[Adopted 6-10-2013 by Ord. No. 2013-06]
For purposes of this article, the following terms shall have the noted meanings:
COLLECTIVE BARGAINING AGREEMENT
The collective bargaining agreement between the Township and a union that covers retiree medical benefits for union employees of the Township.
DEPENDENT
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).
IRC
The Internal Revenue Code of 1986, as amended.
MUNICIPALITY
The Township of Radnor, Delaware County, Pennsylvania.
PLAN
The Township of Radnor Postemployment Benefit Obligation Plan, as amended from time to time.
PLAN ADMINISTRATOR
The Township Manager or the person or entity designated by the Township to carry out administrative services as are necessary to implement the Plan.
PLAN YEAR
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.
RETIREE
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.
SPOUSE
The retiree's lawful spouse as determined under the laws of Pennsylvania.
TRUST
The integral part trust that holds the assets of the Plan.
TRUSTEE
The trustee or trustees of the integral part trust that holds the assets of the Plan.
UNION
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.