[Adopted 3-19-1997 by Ord. No. 97-2]
A municipal employee pension fund is established for the benefit
of all full-time nonuniformed employees of Jackson Township. All part-time
employees of Jackson Township are hereby excluded from membership
in said plan.
A.
The Municipal Employees Pension Plan hereby created and established
shall derive the revenue necessary to maintain its operation in conformity
with law from the following sources:
(1)
Any sum or sums paid to Jackson Township from any official or department
of the Commonwealth of Pennsylvania under any present or future law
pertinent thereto.
(2)
Annual appropriations made by Jackson Township in amounts additionally
required to fund the plan.
(3)
Any and all amounts accumulated under any insurance or annuities
accumulated under any prior plan.
(4)
Any money or property, real, personal or mixed, in trust for the
benefit of such plan, received by the plan through gift, devise or
bequest.
B.
The total of all monies or property derived from the sources above
specified shall constitute the Jackson Township Municipal Employees
Pension Plan.
[Amended 9-17-1997 by Ord. No. 97-5]
As used in this Part 7, Article A, the following terms shall have the meanings indicated:
December 31.
Qualification for disability under the Federal Social Security
Act.
January 1, 1996.
Nonuniformed employee of the Township working at least 35
hours per week.
January 1; July 1.
First day of the month coincident with or following age 65.
Any employee who has met the requirements to participate in this plan as provided for in § 1-704 and has not, for any reason, become ineligible to participate further in the plan.
The pension plan set forth herein (including any trust forming
a part thereof), as amended and supplemented from time to time, all
of which shall be known as the "Jackson Township Municipal Employees
Pension Plan."
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
Calculated on an elapsed time basis, rounded to the nearest
year.
All employees of the Township shall be eligible to participate
on the effective date. Any employee hired after the effective date
shall be eligible to participate on the entry date coincident with
or following the first anniversary of the date of hire and attainment
of age 18.
[Amended 11-17-2011 by Ord. No. 11-07; 12-21-2023 by Ord. No. 23-05]
Each participant attaining a plan year of service will be allocated
a contribution of $4,500 for that year. Participants entering on the
July 1 entry date will receive a contribution of $2,250 for the initial
year. A participant who dies, retires, or becomes disabled in the
plan year will receive a pro-rata contribution calculated to the nearest
month, if the separation date is prior to July 1.
As of each allocation date, before allocation of contributions
and forfeitures for the year, the annual earning or losses of the
trust fund shall be allocated in the same proportion that each participant's
account balance (reduced by any distributions) bears to the total
of all participant's account balances (reduced by any distributions).
A.
The vested portion of any participant's account balance shall be
a percentage determined on the basis of the participant's number of
plan years of service according to the following schedule:
|
Plan Years of Service
|
Vesting Percentage
| |
|---|---|---|
|
Less than 3
|
0%
| |
|
3 or more
|
100%
|
B.
All employees who are participants as of the effective date are one-hundred-percent
vested. Any participant who dies, retires or becomes disabled becomes
one-hundred-percent vested regardless of the number of plan years
of service.
In the event of a termination of a nonvested participant, the
account balance will be forfeited and reallocated among the participants
employed as of year's end, receiving contribution allocations in proportion
to such allocations. The reallocation will occur in the plan year
following the termination.
Upon separation of service as a result of vested termination,
disability, death or retirement, the participant will be entitled
to receive the account balance as of the prior allocation date, plus
the current year's contribution allocation.
The proper officers of Jackson Township are hereby authorized
and empowered to execute and deliver on behalf of Jackson Township
agreements and such other documents as the Supervisors shall determine
to be necessary and proper to effectuate and implement the Jackson
Township Municipal Employees Pension Plan hereby established.
The pension payments herein provided for shall not be subject
to attachment or other legal process and shall be payable only to
the member or his designated beneficiary and shall not be subject
to assignment or transfer.
The expenses of the administration of this Part 7, Article A, if any, may be paid for by the plan.
The chief administrative officer, with the advice and consent
of the Board of Supervisors, is hereby authorized to appoint a trustee
or trustees (hereinafter called "trustee") and to enter into a trust
agreement with said trustee, upon such term or terms as the Board
of Supervisors shall establish, to invest and reinvest the fund and
to make payments out of the fund in accordance with the provisions
of the plan and trust agreement. The trustee may be a natural person
or persons or a corporation, including a financial institution.
[Adopted 9-20-1997 by Res. No. 97-11]
A.
Establishment of plan. Jackson Township hereby establishes the Deferred
Compensation Plan of Jackson Township Nonuniformed Pension Plan, effective
as of January 1, 1996. The plan shall be maintained for the exclusive
benefit of covered employees and is intended to comply with the eligible
deferred compensation plan requirements under Section 457 of the Internal
Revenue Code of 1986, as amended,[1] and regulations thereunder and other applicable law.
[1]
Editor's Note: See 26 U.S.C. § 457.
B.
Purpose of plan. The purpose of this plan is to enable employees
who become covered under the plan to enhance their retirement security
by permitting them to enter into agreements with the employer to defer
a portion of their compensation and receive benefits at retirement,
death or in the event of financial hardship due to unforeseeable emergencies.
Participation in this plan shall not be construed to establish or
create an employment contract between the employee and the employer.
Whenever used in the plan, the following terms shall have the meanings as set forth in this Part 7, Article B, unless a different meaning is clearly required by the context:
The individual or committee appointed by the employer to
administer the plan.
The person, persons or legal entity entitled to receive benefits
under this plan that become payable in the event of the participant's
death.
The Internal Revenue Code of 1986, as amended, and includes
any regulations thereunder.[1]
The total amount of remuneration earned by an employee for
personal services rendered to the employer for the calendar year,
including amounts deferred under this plan and any other deferred
compensation plan.
The annual amount of compensation that a participant elects
to defer pursuant to a properly executed voluntary salary deferral
agreement.
The account established and maintained on behalf of a participant as provided in § 1-728D.
Any person who performs services for the employer, either
as an employee or as an independent contractor, for which compensation
is paid on a regular basis.
Jackson Township and any agencies or instrumentalities thereof.
Compensation for services performed for the employer, which
compensation is currently includable in the employee's gross income
for the taxable year for federal income tax purposes; such term does
not include any amount excludable from gross income under this plan
or any other plan described in Section 457(b) of the Code,[2] any amount excludable from gross income under Section
403(b) of the Code,[3] any amount excludable from gross income under any pickup
program under Section 414(h)(2) of the Code[4] or any other amount excludable from gross income for income
tax purposes. Includable compensation shall be determined without
regard to any community property laws.
Any regulated investment companies registered under the Investment
Company Act of 1940, any common trust funds or collective investment
fund qualified under Sections 401 and 501 of the Code[5] and any other funding vehicle (including, but not limited
to, limited partnership interests) that the employer permits under
the terms of the plan.
The normal retirement age of the participant as determined
under the employer's basic pension plan (if any) in which the participant
is a member or such later date elected by the participant by written
instrument delivered to the administrator.
An employee or former employee who has been enrolled in this
plan and who retains the rights to benefits under the plan.
The Deferred Compensation Plan of Jackson Township, as it
may be amended from time to time.
The twelve-consecutive-month period beginning each January
and ending the following December during which this plan is in effect.
Any deferred compensation plan that is an eligible deferred
compensation plan as defined in Section 457 of the Code[6] that this plan amends and restates.
The agreement by and between the employer and Union Central
Life, or any successor recordkeeper appointed by the employer.
The severance of a participant's employment with the employer,
including retirement and death. Any participant who is granted a leave
of absence by the employer will not be treated as incurring a separation
from service as long as the leave of absence is approved by the employer.
If an approved leave of absence is terminated by the employer without
the resumption of the employment relationship, the participant shall
be treated as incurring a separation from service under this plan
as of the date of termination of such leave.
A severe financial hardship to the participant resulting from
a sudden and unexpected illness or accident of the participant or
of a dependent of the participant, loss of the participant's property
due to casualty or other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the participant.
The circumstances that will constitute an unforeseeable emergency
will depend upon the facts of each case, but in any case, payment
may not be made to the extent that such hardship is or may be relieved:
The need to send a participant's child to college or the desire
to purchase a home shall not be considered an unforeseeable emergency.
The agreement between a participant and the employer to defer
receipt by the participant of compensation not yet earned. Such agreement
shall state the deferral amount to be withheld from a participant's
paycheck and shall become effective no earlier than the first day
of the month following the execution of such agreement.
A.
Eligibility. Each eligible employee may become a participant in this plan on the first day of the month next following the date of commencement of employment as an eligible employee or on any January 1 or July 1 thereafter, after enrollment pursuant to Subsection B below. Any person elected or appointed to a term of office with the employer shall be deemed to commence employment at the time such person assumes office.
B.
Enrollment. Eligible employees may enroll in the plan by completing
a voluntary salary deferral agreement and submitting it to the administrator
prior to the first day of the month next following the date of commencement
of employment or prior to any January 1 or July 1 thereafter. Upon
enrollment as of any January 1 or July 1, deferrals will commence
as of the first day of the first pay period coincident with or next
following the January 1 or July 1 enrollment date or as soon as administratively
practicable thereafter. Upon enrollment as of the first day of the
month next following commencement of employment, deferrals will commence
as of the first day of the first pay period coincident with or next
following the first day of the month following the date of commencement
of employment or as soon as administratively practicable thereafter.
A.
Maximum deferral.
(1)
Primary limitation. The maximum deferral amount for any participant
in any taxable year shall not exceed the lesser of $7,500 or 33% of
the participant's includable compensation for the taxable year.
(2)
Catchup limitation. For each of the last three taxable years ending
before a participant's attainment of normal retirement age, the maximum
deferral amount shall be the lessor of:
(a)
Fifteen thousand dollars.
(b)
The sum of the primary limitation amount determined under Subsection A(1) above for the current year and that portion of the primary limitation amount not used in prior taxable years beginning after 1978 in which the participant was eligible to participate in the plan. A participant may use a prior year only if the deferrals under the plan in existence during that year were subject to the maximum deferral amount described in Treasury Regulations § 1.457-2(e) (1982). The catchup limitation is available to a participant during one three-year period only. If the participant uses the catchup limitation and then postpones retirement or returns to work after retirement, the catchup limitation shall not be available again.
(3)
Coordination with other plans. If a participant participates in more than one plan, the maximum deferral under all plans shall not exceed $7,500 [subject to modification by the catchup limitation described in Subsection A(2) above]. If a participant participates in a plan provided for under Section 403(b) of the Code,[1] amounts excluded from gross income in any taxable year under such plan shall reduce the primary limitation amount described in Subsection A(1) and (2) and the fifteen-thousand-dollar limitation in Subsection A(2)(a). Beginning January 1, 1989, the reduction described in the preceding sentence also applies with respect to amounts excluded from gross income of a participant because of participation in a plan under Code Section 401(k), Code Section 408(k) or Code Section 501(c)(18).[2]
B.
Minimum deferral. Each employee who becomes a participant must agree
to defer a minimum of $20 per month.
C.
Modifications to amount deferred. A participant may change deferrals with respect to compensation not yet earned on each open enrollment date (January 1 and July 1) and at one other time during the plan year by submitting a new, properly executed voluntary salary deferral agreement to the administrator. Such change shall take effect as soon as administratively practicable, but not earlier than the first day of the first pay period coincident with or next following the first day of the month following receipt by the administrator of the properly executed voluntary salary deferral agreement. Modifications (other than a revocation of participation as provided in Subsection D below) are subject to the limitations specified in the plan.
D.
Revocation of deferral. Any participant may revoke his or her election to have compensation deferred by so notifying the administrator in writing. The participant's full compensation on the nondeferred basis will then be restored as soon as administratively practicable, but no earlier than the first day of the first pay period coincident with or next following the first day of the month following receipt of such written notice by the administrator. Notwithstanding this subsection, the participant's benefits under the plan shall be paid only as provided in § 1-725.
E.
Duration of deferral election. Once a deferral election has been made by the participant, the election shall continue in effect until the participant's separation from service, unless the participant modifies the deferral in accordance with Subsection C above or revokes the deferral in accordance with Subsection D above.
A.
Eligibility for payment. Distribution of a participant's deferred
compensation account from the plan shall not be made earlier than
the calendar year in which the participant attains age 70 1/2;
the participant's separation from service; the participant's death;
or the date the participant incurs a financial hardship due to an
unforeseeable emergency.
B.
Distribution due to unforeseeable emergency.
(1)
A participant may request a distribution due to a severe financial
hardship by submitting a written request to the administrator accompanied
by evidence to demonstrate that the circumstances being experienced
qualify as an unforeseeable emergency. The administrator shall have
the authority to require such evidence as deemed necessary to determine
if a distribution is warranted. If an application for a hardship distribution
due to an unforeseeable emergency is approved, the distribution shall
be limited to an amount sufficient to meet the emergency. The allowed
distribution shall be payable in a method determined by the administrator
as soon as possible after approval of such distribution.
(2)
A participant who has commenced receiving installment payments under
the plan may request acceleration of such payments in the event of
severe financial hardship due to an unforeseeable emergency. The administrator
may permit accelerated payment to the extent such accelerated payment
does not exceed the amount necessary to meet the unforeseeable emergency.
C.
Commencement of distributions. Except as otherwise provided herein, distribution of a participant's deferred compensation account shall commence on the first day of the first calendar month commencing at least 60 days after the participant's attainment of normal retirement age, or as soon as practicable thereafter, and the distribution of the deferred compensation account shall be made in accordance with one of the payment options described in § 1-726B. Notwithstanding the preceding, within 30 days following the participant's separation from service, the participant may irrevocably elect to have the distribution of his or her deferred compensation account commence on the first day of any calendar month that is at least 60 days after the participant's separation from service. Notwithstanding the preceding, distribution of a participant's deferred compensation account must commence no later than the first day of April following the calendar year in which the later of the participant's termination of employment with the employer or the participant's attainment of age 70 1/2 occurs.
D.
Death distribution provisions.
(1)
Death after distribution. If the participant dies after the distribution of his or her interest has commenced, the remaining portion of his or her deferred compensation account will be distributed to the beneficiary determined pursuant to § 1-727 in the form of a lump sum payment as soon as administratively practicable after the participant's death.
A.
Election. A participant may elect the form of distribution of his
or her deferred compensation account and may revoke that election
(with or without a new election) at any time before 30 days preceding
the date distribution of the participant's deferred compensation account
is to commence, as provided in the plan, by notifying the administrator
in writing, subject to the administrator's approval.
B.
Limits on settlement options.
(1)
Distributions may be made in a lump sum cash payment or in substantially
equal semiannual or annual installment payments over a period of years
not longer than the life expectancy of the participant (as determined
under Tables V and VI of Treasury Regulations § 1.72-9).
(2)
Notwithstanding any provision to the contrary, if the deferred compensation
account of a participant is equal to or less than $3,500 on the participant's
date of separation from service, the deferred compensation account
shall be distributed in a lump sum cash payment as soon as administratively
practicable after the participant's separation from service.
C.
Failure to make election. If a participant or beneficiary fails to
elect a form of distribution before 30 days preceding the distribution
commencement date, benefits shall be paid in a lump sum cash payment.
A.
Designation. A participant shall have the right to designate a beneficiary
or beneficiaries and amend or revoke such designation at any time
in writing. Such designation, amendment or revocation shall be effective
upon receipt of such written designation by the administrator.
B.
Special rules. The designated beneficiary or beneficiaries will receive the balance of the participant's deferred compensation account upon the participant's death in accordance with § 1-725D and the following:
(1)
Participants may designate primary and secondary beneficiaries. A
secondary beneficiary and/or beneficiaries will become entitled to
a distribution of any remaining balance of the participant's deferred
compensation account only after the death of any and all primary beneficiaries.
(2)
If more than one beneficiary is named in either category, benefits
will be paid according to the following rules:
(a)
Beneficiaries can be designated to share equally in, or to receive
specific percentages of, the remaining balance, if any, of the participant's
deferred compensation account.
(b)
If a beneficiary dies before the participant, only the surviving
beneficiaries will be eligible to receive any benefits in the event
of the death of the participant. If more than two beneficiaries are
originally named to receive different percentages of the benefits,
surviving beneficiaries will share in the same proportion to each
other as indicated in the original designation.
(3)
A person, trustee, estate or other legal entity may be designated
as a beneficiary.
(4)
If a beneficiary has not been designated, or a designation is ineffective
due to the death of any and all beneficiaries prior to the death of
the participant or the designation is ineffective for any reason,
the estate of the participant shall be the beneficiary.
(5)
Upon the death of the participant, any beneficiary entitled to the
value of the deferred compensation account under the provisions of
this section shall become a vested beneficiary and have all the rights
of the participant, with the exception of making any deferrals, including
the right to designate a beneficiary(ies).
A.
Plan administration. The employer shall be responsible for appointing
an administrator to administer the plan. Such administrator may be
an individual and/or a committee authorized to act collectively on
behalf of the plan. The administrator shall have responsibility for
the operation and administration of the plan and shall direct payment
of plan benefits. The administrator shall have the power and authority
to adopt, interpret, alter, amend or revoke rules and regulations
necessary to administer the plan and delegate ministerial duties and
employ such outside professionals as may be required for prudent administration
of the plan. The administrator shall also have authority to enter
agreements on behalf of the employer necessary to implement this plan.
The administrator, if otherwise eligible, may participate in the plan,
but shall not be entitled to make decisions solely with respect to
his or her own participation. If the employer appoints an individual
and a committee as administrator of the plan, the employer shall designate
the division of the duties hereunder between the individual and the
committee.
B.
Ownership of assets. All amounts of compensation deferred under the plan, all property and rights purchased with such amounts and all income attributable to such amounts, property or rights shall remain (until made available to the participant or beneficiary) solely the property and rights of the employer (without being restricted to the provisions of benefits under the plan) and shall be subject to the claims of the employer's general creditors, and the right of any participant or beneficiary to the payment of benefits under this plan shall be no greater than the right of any unsecured general creditor of the employer. Nothing in this section shall prevent the plan from permitting the participants to request that these amounts be invested among the different investment options under the plan as provided in Subsection E below.
C.
Plan-to-plan transfers.
(1)
Notwithstanding any other provisions under the plan, amounts deferred
by a former participant of the plan shall, instead of being distributed
upon separation from service, be automatically transferred to another
eligible deferred compensation plan in which the former participant
has become a participant, provided:
D.
Accounts and expenses. The employer shall establish and maintain a deferred compensation account on behalf of each participant. Such deferred compensation account shall be valued at fair market value as of the last day of the plan year and such other dates as necessary for the proper administration of the plan, and each participant shall receive a written accounting at least quarterly of his or her deferred compensation account balance following such valuation. Such accounting shall be made 30 days after the end of the quarter or as soon as administratively practicable thereafter. Each participant's deferred compensation account shall be credited with the amount of any deferrals and any amounts transferred pursuant to Subsection C above and shall be further credited or debited, as applicable, with any increase or decrease resulting from investments pursuant to Subsection E below; any expenses incurred by the employer in maintaining and administering this plan, which may be paid out of the plan as designated in the recordkeeping agreement or in the trust agreement; the amount of any distribution; and the value on the effective date of this plan of any deferred compensation account maintained under the prior plan.
E.
Investments. A participant may request that deferrals be allocated
among the available investment options established by the administrator.
The initial allocation request may be made at the time of enrollment.
Once made, an investment allocation request shall remain in effect
for all subsequent deferrals until changed by the participant. A participant
may change his or her investment allocation at such times as permitted
by the administrator by submitting a written request to the administrator
on such form as may be required by the administrator. Such changes
shall become effective as soon as administratively practicable after
the administrator's receipt of such written investment allocation
election. While the employer intends to invest deferrals according
to the participant's requests, it reserves the right to invest deferrals
without regard to such requests.
A.
Amendment of plan. The employer shall have the right to amend the
plan at any time and from time to time, in whole or in part.
B.
Termination. Although the employer has established this plan with the intention and expectation to maintain the plan indefinitely, the employer may terminate or discontinue the plan in whole or in part at any time without any liability for such termination or discontinuance. Upon plan termination, all deferrals shall cease. The employer shall retain all deferrals until distribution of benefits commences under § 1-725 in the form determined under § 1-726.
A.
Limitation of rights. Neither the establishment of this plan nor
any modification thereof, nor the creation of any fund or account,
nor the payment of any benefits, shall be construed as giving a participant
or other person any legal or equitable right against the employer,
except as provided in the plan.
B.
No contract of employment. Nothing in this plan shall be deemed to
be an agreement, consideration, inducement or condition of employment,
nor shall the rights or obligations of the employer or of any employee
employed by the employer to continue or terminate employment at any
time be affected hereby.
C.
Limitation on assignment. Benefits under this plan may not be assigned,
sold, transferred or encumbered, and any attempt to do so shall be
void. A participant's or beneficiary's interest in benefits under
the plan shall not be subject to debts or liabilities of any kind
and shall not be subject to attachment, garnishment or other legal
process.
D.
Representations. The employer does not represent or guarantee that
any particular federal or state income, payroll, personal property
or other tax consequence will result from participation in this plan.
A participant should consult with professional tax advisors to determine
the tax consequences of his or her participation. Furthermore, the
employer does not represent or guarantee successful investment of
deferrals and shall not be required to repay any loss that may result
from such investment or lack of investment.
E.
Severability. If a court of competent jurisdiction holds any provisions
of this plan to be invalid or unenforceable, the remaining provisions
of the plan shall continue to be fully effective.
F.
Applicable law. This plan shall be construed in accordance with applicable
federal law and, to the extent otherwise applicable and to the extent
not superseded by applicable federal law, the laws of the state of
the employer's domicile.
[Amended 11-21-2002 by Ord. No. 02-11]
The Township shall provide a pension plan document which may be amended from time to time by resolution of the Board of Supervisors and which shall be the separate governing regulations of the Municipal Employees Pension Plan. The pension plan regulations in this Part 7, Article B, shall remain in effect until such time as the Board of Supervisors adopts a separate pension plan document.
