[Ord. 892, 10/15/2007, § 1; as amended by Ord.
959, 12/5/2011, Part 2]
1.
Pursuant to Chapter 1, Part 12B, of the Township of Ferguson (hereinafter referred to as the "employer"), Code of Ordinances (Ord. 828, as amended) (hereinafter referred to as "Prior Plan"), the Township has maintained a pension plan for the benefit of full-time police officers known as the Township of Ferguson Police Pension Plan.
2.
Effective January 1, 2005, except to the extent a different date
is indicated in the text herein, the Township desires to amend and
restate the Prior Plan, in its entirety, the terms of which are hereinafter
set forth. This document shall continue to be known as the Township
of Ferguson Police Pension Plan (hereinafter referred to as the "Plan").
3.
The purpose of this Plan continues to be to provide retirement income
for the benefit of its eligible employees and their beneficiaries,
but limited to those who qualify in accordance with the terms and
conditions of the Plan as set forth herein.
4.
The Township intends that this Plan, together with any related trust
agreement, shall meet all the pertinent requirements for qualification
under the Internal Revenue Code of 1986, as amended, and the Plan
and trust agreement shall be interpreted, wherever possible, to comply
with the terms of said Code and all formal regulations and rulings
pertinent to the Plan and trust agreement issued thereunder. Further,
the Plan is required to comply with the applicable terms of the Pension
Protection Act of 2006 (PPA) and the Heroes Earnings Assistance Relief
Tax Act (HEART Act), as amended.
5.
Each retired participant who terminated employment on or before December
31, 2004, shall receive his/her benefits under the Plan as it existed
prior to this restatement, except where otherwise specifically provided
herein.
6.
Each terminated participant who terminated employment prior to January
1, 2005, with a vested interest in his/her accrued benefit under the
Prior Plan and who had not commenced receiving his/her retirement
benefit on such date will be eligible to receive retirement benefit
on such benefit commencement date as set forth in the Prior Plan.
The provisions of this Plan shall apply only to any participant who
terminates employment on and after January 1, 2005, except where specifically
provided to the contrary.
[Ord. 892, 10/15/2007, § 1]
A fraction, the numerator of which represents the participant's
total cumulative years of service earned to the date of determination,
and the denominator of which represents the total possible years of
service he/she could earn from his/her date of hire to his/her normal
retirement date. In addition and notwithstanding the foregoing, a
participant's accrued benefit percentage may never exceed the number
one. The "accrued benefit" shall be the accrued benefit percentage
times 50% of the final monthly average salary, as of the date of determination.
Two forms of payment of equal actuarial present value on
a specified date. "Actuarial value" shall be based upon 7% interest
and UP-1984 Mortality Tables.
The person specified by each participant on becoming a participant
by way of written notice which designates his/her beneficiary or beneficiaries
to the Plan Administrator. The participant's' election of any such
beneficiary or beneficiaries may be rescinded or changed without the
consent of the beneficiary or beneficiaries, at any time provided
the participant provides the Plan Administrator with written notice
of the changed designation and complies with any procedures established
by the Plan Administrator.
The Ferguson Township Board of Supervisors.
The base salary (not including longevity) of a participant,
received or receivable during the participant's employment with the
Township as an eligible employee, that shall be considered under the
Plan for purposes of calculating benefits and contributions, and in
applying any applicable limitations to such benefits or contributions.
Base salary shall exclude all overtime, bonuses, premiums and other
recuperation not paid in a fixed amount at periodic intervals.
Any natural-born child, any legally-adopted child, any stepchild,
or any foster child of a participant, which child is unmarried, has
not yet attained age 18, and, in the case of a foster child, resides
in such participant's household.
A medically determined physical or mental impairment which
can be expected to result in death or to last at least 12 months and
which prevents a person from engaging in his/her usual duties or any
other similar duties available in the Township's employ. No participant
shall be found to be disabled until at least six months from the date
of the commencement of the condition which ultimately results in disability.
Such disability must be evidenced by a certificate of a reputable
licensed physician either selected or approved by the Township. For
participants hired on or after January 24, 2001, such participant
shall not be considered disabled or to have a disability unless the
participant's disability results from injuries incurred in the course
of performance of his/her duties as a police officer for the Township.
A regularly scheduled, full-time police officer of the Township.
For the purpose of this definition, full-time shall mean regularly
scheduled to work at least 40 hours per week. Any police officer employed
as a temporary, special, part-time, or permanent part-time officer
of the Township shall not be considered an eligible employee for purposes
of this Plan.
The spouse to whom a participant is married.
The compensation of a participant related to and averaged
over the participant's final 36 months of service.
A person who had become a participant, but who subsequently
ceased to be an eligible employee on account of death or other termination
of employment with the Township.
Former participant(s) who are entitled to current or future
benefits from the Plan and participant(s).
For participants hired before January 24, 2001, other than
incurring a disability, shall mean the date on which a participant
attains age 50 or completes 20 years of service, whichever is later.
For participants hired on or after January 24, 2001, "normal retirement
date" shall mean the date on which the participant attains age 55
or completes 25 years of service, whichever is later.
An eligible employee, effective as of the date on which such
employee first commences or recommences service with the Township
and who has not for any reason ceased to be a participant hereunder.
The police pension fund administered under the terms of this
Plan and which shall include all money, property, investments, policies
and contracts standing in the name of the Plan.
The continuous period during which an eligible employee is
directly entitled to compensation by the Township for the performance
of duties as a full-time police officer of the Township or receives,
or is entitled to receive, payment for:
The time actually worked for the Township as an eligible employee.
Absence due to vacation, holidays, or sickness.
An authorized leave of absence.
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that the
participant has been employed as a regular full-time member of the
Township's police force for a period of at least six months immediately
prior to the period of military service, and the participant returns
as an eligible employee within six months following discharge from
military service or within such longer period during which employment
rights are guaranteed by applicable law or under the terms of the
collective bargaining agreement with the Township and subject to the
condition that the participant contributes to the Plan an amount equal
to the sum of contributions that would have been payable had the participant
remained an active member during his/her period of military service
and subject to the limitations contained in Act 600.
Any period of voluntary or involuntary military service with
the armed forces of the United States of America not to exceed a total
of two years which occurred prior to the date on which a participant
first became employed as an eligible employee of the employer, provided
that the participant shall purchase such credit and that such participant
is not entitled to receive, eligible to receive or is receiving retirement
benefits for such military service under a retirement system administered
and wholly or partially paid for by any other governmental agency
except military retirement pay earned by a combination of active and
nonactive duty with a reserve or national guard component of the armed
forces which is payable upon the attainment of a specified age and
period of service under 10 U.S.C. Ch. 67 (relating to retired pay
for non-regular service). The purchase price for such service shall
be computed by multiplying the average normal cost rate for the Plan
as certified by the Public Employee Retirement Commission and not
to exceed 10% times the participant's average annual rate of compensation
during the first three years of employment and multiplying the result
times the number of years and fractions thereof being purchased. Interest
shall be paid at a rate of 4.75% compounded annually from the first
date of employment to the date of payment.
The Township of Ferguson located in Centre County, Pennsylvania.
Twelve complete calendar months of service.
[Ord. 892, 10/15/2007, § 1]
1.
Entitlement. A former participant must satisfy at least one of the following requirements to become entitled to the retirement benefit described in Subsection 2 below:
A.
Have reached normal retirement date on or before the date on which
he/she became a former participant.
B.
Have satisfied the conditions for entitlement to a deferred vested benefit as set forth in Subsection 4. Note that this benefit is available based upon the condition that it will not impair the actuarial soundness of the Plan. Note that the failure to file an election to vest will result in a payment of member contributions and associated earnings in a lump-sum to the former participant pursuant to § 1-1226.3 of the Plan.
2.
Retirement Benefit. A former participant who satisfies the conditions
for entitlement described in the foregoing subsection shall be entitled
to a monthly amount payable for his/her life, which amount (referred
to hereinafter as the "retirement benefit" or "normal retirement benefit")
is derived from the following formula:
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(a x b)
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Where, with respect to said former participant,
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a = 50% of final average monthly salary.
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b = The accrued benefit percentage.
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Provided, however, that payment of benefits upon retirement
shall be conditioned upon a former participant's being subject to
service from time to time as a police reserve in cases of riot, tumult
or preservation of the public peace until unfitted for such service,
at which time such former participant shall be finally discharged
by reason of age or disability upon written notice from the Board.
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3.
Commencement. The retirement benefit of a former participant shall
become payable on the first day of the calendar month coincident with
or next following the later of: (A) the date the former participant
would reach his/her normal retirement date if he/she continued to
be an eligible employee until such date; or (B) the date on which
his/her employment terminated with the Township and, thereafter, the
first day of each month during the former participant's lifetime.
Notwithstanding anything contained herein to the contrary, no retirement
benefit payments nor any other 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 Administrator receives
the application for benefits.
4.
Deferred Vested Benefit.
A.
For participants hired before January 24, 2001: A participant eligible for a deferred vested benefit according the vesting schedule set forth below shall be entitled to receive a deferred vested benefit in lieu of a return of member contributions (and interest) under § 1-1226 by filing with the Township of Ferguson, within 90 days of the date he/she ceases to be a full-time police officer, a written notice of his/her intention to vest. The benefits which a participant shall have a vested right to obtain are defined as follows:
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A percentage based on years of service, as in the schedule below,
multiplied by the participant's accrued benefit as of his/her date
of termination of employment such as he/she is no longer accruing
service.
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Years of Service
|
Vested Percentage
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|---|---|---|
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0-4
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0%
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5
|
25%
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6
|
30%
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7
|
35%
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|
8
|
40%
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|
9
|
45%
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|
10
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50%
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11
|
60%
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|
12
|
70%
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|
13
|
80%
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14
|
90%
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15 or more
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100%
|
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The vested benefit determined above shall become payable on
the participant's normal retirement date.
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B.
Participants hired on or after January 24, 2001, who, after completing 12 years of service, cease to be an eligible employee before reaching his or her normal retirement date, shall be entitled to vest his or her retirement benefits by filing with the Township a written notice of his or her intention to vest within 90 days after he or she ceases to be an eligible employee. Upon reaching the date which would have been his or her normal retirement date if he or she had continued to be employed as an eligible employee, he or she shall be paid a retirement benefit calculated as set forth in Subsection 2 with, for the purposes of that calculation, final average salary being calculated over the final 36 months the former participant was an eligible employee.
5.
Form of Benefit Payment. Notwithstanding anything contained herein to the contrary, a participant hired before January 24, 2001, who gives at least 30 days' written notice to the Plan Administrator before the date retirement payments shall commence, may choose to receive retirement payments in an optional form which is the actuarial equivalent of the retirement benefit as described in Subsections 2 and 4. The following options may be selected; the joint and survivor annuity option which shall pay a reduced amount monthly to the participant until death and if the participant's beneficiary is then living shall pay a monthly amount to the beneficiary until death equal to 50% or 100% of the monthly amount paid to the participant, whichever amount shall have been chosen by the participant.
[Ord. 892, 10/15/2007, § 1]
1.
Disability Benefit.
A.
A disabled participant shall be entitled to receive a monthly benefit
equal to 100% of the present value of his or her accrued benefit.
This amount shall be offset or reduced by any amounts payable pursuant
to the short-term disability insurance plan funded by the employer.
The disability benefit entitlement shall begin on the first day of
the calendar month coincident with or next following the date on which
the participant has satisfied the Plan's definition of disability
and shall continue, except as noted below, until the earliest of his/her
death or recovery from disability.
B.
Notwithstanding anything to the contrary in this subsection, for disabilities incurred after April 17, 2002, which are the result of injuries incurred in the performance of the participant's duties as a police officer for the Township, the disability benefit payable to a participant who meets the requirements of § 1-1222 of the Plan is a monthly benefit calculated at 50% of the participant's salary (within the meaning of "salary" under Act 30 of 2002) at the time the disability was incurred provided that any participant who receives benefits for the same injuries under the Social Security Act (42 U.S.C. § 301 et seq.) shall have his/her disability benefits offset or reduced by the amount of such benefits. Notwithstanding anything to the contrary in this Plan, anyone receiving benefits under this paragraph shall receive no other disability benefits or retirement benefits under this Plan.
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To the extent permitted by applicable law, any disability benefit
payable under this Subsection 1B shall be offset or reduced by any
amounts payable pursuant to the short-term disability plan funded
by the employer.
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2.
Payment of Disability Benefits. Disability payments shall be made monthly as of the first day of each month, continuing until the termination of the disability benefit as provided in Subsection 3 hereof or attainment of normal retirement age (such a disabled participant who attains normal retirement age shall thereafter receive a normal retirement benefit pursuant to § 1-1223). Notwithstanding anything contained herein to the contrary, no disability benefit payments shall be required to be paid on or before the first day of the month coincident with or next following the date that is 30 days after the date that the Administrator receives the certificate of the physician evidencing the disability, although benefit entitlement shall be retroactive to the first day of the month immediately following or coincident with the participant's disability.
3.
Termination of the Disability Benefit. The disability benefit described
above shall be terminated:
A.
If the Township shall determine, on the basis of a medical examination
by a physician acceptable to the Township (and agreed to by the disabled
participant) that the disabled participant, prior to his/her normal
retirement date, has sufficiently recovered to return to service.
If the Township and the disabled participant cannot agree on a physician,
they shall each select a physician who will then select a third physician
who will make a final binding decision (The physician determined pursuant
to this paragraph shall be hereinafter referred to as the "selected
physician").
B.
If the disabled participant refuses to undergo a medical examination
by the selected physician, if so available (if not so available, the
selection process in Subsection 3A above shall be reinitiated), which
may be requested by the Township or the Administrator; provided that
the disabled participant may not be required to undergo a medical
examination more often than once every six months.
C.
If the disabled participant is employed in any capacity as a full-time
or part-time police officer after qualifying for the disability benefit.
D.
If the disabled participant recovers from his/her disability and
does not return to service.
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From time to time, the Board shall adopt uniform provisions
for disability participants whose disability benefit is terminated
pursuant to the above and for disabled participants who recover from
disability and return to service.
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4.
Requirement of Notification. A disabled participant who is receiving
benefits from the Plan on account of disability shall be required
to notify the Administrator of any change which may cause a cessation
of entitlement to receipt of such benefits. To the extent a disabled
participant fails to provide immediate notice to the Administrator
of any such change in status and who continues to receive benefits
to which he/she is not entitled from the Plan on account of disability,
the Administrator may take any action necessary to recover any amount
improperly paid, including legal action or the offsetting of such
amounts against future payments on account of retirement or death
under the Plan, including the costs of such actions.
[Ord. 892, 10/15/2007, § 1; as amended by Ord.
931, 3/1/2010, § 1]
1.
Preretirement Death Benefit. In the event that an actively employed
participant shall die, his/her beneficiary shall be entitled to receive
a lump sum benefit equal to the present value of the participant's
accrued benefit, determined as of the date of death. If no beneficiary
is selected, the death benefit shall be payable in a lump sum to his
or her estate. If any benefits are paid pursuant to this subsection
no participant, former participant, member, beneficiary or survivor
of any of the foregoing will be entitled to any other benefits under
this Plan.
2.
Other Death Benefits. The surviving spouse of an actively employed
participant who dies on or after April 17, 2002, before his/her pension
has vested, and whose survivors are entitled to no benefits under
any other sections of this Plan, or if no spouse survives or if he
or she survives and subsequently dies, the child or children under
the age of 18 years, or if attending college, under or attaining the
age of 23 years, of a participant shall be entitled to receive repayment
of his/her member contributions (including interest at 6% per annum)
unless the participant has designated another beneficiary. Any person
or entity receiving a return of contributions under this subsection
will be entitled to no other benefits under this Plan.
3.
Retirement Death Benefit. If a former participant who began to receive
pension benefits under this Plan prior to April 17, 2002, dies, there
shall be no death benefit payable from the Plan, except as may be
provided for in the annuity option that was elected by the former
participant at the time of his/her retirement pursuant to Plan § 1-1223.5.
4.
Survivor Benefits for Members Who Die After Retiring or After They Are Eligible to Retire. Effective April 17, 2002, notwithstanding anything in Subsection 3 to the contrary, if a participant "retires on pension" (within the meaning of Act 30 of 2002) and dies, a monthly benefit shall be paid to the surviving spouse or if no spouse survives, of if he or she survives and subsequently dies, then the child or children under the age of 18 years if attending college, under or attaining the age of 23 years in the case of a child or children, in the amount of 50% of the monthly pension benefit the member was receiving or would have been receiving had he/she been retired at the time of his/her death. For the purposes of this section, a participant who has attained his/her normal retirement date and dies prior to retiring shall be treated as if he/she had retired on the day before his/her death. Notwithstanding anything to the contrary in this Plan, anyone receiving benefits under this subsection shall receive no other benefits under this Plan. The phrase "attending college" shall mean the eligible children are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester. This Subsection 4, insofar as Act 30 of 2002 affects the benefits available to surviving spouses, shall apply to surviving spouses whose spouse died on or before April 17, 2002, and who were not remarried as of April 17, 2002.
[Ord. 892, 10/15/2007, § 1]
1.
Member Contributions, Defined. The term "member contribution" shall
mean any amount deposited into the Plan by a participant. Contributions
may be reduced or eliminated provided that any reduction or elimination
of contributions is authorized on an annual basis by an ordinance
or resolution by the Board. Note: See the applicable collective bargaining
agreement for further details associated with member contributions,
possible relief thereof and reductions in benefits as permitted by
law. Member contributions shall be subject to the following provisions:
A.
To the extent such monies are needed to avoid any member contributions
to the Plan, the employer shall utilize state aid contributions that
it receives due to the existence of the Plan.
B.
When contributions are required to maintain the actuarial soundness
of the Plan as determined by the Plan actuary, participants shall
be required to contribute as follows: participants covered by Social
Security may be required to contribute up to 5% of their compensation:
and participants not covered by Social Security may be required to
contribute up to 8% of their compensation.
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Member contributions shall be "picked up" by the employer and
shall be treated as employer contributions for federal income taxation
purposes pursuant to § 414(h)(2) of the Internal Revenue
Code. Notwithstanding the foregoing, contributions so picked up shall
be treated as member contributions for all purposes of state and local
law.
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2.
Crediting of Interest. Interest shall accrue to member contributions
at the rate of 6% per annum. Such interest shall be credited from
the midpoint of the year (or part of the year) when made through the
date of participant's termination of eligible employment.
3.
Withdrawal.
A.
Member contributions, in addition to the interest accrued thereon,
(hereinafter referred to collectively as the "member contribution
account"), may be withdrawn from the Plan by or on behalf of a former
participant only under the following circumstances:
B.
Where the above conditions for the withdrawal of the member contribution
account have been satisfied, payment of the member contribution account
shall be made to the former participant, or in the event of the former
participant's death, to the former participant's beneficiary, or if
a beneficiary does not exist, to the former participant's estate.
Such payment shall commence on or after the first day of the calendar
month coincident with or next following the date on which the former
participant (1) became a former participant or (2) failed to elect
vesting in a retirement benefit to which he/she had become entitled,
whichever is later.
C.
Upon the distribution of the member contribution account, the entitlement
of the former participant, his/her spouse, survivors, children or
his/her beneficiary to any future retirement benefit, disability benefit,
or death benefit, shall cease and they shall be excluded from further
participation in the Plan and they shall have no further rights therein.
[Ord. 892, 10/15/2007, § 1]
The Municipal Pension Plan Funding Standard and Recovery
Act, Act of December 18, 1984, P.L. 1005, No. 205, as amended, 53
P.S. § 895.101 et seq.
The Police Pension Fund Act, Act of May 29, 1956, P.L. 1804,
No. 600, as amended, 53 P.S. 767 et seq.
A person who has at least five years of actuarial experience
with public pension plans and who is either a member of the American
Academy of Actuaries or enrolled as an actuary pursuant to the Federal
Employee Retirement Income Security Act of 1974.
The Township Manager. The Administrator serves pursuant to
the discretion of the Board and any decision or determination of said
Administrator may be reviewed by the Board with the right reserved
by the Board to overrule, amend, modify, alter or change any decisions
or determinations of said Administrator in such manner and to such
extent as may seem proper to the Board.
The Board of Supervisors of Ferguson Township in whom rests
the responsibility for appointing the Chief Administrative Officer
and for deciding and approving any matter of finance that affects,
or could affect, the Plan, its participants, or beneficiaries. All
powers relative to the operation and administration of the Plan shall
specifically reside with the Board unless delegated pursuant to this
Plan document.
The individual, designated by the Board, who shall have the
power and authority to perform all acts and to execute, acknowledge,
and deliver all instruments necessary to implement and effectuate
the purpose of the Plan. Where the Board fails to designate a Chief
Administrative Officer, the Chief Administrative Officer shall be
the Township Manager.
The Internal Revenue Code of 1986, as amended or replaced
from time to time.
An Advisory Committee consisting of a Township Supervisor,
the Township Manager and two police officers selected Township Police
Association established for the purpose of discussing pension related
matters of concern to the Township and the members.
The current instrument, including all amendments hereto.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or a retirement income endowment policy
(or a combination of both), or any other form of insurance contract
or policy which shall be deemed appropriate with accordance with the
provisions of Act 205 and P.L. 1804, as amended, 53 P.S. § 767.
Ferguson Township and any successor which shall maintain
this Plan; and any predecessor which has maintained this Plan. The
Township is situated in Centre County in the Commonwealth of Pennsylvania.
The fund administered and established under the terms of
the Plan, which fund shall include all money, property, investments,
policies, and contracts standing in the name of the Plan.
The legal agreement entered into between the Township and
any fiduciary that shall provide specifically for all objectives,
powers, and responsibilities concerning the management of the trust's
assets. If there is no trustee appointed, the Township Board of Supervisors
shall be trustees.
[Ord. 892, 10/15/2007, § 1]
1.
Authority and Duties of the Administrator. The Administrator shall
have full power and authority to do whatever, in its judgment, shall
be reasonably necessary to effectuate the proper administration and
operation of the Plan. The interpretation or construction placed upon
any term or provision of the Plan by the Administrator, or any action
of the Administrator taken in good faith, shall be final and conclusive
upon all parties hereto. The authority of the Administrator shall
include, but shall not be limited to:
A.
Construction of the Plan.
B.
Determination of all questions affecting the eligibility of any employee
of the Township to participate herein.
C.
Computation of the amount and the source of any benefit payable hereunder
to any participant or beneficiary, as applicable.
D.
Authorization of any and all disbursements of benefits.
E.
Prescription of any procedure to be followed by any participant or
other person, as applicable, in filing any application or election
hereunder.
F.
Preparation and distribution of information explaining the Plan as
may be required by law or as the Administrator deems appropriate.
G.
Requisition of information necessary from the Township or any participant
for the proper administration of the Plan.
H.
Appointment and retention of any individual to assist in the administration
of the Plan, including such legal, clerical, accounting, and actuarial
services as it deems advisable or may be required by any applicable
laws or law.
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The Administrator shall have no authority to add to, subtract
from, or modify the terms of the Plan or to 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 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.
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2.
Hold Harmless. To the full extent permitted by law, no member of
the Committee, the Board, the Chief Administrative Officer, the Administrator,
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 Township shall, and hereby does agree to, indemnify and
hold harmless the Administrator and each successor and each individual's
heirs, executors and administrators, and the Administrator's delegates
and appointees (other than any person or entity independent of the
Township who 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/she is or may be made
a party by reason of being or having been the Administrator or a delegate
or appointee of the Administrator, except in matters involving criminal
liability, or intentional or willful misconduct. If the Township purchases
insurance to cover claims of a nature described above, then no right
of indemnification shall exist 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.
3.
Appeal Procedure. Any person whose application for benefits is denied,
who questions the amount or timing of any benefit paid, or who has
some other claim arising under the Plan (the "claimant"), shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
A.
The claimant shall first file a notice of claim with the Administrator
which notice shall fully describe the nature of the claim. The Administrator
shall review the claim and make an initial determination approving
or denying the claim and shall mail notice of the determination within
90 days (or such other period as may be established by applicable
law) from the time the application is received. Such ninety-day period
may be extended by the Administrator, if special circumstances so
require, for up to 90 additional days by the Administrator's delivering
notice of such extension to the claimant within the first ninety-day
period. Any notice hereunder shall, if it is a notice of denial, set
forth:
B.
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 written notice
to the Board within 60 days of mailing of the 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, and shall contain
specific references to the pertinent Plan provisions on which the
decision is based.
C.
Any notice of claim questioning the amount of a benefit in pay status
shall be filed by the claimant with the Administrator within 90 days
following the date of the first payment which would be adjusted if
the claim is granted, unless the Administrator allows a later filing
for good cause shown.
D.
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.
[Ord. 892, 10/15/2007, § 1]
1.
Actuarial Valuations. The actuary to the Plan shall perform an actuarial
valuation at least biennially (unless the Township is applying or
has applied for supplemental state assistance pursuant to Act 205,
for purposes of this section, whereupon actuarial valuation reports
must be made annually.) Each 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 Act 205. The expenses attributable to the preparation
of any actuarial valuation report or investigation required by Act
205 or any other expense which is permissible under the terms of Act
205 and which are directly associated with administering the Plan
shall be an allowable administrative expense payable from the assets
of the trust. Such allowable expenses shall include, but shall not
be limited to, the following:
A.
Investment costs associated with obtaining authorized investments
and investment management fees.
B.
Accounting expenses.
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 officials of the Plan.
|
The Board, in its 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 Administrator
shall document all such expenses item by item, and where necessary,
hour by hour.
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2.
Duties of the Chief Administrative Officer. The actuarial reports
described above 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 Plan
on the basis of the most recent actuarial report and shall determine
the minimum obligation of the Township with respect to funding the
Plan for a given plan year. The Chief Administrative Officer shall
submit the financial requirements of the Plan and the minimum obligation
of the Township to the Board annually and shall certify the accuracy
of such calculations and their conformance with Act 205.
3.
Modification of Benefits. Prior to the adoption of any provision
that modifies a benefit provided hereunder, the Chief Administrative
Officer shall provide to the Board a cost estimate of the proposed
modification. Such estimate shall be prepared by an approved actuary,
which estimate shall disclose to the Board the impact of the proposed
modification on the future financial requirements of the Plan and
the future minimum obligation of the Township with respect to the
Plan.
4.
Utilization of State Aid. Payments of general municipal state aid,
or any other amount of state aid received pursuant to Act 205 from
the Commonwealth of Pennsylvania which are received by the Township
and deposited into the Fund shall be used as follows:
6.
Township Contributions. Subject to any bargained for limitations
or conditions such as increased member contributions or reduction
of benefits, the remainder of the annual contributions required under
provisions of Act 205, as determined by the Actuary to the Plan in
accordance with Act 205, shall become the obligation of the Township
and shall be paid into the Fund by annual appropriations.
[Ord. 892, 10/15/2007, § 1; as amended by Ord.
976, 2/19/2013, § 2]
1.
Explanation. In recognition of the fact that the Plan must comply
in form, content, and operation with certain provisions of the code,
and in spite of the limited applicability of such provisions to the
normal operation of the Plan, the following subsections of this section
detail the limitations and parameters applicable to maintaining favorable
tax treatment of funds contributed to the Plan under federal law.
This section will apply to all participants, former participants,
members and others receiving benefits under this Plan including those
who terminated employment with the Township and/or began receiving
benefits prior to January 1, 2001, except where this section specifically
provides to the contrary.
2.
LEASED EMPLOYEE
LIMITATION YEAR
Definitions. The following definitions apply for purposes of this
section only:
Effective as of January 1, 1997, any person (other than an
employee of the recipient) who pursuant to an agreement between the
recipient and any other person ("leasing organization") has performed
services for the recipient [or for the recipient and related persons
determined in accordance with Code § 414(n)(6)] on a substantially
full-time basis for a period of at least one year, and such services
are performed under primary direction or control by the recipient.
The plan year.
3.
Leased Employees and Independent Contractors. Leased employees and
independent contractors are not eligible to participate in this Plan.
Any person whom the Council does not regard as being an employee shall
not be eligible to participate.
4.
Limit on Compensation. Compensation is subject to the limitation
under Code § 401(a)(17), which is $220,000 for the plan
year beginning in 2006. The limit is automatically adjusted periodically,
without formal amendment, for changes in the law and cost-of-living
adjustments under Code § 401(a)(17).
5.
Maximum Annual Benefit.
A.
General Rule. Except as otherwise provided, this Plan shall at all
times comply with the provisions of Code § 415 and the regulations
thereunder, the terms of which are specifically incorporated herein
by reference. If a benefit payable to a participant under this Plan
would otherwise exceed the limit under Code § 415, the benefit
will be reduced to the maximum permissible benefit.
B.
Effective Date. If there is more than one permissible effective date
for any required change in the Code § 415(b) provisions,
then the change shall be effective as of the latest permissible effective
date; however, any adjustment in the dollar limit under Code § 415(b)(1)(A),
whether required or permissible, shall take effect automatically as
of the earliest permissible effective date. The "applicable mortality
table" in Rev. Rul. 2001-62 effective from December 31, 2002, through
December 31, 2007. Effective as of January 1, 2008, the "applicable
mortality table" and "applicable interest rate" are found in Rev.
Rul. 2007-67.
C.
No Reduction in Accrued Benefits. Notwithstanding the above, no change
in the limits under this section shall reduce the benefit of any participant.
D.
Multiple Plans. If a participant also participates in one or more
other plans that are required to be aggregated with this Plan for
purposes of determining the limits under Code § 415(b) or
(e), and if the aggregated benefits would otherwise exceed the limit
under Code § 415(b) or (e), then benefits shall be reduced
first under this Plan. (Historical Note: Code § 415(e) applied
for limitation years beginning prior to 2000.)
E.
Mandatory Contributions. Participant contributions are annual additions,
and any benefit attributable to participant contributions is not included
in the benefit subject to the limits of Code § 415(b) or
(e). This paragraph does not apply to contributions "picked-up" in
accordance with Code § 414(h).
F.
Permissive Service Credit. Effective as of January 1, 1998, if a
participant makes a purchase of permissive service credit [within
the meaning of Code § 415(n)] under the Plan, the benefit
derived from the contributions made to purchase the service credit
shall be treated as part of the benefit subject to the limitations
under this subsection.
6.
Limit on Annual Additions.
A.
Annual Additions. Except as otherwise provided, annual additions
(which include participant contributions) under this Plan shall at
all times comply with the provisions of Code § 415(c) and
the regulations thereunder, the terms of which are specifically incorporated
herein by reference. If an annual addition would otherwise exceed
the limit under Code § 415(c), the excess annual addition
will be eliminated in accordance with methods permitted under Rev.
Proc. 2008-50 (Rev. Proc. 2006-27 prior to 2009) or its successor.
B.
Multiple Plans. If a participant also participates in one or more
other plans that are required to be aggregated with this Plan for
purposes of determining the limits under Code § 415(c),
and if the annual additions would otherwise exceed the limit under
Code § 415(c), annual additions will first be reduced under
the other plan. If there is more than one other plan, annual additions
will first be reduced under the Plan with the greatest amount of annual
additions.
C.
Effective Date. The limits under which Code § 415(c) are
adjusted periodically in accordance with changes in the law or cost
of living adjustments without the need for a plan amendment. If there
is more than one permissible effective date for any required change
relating to Code § 415(c), then the change shall be effective
as of the earliest permissible effective date.
D.
415(c) Compensation. For the purposes of this paragraph, "compensation"
includes only those items specified in Treas. Reg. § 1.415(c)-2(b)1
or (2) and excludes all items listed in Treas. Reg. § 1.415(c)-2(c),
the terms of which are specifically incorporated herein by reference.
Compensation included in this definition does not fail to be "compensation"
[within the meaning of Code § 415(c)(3)] merely because
it is paid after the employee's severance from employment with the
Township, provided the compensation is paid by the later of 2.5 months
after severance from employment with the Township or the end of the
limitation year that includes the date of severance from employment
with the Township. Effective as of January 1, 2009, to the extent
required by the Heroes Earnings Assistance Tax Relief Tax Act of 2008
(HEART Act), differential wage payments shall be included in compensation.
7.
Direct Rollovers.
A.
This subsection applies to distributions made on or after January
1, 1993. Notwithstanding any provision of the Plan to the contrary
that would otherwise limit a distributee's election under this subsection,
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.
For purposes of this subsection, the following definitions shall
apply:
(1)
An eligible rollover distribution is any distribution of all
or any portion of the balance to the credit of the distributee, except
that an eligible rollover distribution does not include: (a) any distribution
that is one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy)
of the distributee or the joint lives (or joint life expectancies)
of the distributee and the distributee's designated beneficiary, or
for a specified period of 10 years or more; (b) any distribution to
the extent such distribution is required under Code § 401(a)(9);
(c) the portion of any distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities); and (d) effective
as of January 1, 2002, any hardship distribution. Effective as of
January 1, 2002, clause (c) does not apply to any after-tax participant
contributions that are paid to an individual retirement account or
annuity described in Code § 408(a) or (b), or to a qualified
defined contribution plan described in Code § 401(a) or
403(a) or effective as of January 1, 2007, any § 403(b)
annuity contract that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of
such distribution which is not so includible.
(2)
An eligible retirement plan is 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), or a qualified trust described in Code § 401(a),
that accepts the distributee's eligible rollover distribution. However,
in the case of an eligible rollover distribution to the surviving
spouse, prior to January 1, 2002, an eligible retirement plan was
an individual retirement account or individual retirement annuity.
Effective as of January 1, 2002, an "eligible retirement plan" includes
an annuity contract described in Code § 403(b) and an eligible
plan under Code § 457(b) which is maintained by a state,
political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state and which agrees to
separately account for amounts transferred into such plan from this
plan. Effective January 1, 2008, a Roth IRA is an "eligible retirement
plan."
(3)
A distributee includes an employee or former employee. In addition,
the employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
§ 414(p), are distributees with regard to the interest of
the spouse or former spouse.
(4)
A direct rollover is a payment by the Plan to the eligible retirement
plan specified by the distributee.
C.
Non-spouse Beneficiaries. Effective as of January 1, 2007, if a beneficiary
who is not a surviving spouse is entitled to receive what would otherwise
be an "eligible rollover distribution," the beneficiary may, in accordance
with Code § 402(c)(11), make a trustee-to-trustee transfer
of that amount to an IRA or individual retirement annuity (other than
an endowment contract); provided, that:
8.
Minimum Required Distributions.
A.
Notwithstanding any provision in this Plan to the contrary, the distribution
of a participant's benefits shall be made in accordance with the requirements
and conditions of and shall otherwise comply with Code § 401(a)(9).
For purposes of complying with Code § 401(a)(9), life expectancies
shall be determined in accordance with the 1987 proposed regulations
prior to January 1, 2003 and with the final regulations (§§ 1.401(a)(9)-1
through 1.401(a)(9)-9) on or after January 1, 2003.
B.
Effective as of January 1, 1997, distribution of a participant's
benefits shall begin not later than April 1 of the calendar year following
the later of:
C.
Distributions to a participant and his/her beneficiaries shall only
be made in accordance with the incidental death benefit requirements
of Code § 401(a)(9)(G) and the regulations thereunder.
D.
This subsection does not authorize the payment of any benefit in
any form not permitted under another provision of the Plan.
9.
Approved Domestic Relations Orders. Upon approval by the Plan Administrator
of a domestic relations order as an "approved domestic relations order"
all rights and benefits provided to a participant under this Plan
shall be subject to an "approved domestic relations order" to the
extent provided by the laws of the Commonwealth of Pennsylvania. In
no event shall a domestic relations order be approved which expands
the rights and benefits otherwise available to the participant under
this Plan.
10.
Credit for Qualified Military Service. Effective as of December 12,
1994, notwithstanding any provision of this Plan to the contrary,
contributions, benefits and service credit with respect to qualified
military service will be provided in accordance Code § 414(u).
11.
Vesting upon Plan Termination. Upon the termination of this Plan,
or complete discontinuance of contributions [within the meaning of
pre-ERISA Code § 401(a)(7)] to this Plan, each employee
as of the date of such termination or discontinuance shall become
vested to the extent that the Plan is funded.
12.
Consent for Lump-Sum Distributions. Effective January 1, 2006, notwithstanding
any other provision of the Plan, any distribution to a participant
made prior to the earlier of age 62 or normal retirement age of an
amount in excess of $1,000 that is an eligible rollover distribution
as set forth in the Plan and the code shall be made only upon consent
of the participant.
13.
Heroes Earnings Assistance Tax Relief Act of 2008 (HEART Act). Effective
for deaths occurring while performing qualified military service [as
defined in Code § 414(u)] on or after January 1, 2007, the
Plan will provide retirement benefits and service credit to the extent
that the Plan is required and mandated by the Heart Act to provide
said benefits and/or service credit.
[Ord. 892, 10/15/2007, § 1]
1.
Amendment. The Board may amend this Plan at any time or from time
to time by ordinance or resolution, provided that:
A.
No amendment shall deprive any member or beneficiary, as applicable,
of any of the benefits to which he/she is entitled under this Plan
pursuant to state law.
B.
No amendment shall provide for the use of funds or assets held under
this Plan other than for the benefit of eligible employees or alternate
payees, and no funds contributed to the Plan or assets of the Plan
shall, except as provided below, ever revert to or be used or enjoyed
by the Township except as set forth below.
C.
No amendment to the Plan which provides for a modification of one
or more benefits shall be made unless an estimate of cost has been
prepared and presented to the Board.
2.
Termination of the Plan. It is the present intention of the employer
to maintain this Plan indefinitely. Nevertheless, the Board 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 Township.
3.
Automatic Termination of Contributions. Subject to the provisions
of Act 205 governing financially distressed municipalities, the liability
of the Township to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the Township, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
4.
Distribution upon Termination. All 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 Township
which effects such termination.
5.
Residual Assets. If all liabilities to vested members 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 Township insofar
as such return does not contravene any provision of law, and any remaining
balance, in excess of employer contributions and related earnings,
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 Township 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 members in the Plan, their beneficiaries
or their estates.
[Ord. 892, 10/15/2007, § 1]
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 of Pennsylvania
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 Township, to pay the expenses of administering
the Plan pursuant to authorization by the Township. The Township 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 Township 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 Township
under the Plan, including contributions made pursuant to the provisions
hereof and the investments, reinvestment 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 Township has exclusive authority and discretion to manage
and control the pension fund assets. The Township may, however, appoint
a trustee, custodian and/or investment manager, at its sole discretion.
2.
Powers and Duties of the Township. With respect to the pension fund,
the Township 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), and shall include the right to hold
funds on a temporary basis in accounts or investments that do not
bear interest.
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 permitted 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 property 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 Township 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 Township 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 Township, 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 or to invest
in a group contract or other funding arrangement. 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 Township, such trustee shall make such distribution only at
the direction of the Township.
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 Township 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 Township, taking into account the interests
of the members 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 nor 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 Township appoints a
trustee, the trustee shall not be permitted to retain such an investment
manager except with the express written consent of the Township.
3.
Common Investments. The Township shall not be required to make separate
investments for individual members or to maintain separate investments
for each member'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 Township and the trustee,
unless such compensation is prohibited by law. Such compensation,
and all expenses reasonably incurred by the trustee in carrying out
his/her functions, shall constitute a charge upon the Township or
the pension fund, which may be executed at any time after 30 days'
written notice to the Township. The Township 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 reimburse
themselves 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 Township,
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 Township or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the members, spouses, children, survivors and beneficiaries
and their estates. In making any such determination, the Township
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. 892, 10/15/2007, § 1]
1.
Plan Not a Contract of Employment. No employee of the Township, nor
anyone else, shall have any rights whatsoever against the Township
or the Administrator as a result of this Plan, except those rights
expressly granted to them hereunder. Nothing herein shall be construed
to give any employee the right to remain an employee of the Township.
2.
Gender and Number. For purposes of the Plan and wherever plainly
necessitated by the person or context, the masculine shall be read
for the feminine, and the singular shall be read for the plural.
3.
Expenses. To the extent permitted by state law, all expenses related
to the operation and administration of the fund and Plan shall be
paid from the assets of the fund.
4.
Construction. The validity of the Plan or any of its provisions shall
be determined and construed pursuant to the laws of the Commonwealth
of Pennsylvania, the federal government, and the agencies thereof.
5.
Severability of Provisions. In the event that any provision, section,
subsection, paragraph, sentence, clause, or other part of the Plan
shall be held to be invalid, such invalidity shall not affect or impair
any remaining provisions, sections, subsections, paragraphs, sentences,
clauses, or other parts of the Plan.
6.
Headings. The headings and subheadings employed within the current
document have been inserted for convenience of reference and are to
be ignored in the construction of the provisions hereof.
7.
Incapacity of Member. If any member shall be physically or mentally
incapable of receiving or acknowledging receipt of any payment of
benefits hereunder, the Administrator, upon the receipt of satisfactory
evidence that such member is incapacitated to the aforesaid extent
and that another person or institution maintains him/her, may provide
for such payment of benefits hereunder to such person or the institution
maintaining him/her, and any such payments so made shall be deemed
for every purpose to have been made to such member.
8.
Protective Clause Relative to Administration. Subject to the provisions
of all laws applicable hereto, and unless otherwise specifically required,
no past, present, or future officer of the Township shall be personally
liable to any participant, beneficiary, or other person under any
provision of the Plan.
9.
Sole Benefit. The income and principal of the Plan are for the sole
use and benefit of the members covered hereunder and, to the extent
permitted by law, shall be free, clear and not in any way liable for
debts, contracts or agreements and from all claims and liabilities
now or hereafter incurred by any member, beneficiary, or alternate
payee.
10.
Benefits Payable from Other Plans. The pension or retirement benefits
payable hereunder for any month shall be reduced by any pension benefits
from pension plans heretofore established by a private organization
or association for the members, but only to the extent that the commonwealth
or the Township shall have contributed to such pension plan monies
raised by taxation. If the commonwealth or the Township shall have
contributed monies raised by taxation to a pension plan established
by a private organization or association for the members, the pension
benefits shall be used to reduce or offset pension or retirement benefits
paid hereunder only by that proportion of the total pensions payable
by virtue of the assets attributable to contributions of monies raised
by taxation bears to total assets of said pension plan.
11.
Reversion of Contributions. If a contribution is made by the Township
by mistake of fact, the contribution may be returned to the Township
within one year after the payment of the contribution.
12.
Spendthrift and Assignment. The pension payments herein provided for shall not be subject to attachment, execution, levy, garnishment or other legal process, and shall be payable only to the member, his/her survivors or his/her designated beneficiary, or alternate payee and shall not be subject to assignment or transfer except as provided in Subsection 10 hereof.
13.
Headings. Any headings or subheadings in this Plan are inserted for
convenience of reference only and are to be ignored in the construction
of any provisions hereunder.
[Added by Ord. 1025, 12/5/2016]
1.
A participant with 20 or more years of service who terminates employment
prior to reaching normal retirement date and who files written application
for an early retirement benefit with the Plan Administrator is eligible
for the early retirement benefit. The early retirement benefit shall
become effective as of the date the application is filed with the
Plan Administrator or the date designated on the application, whichever
is later, and shall be the actuarial equivalent of a partial superannuation
retirement benefit calculated as follows:
A.
A partial superannuation retirement benefit shall be determined by
applying the percentage that the member's years of service bear to
the years of service that the member would have rendered had the member
continued to be employed until his/her superannuation retirement date
to the gross pension amount calculated using the gross pension amount
calculated using the monthly average during the appropriate period
prior to his/her termination of employment.
B.
The actuarial equivalent of the partial superannuation retirement
benefit shall be determined by actuarially reducing the partial superannuation
retirement benefit to reflect that it will commence on the effective
date of the early retirement rather than on the date on which the
member would have completed superannuation age and service requirements.
The actuarial reduction shall be calculated using the actuarial assumptions
reported in the last actuarial valuation report filed with the Public
Employee Retirement Commission under the Act of December 18, 1984
(P.L. 1005, No. 205), known as the "Municipal Pension Plan Funding
Standard and Recovery Act."[2]
[2]
Editor's Note: See 53 P.S. § 895.101 et seq.
[1]
Editor's Note: This section is effective for employment terminations
on or after 1-1-2017.
