The Township of Millcreek has established and maintains more
than one pension plan for its employees, and there are pension funds
associated with those pension plans. The Township shall aggregate
the assets to the credit of the various pension funds into a single
pension trust fund. Subsequent to the aggregation, the pension trust
fund shall be the funding mechanism for all pension plans connected
with the aggregation.
A. Each pension plan subject to the aggregation shall have an undivided
participation in the assets of the combined pension trust fund. For
accounting purposes, the value of the participation by each plan shall
be calculated annually.
B. The value for the initial year following aggregation shall be that
portion of the total value of the pension trust fund which bears the
same relationship that the value of the assets of the pension plan,
as of the date of the aggregation plus the contributions received
by the pension trust fund with respect to that pension plan since
the date of aggregation and reduced by the amount of retirement annuities
and benefits paid from the pension trust fund for annuitants and benefit
recipients of that pension plan since the date of aggregation, bears
to the total value of all assets transferred to the pension trust
fund as of the date of aggregation plus the total contributions received
by the pension trust fund since the date of aggregation and reduced
by the total amount of retirement annuities and benefits paid for
all annuitants and benefit recipients since the date of aggregation.
The value of the participation for each year subsequent to the initial
year following aggregation shall be that portion of the total value
of the pension trust fund which bears the same relationship that the
value of the participation of the pension plan, as of the close of
the preceding year plus the contributions received by the pension
trust fund with respect to that pension plan during the year and reduced
by the amount of retirement annuities and benefits paid from the pension
trust fund for annuitants and benefit recipients of that pension plan
during the year, bears to the total value of all participation in
the pension trust fund as of the close of the preceding year plus
the total contributions received by the pension trust fund during
the year and reduced by the total amount of retirement annuities and
benefits paid for all annuitants and benefit recipients during the
year.
C. Legal title to assets in the aggregated pension trust fund shall
be in the municipality as trustee, or its nominees as trustees, for
any person having a beneficial interest in a particular pension plan
which is associated with the pension trust fund.
D. The assets of the aggregated pension trust fund shall be invested
in investment securities which are authorized investments pursuant
to any applicable law for any of the associated pension plans.
E. Investment earnings shall be allocated to each associated pension
plan in proportion to the most recently determined participation value.
F. Valuation of assets shall be pursuant to the provisions of Section
202(e)(1) and any applicable rules and regulations issued by the
Commission.
G. The aggregated pension trust fund shall be managed by a board of
trustees. The board of trustees shall include at least one representative
of the active membership of each pension plan included in the aggregated
pension trust fund, who shall be elected by the active membership
of the applicable pension plan. The remaining members of the board
of trustees shall be drawn from the managing boards or entities of
the associated pension plans in a number equal to the members elected
by the employees. If there is a deadlock, the members of the managing
boards or entities shall mutually agree upon a member of the general
public to cast the deciding vote.