[Ord. 817, 6/5/2002,
§ 1]
1.
Borough Council 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 regulations shall be contrary to the
statutes of the Commonwealth of Pennsylvania and/or applicable federal
regulations.
2.
The Council may appoint a Committee which shall act as an advisory
body to the Council in the administration of the plan according to
the regulations established pursuant to this section.
3.
The Committee shall consist of seven members, which number shall
include the Council President, a Council member, the Borough Secretary/Treasurer
and four plan participants. All persons so designated shall serve
at the pleasure of the Council. Any member may resign upon written
notice to the Council and the Committee. Any vacancies in the Committee
arising from resignation, death or removal shall be filled by the
Council by the procedure set out herein for the member of the Committee
whose resignation, death or removal has created the vacancy. The Committee
shall meet no less than annually and shall serve without compensation
for their services.
4.
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 executions of documents, adoptions of bylaws and regulations,
and appointments shall be approved by Council.
5.
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 Council.
6.
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 Council and all may be paid from the plan, provided
that no such payment shall be contrary to the statutes of the Commonwealth
of Pennsylvania.
7.
No member of the Council or the Committee established pursuant to
this section shall incur any liability for any action or failure to
act, excepting only liability for its own gross negligence or willful
misconduct. The employer shall indemnify each member of Council and
the Committee against any and all claims, loss, damages, expenses
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.
[Ord. 817, 6/5/2002,
§ 2]
1.
This plan shall cover all full-time nonuniformed Borough employees,
hereinafter referred to as "member," of the Borough. Membership for
elected officials and new employees hired on a temporary, part-time
or seasonal basis is prohibited as is membership for individuals paid
only on a fee basis. Individual membership shall be effective as of
the date of this Part or upon the date of hire of the individual,
whichever is more recent.
A.
Credited service shall accrue from the original member's date of
hire as long as there is continuous uninterrupted employment to the
Borough.
B.
No credited service time shall be granted for time employed in a
status other than active employee of the Borough excluding credit
for purchased military service or reinstatement of previous service.
[Ord. 817, 6/5/2002,
§ 3; as amended by Ord. 855, 11/16/2005; by Ord. 961, 12/19/2012; and by Ord. No. 1079, 6/18/2019]
1.
Any member hired prior to January 1, 2018: Eligibility for superannuation
retirement shall occur upon the member's attainment of 60 years of
age or older and the completion of at least 10 years of credited service.
2.
Any member hired after December 31, 2017: Eligibility for superannuation
retirement shall occur upon the member's attainment of 65 years of
age or older and the completion of at least 10 years of credited service.
[Ord. 817, 6/5/2002,
§ 4; as amended by Ord. 961, 12/19/2012; and by Ord. No. 1079, 6/18/2019]
1.
Any member hired prior to January 1, 2018: The basic annual benefit
shall be equal to 5% of the member's final salary multiplied by all
years of credited service; provided, however, in no event shall the
basic benefit exceed 50% of the member's final salary.
2.
Any member hired after December 31, 2017: The basic annual benefit
shall be equal to 2% of the member's final salary multiplied by all
years of credited service; provided, however, in no event shall the
basic benefit exceed 50% of the member's final salary.
[Ord. 817, 6/5/2002,
§ 5]
The final salary shall be the average annual compensation earned
and paid during the member's highest five consecutive years of employment,
or if not so long employed, then the average annual compensation earned
and paid during the whole period of such employment. Final salary
shall not include lump-sum payments for unused sick, vacation, personal
or other leave.
[Ord. 817, 6/5/2002,
§ 6; as amended by Ord. 855, 11/16/2005; by Ord. 961, 12/19/2012; and by Ord. No. 1079, 6/18/2019]
1.
Any member hired prior to January 1, 2018, who has separated from
employment after 20 years of credited service may retire early. Benefits
will be actuarially reduced for each year or partial year thereof
that early retirement takes place prior to age 60.
2.
Any member hired after December 31, 2017, who has separated from
employment after 20 years of credited service may retire early. Benefits
will be actuarially reduced for each year or partial year thereof
that early retirement takes place prior to age 65.
[Ord. 817, 6/5/2002,
§ 7]
1.
Should a member die who has either:
A.
Met the requirements for a superannuation retirement found in § 1-503 of this Part but has not yet retired; or
C.
Actually elected to vest a benefit but has failed to attain superannuation
retirement age, then the death benefit shall be paid to the member's
named beneficiary. The death benefit shall be a payment equal to the
present value of the accrued benefit as of the date of the member's
death.
2.
A member who is entitled to a superannuation retirement allowance because of meeting the requirements found in § 1-503, or a member who is eligible to vest or who has vested in accordance with § 1-510 of this Part may file a written application for a retirement benefit, selecting a retirement option and requesting that such election become effective upon the death of the member. The application must be filed with the Borough.
3.
If no application for retirement was prefiled by a member who dies and who was eligible for the death benefit found in this section, it shall be considered that the member elected Option 1 as provided in § 1-511 of this Part. In such event the payment under Option 1 shall be made to the beneficiary designated in the nomination of beneficiary form on file with the Borough or in the absence of such a form, the estate of the member.
[Ord. 817, 6/5/2002,
§ 8]
1.
Any member employed by the Borough who enters the uniformed services
as defined by the 1994 Uniformed Services Employment and Reemployment
Rights Act (P.L. 103-353) and returns to the Borough to again be a
member of the plan within the authorized time period of the law, shall
have the authorized time spent in such service credited to the member's
employment record for pension or retirement benefits if the individual
makes the required employee contributions.
2.
An active member may also purchase credit for other than intervening
military service performed for the United States in times of war,
armed conflict or national emergency, so proclaimed by the President
of the United States, for a period not to exceed five years, provided
the member has completed five years of service to the Borough subsequent
to such military service. An active member may file an application
with the Borough for permission to purchase credit for nonintervening
military service upon completion of five years of subsequent service
to the Borough.
3.
The amount due from the member shall be certified by the Borough
in accordance with methods approved by the actuary. It shall be paid
in a lump sum within 30 days of the date the amount is determined.
4.
The rate of interest to be charged to a member on purchase of credit
for nonintervening military service shall be the rate being credited
by the plan to members' accounts in effect on the date of the member's
application, compounded annually, which as of the date of this Part
is 6.5%. This rate may be amended in the future by resolution.
5.
A member may purchase credit for intervening or nonintervening military
service only if discharge or separation from the service was granted
under other than dishonorable conditions. A member may not purchase
military credit for any service that is covered by another retirement
system administered and wholly or partially paid for by any other
government agency or private employer.
[Ord. 817, 6/5/2002,
§ 9; as amended by Ord. 938, 1/3/2011]
1.
Members shall contribute 5% of their total compensation. If sufficient
funds exist, the Borough may annually elect to waive or lower the
required member contribution rate by adopting a resolution. Payment
shall be made by payroll deductions and transmitted to the fund in
accordance with established fund procedures. Member contributions
will be treated as taxed at the time they are made to the fund, will
be tracked separately, and will not be treated as taxable when paid
out to the member.
2.
If a member terminates prior to becoming eligible for any benefit
or the member elects not to receive a benefit, that individual shall
be entitled to all accumulated contributions and interest allocated
to the member's account.
[Ord. 817, 6/5/2002,
§ 10]
After five years of credited service, a member shall be 50% vested. For each complete year of service thereafter, the member's vested benefit shall increase by 10% until, after 10 years of credited service, the member shall be 100% vested in the benefit. A member shall file an application with the Borough within 90 days of separation from employment. Upon attainment of the superannuation age requirement found in § 1-503 of this Part, a basic benefit will be calculated in accordance with § 1-504 of this Part.
[Ord. 817, 6/5/2002,
§ 11]
1.
At the time a member elects to receive a retirement benefit allowance,
the benefit may be payable throughout the member's life, in which
case, the benefit is known as a single life annuity. The member may
alternatively elect at the time of retirement to receive the equivalent
actuarial value in a lesser allowance, payable throughout life with
provisions that:
A.
Option 1. If the member dies before receiving in payments the present
value of the retirement allowance as it was at the time of retirement,
the balance, if less than $5,000, shall be paid in a lump sum to the
designated beneficiary if living, or if the named beneficiary predeceased
the member or if no beneficiary was named, then to the member's estate.
If the balance is $5,000 or more, the beneficiary shall be paid an
annuity having a present value equal to the balance payable to the
member.
B.
Option 2. Upon the annuitant's death, the retirement allowance shall
be continued throughout the life of and paid to the survivor annuitant,
if then living.
C.
Option 3. Upon the annuitant's death, 1/2 of the retirement allowance
shall be continued throughout the life of and paid to the survivor
annuitant, if then living.
D.
Option 4. A member may elect to receive, in one payment at the time
of retirement, the full amount of the member's accumulated deductions
standing to the member's credit in the member's account. In so electing
this option, the member forfeits the portion of the annuity paid for
from the accumulated contributions, but shall continue to be entitled
to an annuity comprised of the Borough contribution and any investment
monies so credited to the account. Any member electing this option
shall be entitled to receive his remaining annuity calculated in accordance
with any of the other options provided for in this section.
2.
Should a member who has elected a single life annuity die before
receiving in annuity payments the full amount of the total accumulated
deductions standing to their credit in the member account on the effective
date of retirement, the balance shall be paid to the designated beneficiary.
[Ord. 817, 6/5/2002,
§ 12]
There shall be no offset for social security retirement benefits
received by a member.
[Ord. 855, 11/16/2005]
Cost-of-living increases may be provided for members of the
plan receiving retirement benefits as authorized by the Borough Council
of the Borough of Stroudsburg at a duly called public meeting. Any
such cost of living increase shall not exceed the percentage increase
in the Consumer Price Index (U.S. City Average for All Urban Consumers).
In no case shall the total municipal employee pension benefits exceed
75% of the salary for computing retirement benefits. The total cost
of living increase shall not exceed 30%. No cost of living increase
shall be granted which would impair the actuarial soundness of the
Pension Fund.
[Ord. 817, 6/5/2002,
§ 13; as amended by Ord. 855, 11/16/2005]
1.
The Borough will actuarially determine the normal cost of the plan
and any liability associated with the plan's actuarial experience
which shall be contributed annually by the Borough for the service
credits of the members.
2.
The amounts so determined shall be computed in accordance with the
requirements of Act 205 of 1984, the Municipal Pension Plan Fund Standard
and Recovery Act, the Borough Code and subsequent amendments to either
Act.
[Ord. 817, 6/5/2002,
§ 14; as amended by Ord. 855, 11/16/2005]
1.
Matters or procedure not covered in this Part shall be as set forth
in the Borough Code and as found in Act 205 of 1984, as they shall,
from time to time, be amended.
2.
Should any change or mistake in records result in any member, beneficiary
or survivor annuitant receiving from the plan more or less than the
individual would have been entitled to receive had the records been
correct, then regardless of the intentional or unintentional nature
of the error and upon the discovery of such error, the Borough will
correct the error and so far as practicable adjust the payments which
may be made for and to such person in such a manner that the actuarial
equivalent of the benefit to which the individual was correctly entitled
shall be paid.
[Added by Ord. 894, 11/20/2008; as amended by Ord. 961, 12/19/2012]
