[Adopted 6-10-2013 by Ord. No. 2013-06]
For purposes of this article, the following terms shall have
the noted meanings:
The collective bargaining agreement between the Township
and a union that covers retiree medical benefits for union employees
of the Township.
An individual who is a dependent as that term is used in
IRC § 105(b). As of the date of adoption of the Plan, a
"dependent" was a dependent as defined in IRC § 152, determined
without regard to IRC § 152(b)(1), (b)(2), and (d)(1)(B).
The Internal Revenue Code of 1986, as amended.
The Township of Radnor, Delaware County, Pennsylvania.
The Township of Radnor Postemployment Benefit Obligation
Plan, as amended from time to time.
The Township Manager or the person or entity designated by
the Township to carry out administrative services as are necessary
to implement the Plan.
The twelve-consecutive-month period ending on December 31.
The first plan year began on the effective date specified in Section
4 of this article,[1] and ends on December 31, 2012.
A former employee of the Township who terminated employment
with the Township after meeting the conditions set forth in the applicable
bargaining agreement (and for nonuniform, nonbargained former employees,
the applicable salary and benefits ordinance) in order to receive
retiree medical insurance or life insurance.
The retiree's lawful spouse as determined under the laws
of Pennsylvania.
The integral part trust that holds the assets of the Plan.
The trustee or trustees of the integral part trust that holds
the assets of the Plan.
A union representing employees of the Township.
[1]
Editor's Note: "This article" refers to Ord. No. 2013-06.
Section 4 of Ord. No. 2013-06 states "Effective Date. This article
shall become effective in accordance with the Home Rule Charter of
Radnor Township."
A.
A Postemployment Benefit Obligation Plan and Integral Part Trust
("Trust") is hereby established for the deposit and administration
of funds to be used for the exclusive and irrevocable purpose of funding
postemployment benefits. The Trust shall be funded annually through
the budget appropriation process.
B.
The Township is hereby appointed as the trustee of the Trust.
C.
The Plan Administrator is hereby authorized to execute the trust
agreement with any additional changes to be approved by the Township
Solicitor in substantially the form attached hereto and incorporated
herein as Exhibit A to this article.[1]
[1]
Editor's Note: Exhibit A is on file in the Township offices.
A.
Eligibility. The Plan covers retirees, their spouses and their dependents.
No other individual shall be entitled to benefits under the Plan;
provided that the Plan Administrator may direct that benefits be paid
to other individuals if necessary to comply with a court order. Note:
no individual shall be eligible for coverage under the Plan unless
the applicable collective bargaining agreement (and for nonuniform,
nonbargained former employees, the applicable salary and benefits
ordinance) provides that he/she is entitled to employer-provided retiree
medical insurance, compensated absence, or life insurance benefits.
B.
Benefits.
(1)
The Plan Administrator shall direct the trustee to use Trust funds
to provide retiree medical, vision, dental, prescription, or life
insurance benefits to retirees, their spouses and their eligible dependents.
Benefits must be provided through the purchase of insurance, self-insurance
or other funding approved by the Plan Administrator.
(2)
The Plan Administrator shall direct the trustee to pay lump sum payments
for accrued but unused leave time at termination in accordance with
applicable collective bargaining agreements and for nonuniform, nonbargain
former employees, the applicable salary and benefits ordinance.
(3)
A former union employee shall not have any right to benefits under
the Plan other than retiree medical or life insurance benefits to
which he/she is entitled under the terms of the applicable collective
bargaining agreement. A former non-union employee shall not have any
right to benefits under the Plan other than retiree medical or life
insurance benefits to which he/she is entitled under the terms of
his/her employment arrangement with the Township.
C.
Benefits from another source. Notwithstanding Subsection B above, no person shall have any claim for benefits under the Plan to the extent that he/she has received or is entitled to receive the same benefits under another plan, insurance policy, settlement or other arrangement that is sponsored, funded or provided by the Township.
A.
Plan Administrator. The Plan Administrator shall have authority and
responsibility to control and manage the operation and administration
of the Plan. The Plan Administrator shall have discretion to interpret
the terms of the Plan.
B.
Documents. The Plan Administrator shall keep a copy of the Plan document
and any other disclosure documents relating therein, including, but
not limited to, summary plan descriptions on file at his/her office
where retirees, spouses or dependents may inspect them during the
Township's regular business hours. Upon request, the Plan Administrator
shall provide a retiree, spouse or dependent with copies of such documents.
When the Plan Administrator provides such documents, the Plan Administrator
may charge the requesting party a reasonable charge for photocopying
these materials.
C.
Conflicts between documents. Any conflict between the provisions
of this document and any other document purporting to explain the
rights, benefits or obligations of the parties hereunder shall be
resolved in favor of the Plan document. If there is a conflict between
the Plan and a collective bargaining agreement, the Plan shall govern,
but this subsection does not prevent a retiree (or spouse or dependent)
from claiming benefits from the Township under an applicable collective
bargaining agreement or applicable salary and benefits ordinance.
D.
Agents and expenses. The Plan Administrator may employ agents to
assist in his/her duties and may rely upon the written certificates
of any agent, counsel, accountant, investment manager, actuary or
physician. The Plan Administrator shall be entitled to reimbursement
from the Trust (unless the Township, at its discretion, makes reimbursement)
for all other proper charges and expenses incurred in carrying out
his/her duties under the Plan, including compensation of agents and
payment of litigation costs. The Plan Administrator may be paid such
reasonable compensation as shall from time to time be agreed upon
in writing by the Township and the Plan Administrator. However, an
individual serving as Plan Administrator who already receives full-time
pay from the Township or who is a member of the governing body of
the Township shall not receive compensation from the Trust except
for reimbursement of expenses properly and actually incurred.
E.
Uniformity of discretion. Wherever, under the provisions of the Plan,
the Plan Administrator is granted discretionary powers which shall
affect the rights and benefits of retirees, spouses or dependents,
such discretion shall be exercised uniformly so that all parties similarly
situated shall be similarly treated.
F.
Indemnification. The Township shall indemnify the Plan Administrator
and any individual who may be appointed pursuant to this article against
any and all claims losses, damages, expenses and liabilities arising
from their duties and responsibilities pursuant to the provisions
of the Plan, unless the same is determined to be due to gross negligence
or willful misconduct.
A.
Amendment.
(1)
Any or all of the provisions of the Plan may be amended at any time
and from time to time, in whole or in part, by an instrument in writing
by the Township. No such amendment shall authorize or permit any part
of the Trust (other than such part as is required to pay taxes and
administration expenses) to be used for or diverted to purposes other
than for the exclusive benefit of the retirees, their spouses, or
their dependents; no such amendment shall cause or permit any portion
of the Trust to revert to or become the property of the Township;
and no such amendment which affects the rights or duties of the trustee
may be made without the trustee's written consent.
(2)
The Trust is intended to be an integral part trust in accordance
with U.S. Treasury regulation § 301.7701-1(a)(3). To the
extent that any amendment is needed for the Trust to be or remain
an integral part trust, such amendment will be deemed to have been
made on a timely basis.
B.
Termination. The Plan may be terminated at any time by the Township and, upon such termination, the Trust shall be paid out by the trustee as and when directed by the Plan Administrator or the Township in accordance with the provisions of the Trust Agreement and the terms of the Plan. Notwithstanding § 62-31A, upon termination of the Plan and upon the satisfaction of all liabilities under the Plan to provide benefits or pay administrative expenses, any assets remaining in the Trust shall be returned to the Township.
A.
Source of funds. The Trust shall constitute the sole source of funds
that may be used to purchase insurance under the Plan and the trustee
shall not be liable in any way or in any manner to purchase insurance
beyond those monies that have been contributed to the Trust.
B.
Limited effect of plan and trust. Neither the establishment of the
Plan nor the Trust nor any modification thereof, nor the creation
of any fund or account, nor the payment of any benefits shall be construed
as giving to any person covered under the Plan or other person any
legal or equitable right against the trustee, the Township, or any
officer or employee thereof, except as may otherwise be provided in
the Plan or in the Trust. Under no circumstances shall the term of
employment of any employee be modified or in any way affected by the
Plan or the Trust.
C.
Protective clause. Neither the Township nor the trustee shall be
responsible for the validity of any contract of insurance issued in
connection with the Plan or Trust or for the failure on the part of
the insurer to make payments provided by such contract, or for the
action of any person which may delay payment or render a contract
null and void or unenforceable in whole or in part.
D.
Construction of plan. The Plan shall be construed and enforced according
to the laws of the Commonwealth of Pennsylvania. If any provision
of the Plan shall be held illegal or invalid for any reason, such
determination shall not affect the remaining provisions of the Plan.
E.
Gender and number. Wherever any words are used herein in the masculine,
feminine or neuter, they shall be construed as though they were also
used in another gender in all cases where they would so apply, and
whenever any words are used herein in the singular or plural form
they shall be construed as though they were also used in the other
form in all cases where they would so apply.
F.
Headings. The headings and subheadings of the Plan have been inserted
for convenience of reference and are to be ignored in any construction
of the provisions herein.
G.
Spendthrift. The interests and benefits under the Plan of any retiree,
spouse or dependent shall not be subject to assignment, alienation,
pledge, attachment, garnishment, sequestration or other legal process,
or to the claims of creditors, except as required by law.
H.
Continuing coverage. All persons whose health benefits would otherwise
terminate may have rights to continuation coverage at their own expense
due to a qualifying event described in IRC § 4980B.
