[Adopted 12-30-1992 by Ord. No. 9-92]
A pension plan is hereby established for the full-time nonuniformed
employees of Cecil Township. Such plan shall be under the direction
of the Township Supervisors and shall be applied under such regulations
as the Supervisors may prescribe. The effective date of this plan
shall be December 20, 1992.
As used in this article, the following terms shall have the
meanings indicated:
A benefit determined by an actuary to be equivalent in value
to the participant's normal retirement benefit, as defined herein,
provided that such actuarial equivalent is within the limitations
provided herein.
Registered at an accredited institution of higher learning
and carrying a minimum course load of at least seven credit hours.
[Added 2-1-2021 by Ord.
No. 2-2021]
The governing body of the Township of Cecil acting in the capacity of administrator of the nonuniformed employees pension plan established pursuant to this Article II.
The persons which may be appointed to serve in an advisory
capacity to the Board in the administration of the plan.
The monies received by a participant in each and every month,
including base pays, longevity pay, night differential, overtime,
and any other such increments. Payments made for unused vacation time
will be included for computation of retirement benefits. Payments
made for unused "sick time" will not be included for computation of
retirement benefits.
The monies paid by the employer to the plan and/or the payroll deductions made monthly from the compensation of the participants and paid to the plan; except that "contributions" in § 32-16G shall mean the participant's total contributions accumulated during the period of employment arid participation in this plan.
The Township of Cecil.
The value of any participant's benefits which shall accrue by virtue of that participant's service rendered subsequent to the enactment of this Article II.
Every person duly appointed from time to time by the employer
as a full-time nonuniformed employee working not less than 35 hours
per week with definite compensation, subject to reasonable vacation
and sick leave, to be included in the plan upon date of hire.
The nonuniformed employees pension plan established pursuant to this Article II.
Total aggregate service with the employer, not necessarily
continuous, beginning upon date of hire. Service of six months or
more will be counted as a full year; service of less than six months
will be disregarded.
The cessation of service by the participant for any reason, including death, disability, resignation, and employer termination. Voluntary leaves of absence, without pay, shall not be considered a termination for purposes of this subpart, but no period of such leave shall be computed in the total service for pension benefit purposes. Leaves of absence with pay shall not be considered a termination within the meaning of this Article II, provided that the Township is able to certify to the Department of the Auditor General that such participant on a leave of absence with pay is within the definition of a "participant" as set forth herein, but such leaves may be computed in the total service for pension benefit purposes.
The present value of any participant's benefits accrued prior to the enactment of this Article II by virtue of that participant's prior service.
A.
The Board shall administer the plan by such regulations as shall
from time to time be necessary for the effective maintenance of the
plan, provided that no regulation shall be contrary to the statutes
of the Commonwealth of Pennsylvania and/or applicable federal regulations.
B.
The Board may appoint a committee, which shall act as an advisory body to the Board in the administration of the plan according to the regulations established pursuant to this Article II.
C.
The Committee.
(1)
The Committee shall consist of three members, which number shall
include one chosen from the Board and one chosen by a majority of
the participants in the plan. The final member of the Committee shall
be neither a member of the Board nor a participant in the plan but
shall be a "citizen-at-large" and shall be appointed by the Board.
(2)
All persons so designated shall serve at the pleasure of the Board
for a three-year term, with one member being selected each year. Any
member may resign upon written notice to the Board and the Committee.
Any vacancies in the Committee arising from resignation, death or
removal shall be filled by the Board by the procedure set out herein
for the member of the Committee whose resignation, death or removal
has created the vacancy.
(3)
The Committee shall meet no less than annually, and members shall
serve without compensation for their services.
D.
Procedures; records.
(1)
The Committee shall act by such procedure as the Committee shall
establish, provided that all decisions shall be by majority vote.
The Committee may authorize one of its members to execute any document
or documents on behalf of the Committee, may adopt bylaws and regulations
as it deems necessary for the conduct of its affairs, and may appoint
such accountants, counsel, specialists or such other personnel as
it may deem desirable for the proper administration of the plan, provided
that all such execution of documents, adoption of bylaws and regulations,
and appointments shall be submitted to the Board for approval.
(2)
The Committee shall keep a record of all its proceedings and acts
which shall relate to the plan and shall keep all such books of accounts,
records and other data as shall be necessary for the proper administration
of the plan. All actions of the Committee shall be communicated to
the Board in a timely fashion.
E.
All such reasonable expenses incurred in the administration of the
plan, including, but not limited to, fees for the services of specialists,
including actuaries, accountants, consultants and legal counsel, shall
be approved by the Board and all may be paid from the plan, provided
that no such payment shall be contrary to the statutes of the Commonwealth
of Pennsylvania.
F.
No member of the Board or the Committee established pursuant to this
section shall incur any liability for any action or failure to act,
excepting only liability for his/her own gross negligence or willful
misconduct. The employer shall indemnify each member of the Board
and the Committee against any and all claims, loss, damages, expense
and liability arising from any action or failure to act, except for
such that is the result of gross negligence or willful misconduct
of such member.
[Amended 4-18-2000 by Ord. No. 03-00]
A.
Eligibility for normal retirement.
(1)
A participant in the plan may retire from active employment on the
first day of the month following the attainment of age 62, provided
that the participant has completed 10 or more years of service with
the employer, otherwise known as the "superannuation retirement date."[1]
[1]
Editor's Note: This subsection also included the following
provision: "However, current participants, namely Frank Egizio and
Lillian Veres, may retire on the first of the month following the
attainment of age 65; no minimum years of service required. (As per
Article 403.1A of Ord. 5-85, 10-2-1985)"
(2)
A participant shall retire on the first day of the month following
the attainment of age 70.
B.
Early retirement. A participant may retire on the first day of the
month following the attainment of age 50, provided that the participant
has completed 25 or more years of service.
C.
Normal retirement benefit. A participant who shall complete the age
and service requirements as set forth in this section shall receive
a pension for life, payable in equal monthly installments, in an amount
to be computed by applying 2% for each year of service (maximum 35
years) times the average monthly compensation for the thirty-six-month
period immediately preceding the participant's retirement.
[Amended 2-1-2021 by Ord. No. 2-2021]
D.
Actuarial equivalent benefits. In lieu of the retirement benefits
contained herein, a participant may elect in writing an actual equivalent
as may be provided for by regulation, provided that no such equivalent
benefit may work the effect of providing a lump-sum amount of money
or provide for a pension for a period less than life or provide for
a pension less than the amount herein established, unless such amount
is reduced to pay the cost of an additional benefit, such as a one-hundred-twenty-month
certain benefit.
E.
Designation of beneficiaries.
(1)
Each participant shall have the right to name the beneficiary or
beneficiaries for preretirement death benefits incidental to policies
of insurance purchased primarily to fund the participant's pension,
provided that the ownership of such policies shall remain in the plan
and shall be endorsed to prevent the assignment of ownership to the
insured.
(2)
If the participant shall fail to name a beneficiary or beneficiaries,
such benefits as would have accrued to the participant's beneficiary
or beneficiaries shall be paid to the participant's estate.
(3)
Each participant may, from time to time, change the name of the beneficiary
or beneficiaries in such form and in such manner as shall be prescribed
by the Board and follow such procedure as may be required by the insurance
company.
(4)
The
surviving spouse of a nonuniformed employee or retired nonuniformed
employee who dies while receiving a pension shall be entitled to receive
during his or her lifetime a pension calculated at no less than 50%
of the pension the member was receiving or would have received had
the member been retired at the time of death.
[Added 2-1-2021 by Ord.
No. 2-2021]
(5)
If
the employee is not survived by a spouse but is survived by a child
under the age of 18 (or under the age of 23, if the child is attending
college), then the child shall be entitled to receive a pension calculated
at no less than 50% of the pension the member was receiving or would
have received had the member been retired at the time of death. The
child's right to receive the pension will continue until the child
reaches the age of 18 (or age 23, if the child is attending college).
[Added 2-1-2021 by Ord.
No. 2-2021]
F.
Vested benefit.
(1)
A vested deferred monthly benefit shall be provided for any participant
whose termination date occurs prior to that participant's normal retirement
date, provided that the participant shall have notified the employer
of such intention to vest within 90 days of the participant's date
of termination. Such vested deferred monthly benefit shall be based
on the participant's completed years of service as of the termination
date in accordance with the following schedule:
|
Years of Service
(years)
|
Vested Percentage
| |
|---|---|---|
|
5
|
50%
| |
|
6
|
60%
| |
|
7
|
70%
| |
|
8
|
80%
| |
|
9
|
90%
| |
|
10
|
100%
|
(2)
Such vested deferred monthly benefit may be funded through the purchase of a single-premium deferred annuity, which shall provide for the monthly benefit to be paid to the participant upon attainment of that participant's normal retirement age as set forth in this Article II.
(3)
Each terminated vested participant shall qualify for a preretirement
death benefit equal to the actuarial equivalent of his/her vested
benefit. Said actuarial equivalent benefit shall be paid in equal
monthly installments over a ten-year period to the participant's named
beneficiary or to his/her estate.
G.
Termination.
(1)
If for any reason a participant shall terminate service with the
employer prior to becoming vested, that participant shall be entitled
to a refund of that participant's contributions plus interest at a
rate of 6% per annum. Such interest shall be uniform for all participants.
(2)
If a participant shall subsequently return to service and return
to the plan the contributions plus interest which were refunded to
that participant upon termination, the participant shall be entitled
to credit for the prior years of service to the extent of the return
of contributions.
H.
Nonalienation of benefits and vesting.
(1)
No benefit under the plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, or charge.
Nor shall any such benefits be in any manner liable for or subject
to garnishment, attachments, execution, levy or other legal process.
(2)
Further, all benefits granted herein shall vest in the participant
upon completion of the requirements for eligibility, and that participant's
benefits shall continue in the amount and in the form in which that
participant first became entitled to them.
A.
Contributions of the employer.
(1)
It shall be the liability of the employer to fund the past service liability as determined by the actuary, provided that such liability may be funded over a period not to exceed 15 years, such period commencing with the passage of this Article II.
(2)
It shall be the liability of the employer to fund for the future
service cost of the plan.
(3)
It shall be the responsibility of the employer to maintain the actuarial
soundness of the plan.
(4)
Contributions to the plan paid by the employer shall be at an amount
determined by an annual actuarial study, which study shall be completed
on a calendar-year basis.
B.
Contributions of the participants.
(1)
Contributions to the plan paid by the participants shall be at the
maximum rate of 3% of monthly compensation.
(2)
Contributions to the plan paid by the participant may be reduced
or eliminated at the discretion of the Board. The reduction or elimination
of contributions by the participants shall be effected by resolution
and shall be effective for one calendar year only.
C.
Allocation of commonwealth funds. The payments made by the State
Treasurer to the employer from the monies received from the taxes
paid on the premiums of foreign casualty insurance companies for purposes
of retirement or disability benefit pensions for municipal employees
shall be used as follows:
D.
Allocation of assets of existing pension plans. Any assets of any existing pension plans for the nonuniformed employees of the Township are hereby transferred to the plan established pursuant to this Article II and shall be applied against the unfunded liability.
E.
Gifts, bequests and grants. All other monies and property received
by the plan, including gifts, bequests, devises, and grants, shall
be applied against the employer portion of the future service cost
unless otherwise specifically provided.
Any participant in the plan with at least six months of service
with the employer, who thereafter shall enter the military service
of the United States of America, shall have credited to that participant's
service record for pension benefit purposes only the initial term
of military service of the participant, provided that the participant
returns to service with the employer within six months after said
participant's separation from such military service.
Upon termination of the plan, the assets shall be distributed
as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 32-16 for all participants who have retired prior to the termination of the plan or who are eligible to retire at the time of the termination of the plan.
B.
Sufficient funds shall be maintained to provide the vested pension benefits prescribed in § 32-16 for all participants who are eligible for such benefits.
C.
Of the remaining funds, those which can be identified as contributions
of the employees and employer shall be distributed as the Board sees
fit, provided that such distribution is made on a uniform basis.
A.
Neither the establishment of the plan hereby created, nor any modification
thereof, nor the creation of any fund or account, nor the payment
of any benefits shall be construed as giving to any participant or
other person any legal or equitable right against the employer or
any officer or employee thereof or the Board, except as herein provided.
B.
Under no circumstances shall the plan hereby created constitute a
contract for continuing employment for any participant or in any manner
obligate the employer to continue or to discontinue the service of
an employee.
C.
This plan has been established and shall be maintained by the employer
in accordance with the laws of the Commonwealth of Pennsylvania. The
plan shall continue for such period as may be required by such laws,
provided that the employer may, by its own action, discontinue this
plan should such laws provide, and the employer reserves the right
to take such action in its sole and absolute discretion. Upon termination,
the employer shall have no liability hereunder other than that imposed
by law.
A.
All investments by the Board of the assets of this plan shall comply
with such regulations as the Board shall establish for the purpose
of investing such funds.
B.
The Board may also purchase retirement annuities or retirement income
endowment policies, or a combination of both, which provide a cash
value with which to fund pensions, provided that the Board shall determine
the value of any policies purchased, the company with which the contracts
shall be made, and the time to purchase such policies. The Board shall
also have the obligation to insure that the policies purchased provide
benefits on a uniform scale, and that such policies are endorsed to
the ownership of the plan.
The Board reserve the right to amend at any time, in whole or in part, any or all of the provisions of the plan, provided that no such amendment shall authorize or permit any part of the plan's assets to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries or their estates. Nor shall any amendment divest a participant of benefits vested by the provisions of § 32-16. All such amendments shall comply with the applicable statutes of the Commonwealth of Pennsylvania.
A.
This plan shall be constructed according to the laws of the Commonwealth
of Pennsylvania, and all provisions hereof shall be administered according
to the laws of such commonwealth.
B.
Wherever any words are used herein in the masculine gender, they
shall be construed as though they were also used in the feminine gender
in all cases where they would so apply; and wherever any words are
used herein in the singular form, they shall be construed as though
they were also used in the plural form in all cases where they would
so apply.
