[Adopted 12-13-2010 by Ord. No. 2622]
The Board of Commissioners of Haverford Township, Delaware County,
Pennsylvania, hereby establishes a Defined Contribution Pension Plan
for full-time non-uniform employees hired on or after January 1, 2011.
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
The Board of Commissioners of Haverford Township, Delaware
County, Pennsylvania.
All W-2 earnings paid by the Township to the member during
a plan year. Compensation shall also include amounts paid directly
by the employer or through a program to which the employer has made
contributions on behalf of the employee, other than under this plan
(including, without limitation, a workers' compensation program).
As of January 1, 2020, and pertaining to non-bargaining-unit members
only, compensation is defined as compensation received less any amounts
received at separation as payment for unused leave time.
[Amended 2-10-2020 by Ord. No. 2890]
The effective date of this article shall be January 1, 2011.
Any nonuniform personnel hired on or after January 1, 2011,
in the full-time employ of the Township or Library whose customary
employment by the Township or Library is for not less than 35 hours
per week.
The nonvested portion of a member's account.
All assets held by the trustee under the trust agreement
and related insurance and investment contracts relating to this plan.
Any date later than Normal Retirement at which a member retires.
Any employee who has satisfied the eligibility requirements established in § 30-48 hereof.
Each member's individual account maintained within the fund
to include the prorated share of investment earnings or losses.
The first day of the month coincident with or next following
the date on which the member completes five years of service or on
the date which the member attains 62.
The period of time at which end an employee is compensated
for his services to the Township.
The Defined Contribution Pension Plan for the nonuniformed
employees of Haverford Township, as herein set forth and as the same
may hereafter be amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
The distribution amount transferred to the plan by a member
from a qualified pension or profit-sharing plan.
The aggregate of a member's total periods of employment as
a full-time employee of the Township. If a member enters military
service, either voluntarily or by conscription, after he has been
employed for at least six months, such time spent in the armed forces
of the United States during a period of national emergency shall be
counted as service for purposes of this plan, provided that such member
returns to service with the Township within six months after his discharge
or release from such active duty in the armed forces of the United
States. The time spent in military service due to voluntary extension
of such military service during a period of peacetime shall not be
included as service for the purpose of this plan.
Haverford Township, Delaware 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 Commissioners of Haverford Township or any other
agency or person appointed by the Board to serve in that capacity
as set forth in the trust agreement.
The nonforfeitable right to any immediate or deferred benefit
in the amount which is equal to the sum of A and below:
The value on that date of that portion of the participant's
account that is attributable to and derived from a participant's own
contributions, if any.
The value on that date of that portion of the participant's
account that is attributable to and derived from employer contributions
multiplied by his vesting percentage determined on the date applicable.
The member's nonforfeitable interest to his account plus
earnings, thereon computed in accordance with the following schedule
based on years of service with the Township:
|
Full Years of Service
|
Percentage Vested
| |
|---|---|---|
|
Less than 5
|
0%
| |
|
5 or more
|
100%
|
A.
All persons who are employees (as defined in this plan) as of the
effective date hereof may elect to be a member as of the effective
date.
B.
Any person who becomes an employee after the effective date hereof
shall become a member on the last day of the plan year coincident
with or next following completion of 1/2 year of service.
A.
Township contributions. The Township shall contribute, on behalf
of each member who was a member on the last day of a plan year, an
amount equal to the fixed percentage of his compensation for such
plan year, as determined by the Collective Bargaining Agreement in
effect during a specific calendar year, regardless of their membership
status in the bargaining unit. Should the Township, for any reason,
fail to make a contribution as provided for herein, then such deficiency
shall be made up in subsequent years. The Township, at its own discretion,
may contribute more than the fixed percentage. However, any additional
contributions would be distributed on an equal basis.
[Amended 11-14-2016 by Ord. No. 2796]
B.
Member's contributions: Members shall be required to contribute into
this plan at a rate determined by the Collective Bargaining Agreement
in effect during a specific calendar year, regardless of their membership
status in the bargaining unit.
[Amended 7-14-2014 by Ord. No. 2721]
C.
Rollovers and transfers. The trustee may receive on behalf of a member
all or part of the entire amount of any distribution from a terminated
pension or profit-sharing plan or any lump sum distribution theretofore
received by such member from a pension or profit-sharing plan meeting
the requirements of Internal Revenue Code Section 401(a).[1]
[1]
Editor's Note: See 26 U.S.C. § 401(a).
D.
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 shall be used to reduce or eliminate the Township's contributions pursuant to Subsection A hereof and offset the payment of any administrative expenses.
E.
Other contributions. The fund shall be authorized to receive by gift,
grant, devise or bequest any money or property, real, personal or
mixed, in trust for the benefit of the fund. The trustee shall be
subject to such directions not inconsistent with this plan as the
donors of such funds and property may prescribe.
F.
Forfeiture. Forfeiture will remain assets of the trust and at the Township's discretion be used to reduce or eliminate future Township contributions pursuant to Subsection A and/or reduce the administrative cost to the plan and/or to be reallocated to the member account in the proportion that an individual member's account balance (excluding rollover account balances) bears to the total of all member accounts.
G.
Accounting and allocations.
(1)
The administrator shall establish and maintain an account in the
name of each member to which the administrator shall credit as of
each anniversary date all amounts allocated to each such member as
hereafter set forth.
(2)
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. Within 45 days after the date of receipt by the administrator of such information, the administrator shall allocate such contribution to each member's account in accordance with Subsection A.
(3)
As of each anniversary date before allocation of Township contributions,
any earnings or losses (net appreciation or net depreciation) of the
trust fund shall be allocated in the same proportion that each member's
and former member's nonsegregated account bears to the total of all
members' and former members' nonsegregated account as of such date.
A.
Normal retirement. A member who attains his normal retirement date
shall be considered fully vested. If a member retires on his normal
retirement date he shall receive a distribution of the vested value
of his member account valued as of his prior anniversary date.
B.
Late retirement. A member may continue in the service of the Township after his normal retirement date and in such event shall retire on his late retirement date. Such member shall continue as a member under this plan until such late retirement date. The member shall have a vesting percentage as determined by the definition of "vesting percentage" in § 30-47 hereof and shall receive a distribution of the vested value of his member account valued as of his prior anniversary date.
A.
Death prior to retirement. If a member dies prior to the commencement of pension benefits, his designated beneficiary shall be entitled to the vested interest of the member's account determined pursuant to the definition of "vesting percentage" in § 30-47 hereof and valued as of the prior anniversary date. If no such beneficiary survives, the amount will be paid to the member's estate.
A.
Settlement options. Distributions may be made in a lump sum; however,
if not made in a lump sum, they may be made over one of the following
periods (or a combination thereof):
B.
Joint and survivor annuity. Unless an optional form of benefit is
selected by a member and agreed to by the member's spouse, the member's
vested member account balance will be paid in the form of a fifty-percent
joint and survivor annuity.
A.
Distribution. As of a member's termination of employment, he shall
receive a distribution of his entire vested interest valued at the
end of the prior anniversary date during which termination occurred.
B.
Reemployment rights. If the terminated member is rehired by the Township
and re-enrolls in the plan within 12 consecutive months of termination,
he shall continue to participate in the plan as if such termination
had not occurred.
A.
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 30-50, 30-51, 30-52 and 30-53, in accordance with the instructions received from the Board; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
B.
The Township may employ an actuary, investment advisors, counsel,
or other professional consultants from time to time in connection
with the operation of the fund or of this plan. Such persons or entities
shall be compensated by the Township at such rates as may be agreed
upon by the Board. Such compensation may be paid from the fund.
C.
The trustee 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.
A.
The plan shall be administered by the Board. The Board shall make
and adopt rules and regulations for the efficient administration of
the plan.
B.
The Board 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 the trustees and any other professional whose services are employed pursuant to § 30-54B of this plan.
C.
The Board shall construe the plan, shall determine any questions
of fact arising under the plan and shall make all decisions required
of it under the plan and its construction thereof, and 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 in similar circumstances.
D.
The Board shall serve without bond except as may be otherwise required
by law and without compensation for its services as such.
E.
The members 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.
F.
The Board shall make available to members, retired members and terminated
members and to their beneficiaries, for examination during business
hours, such records as pertain to the person examining.
G.
To enable the Board to perform its functions, the Township shall
supply full and timely information to it on all matters relating to
the pay of all members, their retirement, death, termination of employment
and such other pertinent facts as the Board may require.
H.
The Board shall enact such rules and regulations for the conduct
of its business and for the administration of the plan as it may consider
desirable, provided that the same shall not be in conflict with any
of the provisions of the plan. All actions of the Board shall be taken
at meetings at which at least four members shall be present, or by
written resolution, and any resolutions concurred in by not less than
four of its members shall be the action of the entire Board. Written
minutes shall be kept of the meetings and actions of the Board.
I.
The President and the Secretary, 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.
A.
It is the expectation of the Township that it will continue this
pension plan indefinitely and will from time to time contribute to
the fund such amounts as may be needed to provide the benefits set
forth in the plan, but continuance of the plan 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.
B.
The Township assumed no obligation or responsibility with respect
to the operation of the plan and does not guarantee the payment of
the benefits provided for members of the plan. 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 plan shall not be a charge on any other
fund in the treasury of the Township or under its control, save the
Nonuniformed Employees Pension Fund herein provided for.
C.
Nothing contained in the plan shall be held or construed as a contract
or guarantee of employment nor 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 plan.
A.
The Township may amend, curtail or terminate this plan at any time;
provided, however, that no amendment affecting the trustee shall be
made without its consent (other than an amendment having the effect
of termination of the plan); 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 members or their beneficiaries (except
upon termination such diversion may be made after all of the fixed
and contingent liabilities to members 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 member.
B.
In the event of termination of this plan, the Board shall allocate
the assets then remaining in the fund, to the extent that such assets
are sufficient, to members and retired members in an amount equal
to their respective member account balance reduced in the cases of
retired members by any prior distributions made to them.
C.
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.
A.
No benefit under this plan 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
members or member's beneficiary. This provision shall not apply to
a "qualified domestic relations order" defined in Code Section 414(p)[1] and those other domestic relations orders permitted to
be so treated by the Board under the provisions of the Retirement
Equity Act of 1984. The Board shall establish a written procedure
to determine the qualified status of domestic relations orders and
to administer distributions under such qualified orders. Further,
to the extent provided under a qualified domestic relations order,
a former spouse of a participant shall be treated as the spouse or
surviving spouse for all purposes under this plan.
[1]
Editor's Note: "Code" refers to the Internal Revenue Service
Code; see 26 U.S.C. § 414(p).
B.
Any person dealing with the trustee may rely upon a copy of this
plan and any amendments thereto certified to be a true and correct
copy by the trustee.
C.
Anything heretofore contained in this plan to the contrary notwithstanding,
it is the intention of the Township that any action herein provided
to be taken by the 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.
D.
Under no circumstances, whether upon amendment or termination of
this plan or otherwise, shall any part of the fund be used for or
diverted to any purpose other than the exclusive benefit of members
or their beneficiaries until all of the actuarial obligations to such
member or member's beneficiaries have been met.
E.
If the Board deems any person incapable of receiving benefits to
which he is entitled by reason of minority, illness, infirmity, or
other incapacity, it may direct the 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.
F.
Should any provision of this plan be determined to be void by any
court, the plan will continue to operate and, to the extent necessary,
will be deemed not to include the provision determined to be void.
G.
Headings and captions provided herein are for convenience only and
shall not be deemed part of the plan.
H.
This plan shall be construed and applied under the laws of the Commonwealth
of Pennsylvania where not in conflict with federal laws, which shall
prevail.
I.
All ordinances or resolutions, or portions thereof, inconsistent
herewith are hereby repealed.
