[Ord. 2012-O-3, 3/14/2012, Art. I; as amended by Ord. 2012-O-4,
3/14/2012]
The following words and phrases as used in this plan shall have
the meaning set forth in this Part, unless a different meaning is
otherwise clearly required by the context:
ACCRUED BENEFIT
As of any given computation date, a participant's monthly
normal retirement benefit determined in accordance with § 124(2),
which amount shall be based upon the participant's final monthly average
compensation and credited service determined as of such computation
date and which shall represent the monthly benefit which would be
payable in the normal form as of the participant's attainment of normal
retirement age, provided that the participant shall satisfy all requirements
pursuant to the terms of the plan for entitlement to receive such
benefit. In no event, however, shall the accrued benefit exceed the
maximum limitation, determined as of the date of computation, provided
under § 124(11). All accrued benefits are subject to all
applicable limitations, reductions, offsets and actuarial adjustments
provided by the Plan prior to the actual payment thereof.
ACCUMULATED CONTRIBUTIONS
The total amount of employee contributions contributed by
a participant to this Plan or its predecessor by way of payroll deduction
or otherwise, plus interest credited at the rate of 5% per annum.
Interest shall be credited annually in the form of a compound interest
rate from the first day of the plan year coincident with or next following
the date of deposit into the pension fund until the first day of the
month in which a distribution of accumulated contributions under §§ 127(2)
or 128(2) shall be paid, or the payment of benefits shall commence.
ACT
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
ACTUARIAL EQUIVALENT
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of reasonable mortality factors and interest rates.
ACTUARY
The person, partnership, association or corporation, which
at any given time is serving as actuary; provided that such actuary
must be an "approved actuary" as defined in the Act.
AUTHORIZED LEAVE OF ABSENCE
Any leave of absence granted in writing by the employer for
reasons including, but not limited to, military service, accident,
sickness, pregnancy, any long-term or temporary disability, education,
training, jury duty or such other reasons as may necessitate authorized
leave from active employment.
BENEFICIARY
The person validly designated in writing by a participant
to receive such benefits as may be due hereunder upon the death of
the participant. A designation shall become effective only upon the
participant's death and shall be valid only if delivered prior to
such participant's death to the plan administrator in such form as
the plan administrator shall specify.
BOARD
The Board of Supervisors of Newtown Township, Bucks County,
Pennsylvania.
CHIEF ADMINISTRATIVE OFFICER
The person designated by the Board, who has the primary responsibility
for the execution of the administrative affairs for the plan.
CODE
The Internal Revenue Code of 1986, as amended.
COMMITTEE
The Pension Committee as more fully described under § 129(2)
hereof if one shall be appointed.
COMPENSATION
The total salary or wages paid to an employee by the employer
for active services rendered in employment. Compensation shall exclude
extra or additional forms of remuneration including, but not necessarily
limited to, amounts paid as allowance or reimbursement for expenses
or payments made to a welfare or benefit plan on behalf of the employee.
Compensation shall be limited on an annual basis for purposes of this
plan to the amount specified in accordance with Code § 401(a)(17),
as adjusted under Code § 415(d) and applicable to governmental
retirement plans.
CREDITED SERVICE
A participant's total period or periods of employment accumulated
as an employee rounded to the last full month. Credited service shall
include each period of active employment and each period of time during
which an employee is on an authorized leave of absence.
DEFERRED VESTED PARTICIPANT
Any participant who has separated from employment prior to
attainment of normal retirement age for reasons other than death,
disability or retirement and who is eligible to receive a vested retirement
benefit pursuant to § 128(2) to commence at normal retirement
date.
DISABILITY DATE
The date when a participant is determined to be incapacitated
due to total and permanent disability, or the date when the participant's
employment terminates due to such total and permanent disability,
if later.
EARLY RETIREMENT AGE
The date on which an eligible participant attains 55 years
of age and has completed at least 10 years of credited service with
the employer.
EARLY RETIREMENT DATE
The first day of the month coincident with or next following
the date on which a participant who has attained early retirement
age ceases employment and elects to commence receipt of retirement
benefits prior to the participant's normal retirement date.
EMPLOYEE
Any individual employed by the employer on a regular, full-time
basis who is not a police officer or firefighter and who is not eligible
to participate under the provisions of any other pension plan sponsored
by the employer. An individual who is regularly scheduled to work
at least 1,400 hours of service during a twelve-month period shall
be considered employed on a full-time basis.
Employees hired on or after July 1, 2011, shall have an account
under the money purchase plan as specified under Appendix 1-1B-A.
Except as provided in Appendix 1-1B-A, participants hired on or after
July 1, 2011, are subject to the same plan terms as other participants.
EMPLOYER
Newtown Township, Bucks County, Pennsylvania.
EMPLOYMENT
Any period of time during which an employee renders services
for the employer for which the employee is directly or indirectly
compensated or entitled to receive compensation for the performance
of duties as an employee, including any period of authorized leave
of absence. Employment shall exclude any period of time during which
services are performed as an independent contractor paid on a contractual
or fee basis.
EMPLOYMENT
Any period of qualified military service as determined under
the requirements of Chapter 43 of Title 38, United States Code, provided
the participant returns to employment following such period of qualified
military service.
FINAL AVERAGE MONTHLY COMPENSATION
The average monthly compensation earned by the participant
during the final 36 consecutive months of active rendering of service
in employment. Final monthly average compensation shall exclude any
single sum or extraordinary payments made to the participant which
are not directly attributable to active employment during the averaging
period, including but not limited to payment for accumulated sick
leave, accumulated vacation pay, or payment of a back pay damage award
or settlement.
INSURER
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
LATE RETIREMENT DATE
The first day of the month coincident with or next following
the date on which a participant shall retire from employment, which
occurs after the participant's normal retirement date.
NORMAL FORM
The usual and customary form of payment of a normal retirement
benefit as further described in § 125(1) hereof.
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following
the attainment of normal retirement age.
NOTICE OR ELECTION
A written document prepared in the form specified by the
plan administrator. If such notice or election is to be provided by
the employer or the plan administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto, on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the plan administrator, it must be received by
the recipient on or before the last day of the specified notice or
election period.
PARTICIPANT
An employee who has met the eligibility requirements to participate
in the plan and who has not for any reason ceased to be a participant
hereunder.
PENSION FUND OR FUND
The assets of the plan, which shall include all money, property,
investments, policies and contracts standing in the name of the plan
and which shall be accounted for separately from the assets of any
other plans maintained by the employer, whether actually held separately
or commingled with the assets of another plan, and which shall be
administered under the supervision of the employer in accordance with
the terms of the plan and applicable law.
PLAN
The Newtown Township Nonuniformed Employees Pension Plan
as herein set forth and as it may be amended from time to time hereafter.
PLAN ADMINISTRATOR
The person or persons appointed by the Board for the purpose
of supervising and administrating the Plan. In the event no person
is so appointed, the plan administrator shall be the Board.
PLAN YEAR
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
RESTATEMENT DATE
July 1, 2011, the effective date of this plan as hereby amended
and restated, except as otherwise set forth herein.
TOTAL AND PERMANENT DISABILITY
A condition of physical or mental impairment due to which
a participant is unable to perform the services of employment for
which the participant is suited by training, education or experience;
which condition lasts at least six months and is reasonably expected
to last for the lifetime of the participant; and which condition is
a direct result of and occurs in the line of duty of employment. Therefore,
an employee whose physical or mental impairment does not occur in
the line of duty or which is the result of alcoholism, addiction to
narcotics, perpetration of a felonious criminal activity or is willfully
self-inflicted, is not entitled to receive disability benefits under
the plan.
[Ord. 2012-O-3, 3/14/2012, Art. II; as amended by Ord. 2012-O-4,
3/14/2012]
1. Eligibility Requirements. Each employee who was a participant in
the plan on the day prior to the restatement date shall continue to
be a participant on and after the restatement date subject to the
terms and conditions of the plan as set forth herein. On or after
the restatement date, each other person hired shall become a participant
in the money purchase pension plan as described in Appendix 1-1B-A,
on the first day of the month coincident with or next following the
date of attainment of age 21 and each person hired at age 21 or older
shall become a participant on the date of hire, provided that the
employee completes all necessary forms required by the plan administrator.
2. Participation Requirements. Each participant hereunder shall be required
to execute and complete any enrollment or application forms as required
by the plan administrator. No employee shall be eligible to participate
hereunder until any and all such forms are completed and delivered
to the plan administrator.
Each non-union participant hereunder shall be required to make
contributions to the plan, as provided in § 123(1) hereof,
and shall execute and complete any enrollment or application forms
as required by the plan administrator authorizing payroll deduction
of such contributions. No employee shall be eligible to participate
hereunder until any and all such forms are completed and delivered
to the plan administrator.
3. Designation of Beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the plan administrator which designates a beneficiary
at the time participation commences. The participant's election of
any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time provided the participant provides
the written notice of the changed designation to the plan administrator
in the manner prescribed by the plan administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
plan administrator shall be null and void and have no effect under
the terms of this plan.
4. Re-employment. Each person who shall have previously been an employee
in employment and who was a participant in the plan shall be eligible
to participate hereunder as of the date of re-employment and shall
commence the accrual of additional benefits under the plan provided
that there shall be no duplication of benefits as provided under § 125(7).
5. Change in Status. In the event a participant who remains in the service of the employer ceases to be an employee eligible for participation hereunder, or who ceases or fails to make any contributions which are required as a condition of participation hereunder, no further benefit accruals shall occur until the participant again qualifies under such participation requirements. A re-qualified participant shall immediately commence the accrual of additional benefits hereunder upon becoming eligible to participate unless such person received a distribution of accumulated contributions, in which case the person shall be treated as a new employee in accord with subsection
(1) hereof and shall not receive any credit for prior credited service unless such person shall repay to the fund the amount of such distribution with interest credited at the same rate and in the same manner as described in § 121 from the date of distribution to the date of repayment.
6. Leave of Absence. During any leave of absence that is not an authorized
leave of absence, a participant shall be deemed an inactive participant
and shall not earn years of credited service, nor shall any benefits
accrue hereunder. If the employee is not reemployed by the expiration
of the leave of absence, participation in the plan shall cease on
the date on which the leave of absence commenced.
7. Recordkeeping. The employer shall furnish the administrator with
such information as will aid the administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this plan initially and subsequently.
[Ord. 2012-O-3, 3/14/2012, Art. III; as amended by Ord. 2012-O-4,
3/14/2012]
1. Employee Contributions. Employees are neither required nor permitted
to make contributions to the plan. Notwithstanding the foregoing,
the employer may require employees to contribute to the plan if, in
the opinion of the plan's actuary, additional contributions are necessary
to ensure the stability of the plan's funding status. If employee
contributions become necessary then such contributions will be designated
as "pick-up" contributions in accordance with Code § 414(h)(2).
2. Employer Contributions. The actuary, in accordance with the Act,
shall determine the minimum municipal obligation of the employer.
The employer shall pay into the pension fund, by annual appropriations
or otherwise, the contributions necessary to satisfy the minimum municipal
obligation. Notwithstanding the foregoing, nothing contained herein
shall preclude the employer from contributing an amount in excess
of the minimum municipal obligation.
3. State Aid. General municipal pension system state aid, or any other
amount of state aid received by the employer from the Commonwealth
in accordance with the Act, may be deposited into the pension fund
governed by this plan and shall be used to reduce the amount of the
minimum municipal obligation of the employer.
4. Gifts. To the extent permitted by law, the plan administrator may
accept gifts, outright or in trust, for deposit into the pension fund.
The application of such gifts shall be governed by the rules of the
plan.
5. 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 date on which
discovery of the mistaken payment of the contribution was made or
reasonably should have been made, or the plan is terminated, as provided
in § 131.
6. Employee Contributions. Employees are neither required nor permitted
to make contributions to the plan. Notwithstanding the foregoing,
the employer may require employees to contribute to the plan if, in
the opinion of the plan's actuary, additional contributions are necessary
to ensure the stability of the plan's funding status. Effective January
1, 2012, and as a condition of participation in the plan, each non-union
employee participant shall contribute to the plan, by payroll deduction,
an amount equal to 2.5% of such participant's compensation. These
mandatory employee contributions will be designated as "pick-up" contributions
in accordance with Internal Revenue Code § 414(h)(2).
[Ord. 2012-O-3, 3/14/2012, Art. IV]
1. Normal Retirement. A participant who retires upon attainment of normal retirement age shall be entitled to receive a monthly normal retirement benefit pursuant to subsection
(2).
2. Normal Retirement Benefit. Each participant who shall become entitled to a benefit pursuant to subsection
(1) shall receive a benefit commencing on the normal retirement date payable in the normal form in a monthly amount equal to 2% of the participant's final monthly average compensation multiplied by the years (and fractions thereof) of credited service.
3. Early Retirement. Each participant whose employment is terminated prior to normal retirement date other than by death or disability but after attainment of early retirement age shall be entitled to receive a monthly early retirement benefit pursuant to subsection
(4).
4. Early Retirement Benefit. Each participant who shall become entitled to a benefit pursuant to subsection
(3) may receive a benefit commencing on the normal retirement date payable in the normal form in a monthly amount equal to the accrued benefit of the participant; or may receive a benefit commencing on an early retirement date payable in the normal form that is a monthly amount that is the actuarial equivalent of the benefit commencing on the normal retirement date.
5. Late Retirement. A participant may continue in employment beyond the attainment of normal retirement age subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of subsection
(1) continues in employment beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and the participant's retirement actually begins. The retirement benefit of a participant who continues employment after attainment of normal retirement age shall be calculated in accordance with subsection
(2) on the basis of the final monthly average compensation and credited service as of such participant's actual retirement.
6. Application for Benefit. A participant must complete and execute
an application for benefit on a form and in the manner prescribed
by the plan administrator and deliver the said application to the
plan administrator at least 30 days prior to the date on which benefit
payments are to commence. Notwithstanding anything contained herein
to the contrary, no retirement benefit payments or any other benefit
payments shall be due or payable on or before the first day of the
month coincident with or next following the date that is 30 days after
the date the plan administrator receives the application for benefit.
7. Limitation of Liability. Nothing contained herein shall obligate
the employer, the plan administrator, any fiduciary or any agent or
representative of any of the foregoing, to provide any retirement
or other benefit to any participant or beneficiary which cannot be
provided from the assets available in the pension fund, whether such
benefits are in pay status or otherwise payable under the terms of
the plan. The Board retains the right to amend or terminate this plan
consistent with applicable law at any time, with or without cause
and whether or not such action directly or indirectly results in the
suspension, reduction or termination of any benefit payable under
the plan or in pay status, and without liability to any person for
any such action.
8. Small Amounts. If the plan administrator determines that the value
of a participant's accrued benefit is so small as to make monthly
pension payments administratively impractical, the plan administrator
may cause such payments to be made at such other periodic intervals
as are administratively practical, but no less frequently than annually,
or may make a single lump sum payment equal to the commuted value
of such accrued benefit to the extent permitted under applicable law.
9. Personal Right of Participant. Each participant's right to receive
any benefits hereunder is personal and expires on such participant's
death. No heir, legatee, devisee, beneficiary, assignee or other person
claiming by or through a participant shall have any interest in any
benefits hereunder unless clearly and expressly so provided by the
terms of this plan. A participant's election, failure to file an election
hereunder or revocation of an election shall be final and binding
on all persons.
10. Retired Participants. The benefit amount of any participant who may
have retired prior to the restatement date shall not be in any way
altered by the provisions of this plan, except where otherwise expressly
indicated herein, and shall continue to be determined on the basis
of the terms of the plan in effect on the day preceding the restatement
date.
11. Maximum Benefit Limitations. Notwithstanding any provision of this
plan to the contrary, no benefit provided under this plan attributable
to contributions of the employer shall exceed, as an annual amount,
the amount specified in Code § 415(b)(1)(A) as adjusted
pursuant to Code § 415(d), assuming the form of benefit
shall be a straight life annuity (with no ancillary benefits). The
limitations described in this subsection shall be governed by the
following conditions and definitions:
A. Benefits paid or payable in a form other than a straight life annuity
(with no ancillary benefits) or where the employee contributes to
the plan or makes rollover contributions shall be adjusted on an actuarially
equivalent basis in accordance with applicable regulations to determine
the limitation contained herein.
B. In the case of a benefit which commences prior to the attainment
of age 62 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis in accordance with applicable regulations
to the amount determined pursuant to this section commencing at age
62; however, in the case of a qualified participant (a participant
with respect to whom a period of at least 15 years of service, as
a full-time employee of a police or fire department or as a member
of the Armed Forces of the United States is taken into account in
determining the amount of benefit), the limitation contained herein
shall not apply.
C. In the case of a benefit which commences after attainment of age
65 by the participant, the limitation herein shall be adjusted on
an actuarially equivalent basis in accordance with applicable regulations
to the amount determined herein commencing at age 65.
D. 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 limitation 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 pursuant to § 126(2) or a survivor benefit
pursuant to § 126, with fewer than 10 years of participation,
the limitation expressed in this subsection shall be reduced by 1/10
for each year of participation less than 10 but in no event shall
this limitation be less than $1,000.
E. The limitations expressed herein shall be based upon plan years for
calculation purposes, shall be applied to all defined benefit plans
maintained by the employer as one defined benefit plan and to all
defined contribution plans maintained by the employer as one defined
contribution plan, and shall be applied and interpreted consistent
with Code § 415 and regulations thereunder as applicable
to government plans in general and this plan in particular.
F. In the case of a survivor benefit under § 127(2), or a
disability retirement benefit under § 126(2), the adjustment
under subsections (11)(B) and (11)(E) hereof shall not apply and the
applicable limitation shall be the limitation contained herein without
regard to the age or years of service or participation of the benefit
recipient.
G. Effective for distributions with annuity starting dates beginning
on or after December 31, 2008, notwithstanding any other plan provisions
to the contrary, the applicable mortality table used solely for purposes
of adjusting any benefit or limitation under § 415(b)(2)(B),
(C), or (D) of the Internal Revenue Code as set forth in the applicable
maximum benefit limitations section of the plan is the applicable
mortality table under Code § 417(e)(3)(B).
12. Incorporation of Code § 415 by Reference. Notwithstanding anything contained in subsection
(11) to the contrary, the limitations, adjustments, and other requirements prescribed in subsection
(11) shall at all times comply with the provisions of Code § 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference. Effective for limitation years beginning on and after July 1, 2007, the plan shall comply with the final regulations issued under Code § 415.
[Ord. 2012-O-3, 3/14/2012, Art. V; as amended by Ord. 2012-O-4,
3/14/2012]
1. Normal Form of Benefit Payment. The normal form of payment of retirement benefits shall be a monthly annuity for the life of the participant. If the participant is married on the retirement date and such marriage has been in existence for at least one year as of such date, the normal form of payment shall be the joint and 50% survivor annuity described in subsection
(2). However, for non-union employees, if the death of the retired participant occurs after the payments commence but before the amount of monthly retirement benefit payments and any single sum or other prior distributions, if applicable, exceed the accumulated contributions as of the date of employment termination, the remainder of such amount shall be paid in a single sum to the beneficiary designated by the participant.
2. Optional Form of Benefit Payment. The automatic form of payment of retirement benefits shall be the normal form under subsection
(1) unless the participant elects to receive payment of benefits in an optional form as provided herein. A participant who retires under §§ 124(1), (3), or (5), may elect an optional form of benefit payment by giving written notice to the plan administrator at least 30 days prior to the date that benefit payments are to commence hereunder. The following are the available optional forms of benefit payment under the plan.
A. The life annuity with period certain form of payment shall provide
for monthly payments to the retired participant for the life of the
participant. If the participant shall die before a total of 120 monthly
payments have been paid then the monthly payments shall continue and
be paid to the beneficiary until a total of 120 monthly payments have
been paid to the participant and beneficiary combined. If the participant
shall die after at least 120 monthly payments have been paid there
shall be no additional payments made as the result of or on account
of the death of the participant.
B. The joint and 50% survivor annuity form of payment shall provide
for monthly payments to the retired participant for the life of the
participant. Upon the occurrence of the death of the participant,
monthly payments shall be paid to the beneficiary, if the beneficiary
is then living, in an amount equal to 50% of the amount that was being
paid monthly to the participant, for the life of the beneficiary.
If the beneficiary does not survive the participant there shall be
no additional payments made as the result of or on account of the
death of the participant.
C. The lump sum form of payment shall provide for the applicable benefit
to be paid in a single lump sum payment. This form of payment is only
available to participant's that were first hired into employment before
March 9, 1995.
3. Commencement of Benefits. A participant may elect to commence receiving distribution of retirement benefits as of the early, normal or late retirement date or may defer such payments to a date nor later than the required date for commencement of benefits determined under subsection
(4).
4. Required Distributions.
A. Notwithstanding any other provision of this plan, the entire benefit
of any participant who becomes entitled to benefits prior to death
shall be distributed either:
(1)
Not later than the required beginning date.
(2)
Over a period beginning not later than the required beginning
date and extending over the life of such participant or over the lives
of such participant and a designated beneficiary (or over a period
not extending beyond the life expectancy of such participant, or the
joint life expectancies of such participant and a designated beneficiary).
|
If a participant who is entitled to benefits under this plan
dies prior to the date when the entire interest has been distributed
after distribution of benefits has begun in accordance with subsection
(4)(A)(2) above, the remaining portion of such benefit shall be distributed
at least as rapidly as under the method of distribution being used
under subsection (4)(A)(2) as of the date of death.
|
B. If a participant who is entitled to benefits under this plan dies
before distribution of the benefit has begun, the entire interest
of such employee shall be distributed within five years of the death
of such employee, unless the following sentence is applicable. If
any portion of the employee's interest is payable to (or for the benefit
of) a designated beneficiary, such portion shall be distributed over
the life of such designated beneficiary (or over a period not extending
beyond the life expectancy of such beneficiary), and such distributions
begin not later than one year after the date of the employees death
or such later date as provided by regulations issued by the Secretary
of the Treasury, then for purposes of the five year rule set forth
in the preceding sentence, the benefit payable to the beneficiary
shall be treated as distributed on the date on which such distributions
begin. Provided, however, that notwithstanding the preceding sentence,
if the designated beneficiary is the surviving spouse of the participant,
then the date on which the employee would have attained age 70 1/2
and, further provided, if the surviving spouse dies before the distributions
to such spouse begin, this subparagraph shall be applied as if the
surviving spouse were the employee.
C. For purposes of this section, the following definitions and procedures
shall apply:
(1)
"Required beginning date" shall mean April 1 of the calendar
year following the later of the calendar year in which the employee
attains age 70 1/2, or the calendar year in which the employee
retires.
(2)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this plan according to its rules.
(3)
Any amount paid to a child shall be treated as if it had been
paid to the surviving spouse if such amount will become payable to
the surviving spouse upon such child's reaching majority (or other
designated event permitted under regulations issued by the Security
of the Treasury).
(4)
For purposes of this section, the life expectancy of an employee
and/or the employee's spouse (other than in the case of a life annuity)
may be redetermined but not more frequently than annually.
D. General Rules. The requirements of this subsection (4) will take
precedence over any inconsistent provisions of the plan. All distributions
required under this subsection (4) will be determined and made in
accordance with § 401(a)(9) of the Internal Revenue Code
and the Treasury regulations thereunder, and the employer's good faith
interpretation of such code and regulations.
5. Direct Rollovers.
A. 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.
B. This subsection (B) shall apply to distributions made on or after
January 1, 2006. Notwithstanding any provisions of the plan to the
contrary that would otherwise limit a distributee's election under
this section, if a distribution in excess of $1,000 is made and the
distributee does not make an election under subsection (5)(A) and
does not elect to receive the distribution directly, the plan administrator
shall make such transfer to an individual retirement plan of a designated
trustee or issuer pursuant to § 129(3)(I). The plan administrator
shall notify the, distributee in writing, within a reasonable period
of time and as otherwise prescribed by law, that the distribution
may be transferred to another individual retirement plan.
C. For purposes of this section, the following definitions shall apply:
DISTRIBUTEE
A participant or former participant. In addition, the participant's
or former participant's surviving spouse and the participant's or
former participant's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
§ 414(p), are distributees with regard to the interest of
the spouse or former spouse.
DIRECT ROLLOVER
A payment by the plan to the eligible retirement plan specified
by the distributee or the plan administrator, if the distributee does
not make an election.
Effective January 1, 2008, direct rollovers may be made to
a Roth IRA described in § 408A of the Internal Revenue Code
to the extent that the applicable requirements of Code § 408A
are satisfied with respect to any direct rollover to such Roth IRA.
ELIGIBLE RETIREMENT PLAN
A qualified trust described in Code § 401(a), an
individual retirement account described in Code § 408(a),
an individual retirement annuity described in Code § 408(b),
an annuity plan described in Code § 403(a), an annuity contract
described in Code § 403(b), an eligible plan under § 457(b)
of the Code 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.
ELIGIBLE ROLLOVER DISTRIBUTION
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: 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 10 years or more;
any distribution to the extent such distribution is required under
Code § 401(a)(9); and 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).
For purposes of the direct rollover provisions in this section
of the plan, a portion of a distribution shall not fail to be an eligible
rollover distribution merely because the portion consists of after-tax
employee contributions that are not includable in gross income. However,
such portion may be paid only to an individual retirement account
or annuity described in § 408(a) or (b), or to a qualified
defined contribution plan described in §§ 401(a) or
403(a) of the Code (effective for distributions on or after January
1, 2007, any qualified trust or Code § 403(b) plan) that
agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is
includable in gross income and the portion of such distribution which
is not so includable.
D. This Section applies to distributions made on or after January 1,
2010. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a nonspouse Beneficiary's election under this
section, a nonspouse beneficiary may elect to have any portion of
a plan distribution (that is payable to such nonspouse beneficiary
due to a participant's death) paid in a direct trustee-to-trustee
transfer to an individual retirement account described in Code § 408(a)
or to an individual retirement annuity described in § 408(b)
(other than an endowment contract) that has been established for the
purposes of receiving the distribution on behalf of such nonspouse
beneficiary. For these purposes, a "nonspouse beneficiary" is an individual
who is a designated beneficiary (as defined by § 401(a)(9)(E)
of the Internal Revenue Code) of a participant and who is not the
surviving spouse of such participant.
6. Assignment. The pension benefit payments prescribed herein shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant or designated
beneficiary and shall not be subject to assignment or transfer unless
the subject of a domestic relations order mandated by a court of competent
jurisdiction.
7. Nonduplication of Benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under the plan
and who shall resume employment shall have benefit payments suspended
until the first day of the month coincident with or next following
the date such employment shall cease. Upon resumption of benefit payments,
such participant shall receive the greater of the amount of the suspended
benefit or the amount of benefit based upon final average monthly
compensation and years of credited service as of the date that such
period of resumed employment shall cease.
8. Employer Provided Retirement Benefit. Notwithstanding anything contained herein to the contrary, a participant, in lieu of receiving a retirement benefit pursuant to subsections
(1) and
(2) hereof based upon the total value of employee and employer contributions to the plan, may choose to receive a single sum payment in an amount equal to the participant's accumulated contributions as of the date of termination of employment and a reduced retirement benefit pursuant to subsections
(1) and
(2). The value of the retirement benefit shall be reduced by the portion of the value attributable to that which could have been provided by the value of the participant's accumulated contributions as of the date of termination of employment.
[Ord. 2012-O-3, 3/14/2012, Art. VI; as amended by Ord. 2012-O-4,
3/14/2012]
1. Disability Retirement. A participant who has completed at least 10
years of credited service and who shall incur total and permanent
disability before attaining normal retirement age shall be entitled
to receive a disability retirement benefit as of the disability date.
2. Disability Retirement Benefit. A participant who shall be entitled to a disability retirement benefit under subsection
(1) shall receive a monthly benefit in an amount equal to the participant's accrued benefit calculated as of the disability date. The amount of disability retirement benefit shall be reduced by the full amount of any worker's compensation benefits received by the participant due to the same incurred total and permanent disability.
3. Payment of Disability Benefits. Disability payments shall be made
monthly as of the first day of the calendar month following the disability
date, and continuing until the earliest of the death of the participant,
cessation of total and permanent disability, or attainment of normal
retirement age (such a participant who attains normal retirement age
shall thereafter continue to receive the same amount of monthly benefit
which shall be deemed to be the normal retirement benefit).
A participant who shall fail to return within three months to
employment as an employee of the employer upon cessation of total
and permanent disability prior to attainment of normal retirement
age shall be deemed to have terminated employment as of the disability
date, and shall not be entitled to any other benefits under the plan
on account of any credited service as of the disability date. Non-union
employee participant's shall not be entitled to any distribution of
accumulated contributions pursuant to § 128(3) to the extent
that the total amount of disability payments exceeds the value of
the participant's accumulated contributions as of the disability date.
4. Verification of Disability. Total and permanent disability shall
initially be determined by a licensed physician mutually agreed to
by the participant and the plan administrator. If there is no agreement
to select such a licensed physician, then total and permanent disability
shall be determined by a majority opinion of a group composed of one
physician chosen by the participant, one physician chosen by the plan
administrator and one physician chosen jointly by the participant
and plan administrator. If, after payment of a disability retirement
benefit has commenced, the plan administrator shall determine that
a participant who is totally and permanently disabled has recovered
sufficiently to resume active employment or if a participant refuses
to undergo a medical examination as directed by the plan administrator
(such a medical examination may not be required more frequently than
once in any given twelve-month period), the participant shall cease
to be considered totally and permanently disabled.
5. Cessation of Disability. A participant must notify the plan administrator
of any change which may cause a cessation of entitlement to receipt
of any disability retirement benefit hereunder. If a participant fails
to provide immediate notice to the plan administrator of any such
change in status and receives payment of benefits hereunder to which
the participant is not entitled, then the plan may take whatever action
is necessary to recover any amount of improperly paid amounts, including
legal action or offsetting such amounts against any future payments
of retirement or other benefits under the plan, including the costs
of such actions.
[Ord. 2012-O-3, 3/14/2012, Art. VII; as amended by Ord. 2012-O-4,
3/14/2012]
1. Survivor Benefit. No benefit shall be payable to any survivor or
beneficiary upon or by reason of the death of any participant except
as provided hereafter in this section.
2. Death of Participant Prior to Retirement. If a participant shall
die before retirement and at a time when such participant would have
become a deferred vested participant upon termination of employment
there shall be payable a survivor benefit hereunder. Such survivor
benefit shall be payable to the surviving spouse of the deceased participant,
or if there is no surviving spouse then such survivor benefit shall
to payable to another properly named individual beneficiary.
If the participant shall die before attainment of early retirement
age, the survivor benefit shall commence of the first day of the month
coincident with or immediately following the date of death in an amount
equal to the amount that would have been payable to the survivor annuitant
if the participant separated from service on the date of death, survived
to attainment of early retirement age, retired with an immediate joint,
and 50% survivor annuity and died on the day after attainment of early
retirement age.
If the participant shall die after attainment of early retirement
age and before retirement, the survivor benefit shall commence as
of the first day of the month coincident with or immediately following
the date of death in an amount equal to the amount that would have
been payable to the survivor annuitant if the participant had retired
with an immediate joint and 50% survivor annuity on the day prior
to the date of death.
Should a participant die prior to becoming vested, the beneficiary
shall receive, in a single payment, an amount equal to the accumulated
contributions as of the date of death of the participant. No other
benefit shall be payable.
3. Death of Participant After Retirement. If a participant shall die
after payment of a retirement benefit has commenced, the only additional
benefit payable as a result of or on account of the death of the participant
shall be to the extent and in the manner provided under the form of
payment of benefits that is in effect as of the date of death.
4. Veterans' Survivor Benefits. Notwithstanding any other provision
of the plan to the contrary, in the case of the death of a participant
who dies on or after January 1, 2007, while performing qualified military
service (as defined in Code § 414(u)), the survivors of
the participant are entitled to any additional benefits under the
plan (if any) had the participant resumed and then terminated employment
on account of death.
[Ord. 2012-O-3, 3/14/2012, Art. VIII; as amended by Ord.
2012-O-4, 3/14/2012]
1. Rights of Terminated Employees. A participant who shall cease to
be an employee except as otherwise hereinbefore provided, shall be
limited to those rights under this plan contained in the following
sections of this section.
2. Deferred Vested Benefit. A participant who ceases to be an employee
in employment for any reason other than death, retirement or total
and permanent disability, prior to attainment of normal retirement
age, and who has completed at least four years of credited service
shall be entitled to receive a vested retirement benefit equal to
the participant's accrued benefit as of the date employment ceases
and multiplied by the applicable vested percentage from the following
schedule:
|
Participant's Years of Credited Service
|
Vested Percentage
|
---|
|
Less than 4 years
|
0%
|
|
4 years
|
40%
|
|
5 years
|
45%
|
|
6 years
|
50%
|
|
7 years
|
60%
|
|
8 years
|
70%
|
|
9 years
|
80%
|
|
10 years
|
90%
|
|
11 years or more
|
100%
|
|
The participant must apply to commence receipt of such benefit
by filing a written notice with the plan administrator at least 30
days before the date for commencement of benefit payments. Such a
participant may commence receipt of retirement benefits, after application
has been made to the plan administrator, on the first day of the month
coincident with or next following the date of attainment of normal
retirement age or may in the alternative, receive a benefit commencing
on a date that would be an eligible early retirement date in an amount
that is a monthly amount that is the actuarial equivalent of the benefit
that would have commenced as of the date that would have been the
normal retirement date.
|
3. Distribution of Accumulated Contributions. A participant whose employment
with the employer ceased for any reason other than death or total
and permanent disability prior to completion of at least four years
of service shall only be entitled to receive a distribution of accumulated
contributions. Upon receipt of such accumulated contributions said
participant and beneficiary shall not be entitled to any further payments
from the plan.
4. Forfeiture. To the extent permissible under the Code, rights under
this plan shall be subject to forfeiture pursuant to the Act of July
8, 1978 (P.L. 752, No. 140), known as the Public Employee Pension
Forfeiture Act, 43 Pa.C.S.A. § 1311 et seq.
[Ord. 2012-O-3, 3/14/2012, Art. IX]
1. Plan Administrator. The Board of the employer may appoint a committee
or an individual to be the plan administrator. The plan administrator
shall have the power and authority to do all acts and to execute,
acknowledge and deliver instruments necessary to implement and effectuate
the purpose of this plan. The plan administrator may delegate authority
to act on its behalf to any persons it deems appropriate. If the Board
does not appoint a plan administrator, the Board shall be the plan
administrator.
2. Pension Committee. If the Board shall appoint a pension committee,
it shall consist of five members, one of whom shall be an employee
covered by the plan and one of whom shall be a participant in the
plan. Each member of the pension committee shall serve in that capacity
until the earliest of resignation, death, removal or otherwise. Each
member may resign by delivering written notice to the Board and other
members of the committee. Vacancies on the committee shall be filled
in the same manner as the original appointment was made; provided,
however, that the remaining members of the committee shall have full
power to act pending the filling of such vacancies.
3. Authority and Duties of the Plan Administrator. The plan administrator
shall have full power and authority to do whatever shall, in its judgment,
be reasonably necessary for the proper administration and operation
of the plan. The interpretation or construction placed upon any term
or provision of the plan by the plan administrator or any action of
the plan administrator taken in good faith shall, upon the Board's
review and approval thereof, be final and conclusive upon all parties
hereto, whether employees, participants or other persons concerned.
By way of specification and not limitation and except as specifically
limited hereafter, the plan administrator is authorized:
B. To determine all questions affecting the eligibility of any employee
to participate herein.
C. To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary.
D. To authorize any and all disbursements.
E. To prescribe any procedure to be followed by any participant or other
person in filing any application or election.
F. To prepare and distribute, in such manner as may be required by law
or as the administrator deems appropriate, information explaining
the plan.
G. To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan.
H. To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws.
I. To select an individual retirement plan provider (either the state
or a federally regulated financial institution) and invest funds in
connection with the rollover of mandatory distributions as described
in § 125(5)(B).
|
The plan administrator shall have no power to add to, subtract
from or modify the terms of the plan or change or add to any benefits
provided by the plan, or to waive or fail to apply any requirements
of eligibility for benefits under the plan. Further, the plan administrator
shall have no power to adopt, amend, or terminate the plan, to select
or appoint any trustee or to determine or require any contributions
to the plan, said powers being exclusively reserved to the Board.
|
4. Pension Committee Organization. The committee may organize itself
in any manner deemed appropriate to effectuate its purposes hereunder,
subject to the following:
A. The committee shall act by a majority of its members at the time
in office and such action may be taken either by vote at a meeting
or in writing without a meeting.
B. The committee may appoint a chairman, a secretary who may, but need
not, be a committee member and such other agents as it may deem advisable.
C. The committee may, from time to time, authorize any one or more of
its members to execute any document or documents including any application,
request, certificate, notice, consent, waiver or direction and shall
notify the Board, in writing, of the name or names of the member or
members so authorized. In the absence of a designation, the chairman
shall be deemed to be so authorized. Any trustee or other fiduciary
appointed hereunder shall accept and be fully protected in relying
upon any document executed by the designated member or members (or
the chairman in the absence of a designation) as representing a valid
action by the committee until the committee shall file with such fiduciary
a written revocation of such designation.
D. The committee shall meet at least one time in each plan year, and
it shall maintain and keep such records as are necessary for the efficient
operation of the plan or as may be required by any applicable law,
regulation or ruling, and shall provide for the preparation and filing
of such forms, reports or documents as may be required to be filed
with any governmental agency or department and with the participants
or other persons entitled to benefits under the plan.
5. Plan Administrator Costs. The committee members shall each serve
without compensation for services unless otherwise agreed by the Board
in writing. All reasonable expenses incident to the functioning of
the committee, including, but not limited to, fees of accountants,
counsel, actuaries and other specialists and other costs of administering
the plan, may be paid from the pension fund upon approval by the Board
to the extent permitted under applicable law and not otherwise paid
by the employer.
6. Hold Harmless. No member of the Board, the plan administrator, the
enrolled actuary, nor any other person involved in the administration
of the plan shall be liable to any person on account of any act or
failure to act which is taken or omitted to be taken in good faith
in performing their respective duties under the terms of this plan.
To the extent permitted by law, the employer shall, and hereby does
agree to, indemnify and hold harmless each present member of the committee
and each successor and each of any such member's heirs, executors
and administrators, and the committee's delegates and appointees (other
than any person, bank, firm or corporation which is independent of
the employer and which renders services to the plan for a fee) from
any and all liability and expenses, including counsel fees, reasonably
incurred in any action, suit or proceeding to which he is or may be
made a party by reason of being or having been a member, delegate
or appointee of the committee, except in matters involving criminal
liability, intentional or willful misconduct. If the employer purchases
insurance to cover claims of a nature described above, then there
shall be no right of indemnification except to the extent of any deductible
amount under the insurance coverage or to the extent of the amount
the claims exceed the insured amount.
7. Approval of Benefits. The plan administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
8. Appeal Procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the plan ("claimant"), shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
A. Any claimant shall file a notice of the claim with the plan administrator
which shall fully describe the nature of the claim. The plan administrator
shall review the claim and make an initial determination approving
or denying the claim.
B. If the claim is denied in whole or in part, the plan administrator
shall, within 90 days (or such other period as may be established
by applicable law) from the time the application is received, mail
notice of such denial to the claimant. Such ninety-day period may
be extended by the plan administrator if special circumstances so
require for up to 90 additional days by the plan administrator's delivering
notice of such extension to the claimant within the first 90 day period.
Any notice hereunder shall be written in a manner calculated to be
understood by the claimant and, if a notice of denial, shall set forth
(1) the specific plan provisions on which the denial is based, (2)
an explanation of additional material or information, if any necessary
to perfect such claim and a statement of why such material or information
is necessary, and (3) an explanation of the review procedure.
C. Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Board of the initial
determination. Such request for review must be made by notice to the
Board within 60 days of receipt of such notice of denial. During such
review, the claimant or a duly authorized representative shall have
the right to review any pertinent documents and to submit any issues
or comments in writing. The Board shall, within 60 days after receipt
of the notice requesting such review, (or in special circumstances,
such as where the Board in its sole discretion holds a hearing, within
120 days of receipt of such notice), submit its decision in writing
to the person or persons whose claim has been denied. The decision
shall be final, conclusive and binding on all parties, shall be written
in a manner calculated to be understood by the claimant and shall
contain specific references to the pertinent plan provisions on which
the decision is based.
D. Any notice of a claim questioning the amount of a benefit in pay
status shall be filed within 90 days following the date of the first
payment which would be adjusted if the claim is granted unless the
plan administrator allows a later filing for good cause shown.
E. A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
F. Nothing contained herein is intended to abridge any right of a claimant
to appeal any final decision hereunder to a court of competent jurisdiction
under 2 Pa.C.S.A. § 752. No decision hereunder is a final
decision from which such an appeal may be taken until the entire appeal
procedure of this subsection (8) of the plan has been exhausted.
[Ord. 2012-O-3, 3/14/2012, Art. X]
1. Operation of the Pension Fund. The Board is hereby authorized to
hold and supervise the investment of the assets of the pension fund,
subject to the provisions of the laws of the Commonwealth and of this
plan and any amendment thereto.
The pension fund shall be used to pay benefits as provided in
the plan and, to the extent not paid directly by the employer, to
pay the expenses of administering the plan pursuant to authorization
by the employer.
The employer intends the plan to be permanent and for the exclusive
benefit of its employees. It expects to make the contributions to
the pension fund required under the plan. The employer shall not be
liable in any manner for any insufficiency in the pension fund; benefits
are payable only from the pension fund, and only to the extent that
there are monies available therein. The pension fund will consist
of all funds held by the employer under the plan, including contributions
made pursuant to the provisions hereof and the investments, reinvestments
and proceeds thereof. The pension fund shall be held, managed, and
administered pursuant to the terms of the plan. Except as otherwise
expressly provided in the plan, the employer has exclusive authority
and discretion to manage and control the pension fund assets. The
employer may, however, appoint a trustee, custodian and/or investment
manager, at its sole discretion.
To the extent that the pension fund includes assets of the money
purchase pension plan as described in Appendix 1-1B-A, the assets
of the money purchase pension plan may be held and invested separately
from the assets of the Newtown Township Nonuniformed Employees Pension
Plan within the pension fund. Assets in the nonuniformed employees
pension plan and the money purchase pension plan are for the exclusive
benefits of each individual plan and assets from one plan may not
be used for the benefit of other plan. In addition, the assets of
each individual plan may be used to pay benefits as provided in that
plan and, to the extent not paid directly by the employer, to pay
the expenses of administering that individual plan pursuant to authorization
by the employer.
2. Powers and Duties of Employer. With respect to the pension fund,
the employer shall have the following powers, rights and duties, in
addition to those vested in it elsewhere in the plan or by law, unless
such duties are delegated.
A. To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), without liability for interest thereon.
B. To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time legal investments for fiduciaries
under the Pennsylvania Fiduciaries Investment Act, or as the same
may be subsequently modified or amended.
C. To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
D. To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
E. To exercise all conversion and subscription rights pertaining to
property held in the fund.
F. To exercise all voting rights with respect to properly held in the
fund and in connection therewith to grant proxies, discretionary or
otherwise.
G. To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this plan no matter where situated, including
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
H. In addition to the foregoing powers, the employer shall also have
all of the powers, rights, and privileges conferred upon trustees
by the Pennsylvania Fiduciaries Investment Act, or as the same may
be subsequently modified or amended, and the power to do all acts,
take all proceedings and execute all rights and privileges, although
not specifically mentioned herein, as the employer may deem necessary
to administer the pension fund.
I. To maintain and invest the assets of this plan on a collective and
commingled basis with the assets of other pension plans maintained
by the employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
J. To invest the assets of the pension fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder. In this connection,
the commingling of the assets of this plan with assets of other eligible,
participating plans through such a medium is hereby specifically authorized.
Any assets of the plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
plan, to the extent of the participation in such collective or commingled
trust fund by the plan.
K. To make any payment or distribution required or advisable to carry
out the provisions of the plan, provided that if a trustee is appointed
by the employer, such trustee shall make such distribution only at
the direction of the employer.
L. To compromise, contest, arbitrate, enforce or abandon claims and
demands with respect to the plan.
M. To retain any funds or property subject to any dispute without liability
for the payment of interest thereon, and to decline to make payment
or delivery thereof until final adjudication is made by a court of
competent jurisdiction.
N. To pay, and to deduct from and charge against the pension fund, any
taxes which may be imposed thereon, whether with respect to the income,
property or transfer thereof, or upon or with respect to the interest
of any person therein, which the fund is required to pay; to contest,
in its discretion, the validity or amount of any tax, assessment,
claim or demand which may be levied or made against or in respect
of the pension fund, the income, property or transfer thereof, or
in any matter or thing connected therewith.
O. To appoint any persons or firms (including, but not limited to, accountants,
investment advisors, counsel, actuaries, physicians, appraisers, consultants,
professional plan administrators and other specialists), or otherwise
act to secure specialized advice or assistance, as it deems necessary
or desirable in connection with the management of the fund; to the
extent not prohibited by applicable law, the employer shall be entitled
to rely conclusively upon and shall be fully protected in any action
or omission taken by it in good faith reliance upon, the advice or
opinion of such persons or firms, provided such persons or firms were
prudently chosen by the employer, taking into account the interests
of the participants and beneficiaries and with due regard to the ability
of the persons or firms to perform their assigned functions.
P. To retain the services of one or more persons or firms for the management
of (including the power to acquire and dispose of) all or any part
of the fund assets, provided that each of such persons or firms is
registered as an investment advisor under the Investment Advisors
Act of 1940, is a bank (as defined in that act), or is an insurance
company qualified to manage, acquire or dispose of pension trust assets
under the laws of more than one state; in such event, the employer
shall follow the directions of such investment manager or managers
with respect to the acquisition and disposition of fund assets, but
shall not be liable for the acts or omissions of such investment manager
or managers, nor shall it be under any obligation to review or otherwise
manage any fund assets which are subject to the management of such
investment manager or managers. If the employer appoints a trustee,
the trustee shall not be permitted to retain such an investment manager
except with the express written consent of the employer.
3. Common Investments. The employer shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account, but may invest contributions and any
profits or gains therefrom in common investments.
4. Compensation and Expenses of Appointed Trustee. If a trustee is appointed,
the trustee shall be entitled to such reasonable compensation as shall
from time to time be agreed upon by the employer and the trustee,
unless such compensation is prohibited by law. Such compensation,
and all expenses reasonably incurred by the trustee in carrying out
its functions, shall constitute a charge upon the employer or the
pension fund, which may be executed at any time after 30 days written
notice to the employer. The employer shall be under no obligation
to pay such costs and expenses, and, in the event of its failure to
do so, the trustee shall be entitled to pay the same, or to be reimbursed
for the payment thereof, from the pension fund.
5. Periodic Accounting. If a trustee is appointed, the pension fund
shall be evaluated annually, or at more frequent intervals, by the
trustee and a written accounting rendered as of each fiscal year end
of the fund, and as of the effective date of any removal or resignation
of the trustee, and such additional dates as requested by the employer,
showing the condition of the fund and all receipts, disbursements
and other transactions effected by the trustee during the period covered
by the accounting, based on fair market values prevailing as of such
date.
6. Value of the Pension Fund. All determinations as to the value of
the assets of the pension fund, and as to the amount of the liabilities
thereof, shall be made by the employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the participants and beneficiaries and their estates. In making
any such determination, the employer or trustee shall be entitled
to seek and rely upon the opinion of or any information furnished
by brokers, appraisers and other experts, and shall also be entitled
to rely upon reports as to sales and quotations, both on security
exchanges and otherwise as contained in newspapers and in financial
publications.
[Ord. 2012-O-3, 3/14/2012, Art. XI]
1. Amendment of the Plan. The employer may amend this plan at any time
or from time to time by an instrument in writing executed in the name
of the employer under its municipal seal by officers duly authorized
to execute such instrument and delivered to the Board; provided, however:
A. That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which he is entitled
under this plan with respect to contributions previously made.
B. That no amendment shall provide for the use of funds or assets held
under this plan other than for the benefit of employees and no funds
contributed to this plan or assets of this plan shall, except as provided
in subsection (5), ever revert to or be used or enjoyed by the employer.
C. That no amendment to the plan which provides for a benefit modification
shall be made unless the cost estimate described in § 132(3)
has been prepared and presented to the board in accordance with the
Act.
2. Termination of the Plan. The employer shall have the power to terminate
this plan in its entirety at any time by an instrument in writing
executed in the name of the employer consistent with the provisions
of applicable law.
3. Automatic Termination of Contributions. Subject to the provisions
of the Act governing financially distressed municipalities, the liability
of the employer to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
4. Distribution Upon Termination. In the event of the termination of
the plan, all amounts of vested benefits accrued by the affected participants
as of the date of such termination, to the extent funded on such date,
shall be nonforfeitable hereunder. In the event of termination of
the plan, the employer shall direct either (A) that the plan administrator
continue to hold the vested accrued benefits of participants in the
pension fund in accordance with the provisions of the plan (other
than those provisions related to forfeitures) without regard to such
termination until all funds have been distributed in accordance with
the provisions; or (B) that the plan administrator immediately distribute
to each participant an amount equal to the vested accrued benefit
to the date.
If there are insufficient assets in the pension fund to provide
for all vested accrued benefits as of the date of plan termination,
priority shall first be given to the distribution of any amounts attributable
to mandatory or voluntary Participant contributions before assets
are applied to the distribution of any vested benefits attributable
to other sources hereunder.
All other assets attributable to the terminated plan shall be
distributed and disposed of in accordance with the provisions of applicable
law and the terms of any instrument adopted by the employer which
effects such termination.
5. Residual Assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the employer
insofar as such return does not contravene any provision of law, and
any remaining balance, in excess of employer contributions, shall
be returned to the Commonwealth.
6. Exclusive Benefit Rule. In the event of the discontinuance and termination
of the plan as provided herein, the employer shall dispose of the
pension fund in accordance with the terms of the plan and applicable
law; at no time prior to the satisfaction of all liabilities under
the plan shall any part of the corpus or income of the pension fund,
after deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
[Ord. 2012-O-3, 3/14/2012, Art. XII]
1. Actuarial Valuations. The plan's actuary shall perform an actuarial
valuation at least biennially unless the employer is applying or has
applied for supplemental state assistance pursuant to § 603
of the Act, whereupon actuarial valuation reports shall be made annually.
Such biennial actuarial valuation report shall be made as of
the beginning of each plan year occurring in an odd-numbered calendar
year, beginning with the year 1985.
Such actuarial valuation shall be prepared and certified by
an approved actuary, as such term is defined in the Act.
The expenses attributable to the preparation of any actuarial
valuation report or experience investigation required by the Act or
any other expense which is permissible under the terms of the Act
and which are directly associated with administering the plan shall
be an allowable administrative expense payable from the assets of
the pension fund. Such allowable expenses shall include but not be
limited to the following:
A. Investment costs associated with obtaining authorized investments
and investment management fees.
C. Premiums for insurance coverage on fund assets.
D. Reasonable and necessary counsel fees incurred for advice or to defend
the fund.
E. Legitimate travel and education expenses for plan officials; provided,
however, that the municipal officials of the employer, in their fiduciary
role, shall monitor the services provided to the plan to ensure that
the expenses are necessary, reasonable and benefit the plan; and,
further provided, that the plan administrator shall document all such
expenses item by item, and where necessary, hour by hour.
2. Reporting Requirements. Such actuarial reports shall be prepared
and filed under the supervision of the chief administrative officer.
The chief administrative officer of the plan shall determine
the financial requirements of the pension plan on the basis of the
most recent actuarial report and shall determine the minimum municipal
obligation of the employer with respect to funding the plan for any
given plan year. The chief administrative officer shall submit the
financial requirements of the plan and the minimum municipal obligation
of the employer to the Board annually and shall certify the accuracy
of such calculations and their conformance with the Act.
3. Benefit Modifications. Prior to the adoption of any benefit plan
modification by the employer, the chief administrative officer of
the plan shall provide to the board a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Board the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum municipal obligation of the employer
with respect to the plan.
[Ord. 2012-O-3, 3/14/2012, Art. XIII]
1. Employment Rights. No employee of the employer nor anyone else shall
have any rights whatsoever against the employer or the plan administrator
as a result of this plan except those expressly granted to them hereunder.
Participation in this plan shall not give any right to any employee
to be retained in the employ of the employer, nor shall it interfere
with the right of the employer to discharge any employee and to deal
with such employee without regard to the effect that such treatment
might have upon participation in this plan.
2. Meaning of Certain Words. For purposes of this plan, the masculine
gender shall include the feminine and the singular shall include the
plural, and vice versa, in all cases wherever the person or context
shall plainly so require. Headings of articles and sections are inserted
only for convenience of reference and are not to be considered in
the construction of the plan.
3. Construction of Document. This plan may be executed or conformed
in any number of counterparts, each of which shall be deemed an original
and shall be construed and enforced according to the laws of the Commonwealth
of Pennsylvania, excepting such Commonwealth's choice of law rules.
4. Information to Be Furnished by the Employer. The employer shall furnish
to the plan administrator (and where applicable, the trustee) information
in the employer's possession as the plan administrator and the trustee
shall require from time to time to perform their duties under the
plan.
5. Severability of Provisions. Should any provisions of this plan shall
be held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this plan, and the plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted therein.
6. Incapacity of Participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of pension benefits hereunder, the plan administrator, upon
the receipt of satisfactory evidence that such participant is so incapacitated
and that another person or institution is maintaining the participant
and that no guardian or committee has been appointed for the participant,
may provide for such payment of pension benefits hereunder to such
person or institution so maintaining the participant, and any such
payments so made shall be deemed for every purpose to have been made
to such participant.
7. Personal Liability. Subject to the provisions of the Act and unless
otherwise specifically required by other applicable laws, no past,
present or future officer or agent of the employer shall be personally
liable to any participant, beneficiary or other person under any provision
of the plan.
8. Assets of the Fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
9. Pension Fund for Sole Benefit of Participants. The income and principal
of the pension fund are for the sole use and benefit of the participants
covered hereunder, and to the extent permitted by law, shall be free,
clear and discharged 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.
10. Benefits for a Deceased Participant. If any benefit shall be payable
under the plan to or on behalf of a participant who has died, if the
plan provides that the payment of such benefits shall be made to the
participant's estate, and if no administration of such participant'
estate is pending in the court of proper jurisdiction, then the plan
administrator, at its sole option, may pay such benefits to the surviving
spouse of such deceased participant, or, if there be no such surviving
spouse, to such participant's then living issue, per stripes; provided,
however, that nothing contained herein shall prevent the plan administrator
from insisting upon the commencement of estate administration proceedings
and the delivery of any such benefits to a duty appointed executor
or administrator.
[Ord. 2016-O-2, 4/13/2016]
1. Eligible participants, as defined below, shall be entitled to elect
to retire during the applicable election, hereinafter set forth, and
receive an unreduced early retirement benefit. A participant is an
eligible participant upon termination of service during the election
period, prior to reaching the early retirement age and without eligibility
for any other benefit under the plan, provided that he or she, as
of January 1, 2016, has attained the age of 60 and has completed at
least 11 years of credited service. The applicable election period
for an early retirement benefit is the period beginning on April 18,
2016, and continuing until July 18, 2016.
2. Any such election for an early retirement benefit shall be made in
writing and delivered to the Chief Administrative Officer within the
applicable election period. The early retirement benefit shall be
in an amount equal to such participant's early retirement benefit,
as described above, and shall commence as of the first month following,
or commensurate with the date of the retirement election.
3. This early retirement window benefit shall only be applicable to
those persons who meet the definition of an eligible participant for
the period set forth herein, as it is not intended to create a benefit
beyond the time period noted.