[HISTORY: Adopted by the Board of Commissioners of the Township
of Wilkins as indicated in article histories. Amendments noted where
applicable.]
[Adopted 1-28-2002 by Ord. No. 939[1](Ch. 45, Art.
I, of the 1998 Township Code); amended in its entirety 12-12-2016 by Ord. No. 1069]
The following words and phrases as used in this article shall
have the meaning set forth in this section, unless a different meaning
is otherwise clearly required by the context:
As of any given date, the benefit determined under § 77-4B calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one.
The accrued benefit shall include any service increment benefit determined pursuant to § 77-4D attributable to the participant's aggregate service as of the determination date. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation, provided under § 77-4G. All accrued benefits are subject to all applicable limitations, reductions, offsets, and actuarial adjustments provided pursuant to the terms of the plan prior to the actual payment thereof.
The total amount contributed by any participant to this fund or its predecessor by way of payroll deduction or otherwise, plus interest credited at 3% per annum. Interest shall be credited in the form of a compound interest rate from the midpoint of the plan year during which the contributions were paid through the date that a distribution of accumulated contributions under sections §§ 77-6D or 77-7B shall be paid or payment of benefits shall commence.
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
specifically 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.
The total period or periods of the participant's employment
with the employer, whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment
for which employee contributions are required, such period of employment
shall not be included in aggregate service thereafter unless, at the
commencement of the next period of employment, the participant repays
to the fund the amount of such distribution with interest. For purposes
of this definition, interest shall accrue as of the date the employee
receives a distribution of accumulated contributions and shall be
computed at the same rate and in the same manner as described in the
definition of "accumulated contributions." Aggregate service shall
be calculated in completed years, and shall not include any period
of a voluntary leave of absence without pay.
The eligible children are registered at an accredited institution
of higher learning and are carrying a minimum course load of seven
credit hours per semester.
The person or entity designated by the participant to receive
a distribution of the participant's accumulated contributions
should the participant die prior to becoming entitled to a retirement
benefit. In the event that a participant does not designate a beneficiary
or the beneficiary does not survive the participant, 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;
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 Board of Commissioners of the Township of Wilkins.
The person designated by the Township who has the primary
responsibility for the execution of the administrative affairs for
the plan.
The Internal Revenue Code of 1986, as amended.
The Police Pension Plan Committee as determined pursuant to § 77-8B.
The Commonwealth of Pennsylvania.
The total remuneration of the employee, whether salary or
hourly wages, including overtime pay, holiday pay, longevity pay and
any other form of compensation paid by the employer for police services
rendered. Compensation shall be limited on an annual basis to the
amount specified for government plans pursuant to code Section 401(a)(17),
as adjusted under code Section 415(d).
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.
Any individual employed by the employer on a regular, full-time
basis as a police officer of the employer's police force.
Township of Wilkins, Allegheny County, Pennsylvania.
For the purpose of determining aggregate service:
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer;
Any period of time for which an employee is paid, either directly
by the employer or through a program to which the employer has made
contributions on behalf of the employee, a fixed, periodic amount
in the nature of salary continuation payments for reasons other than
the performance of duties (such as vacation, holidays, sickness, entitlement
to benefits under workers' compensation or similar laws);
Any period during which an employee is entitled to disability
benefits under this article, provided that the employee returns to
employment within three months of the date on which it is determined
that the employee is no longer totally and permanently disabled if
such determination occurs prior to the date a participant attains
normal retirement age;
Any period of voluntary or involuntary military service with
the Armed Forces of the United States of America, provided that the
participant has been employed as a regular full-time member of the
employer's police force for a period of at least six months immediately
prior to the period of military service, and the participant returns
to employment within six months following discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer;
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 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;
Any period of voluntary or involuntary military service with
the Armed Forces of the United States of America, not to exceed a
total of three years, which occurred prior to the date on which a
participant first became employed as an employee of the employer,
provided that the participant shall purchase such credit and that
such participant is not entitled to receive, eligible to receive or
is receiving retirement benefits for such military service under a
retirement system administered and wholly or partially paid for by
any other governmental agency except military retirement pay earned
by a combination of active and nonactive duty with a Reserve or National
Guard component of the armed forces which is payable upon the attainment
of a specified age and period of service under 10 U.S.C. § 67
(relating to retired pay for nonregular service). The purchase price
for such service shall be computed by multiplying the average normal
cost rate for the plan as certified by the Public Employee Retirement
Commission and not to exceed 10% times the participant's average
annual rate of compensation during the first three years of employment
and multiplying the result times the number of years and fractions
thereof being purchased. Interest shall be paid at a rate of 4.75%
compounded annually from the first date of employment to the date
of payment.
"Employment" shall not mean for the purpose of determining aggregate
service: Any period of disability for a participant who was disabled
as a result of a non-service-related disability.
The average monthly salary earned by the participant and paid
by the employer during the final 36 months immediately preceding termination
of active employment. Salary shall include the regular gross pay of
the employee, whether salary or hourly wages, including overtime pay,
holiday pay, longevity pay and other types of additions to compensation
by the employer for police services rendered. Salary shall exclude
for this purpose any single sum or extraordinary payments made which
are not directly attributable to active employment during the averaging
period, including but not limited to payment for accumulated sick
leave, payment of a longevity bonus, or payment of a back pay damage
award.
Final monthly average salary shall be calculated by taking into account only those periods during which an employee receives salary, as that term is defined in this section. Therefore, for example, the final monthly average salary for a participant who receives disability benefits from this planor who is voluntarily or involuntarily serving in the United States Armed Forces during the final 36 months of aggregate service shall be based on the period during which the employee last received salary (as defined in Subsection A) from the employer.
Salary used to determine final monthly average salary shall
be limited on an annual basis to the amount specified for government
plans in accordance with code Section 401(a)(17), as adjusted under
code Section 415(d).
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The first day of the month coincident with or next following
the date on which the participant retires from employment on which
the payment of retirement benefits pursuant to this plan shall commence.
The last month of basic salary before the date of death.
The last month of basic salary or basic rate of pay as applicable
under any then current collective bargaining agreement before the
disability date.
The minimum obligation of the municipality as determined
by the actuary pursuant to the provisions of the Act.
The date on which the participant has completed 25 years
of aggregate service with the employer and has attained age 55.
The first day of the month coincident with or next following
the date on which the participant attains 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 intended recipient on or before the last day of the specified
notice or election period.
An employee who has met the eligibility requirements to participate in the plan as provided in § 77-2A and who has not for any reason ceased to be a participant hereunder.
The Police Pension Fund administered under the terms of this
article and which shall include all money, property, investments,
policies and contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time and
designated as the "Township of Wilkins Police Pension Plan."
The committee or the individual appointed for the purpose
of supervising and administering the provisions of the plan. In the
event that no such appointment is made, the plan administrator shall
be the Board.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
January 1, 2016, the date upon which this amendment and restatement
of the plan becomes effective.
The amount calculated pursuant to § 77-4D on behalf of a participant for each completed year of service in excess of 25 years, not to exceed $100.
A condition of physical or mental impairment due to which a participant is unable to perform the usual and customary duties of employment and which is reasonably expected to continue to be permanent for the remainder of the participant's lifetime. For purposes of this defintion and § 77-5, a condition shall not be treated as a total and permanent disability unless such condition is a direct result of and occurs in the line of duty of employment. Therefore, an employee whose physical or mental impairment does not occur in the line of duty or which is the result of alcoholism, addiction to narcotics, perpetration of a felonious criminal activity or is willfully self-inflicted, is not entitled to receive disability benefits under the plan.
A.
Eligibility requirements. Each employee who is employed as a regular,
full-time permanent member of the Police Department of the employer
shall participate herein as of the date on which such employee's
employment first commences or recommences, provided all prerequisites
to participation under this article shall have been fulfilled, including
but not limited to, completion of all forms required by the plan administrator.
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.
B.
Participation requirements. The Board shall furnish the plan administrator with written notification of the appointment of any new full-time permanent employee who is eligible for participation hereunder. Each participant hereunder shall be required to make contributions to the plan, as provided in § 77-3A hereof, and shall execute and complete any enrollment or application forms as required by the plan administrator.
C.
Designation of beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the plan administrator which designates a beneficiary
at the time participation commences. The participant's election
of any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time provided the participant provides
the written notice of the changed designation to the plan administrator
in the manner prescribed by the plan administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
plan administrator shall be null and void and have no effect under
the terms of this article.
D.
Change in status. A participant who remains in the service of the
employer but ceases to be an employee eligible for participation hereunder,
or ceases or fails to make any contributions which are required as
a condition of participation hereunder, shall have no further benefit
accruals occur until the individual again qualifies as a participant
hereunder eligible to resume such accrual of benefits.
E.
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.
A.
Participant contributions. Each participant shall, as a requirement
of participation, pay regular contributions to the Pension Fund in
an amount equal to 5% of the participant's compensation. Each
participant shall complete the necessary forms to authorize the payment
of participant contributions by way of payroll deduction, if necessary.
B.
Reduction of participant contributions. Notwithstanding the preceding § 77-3A, if an actuarial study performed by the actuary shows that the condition of the Pension Fund is such that payments into the Pension Fund by participants may be reduced below the minimum percentages prescribed in § 77-3A or may be eliminated, and that if such payments are reduced or eliminated, contributions by the employer will not be required to keep the Pension Fund actuarially sound, the employer may, by ordinance or resolution, reduce or eliminate payments into the Pension Fund by participants.
C.
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 appropriations
or otherwise, the contributions necessary to satisfy the minimum municipal
obligation. Notwithstanding the foregoing, nothing contained herein
shall preclude the employer from contributing an amount in excess
of the minimum municipal obligation.
D.
State aid. General municipal pension system state aid, or any other
amount of state aid received by the employer in accordance with the
Act from the commonwealth may be deposited into the Pension Fund governed
by this article in amounts determined by the Board, and shall be used
to reduce the amount of the minimum municipal obligation of the employer.
E.
Gifts. The Board is authorized to take by gift, grant, devise or
otherwise any money or property, real or personal, for the benefit
of the plan and cause the same to be held as a part of the Pension
Fund. The care, management, investment and disposal of such amounts
shall be vested in the Board or its delegate, the plan administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.
F.
Employer reversion. 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, including payment of any reasonable plan expenses. Notwithstanding the foregoing, any contributions made by the employer may be returned to the employer if the contribution was made due to a mistake and the contribution is returned within one year of the date on which the discovery of the mistaken payment of the contribution was made or reasonably should have been made or the plan is terminated, as provided in § 77-10.
A.
Normal retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after the participant has
attained normal retirement age.
B.
Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to § 77-4A shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average salary as determined herein.
C.
Late retirement. A participant may continue in employment beyond the attainment of normal retirement age subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of § 77-4A continues in employment beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and the participant's retirement actually begins. The retirement benefit of a participant who continues employment after attainment of normal retirement age shall be calculated in accordance with § 77-4B on the basis of the final monthly average salary as of such participant's actual retirement and shall commence on the participant's late retirement date.
D.
Service increment benefit. Notwithstanding anything contained herein to the contrary, each participant who shall retire upon completion of the 26th anniversary of aggregate service or thereafter may be entitled to receive a monthly service increment benefit. Such service increment benefit shall only be available to a participant who shall retire on a retirement date after attainment of normal retirement age and whose aggregate service for purposes of this § 77-4D shall only include periods of time when the participant actively renders service in employment and shall not include any period of time during which the participant received a disability benefit under the terms of this article or was not otherwise in active employment. Such service increment benefit shall be an amount equal to $100 and shall be paid monthly in addition to the amount of normal retirement benefit calculated pursuant to section § 77-4B.
E.
Payment of benefits. Retirement benefit payments shall be payable
as of the first day of the month coincident with or next following
the participant's retirement date and the first day of each month
thereafter during the participant's lifetime. A participant must
complete an application for benefit in the manner prescribed by the
plan administrator and deliver such application to the plan administrator
at least 30 days prior to the date on which benefit payments shall
commence. Notwithstanding anything contained herein to the contrary,
no retirement benefit payments nor any other payments shall be due
or payable on or before the date that is 30 days after the date the
plan administrator receives the application for benefits. Payment
of benefits hereunder shall cease as of the date of death of the participant.
F.
Cost-of-living adjustments. Each participant who shall retire and receive a retirement benefit determined pursuant to § 77-4B hereunder shall be entitled to receive annual cost-of-living increases to the amount of benefit payable to such participant under § 77-4B. Such cost-of-living increases shall not exceed any of the following limits: 1) the percentage increase in the CPI-W from the year in which the participant was last employed as an employee of the employer; 2) the total retirement benefits payable under this plan shall not exceed 75% of the participant's final monthly average salary; 3) the total cost-of-living increase shall not exceed 30% of the participant's original retirement benefit under this plan; and 4) the cost-of-living increases shall not impair the actuarial soundness of the Pension Fund.
G.
Maximum benefit limitations. Notwithstanding any provision of this
article to the contrary, no benefit provided under this article attributable
to contributions of the employer shall exceed, as an annual amount,
the amount specified in code Section 415(b)(1)(A), as adjusted pursuant
to code Section 415(d), assuming the form of benefit shall be a straight
life annuity (with no ancillary benefits). The limitations described
in this subsection shall be governed by the following conditions and
definitions:
(1)
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 in accordance with applicable regulations to determine
the limitation contained herein;
(2)
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 section 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, including
applicable military service, as a full-time employee of a police or
fire department is taken into account in determining the amount of
benefit), the limitation contained herein shall not apply;
(3)
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 commencing at age 65;
(4)
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 section 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 § 77-5B or a survivor benefit pursuant to § 77-6B or C, with fewer than 10 years of participation the limitation expressed in this Subsection G(4) shall be reduced by 1/10 for each year of participation less than 10 but in no event shall this limitation be less than $1,000;
(5)
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 Section 415 and regulations thereunder as applicable to
government plans in general and this plan in particular;
(6)
In the case of a survivor benefit under section § 77-6B or C or a disability retirement benefit under section § 77-5B, the adjustment under Subsection G(2) hereof shall not apply and the applicable limitation shall be the limitation contained herein without regard to the age of the benefit recipient;
(7)
For mandatory employee contributions, the rules set forth in Treasury
Regulation 1.415(b)-1(b)(2)(iii) shall apply;
(8)
To the extent applicable, the plan will comply with the provisions
of code Section 415(n) regarding the purchase of permissive service
credits;
(9)
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), (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 Section 417(e)(3)(B);
(10)
Annual additions. Except as otherwise provided, annual additions
(which include participant contributions) under this article shall
at all times comply with the provisions of code Section 415(c) and
the regulations thereunder, the terms of which are specifically incorporated
herein by reference. If an annual addition would otherwise exceed
the limit under code Section 415(c), the excess annual addition will
be allocated in accordance with Reg. § 1.415-6(b)(6)(ii);
(11)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under code Section 415(c), and
if the annual additions would otherwise exceed the limit under code
Section 415(c), annual additions will first be reduced under the other
plan. If there is more than one other plan, annual additions will
first be reduced under the plan with the greatest amount of annual
additions;
(12)
Effective date. The limits under which code Section 415(c) are adjusted
periodically in accordance with changes in the law or cost of living
adjustments without the need for a plan amendment. If there is more
than one permissible effective date for any required change relating
to code Section 415(c), then the change shall be effective as of the
earliest permissible effective date.
H.
Required distributions.
(1)
Distribution
of benefits.
(a)
Notwithstanding
any other provision of this article, 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; or
[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).
(b)
If a participant who is entitled to benefits under this article dies prior to the date when the entire interest has been distributed after distribution of the benefits has begun in accordance with Subsection H(1)(a)[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 H(1)(a)[2] as of the date of the death
(2)
If a participant who is entitled to benefits under this article 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 subsection shall be applied as if the surviving spouse
were the employee.
(3)
For purposes of this section, the following definitions and procedures
shall apply:
(a)
"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.
(b)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this article according to its rules.
(c)
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).
(d)
For purposes of this section, 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.
(4)
General rules. The requirements of this Subsection H will take precedence over any inconsistent provisions of the plan. All distributions required under this Subsection H will be determined and made in accordance with Section 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.
I.
Assignment. The pension benefit payments prescribed herein shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant or designated
beneficiary and shall not be subject to assignment or transfer unless
the subject of a domestic relations order, mandated by a court of
competent jurisdiction, that clearly provides for proper distribution
of a portion of the pension benefit payments to an alternate payee
(former spouse of the participant) and does not require any benefit
to be paid in excess of the available earned and accrued under the
plan.
J.
Retired participants. Any participant who shall have retired prior to the restatement date shall not have the benefit altered in any way by the provisions of this amended and restated plan, except where otherwise expressly provided herein. Such retired participants shall continue to have their benefits governed by the terms of the plan in effect on the day preceding the restatement date. Any participant who shall have terminated employment and elected to receive a deferred retirement benefit under § 77-7C shall have such benefit determined based upon the provisions of the plan in effect as of the date of such termination of employment and shall not have the benefit altered by the provisions of this amended and restated plan.
K.
Limitation of liability. Nothing contained herein shall obligate
the employer, the plan administrator, any fiduciary or any agent or
representative of any of the foregoing, to provide any retirement
or other benefit to any participant or beneficiary which cannot be
provided from the assets available in the Pension Fund, whether such
benefits are in pay status or otherwise payable under the terms of
the plan. The Board retains the right to amend or terminate this article
consistent with applicable law at any time, with or without cause
and whether or not such action directly or indirectly results in the
suspension, reduction or termination of any benefit payable under
the plan or in pay status, and without liability to any person for
any such action.
L.
Personal right of participant. The right to receive any benefits
under this article is a personal right of the participant and shall
expire upon the death of the participant. 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 article or the provisions
of applicable law. A participant's election, failure to make
an election or revocation of an election hereunder shall be final
and binding on all persons.
M.
Nonduplication of benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under the plan
and who shall resume employment shall have benefit payments suspended
until the first day of the month coincident with or next following
the date such employment shall cease. Upon resumption of benefit payments,
such participant shall receive the greater of the amount of the suspended
benefit or the amount of benefit based upon final monthly average
salary and aggregate service as of the date that such period of resumed
employment shall cease.
N.
Incorporation of code Section 415 by reference. Notwithstanding anything
contained in § 77-7G to the contrary, the limitations, adjustments,
and other requirements prescribed in § 77-7G shall at all
times comply with the provisions of code Section 415 and the regulations
thereunder (as such apply to governmental plans), the terms of which
are specifically incorporated herein by reference.
O.
Direct rollovers.
(1)
This section 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 section,
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.
(2)
This Subsection O(2) shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, if a distribution in excess of $1,000 is made and the distributee does not make an election under § 77-4O(1) and does not elect to receive the distribution directly, the plan administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to § 77-8C(1). The plan administrator shall notify the distributee in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
(3)
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(a)
(b)
For purposes of this section, the following definitions shall apply:
Is a payment by the plan to the eligible retirement plan
specified by the distributee or the plan administrator, if the distributee
does not make an election. Effective January 1, 2008, direct rollovers
may be made to a Roth IRA described in Section 408A of the Internal
Revenue Code to the extent that the applicable requirements of code
Section 408A are satisfied with respect to any direct rollover to
such Roth IRA.
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 Section 414(p), are distributes with regard to
the interest of the spouse or former spouse.
Is a qualified trust described in code Section 401(a), an
individual retirement account described in code Section 408(a), an
individual retirement annuity described in code Section 408(b), an
annuity plan described in code Section 403(a), an annuity contract
described in code Section 403(b), an eligible deferred compensation
plan described in code Section 457(b), which is maintained by a state,
political subdivision of a state, and any agency or instrumentality
of a state or a political subdivision of a state and which agrees
to separately account for amounts transferred into such plan from
this plan.
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 Section 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).
For purposes of the direct rollover provisions in this section
of the plan, a portion of the distribution shall not fail to be an
eligible rollover distribution merely because the portion consists
of after-tax employee contributions that are not includible in gross
income. However, such portion may only be paid to an individual retirement
account or annuity described in Section 408(a) or (b) of the code,
or to a qualified defined contribution plan described in Section 401(a)
or 403(a) or an annuity contract described in Section 403(b) of the
code 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 which is not includible.
The previous sentence was effective as of January 1, 2002, except
that the reference to 403(b) annuity contracts became effective January
1, 2007.
(4)
This section 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 section, a nonspouse beneficiary may elect to have any 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 Section
408(a) or to an individual retirement annuity described in Section
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 Section 401(a)(9)(E)
of the Internal Revenue Code] of a participant and who is not the
surviving spouse of such participant.
P.
Approved domestic relations orders. Upon approval of the plan administrator
of a domestic relations order as an approved domestic relations order,
all rights and benefits, including elections, provided to a participant
in this plan shall be subject to the rights afforded to any alternate
payee provided by the approved domestic relations order to the extent
provided by the laws of the Commonwealth of Pennsylvania. In no event
shall a domestic relations order be approved which expands the rights
and benefits otherwise available under this article.
A.
Disability retirement. A participant who shall incur a total and
permanent disability before attaining normal retirement age shall
be entitled to a disability retirement benefit as of the disability
date.
B.
Disability retirement benefit. A participant who retires due to a total and permanent disability pursuant to § 77-5A shall be eligible for a disability retirement benefit in an amount equal to 50% of the participant's final monthly average salary determined as of the disability date. However, the disability benefit shall be no less than 50% of the member's salary at the time the disability was incurred, as defined pursuant to § 77-1, determined as of the disability date. Any member who received benefits for the same injuries under social security disability shall have the participant's disability benefits offset or reduced by the amount of such benefits.
C.
Payment of disability benefits. Disability payments shall commence as of the first day of the month 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 thereafter receive a normal retirement benefit pursuant to § 77-4B). 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 § 77-7B 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 aggregate service as of the disability date.
D.
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.
If the plan administrator shall determine that a participant who is
totally and permanently disabled has recovered sufficiently to resume
active employment as a police officer 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.
E.
Cessation of disability. A participant who is receiving payment of
disability retirement benefits under this article 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.
A.
Death of participant. Upon the occurrence of the death of a participant, there shall be benefits payable in accord with the following subsections of this § 77-6.
B.
Survivor benefit. If a participant shall die after commencement of retirement or disability benefit payments or after becoming eligible to receive retirement benefit payments under § 77-4A and before retirement benefit payments commence, a survivor benefit shall be paid to the surviving spouse or dependent child(ren), if any, of the participant pursuant to § 77-6C in an amount equal to 50% of the benefit the participant was receiving or eligible to receive as of the date of death.
C.
Payment of survivor benefit. The survivor benefit commences as of
the first day of the month coincident with or immediately following
the date of death of the participant. The survivor benefit shall be
paid monthly to the surviving spouse of the participant, if any, until
the earlier of the date of death of the surviving spouse, or if there
is no surviving spouse, the survivor benefit shall be paid monthly
in equal shares to the surviving dependent child(ren) of the deceased
participant until attainment of age 18 or if attaining college, under
or attaining the age of 23. The shares payable to the surviving dependent
child(ren) shall be adjusted as each child ceases to be eligible to
receive a share of the benefit hereunder.
D.
Death of participant prior to retirement. If a participant shall die before payment of a benefit has commenced and without eligibility for payment of a survivor benefit under § 77-6B, the beneficiary shall be eligible to receive a distribution in an amount equal to the accumulated contributions of the participant as of the date of death hereunder; the amount of distribution of accumulated contributions shall be reduced by the amount of disability retirement benefits which have been paid hereunder.
[Amended 8-10-2020 by Ord. No. 1090]
E.
Killed in service death benefit. In the event a participant dies as a result of the performance of his duties, a survivor benefit shall be payable. A participant is presumed to be killed in service if he/she dies due to a fatal heart attack or stroke while on duty or not later than 24 hours after participating in a physical training exercise or responding to an emergency. In the event such a benefit becomes payable, the surviving spouse or dependent child(ren), if any, of the participant shall receive a benefit pursuant to § 77-6C in an amount equal to 100% of the member's salary at the time of death as defined pursuant to § 77-1. The benefit is funded directly by the Commonwealth of Pennsylvania, and the benefit is offset by any pension benefits payable and any workers' compensation that is payable. The benefit is adjusted annually for changes in the consumer price index.
A.
Rights of terminated employees. A participant who shall cease to
be an employee, except as otherwise hereinbefore provided, shall have
all interest and rights under this article limited to those contained
in the following subsections of this section.
B.
Distribution of accumulated contributions. A participant whose employment
with the employer shall terminate for any reason other than death
or total and permanent disability prior to attainment of normal retirement
age shall 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.
C.
Deferred retirement benefit. A participant who shall have completed at least 12 years of aggregate service and whose employment shall terminate for any reason other than due to death or total and permanent disability prior to attainment of normal retirement age shall be entitled to elect by filing a written notice of the intention to vest with the plan administrator within 90 days of the date employment ceases to receive a deferred retirement benefit in lieu of a distribution of accumulated contributions under § 77-7B. Such a deferred retirement benefit shall be equal to the participant's accrued benefit as of the date employment terminates and shall commence after application pursuant to § 77-4E and not earlier than the date which would be the participant's normal retirement date under the plan if the participant remained in employment until such date.
A.
Plan administrator. The plan administrator shall be the committee
or the individual appointed by the Board who 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 article. The plan administrator may delegate authority to
act on its behalf to any persons it deems appropriate. If a plan administrator
is not appointed, the Board shall be the plan administrator.
B.
Police Pension Plan Committee. The Board may appoint a Police Pension
Plan Committee to administer the affairs of the plan. The Board shall
delegate such authority as it shall deem appropriate to the Committee.
The Committee, if one is appointed, shall consist of not more than
five members, one of which shall be a representative of the Wilkins
Township Police Department, and such other members as the Board may
appoint. As currently constituted, the Committee consists of a representative
of the Wilkins Township Police Department, a retired member of the
Wilkins Police Department, the Township Manager, and two members designated
by resolution of the Board. Each member of the Committee shall serve
in that capacity until death, resignation, removal or otherwise. Each
member may resign by delivering written notice to the Board and other
members of the Committee. Vacancies on the Committee shall be filled
in the same manner as the position was originally filled by the Board;
provided, however, that the remaining members of the Committee shall
have full power to act pending the filling of such vacancies.
C.
Authority and duties of the plan administrator.
(1)
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 Board'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 article;
(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
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 plan 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; and
(2)
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 Board.
D.
Police Pension Plan Committee organization. The Committee may organize
itself in any manner deemed appropriate to effectuate its purposes
hereunder, provided that it shall operate and act by a majority of
its members at the time in office either by vote at a meeting or in
writing without a meeting. The Committee shall appoint a Chairman,
a Secretary who may, but need not, be a Committee member, and such
other agents as it may deem advisable. The Committee may authorize
any one 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 Board, in writing, of each
such member so authorized; however, if no such member is so authorized,
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 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. The Committee shall meet
at least one time in each plan year, and it 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, reports
or documents as may be required to be filed with any governmental
agency or department and with the participants or other persons entitled
to benefits under the plan.
E.
Plan administrator costs. The plan administrator shall serve without
compensation for services unless otherwise agreed by the Board in
writing. All reasonable expenses incident to the functioning of the
plan administrator, 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 Board
to the extent permitted under applicable law and not otherwise paid
by the employer.
F.
Hold harmless. No member of the Board, 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 article.
To the extent permitted by law, the employer shall, and hereby does
agree to, indemnify and hold harmless the plan administrator and each
successor and each of any such individual's heirs, executors
and administrators, and the 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 plan administrator, 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.
G.
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.
H.
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.
(1)
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.
(2)
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 i) the specific plan provisions on which the denial
is based, ii) 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 iii) an explanation of the
review procedure.
(3)
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Board of the initial
determination. Such request for review must be made by notice to the
Board 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 Board shall, within 60 days after receipt
of the notice requesting such review (or in special circumstances,
such as where the Board in its sole discretion holds a hearing, within
120 days of receipt of such notice), submit its decision in writing
to the person or persons whose claim has been denied. The decision
shall be final, conclusive and binding on all parties, 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.
(4)
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.
(5)
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.
(6)
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 § 77-8H of the plan has been exhausted.
A.
Operation of the Pension Fund.
(1)
The Board is hereby authorized to hold and supervise the investment
of the assets of the Pension Fund, subject to the provisions of the
laws of the commonwealth and of this article and any amendment thereto.
(2)
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.
(3)
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 or investment
manager, at its sole discretion.
B.
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.
(1)
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.
(2)
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
in accordance with Chapter 73 of the Pennsylvania Decedents, Estates
and Fiduciaries Investment Code, or as the same may be subsequently
modified or amended.[1]
[1]
Editor's Note: See 20 Pa.C.S.A. § 7301 et seq.
(3)
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.
(4)
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.
(5)
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)
To exercise all voting rights with respect to property held in the
fund and in connection therewith to grant proxies, discretionary or
otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this article 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.
(8)
In addition to the foregoing powers, the employer shall also have
all of the powers, rights, and privileges conferred upon trustees
by Chapter 73 of the Pennsylvania Decedents, Estates and Fiduciaries
Code, 20 Pa.C.S.A. §§ 7301 through 7319, 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.
(9)
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.
(10)
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.
(11)
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.
(12)
To compromise, contest, arbitrate, enforce or abandon claims and
demands with respect to the plan.
(13)
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.
(14)
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.
(15)
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.
(16)
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.
C.
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.
D.
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
its 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 be reimbursed
for the payment thereof, from the Pension Fund.
E.
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.
F.
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.
A.
Amendment of the plan. The employer may amend this article 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 Board;
provided, however:
(1)
That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which each is
entitled under this article with respect to contributions previously
made;
B.
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.
C.
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.
D.
Distribution upon termination.
(1)
In the event of the termination of the plan or complete discontinuance
of contributions, all benefits accrued by the affected participants
as of the date of such termination or complete discontinuance of contributions,
to the extent funded on such date, shall be nonforfeitable hereunder.
In the event of termination of the plan, the employer shall direct
either a) that the plan administrator continue to hold the funded
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 or complete discontinuance
of contributions 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 funded accrued
benefit.
(2)
If there are insufficient assets in the Pension Fund to provide for
all accrued benefits as of the date of plan termination or complete
discontinuance of contributions, priority shall first be given to
the distribution of any amounts attributable to mandatory or voluntary
employee contributions before assets are applied to the distribution
of any accrued benefits attributable to other sources hereunder.
(3)
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.
E.
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, such residual assets remaining 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.
F.
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.
A.
Actuarial valuations.
(2)
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.
(3)
Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in the Act.
(4)
The expenses attributable to the preparation of any actuarial valuation
report or 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:
(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; and
(e)
Legitimate travel and education expenses for 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 plan; and further provided, that the plan administrator shall
document all such expenses item by item and, where necessary, hour
by hour.
B.
Duties of chief administrative officer. Such actuarial reports shall
be prepared and filed under the supervision of the chief administrative
officer. The chief administrative officer of the plan shall determine
the financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum 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 Board annually and shall certify the accuracy of such
calculations and their conformance with the Act.
C.
Benefit plan modifications. Prior to the adoption of any benefit
plan modification by the employer, the chief administrative officer
of the plan shall provide to the Board a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Board 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.
A.
Employment rights. 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 article except those expressly granted hereunder.
Participation in this plan shall not give any right to any employee
to be retained in the employ of the employer, nor shall interfere
with the right of the employer to discharge any employee and to deal
with such employee without regard to the effect such treatment might
have upon participation in this plan.
B.
Meaning of certain words. For purposes of this article, the masculine
gender shall include the feminine gender and the singular shall include
the plural, and vice versa, in all cases wherever the person or context
shall plainly so require. Headings of sections and subsections are
inserted only for convenience of reference and are not to be considered
in the construction of the plan.
C.
Information to be furnished by the employer. The employer shall furnish
to the plan administrator (and where applicable, the trustee) information
in the employer's possession as the plan administrator and the
trustee shall require from time to time to perform their duties under
the plan.
D.
Severability of provisions. Should any provisions of this article
be held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this article, and the plan
shall be construed and enforced as if said illegal and invalid provisions
had never been inserted herein.
E.
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 the participant
and that no guardian or committee has been appointed for the participant,
may provide for such payment of pension benefits hereunder to such
person or institution so maintaining the participant, and any such
payments so made shall be deemed for every purpose to have been made
to such participant.
F.
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.
G.
Benefits for a deceased participant. If any benefit shall be payable
under the plan to or on behalf of a participant who has died, if the
plan provides that the payment of such benefits shall be made to the
participant's estate, and if no administration of such participant's
estate is pending in the court of proper jurisdiction, then the plan
administrator, at its sole option, may pay such benefits to the surviving
spouse of such deceased participant, or, if there is no surviving
spouse, to such participant's then living issue, per stirpes;
provided, however, that nothing contained herein shall prevent the
plan administrator from insisting upon the commencement of estate
administration proceedings and the delivery of any such benefits to
a duly appointed executor or administrator.
H.
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.
I.
Personal liability. Subject to the provisions of the Act and unless
otherwise specifically required by other applicable laws, no past,
present or future officer or agent of the employer or plan administrator
shall be personally liable to any participant, beneficiary or other
person under any provision of the plan.
J.
Construction of document. This article 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.
[Adopted 7-29-2002 by Ord. No. 944[1] (Ch. 45, Art. II, of the 1998 Township Code); amended
in its entirety 5-9-2022 by Ord. No. 1106]
[1]
Editor's Note: This ordinance also repealed former Article
II, Nonuniformed Employees Pension Plan, adopted 3-18-1991 by Ord.
No. 808, as amended.
Wilkins Township (the "Township"), having established a nonuniform
pension plan administered by the Pennsylvania Municipal Retirement
System (the "system"), hereby elects to amend its Nonuniform Pension
Plan administered by the system in accordance with Article IV of the
Pennsylvania Municipal Retirement Law, 53 P.S. § 881.101
et seq. ("Retirement Law"), and does hereby agree to be bound by all
the requirements and provisions of the Retirement Law and the Municipal
Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101
et seq., and to assume all obligations, financial and otherwise, placed
upon member municipalities.
As part of this article, the Township agrees that the system
shall administer and provide the benefits set forth in the amended
Nonuniform Pension Plan document entered into between the Pennsylvania
Municipal Retirement Board and the Township effective as of the date
specified in the adoption agreement (the contract).
The Township acknowledges that by passage and adoption of this
article, the Township officially accepts the contract and the financial
obligations resulting from the administration of the contract.
Payment for any obligation established by the adoption of this
article and the contract shall be made by the Township in accordance
with the Retirement Law and the Municipal Pension Plan Funding Standard
and Recovery Act. The Township hereby assumes all liability for any
unfundedness created due to the benefit structure set forth in the
contract.
The Township intends this article to be the complete authorization
of the contract, as amended, and it shall become effective as of the
date specified in the adoption agreement, which is the effective date
of the contract, as amended.
A duly certified copy of this article and an executed contract
shall be filed with the system.
