[Ord. 966, 12/19/1989, § 1]
There is hereby established in the Borough a Pension Plan and
Pension Fund for the benefit of full-time nonuniformed employees of
the Borough. The Pension Plan shall be known as the "Borough of Mechanicsburg
Nonuniformed Employees Pension Plan" (hereinafter "Plan"). The Pension
Fund shall be known as the "Borough of Mechanicsburg Nonuniformed
Employees Pension Fund" (hereinafter "Fund").
[Ord. No. 966, 12/19/1989, § 2; as amended by Ord. No.
1094, 5/20/2007, § 1; by Ord. No. 1144, 10/21/2014; and by Ord.
No. 1163, 8/6/2019, § 1]
1. The Council is hereby authorized to enter into an agreement of trust
with a corporate fiduciary, which agreement of trust shall permit
the fiduciary to manage and operate the Fund and to receive, hold,
invest and disburse any sum or sums as may be necessary to carry out
the Plan. The Council shall determine the form and terms of any such
agreement of trust.
2. Effective January 1, 2019, and continuing thereafter until terminated
by the Council, the accompanying joinder agreements and the terms of the Pennsylvania State Association
of Boroughs Municipal Retirement Trust are adopted by the Borough,
to be known as the Borough of Mechanicsburg Nonuniformed Employees'
Pension Plan and the Borough of Mechanicsburg Nonuniformed Defined
Contribution Pension Plan (the "Plans"), in the form attached hereto,
except as provided herein. Hereafter, by resolution duly adopted,
the Council may amend any provisions of the Trust or joinder agreements
relating to the administration and management of the Plans. Modifications
to the Plans relating to contributions, vesting, member and survivor
benefits or other substantive matters shall be effected only upon
amendment of this Part by ordinance duly enacted by Council.
[Ord. 966, 12/19/1989, § 3; as amended by Ord.
1144, 10/21/2014]
1. The Borough of Mechanicsburg Nonuniformed Employees Pension Fund
shall be created and maintained in the following manner:
A. All funds on deposit and held for the pension or retirement benefits
of the Borough of Mechanicsburg nonuniformed employees shall be transferred
to the Pension Fund created hereby subject to any liabilities which
may exist against the Fund.
B. The allocation by the Council of payments made by the Treasurer of
the Commonwealth from monies received from taxes paid upon premiums
by foreign casualty insurance companies and foreign fire insurance
companies pursuant to the General Municipal Pension System State Aid
Program.
C. Payments made by other gifts, grants, devises, or bequests made to
the Fund.
D. Such other payments as may, from time to time, be made by the Council
to the Fund from the general revenue of the Borough.
E. Payments made by nonuniformed full-time Borough employees from their
employee compensation.
2. All such payments received shall be deemed to be part of the Pension
Fund and shall not be applied to any other account or disbursed in
any manner except as provided herein.
3. Payments required under the Plan shall be a charge only upon the
Borough of Mechanicsburg Nonuniformed Employees Pension Fund and not
upon other monies or funds of the Borough.
[Ord. No. 966, 12/19/1989, § 4; as amended by Ord. No.
1094, 5/20/2007, § 2; Ord. No. 1163, 8/6/2019, § 2]
1. The Pension Fund shall be deposited with, managed and invested by
a corporate trustee, designated by the Council, which shall carry
out its responsibilities in accordance with the terms of the Trust
Agreement and further subject to such investment policy and guidance
as the Council shall, from time to time, give to the Trustee for the
investment of the Pension Fund assets.
2. Effective January 1, 2019, and continuing thereafter until terminated
by the Council, the Pension Fund shall be deposited with, managed
and invested pursuant to the accompanying joinder agreements and the
terms of the Pennsylvania State Association of Boroughs Municipal
Retirement Trust. Hereafter, by resolution duly adopted, the Council
may amend any provisions of the Trust or joinder agreements relating
to the administration and management of the Plans. Modifications to
the Plans relating to contributions, vesting, member and survivor
benefits or other substantive matters shall be effected only upon
amendment of this Part by ordinance duly enacted by Council.
[Ord. 966, 12/19/1989, § 5]
1. The Plan shall be administered by the Council.
2. The Borough Manager-Secretary shall keep minutes of the proceedings
and all dates, records and documents pertaining to the administration
of the Plan. The Council may employ and suitably compensate such actuarial
and consulting services and advisory, clerical or other employees
and attorneys as it may deem necessary for the performance of its
duties. The expenses of the administration of the Plan shall be paid
from the assets of the Fund.
3. The action of the Council shall be determined by the vote or other
affirmative expression of a majority of its members.
4. The Council shall make available to participants of the Plan, for
examination during business hours, such of its records as pertain
only to the participant involved. The Council shall make its records
available to proper governmental officials during business hours and
members of the general public upon 24 hours' notice.
5. The Council, on behalf of the participants of the Plan, shall enforce
the Plan in accordance with the terms of this Part and shall have
all powers necessary to accomplish that purpose including, but not
limited to, the following:
A. To determine all questions relating to the eligibility of employees
of becoming participants;
B. To compute and certify to the fiduciary the amount and kind of benefits
payable to participants;
C. To select any issuing company and annuity contract which, in the
opinion of the Council, will best carry out the purposes of the Plan;
and
D. To make and publish such rules and regulations for the administration
of the Plan as are not inconsistent with the terms of this Part.
6. The Borough shall supply full and timely information to the Council
on all matters relating to the pay of all members of the Borough of
Mechanicsburg Nonuniformed Employees Pension Plan, their retirements,
deaths or other causes for termination of employment and such other
pertinent data as the Council may require, and the Council shall advise
the fiduciary with reasonable dispatch of such of the foregoing facts
as may be pertinent to the fiduciary's administration of the Fund.
[Ord. 966, 12/19/1989, § 6; as amended by Ord.
1096, 5/20/2007, § 1]
1. This agreement shall cover all full-time nonuniformed employees of
the Borough of Mechanicsburg, hereinafter referred to as "member."
Every full-time nonuniformed employee of the Borough shall be a member
covered under this agreement and be entitled to the benefits provided
hereunder as of the first day following the sixth month anniversary
of continuous employment with the Borough.
2. Every member who has first met the coverage requirement of Subsection
1 of this section, who shall thereafter leave the service of the Borough and subsequently return to Borough service after such intervening time, shall be re-credited with the employee's prior service only if the employee repays any refund of contributions, plus interest, which the employee received prior to the employee's termination with the Borough.
[Ord. 966, 12/19/1989, § 7]
The normal retirement date of a member shall be the day on which
the member has attained 62 years of age and has completed 10 years
of service.
[Ord. 966, 12/19/1989, § 8]
The basic monthly pension benefit shall be 50% of the monthly
average compensation of such member during the last 60 months of employment.
Such monthly retirement benefit shall be payable during the lifetime
of the retiring member, with payments guaranteed for the first 120
months. The retiring member may choose another actuarial equivalent
form of payment at the date of retirement before payments commence.
[Ord. 966, 12/19/1989, § 9]
If a member continues to be employed by the Borough after his
normal retirement date, his monthly pension benefit shall not commence
until such member ceases to be employed by the Borough. The monthly
pension benefit payable to a member who retires after his normal retirement
date shall be equal to the greater of his benefit accrued to his late
retirement date or the actuarial equivalent of the monthly pension
benefit which he would have received had he retired on his normal
retirement date.
[Ord. 966, 12/19/1989, § 10]
A member is eligible to receive an early retirement benefit
after he has attained 55 years of age and has completed 10 years of
service. The monthly pension benefit payable to a member upon such
early retirement date shall be equal to such member's accrued benefit
as of his early retirement date, actuarially reduced for each month
that such member's early retirement date precedes his normal retirement
date.
[Ord. 966, 12/19/1989, § 11]
Upon the death of a member who has been married for at least
one year and who is eligible for early retirement at the time of death,
the surviving spouse shall receive a monthly pension benefit which
such member was eligible to receive if he had retired on the day of
this death and had elected to receive his monthly pension benefit
in a joint and 50% survivor optional form.
[Ord. 966, 12/19/1989, § 12]
If a member, before reaching his normal retirement date and
after having completed three years of total service for any reason,
ceases to be employed by the Borough as a nonuniformed employee, he
shall be entitled to a deferred monthly pension benefit payable on
his normal retirement date. The deferred monthly pension benefit shall
be equal to such member's accrued benefit as of his date of termination
multiplied by his vesting percentage based upon the number of years
of service completed at this date of termination as follows:
Years of Service
|
Vesting Percentage
|
---|
0 to 2 years
|
0%
|
3
|
10%
|
4
|
20%
|
5
|
30%
|
6
|
40%
|
7
|
50%
|
8
|
60%
|
9
|
70%
|
10
|
80%
|
11
|
90%
|
12 or more years
|
100%
|
Such member may elect to receive his vested deferred monthly
pension benefit prior to his normal retirement date after he has met
the eligibility requirements for early retirement. The monthly pension
benefit payable to the member upon such early retirement date shall
be equal to such member's vested accrued benefit as of his early retirement
date, actuarially reduced for each month that such member's early
retirement date precedes his normal retirement date.
|
[Ord. 966, 12/19/1989, § 13]
If the actuarial present value of a terminated member's vested
accrued benefit does not exceed $3,500, such value shall automatically
be paid to such member from the Fund in full satisfaction of all benefits
such member is entitled to receive under the Plan.
[Ord. 966, 12/19/1989, § 14]
A member's accrued benefit determined as of any date prior to
his normal retirement date shall be equal to 50% of the monthly average
compensation of such member during the last 60 months of employment,
multiplied by the percentage his years of service, including completed
months, to the date of determination bear to years of service, including
completed months, which he will have completed as of his normal retirement
date assuming continued employment until his normal retirement date
as a nonuniformed employee of the Borough of Mechanicsburg.
[Ord. 966, 12/19/1989, § 15]
All payments under the Plan shall be, to the fullest extent
permitted by law, free and clear of any debts, contracts, engagements,
anticipations or liability to levy, attachment, execution or sequestration
against the recipient, and shall not be subject to sale, assignment,
transfer, claim, judgment or bankruptcy proceedings against the recipient
of such payments, whether voluntary or involuntary.
[Ord. No. 966, 12/19/1989, § 16; as amended by Ord. 1144, 10/21/2014]
All members of the Plan shall pay into the Fund monthly an amount
of compensation as determined by annual resolution of Council.
[Ord. No. 966, 12/19/1989, § 17; as amended by Ord. 1144, 10/21/2014]
Council may, by ordinance or resolution, on an annual basis,
establish, reduce or eliminate payments into the Fund by members.
[Ord. No. 966, 12/19/1989, § 18; as amended by Ord. 1144, 10/21/2014]
1. Upon termination of full-time employment before completion of vesting,
a refund shall be made of any monies contributed by such full-time
employee, with interest at the rate of 4% per annum.
2. The surviving beneficiary of a full-time employee who dies before
his or her pension has vested shall be entitled to receive payment
of all money which the member invested in the Fund, plus interest.
[Ord. No. 966, 12/19/1989, § 19; as amended by Ord. 1144, 10/21/2014]
Any member of the Plan shall have the right:
A. To inquire of the Council as to his or her status or condition in
the Plan, including prospective benefits to which such member may
be entitled in the future;
B. To examine records of the Council pertaining to his or her pension
records; and
C. To appear personally before the Council with or without counsel and
to be heard on any matter pertaining to his or her rights under the
Plan.
[Added by Ord. 1144, 10/21/2014]
The Plan and Fund established by this Part may be discontinued,
modified, alternated, terminated or repealed according to law, by
ordinance or resolution.
[Added by Ord. 1144, 10/21/2014]
The provisions of the Part are severable, and if any of its
provisions shall be held to be illegal, invalid or unconstitutional,
the decision of the court so holding shall not affect or impair any
of the remaining provisions of this Part. It is hereby declared to
be the intent of the Borough Council of the Borough of Mechanicsburg
that this Part would have been adopted if such illegal, invalid or
unconstitutional provision or provisions had not been included herein.