[Ord. 558, 8/9/1993, § I]
For the purposes of this Part, the following definitions shall
apply:
Normal retirement benefit multiplied by the ratio of years
of service to the date of determination, over years of service to
normal retirement date.
The equivalent value of benefits determined on the basis
of the actuarial assumptions reported in the last actuarial valuation
report filed with the Municipal Pension Reporting Program under Act
205.
[Amended by Ord. No. 691, 3/11/2019]
At nearest birthday.
January 1 of each year.
Borough of Wellsboro.
Total compensation paid during a plan year.
The effective date of this amendment and restatement is January
1, 1991. The original effective date of the plan is January 1, 1971.
The Borough of Wellsboro.
Annual compensation over the final three years of service.
Borough of Wellsboro Nonuniformed Employees Pension Plan
Fund.
Each hour for which an employee is paid, or entitled to payment
for the performance of duties for the employer.
Any nonuniformed employee, excluding members of the Teamsters Union, who meets the requirements set forth in § 1-804 of this Part. The masculine will include the feminine.
Forty-five percent of final average compensation plus, 10%
of final average compensation in excess of $7,800. The excess portion
shall be reduced by 1/17 for each year of service less than 17.
The Borough of Wellsboro Nonuniformed Employees Pension Plan.
January 1 to December 31.
The computation period of 12 consecutive months during which
an employee has 1,000 hours of service. For purposes of eligibility
for participation, the initial computation period shall begin with
the date on which the employee performs an hour of service. The participation
period shall shift to the current plan year (which includes the anniversary
date on which the employee first performed an hour of service) after
the initial period. For vesting and benefit accrual purposes, a year
of service shall be a plan year in which an employee completes 1,000
hours of service.
[Ord. 558, 8/9/1993, § II]
1.
This plan is to be funded and maintained by any of the following
methods, or combination of each:
A.
State aid received pursuant to the Municipal Pension Plan Funding,
Standard and Recovery Act (Act 205).
B.
Contributions from the general fund of the Borough of Wellsboro.
C.
Gifts, Grants, Devises or Bequests. The sums which may be received
by the Borough in the form of gifts, grants, devises or bequests to
the extent authorized by law.
D.
Any other sums received or contributed to the Borough to the extent
authorized by law.
[Ord. 558, 8/9/1993, § III]
1.
The general administration and management of the plan shall be under
the direction of the Borough Council. The Borough Council shall have
complete control of the administration of the plan and shall have
all powers necessary to enable it properly to carry out its duties
including, but not limited to, the power to construe the provisions
of this plan, to determine all questions relating to eligibility of
members and to authorize all disbursement for benefits to members.
The decisions of the Borough Council on all matters within the scope
of its authority shall be final.
2.
The fund shall be under the direction of the Borough Council. The
Borough Council shall hold, vest, reinvest and distribute all funds
and other property received pursuant hereto in trust for the purposes
of this Part. The Borough Council may receive, at any time, gifts,
grants, devises or bequests to the pension fund of any money or property,
real, personal or mixed, to be held by the Borough Council in trust
for the benefit of this fund and in accordance with the provisions
hereof.
3.
The Borough Council shall have full power and authority by a majority
action of its members, either directly or through their designated
representatives, to do all acts, execute, acknowledge and deliver
all instruments and to exercise for the sole benefit of the members
hereunder any and all powers and discretions necessary to implement
and effectuate the purposes of this Part including, for purposes of
illustration but not limited to, any of the following:
A.
To hold, invest and reinvest all funds received pursuant to this
document and such legal investments as may be authorized as legal
investments under the laws of the Commonwealth of Pennsylvania.
B.
To retain any property which may at any time become an asset of the
fund, so long as the Borough Council may deem it advisable.
C.
To make distribution of the monies in the fund in accordance with
their terms of this Part.
D.
To appoint a trustee or custodian to hold, invest and reinvest plan
funds in accordance with this Part. Such trustee or custodian may
be removed or resign by giving 60 days' written notice to the
other party. The Borough Council shall maintain the authority to oversee
and review the performance of the trustee or custodian both on an
investment and administrative basis. Plan funds may be invested in
pooled funds designated for employee benefit trust funds.
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The expense of administering this pension fund, including compensation
of any actuary, any custodian of the fund and any other charges or
expenses related thereto, exclusive of the payment of pensions, may
be paid by the Borough from the fund, as determined by the Borough
Council.
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[Ord. 558, 8/9/1993, § IV]
1.
Each full-time nonuniformed and nonunion employee of the Borough
(regularly working not less than 40 hours per week during the calendar
year) is eligible to participate and shall be a member in the plan
on the January 1 coincident with or next following the attainment
of age 20 1/2 and the completion of 1/2 year of service. All
employees participating in the plan as of the effective date of the
amendment of the plan will continue to be members.
2.
A member shall retain membership status until he separates from service
and is paid all benefits due to him. Any member who separates from
service under circumstances other than those specified in this Part
shall cease to be a member and shall, if he returns to service, requalifying
as though he had never been a member.
[Ord. 558, 8/9/1993, § V]
1.
The benefit from the fund shall be payable to members who meet the
following requirements after which the member may retire from service
with the employer.
2.
The normal retirement date to receive benefit from the fund shall
be the first day of the month coinciding with or next following the
65th birthday or the fifth anniversary of the date on which participation
in the plan commenced, if later. If a member is continuing in the
employ of the employer after the normal retirement date, benefit payments
will be postponed to the first day of the month next following the
actual date of retirement, and will be in an amount equal to the actuarial
equivalent of the normal retirement benefit.
3.
The basis for determining the amount of annual pension to a member
retiring under this section shall be 45% of the final average compensation
plus 10% of final average compensation in excess of $7,800. The excess
portion shall be reduced by 1/17 for each year of service less than
17.
4.
Such pension shall be payable from the assets of the fund established
pursuant to this Part.
5.
The normal form of annuity under the plan is a ten-year certain and
continuous annuity. However, upon retirement, a member may elect to
receive benefits in a form different than the normally prescribed
annuity form. Any such alternative from must be the actuarial equivalent
of the normal form of annuity.
6.
All benefit options are payable on a monthly basis. The various annuity
options are as follows:
A.
Life Annuity. This annuity is paid for the rest of the retiree's
life. Upon death, all benefit payments would cease unless the guaranteed
amount had yet to be paid.
B.
Ten Year Certain and Continuous Annuity. This annuity form guarantees
payments to the retiree and the beneficiary for at least 10 years.
For instance, if the retiree died after five years of payment had
occurred, the beneficiary would receive payments for the next five
years. As long as the retiree was alive, the monthly benefit would
continue to be paid. If, however, the retiree died after 10 years
of payments and the full guaranteed amount had already been paid,
there would be no additional death benefit to the beneficiary.
C.
Five Year Certain and Continuous Annuity. This annuity form operates
exactly like the ten-year certain and continuous annuity with the
only difference being that payments are only guaranteed for five years.
D.
Joint and 50% Survivor Annuity. This annuity provides for a monthly
payment paid to the retiree for the rest of his life. Upon his death,
the spouse, as beneficiary, would receive 50% of the amount the retiree
was receiving at the time of death. The payments would continue to
the spouse for the rest of her life.
E.
Joint and 100% Survivor Annuity. This annuity operates in the same
manner as the joint and 50% survivor annuity with the only difference
being upon the death of the retiree, the spouse would receive the
exact same monthly payment for the rest of her life.
[Ord. 558, 8/9/1993, § VI]
1.
Early retirement date is the first of the month coincident with or
next following a member's retirement from the employ of the employer
following the 60th birthday or the completion of 10 years of service,
if later.
2.
The early retirement benefit is the actuarial equivalent of the accrued
benefit earned to the early retirement.
[Ord. 558, 8/9/1993, § VII]
1.
In addition to the pension provided by the plan, any member who becomes
totally and permanently disabled shall be entitled to receive a benefit
equal to 100% of the present value of the accrued benefit.
2.
"Total and permanent disability" shall mean a physical or mental
condition of a member which precludes him from engaging in any substantially
gainful employment, but excludes a disability resulting from military
service, for which a government pension is payable, and excludes a
disability resulting from habitual drunkenness or drug addiction,
engaging in a criminal enterprise or intentionally self-inflicted
injury. Determination of disability is to be made by a duly qualified
physician selected by the employer. Such determination shall be final
and conclusive.
[Ord. 558, 8/9/1993, § VIII]
1.
The preretirement death benefit payable under this plan is the preretirement
survivor annuity, which means an annuity from of payment for the life
of the surviving spouse of a member who dies prior to his retirement
date in an amount which must be equal at least to the actuarial equivalent
of the "minimum spouse's death benefit."
2.
For the purposes of this section, the "minimum spouse's death
benefit" means a death benefit for a married member payable in the
from of a preretirement survivor annuity. Such annuity payments shall
be equal to the amount which would be payable as a survivor annuity
under the joint and 50% survivor annuity under the plan if:
A.
In the case of a member who dies after the "earliest retirement age,"
such member had retired with an immediate joint and 50% survivor annuity
on the day before the member's date of death.
B.
In the case of a member who dies on or before the "earliest retirement
age," such member had:
(1)
Separated from service on the date of his death.
(2)
Survived to the "earliest retirement age."
(3)
Retied with an immediate joint and 50% survivor annuity at the
"earliest retirement age."
(4)
Died on the day after the day on which said member would have
attained the "earliest retirement age."
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For the purposes of this section, "earliest retirement age"
means the earliest date on which, under the plan, the member could
elect to receive retirement benefits.
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[Ord. 558, 8/9/1993, § IX]
1.
Vesting occurs according to the following schedule:
|
Years of Service
|
Vested Percent
| |
|---|---|---|
|
0-2
|
0%
| |
|
2
|
20%
| |
|
3
|
40%
| |
|
4
|
60%
| |
|
5
|
80%
| |
|
6
|
100%
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2.
Any member who terminates employment prior to retirement for reasons
other than death or disability shall be eligible to receive the vested
portion of the accrued benefit, normally payable at a retirement date.
The present value of the vested accrued benefit is payable prior to
a retirement date subject to the approval of the Borough Council.
[Ord. 558, 8/9/1993, § X]
The pension payments herein provided for shall not be subject
to attachment, execution, levy, garnishment or other legal process
and shall be payable only to the member or his designated beneficiary.
No member or his beneficiary shall have any right to alienate, encumber
or assign any assets of the fund held by the borough Council on his
behalf, or any of the benefit or payments or proceeds of any contract
or agreement purchased or acquired by the Borough hereunder.
