined benefit pension accrual purposes.
"Full-time" for participants in the defined contribution pension shall
mean employees who customarily work at least 35 hours per week.
The first day of the month coincident with or next following
the 65th birthday.
Any employee who has met the eligibility requirements to
participate in either the defined benefit or defined contribution
pension.
The Supervisors of Warwick Township for the time in office
at any time of reference.
Warwick Township, Bucks County, Commonwealth of Pennsylvania.
The Board of Supervisors of Warwick Township.
A.
Age and service.
[Amended 6-18-2018 by Ord. No.
2018-2]
(1)
For the defined benefit pension: Each full-time, permanent, nonuniformed
employee of the Township hired before September 9, 2013, shall become
eligible on the first day of the month after attaining age 21 and
completing one year of service, whichever is later.
(2)
For the defined contribution pension: Each full-time, permanent,
nonuniformed employee hired on or after September 9, 2013 shall become
eligible upon completion of six months of service.
(3)
Change in status: In the event a participant who remains in the service
of the Township ceases to be an employee eligible for participation
hereunder, no further benefit accruals shall occur until the participant
again qualifies under such participation requirements. Such a requalified
participant shall immediately commence accrual of additional benefits
hereunder upon becoming eligible to participate.
B.
Exclusions. Part-time, temporary or seasonal employees are not eligible
to participate in the plan.
A.
Normal retirement benefit. The monthly retirement benefit to which
a participant shall be entitled upon retirement at his/her normal
retirement date shall be an amount equal to 1.2% of the first $800
of the average monthly compensation plus 1.8% of any excess of the
average monthly compensation over $800, all multiplied by the years
and completed months of full-time employment as of the normal retirement
date.
B.
Early retirement benefit. The monthly retirement benefit to which a participant shall be entitled, upon retirement on or after his/her early retirement date, but before his/her normal retirement date, shall be computed by the benefit formula described in Subsection A above. Average monthly compensation and the period of full-time employment, however, shall be determined as of the actual retirement date. The amount of early retirement benefit thus determined shall be reduced by the appropriate factor of actuarial equivalency for each completed month by which such actual retirement date precedes the normal retirement date.
C.
Cost-of-living increase. For employees hired before January 1, 2012,
the plan hereby provides for a cost-of-living increase of participants
receiving retirement benefits. The cost-of-living increase shall be
at the rate of 2% per year. There shall be a maximum lifetime cost-of-living
increase of 30%. Employees hired after January 1, 2012, shall not
receive any cost-of-living increase from the plan.
A.
Disability benefit. The amount of disability benefit shall be the retirement benefit accrued through the date of disability, determined in accordance with the benefit formula described in § 23-3 and based on average monthly compensation and period of full-time employment as of the date of disablement, reduced by the full amount of workers' compensation benefits, if any. Disability benefits shall be payable until recovery or death. The Plan Administrator shall have the authority to require medical evidence of continuing total and permanent disability at his/her discretion from time to time. Payment of disability benefits is contingent upon continuing acceptability of medical evidence which is satisfactory to the Plan Administrator.
B.
Death benefit. If a vested participant dies before retirement, the
surviving spouse, or, in the absence of a surviving spouse, another
beneficiary, shall be entitled to receive an annuity equal to the
amount of benefit accrued at the participant's death. If a participant
dies after reaching the early retirement date, the surviving spouse
or other beneficiary shall receive payments equal to those that would
have been payable if the participant had retired with an immediate
joint and fifty-percent contingent annuity on the day before his/her
death. If a participant dies on or before the early retirement date,
the surviving spouse or other beneficiary shall receive payments equal
to those that would have been payable had the participant separated
from service on the date of death, survived to his early retirement
date, retired with an immediate joint and fifty-percent contingent
annuity at that age, and died on the day after the early retirement
date.
C.
Vesting.
(1)
If a Township employee's employment is terminated, or if he/she
ceases to be an employee, as defined above, before his/her normal
retirement date, he/she shall be vested in benefits accrued through
his/her termination date according to the following five-year Cliff
Schedule:
|
Completed Years of Service
|
Vesting Percentage
| |
|---|---|---|
|
Less than 5
|
0%
| |
|
5
|
100%
|
(2)
No payments shall be due to any person no longer a Township employee
until such time as the employee reaches his/her early or normal retirement
date.
B.
Optional forms of annuity. Instead of the retirement benefit payable
for life, the employee may elect to have the retirement benefit he/she
is entitled to receive in any of the following forms, whereby the
annual amount of retirement benefit so received shall be the actuarial
equivalent of the annual amount of the retirement benefit, payable
for life, as the employee is entitled to on his/her retirement date.
(1)
Life annuity with payments for 10 years certain. This form of retirement
benefit provides for monthly payments to be made for life, commencing
on the retirement date, but in the event of death of the annuitant
before 120 payments have been made, such payments shall be continued
to the beneficiary named by the annuitant until a total of 120 payments
have been made.
(2)
Joint and fifty-percent contingent annuity option. This form of retirement
benefit provides for monthly payments to be made commencing on the
retirement date, until the later of the death of the annuitant or
the death of the contingent annuitant specified by the participant.
If the annuitant is not living to receive the monthly payments, the
remaining payments will be made to the contingent annuitant, and the
amount of each monthly payment to the contingent annuitant shall be
50% of the amount of each monthly payment to the annuitant.
(a)
This annuity shall not take effect if the contingent annuitant
dies prior to the date on which payments are to commence to the annuitant.
However, the death of the contingent annuitant on or after such date
shall not affect the amount payable monthly to the annuitant.
(b)
The annual retirement benefit, in the case of any eligible employee who was married throughout the year preceding the annuity starting date, shall be in the form of a joint and fifty-percent contingent annuity, unless he/she has elected otherwise in writing as provided in Subsection B(2)(c) below. A spouse must sign off if other than a joint and survivor's annuity clause is chosen.
(c)
At least 90 days and no more than six months before an employee
shall reach the earliest date on which an eligible employee could
elect to receive retirement benefits as provided herein, the Plan
Administrator shall give such employee a written statement of his/her
approximate anticipated benefits if he/she should take early retirement
during the next year. If the employee is married, the statement shall
clearly explain the difference between the joint and fifty-percent
contingent annuity and other available annuities, both in terms of
the anticipated annuity amounts in each case, and that if he/she does
not elect otherwise prior to his/her retirement, his/her benefit will
be paid in the form of a joint and fifty-percent contingent annuity
if he/she has been married throughout the year preceding his/her retirement.
The employee shall have 90 days after the receipt of such statement
to file with the Plan Administrator, on a form provided by the Plan
Administrator, an election to take the single life annuity or the
life annuity with payments for 10 years certain or the joint and fifty-percent
contingent annuity.
C.
Actuarial equivalence. Actuarially equivalent annuity conversion
factors and early retirement reduction factors shall be derived based
on the 1971 Group Annuity Mortality Table with an assumed interest
rate of 8% per annum. Such conversion factors and reduction factors
shall be sex-neutral; participants and beneficiaries of the same age
shall be treated the same regardless of sex.
A.
Plan Administrator. The Township Nonuniformed Employees' Defined
Benefit Pension Fund shall be under the direction of the Board of
Supervisors of Warwick Township or such committee, persons, or corporate
trustee as the Board of Supervisors from time to time designates by
resolution, who shall be known as the Defined Benefit Pension Administrator,
and who shall act as Trustees of the Township Nonuniformed Employees'
Pension Fund, and such Trustees shall have full responsibility for
the administration of the plan established hereunder.
B.
Duties of Trustees. The Trustees shall hold, invest, reinvest and
distribute all funds or other property received pursuant hereto in
trust for the purposes of the plan. The Trustees may receive at any
time, and from time to time, gifts, grants, devises, or bequests to
the Township Nonuniformed employees' Pension Fund of any money
or property, real, personal or mixed, to be held by them in trust
for the benefit of this fund and in accordance with the provisions
hereof. The Trustees shall be subject to such rules and regulations
as may from time to time be adopted by the Board of Supervisors by
ordinance or resolution. The Trustees shall have full power and authority
by a majority action of its members, either directly or through their
designated representatives, to do all acts, execute, acknowledge and
deliver all instruments and to exercise for the sole benefit of the
participants hereunder any and all powers and/or discretions necessary
to implement and effectuate the purposes of the plan, including for
purposes of illustrations but not limited to any and all of the following:
(1)
To hold, invest and reinvest all funds received pursuant to the plan
in such investments as may be authorized as legal investments under
the laws of the Commonwealth of Pennsylvania;
(2)
To enter into contracts or deposit agreements on behalf of Warwick
Township with one or more insurance companies, in order to provide
the pension and other benefits herein set forth, and to pay the premiums
and deposits required by the purchase of said contract;
(3)
To retain or purchase as an investment any form of annuity or contracts
of similar nature, and to exercise with respect thereto any right
or incident of ownership;
(4)
To retain property which may, at any time, become an asset of the
fund, as long as said Trustees may deem it advisable; and
(5)
To make distribution of the monies in the fund, in accordance with
the terms of this plan.
C.
Expenses of administration. The expense of administrating the defined
benefit pension, including compensation of an actuary, any custodian
of the fund and any user charges or expenses related thereto, exclusive
of the payment pensions, may be paid by the Township by appropriations
made by the Board of Supervisors; from the assets of the Nonuniformed
Employees' Defined Benefit Pension Fund; or from state aid to
the pension plan, if any.
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 participant or his/her designated
beneficiary. No participant or his/her beneficiary shall have any
right to alienate, encumber or assign any assets of the fund held
by the Trustees on his/her behalf, or any of the benefits or payments
or proceeds of any contract or agreement purchased or acquired by
the Township hereunder. Any contract or agreement purchased or acquired
pursuant to this plan upon the life of such participant shall contain
a provision, in substance, that to the extent permitted by law, none
of the benefits or payments or proceeds of such contract or agreement
shall be subject to any legal process by any creditor or such participant
or beneficiary of such participant.
In the absence of an effective beneficiary designation, the
Plan Administrator shall first pay death benefits to the spouse of
an employee, if any, then to his/her children, if any, then to the
employee's estate.
A.
In the event that for any reason the benefits payable to any employee
under the defined benefit plan are determined by the Plan Administrator,
in his/her sole discretion, to be too small to feasibly provide the
normal or optional retirement benefits, then a lump sum distribution
calculated to be actuarially equivalent shall be made.
B.
Optional transfers.
(1)
In the event that any payment or payments to be made under the defined
benefit plan to a participant, a beneficiary who is the surviving
spouse of a participant, an alternate payee who is the former spouse
of a participant, or a beneficiary who is not an alternate payee or
the surviving spouse of a participant, would constitute an eligible
rollover distribution, the individual may request that such payment
or payments be transferred directly from the defined benefit plan
to the trustee of a) an individual retirement account described in
Section 408(a) of the Internal Revenue Code; b) an individual retirement
annuity described in Section 408(b) of the Code (other than an endowment
contract); c) an annuity plan described in Section 403(a) of the Code;
d) a qualified retirement plan, the terms of which permit the acceptance
of rollover distributions; or e) effective for distributions made
on or after January 1, 2002, 1) an eligible deferred compensation
plan described in Section 457(b) of the Code maintained by an eligible
employer described in Section 457(e)(1)(A) of the Code that separately
accounts for eligible rollover distributions; or 2) an annuity contract
described in Section 403(b) of the Code; provided, however, that i)
clauses c) and d) shall not apply to an eligible rollover distribution
made prior to January 1, 2002, to a beneficiary who is the surviving
spouse of a participant; ii) in the case of a distribution to a beneficiary
who is not the surviving spouse or an alternate payee who is the former
spouse of a participant, only clauses a) and b) shall apply; and iii)
effective January 1, 2009, a plan described in clause a) shall include
a Roth IRA described in Section 408(A) of the Code. Any such request
shall be made in writing, on the form prescribed by the Trustees for
such purpose, at such time in advance as the Trustees may specify.
Notwithstanding the foregoing, any eligible rollover distribution
in excess of $1,000 made after final regulations are issued by the
Department of Labor with respect to Section 401(a)(31)(B) of the Code
shall be transferred directly to the individual retirement plan of
a designated trustee or insurer, unless the participant elects to
receive such distribution.
(2)
For purposes of this section, "eligible rollover distribution" shall
mean a distribution from the defined benefit plan, excluding a) any
distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) over the life (or life
expectancy) of the individual, the lives (or life expectancies) of
the individual and the individual's designated beneficiary, or
a specified period of 10 or more years; b) any distribution to the
extent such distribution is required under Section 401(a)(9) of the
Internal Revenue Code; and c) any distribution to the extent such
distribution is not included in gross income. Notwithstanding the
foregoing, clause c) of the preceding sentence shall not apply to
a distribution that is made on or after January 1, 2002, and rolled
over to an eligible retirement plan described in clause a) or b) of
the preceding subsection or a qualified defined contribution plan
or, effective January 1, 2007, an annuity contract described in Section
403(b) of the Code or a qualified defined benefit plan that will separately
account for the portion of the distribution that is included in gross
income.
This plan shall be self-insured and self-administered by the
Trustees.
Under no circumstances, prior to the satisfaction of all liabilities
with respect to participants and their beneficiaries under the defined
benefit plan, shall any part of the assets of the trust be used or
diverted to any purpose other than the exclusive benefit of defined
benefit plan participants or their beneficiaries.
A.
Notwithstanding the above, annual compensation taken into account
in determining final average monthly compensation shall not exceed
$450,000 (or, effective January 1, 2002, $200,000), as adjusted in
accordance with Internal Revenue Code Section 401(a)(17)(B) [the "Section
401(a)(17) compensation limit"]. Except as provided below, the Section
401(a)(17) compensation limit in effect for a calendar year applies
to any period, not exceeding 12 months, over which compensation is
determined ("determination period") and which begins in such calendar
year.
B.
If a determination period consists of fewer than 12 months, the Section
401(a)(17) compensation limit will be multiplied by a fraction, the
numerator of which is the number of months in the determination period,
and the denominator of which is 12. In determining compensation for
purposes of applying the Section 401(a)(17) compensation limit for
plan years beginning before January 1, 1997, the family aggregation
rules of Section 401(a)(17) of the Internal Revenue Code shall apply.
C.
Effective January 1, 2002, for purposes of determining the final
average compensation of a participant who completes an hour of service
on or after January 1, 2002, the Section 401(a)(17) compensation limit
for any determination period beginning before January 1, 2002, shall
be the Section 401(a)(17) compensation limit for the 2002 calendar
year.
A.
General limitation.
(1)
Except as provided to the contrary in Subsections B and C of this section, the annual retirement benefit attributable to employer contributions accrued by, or payable to, any participant will not exceed the dollar limitation in effect for the limitation year under Internal Revenue Code Section 415(b)(1)(A), as adjusted pursuant to Section 415(d) of the Code, in the form of a qualified joint and survivor annuity or a single life annuity, the reduced actuarial equivalent of such dollar limitation (as adjusted) per annum annuity in the form of a single life annuity. The dollar limitation (as adjusted) described in the preceding sentence will be increased using an interest rate of 5% per year and the mortality table described in Section 417(e)(3) of the Code. If a participant's benefits are payable in a form subject to Section 417(e)(3) of the Code, such benefits will be adjusted, for purposes of applying the limitations under this section, to their actuarial equivalent in the form of a single life annuity, using the mortality table described in Section 417(e)(3)(B) of the Code and 1) for plan years prior to 2004, the interest rate set forth in Section 417(e)(3)(C) of the Code; 2) for the 2004 and 2005 plan years, the greater of A) the interest rate set forth in Section 417(e)(3)(C) of the Code; or B) 5.5%; and 3) for plan years beginning after 2005, the greatest of A) the interest rate set forth in Section 417(e)(3)(C) of the Code; B) 5.5%; or C) the interest rate that provides a benefit of not more than 105% of the benefit that would be provided if the interest rate set forth in Section 417(e)(3)(C) of the Code was used.
(2)
For purposes of this section: A) the increase in dollar limitation
described under Internal Revenue Code Section 415(b)(1)(A) that is
effective January 1, 2002, will only apply to an employee who completes
an hour of service on or after January 1, 2002; B) "compensation"
has the meaning given to such term in Treas. Reg. § 1.415(c)-2(b)
and (c), plus compensation, if any, credited to the participant pursuant
to Section 414(u)(7) of the Code and, effective January 1, 2009, differential
wage payments described in Section 3401(h) of the Code, subject to
the applicable annual compensation limit under Section 401(a)(17)
of the Code for the plan year; and c) the limitations of Section 415
of the Code shall be adjusted automatically each January 1 for increases
in cost of living under Section 415(d); provided, however, that such
adjustments shall not apply to any employee who does not complete
an hour of service on or after such January 1.
B.
Exceptions to the general limitation. No benefit will be deemed in violation of the limitation expressed in Subsection A if the amount of the benefit does not exceed $10,000 for the current plan year or any prior plan year, and the employer has not at any time maintained a defined contribution plan in which the participant participated.
C.
Short service limitation. In the case of a participant who has less than 10 years of credited service, the limitation set forth in Subsection A will be reduced by multiplying it by a fraction, the numerator of which is the number of a participant's years of credited service (or parts thereof), and the denominator of which is 10. The limitation described in the preceding sentence will be applied separately with respect to each change in the benefit structure, to the extent required by the Secretary of the Treasury. In the case of a participant who has less than 10 years of vesting service, the limitation set forth in Subsection B will be reduced by multiplying it by a fraction, the numerator of which is the number of the participant's years of vesting service (or parts thereof) and the denominator of which is 10. This Subsection C shall not apply to disability benefits or death benefits.
D.
Coordination with Section 415 of the Internal Revenue Code. The provision
of this section shall be interpreted and implemented in accordance
with Section 415 of the Code and all rulings, notices and regulations
issued thereunder.
Pennsylvania law shall govern the construction, validity and
administration of this plan and trust agreement. Should any section
or any provision of either plan be declared by a court of competent
jurisdiction to be invalid, such invalidity shall not affect the plan
as a whole or any other part thereof.
A.
ACCOUNT
ADMINISTRATOR
AGE
ANNIVERSARY DATE
BENEFICIARY
(1)
(2)
BOARD
COMPENSATION
DEFINED CONTRIBUTION PENSION
EFFECTIVE DATE
FUND
NORMAL RETIREMENT DATE
PARTICIPANT
PARTICIPANT ACCOUNT
PAY PERIOD
PLAN YEAR
PTO
ROLLOVER ACCOUNT
TOWNSHIP
TRUST AGREEMENT
TRUSTEE
VALUATION DATE
Definitions. The following words and phrases, when used in connection
with the defined contribution pension, shall have, unless the context
clearly indicates otherwise, the meaning given to them in this section.
The entire interest of a participant in the defined contribution
pension.
The person, entity, or committee named as such by the Board
of Supervisors, or, in the absence of any such appointment, the Board
of Supervisors.
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
As to any participant who is married at the time of his/her death, the participant's spouse, except as provided in Subsection (2) of this definition;
As to any participant who 1) is not married at the time of his/her
death; or 2) is married, but the participant has completed a designation
of beneficiary form designating someone other than his/her spouse,
the persons or entities designated by the participant in writing to
be his/her beneficiaries hereunder.
The Board of Supervisors of Warwick Township, Bucks County,
Pennsylvania.
The participant's gross pay before any payroll deductions.
Compensation shall exclude any amounts paid after termination of employment.
The money purchase pension plan for the nonuniformed employees
of Warwick Township as herein set forth and as the same may hereinafter
be amended. This pension plan is intended to satisfy the requirements
of Section 401(a) of the Internal Revenue Code as a governmental money
purchase plan.
This article shall be effective five days after enactment.
All money, property, and investments held and invested in
the name of the defined contribution pension.
Upon retirement, participants may withdrawal funds at 59 1/2
years of age and must begin withdrawals by age 70 1/2.
Any employee who has satisfied the eligibility requirements
established in the defined contribution pension and who has been admitted
to participation in the defined contribution pension. The term "participant"
shall include active participants (those who are currently eligible
to share in employer contributions to the pension) and retired participants
(those former employees presently receiving benefits under the plan
or immediately entitled to receive such benefits).
Each participant's individual account maintained within
the fund to include the share of investment earnings or losses.
The period of time at the end of which an employee is compensated
for his/her services to the Township.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
Paid time off.
The distribution amount transferred to the plan by a participant
from a qualified pension or profit-sharing plan.
Warwick Township, Bucks County, Pennsylvania.
The contract between the Township and the Trustee establishing
the terms by which and under which the Fund is invested, distributed,
accounted for and terminated, as the same now exists and as it may
hereafter be amended.
The Board of Supervisors of Warwick Township or any other
agency or person appointed by the Board to serve in that capacity
as set forth in the trust agreement.
The last day of the plan year and each other interim date
during the plan year on which a valuation of the fund is made.
B.
Eligibility.
(1)
Any full-time (works 35 hours a week or more), permanent, nonuniformed
employees of the Township hired before November 1, 2013, may opt to
transfer into the defined contribution pension.
(2)
Each full-time, permanent, nonuniformed employee hired on or
after November 1, 2013, shall become eligible upon completion of six
months of service and attaining age 21.
(3)
Change in status. In the event that a participant who remains
in the service of the Township ceases to be an employee eligible for
participation hereunder, no further benefit accruals shall occur until
the participant again qualifies under such participation requirements.
Such a requalified participant shall immediately commence accrual
of additional benefits hereunder upon becoming eligible to participate.
(4)
Exclusions. Part-time, temporary or seasonal employees are not
eligible to participate in the plan.
C.
Contributions.
(1)
Township contributions. The Township shall contribute, on behalf
of each participant employed on the last day of a pay period, an amount
equal to 6% of the participant's gross compensation for that
pay period. Should the Township, for any reason, fail to make a contribution
as provided for herein, then such deficiency shall be made up in the
pay period immediately following. Township contributions shall be
made only on gross earned salary for time actually worked or PTO taken
while actively employed.
(2)
Participant contributions. Participants may make voluntary contributions
to the plan. Maximum employee contributions shall be governed by federal
and state laws and regulations. Employee contributions shall be made
by payroll deduction based on an election in writing by the participant
based on notice and procedures established by the Township.
(3)
Rollovers and transfers. The Trustee may receive on behalf of
a participant all or part of the entire amount of any distribution
from a qualified plan that is eligible for rollover in accordance
with requirements of Internal Revenue Code Sections 401(a), 402(c),
403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), or 457(16). Employees voluntarily
opting to transfer into the defined contribution pension from the
defined benefit pension will have their present value of accumulated
benefit transferred into the defined contribution pension. This amount
will be calculated using the actuarial equivalence as defined under
the defined benefit plan provisions, except the required interest
rate should be 7%. If employees transition into the defined contribution
plan, they will no longer accrue benefits under the defined benefit
plan after the date of transfer.
(4)
State aid. The portion of the payments made by the State Treasurer to the Township and designated by the Board to be allocated to the Nonuniformed employee's Pension Fund from money received from taxes paid upon premiums by foreign casualty insurance companies may be used to reduce or eliminate the Township's contributions pursuant to § 23-11.4C(1) hereof and offset the payment of any administrative expenses.
(5)
Forfeiture. Forfeitures will remain assets of the trust and,
at the Township's discretion, shall be applied to the Township's
costs (contribution and/or expenses) or reallocated to the participant
accounts in the proportion that an individual participant's account
balance (excluding rollover account balances) bears to the total of
all participant accounts.
(6)
Accounting and allocations.
(a)
The Administrator shall establish and maintain an account in
the name of each participant to which the Administrator shall credit
all amounts allocated to each such participant as hereinafter set
forth.
(b)
The Township shall provide the Administrator with all information
required by the Administrator to make a proper allocation of the Township's
contribution for each plan year.
(7)
Investment direction by participants.
(a)
Rights of participants. To the extent that the Plan Administrator
has established investment categories for participant investment direction,
each participant shall have the right and responsibility to designate
the investment category or categories in which the defined contribution
pension is to invest amounts allocated to such participant's
account from contributions made by the Township.
(b)
Changes in investment direction. Any designation of investment
categories by a participant shall be made in the manner prescribed
by the Administrator and shall be made at such reasonable times as
shall be determined by the Administrator.
(c)
Available investment categories. There shall be offered such
investment categories as shall be determined in accordance with uniform
nondiscriminatory rules prescribed by the Administrator from time
to time.
(d)
Limitations on division of investments. Any participant may
elect as to the allocation among investment categories for the investment
of future contributions in such percentages and at such time as shall
be determined in accordance with uniform nondiscriminatory rules prescribed
by the Administrator.
(e)
Failure to elect investment categories. In the absence of written
designation of investment category preference, the Administrator shall
invest all funds received on account of any participant in the investment
category selected by the Administrator. Any designation of investment
category by any participant shall, on its effective date, cancel any
prior designation by the participant with respect to investment of
future contributions.
(f)
Annuity contract or trust. Notwithstanding any instruction from
any participant, the terms of any applicable annuity or trust agreement
shall control investment of fund assets.
(g)
Participants shall be directly responsible for investment of
100% of their investment choices and associated fees. Participant
will have direct access to their accounts.
(8)
Vesting: full and immediate vested interests. All participants
shall at all times be fully vested in their respective Township and
participant contributions and rollover amounts.
D.
Retirement benefits. Payout of proceeds of each participant's
account shall be in accordance with federal law and the requirements
of the defined contribution pension documents, as may be adopted and
amended from time to time by the Township.
E.
Death benefits.
(1)
Death prior to retirement. If a participant dies prior to the
commencement of pension benefits, his/her designated beneficiary shall
be entitled to the participant's account determined pursuant
to this article and the defined contribution pension documents, as
valued at the time of death. If no such beneficiary survives, the
amount will be paid to the participant's estate.
F.
Method of distribution of benefits. Participants' distribution
of benefits shall be subject to the state and federal laws of the
401(a) plan; however, all retirement distribution will be self-directed
by the retired participant.
G.
Termination of employment.
(1)
Distribution. As of a participant's termination of employment,
he or she may continue to maintain the 401(a) account with no further
Township contributions or roll over the plan to another qualified
retirement plan. The last Township payment into the plan will not
reflect contributions on additional PTO buyback or severance payments
paid at the time of termination of employment or retirement.
(2)
Reemployment rights. If the terminated participant is rehired
by the Township and reenrolls in the plan within 12 consecutive months
of termination, he or she shall continue to participate in the plan
as if such termination had not occurred, provided that the Township
shall not make contributions for the period in which the participant
is not employed by the Township.
H.
Management of fund.
(1)
It is the duty of the Administrator to pay the benefits to participants
and their beneficiaries.
(2)
The Administrator shall make an annual determination of the
fair market value of the fund as of the anniversary date and as of
such additional dates as the Board may direct. The fair market value
of the fund shall be reported to the members at least annually.
I.
Powers and duties of Board.
(1)
The plan shall be administered by the Board or a designee of
the Board. The Board or its designee shall make and adopt rules and
regulations for the efficient administration of the plan.
(2)
The Board or its designated Administrator shall keep all data,
records and documents pertaining to the administration of the plan
and shall execute all documents necessary to carry out the provisions
of the plan, and shall provide all such data, records and documents
to any professional whose services are employed pursuant to this pension.
(3)
The Board or its designated Administrator shall construe the
defined contribution pension, shall determine any questions of fact
arising under the pension and shall make all decisions required of
it under the plan and its construction thereof; any decisions and
actions taken thereon in good faith shall be final and conclusive.
It may correct any defect or supply any omission or reconcile any
inconsistency in such manner to such extent as it shall deem expedient
to carry the plan into effect, and it shall be the sole judge of such
expediency. The Board shall act uniformly with respect to matters
coming before it concerning employees and participants in similar
circumstances.
(4)
The participants of the Board, and each of them, shall be free
of all liability for any act or omission except by willful misconduct
or gross negligence, and each of them shall be fully indemnified by
the Township against all judgments not involving findings of their
respective personal or collective willful misconduct or gross negligence
and against all costs, including counsel fees incurred in defense
of actions brought against them.
(5)
The Board or its designated Administrator shall make available
to participants, retired participants and terminated participants
and to their beneficiaries, for examination during business hours,
such records as pertain to the person examining.
(6)
To enable the Board or its Administrator to perform its functions,
the Township shall supply full and timely information to it on all
matters relating to the pay of all participants, their retirement,
death, termination of employment and such other pertinent facts as
the Board may require.
(7)
The Board shall enact such rules and regulations for the conduct
of its business and for the administration of the defined contribution
pension as it may consider desirable, provided the same shall not
be in conflict with any of the provisions of the defined contribution
pension. All actions of the Board shall be taken at meetings at which
at least two participants shall be present, or by written resolution
and any resolutions concurred upon by not less than two of its participants
shall be the action of the entire Board. Written minutes shall be
kept of the meetings and actions of the Board.
(8)
The Chair and Manager, acting on behalf of the Board, shall
have the power to execute all documents necessary to carry out the
actions of the Board, and any person, partnership, corporation or
government agency shall accept such documents over such signature
or signatures as if executed by the Board.
J.
Provisions relating to Township.
(1)
It is the expectation of the Township that it will continue
this defined contribution pension indefinitely and will from time
to time contribute to the fund such amounts as may be needed to provide
the benefits set forth in this chapter, but continuance of the defined
contribution pension is not assumed as an obligation of the Township,
and the right is reserved by the Township at any time to reduce, suspend
or discontinue its contributions hereunder.
(2)
The Township assumes no obligation or responsibility with respect
to the operation of the defined contribution pension and does not
guarantee the payment of the benefits provided for participants of
the defined contribution pension. The Township shall have no liability
with respect to the administration of the fund, and payments made
under the provisions of any ordinance establishing, amending, or maintaining
the defined contribution pension shall not be a charge on any other
fund in the treasury of the Township or under its control.
(3)
Nothing contained in the defined contribution pension shall
be held or construed as a contract or guarantee of employment or to
create any liability upon the Township to retain any person in its
service. The Township reserves the full right to discontinue the service
of any person without any liability, except for salary or wages that
may be due and unpaid, whenever in its judgment its best interests
so require, and such discontinuance shall be without regard to this
defined contribution pension.
K.
Termination or amendment of plan.
(1)
The Township may amend, curtail or terminate this defined contribution
pension at any time; provided, however, that no amendment affecting
the Administrator or Trustee shall be made without its consent (other
than an amendment having the effect of termination of the defined
contribution pension); nor shall any amendment be made which will
in any manner divert any part of the fund to any purpose other than
the exclusive benefit of participants or their beneficiaries (except
upon termination, such diversion may be made after all of the fixed
and contingent liabilities to participants and their beneficiaries
have been met); nor shall any amendment be made at any time which
will in any manner divest any benefit then vested in a participant.
(2)
In the event of termination of this defined contribution pension,
the Board shall allocate the assets then remaining in the fund, to
the extent that such assets are sufficient, to participants and retired
participants in an amount equal to their respective participant account
balance, reduced in the cases of retired participants by any prior
distributions made to them.
(3)
After allocation of the funds, the Board shall determine whether
to operate the fund as the source of whatever payments the money so
allocated will provide.
L.
Miscellaneous provisions.
(1)
No benefit under this defined contribution pension shall be
subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge or encumbrance, nor to seizure, attachment or other
legal process for the debts of any participants or participant's
beneficiaries.
(2)
Any person dealing with the Trustee may rely upon a copy of
this defined contribution pension plan and any amendments thereto
certified to be a true and correct copy by the Administrator or Trustee.
(3)
Anything heretofore contained in the defined contribution pension
plan to the contrary notwithstanding, it is the intention of the Township
that any action herein provided to be taken by the Administrator or
Trustee shall be taken only in accordance with written instructions
of the Board, given in such detail as to preclude the exercise by
the Trustee of discretion in the performance thereof.
(4)
Under no circumstances, whether upon amendment or termination
of this defined contribution pension or otherwise, shall any part
of the fund be used for or diverted to any purpose other than the
exclusive benefit of participants or their beneficiaries until all
of the actuarial obligations to such participants or participant's
beneficiaries have been met.
(5)
If the Board deems any person incapable of receiving benefits
to which he/she is entitled by reason of minority, illness, infirmity,
or other incapacity, it may direct the Administrator or Trustee to
make payment directly for the benefit of such person to the guardian
or trustee of such person, whose receipt shall be a complete acquittance
therefor. Such payment shall, to the extent therefor, discharge all
liability of the Township, the Trustee and the fund.
(6)
Should any provision of this defined contribution pension be
determined to be void by any court, the defined contribution pension
will continue to operate and, to the extent necessary, will be deemed
not to include the provision determined to be void.
(7)
Headings and captions provided herein are for convenience only
and shall not be deemed part of the defined contribution pension plan.
(8)
This defined contribution pension shall be construed and applied
under the laws of the Commonwealth of Pennsylvania where not in conflict
with federal laws, which shall prevail.
(9)
All ordinances or resolutions, or portions thereof, inconsistent
herewith are hereby repealed.
[Adopted 3-4-2002 by Ord. No. 2002-2; amended in its entirety 1-18-2016 by Ord. No.
2016-1]
A.
AGE
ATTENDING COLLEGE
BENEFICIARY
COMPENSATION
DROP ACCOUNT
DROP PROGRAM
EMPLOYEE
ENTRY DATE
FUND
FUND/TRUST FUND
INSURED
INSURER
LATE RETIREMENT DATE
MEMBER
NORMAL RETIREMENT DATE
PARTICIPANT
POLICY
VALUATION DATE
Definitions. The following words and phrases as used in the article
shall have the following meaning, unless a different meaning is clearly
required by the context:
Age at the nearest birthday.
Eligible children who are registered at an accredited institution
of higher learning and are carrying a minimum course load of seven
credit hours per semester.
Any person, estate, or trust entitled to receive any payments
on the death of a participant.
The basic monthly compensation paid to an employee, including bonuses, overtime pay and other forms of additional compensation averaged over his/her actual service before his/her actual retirement date, but not over any period prior to the time during which benefits are calculated in § 23-15 of this article. Bonuses, overtime pay and other forms of additional compensation shall be included in the computation of average compensation for the purpose of determining the retirement or disability benefit. Overtime pay, bonuses, and other forms of additional compensation earned in periods of time other than the period of time during which benefits are calculated, but paid in the period of time during which pension benefits are calculated, or paid immediately after retirement shall not be included in the computation of average compensation for retirement or disability benefits.
A separate account created to accept DROP participants'
monthly pension checks during the period that an employee is participating
in the DROP program.
Deferred Retirement Option Program.
A person actively engaged by the Township as a police officer
on a regular full-time permanent basis.
January 1 and each anniversary thereof.
The Warwick Township Police Pension Fund as amended from
time to time.
All cash, investments, and other properties held and owned
by the Trustee hereunder.
A person on whose life a policy has been issued under the
plan.
A legal reserve life insurance company which may issue a
policy under this plan.
A member may elect in writing to defer his/her retirement
date. His/her late retirement date shall be the first day of any calendar
month following his/her normal retirement date on which he actually
retires from active service.
An employee eligible to participate in the benefits provided
hereunder whose pension has not yet commenced.
The first day of the calendar month coincident with or next
following attainment of age 55 and completion of 25 years of service
with the Township.
Any employee who is eligible and who has completed the requirements
for participation as provided for under this plan.
A life insurance and/or annuity contract issued by an insurer.
January 1 of each year.
B.
Word usage.
(1)
Plurals and genders. Whenever appropriate, words used herein in the
singular may include the plural, or the plural may be read as the
singular, and masculine may include the feminine.
(2)
Delegation of authority by Township. Whenever the Township under
the terms of this Agreement is permitted or required to do or perform
any act or matter or thing it shall be done and performed by its Board
of Supervisors or its designate Trustees.
A.
All police employees and probationary police employees shall be members
of the police employee pension and retirement plan. Each police employee
may retire or be retired from the Department of Police of the Township
on the first day of the month which next follows the day on which
the police employee attains the age 55 years and has accumulated 25
years of service.
B.
Any police employee employed by the Department of the Police of the
Township, who has been a regularly appointed police employee of the
Department of the Police of the Township for a period of at least
six months and who thereafter shall enter into the military service
of the United States shall have credited to his/her employment record
for pension or retirement benefits all of the time spent by him/her
in such military service, if such person returns or has heretofore
returned to his/her employment within six months after his/her separation
from the military service of the United States.
C.
Any police employee shall be eligible to receive credit for intervening military service as provided in Subsection B above, provided that he/she is not entitled to receive, eligible to receive now or in the future or is receiving retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other governmental agency with the exception of a member eligible to receive or receiving military retirement pay earned by a combination of active duty and non-active duty with a reserve or national guard component of the armed forces, which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Chapter 67 (relating to retired pay for nonregular service).
The Board of Supervisors agrees to the formation of a Police
Pension Fund Board to be comprised of a representative from the Police
Benevolent Association who is a police employee, a representative
from the Board of Supervisors, the Township Manager, and a resident
of Warwick Township knowledgeable in the funding and operation of
pension plans. In the absence of a Township Manager, his/her position
shall remain vacant.
A.
The police employee so retiring will be entitled to receive from the police pension and retirement fund a monthly pension commencing as of the first day of the month coincident with or next following his/her actual retirement and ending with the payment made as outlined in § 23-19, Survivor benefits.
B.
The amount payable shall be 50% of the police employee's average
monthly compensation for the final 36 months of service as a police
employee. Should there be early retirement or disability eligibility,
the payment will be in proportion to the age and years of service
requirement with the benefits cut back and reduced in accordance with
the same portion to that payable at the normal retirement date. The
payments will be made on a monthly basis.
C.
Effective January 1, 1993, payments from the plan shall be subject
to a cost-of-living adjustment (COLA). This adjustment shall be equal
to the change in the Consumer Price Index, provided that the COLA
not exceed 30% of the total initial benefit and not exceed 75% of
the final average salary of the police employee.
D.
Effective January 1, 1991, the social security offset will be reduced
to 0%.
E.
Should the police employee continue his/her employment as a police
officer for the Township beyond his/her normal eligible retirement
date, that police employee will remain a member of the plan until
he/she actually retires or otherwise ceases to be a police employee
of the Township. The police employee must continue to contribute to
the plan as required. However, the 36 months prior to the normal or
eligible retirement date will not be considered in computing the retirement
benefit.
The contributions made to the pension plan and the retirement
fund so as to effect and assure that it remains and continues to be
actuarially sound shall be as follows:
A.
Each police employee and probationary police employee shall contribute
monthly the sum of 5%, the maximum contribution of the police employee
and probationary police employee's compensation, if, and to the
extent, actuarially required.
B.
Out of this fund the Township is authorized and empowered to pay
any premium cost incurred to it so as to maintain any disability insurance
plan deemed suitable to fund the police pension and retirement fund,
or to pay a disabled police employee or police probationary employee.
The Township is further authorized and empowered to pay any premium
cost incurred to maintain any other insurance permitted by law and
suitable to fund other benefits provided under terms of the plan.
If actuarially required the Township is authorized to make the deduction
from each police employee and police probationary employee's
paycheck.
C.
The Township shall contribute to the police pension and retirement
fund in order to maintain and provide the benefit contemplated by
the police pension and retirement fund. The Township contribution
shall be the amount established by the actuary to maintain the police
pension and retirement fund actuarially sound.
A.
The monthly pension benefit that will be payable to a police employee
hired prior to January 1, 2013, who sustains a permanent disability,
giving rise to his/her eligibility for a service-related disability
benefit, shall be equal to 75% of the police employee's final
average compensation, as is hereinabove defined, which is earned and
paid in the final 36 months of active duty. The monthly pension benefit
that will be payable to a police employee hired on or after January
1, 2013, who sustains a permanent disability, giving rise to his/her
eligibility for a service-related disability benefit, shall be equal
to the greater of 50% of the police employee's final average
compensation, as hereinabove defined, or 50% of the police employee's
salary at the time of disability.
B.
There is no minimum period of service required for a police employee
to be eligible for a service-related disability pension benefit.
C.
A police employee will be deemed to be permanently disabled under
and pursuant to this article when he/she is permanently disabled to
the extent that he/she is unable to perform the usual and normal functions
and duties of a police officer as determined by the Board of Supervisors
as a direct result of an injury or condition that has occurred in
the course of the police employee's employment with the Township.
The restrictions imposed upon the police employee by reason of such
service-related injury or condition shall not be temporary in nature
and shall not arise by reason of a non-service-connected illness,
condition or injury. The restrictions imposed upon the police employee
must preclude the officer from performing his/her functions and duties
associated with the occupation of a police officer, as certified by
a physician licensed to practice medicine in the Commonwealth of Pennsylvania,
selected and designated to evaluate the police employee by the Township.
Upon reaching the date which would have been his/her superannuation
retirement date if he/she had continued to be employed as a full-time
police officer, he/she shall be paid a partial superannuation retirement
allowance determined by applying the percentage his/her years of service
bears to the years of service which he/she would have rendered had
he/she continued to work until his/her superannuation retirement date
to the gross pension, using, however, the monthly average salary during
the thirty-six-month period prior to his/her termination of employment.
Upon the death of the police employee or probationary employee,
whether prior to or after the retirement of the police employee or
probationary police employee, as provided above, the following benefits
will be payable by the plan or from the retirement fund:
A.
The surviving spouse, or if no spouse survives or if the surviving
spouse subsequently dies, then the child or children under the age
of 18 years or if attending college, under or attaining the age of
23 years, of the police employee or the probationary police employee
will be paid a monthly pension commencing as of the first day of the
month next following the date on which the police employee or probationary
police employee's death occurred and terminating as of the first
day of the month in which the surviving spouse dies. That sum no less
than 1/2 or 50% of the monthly pension benefit which was then being
paid to the retired police employee or probationary police employee
had he/she qualified for the benefits as provided under the pension
plan as of the date on which his/her death occurred.
B.
If the police employee or the probationary police employee should
die without leaving a spouse to survive him/her, or if the surviving
spouse subsequently dies, then in that event there will be paid a
monthly pension to the guardian of the estate of each surviving child
of the police employee or probationary police employee, commencing
as of the first day of the month which next follows that date on which
the police employee or probationary police employee's death occurs,
or his/her spouse dies, and terminating on the first day of the month
in which the child either dies or attains the age of 18 years, or,
if attending college, under or attaining the age of 23 years, whichever
event first occurs. The monthly benefit shall be proportionately allocated
to each remaining child and monthly pension benefit that was then
being paid to the police employee or probationary police employee,
he/she been qualified to receive benefits, as provided under the pension
plan and as determined as of the date on which the police employee
or probationary employee's death occurred; provided, however,
that the aggregate payment of all monthly benefit that was being paid
or which would have been payable to the police employee or probationary
employee's surviving spouse, if one would have survived or qualified.
C.
As each child ceases to be eligible for the pension benefit provided
herein, that child's share will become payable to the remaining
children who do qualify hereunder. It is understood that the monthly
benefit formally paid to the guardian of the estate for a dependent
child who either dies or has attained the age of 18 years, or if attending
college the age of 23 years, will then be divided among the remaining
surviving children who are then eligible for such benefits in order
that the monthly benefit of the remaining dependent children will
increase equally, provided that no such increased benefit may exceed
the monthly pension which would be payable hereunder. The aggregate
monthly dependent child benefit shall not exceed the monthly spousal
benefit that either had been paid to the spouse or would have been
payable.
D.
The surviving spouse of a member of the police force who dies before
his/her pension has vested or if no spouse survives or if he or she
survives and subsequently dies, the child or children under the age
of 18 years, or, if attending college, under or attaining the age
of 23 years, of the member of the police force shall be entitled to
receive repayment of all money which the member invested in the pension
fund plus interest or other increases in value of the member's
investments in the pension fund, unless the member has designated
another beneficiary for this purpose.
F.
Further, if, at the time of the police employee's or probationary
police employee's death, the spouse of the police employee or
probationary police employee is "with child," this child thereafter
born to the spouse will be considered a dependent child from the date
of his/her birth, and such child will be eligible for inclusion in
the monthly benefit hereunder provided.
If a police employee or probationary police employee is not
survived by a spouse or children and the death benefits payable pursuant
to the provisions hereof leave remaining additional contributions
made by the police employee or probationary police employee in the
plan or retirement fund that have not been distributed prior to the
police employee's or probationary police employee's death,
the aggregate of all contributions made by the police employee or
probationary police employee prior to his/her death with the interest
thereon computed at the rate of 4% per annum, compounded annually
from the plan year of deposit to the excess of such contribution with
interest at the police employee or probationary police employees his/her
spouse or children as of the date of his/her death or the cessation
of the spouse's or children's benefits, whichever is last
to occur.
The Township shall provide and keep on file forms for the police
employee to designate his/her beneficiary for this pension plan.
A.
If the police employee or probationary employee terminates his/her
employment with the Township, or otherwise ceases to be a member of
the Department of the Police of the Township, whether by reason of
his/her transfer to another Department of Police or employer, resignation,
discharge, firing or for any other reason prior to vesting as is hereinafter
provided, and unless an authorized leave of absence is duly approved
by the Supervisors, the police employee or probationary police employee
will be entitled to a refund of all contributions computed at the
rate of 4% per annum, compounded annually and calculated with regard
to the police employee's or probationary police employee's
contribution in which manner as to disregard fractional pension plan
years during which the police employee's or the probationary
police employee's contributions may have been held in the police
pension and retirement fund.
B.
A police employee who has been employed by the Township and has 12
years of continuous service as a police employee with the Township
shall be vested under this pension plan. Should a police employee
terminate his/her employment with the Township or otherwise cease
to be a member of the Department of Police of the Township following
the completion of the requirements for retirement, that is, before
completing the superannuation retirement age and service requirements,
or of satisfying the disability provisions hereunder before set forth,
that police employee may not withdraw his/her contribution and interest
accrual thereon without the expressed written consent of the Board
of Supervisors. A police employee will then be eligible to receive
benefits under the plan and from the retirement fund upon the date
at which the employee shall have satisfied superannuation age and
service requirements. The benefits paid hereunder will be a partial
superannuation retirement allowance determined by applying the percentage
his/her year of service bears to the years of service which he/she
would have rendered, had the police employee continued to work until
his/her superannuation retirement date to the gross pension, using
the monthly average salary as a police employee of the Township during
his/her termination of employment. The benefits hereunder are those
as authorized by the amendment of December 7, 1979, Act No. 1979-99,
P.S. § 711.[1]
[1]
Editor's Note: See 53 P.S. § 771.
A.
Administration. The police pension fund shall be under the direction
of the governing body of this municipality or such committee or persons
as the governing body of this municipality may from time to time designate
by resolution, who shall act as Trustees of the pension fund, and
such Trustees shall have full responsibility for the administration
of the program established hereunder and shall hold, invest, reinvest
and distribute all funds or other property received pursuant hereto
in trust for the purposes of this article. The Trustees may receive
at any time and from time to time gifts, grants, devises or bequests
to the pension fund of any money or property, real, personal, or mixed,
to be held by them in trust for the benefit of this fund in accordance
with the provisions hereof. The Trustee shall have full power and
authority by a majority action of its members either directly or through
their designated representative, to all acts, execute, acknowledge
and deliver all instruments and exercise for the sole benefit of the
participants hereunder, any and all powers and discretions necessary
to implement and effectuate the purposes of this article, including
for purposes of illustration, but not limited to any and all of the
following:
(1)
To hold, invest and reinvest all funds received pursuant to this
article, in such legal investments as may be authorized as legal investments
under the laws of the Commonwealth of Pennsylvania;
(2)
To enter into contracts of deposit agreements on behalf of this municipality
with one or more insurance companies, in order to provide the pension
and other benefits herein set forth, and to pay the premiums and deposits
required by the purchase of said contracts;
(3)
To retain or purchase as an investment any form of annuity or contracts
of similar nature, and to exercise with respect thereto any right
or incident of ownership;
(4)
To retain any property which may at any time become an asset of the
fund, as long as said Trustee may deem inadvisable; and
(5)
To make distribution of the monies in the fund, in accordance with
the terms of this article;
(6)
To make, execute and deliver, as Trustees, with provision for no
individual liability all instruments in writing necessary for the
exercise of any of their powers;
(7)
To employ a bank or trust company as their agent, to act as custodian
and/or manage part or parts, or the whole of the investments of the
Trust; nothing herein contained shall be construed as requiring the
Trustees to employ any bank or trust company as custodian or agent;
and the Trustees shall not be liable for any loss resulting from the
acts or omissions of such agent or for acting upon the advice of such
agent or for failing to act in the absence of any such advice;
(8)
To register securities in the name of a nominee or nominees. The
Trustees may invest and reinvest the assets of this Trust in such
a manner and at such times as the Trustees may deem advisable and
proper. It is the intention of the employer that the Trustees shall
have absolute discretion in the matter of the selection of securities
or other property in which the trust assets shall be invested from
time to time. Securities or other property, as used herein, shall
be deemed to include, specifically, stocks, either common or preferred,
mutual funds, annuity contracts or other fixed or variable, notes,
bonds, debentures, mortgages, junior mortgages and/or other securities
of any kind whatsoever, ground rents, real and/or leasehold property,
although any of the above may not be legal investments for trust funds
under the laws applicable thereto, and even though such securities
or other property may not be commonly considered as appropriate investments
for trust funds. The Trustees shall be under no obligation to diversify.
B.
A Trustee may be a participant under the fund, but no discrimination,
rights or privileges shall result from this relationship. In any matter
pertaining to his/her own particular participation, the Trustees shall
be disqualified to act upon the particular matter. This matter shall
be resolved by the remaining Trustees.
C.
Any Trustee may be removed by the Board of Supervisors upon 30 days'
written notice to such Trustee. Any Trustee may resign from the fund
upon giving 30 days' written notice. There may, at any given
time, be one Trustee or any number of Trustees. When a vacancy occurs,
the Board shall forthwith appoint a successor Trustee. Any person
or entity so appointed shall become a Trustee upon the filing of his/her
acceptance in writing. If he/she is removed or resigns, a Trustee
shall, immediately upon the request of the Board or any other Trustee,
execute all documents necessary to transfer the fund assets to any
successor Trustee or Trustees. Any successor Trustee or Trustees shall
have and exercise all the powers and authority, discretionary and
otherwise, herein conferred upon the original Trustees, shall be bound
by the obligations and duties herein imposed upon the original Trustees,
and shall be entitled to all the privileges, exculpation, indemnity
and immunities hereby granted to the original Trustees.
D.
Is it intended that this fund not be administered under the supervision
of any court, but the Trustees shall not be prevented from requesting
a court or appropriate jurisdiction to supervise this fund.
No benefit payable at any time under the Trust, prior to receipt
thereof by the participant, shall be subject in any manual to alienation,
sale, transfer, assignment or pledge; nor to attachment or encumbrance
of any kind, nor shall any retirement benefit, until actually paid
to the participant, be in any manner liable for or subject to the
debts or liability of said participant entitled to any retirement
benefit. Any attempt to alienate, sell, transfer, assign, pledge or
otherwise encumber any such benefit, prior to receipt thereof by the
participant, in violation of the restrictions set forth in the preceding
sentence shall be void. If a participant shall attempt to or shall
alienate, sell, transfer, assign, pledge or otherwise encumber his/her
benefits payable under the Trust or any part hereof, or, if by reason
of his/her bankruptcy or other event happening at any time, such benefits
should devolve upon anyone else or could not be enjoyed by him, then
the Trustees, in their discretion, may terminate his/her interest
in any such benefits and hold or apply it to or for the benefit of
such person, his/her spouse, children or other dependents, or any
of them, in such a matter as the Trustees may deem proper.
In the event that benefits payable hereunder are unclaimed for
six years, and the whereabouts of any person entitled to such benefits
are not known to the Trustee, such benefits will be forfeited.
In case any provision of this fund shall be held illegal or
void, such illegality or invalidity shall not affect the remaining
provisions of this Trust but shall be fully severable, and the fund
shall be construed and enforced as if said illegal or invalid provisions
had not been inserted herein.
A.
Eligibility. Effective immediately, members of the Warwick Township
Police Department who have not retired prior to the implementation
of the DROP program may enter into DROP on or after their normal retirement
date.
B.
Written election. A member of the Police Department electing to participate
in the DROP must complete and execute a DROP Option Form prepared
by Warwick Township, which shall evidence the member's participation
in the DROP. The form must be signed by the member, notarized and
submitted to the Township at least 30 days prior to the date on which
the member wishes the DROP option to be effective. The DROP option
notice shall include an irrevocable notice to the Township, by the
member, that the member shall resign from employment with the Warwick
Township Police Department effective on a specific date (the "resignation
date"). In no event shall the resignation date be shorter than 12
months or longer than 60 months from the execution of the DROP option
form. An officer shall cease to work as a Township police officer
on the officer's resignation date, unless the Township terminates
or honorably discharges the officer prior to the resignation date.
In addition, all retirement and requisite pension documents required
by the Township must be filed and presented to the Township administration
for approval of retirement and payment of pension. Once a retirement
application has been approved by the Board of Supervisors and/or the
Trustee, it is irrevocable.
C.
Limitation of pension accrual. After the effective date of the DROP
option, the member shall no longer earn or accrue additional years
of continuous service for pension purposes.
D.
Benefit calculation. For all pension fund purposes, continuous service of a member participating in the DROP shall remain as it existed on the effective date of commencement of participation in the DROP. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Warwick Township Police Pension Plan. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the pension fund. The pension benefit payable to the members shall increase only as a result of a cost of living increase as provided for in § 23-15C.
E.
Payments to the DROP account. The monthly retirement benefits that
would have been payable had the police officer elected to cease employment
and receive a normal retirement benefit shall, upon the police officer
commencing participation in DROP, be paid into the separate account
established to receive the participant's monthly pension payments.
This account shall be designated the DROP account. An individual officer's
DROP account shall be a self-directed investment vehicle, with the
officer having exclusive control over the investment of his or her
DROP account monies. The Township accepts no responsibility and makes
no guarantee for the performance of any investments made by the officer,
nor shall the Township guarantee or be required to guarantee that
an officer's DROP account generate a specific amount of earnings
or income or any earning or income at all. Any investment losses occurring
in an officer's DROP account shall be solely the responsibility
of the officer, and the Township assumes no liability or responsibility
for same.
F.
Accrual of nonpension benefits. After an officer elects to participate
in the DROP program, all other contractual benefits shall continue
to accrue, with the exception of those provisions relating to the
Police Pension Plan and the buyback of accrued, but unused, sick or
vacation time. Prior to participating in the DROP program, an officer
may request payment for any accrued but unused sick or vacation time
for which the Township would contractually be obligated to buy back
from the officer upon retirement. An officer may utilize leave time
during the DROP period, but the Township shall not be contractually
obligated to buy back any such unused leave time at the end of the
DROP period.
G.
Payout. Upon the resignation date set forth in the member's
DROP option notice or such date as the Township separates the member
from employment, the retirement benefits payable to the member or
member's beneficiary, if applicable, shall be paid to the member
or beneficiary and shall no longer be paid to the member's DROP
account. These benefits shall be paid to the member no later than
30 days following the resignation or termination date and shall be
paid to the member in a single lump sum payment or at the member's
option, in any fashion permitted by law.
H.
Disability during DROP. If a member becomes temporarily disabled
during his participation in DROP, the member shall receive disability
pay in the same amount as disabled police officers who are not participating
in DROP. In no event shall a member on temporary disability have the
ability to draw from his DROP account. However, notwithstanding any
other provision in this subsection, if an officer is disabled and
has not returned to work as of the date of his required resignation
or per the CBA, then such resignation shall take precedence over all
other provisions herein, and said officer shall be required to resign.
Nothing contained in the plan shall be construed as conferring any
legal rights upon any police employee or other person to a continuation
of employment, nor shall participation in the DROP program supersede
or limit in any way the right of the Township to honorably discharge
a police employee based upon an inability to perform his or her full
duties as a police officer.
I.
Death. If a DROP member dies before the DROP account balances are
paid, the participant member's legal beneficiary shall have the
same rights as the member to withdraw the account balance.
J.
Forfeiture of benefits. Notwithstanding an officer's participation
in the DROP plan, an officer who is convicted or pleads guilty to
engaging in criminal misconduct which constitutes a "crime, related
to public office or public employment," as that phrase is defined
in Pennsylvania's Pension Forfeiture Act, 43 P.S. §§ 1311
through 1314, shall forfeit his right to receive a pension, including
any amounts currently deposited in the DROP account. In such a case,
the member shall only be entitled to receive the contributions, if
any, made by the member to the fund, without interest.
K.
Account manager. The DROP participant shall be solely responsible
for the administration of his or her individual DROP account. The
Township shall not be responsible for any investment loss incurred
in the plan or for the failure of an investment to earn a specific
or expected return or to earn as much as any other opportunity, whether
or not such other investment opportunity was offered or available
to participants in the plan.
L.
Cost of management for DROP program. Any costs or fees associated
with the management of the DROP accounts shall be paid directly from
the individual DROP accounts. Under no circumstances shall any such
costs or fees be paid by the Township or by the pension plan itself.
M.
Amendment. Any amendments to the DROP program shall be consistent
with the provision covering deferred retirement option plans set forth
in any applicable collective bargaining agreement and shall be binding
upon all future DROP participants and upon all DROP participants who
have balances in their deferred retirement option accounts. The DROP
plan may only be amended by a written instrument, not by any oral
agreement or past practice.
N.
Construal of provisions. An officer's election to participate
in the DROP program shall in no way be construed as a limitation on
the Township's right to suspend or terminate an officer for just
cause or to grant the officer an honorable discharge based upon a
physical or mental inability to perform his or her duties.
O.
Severability. The provisions of DROP shall be severable, and if any
or all of its provisions shall be held to be unconstitutional or illegal,
the validity of any remaining provisions of DROP shall not be affected
thereby. In the event that the DROP provision is declared invalid
or illegal by a court of jurisdiction or through an administrative
determination of the Office of the Auditor General, the Police Benevolent
Association shall have the right to bargain in accordance with Act
111 over deletion of this benefit. It is expressly understood that
this shall not involve bargaining over a replacement provision.
P.
If the Office of the Auditor General, at any time, finds the DROP
plan to be invalid, it shall either be revised to conform to the requirements
of the Auditor General or, if that is not possible, it (DROP program)
shall be terminated. In the event of such a termination, all members
shall be considered retired/terminated from employment on the date
they became members of the DROP program, and all funds contained in
the DROP accounts shall be paid to the member in accordance with the
provisions contained herein.
The fund agreement shall be construed according to the laws
of the State of Pennsylvania, where it is made and where it shall
be enforced.
A.
If any section, paragraph, subsection, clause or provision of this
article shall be declared by a court of competent jurisdiction to
be invalid, such decision shall not affect the validity of this article
as a whole or any part thereof.
B.
All ordinances or parts of ordinances inconsistent herewith are hereby
repealed.
C.
The article, upon enactment, replaces and supersedes all previous
versions. This article shall be effective five days after enactment.
