The following terms shall be defined as set forth below, provided
that each term defined in the PMRL shall have the meaning set forth
therein and shall be interpreted consistent with its definition under
the PMRL.
ACCUMULATED DEDUCTIONS
The total amount deducted from the compensation of the member
as set forth in this contract and paid over by the City or paid by
the member or from any existing pension or retirement system directly
into the fund and credited to the member's account, together
with regular interest thereon, unless interest is specifically excluded
in this contract.
ACTIVE MEMBER
A member who is earning credited service under this contract
as a result of employment with a City.
ACTUARIALLY EQUIVALENT
Annuities or lump sum amounts of equal present value determined
by appropriate actuarial factors based on mortality tables and interest
rates currently adopted and used by the Board.
ACTUARY
A.
A member of the American Academy of Actuaries;
B.
An individual who has demonstrated to the satisfaction of the
Insurance Commissioner of Pennsylvania that he or she has the educational
background necessary for the practice of actuarial science and has
had at least seven years of actuarial experience; or
C.
A firm, partnership or corporation of which one or more members meets the requirements of Subsection
A or
B above.
ALTERNATE PAYEE
Any spouse, former spouse, child or dependent of a member
who is recognized by an approved domestic relations order as having
a right to receive all or a portion of the monies payable to that
member.
ANNUITANT
Any member on or after the effective date of retirement until
the member's annuity is terminated.
BASIC BENEFIT
The member's accrued retirement benefit as calculated pursuant to Article
VI, Section 6.1.
BENEFICIARY
The person or persons last designated in writing to the Board
by a member or an annuitant, or if one is not so designated, the estate
or next of kin under 20 Pa.C.S.A. § 3101 (relating to payments
to family and funeral directors), to the extent applicable, to receive
any death benefit after the death of such member or annuitant.
BOARD
The Pennsylvania Municipal Retirement Board.
COMPENSATION
A.
Remuneration actually received for services rendered as a member
including salary, overtime, longevity and shift differential payments,
but excluding reimbursement for expenses incidental to employment.
Payments received under the Act of June 2, 1915 (P.L. 736, No. 338),
known as "the Pennsylvania Workmen's Compensation Act" shall not be included in compensation. Compensation shall
be adjusted as appropriate to comply with the terms of the PMRL and
this contract. For members who are enrolled in a plan that has adopted
the provisions of IRC Section 414(h), compensation shall also include
any such pickup contributions so designated.
B.
Notwithstanding any provision to the contrary, a member's
compensation shall not exceed the limitations under the IRC Section
401(a)(17) as adjusted in accordance with IRC Section 401(a)(17)(B).
The adjustment in effect for a calendar year applies to any period,
not exceeding 12 months, over which compensation is determined (the
"determination period") beginning in such calendar year. If a determination
period consists of fewer than 12 months, the compensation limit will
be multiplied by a fraction, the numerator of which is the number
of months in the determination period, and the denominator of which
is 12. The OBRA '93 annual compensation limit is $150,000, as
adjusted by the Commissioner of Internal Revenue for increases in
the cost of living in accordance with IRC Section 401(a)(17)(B). Effective
for calendar years beginning on and after January 1, 2002, the compensation
limit shall be $170,000 as adjusted. Effective for calendar years
beginning on and after January 1, 2003, compensation limit shall be
$200,000. The cost-of-living adjustment in effect for a calendar year
applied to any period, not exceeding 12 months, over which compensation
is determined (the "determination period") beginning in such calendar
year. If a determination period consists of fewer than 12 months,
the compensation limit will be multiplied by a fraction, the numerator
of which is the number of months in the determination period, and
the denominator of which is 12.
CONTRACT or PLAN
The agreement between the Board and the City providing for
retirement benefits to the members employed by the City.
CREDITED SERVICE
An increment of service by a member to a City as determined
under the following terms:
A.
Credited service shall begin to accrue as of the member's
date of enrollment in the system.
B.
The member's date of enrollment in the system shall be
the date the City entered into the system or the member's date
of hire, whichever is more recent.
C.
A member who elects to receive a superannuation retirement benefit
or early retirement benefit may elect with the City at the time of
retirement to receive additional credited service for unused accrued
sick leave; provided, however, that for every five whole days of unused
accrued sick leave, the member will receive seven days of credited
service. Such additional credited service shall not affect the member's
effective date of retirement but will only be used to calculate the
member's basic benefit. The City shall provide certification
to the Board of the amount of additional credited service the member
is entitled to receive together with the member's filing for
retirement with the Board.
DATE OF TERMINATION OF SERVICE
For an active member, the last day of employment in a status
covered by the eligibility requirements of the contract. For an inactive
member, the date on which formal action is taken by the City to separate
the member from employment.
DISABILITY ANNUITANT
A member on or after the effective date of disability retirement
until the disability annuity is terminated.
DOMESTIC RELATIONS ORDER
Any judgment, decree or order, including approval of a property
settlement agreement, by a court of competent jurisdiction pursuant
to a domestic relations law which relates to the marital property
rights of the spouse or former spouse of a member, including the right
to receive all or a portion of the monies payable to that member under
the system in furtherance of the equitable distribution of marital
assets. The term includes orders of support as that term is defined
by 23 Pa.C.S.A. § 4302 (relating to definitions) and orders
for the enforcement of arrearages as provided by 23 Pa.C.S.A. § 3703
(relating to enforcement of arrearages).
EARLY RETIREMENT BENEFIT
The member's basic benefit adjusted for commencement
upon early retirement as may be provided as follows:
A.
Due to member demographics, not applicable for Plan A members.
B.
A Plan B member who terminates service after 10 years of credited
service and who has attained at least 55 years of age may apply for
an early retirement benefit. The early retirement benefit under this
subsection will be actuarially reduced for each year or partial year
thereof prior to superannuation retirement age for Plan B members
that early retirement takes place.
EFFECTIVE DATE OF DISABILITY RETIREMENT
The date following the last day for which compensation was
paid or the date on which the member filed an effective application
for disability benefits, whichever is later.
EFFECTIVE DATE OF RETIREMENT
One of the following:
A.
For a member who files an application for an annuity within
90 days after the date of termination of service, the later of:
(1)
The first day following the date of termination of service;
or
(2)
The date specified on the application.
B.
For a member who does not file an application for an annuity
within 90 days after the date of termination of service, the later
of:
(1)
The date the application is filed; or
(2)
The date specified on the application.
C.
For a member who applies for a disability retirement, the date
certified by the Board as the effective date of disability retirement.
ELIGIBLE RETIREMENT PLAN
Any of the following:
A.
An individual retirement account described in IRC Section 408(a);
B.
An individual retirement annuity described in IRC Section 408(b);
C.
An annuity plan described in IRC Section 403(a);
D.
A qualified trust described in IRC Section 401(a);
E.
An annuity contract described in IRC § 403(b); and
F.
An eligible plan under IRC Section 457(b) which is maintained
by a state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state, and which accepts
the member's eligible rollover distribution. However, in the
case of an eligible rollover distribution to the nonspousal beneficiary
of a member, an eligible retirement plan is an individual retirement
account or individual retirement annuity.
ELIGIBLE ROLLOVER DISTRIBUTION
Any distribution of all or any portion of the balance of
a qualified plan described in IRC Section 401(a) or 403(a), an annuity
described in IRC Section 403(b), or an eligible deferred compensation
plan described in IRC Section 457(b) which is maintained by a state,
political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state. The above notwithstanding,
an eligible rollover distribution does not include:
A.
Any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the
life (or life expectancy) of the member or the joint lives (or joint
life expectancies) of the member and the member's beneficiary,
or for a specified period of 10 years or more;
B.
Any distribution to the extent such distribution is required
under IRC Section 401(a)(9); and
C.
The portion of any distribution which consists of after-tax
employee contributions.
EQUIVALENT ACTUARIAL VALUE
Benefits which have equal present value when computed on
the basis of interest and the mortality tables adopted by the Board
and in use at the date the benefit becomes effective.
EXCESS INTEREST
The investment earnings on the fund in excess of that required
for allocation to regular interest and expenses.
FINAL SALARY
For Plan A members the annualized compensation rate at the
time of retirement, or the average annual compensation earned and
paid during the member's highest consecutive five years of credited
service, whichever is higher; and for Plan B members the average annual
compensation earned and paid during the Plan B member's highest
consecutive three years of credited service or if not so long employed,
then the average annual compensation earned and paid during the whole
period of such employment.
FUND
The Pennsylvania Municipal Retirement Fund.
INACTIVE MEMBER
A member who is enrolled in the system but is no longer earning
credited service under this contract as a result of separation from
or leave from employment with a City.
IRC
The Internal Revenue Code of 1986, as designated and referred
to in the Federal Tax Reform Act of 1986 (Public Law 99-514) as amended.
A reference to "IRC Section _____" shall be deemed to refer to the
identically numbered section and subsection or other subdivision of
such section in 26 U.S.C. (relating to Internal Revenue Code), as
such identically numbered section may be amended.
MEMBER
An elected official or municipal employee who meets the eligibility requirements of §
2-705.13 or
2-705.14 and is paid on a regular salary or per diem basis. The term shall not include elected officials and employees paid wholly on a fee basis. The term shall include, collectively, Plan A members and Plan B members unless otherwise stated.
MEMBER'S ACCOUNT
The account to which shall be credited any accumulated deductions,
municipal contributions made on behalf of the member and excess interest.
MEMBER'S ANNUITY
That portion or component of the basic benefit which is of
equivalent actuarial value, at date of retirement, to the accumulated
deductions of the member.
MUNICIPAL ACCOUNT
The account maintained for the City, to which shall be credited
the contributions made by it toward the benefits of the members under
the system.
ORIGINAL MEMBER
A member who was employed by the City as of the date the
City joined the system.
PENNSYLVANIA MUNICIPAL RETIREMENT LAW
53 P.S. § 881.101 et seq. A reference to "PMRL
Section _____" shall be deemed to refer to the identically numbered
subsection of 53 P.S. § 881 as may be amended.
PLAN B MEMBER
A member who was hired on or after December 30, 1974, or
a member who was employed prior to December 30, 1974, and elected
to become a Plan B member in accordance with Ordinance No. 35 of 1984.
PMRL
See the Pennsylvania Municipal Retirement Law.
POLICY STATEMENT
A statement of rule adopted by the Board as provided in Article
XIII, Section 13.3, and as authorized by PMRL Section 104(10).
PRIOR SERVICE
All service as an original member completed at the time the
City elected to join the system.
REGULAR INTEREST
The rate fixed by the Board, from time to time, on the basis
of earnings on investments to be applied to the member's accounts,
municipal accounts and the retired member's reserve account.
SERVICE-CONNECTED DISABILITY
Total and permanent disability of a member resulting from
a condition arising out of and incurred in the course of employment,
and which is compensable under the applicable provisions of the Act
of June 2, 1915 (P.L. 736, No. 338), known as "the Pennsylvania Workmen's
Compensation Act," or the act of June 21, 1939 (P.L. 566, No. 284), known
as "the Pennsylvania Occupational Disease Act."
SUPERANNUATION RETIREMENT AGE
One of the following:
A.
A Plan A member shall be eligible for a superannuation retirement
benefit upon attainment of superannuation retirement age, which shall
be:
(1)
Sixty years of age; provided the Plan A member has completed
20 years of credited service; or
(2)
If involuntarily terminated, 55 years of age; provided the Plan
A member has completed 20 years of credited service.
B.
A Plan B member shall be eligible for a superannuation retirement
benefit upon attainment of superannuation retirement age, which shall
be 65 years of age.
C.
Retirement window: Effective through December 31, 2014, a member,
who by December 31, 2013, has attained an age, which when added to
the member's number of completed years of credited service, is
equal to or greater than the number 85, shall be eligible for a superannuation
retirement benefit.
D.
Retirement window: Effective through December 31, 2018, a member,
who by December 31, 2018, has attained an age, which when added to
the member's number of completed years of credited service, is
equal to or greater than the number 80, shall be eligible for a superannuation
retirement benefit.
SURVIVOR ANNUITANT
Any person who has been named by a member under a joint and
survivor annuity option to receive an annuity upon the death of such
member.
SYSTEM
The Pennsylvania Municipal Retirement System, a multiple
employer retirement system created pursuant to the PMRL.
USERRA
The federal Uniformed Services Employment and Reemployment
Rights Act of 1994 (Pub. L. 101-353, 38 U.S.C. § 4303 et
seq.).
VESTED MEMBER
A member after a stipulated age or with sufficient years
of service, or both, as set forth [in] below who has terminated service
with the City and has elected to leave total accumulated deductions
in the fund and to defer receipt of a basic benefit, provided the
election is made within 90 days after the date of termination of service:
A.
A Plan A member shall vest upon the completion of 20 years of
credited service provided the Plan A member files an application to
vest with the Board within 90 days of the member's date of termination
of service. A Plan A member who vests under this subsection shall
receive a superannuation retirement benefit upon attainment of 60
years of age.
B.
A Plan B member shall vest upon the completion of 10 years of
credited service provided the member files an application to vest
with the Board within 90 days of the member's date of termination
of service. A Plan B member who vests under this subsection shall
be entitled to a superannuation retirement benefit upon attainment
of superannuation retirement age or an early retirement benefit upon
attainment of 55 years of age that is actuarially reduced for each
year or partial year thereof prior to superannuation retirement age.
C.
In the event that a member fails to file within 90 days of the
member's date of termination of service, the member shall be
deemed ineligible for a vested benefit. The amount payable to the
member shall be the accumulated deductions and the member's excess
investment account standing to the credit of the member as of the
date of termination of service.
The City hereby elects to join the Pennsylvania Municipal Retirement
System, established by the Pennsylvania Municipal Retirement Law,
Act 15 of 1974, as amended.The City hereby agrees to be bound by all the requirements
and provisions of the Pennsylvania Municipal Retirement Law, the amendments
thereto, regulations promulgated by the Pennsylvania Municipal Retirement
Board, and the terms and conditions of the enrollment contract. The
enrollment contract sets forth the benefits and obligations of the
City employees, the City and the Pennsylvania Municipal Retirement
Board vis-a-vis the pension plans hereby elected by the City. The
City hereby assumes all obligations, financial and otherwise, placed
upon member municipalities by the Pennsylvania Municipal Retirement
Law, the amendments thereto, regulations promulgated thereunder, and
the terms of the enrollment contract.
Plan B (non-uniformed) is hereby repealed.
All municipal employees of the City who were enrolled in Plan
B are hereby enrolled in the Pennsylvania Municipal Retirement System,
with the obligations and benefits set forth in the enrollment contract,
the Pennsylvania Municipal Retirement Law, the amendments thereto,
and the regulations promulgated thereunder.
Pursuant to the terms and conditions of the enrollment contract,
the City hereby transfers all assets of Plan B, including contributions
made by the members, to the Pennsylvania Municipal Retirement System
to be placed in the advance payment account established by the Board.
Such transfer shall be effective September 1, 1984.
The City hereby transfers the administration of all benefits
of all members and beneficiaries of Plan A receiving benefits as of
August 31, 1984, to the Pennsylvania Municipal Retirement Board, pursuant
to the terms and conditions of the enrollment contract. The City hereby
transfers all of the assets set aside as an actuarial reserve of these
members into the advance payment account established pursuant to the
enrollment contract. Pensioners or their successors receiving benefits
as of August 31, 1984, shall not be considered members of the Pennsylvania
Municipal Retirement System.
On January 1, 1987, all municipal employees of the City who
are enrolled in Plan A hereby shall be enrolled in the Pennsylvania
Municipal Retirement System, with the obligations and benefits set
forth in the enrollment contract, the Pennsylvania Municipal Retirement
Law, the amendments thereto, and the regulations promulgated thereunder.
Pursuant to the enrollment contract, the City hereby transfers
all assets of Plan A as of January 1, 1987, to the Pennsylvania Municipal
Retirement System to be placed in the advance payment account established
by the Board.
Pursuant to the enrollment contract, the City hereby transfers,
as of January 1, 1987, the administration of benefits of all members
of Plan A or their beneficiaries who first began receiving payment
between September 1, 1984, and December 31, 1986, inclusive, and all
vested members of Plan A who have terminated employment with the City
without receiving benefits, to the Board. The City shall also transfer
all of the assets set aside as an actuarial reserve of these annuitants,
beneficiaries and vested members into the advance payment account
established pursuant to the enrollment contract. Such annuitants,
vestees and beneficiaries shall not be enrolled in the Pennsylvania
Municipal Retirement System.
The City guarantees payment of all benefits which may be payable
under this chapter, the enrollment contract, Plan A or Plan B.
This chapter electing membership for the City in the Pennsylvania
Municipal Retirement System shall be effective September 1, 1984,
and shall be filed with the Board.
Membership for non-uniform full-time employees of the City is
mandatory.
Membership for seasonal employees and temporary employees is
prohibited, as is membership for individuals paid only on a fee basis.
An original member shall be granted credited service for prior
service from the date of hire, except for members who were hired prior
to December 30, 1974, and elected Plan B benefits in accordance with
Ordinance No. 35 of 1984, who shall not be granted credited service
for prior service.
If a former member of the City returns to service with the City and becomes a member, the member may restore to the fund the amounts refunded under §
2-705.32. The member's annuity rights shall be restored as they existed at the time of separation from service provided the member pays the amount due plus regular interest up to the date of purchase in a lump sum within 30 days after billing, or through salary deductions amortized with regular interest through a repayment period of not more than five years.
When a member leaves the employ of the City and enters within
one year of separation into the employ of another municipality that
has joined the system, the member's service credits shall remain
unimpaired. Should a member from the employ of another municipality
that has joined the system separate from service and within one year
of separation be employed by the City and qualify for membership under
this chapter, the member's service credits will remain unimpaired.
In such cases, the municipal liability for past service shall be prorated
by the system between the municipalities on an equitable basis.
An annual excess interest benefit shall be equal to a single
life annuity starting on the effective date of retirement with a present
value equal to the member's excess investment account.
In addition to the basic benefit, an annuitant who was a Plan A member and who is certified by the City as eligible to receive a service increment shall receive a yearly service increment to be determined by computing the number of whole years of credited service beyond 20 years and multiplying this number by an amount equal to 1.5% of the member's final salary provided such annuitant made the required contributions set forth in §
2-705.41A(4).
Not available at this time.
There shall be an offset to the basic benefit equal to 40% of
the primary insurance amount of full social security benefits paid
or payable to an annuitant who was a Plan A member and who is classified
by the City as a joint coverage member as per the Social Security
Act, 42 U.S.C. § 301 et seq., subject to the following provisions:
A. Upon attainment of the age at which full social security benefits
are payable or upon retirement of the Plan A member after attaining
such age, the Plan A member's eligibility to the old age insurance
benefits and the primary insurance amount of social security, upon
which the reduction in the benefits shall be based, shall be computed
by the Board in the manner specified in the federal Social Security
Act, except that in determining such eligibility and such amount,
only compensation for services performed in the employ of the City
shall be included.
B. Once the amount of the reduction from the basic benefit has been
determined, it shall remain fixed, except that any decrease in the
primary amount paid under the Social Security Act shall result in
a corresponding decrease in the amount of the reduction of the basic
benefit.
C. The total sum, including social security benefits, to be received
upon retirement by the Plan A member shall not be less than the benefits
that would be paid by the system in absence of the social security
benefits reduction.
D. The reduction shall not apply to a disability annuitant or an annuitant
who was a Plan B member.
A member who terminates service may elect to receive the accumulated deductions and the member's excess investment account standing to the credit of the member as of the date of termination of service, in lieu of receipt of a benefit provided under §§
2-705.16 to
2-705.22.
In no event may a member or beneficiary be entitled to a form
of payment which commences or is payable over a period which fails
to satisfy the required distribution provisions of IRC Section 401(a)(9),
including the incidental benefit distribution requirements. The Board
shall adopt procedures as necessary to comply with IRC Section 401(a)(9)
and Treasury regulations thereunder as applicable to governmental
plans.
Notwithstanding any other provision, a member, a member's surviving spouse or a member's former spouse who is an alternate payee under an approved domestic relations order pursuant to §
2-705.45 may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan utilizing a direct rollover.
When filing an application under this part, one of the options provided in §
2-705.33 may be elected. The application shall be held by the Board until: 1) a later application for a retirement is filed; or 2) the death of the active member or vested member prior to the effective date of retirement.
The basic benefit, accumulated deductions and the moneys in
the fund shall be exempt from any state or municipal tax. Further,
these monies shall not be subject to attachment or execution and shall
not be the subject of assignment or transfer except to a duly designated
beneficiary.
Rights under this contract shall be subject to attachment in
favor of an alternate payee as set forth in an approved domestic relations
order.
The Board shall withhold medical premium payments from annuitants'
and survivor annuitants' monthly payments as directed by the
City. Such withheld premiums shall be forwarded to the City on a monthly
basis.
The Pennsylvania Municipal Retirement Fund shall consist of
contributions by municipalities from payroll deductions, from other
contributions made by members through the employing municipality to
the system, transfers made from municipal retirement or pension systems
and investment earnings.
The Board shall keep separate accounts for each municipality,
except the total disability reserve account and the retired member's
reserve account which shall be maintained as pooled accounts. The
City and the members shall be liable to the Board for the amount of
contributions required to cover the cost of the basic benefit and
other benefits payable to such members.
Upon the granting of a disability retirement, there shall be
transferred to the retired member's reserve account the amount
of the disability annuitant's member's account, together
with an amount from the municipal account to equal the amount of the
equivalent actuarial value of the basic benefit, and such additional
amount from the total disability reserve account as may be needed
to provide the actuarial equivalent of the disability retirement to
which the disability annuitant is entitled.
Upon the granting of a basic benefit, there shall be transferred to the retired member's reserve account the amount of the member's account, plus an amount from the municipal account such that the sum will equal the equivalent actuarial value to the annuity provided in §
2-705.33A.
The regular interest charges payable and the creation and maintenance
of the necessary reserves for the payment of the benefits, as to the
City and its members are hereby made the obligation of the City in
accordance with PMRL Section 111 and shall not otherwise attach to
those assets of the fund attributable to any other municipality and
its members.
The fund is a trust, and the assets of the system are held in
trust. No part of the assets of the system shall be used for or diverted
to purposes other than for the exclusive benefit of the members, their
survivor annuitant or beneficiaries prior to the satisfaction of all
liabilities of the system with respect to them. The assets of the
fund shall be used only to pay:
A. Benefits to members in accordance with the PMRL and this contract;
and
B. Necessary and appropriate expenses of the system.
All moneys and securities in the fund shall be placed in the
custody of the State Treasurer as is required by PMRL Section 109.
The members of the Board shall be trustees of the fund, and
shall have the exclusive management of said fund, with full power
to invest the moneys therein, subject to the terms, conditions, limitations
and restrictions imposed by law upon fiduciaries. The Board shall
have power to hold, purchase, sell, assign, transfer and dispose of
any securities and investments in said fund, as well as the proceeds
of such investments, and of the money belonging to such fund.
The Board shall annually allocate regular interest to the credit
of each member's account, municipal account, and the retired
member's reserve account.
Except for the accounts of vestees or when a member transfers
membership due to portability, no interest or excess interest shall
be credited to a member's account after termination of employment
with the City that entitles him or her to membership in the system
under this chapter.
In the administration of the system the Board has the exclusive
authority under the PMRL to:
A. Contract for professional services, including but not limited to
actuarial, investment and medical as it deems advisable;
B. Keep in convenient form such data as shall be deemed necessary for
actuarial valuation purposes;
C. From time to time, through its actuary, make an actuarial investigation
into the mortality and service experience of the members and annuitants
and of the various accounts created by the PMRL;
D. Adopt for the system one or more mortality tables and such other
tables as shall be deemed necessary;
E. Certify annually the amount of appropriation which the City shall
pay into the fund, which amounts shall be based on estimates furnished
by the actuary;
F. Prepare and distribute annual statements of accounts to each of the
active members, showing the contributions made during the year, the
interest earned and the total balance standing in the member's
account at the end of the year;
G. Perform such other functions as are required for the execution of
the PMRL and of any other federal and state law and to administer
and interpret this contract to ensure that the system is maintained
as tax qualified under the IRC.
The Board retains the right to correct any errors in collection
of contributions or payments of benefits and awarding of service credits
or amount credited to the accumulated deduction accounts, excess interest
accounts or other accounts, whether caused by mistake of fact or law,
regardless of the fault or lack thereof of the members, the City or
the Board, or whether the errors were made under this chapter or Plan
A or Plan B prior to enrollment in the system.