[Ord. 774, 12/13/2011, Art. I]
The following words and phrases as used herein shall have the
meanings set forth in this section, unless a different meaning is
plainly required by the context:
As of any given computation date, a participant's projected monthly normal retirement benefit determined in accordance with § 1-514, Subsection 2, multiplied by a fraction, the numerator of which shall be an amount equal to the participant's years of service as of the computation date and the denominator of which shall be an amount equal to the total possible number of the participant's years of service beginning on the first date of employment and ending on the normal retirement date (including periods of time when no employee contributions are paid); however, in no event shall the fraction exceed one.
In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 1-514, Subsection 10. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof.
The total amount of employee contributions contributed by a participant to this plan or its predecessor by way of payroll deduction or otherwise, plus interest credited at the rate of 5% per annum. Interest shall be credited annually in the form of a compound interest rate from the first day of the plan year coincident with or next following the date of deposit into the pension fund until the first day of the month in which a distribution of accumulated contributions under § 1-517, Subsection 2, or 1-518, Subsection 2, shall be paid, or the payment of benefits shall commence. Notwithstanding anything contained herein to the contrary, no interest shall be credited for any period of time prior to February 1, 1976.
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the UP — 1984 Mortality Table and 7% interest unless
otherwise expressly provided herein.
The person, partnership, association or corporation which
at any given time is serving as actuary; provided, that such actuary
must be an "approved actuary" as defined in the Act.
As of any given computation date, a participant's monthly benefit determined in accordance with § 1-514, Subsection 3, which amount shall be based upon the participant's credited service determined as of such computation date and which shall represent the monthly benefit which would be payable in the normal form as of the participant's attainment of alternate retirement age, provided that the participant shall satisfy all requirements pursuant to the terms of the plan for entitlement to receive such benefit.
In no event, however, shall the alternate accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 1-514, Subsection 10. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof.
The date a participant who first became a participant on
or after January 1, 1995, attains 62 years of age and completes at
least 10 years of credited service.
January 1 of a given plan year.
Any leave of absence not to exceed two years granted in writing
by the employer for reasons including, but not limited to, accident,
sickness, pregnancy or temporary disability, education, training,
jury duty or such other reasons as may necessitate authorized leave
from active employment. Authorized leave of absence shall also include
a period of time for active service with the armed forces of the United
States of America provided that such service shall commence after
the participant has completed at least six months of credited service
and the participant shall return to employment within the applicable
time prescribed by law following separation from such military service.
The compensation earned by a participant for services rendered
as an employee in employment during the 36 consecutive months immediately
preceding retirement or other termination of employment, divided by
36; provided, however, that any month during which a participant has
been on an authorized leave of absence shall be excluded from such
36 consecutive months and another month shall be substituted, therefore,
such that the averaging period shall include the last 36 months of
active rendering of services.
The person or persons validly designated in writing by a
participant to receive such benefits as may be due hereunder upon
the death of the participant. A designation shall become effective
only upon the participant's death and shall be valid only if delivered
prior to such participant's death to the plan administrator in such
form as the plan administrator shall specify. In the event that there
is no validly designated beneficiary that survives the participant
or that is legally able to take the benefits provided as beneficiary
then the beneficiary shall be the surviving spouse, or if there is
no surviving spouse, the issue, per stirpes, or if there is no surviving
issue, the estate of the participant; but if no personal representative
has been appointed, to those persons who would be entitled to the
estate under the intestacy laws of the Commonwealth of Pennsylvania
if the participant had died intestate and a resident of Pennsylvania.
The person designated by the Council, who has the primary
responsibility for the execution of the administrative affairs for
the plan.
The Internal Revenue Code of 1986, as amended.
The Commonwealth of Pennsylvania.
The total remuneration paid to an employee by the employer,
whether salary or hourly wages, paid by the employer for services
rendered in employment and reported on the employee's Form W-2, wage
and tax statement. Compensation shall be limited on an annual basis
for the purposes of this plan to the amount specified for government
plans in accordance with Code § 401(a)(17), as adjusted
under Code § 415(d).
The Borough Council of the Borough of Beaver, Beaver County,
Pennsylvania.
A participant's total years and fractions thereof, calculated to the nearest completed month of service accumulated as an employee in employment. Credited service shall include each period of active employment and each period of time during which an employee is on an authorized leave of absence. Credited service shall not include any period of time during which an employee failed or refused to make required contributions pursuant to § 1-513, Subsection 1.
Notwithstanding the foregoing, in the case of service prior
to February 1, 1976, the participant shall be granted credited service
pursuant to the terms of the plan in existence prior to such date
and excluding any service in excess of 15 years prior to April 1,
1971.
Any participant who has completed at least 10 years of service, who has separated from employment prior to attainment of alternate. Early or normal retirement age for reasons other than death or total and permanent disability and who is eligible to receive a vested retirement benefit pursuant to § 1-517, Subsection 3, to commence at a later date.
The date when a participant is determined by the plan administrator
to be incapacitated due to total and permanent disability or the date
when the participant's employment terminates due to such total and
permanent disability, if later.
The date a participant attains 50 years of age and completes
at least 10 years of credited service.
Any person, hired on or after the adoption of the defined
contribution plan provisions, who is employed on a full-time basis
(at least 35 hours per week) by the Borough of Beaver (excluding any
uniformed employee).
[Amended by Ord. No. 821, 11/8/2016]
The Borough of Beaver, Beaver County, Pennsylvania.
Any period of time during which an employee renders services
for the employer for which the employee is directly or indirectly
compensated or entitled to receive compensation for the performance
of duties as an employee. Employment shall exclude any period of time
during which services are performed as an independent contractor paid
on a contractual or fee basis. Employment shall also include any period
of qualified military service as determined under the requirements
of Chapter 43 of Title 38, United States Code, provided that the participant
returns to employment following such period of qualified military
service, and the participant makes payment to the plan in an amount
equal to the participant contributions that would otherwise have been
paid to the plan during such period of qualified military service.
The amount of participant contributions shall be based upon an estimate
of the compensation that would have been paid to the participant during
such period of qualified military service as determined by the average
compensation paid to the participant during the 12 months immediately
preceding the period of qualified military service. The amount of
participant contributions so calculated must be paid into the plan
before the end of the period that begins on the date of reemployment
and ends on the earlier of the date that ends the period that has
a duration of three times the period of qualified military service,
or the date that is five years after the date of reemployment.
The date on which a participant attains 60 years of age.
The minimum obligation of the municipality as determined
by the actuary pursuant to the provisions of the Act.
The date a participant, who first became a participant herein
prior to January 1, 1995, attains 60 years of age or the date a participant,
who first becomes a participant herein on or after January 1, 1995,
attains 60 years of age and completes at least 20 years of credited
service.
The first day of the month coincident with or next following
the attainment of normal retirement age.
A written document prepared in the form specified by the
plan administrator. If such notice or election is to be provided by
the employer or the plan administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto, on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the plan administrator, it must be received by
the recipient on or before the last day of the specified notice or
election period.
Any employee who has commenced participation in this plan in accordance with § 1-512, and has not for any reason ceased to participate hereunder.
The assets of the plan, which shall be accounted for separately
from the assets of any other plans maintained by the employer, whether
actually held separately or commingled with the assets of another
plan, and which shall be administered under the supervision of the
employer in accordance with the terms of the plan and applicable law.
The Borough of Beaver Municipal Employees' Pension Plan as
herein set forth and as it may be amended from time to time hereafter.
The person or persons appointed by the Council for the purpose
of supervising and administering the plan. In the event no person
is so appointed, the plan administrator shall be the Council.
The consecutive twelve-month period beginning on January
1 and ending on December 31 of each year.
January 1, 2011, the effective date of this plan as hereby
amended and restated.
A condition of physical or mental impairment which renders
a participant unable to perform a duty of gainful employment for which
the participant is suited by training, education or experience, which
continues for at least six months and which is expected to last until
the death of the participant, and as a result of which qualifies the
participant for receipt of Federal Social Security disability benefits.
Total and permanent disability shall be determined by the plan administrator
based upon such evidence as the plan administrator shall deem appropriate
in its sole discretion.
For determining the amount of benefits, each completed twelve-month
period of credited service. Years of service shall mean for determining
vesting percentage and eligibility to receive a benefit hereunder,
the total period of employment including any period of time during
employment that is not included in the determination of credited service.
[Ord. 774, 12/13/2011, Art. II]
1.
Eligibility for Participation. Each employee who was a participant
in the plan on the day prior to the restatement date shall continue
to be a participant, on and after the restatement date, subject to
the terms and conditions of the plan as set forth herein. On or after
the restatement date, each other person shall become a participant
in the Money Purchase Pension Plan described in Appendix 1-5B-A,[1] as of the date on which such employee's employment commences
or recommences provided all prerequisites to participation in this
plan have been fulfilled, including but not limited to, completion
of all necessary forms authorizing payroll deduction of employee contributions
and any other forms required by the plan administrator.
[1]
Editor's Note: Appendix 1-5B-A was repealed 9/8/2015 by Ord.
810. See now Part 5F of this chapter.
2.
Participation Requirements. Each participant hereunder shall be required to make contributions to the plan, as provided in § 1-513, Subsection 1, hereof, and shall execute and complete any enrollment or application forms as required by the plan administrator authorizing payroll deduction of such contributions. No employee shall be eligible to participate hereunder until any and all such forms are completed and delivered to the plan administrator.
3.
Designation of Beneficiary. Each employee who becomes a participant
hereunder shall provide a written notice which designates the beneficiary
or beneficiaries to the plan administrator at the time participation
commences. 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 such election is not contrary to applicable law.
4.
Reemployment. Each person who shall have previously been an active participant in the plan and who shall have ceased being an active participant for any reason shall be eligible to participate pursuant to Subsection 1 hereof as of the date such eligibility requirements are met.
5.
Change in Status. In the event a participant who remains in the service of the employer ceases to be an employee eligible for participation hereunder, or who ceases or fails to make any contributions which are required as a condition of participation hereunder, no further benefit accruals shall occur until the participant again qualifies under such participation requirements. Such a requalified participant shall immediately commence the accrual of additional benefits hereunder upon becoming eligible to participate unless such person received a distribution of accumulated contributions, in which case the person shall be treated as a new employee in accord with Subsection 1 hereof and shall not receive any credit for prior credited service unless such person shall repay to the fund the amount of such distribution with interest credited at the same rate and in the same manner as described in § 1-511 from the date of distribution to the date of repayment.
6.
Leave of Absence. During any leave of absence that is not an authorized
leave of absence, a participant shall be deemed an inactive participant
and shall not be given credit for years of credited service, nor shall
any benefits accrue hereunder. If the employee is not re-employed
by the expiration of the leave of absence, participation in the plan
shall cease on the date on which the leave of absence commenced.
7.
Recordkeeping. The employer shall furnish the plan administrator
with such information as will aid the plan administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this plan initially and subsequently.
[Ord. 774, 12/13/2011, Art. III]
1.
Employee Contributions. As a condition of participation in the plan,
each participant shall contribute to the plan by payroll deduction
an amount equal to 3% of such participant's compensation. Each employee
must have executed the appropriate documents authorizing the employer
to deduct the contributions from the pay of the employee. Such contributions
shall be required until such time as the employer, consistent with
any provisions of applicable law, shall increase, reduce or eliminate
the requirement. A participant who is on an authorized leave of absence
shall have the obligation to contribute hereunder waived during the
period of such authorized leave of absence and a participant who shall
continue in employment after attainment of normal retirement age shall
no longer be required to contribute hereunder as of the date the participant
attains such normal retirement age.
2.
Employer Contributions. The actuary, in accordance with the Act,
shall determine the minimum municipal obligation of the employer.
The employer shall pay into the pension fund, by annual appropriation
or otherwise, the contributions necessary to satisfy the minimum municipal
obligation.
3.
State Aid. General municipal pension system state aid, or any other
amount of state aid received by the employer from the commonwealth
in accordance with the Act, may be deposited into the pension fund
governed by this plan and shall be used to reduce the amount of the
minimum municipal obligation of the employer.
4.
Gifts. To the extent permitted by law, the plan administrator may
accept gifts, outright or in trust, for deposit into the pension fund.
The application of such gifts shall be governed by the rules of the
plan and such directions prescribed by the donor as are not inconsistent
with the rules of the plan and applicable law.
5.
No Reversion to the Employer. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, except that contributions made by the employer may be returned to the employer if the contribution was made due to a mistake of fact and the contribution is returned within one year of the mistaken payment of the contribution, or the plan is terminated, as provided in § 1-521.
[Ord. 774, 12/13/2011, Art. IV]
1.
Normal Retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after attainment of normal
retirement age.
2.
Normal Retirement Benefit. A participant who retires upon attainment
of normal retirement age shall be entitled to receive a monthly retirement
benefit in an amount equal to 50% of the participant's average monthly
compensation paid in the normal form commencing on the first day of
the month coincident with or next following the date of retirement.
3.
Alternate Retirement Benefit. A participant who first became a participant
on or after January 1, 1995, who retires upon attainment of alternate
retirement age shall be entitled to receive a monthly retirement benefit
in an amount equal to 2.5% of the participant's average monthly compensation
multiplied by the participant's years of service not to exceed 20
years, paid in the normal form commencing on the first day of the
month coincident with or next following the date of retirement.
4.
Early Retirement. Each participant shall be entitled to an early
retirement benefit after retirement on or after attainment of early
retirement age.
5.
Early Retirement Benefit. Each participant who shall become entitled to a benefit pursuant to Subsection 4 but prior to attainment of alternate or normal retirement age, may retire from employment and receive either a benefit in an amount equal to the amount determined under Subsection 2 based upon final monthly average compensation and years of service as of the date of retirement to commence as of the participant's normal retirement date, or a benefit in an amount equal to the amount determined under Subsection 2 based upon final monthly average compensation and years of service as of the date of retirement and actuarially reduced for early commencement to commence as of the participant's early retirement date or any payment commencement date after retirement and prior to the participant's normal retirement date. Such reduction for early commencement shall be in an amount equal to a factor calculated herein for each month that the payment commencement date precedes the date the participant would attain normal retirement age. The applicable factors are as follows and will be prorated to the nearest month for a partial year (a partial month shall be treated as a completed month):
|
Number of Years Early Retirement Benefits Commence Prior
to Normal Retirement Age
| ||
|---|---|---|
|
Years
|
Factor
| |
|
1
|
0.9333
| |
|
2
|
0.8667
| |
|
3
|
0.8000
| |
|
4
|
0.7333
| |
|
5
|
0.6667
| |
|
6
|
0.6333
| |
|
7
|
0.6000
| |
|
8
|
0.5667
| |
|
9
|
0.5333
| |
|
10
|
0.5000
| |
6.
Incentive Retirement. A participant who retires upon attainment of incentive retirement age shall be entitled to receive a monthly benefit in an amount equal to 2.5% of the participant's average monthly compensation multiplied by the participant's years of service, not to exceed 25 years, paid in the normal form commencing on the first day of the month coincident with or next following the date of retirement. Such benefit shall be paid until such time as the participant become eligible for a Social Security early retirement benefit equal to 80% of a Social Security full age retirement benefit. (Such eligibility usually occurs 36 months before full retirement age). At that time the participant's monthly benefit will automatically reduce to a normal retirement benefit as prescribed in Subsection 2. In order to elect this incentive retirement benefit, a participant must apply therefor within 30 days of attaining incentive retirement age.
7.
Application for Benefit. A participant must complete and execute
an application for benefit on a form and in the manner prescribed
by the plan administrator and deliver the said application to the
plan administrator at least 30 days prior to the date on which benefit
payments are to commence. Notwithstanding anything contained herein
to the contrary, no retirement benefit payments or any other benefit
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 plan administrator receives the application for benefit.
8.
Nonduplication of Benefit. A participant who shall receive a monthly
retirement benefit under this plan and who shall resume employment
as an employee, shall have benefit payments suspended until the first
day of the month coincident with or next following the date such employment
shall cease. Such benefit payments shall not, upon resumption, be
adjusted to reflect any change in average monthly compensation caused
by such additional period of employment, even if rendered as an employee,
unless taking into account such additional period of employment will
not result in a decrease in such participant's average monthly compensation,
when determined as of such subsequent retirement, to an amount which
is less than the amount determined as of the previous severance from
service date, but shall be adjusted to reflect any additional years
of credited service which may have accrued. Such future benefits shall
be actuarially adjusted upon resumption of the pension payments.
9.
Small Amounts. If the plan administrator determines that the value
of a participant's accrued benefit is so small as to make monthly
pension payments administratively impractical, the plan administrator
may cause such payments to be made at such other periodic intervals
as are administratively practical, but no less frequently than annually,
or may make a single lump sum payment equal to the commuted value
of such accrued benefit to the extent permitted under applicable law.
10.
Cessation of Benefit Payments. Any pension benefit payable hereunder
shall be payable through and including the later of the month in which
such participant's death occurs or the month in which any period certain
payments due on or after the participant's death have been paid. Any
survivor annuity payable on or after the participant's death in accordance
with the form of pension benefit elected shall be paid through the
month in which such surviving annuitant's death occurs.
11.
Retired Participants. The benefit amount of any participant who may
have retired prior to the restatement date shall not be in any way
altered by the provisions of this plan, except where otherwise expressly
indicated herein, and shall continue to be determined on the basis
of the terms of the plan in effect on the day preceding the restatement
date.
|
For ease of administration, the following are restated herein
and specifically incorporated into this plan.
|
A.
On January 1, 1984, an additional amount of monthly retirement benefit
became payable to each participant who retired prior to January 1,
1984, in an amount equal to 60% of the monthly retirement benefit.
B.
On January 1, 1987, an additional amount of monthly retirement benefit
became payable to each participant who retired prior to January 1,
1987. For participants who retired prior to January 1, 1984, the additional
amount is equal to 50% of the monthly retirement benefit. For participants
who retired after December 31, 1983, and prior to January 1, 1987,
the additional amount is equal to 35% of the participant's monthly
compensation as of the date of retirement.
C.
On January 1, 2003, an additional amount of monthly retirement benefit
became payable to each participant who retired prior to January 1,
1993, in an amount equal to $10 for each year of retirement.
12.
Maximum Benefit Limitations. Notwithstanding any provision of this plan to the contrary, no benefit provided under this plan attributable to contributions of the employer shall exceed, as an annual amount, the amount specified in Code § 415(b)(1)(A) as adjusted pursuant to Code § 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this Subsection 12 shall be governed by the following conditions and definitions:
A.
Benefits paid or payable in a form other than a straight life annuity
(with no ancillary benefits) or where the employee contributes to
the plan or makes rollover contributions shall be adjusted on an actuarially
equivalent basis to determine the limitation contained herein.
B.
In the case of a benefit which commences prior to the attainment
of age 62 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis in accordance with applicable regulations
to the amount determined pursuant to this subsection commencing at
age 62; however, in the case of a qualified participant (a participant
with respect to whom a period of at least 15 years of service, as
a full-time employee of a police or fire department or as a member
of the Armed Forces of the United States is taken into account in
determining the amount of benefit), the limitation contained herein
shall not apply.
C.
In the case of a benefit which commences after attainment of age
65 by the participant, the limitation herein shall be adjusted on
an actuarially equivalent basis in accordance with applicable regulations
to the amount determined herein commencing at age 65.
D.
Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this subsection provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability retirement benefit pursuant to § 1-516, Subsection 2, with fewer than 10 years of participation the limitation expressed in this Subsection 12D shall be reduced by one-tenth for each year of participation less than 10 but in no event shall this limitation be less than $1,000.
E.
The limitations expressed herein shall be based upon plan years for
calculation purposes, shall be applied to all defined benefit plans
maintained by the employer as one defined benefit plan and to all
defined contribution plans maintained by the employer as one defined
contribution plan, and shall be applied and interpreted consistent
with Code § 415 and regulations thereunder as applicable
to government plans in general and this plan in particular.
G.
For mandatory employee contributions, the rules set forth in Treasury
Regulation 1.415(b) — 1(b)(2)(iii) shall apply.
H.
Effective for distributions with annuity starting dates beginning
on or after December 31, 2008, notwithstanding any other plan provisions
to the contrary, the applicable mortality table used solely for purposes
of adjusting any benefit or limitation under § 415(b)(2)(B),
(C), or (D) of the Internal Revenue Code as set forth in the applicable
maximum benefit limitations section of the plan is the applicable
mortality table under Code § 417(e)(3)(B).
13.
Incorporation of Code § 415 by Reference. Notwithstanding anything contained in Subsection 12 to the contrary, the limitations, adjustments, and other requirements prescribed in Subsection 12 shall at all times comply with the provisions of Code § 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated by reference. Effective for limitation years beginning on and after July 1, 2007, the plan shall comply with the final regulations issued under Code § 415.
[Ord. 774, 12/13/2011, Art. V]
1.
Normal Form of Benefit Payment. The normal form for payment of retirement
benefits shall be a monthly annuity for the life of the participant;
provided, however, that if the death of the retired participant occurs
after the payments commence but before the total amount of monthly
retirement benefit payments and any single sum or other prior distributions,
if applicable, exceed the accumulated contributions as of the date
of employment termination, the remainder of such amount shall be paid
in a single sum to the beneficiary designated by the participant.
2.
Optional Form of Benefit Payment. The automatic form of payment of retirement benefits shall be the normal form specified in Subsection 1 unless a participant elects to receive benefits in some other form as provided herein. A participant who retires under § 1-514, Subsection 1, 3, 4 or 6, may elect, by giving written notice to the employer at least 30 days prior to the date retirement benefit payments shall commence, to receive payment in one of the optional forms of payment, which shall be the actuarial equivalent of the normal form, set forth hereafter:
A.
Contingent Annuitant Option. In lieu of receiving a retirement benefit
under the normal form, a participant may elect the contingent annuitant
option which provides for payment of the monthly retirement benefit
to the participant until death and thereafter the continuation of
monthly benefit payments in an amount equal to 50%, 66 2/3%, or 100%
of the participants reduced benefit, whichever the participant shall
have chosen, to the previously designated contingent annuitant, if
living, until the death of the contingent annuitant.
|
If the contingent annuitant is the spouse of the retired participant,
the benefit payable under this option is payable without restriction,
otherwise the benefit payable hereunder shall be limited to the extent
that the present value of payments to be made to the participant until
death shall be more than 50% of the present value of the total payments
to be made to the participant and the contingent annuitant.
| |
|
If the death of the contingent annuitant occurs before the participant's
actual retirement date, any election of this option shall be deemed
null and void and the retirement benefit shall be payable in the normal
form, the same as if this option had not been elected. If the contingent
annuitant predeceases the retired participant after actual retirement,
retirement benefit payments shall terminate after the monthly payment
due immediately preceding the retired participant's death.
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B.
Life Annuity With Payments Guaranteed Option. In lieu of receiving
a retirement benefit under the normal form, a participant may elect
the life annuity with payments guaranteed option which provides for
payment of a monthly retirement benefit to the participant until death
with a guarantee that at least 60, 120 or 180 monthly retirement benefit
payments shall be paid, whichever the participant shall have chosen.
If the death of the participant occurs after the date that retirement
benefits payments shall commence but before the guaranteed number
of monthly payments have been made, the remainder of such guaranteed
monthly payments shall be paid as they become due to the beneficiary.
If the death of the participant occurs after the participant has received
at least the guaranteed number of payments there shall be no additional
payments due or payable hereunder.
C.
Life Annuity Option. In lieu of receiving a retirement benefit under
the normal form, a participant may elect the life annuity option which
provides for payment of a monthly retirement benefit to the participant
until death only, and upon the death of the participant there shall
be no additional payments due or payable hereunder.
3.
Employer Provided Retirement Benefit. Notwithstanding anything contained herein to the contrary, a participant, in lieu of receiving a retirement benefit pursuant to Subsections 1 and 2 hereof based upon the total value of employee and employer contributions to the plan, may choose to receive a single sum payment in an amount equal to the participant's accumulated contributions as of the date of termination of employment and a reduced retirement benefit pursuant to Subsections 1 and 2. The value of the retirement benefit shall be reduced by the portion of the value attributable to that which could have been provided by the value of the participant's accumulated contributions as of the date of termination of employment.
4.
Commencement of Benefits. A participant may elect to commence receiving
distribution of retirement benefits as of the first day of the month
coincident with or next following the date on which retirement occurs
with an eligibility to receive benefits, or may defer such payments
to a date not later than the required date for commencement of benefits
determined under this subsection. Unless the participant otherwise
elects, payment of benefits under the plan shall commence not later
than 60 days following the close of the plan year in which occurs
the latest of the following dates:
5.
Required Distributions.
A.
Notwithstanding any other provision of this plan, the entire benefit
of any participant who becomes entitled to benefits prior to death
shall be distributed either:
(1)
Not later than the required beginning date.
(2)
Over a period beginning not later than the required beginning
date and extending over the life of such participant or over the lives
of such participant and a designated beneficiary (or over a period
not extending beyond the life expectancy of such participant, or the
joint life expectancies of such participant and a designated beneficiary).
|
If a participant who is entitled to benefits under this plan
dies prior to the date when the entire interest has been distributed
after distribution of benefits has begun in accordance with Subsection
5B(2) above, the remaining portion of such benefit shall be distributed
at least as rapidly as under the method of distribution being used
under Subsection 5B(2) as of the date of death.
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B.
If a participant who is entitled to benefits under plan dies before
distribution of the benefit has begun, the entire interest of such
employee shall be distributed within five years of the death of such
employee, unless the following sentence is applicable. If any portion
of the employee's interest is payable to (or for the benefit of) a
designated beneficiary, such portion shall be distributed over the
life of such designated beneficiary (or over a period not extending
beyond the life expectancy of such beneficiary), and such distributions
begin not later than one year after the date of the employee's death
or such later date as provided by regulations issued by the Secretary
of the Treasury, then for purposes of the five-year rule set forth
in the preceding sentence, the benefit payable to the beneficiary
shall be treated as distributed on the date on which such distributions
begin. Provided, however, that notwithstanding the preceding sentence,
if the designated beneficiary is the surviving spouse of the participant,
then the date on which distributions are required to begin shall not
be earlier than the date upon which the employee would have attained
age 70 1/2 and, further provided, if the surviving spouse dies
before the distributions to such spouse begin, this subparagraph shall
be applied as if the surviving spouse were the employee.
C.
For purposes of this subsection, the following definitions and procedures
shall apply:
(1)
"Required beginning date" shall mean April 1 of the calendar
year following the later of the calendar year in which the employee
attains age 70 1/2, or the calendar year in which the employee
retires.
(2)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this plan according to its rules.
(3)
Any amount paid to a child shall be treated as if it had been
paid to the surviving spouse if such amount will become payable to
the surviving spouse upon such child's reaching majority (or other
designated event permitted under regulations issued by the Secretary
of the Treasury).
(4)
For purposes of this subsection, the life expectancy of an employee
and/or the employee's spouse (other than in the case of a life annuity)
may be redetermined but not more frequently than annually.
D.
General Rules. The requirements of this Subsection 5 will take precedence over any inconsistent provisions of the plan. All distributions required under this Subsection 5 will be determined and made in accordance with § 401(a)(9) of the Internal Revenue Code and the Treasury regulations thereunder, and the employer's good faith interpretation of such code and regulations.
6.
Change of Benefit Election. Any election permitted hereunder may
be revoked or a new election may be made within the applicable election
period on a form and in a manner prescribed by the plan administrator
and without the knowledge or consent of any applicable beneficiary.
7.
Personal Right of Participant. Each participant's right to receive
any benefits hereunder is personal and expires on such participant's
death. No heir, legatee, devisee, beneficiary, assignee or other person
claiming by or through a participant shall have any interest in any
benefits hereunder unless clearly and expressly so provided by the
terms of this plan. A participant's election, failure to file an election
hereunder or revocation of an election shall be final and binding
on all persons.
8.
Direct Rollovers. This subsection applies to distributions made on
or after December 31, 2001. 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 that is equal to at least $500
paid directly to an eligible retirement plan specified by the distributee
in a direct rollover.
A.
For purposes of this subsection, the following definitions shall
apply:
(1)
"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: 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; any distribution to the
extent such distribution is required under Code § 401(a)(9);
and 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).
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For purposes of the direct rollover provisions in this subsection
of the plan, a portion of a distribution shall not fail to be an eligible
rollover distribution merely because the portion consist of after-tax
employee contributions that are not includible in gross income. However,
such portion may be paid only to an individual retirement account
or annuity described in § 408(a) or (b) of the Code, or
to a qualified defined contribution plan described in § 401(a)
or 403(a) of the Code (effective for distributions on or after January
1, 2007, any qualified trust or Code § 403(b) plan) 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.
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(2)
"Eligible retirement plan" is a qualified trust described in
Code § 401(a), an individual retirement account described
in Code § 408(a), and individual retirement annuity described
in Code § 408(b), an annuity plan described in Code § 403(a),
an annuity contract described in Code § 403(b), an eligible
plan under § 457(b) of the Code 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.
(3)
"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)
"Direct rollover" is a payment by the plan to the eligible retirement
plan specified by the distributee.
(5)
Effective January 1, 2008, direct rollovers may be made to a
Roth IRA described in § 408A of the Internal Revenue Code
to the extent that the applicable requirements of Code § 408A
are satisfied with respect to any direct rollover to such Roth IRA.
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This subsection applies to distributions made on or after January
1, 2010. Notwithstanding any provision of the plan to the contrary
that would otherwise limit a nonspouse beneficiary's election under
this subsection, a nonspouse beneficiary may elect to have a portion
of a plan distribution (that is payable to such nonspouse beneficiary
due to a participant's death) paid in a direct trustee-to-trustee
transfer to an individual retirement account described in Code § 408(a)
or to an individual retirement annuity described in § 408(b)
(other than an endowment contract) that has been established for the
purposes of receiving the distribution on behalf of such nonspouse
beneficiary. For these purposes, a "nonspouse beneficiary" is an individual
who is a designated beneficiary (as defined by § 401(a)(9)(E)
of the Internal Revenue Code) of a participant and who is not surviving
spouse of such participant.
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[Ord. 774, 12/13/2011, Art. VI]
1.
Disability Retirement. A participant who has completed at least 10
years of credited service and who shall incur a total and permanent
disability prior to attainment of alternate, early or normal retirement
age shall be entitled to a disability retirement benefit.
2.
Disability Retirement Benefit. A participant who shall be entitled to a disability retirement benefit under Subsection 1 shall receive a benefit in an amount equal to the participant's accrued benefit determined as of the disability date.
3.
Payment of Disability Benefit. Disability payments shall be made
monthly, commencing as of the first day of the month coincident with
or immediately following the participant's disability date and continuing
until the earliest of the death of the participant, cessation of total
and permanent disability, or attainment of normal retirement age.
Such a participant who attains normal retirement age shall have the
benefit considered a normal retirement benefit thereafter paid in
the same amount and for the life of the participant only.
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A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, shall not be entitled to any distribution of accumulated contributions pursuant to § 1-517, Subsection 2, to the extent that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date, and shall not be entitled to any other benefits under the plan on account of any credited service as of the disability date.
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4.
Verification of Disability. The plan administrator shall in its sole
discretion determine whether a participant shall have incurred a total
and permanent disability. The plan administrator shall rely on the
report of a physician acceptable to the plan administrator and such
other evidence as the plan administrator shall deem appropriate. If
the plan administrator shall determine that a participant who is totally
and permanently disabled and who has not attained normal retirement
age has recovered sufficiently to resume active employment or if a
participant refuses to undergo a medical examination as directed by
the plan administrator (such a medical examination may not be required
more frequently than once in any given twelve-month period), the payment
of disability retirement benefits shall cease.
5.
Cessation of Disability. A participant who is receiving payment of
disability retirement benefits under this plan must notify the plan
administrator of any change which may cause a cessation of entitlement
to receipt of such benefits hereunder. If a participant fails to provide
immediate notice to the plan administrator of any such change in status
and continues to receive payment of benefits hereunder to which the
participant is not entitled, then the plan may take whatever action
is necessary to recover any amount of improperly paid amounts, including
legal action or offsetting such amounts against any future payments
of retirement or other benefits under the plan, including the costs
of such actions.
[Ord. 774, 12/13/2011, Art. VII]
1.
Rights of Terminated Employees. A participant who shall cease to
be an employee except as otherwise hereinbefore provided, shall be
limited to those rights under the plan contained in the following
subsections of this section.
2.
Distribution of Accumulated Contributions. A participant whose employment
with the employer ceased for any reason other than death or total
and permanent disability prior to completion of at least 10 years
of service shall only be entitled to receive a distribution of accumulated
contributions. Upon receipt of such accumulated contributions, said
participant and beneficiary shall not be entitled to any further payments
from the plan.
3.
Vested Benefits. A participant who ceases to be an employee in employment for any reason other than death, disability or retirement, and who has completed at least 10 years of service shall be entitled to a 100% vested retirement benefit based upon the accrued benefit at the date employment ceases. Such a participant may choose to receive the benefit earned pursuant to the provisions of § 1-515, Subsection 3, and elect to receive the single sum payment of the participant's accumulated contributions determined as of the date of employment termination and paid at any time after such termination and prior to the commencement of any other payment option. The remaining benefit attributable to employer contributions or the full value of accrued benefit if no distribution of accumulated contributions occurs may commence as of the date of eligibility for a benefit under § 1-514, Subsection 5, including applicable reductions for early commencement, or under § 1-514, Subsection 2 or 3.
4.
Forfeiture. A participant who terminates employment with the employer
at a time when not vested in any portion of the accrued benefit derived
from employer contributions shall cease to be a participant hereunder
and shall not be entitled to any benefits under the plan derived from
employer contributions.
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A terminated participant who shall have made employee contributions
to the plan shall have the current value of such contributions refunded
to the beneficiary of the participant, if the participant dies prior
to receipt of the accumulated contributions.
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[Ord. 774, 12/13/2011, Art. VIII]
1.
Death Benefit. Except as hereinafter set forth, no benefit shall
be payable hereunder upon or by reason of the death of any participant.
2.
Death Prior to Eligibility for Retirement. A benefit shall be payable
to the beneficiary of a participant who shall die prior to becoming
eligible to commence a retirement benefit in a single payment in an
amount equal to the accumulated contributions as of the date of death
of the participant. The beneficiary, with the approval of the plan
administrator, may choose to convert the value of the single sum payment
into an available monthly annuity consistent with the annuity options
under the plan.
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Notwithstanding the foregoing, a surviving spouse annuity will
be paid to the spouse of a participant who shall die while an active
employee in employment after attainment of early retirement age and
prior to attainment of normal retirement age. The surviving spouse
annuity shall be an amount equal to the value payable to the survivor
for a joint and 50% survivor annuity pursuant to § 1- 515,
Subsection 2A, hereof as if the participant retired on the date of
death and elected immediate commencement of the early retirement benefit
as of such date, reduced by the value of the benefit which would have
been payable under the preceding paragraph as a monthly annuity to
the spouse as if the spouse were the unmarried beneficiary as of the
date of death of the participant.
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3.
Death After Retirement. A benefit shall be payable to the beneficiary of a participant who shall die after the payment of monthly retirement benefits has commenced or in the case of a participant who shall die after attainment of normal retirement age but prior to the commencement of benefits only to the extent and in the manner consistent with the provisions of the form of payment of benefits selected by the participant pursuant to the provisions of § 1-515.
4.
Veterans' Survivor Benefits. Notwithstanding any other provision
of the plan to the contrary, in the case of the death of a participant
who dies on or after January 1, 2007, while performing qualified military
service (as defined in Code § 414(u)), the survivors of
the participant are entitled to any additional benefits under the
plan (if any) had the participant resumed and then terminated employment
on account of death.
[Ord. 774, 12/13/2011, Art. IX]
1.
Plan Administrator. The Council of the employer may appoint a plan
administrator who shall be either an individual or a committee. The
plan administrator shall have the power and authority to do all acts
and to execute, acknowledge and deliver all instruments necessary
to implement and effectuate the purpose of this plan. The plan administrator
may delegate authority to act on its behalf to any persons it deems
appropriate. If the Council does not appoint a plan administrator,
the employer shall be the plan administrator.
2.
Pension Plan Committee. If the Council shall appoint a Pension Plan
Committee, it shall consist of from one to five members who shall
serve in that capacity until the earliest of resignation, death, removal
or otherwise. Each member may be removed at any time, with or without
cause, by the Council. Each member may resign by delivering written
notice to the Council and other members of the Pension Plan Committee.
Vacancies on the Pension Plan Committee shall be filled by the Council;
provided, however, that the remaining members of the Pension Plan
Committee shall have full power to act pending the filling of such
vacancies.
3.
Authority and Duties of the Plan Administrator. The plan administrator
shall have full power and authority to do whatever shall, in its judgment,
be reasonably necessary for the proper administration and operation
of the plan. The interpretation or construction placed upon any term
or provision of the plan by the plan administrator or any action of
the plan administrator taken in good faith shall, upon the Council's
review and approval thereof, be final and conclusive upon all parties
hereto, whether employees, participants or other persons concerned.
By way of specification and not limitation and except as specifically
limited hereafter, the plan administrator is authorized:
A.
To construe this plan.
B.
To determine all questions affecting the eligibility of any employee
to participate herein.
C.
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary.
D.
To authorize any and all disbursements.
E.
To prescribe any procedure to be followed by any participant and/or
other person in filing any application or election.
F.
To prepare and distribute, in such manner as may be required by law
or as the administrator deems appropriate, information explaining
the plan.
G.
To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan.
H.
To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws.
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The plan administrator shall have no power to add to, subtract
from or modify the terms of the plan or 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 plan 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 Council.
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4.
Pension Plan Committee Organization. The Committee, if one is appointed,
may organize itself in any manner deemed appropriate to effectuate
its purposes hereunder, subject to the following:
A.
The Committee shall act by a majority of its members at the time
in office and such action may be taken either by vote at a meeting
or in writing without a meeting.
B.
The Committee shall, from time to time, appoint a Chairman, a Secretary
who may, but need not, be a Committee member and such other agents
as it may deem advisable.
C.
The Committee may, from time to time, authorize anyone or more of
its members to execute any document or documents including any application,
request, certificate, notice, consent, waiver or direction and shall
notify the Council, in writing, of the name or names of the member
or members so authorized. In the absence of a designation, the Chairman
shall be deemed to be so authorized. Any trustee or other fiduciary
appointed hereunder shall accept and be fully protected in relying
upon any document executed by the designated member or members (or
the Chairman in the absence of a designation) as representing a valid
action by the Committee until the Committee shall file with such fiduciary
a written revocation of such designation.
D.
The Committee, or its delegate, shall maintain and keep such records
as are necessary for the efficient operation of the plan or as may
be required by any applicable law, regulation or ruling and shall
provide for the preparation and filing of such forms or reports as
may be required to be filed with any governmental agency or department
and with the participants and/or other persons entitled to benefits
under the plan.
5.
Pension Plan Committee Costs. The Committee members shall each serve
without compensation for services unless otherwise agreed by the Council
in writing. All reasonable expenses incident to the functioning of
the Committee, including, but not limited to, fees of accountants,
counsel, actuaries and other specialists and other costs of administering
the plan, may be paid from the pension fund upon approval by the Council
to the extent permitted under applicable law and not otherwise paid
by the employer.
6.
Hold Harmless. No member of the Council, the plan administrator,
the enrolled actuary 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 employer shall, and hereby does
agree to, indemnify and hold harmless each present member of the Committee
and each successor and each of any such member's heirs, executors
and administrators, and the Committee's delegates and appointees (other
than any person, bank, firm or corporation which is independent of
the employer and which 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 is or may be
made a party by reason of being or having been a member, delegate
or appointee of the Committee, except in matters involving criminal
liability, intentional or willful misconduct. If the employer purchases
insurance to cover claims of a nature described above, then there
shall be no right of indemnification 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.
7.
Approval of Benefits. The plan administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
8.
Appeal Procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the plan ("claimant"), shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
A.
Any claimant shall file a notice of the claim with the plan administrator
which shall fully describe the nature of the claim. The plan administrator
shall review the claim and make an initial determination approving
or denying the claim.
B.
If the claim is denied in whole or in part, the plan administrator
shall, within 90 days (or such other period as may be established
by applicable law) from the time the application is received, mail
notice of such denial to the claimant. Such ninety-day period may
be extended by the plan administrator if special circumstances so
require for up to 90 additional days by the plan administrator's delivering
notice of such extension to the claimant within the first ninety-day
period. Any notice hereunder shall be written in a manner calculated
to be understood by the claimant and, if a notice of denial, shall
set forth (1) the specific plan provisions on which the denial is
based, (2) an explanation of additional material or information, if
any, necessary to perfect such claim and a statement of why such material
or information is necessary, and (3) an explanation of the review
procedure.
C.
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Council of the
initial determination. Such request for review must be made by notice
to the Council within 60 days of receipt of such 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 Council shall, within 60 days
after receipt of the notice requesting such review, (or in special
circumstances, such as where the Council 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, shall be written in a manner calculated to be understood
by the claimant and shall contain specific references to the pertinent
plan provisions on which the decision is based.
D.
Any notice of a claim questioning the amount of a benefit in pay
status shall be filed within 90 days following the date of the first
payment which would be adjusted if the claim is granted unless the
plan administrator allows a later filing for good cause shown.
E.
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.
F.
Nothing contained herein is intended to abridge any right of a claimant to appeal any final decision hereunder to a court of competent jurisdiction under 2 Pa.C.S.A. § 752. No decision hereunder is a final decision from which such an appeal may be taken until the entire appeal procedure of this Subsection 8 of the plan has been exhausted.
[Ord. 774, 12/13/2011, Art. X]
1.
Operation of the Pension Fund. The Council 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.
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The pension fund shall be used to pay benefits as provided in
the plan and, to the extent not paid directly by the employer, to
pay the expenses of administering the plan pursuant to authorization
by the employer.
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The employer 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 employer 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 employer under the plan, including contributions
made pursuant to the provisions hereof and the investments, reinvestments
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 employer has exclusive authority
and discretion to manage and control the pension fund assets. The
employer may, however, appoint a trustee, custodian and/or investment
manager, at its sole discretion.
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To the extent, the pension fund includes assets of the Money
Purchase Pension Plan as described in Appendix 1-5B-A,[1] the assets of the Money Purchase Pension Plan will be
held and invested separately from the assets of the Borough of Beaver
Municipal Employees' Pension Plan within the pension fund. Assets
in the Municipal Employees' Pension Plan and the Money Purchase Pension
Plan are for the exclusive benefits of each individual plan and assets
from one plan may not be used for the benefit of other plan. In addition,
the assets of each individual plan may be used to pay benefits as
provided in that plan and, to the extent not paid directly by the
employer, to pay the expenses of administering that individual plan
pursuant to authorization by the employer.
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[1]
Editor's Note: Appendix 1-5B-A was repealed 9/8/2015 by Ord.
810. See now Part 5F of this chapter.
2.
Powers and Duties of Employer. With respect to the pension fund,
the employer 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), without liability for interest thereon.
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 legal 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 employer 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 employer 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 employer, 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. 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 employer, such trustee shall make such distribution only at
the direction of the employer.
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 employer 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 employer, taking into account the interests
of the participants 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 or 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 employer appoints a trustee,
the trustee shall not be permitted to retain such an Investment Manager
except with the express written consent of the employer.
3.
Common Investments. The employer shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant'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 employer and the trustee,
unless such compensation is prohibited by law. Such compensation,
and all expenses reasonably incurred by the trustee in carrying out
his functions, shall constitute a charge upon the employer or the
pension fund, which may be executed at any time after 30 days' written
notice to the employer. The employer 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 employer,
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 employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto the participants and beneficiaries and their estates. In making
any such determination, the employer 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. 774, 12/13/2011, Art. XI]
1.
Amendment of the Plan. The employer may amend this plan, at any time,
or from time to time by an instrument in writing executed in the name
of the employer under its municipal seal by officers duly authorized
to execute such instrument and delivered to the Council, provided
however:
A.
That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which such person
is entitled under this plan with respect to contributions previously
made.
B.
That no amendment shall provide for the use of funds or assets held under this plan other than for the benefit of employees and no funds contributed to this plan or assets of this plan shall, except as provided in § 1-513, Subsection 5, and Subsection 5 of this section, ever revert to or be used or enjoyed by the employer.
2.
Termination of the Plan. The employer 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 employer consistent with the provisions
of applicable law.
3.
Automatic Termination of Contributions. Subject to the provisions
of the Act governing financially distressed municipalities, the liability
of the employer to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
4.
Distribution Upon Termination. In the event of the termination or
partial termination of the plan, all amounts of vested benefits accrued
by the affected participants to the date of such termination, to the
extent funded on such date, shall be non-forfeitable hereunder. In
the event of termination of the plan, the employer shall direct either
(A) that the plan administrator continue to hold the vested accrued
benefits of participants in the pension fund in accordance with the
provisions of the plan (other than those provisions related to forfeitures)
without regard to such termination until all funds have been distributed
in accordance with the provisions; or (B) that the plan administrator
immediately distribute to each participant an amount equal to the
vested accrued benefit to the date.
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If there are insufficient assets in the pension fund to provide
for all vested accrued benefits as of the date of plan termination,
priority shall first be given to the distribution of any amounts attributable
to mandatory or voluntary participant contributions before assets
are applied to the distribution of vested benefits attributable to
other sources hereunder.
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All other 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 employer which
effects such termination.
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5.
Residual Assets. If all liabilities to vested participants 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, the residual assets shall be returned to the employer insofar
as such return does not contravene any provision of law, and any remaining
balance in excess of employer contributions, 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 employer 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 participants in the plan, their beneficiaries
or their estates.
[Ord. 774, 12/13/2011, Art. XII]
1.
Actuarial Valuations. The plan's actuary shall perform an actuarial
valuation at least biennially unless the employer is applying or has
applied for supplemental state assistance pursuant to § 603
of the Act, whereupon actuarial valuation reports shall be made annually.
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Such 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.
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Such actuarial valuation shall be prepared and certified by
an approved actuary, as such term is defined in the Act.
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The expenses attributable to the preparation of any actuarial
valuation report or experience-investigation required by the Act or
any other expense which is permissible under the terms of the Act
and which are directly associated with administering the plan shall
be an allowable administrative expense payable from the assets of
the pension fund. Such allowable expenses shall include but not be
limited to the following:
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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 expense for pension plan officials;
provided, however, that the municipal officials of the employer, in
their fiduciary role, shall monitor the services provided to the plan
to ensure that the expenses are necessary, reasonable and benefit
the pension plan and, further provided, that the plan administrator
shall document all such expenses item by item, and where necessary,
hour by hour.
2.
Reporting Requirements. Such actuarial reports shall be prepared
and filed under the supervision of the Chief Administrative Officer
of the municipality. The Chief Administrative Officer of the pension
plan shall determine the financial requirements of the pension plan
on the basis of the most recent actuarial report and shall determine
the minimum municipal obligation of the employer with respect to funding
the plan for any given plan year. The Chief Administrative Officer
shall submit the financial requirements of the plan and the minimum
municipal obligation of the employer to the Council annually and shall
certify the accuracy of such calculations and their conformance with
the Act.
3.
Benefit Modifications. Prior to the adoption of any benefit plan
modification by the employer, the Chief Administrative Officer of
the plan shall provide to the Council a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Council the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum municipal obligation of the employer
with respect to the plan.
[Ord. 774, 12/13/2011, Art. XIII]
1.
Plan Not a Contract of Employment. No employee of the employer nor
anyone else shall have any rights whatsoever against the employer
or the plan administrator as a result of this plan except those expressly
granted to them hereunder. Nothing herein shall be construed to give
any employee the right to remain in the employ of the employer.
2.
Masculine/Feminine; Singular/Plural. For purposes of this plan, the
masculine shall be read for the feminine and the singular shall be
read for the plural, wherever the person or context shall plainly
so require.
3.
Construction of Document. This plan may be executed and/or conformed
in any number of counterparts, each of which shall be deemed an original
and shall be construed and enforced according to the laws of the commonwealth,
excepting such commonwealth's choice of law rules.
4.
Headings. The headings of articles are included solely for convenience
of reference, and if there be any conflict between such headings and
the text of the plan, the text shall control.
5.
Severability of Provisions. In case any provisions of this plan shall
be held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this plan, and the plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted therein.
6.
Incapacity of Participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of pension benefits hereunder, the plan administrator, upon
the receipt of satisfactory evidence that such participant is so incapacitated
and that another person or institution is maintaining him, may provide
for such payment of pension benefits hereunder to such person or institution
so maintaining him, and any such payments so made shall be deemed
for every purpose to have been made to such participant.
7.
Liability of Officers of the Plan Administrator and/or Employer.
Subject to the provisions of the Act and unless otherwise specifically
required by other applicable laws, no past, present or future officer
of the employer shall be personally liable to any participant, beneficiary
or other person under any provision of the plan.
8.
Assets of the Fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
9.
Pension Fund for Sole Benefit of Participants. The income and principal
of the pension fund are for the sole use and benefit of the participants
covered hereunder, and to the extent permitted by law, shall be free,
clear and discharged from and are not to be in any way liable for
debts, contracts or agreements, now contracted or which may hereafter
be contracted, and from all claims and liabilities now or hereafter
incurred by any participant or beneficiary.
