[Ord. No. 287,
passed 8-10-1995]
The trustee shall employ an actuary and fix the member's compensation and shall provide for the legal and administrative expense of the plan. The actuary shall determine the present liability on account of pensions payable under this chapter to employees for service prior to the date of the establishment of this plan. The unfunded liability shall be paid as provided in Section 288.25(b), except that it may be funded over a period not exceeding 25 years. The actuary shall determine the amount which shall be contributed annually to the plan for the service of employees subsequent to the establishment of the plan, known as "future service costs."
[Ord. No. 287,
passed 8-10-1995]
(a)Â
The regular contribution shall be paid over to the trustee and shall consist each year of the amount required to fund all the benefits provided under this chapter according to the calculations of an independent pension consultant retained by the trustee, but only to the extent that such funding is not provided under subsection (b) hereof.
(b)Â
The regular contributions to the plan to pay the unfunded liability
shall be made in the following order until the contribution requirement
is satisfied:
(1)Â
The contribution from the State, if any.
(2)Â
Contributions from the members of the plan, not to exceed 3Â 1/2%
of each member's compensation. The contribution rate in effect
for the prior plan year shall continue from year to year unless Township
Council changes the rate by resolution.
(3)Â
The balance to be paid by the employer.
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Notwithstanding the foregoing, effective January 1, 1995, the
employer shall make the member contributions described in paragraph
(b)(2) hereof, on behalf of affected members, and such contributions
shall be treated as employer contributions in determining tax treatment
under the Internal Revenue Code of the United States. Such contributions
are being made by the employer in lieu of member contributions. Such
contributions shall be paid from the same source of funds as is used
in paying the wages to affected members. Member contributions made
by the employer under this section shall be treated for all purposes
other than taxation in the same manner and to the same extent as member
contributions made prior to the date specified above. No provision
in this plan shall be construed so as to permit or extend an option
to affected members to directly receive the contributions made by
the employer pursuant to paragraph (b)(2) hereof instead of having
them paid to the retirement system.
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(c)Â
Contributions described in paragraph (b)(2) hereof shall accumulate
with interest at 5% per year compounded annually. The gross wages
of affected members shall be offset by a deduction equal to the amount
of member contributions made by the employer pursuant to the preceding
paragraph.
[Ord. No. 287,
passed 8-10-1995]
The contributions shall be delivered to and held by the trustee
as provided under the trust agreement. The trust fund so held by the
trustee shall be used to pay benefits and expenses in accordance with
the plan, the trust agreement and any agreements with an insurance
company or other financial institution constituting a part of the
plan and trust.
[Ord. No. 287,
passed 8-10-1995]
Any forfeitures occurring as a result of a member's termination
of service, or in any other manner, shall not be applied to increase
benefits that any member would otherwise receive under the plan, and
said forfeitures shall be applied to reduce the employer's future
contributions and may be anticipated in estimating costs under the
plan.
