[Adopted 3-26-1963 by Ord. No. 506A (Ch. 1, Part 8A, of the 2003 Code
of Ordinances)]
A police pension and retirement fund is hereby established by
the City of Lock Haven, which shall be known and designated as the
"Police Pension Fund" and shall hereafter be referred to in this article
as the "fund."
The fund shall be maintained, directed, applied and distributed
pursuant to the provisions herein contained and the regulations adopted
pursuant hereto for the benefit of the members of the association
herein created.
[Amended 5-1-1972 by Ord.
No. 826A; 2-16-1976 by Ord. No. 950A; 4-21-1980 by Ord. No. 106B; 12-30-1985 by Ord. No. 233B; 8-3-1998 by Ord. No. 561B; 2-24-2003 by Ord. No. 670[1]]
A Board of seven members is hereby constituted and created,
which shall be known and designated as the "Police Pension Fund Board,"
and hereinafter referred to in this article as the "Board," and which
shall consist of the following:
A.
The City Treasurer of the City of Lock Haven, whose membership shall
be concurrent with his term of office as said Treasurer. The City
Treasurer shall be the Treasurer of the Police Pension Fund Board.
B.
Three Councilmen of the City of Lock Haven, who shall be appointed
by the vote of City Council and who shall serve for terms of two years
or until a successor is appointed. A vacancy occurring during a term
shall be filled for the unexpired term by the election of a successor
in the same manner as his predecessor.
C.
Two members of that group consisting of active members of the police
force, whose membership to said Board shall be by election by the
active members of the police force and whose term of office shall
be three years. Terms of office shall be staggered to provide continuity
of Board membership. A vacancy occurring during a term of office shall
be filled for the unexpired term by election of a successor in the
same manner as his predecessor.
D.
One member of that group consisting of retired members of the police force, whose membership to said Board shall be by election by retired members of the police force. The term of office shall be for three years and shall not be concurrent with the term of either of the members of the Board elected pursuant to Subsection C above. A vacancy occurring during a term of office shall be filled for the unexpired term by election of a successor in the same manner as his predecessor. The terms of Board members elected by ballots dated April 1996 are hereby extended through February 28, 1999, at which time a new term of office shall be filled by a new election. Said term shall not be concurrent with the terms of either member of the Board elected pursuant to Subsection C above.
The members of the Board shall serve without compensation, but
shall be reimbursed from the fund for any necessary expenditures,
and no member shall suffer loss of salary or wages through serving
on the Board.
[Amended 3-3-1970 by Ord.
No. 762A]
A.
The Board may, from time to time, with approval of Council of the
City and subject to the limitations of this article and of law:
(1)
Establish
rules and regulations for the administration of the fund and the transaction
of its business. All such rules and regulations shall, however, be
subject to the approval of Council; and Council may, from time to
time, by ordinance, alter, modify, change or repeal such rules and
regulations and establish new rules and regulations for the administration
of the fund by the Board and the transaction of its business.
(2)
Appoint
a Secretary and such medical, clerical and other employees as may
be necessary.
(3)
Determine
and fix the compensation of all persons employed by the Board.
B.
A corporate depository chosen by the Board shall care for, manage,
invest and dispose of (as part of the fund) all money or property,
real, personal or mixed, taken by the City of Lock Haven by gift,
grant, devise or bequest, in trust, for the benefit of such pension
fund, subject to the provisions of this article and future regulations
by Council, and subject to such directions not inconsistent therewith
as the donors of such funds and property may prescribe.
[Amended 3-3-1970 by Ord.
No. 762A; 4-21-1980 by Ord. No. 106B; 2-24-2003 by Ord. No. 670]
The Board shall, with approval of Council of the City and subject
to the limitations of this article and of law:
A.
Hold an annual meeting during the second calendar quarter of each
year and thereat present the annual report of the depository showing
the condition of the investments of the fund and evidencing receipts,
charges and disbursements during the previous year, which depository
report will be made part of the record of the proceedings and a copy
of which shall be filed with the Council of the City of Lock Haven,
and copies of which shall be furnished to each member of the association
requesting the same.
B.
Hold such special meetings as the efficient discharge of their duties
require; and the Chairman may, and upon request in writing of three
members of the Board shall, call special meetings of the Board upon
24 hours' notice to each member, which notice shall state whether
such meeting is to be convened for special or general business; but
such notice may be waived by unanimous consent of the members.
C.
Designate a depository or depositories for the fund, which designation
shall be valid until rescinded and another is designated by similar
action; and the Treasurer of the Board shall immediately deposit all
monies in the fund therewith in the name of the fund.
D.
Keep all records and accounts as shall be necessary for the efficient
execution of this article.
E.
Furnish to Council such financial and other reports as it may, from
time to time, request.
[Amended 3-7-1977 by Ord.
No. 6B; 4-20-1981 by Ord. No. 130B]
An association is hereby constituted and created which shall
be known and designated as the "Police Pension Fund Association,"
herein referred to as the "Association."
A.
The membership of the Association shall consist of each active member
of the police force now or hereafter employed by the City of Lock
Haven. Admission to membership shall be automatic by virtue of such
employment and each person so employed shall and must become a member
of the Association.
B.
Each active member of the police force shall contribute to the fund
in accordance with this article from the date of his employment as
a member of the police force.
The members of the Association shall, subject to the limitations
of this article and of law:
A.
Establish rules and regulations for the administration and transaction
of its business.
B.
Elect officers in accordance with established rules and regulations
to represent the Association.
C.
Certify to the Board and Council annually a list of the members of
the Association in good standing and the amount of salaries and wages
paid to each member as a member of the police force of the City, together
with a list of members of the Association who were during said year
dismissed, or who resigned or terminated their service, and the date
thereof.
D.
Furnish to the Board and Council, upon request, such information
relative to the subject of this article as the Board or Council shall
require.
The fund shall be under, and is hereby committed to, the direction
and control of the Board.
[Amended 3-3-1986 by Ord.
No. 233B]
The City of Lock Haven shall annually appropriate and pay into
the fund not less than the minimum obligation as required by the Municipal
Pension Plan Funding Standard and Recovery Act (Act 205 of 1984) as
certified to the Council of the City by the chief administrative officer
in accordance with Section 304 of the aforesaid Act.[1]
[1]
Editor's Note: See 53 P.S. § 895.304.
[Amended 3-3-1970 by Ord.
No. 762A]
The depository shall invest the principal of the fund and any
accumulated interest thereon not necessary for the immediate payment
of pensions hereunder in:
A.
The bonds or obligations of the United States or the United States
Treasury, or those for the payment of principal and interest on which
the faith and credit of the United States is pledged.
B.
Bonds or other interest bearing obligations of the Commonwealth of
Pennsylvania, or those for the payment of principal and interest on
which the faith and credit of the Commonwealth is pledged.
C.
Bonds or other interest-bearing obligations of any county, City,
borough, township or school district of the Commonwealth of Pennsylvania,
or those for the payment of which the faith and credit of such political
subdivision is pledged; provided, that at the date of the investment
in such bonds or other interest-bearing obligations, such political
subdivision is not in default in payment of principal or interest
owed by it on any part of its bonded indebtedness.
D.
Any other investment which is legal for fiduciaries.
The pension herein provided for shall not be subject to attachment
or execution and shall be payable only to the beneficiary designated
and shall not be subject to assignment or transfer.
[Amended 2-2-1965 by Ord.
No. 533A; 11-30-1965 by Ord. No. 542A; 2-1-1966 by Ord. No. 561A; 7-2-1968 by Ord. No. 664A; 2-18-1969 by Ord. No. 709A; 3-3-1970 by Ord. No. 762A; 12-20-1971 by Ord. No. 809A; 3-7-1977 by Ord. No. 6B; 6-20-1977 by Ord. No. 40B; 6-20-1977 by Ord. No. 41B; 12-30-1985 by Ord. No. 233B; 3-3-1986 by Ord. No. 236B; 12-19-1994 by Ord. No. 482B]
C.
Upon becoming eligible for the commencement of payments pursuant to Subsections A and B herein, the member shall apply to the Board and, after the aforesaid date, the Board shall pay said member from the fund during the remainder of his or her natural life, in monthly installments, a pension in an amount annually equal to 50% of the highest one year's W-2 earnings during the last three years of service immediately preceding retirement from active service as a police officer.
D.
Surviving spouse benefits.
[Amended 10-3-2011 by Ord. No. 889[1]]
(1)
The surviving spouse of a member of the Association who retires on
pension or who has attained 20 or more years of active service with
the City of Lock Haven police force and has attained the age of 50
years shall be entitled to benefits. The surviving spouse shall be
eligible for benefits for the remainder of the surviving spouse's
lifetime or until the surviving spouse remarries. If no spouse survives,
or if the surviving spouse subsequently dies or remarries, then the
child or children, under 18 years of age, of the member of the Association
who retires on pension or who has attained 20 or more years of active
service with the City of Lock Haven police force and has attained
the age of 50 years who dies from causes which would not entitle his
survivors to a survivor annuity under the terms of Pennsylvania Act
51 of 2009[2] shall be entitled to benefits until reaching the age of 18 years. Such benefits shall be paid in monthly installments to those entitled to receive benefits in the amount of 50% of the benefit that the member was receiving at the time of his death or was entitled to receive at the time of his death had he retired at the time of his death. No survivor benefit shall be payable in the event of the death of a member who terminates employment with entitlement to a vested benefit under § 99-14 but has not commenced that benefit at the time of his death.
[2]
Editor's Note: See 53 P.S. § 891.
(2)
Applications for such benefit shall be made to the Board after the
death of the member of the Association. Each member of the Association
shall contribute monthly to the fund an amount equal to 1/2 of 1%
of the member's monthly salary for survivor benefits.
E.
"Salary," as used in this section, shall be construed to mean the
base minimum compensation, plus the longevity increment received by
the member and shall not be construed to include any overtime pay
received by the member.
F.
In addition to the retirement allowance which is authorized to be
paid from the Police Pension Fund and notwithstanding the limitations
therein placed upon such retirement allowances and upon contributions,
every contributor who shall become entitled to the retirement allowance
shall also be entitled to the payment of a "service increment" in
accordance with and subject to the conditions hereafter set forth:
(1)
"Service increment" shall be the sum obtained by computing the number
of whole years after having served the minimum required by this article
for the vesting of a pension during which a contributor has been employed
by such City and paid out of the City treasury and multiplying the
said number of years so computed by an amount equal to 1/40 of the
retirement allowance which has become payable to such contributor
in accordance with the provisions of this article. No service increment
shall be paid in excess of $100 per month.
(2)
Each contributor, beginning on January 1, 2012, will pay into the
retirement fund a monthly sum equal to 1% of total W-2 earnings. This
contribution is in addition to any contribution for any other benefits
paid under the pension fund, including widow and spouse benefits and
longevity.[3]
(3)
Service increment contribution shall be paid at the same time and
in the same manner as retirement contributions and may be withdrawn
in full, without interest, by persons who leave the employment of
such City, subject to the same conditions by which retirement contributions
may be withdrawn, or by persons who retired before becoming entitled
to any service increment.
[Amended 2-2-1965 by Ord.
No. 533A; 11-30-1965 by Ord. No. 542A; 2-1-1966 by Ord. No. 561A; 7-2-1968 by Ord. No. 664A; 2-18-1969 by Ord. No. 709A; 3-3-1970 by Ord. No. 762A; 12-20-1971 by Ord. No. 809A; 3-7-1977 by Ord. No. 6B; 6-20-1977 by Ord. No. 40B; 6-20-1977 by Ord. No. 41B; 12-30-1985 by Ord. No. 233B; 3-3-1986 by Ord. No. 236B; 12-19-1994 by Ord. No. 482B; 10-1-2001 by Ord. No. 620B]
A.
Effective for police officers who terminate employment on or after
January 1, 1999, a limited vested benefit shall be available pursuant
to the provisions below. As such, should a member of the Police Pension
Fund ("fund"), before completing the minimum age and minimum period
of continuous service requirements, but after having completed 12
years of full-time service with the City of Lock Haven Police Department
("service") so elected, the member shall be entitled to vest his pension
benefit subject to the following conditions:
(1)
The member must file with the Police Pension Board ("Board") of the
fund a written notice of his or her intention to vest.
(2)
The member must include in the notice, the date the member intends
to terminate his or her service, and must acknowledge that there is
no entitlement to post-retirement medical benefits pursuant to this
limited vested benefit unless the member shall have accrued at least
20 years of service, then any possible entitlement to post-retirement
medical benefits shall be as described in the Act 111 Arbitration
Award (14 L 360 01572 94J) dated February 5, 1996.
(3)
The member must be in good standing with the Police Department on
the date of notice to vest.
(4)
The Board shall indicate on the notice to vest the highest one year's
W-2 earnings during the last three years of service preceding said
date.
(5)
The member shall forgo any other benefits under the plan.
B.
Upon reaching the date which would have been the member's retirement
date had the member continued his full-time employment with the Police
Department, the member shall notify the Board, in writing, that the
member desires to collect his or her pension. The amount of retirement
benefits the member is entitled to receive pursuant to this provision
shall be computed as follows:
(1)
The initial determination of the member's base retirement benefits
shall be computed on the highest one year's W-2 earnings during
the last three years of service indicated on the notice to vest.
(2)
The portion of the base retirement benefits due the member shall
be determined by applying to the base amount the ratio determined
by the number of years of service at termination divided by 20, which
represents the minimum number of years of service required to receive
base retirement benefits. These benefits will not be payable until
the member reaches the age of 50.
|
Examples
| |||
|---|---|---|---|
|
Years at Vesting
|
Normal1 Retirement Years
|
Actual Benefit2 Multiplier
for Vesting
|
% of Salary at Retirement
|
|
12
|
20
|
12/20
|
30%
|
|
13
|
20
|
13/20
|
32.5%
|
|
14
|
20
|
14/20
|
35%
|
|
15
|
20
|
15/20
|
37.5%
|
|
16
|
20
|
16/20
|
40%
|
|
17
|
20
|
17/20
|
42.5%
|
|
18
|
20
|
18/20
|
45%
|
|
19
|
20
|
19/20
|
47.5%
|
|
20
|
20
|
20/20
|
50%
|
|
NOTES:
| |
|---|---|
|
1
|
Normal retirement = 20 years of service.
|
|
2
|
To be multiplied by the base amount of retirement at normal
retirement.
|
[Amended 3-2-1971 by Ord.
No. 789A; 12-30-1985 by Ord. No. 233B; 3-3-1986 by Ord. No. 236B]
A.
Definitions.
(1)
INJURY
INJURY SUSTAINED WHILE IN THE COURSE OF ACTIVE DUTY AS A MEMBER
OF THE POLICE FORCE
PERMANENT DISABILITY
As used in this chapter, the following terms shall have the meanings
indicated:
Only violence to the physical structure of the body and such
disease or infection as naturally results therefrom.
Shall not include an injury caused by an act of a third person
intended to injure the member because of reasons personal to him,
but shall include all other injuries sustained while the employee
is actually engaged in the furtherance of his duties as a member of
the police force.
A physical condition that permanently prevents the member
from discharging the duties of an active member of the police force.
(2)
The terms "salary," "wage," "monthly salary," "monthly wage or salary,"
"salaries and wages" or any other similar term as used throughout
this article shall be construed to mean the base minimum compensation,
plus longevity increment received by the member and shall not be construed
to include any overtime pay received by the member.
B.
Disability benefits. The Board shall pay to each member of the Association
who, after one year of service on the police force, shall be permanently
disabled as a result of an injury sustained in the course of active
duty as a member of the police force, a monthly disability benefit
equal to 2 1/2% of the member's final monthly salary times
the member's complete years of service; provided, however, that
the maximum disability benefit shall be 50% of the member's final
monthly salary.
C.
The pension provided for in this section shall be paid in monthly
installments and during such periods as there shall be sufficient
principal in the fund to make the payments.
D.
A pension provided for in this section shall be paid in addition
to any workmen's compensation or benefits which the member shall
receive by reason of disability.
E.
The surviving spouse of an Association member receiving disability
pension hereunder at the time of death shall be eligible for benefits
the remainder of the surviving spouse's lifetime or until the
surviving spouse remarries. If there is no surviving spouse, or if
the surviving spouse subsequently dies or remarries, then the child
or children under 18 years of age of such deceased member of the Association
shall be entitled to benefits until reaching the age of 18. Such benefits
shall be paid in monthly installments to those entitled to receive
benefits and shall be calculated at the rate of 50% of the disability
pension the member was receiving at the time of death. Application
for such benefit shall be made to the Board after the death of the
member of the Association.
[Amended 1-19-1998 by Ord. No. 539B-A; 2-24-2003 by Ord. No. 670]
A.
If a member of the Association contributing to the fund shall be
dismissed by the City, or for any cause cease to be a member of the
Association before he becomes entitled to a pension hereunder, the
total amount of the contribution paid into the fund by the member,
except life insurance premiums, shall upon request be refunded in
full, without interest.
B.
If a member of the Association enters into the active military or
naval service of the United States government and shall, at the time
of his entry into such service or immediately thereafter, file with
the City Treasurer a statement under oath setting forth that he intends
to retain his position with the City of Lock Haven and resume his
duties at the expiration of his military or naval service, and such
member shall pay to the fund monthly during the time he is in such
military or naval service a sum equal to that which he would have
paid had he been a member during the period for which he desires credit,
then in such case the period of his military or naval service shall
be included in computing his years of service in the employ of the
City.
C.
In the event of the death of a member of the Association before he
becomes entitled to the pension herein provided for, the total of
the contributions paid into the fund by said member shall be paid
to the estate of said deceased employee, without interest.
D.
In the event of the death of a member of the Association while receiving
pension hereunder, but before the amount of the pension received shall
equal the total amount of contributions paid into the fund, the difference
between the amount received as pension and the amount contributed
to the fund by the deceased member shall be paid to the estate of
said deceased employee, without interest.
E.
A member of the police pension fund who is a contributor or who served
in the armed forces of the United States subsequent to September 1,
1940, and who was not a member of the police pension plan fund prior
to such military service, shall be entitled to have full credit for
each year or fraction thereof, not to exceed three years of such service,
upon his payment to the police pension fund an amount equal to that
which he would have paid had he been a member during the period for
which he desires credit, and his payment to such fund of an additional
amount as the equivalent of contributions of the City on account of
such military service. The amount to be paid by the member for purchase
of military service shall be determined by the fund's actuary.
This provision shall apply irrespective of date of employment.
[Amended 11-4-2013 by Ord. No. 925]
A person receiving a pension hereunder, who serves in any City
office to which he was elected by popular vote, during the term of
said office, said person shall not be entitled to said pension.
[Amended 3-3-1970 by Ord.
No. 762A]
All disbursements from the fund shall be by check or order drawn
by the authorized depository.
Payments of pensions or allowances under this article shall
be made solely out of the moneys and property in the Police Pension
Fund and shall not be a charge on any other fund in the treasury of
the City or under its control.
The Treasurer shall give surety bond approved by the Board in
such sum as the Board may determine for the faithful performance of
his duties. The premium for such bond shall be paid by the Board out
of the funds entrusted to them.
It shall be the duty of the Treasurer to keep account of all
moneys coming into his hands belonging to the Board and of all disbursements
of the same. All moneys received by the Treasurer shall forthwith
be deposited in the depository chosen by the said Board in the name
of the Police Pension Fund.
[Amended 3-3-1970 by Ord.
No. 762A]
The depository or someone employed by it shall at least once
a year submit to the Board and to the Council of the City of Lock
Haven a statement of the financial condition of the fund and of the
accounts received and paid out during the year, and of all investments
made by the depository and the condition of such investments.
[Added 4-21-1980 by Ord.
No. 106B]
There is hereby created a Retirement Committee composed of the
Treasurer of the Board and the Secretary of the Board. The Committee
shall receive applications for benefits, shall approve or disapprove
applications and shall transmit approved applications to the depository
for benefit payments in accordance therewith. The Board may designate
the Committee to execute any document(s) on behalf of the Board, in
which event the Board shall notify the depository in writing of such
action.
[Added 12-17-2001 by Ord.
No. 625B; amended 2-2-2009 by Ord. No. 833]
A.
LEASED EMPLOYEE
LIMITATION YEAR
Definitions. The following words and phrases are hereby introduced
and defined for purposes of this section only:
Effective as of January 1, 1997, any person (other than an
employee of the recipient) who, pursuant to an agreement between the
recipient and any other person ("leasing organization"), has performed
services for the recipient [or for the recipient and related persons
determined in accordance with Code Section 414(n)(6)[1]] on a substantially full-time basis for a period of at
least one year, and such services are under primary direction and
control of the recipient.
The plan year, for purposes of applying the limitations under
the current article.
[1]
Editor's Note: See 26 U.S.C. § 414(n)(6).
B.
Maximum annual benefit.
(1)
General rule. Except as otherwise provided, this plan shall at all
times comply with the provisions of Code Section 415[2] and the regulations thereunder, the terms of which are
specifically incorporated herein by reference. If a benefit payable
to a participant under this plan would otherwise exceed the limit
under Code Section 415, the benefit will be reduced to the maximum
permissible benefit.
[2]
Editor's Note: See 26 U.S.C. § 415.
(2)
Effective date. If there is more than one permissible effective date
for any required change in the Code Section 415(b)[3] provisions, then the change shall be effective as of the
latest permissible effective date; however, any adjustment in the
dollar limit under Code Section 415(b)(1)(A),[4] whether required or permissible, shall take effect automatically
as of the earliest permissible effective date. The "applicable mortality
table" in Revenue Ruling 2001-62 became effective as of December 31,
2002, and shall remain effective through December 31, 2007. The "applicable
mortality table" and "applicable interest rate" after December 31,
2007, is found in Revenue Ruling 2007-67.
(3)
No reduction in accrued benefits. Notwithstanding the above, no change
in the limits under this section shall reduce the benefit of any participant.
(4)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(b),[5] and if the aggregated benefits would otherwise exceed
the limit under Code Section 415(b), then benefits shall be reduced
first under this plan.
[5]
Editor's Note: See 26 U.S.C. § 415(b).
(5)
Mandatory contributions. Participant contributions are annual additions,
and any benefit attributable to participant contributions is not included
in the benefit subject to the limits of Code Section 415(b).[6] This subsection does not apply to contributions "picked
up" in accordance with Code Section 414(h).[7]
(6)
Permissive service credit. Effective as of January 1, 1998, if a
participant makes a purchase of permissive service credit [within
the meaning of Code Section 415(n)[8]] under the plan, the benefit derived from the contributions
made to purchase the service credit shall be treated as part of the
benefit subject to the limitations under this section.
[8]
Editor's Note: See 26 U.S.C. § 415(n).
(7)
Benefit less than $10,000. Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitations of this section, provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability retirement benefit or a death benefit, with fewer than 10 years of service, the limitation expressed in this Subsection B(7) shall be reduced by 1/10 for each year of service less than 10, but in no event shall this limitation be less than $1,000. In the event that a participant has less than 10 years of service with the employer, the limitation of this section shall be reduced by multiplying the otherwise applicable limitation by a fraction, the numerator of which is the number of years of service with the employer.
[Added 10-1-2012 by Ord.
No. 910]
C.
Limit on annual additions.
(1)
Annual additions. Except as otherwise provided, annual additions
(which include participant contributions) under this plan shall at
all times comply with the provisions of Code Section 415(c)[9] and the regulations thereunder, the terms of which are
specifically incorporated herein by reference. If an annual addition
would otherwise exceed the limit under Code Section 415(c), the excess
annual addition will be eliminated in accordance with methods permitted
under Revenue Procedure 2008-50 (Revenue Procedure 2006-27 prior to
2009) or its successor.
[9]
Editor's Note: See 26 U.S.C. § 415(c).
(2)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(c),[10] and if the annual additions would otherwise exceed the
limit under Code Section 415(c), annual additions will first be reduced
under the other plan. If there is more than one other plan, annual
additions will first be reduced under the plan with the greatest amount
of annual additions.
[10]
Editor's Note: See 26 U.S.C. § 415(c).
(3)
Effective date. The limits under which Code Section 415(c)[11] are adjusted periodically in accordance with changes in
the law or cost-of-living adjustments without the need for a plan
amendment. If there is more than one permissible effective date for
any required change relating to Code Section 415(c), then the change
shall be effective as of the earliest permissible effective date.
[11]
Editor's Note: See 26 U.S.C. § 415(c).
(4)
Code Section 415 compensation. For the purposes of the annual additions
limitations of Code Section 415(c)[12] and this section, "compensation" includes wages within
the meaning of Section 3401(a)[13] (for the purpose of income tax withholding at the source),
plus amounts that would be included in wages but for an election under
Code Sections 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 401(k) or
457(b).[14] However, any rules that limit the remuneration included
in wages based on the nature or location of the employment or the
services performed [such as the exception for agricultural labor in
Section 3401(a)(2)[15]] are disregarded for this purpose. For limitation years
beginning prior to January 1, 1998, elective deferrals under Code
Section 402(g)[16] and amounts elected under Sections 125(a), 132(f)(4),
401(k) or 457(b)[17] are excluded from "compensation." Effective as of January
1, 2009, to the extent required by the Heroes Earnings Assistance
Tax Relief Tax Act of 2008 (HEART Act), differential wage payments
shall be included in compensation.
[Added 10-1-2012 by Ord.
No. 910]
[12]
Editor's Note: See 26 U.S.C. § 415(c).
[13]
Editor's Note: See 26 U.S.C. § 3401(a).
[14]
Editor's Note: See 26 U.S.C. §§ 125(a), 132(f)(4),
402(e)(3), 402(h)(1)(B), 401(k) and 457(b).
[15]
Editor's Note: See 26 U.S.C. § 3401(a)(2).
[16]
Editor's Note: See 26 U.S.C. § 402(g).
[17]
Editor's Note: See 26 U.S.C. §§ 125(a), 132(f)(4),
401(k) and 457(b).
D.
Leased employees and independent contractors. Leased employees and
independent contractors are not eligible to participate in this plan.
Any person whom the Board of Supervisors does not regard as being
an employee shall not be eligible to participate.
E.
Limit on compensation. Compensation (for purposes of calculating
monthly earnings) is subject to the limitation under Code Section
401(a)(17),[18] which is $230,000 for the plan year beginning in 2008.
The limit is automatically adjusted periodically, without formal amendment,
for changes in the law and cost-of-living adjustments under Code Section
401(a)(17). As of January 1, 1994, this amount was $150,000, and at
all times the plan requires compliance with Section 401(a)(17).
[18]
Editor's Note: See 26 U.S.C. § 401(a)(17).
G.
Vesting upon plan termination. Upon the termination of this plan,
or complete discontinuance of contributions [within the meaning of
pre-ERISA Code Section 401(a)(7)] to this plan, each employee, as
of the date of such termination or discontinuance, shall become vested
to the extent that the plan is funded.
H.
Required distributions.
(1)
Notwithstanding anything to the contrary herein contained, all distributions
under the plan shall be made in accordance with Section 401(a)(9)
of the Code.[20] Any distribution option under the plan which is inconsistent
with Section 401(a)(9) of the Code shall be inoperative to the extent
of such inconsistency. Effective as of January 1, 2003, all distributions
under the plan shall be made in accordance with Regulation § 1.401(a)(9)-1
through § 1.401(a)(9)-9. For calendar years prior to 2003,
distributions were made in accordance with the 1987 proposed regulations
[under Section 401(a)(9) of the Code], except to the extent that those
proposed regulations were overridden by amendments to the Code. Nothing
in this section gives any participant, retired participant, beneficiary,
or alternate payee the right to elect any time or method of a distribution
not provided for in another section of the plan.
[20]
Editor's Note: See 26 U.S.C. § 401(a)(9).
(2)
Required beginning date.
(a)
Participant's required beginning date. Effective as of
January 1, 1997, distribution to a participant must be made or commenced
no later than the first day of April following the calendar year in
which such participant attains age 70 1/2 or retires, whichever
is later.
(b)
Death of participant before distribution begins. If the participant
dies before distributions begin, the participant's entire interest
will be distributed, or begin to be distributed, no later than as
follows:
[1]
If the participant's surviving spouse is the participant's
sole designated beneficiary, then distributions to the surviving spouse
will begin by December 31 of the calendar year immediately following
the calendar year in which the participant died, or by December 31
of the calendar year in which the participant would have attained
age 70 1/2, if later.
[2]
If the participant's surviving spouse is not the participant's
sole designated beneficiary, then distributions to the designated
beneficiary will begin by December 31 of the calendar year immediately
following the calendar year in which the participant died.
[3]
If there is no designated beneficiary as of September 30 of
the year following the year of the participant's death, the participant's
entire interest will be distributed by December 31 of the calendar
year containing the fifth anniversary of the participant's death.
[4]
If the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the participant but before distributions to the surviving spouse begin, this Subsection H(2)(b), other than Subsection H(2)(b)[1], will apply as if the surviving spouse were the participant.
(3)
Distributions, if not made in a lump sum, shall be made over a period
not exceeding the lifetime of the participant or the joint lifetimes
of the participant and his designated beneficiary, or over a period
certain not extending beyond the life expectancy of the participant
or the joint life expectancies of the participant and his beneficiary.
(4)
If the participant's interest is to be paid in the form of annuity
distributions under the plan, payments under the annuity shall satisfy
the following:
(a)
The annuity distributions must be paid in periodic payments
made at intervals not longer than one year;
(b)
The distribution period must be over a life (or lives) or over
a period certain not longer than a life expectancy (or joint life
and last survivor expectancy) described in Section 401(a)(9)(A)(ii)
or Section 401(a)(9)(B)(iii) of the Code,[21] whichever is applicable;
[21]
Editor's Note: See 26 U.S.C. § 401(a)(9)(A)(ii)
and (a)(9)(B)(iii).
(c)
For plan years beginning prior to 2003, the life expectancy
(or joint life and last survivor expectancy) for purposes of determining
the period certain shall be determined without recalculation of life
expectancy;
(d)
Once payments have begun over a period certain, the period certain
may not be lengthened even if the period certain is shorter than the
maximum permitted;
(e)
Payments must either be nonincreasing or increase only as in
accordance with Treasury regulations.
I.
Domestic relations order. All rights and benefits, including elections,
provided to a participant in this plan may be subject to the rights
afforded to any alternate payee pursuant to a domestic relations order
as provided by applicable state law.
J.
Direct rollover.
(1)
This section applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a distributee's election under this section,
a distributee may elect, at the time and in the manner prescribed
by the plan administrator, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
(2)
For purposes of this section, the following definitions shall apply:
(a)
Eligible rollover distribution.
[1]
An "eligible rollover distribution" is any distribution of all or
any portion of the balance to the credit of the distributee, except
that an eligible rollover distribution does not include:
[a]
Any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or
life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more;
[c]
The portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized appreciation
with respect to employer securities); and
[d]
Effective as of January 1, 2002, any hardship distribution.
[2]
Effective as of January 1, 2002, Subsection J(2)(a)[1][c] does not
apply to any after-tax participant contributions that are paid to
an individual retirement account or annuity described in Code Section
408(a) or (b),[23] or to a qualified defined contribution plan described
in Code Section 401(a) or 403(a) or, effective as of January 1, 2007,
any 403(b)[24] annuity contract that agrees to separately account for
amounts so transferred, including separately accounting for the portion
of such distribution which is includible in gross income and the portion
of such distribution which is not so includible.
(b)
An "eligible retirement plan" is an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), an annuity plan described in Code
Section 403(a) or a qualified trust described in Code Section 401(a)
that accepts the distributee's eligible rollover distribution.[25] However, in the case of an eligible rollover distribution
to the surviving spouse, prior to January 1, 2002, an "eligible retirement
plan" was an individual retirement account or individual retirement
annuity. Effective as of January 1, 2002, an eligible retirement plan
includes an annuity contract described in Code Section 403(b)[26] and an eligible plan under Code Section 457(b)[27] which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this plan. Effective January
1, 2008, a Roth IRA is an eligible retirement plan.
(c)
A "distributee" includes an employee or former employee. In
addition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse or
former spouse who is the alternate payee under a qualified domestic
relations order, as defined in Code Section 414(p),[28] are distributees with regard to the interest of the spouse
or former spouse.
[28]
Editor's Note: See 26 U.S.C. § 414(p).
(d)
A "direct rollover" is a payment by the plan to the eligible
retirement plan specified by the distributee.
L.
Mandatory lump-sum distributions. Effective as of January 1, 2006,
if, prior to attaining age 62, a participant is entitled to a lump-sum
distribution in excess of $1,000, his or her vested interest shall
be transferred to an individual retirement account (IRA), unless the
participant elects to receive a cash distribution.
M.
Heroes Earnings Assistance Relief Tax Act (HEART Act). Effective
for deaths occurring on or after January 1, 2007, if a participant
dies while performing qualified military service [as defined in IRC
§ 414(u)[30]], the survivors of the participant are entitled to any
additional benefits (other than benefit accruals relating to the period
of qualified military service) provided under the plan had the participant
resumed and then terminated employment on account of death.
[Amended 10-1-2012 by Ord. No. 910]
[30]
Editor's Note: See 26 U.S.C. § 414(u).
N.
Nonspouse beneficiaries. Effective as of January 1, 2007, if a beneficiary
who is not a surviving spouse is entitled to receive what would otherwise
be an eligible rollover distribution, the beneficiary may, in accordance
with Code Section 402(c)(11),[31] make a trustee-to-trustee transfer of that amount to an
IRA or individual retirement annuity (other than an endowment contract),
provided that:
(1)
The transfer is made not later than the end of the fourth year after
the year of the participant's death; and
[31]
Editor's Note: See 26 U.S.C. § 402(c)(11).
O.
Plan for sole benefit of participants. The income and principal of
the plan are for the sole use and benefit of the participants and
their beneficiaries and, to the extent permitted by law, shall be
free, clear and discharged of and from and are not to be in any way
liable for debts, contracts or agreements, now contracted or which
may hereafter be contracted, and from all claims and liabilities now
or hereafter incurred by any participant or beneficiary.
[Added 10-1-2012 by Ord.
No. 910]
P.
No reversion to the employer. At no time shall it be possible for
the plan assets to be used for, or diverted to, any purpose other
than for the exclusive benefit of the participants and their beneficiaries,
except that contributions made by the employer may be returned to
the employer if the contribution was made due to a mistake of fact
and the contribution is returned within one year of the mistaken payment
of the contribution, the plan is terminated, or as otherwise permitted
by the laws of the Commonwealth of Pennsylvania.
[Added 10-1-2012 by Ord.
No. 910]
Q.
Vesting upon attainment of normal retirement age. The participant
shall be one-hundred-percent vested in his normal retirement benefit
upon the attainment of normal retirement age.
[Added 10-1-2012 by Ord.
No. 910]
R.
Vesting upon plan termination. Upon the termination of this plan,
or complete discontinuance of contributions [within the meaning of
pre-ERISA Code Section 401(a)(7)] to this plan, each employee (who
is not already one-hundred-percent vested), as of the date of such
termination or discontinuance, shall become vested to the extent that
the plan is funded.
[Added 10-1-2012 by Ord.
No. 910]
S.
Retroactive effective date for certain Internal Revenue Code provisions.
Notwithstanding the effective date of this section, any provision
required by EGTRRA is effective as of January 1, 2002, and any provision
that is required by GUST is effective as of the effective dates set
forth herein.
[Added 10-1-2012 by Ord.
No. 910]
