[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:
ACTUARIAL EQUIVALENT
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.
ATTENDING COLLEGE
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]
BOARD
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.
COMMITTEE
The persons which may be appointed to serve in an advisory capacity to the Board in the administration of the plan.
COMPENSATION
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.
CONTRIBUTION
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.
EMPLOYER
The Township of Cecil.
FUTURE SERVICE LIABILITY
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.
PARTICIPANT
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.
PLAN
The nonuniformed employees pension plan established pursuant to this Article II.
SERVICE
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.
TERMINATION
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.
UNFUNDED LIABILITY
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.
(3) 
Nothing in this section shall be construed to allow credit for service not actually given to the employer, except as specifically provided in § 32-18.
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:
(1) 
To reduce the unfunded liability; or after such liability is funded:
(2) 
To apply against the annual obligation of the employer for future service cost; or to the extent that the payment may be in excess of such obligation:
(3) 
To reduce or eliminate the contributions paid by the participants.
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.
D. 
All funds in excess of the funds described in Subsections A, B and C above shall be returned to the commonwealth as unused funds.
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.
C. 
Headings of sections and subsections of this Article II are inserted for convenience of reference. They constitute no part of this plan and are not to be considered in the construction thereof.