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A cafeteria plan (excludable under IRC Section 125 and as provided
in Section 1208.a(5)(c));
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A tax sheltered annuity (excludable under IRC Section 403(b));
A deferred compensation plan (excludable under IRC Section 457); or
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A IRC Section 132(f)(4) qualified transportation fringe benefit
plan.
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Any reference in this plan to compensation shall be a reference
to the definition in this § 1-1202.c, unless the plan reference
specifies a modification to this definition. The plan administrator
shall take into account only compensation actually paid by the employer
for the relevant period. A compensation payment includes compensation
by the employer through another person under the common paymaster
provisions in IRC sections 3121 and 3306. Compensation from a related
employer that is not a participating employer under this plan shall
be excluded.
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Unused vacation, personal days, and sick pay paid on account
of termination of employment.
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Any lump sum payment made upon termination of employment.
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Individuals not directly employed by the employer as defined
in § 1-1202.f. An employee of an entity that is not a participating
employer in this plan shall not participate in this plan.
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Employees employed as police officers.
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Individuals who are hired full-time by the Borough of State
College on or after January 1, 2011.
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Notwithstanding the above, for purposes of this Plan, employees
of the Centre Region Council of Governments shall be considered to
be employees of the employer.
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Individuals who are hired full-time by the Centre Region Council
of Governments on or after February 1, 2013.
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Separated from service on the date of death (or on the date
of separation from service, if earlier),
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Been vested strictly in accordance with the vesting schedule,
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Survived to the earliest retirement date,
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Retired with an immediate joint and 50% survivor annuity at
the earliest retirement date, and
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Died on the day after the earliest retirement date.
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For purposes of the preceding sentence, a surviving spouse shall
begin to receive payments at the participant's earliest retirement
date unless such surviving spouse elects a later date. Benefits commencing
after the earliest retirement date will be the actuarial equivalent
of the benefit to which the surviving spouse would have been entitled
if benefits had commenced at the participant's earliest retirement
date under an immediate joint and 50% survivor annuity using the interest
rate and mortality table set forth in § 1-1202.b(2)(c).
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In determining this benefit, the employee-provided accrued benefit
is 100% vested. If the surviving spouse dies before the plan has commenced
distribution or before the pension payments made to the surviving
spouse equal the present value of the spouse's portion of the accumulated
contributions as described in § 1-1207.b as of the annuity
starting date, the excess over the payments made shall be payable
to the surviving spouse's estate.
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The survivor benefit set forth above shall not be payable unless
the participant and spouse have been married throughout the one-year
period ending on the date of the participant's death. The participant's
spouse cannot waive receipt of this benefit to the extent that this
benefit is an employer-provided accrued benefit. To the extent that
this benefit is an employee-provided benefit under Section 1207.b,
the participant may designate another beneficiary in accordance with
the provisions of § 1-1208.b and § 1-1205.a(3).
This benefit shall be paid in one lump sum if the actuarially equivalent
present value of the benefit is equal to $5,000 or less. Distributions
in excess of $1,000 will only be made with the consent of the participant's
spouse before the date a distribution is required under § 1-1208.b.
If the distribution is $1,000 or less, the benefit will automatically
be paid in a lump sum following the distribution election period.
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If there is an acceptable domestic relations order in force
with respect to the participant, the alternate payee shall be treated
as the surviving spouse to the extent provided in the order. However,
no order shall be accepted if it provides that the alternate payee
shall be the surviving spouse with respect to benefits accrued as
a result of years of benefit service credited after the termination
of the marriage.
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Years of Service
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Vesting Percentage
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0-4 Years
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0%
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5 or More Years
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100%
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Number of months in the short limitation year
12
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1.
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Limitation years beginning before July 1, 2007. If
the annuity starting date for the participant's benefit is after age
65 and occurs in a limitation year beginning before July 1, 2007,
the defined benefit dollar limitation for the participant's annuity
starting date is the annual amount of a benefit payable in the form
of a straight life annuity commencing at the participant's annuity
starting date that is the actuarial equivalent of the defined benefit
dollar limitation (adjusted under § 1-1208.a(5)(j)(i) for
years of participation less than 10, if required) with actuarial equivalence
computed using whichever of the following produces the smaller annual
amount: (1) the interest rate and the mortality table (or other tabular
factor) specified in § 1-1202.b(2) for a late retirement
benefit; or (2) a 5% interest rate assumption and the applicable mortality
table as defined in § 1-1202.b(3).
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2.
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Limitation years after July 1, 2007.
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a.
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Plan does not have immediately commencing straight
life annuity payable at both age 65 and the age of benefit commencement.
If the annuity starting date for the participant's benefit is after
age 65 and occurs in a limitation year beginning on or after July
1, 2007, and the plan does not have an immediately commencing straight
life annuity payable at both age 65 and the age of benefit commencement,
the defined benefit dollar limitation at the participant's annuity
starting date is the annual amount of a benefit payable in the form
of a straight life annuity commencing at the participant's annuity
starting date that is the actuarial equivalent of the defined benefit
dollar limitation (adjusted under § 1-1208.a(5)(j)(i) for
years of participation less than 10, if required), with actuarial
equivalence computed using a 5% interest rate assumption and the applicable
mortality table for that annuity starting date as defined in § 1-1202.b(3)
(and expressing the participant's age based on completed calendar
months as of the annuity starting date).
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b.
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Plan has immediately commencing straight life annuity
payable at both age 65 and the age of benefit commencement. If the
annuity starting date for the participant's benefit is after age 65
and occurs in a limitation year beginning on or after July 1, 2007,
and the plan has an immediately commencing straight life annuity payable
at both age 65 and the age of benefit commencement, the defined benefit
dollar limitation at the participant's annuity starting date is the
lesser of the limitation determined under § 1-1208.a(5)(j)(ii)b.2.
and the defined benefit dollar limitation (adjusted under § 1-1208.a(5)(j)(i)
for years of participation less than 10, if required) multiplied by
the ratio of the annual amount of the adjusted immediately commencing
straight life annuity under the plan at the participant's annuity
starting date to the annual amount of the adjusted immediately commencing
straight life annuity under the plan at age 65, both determined without
applying the limitations of this section 1208.a. For this purpose,
the adjusted immediately commencing straight life annuity under the
plan at the participant's annuity starting date is the annual amount
of such annuity payable to the participant, computed disregarding
the participant's accruals after age 65 but including actuarial adjustments
even if those actuarial adjustments are used to offset accruals; and
the adjusted immediately commencing straight life annuity under the
plan at age 65 is the annual amount of such annuity that would be
payable under the plan to a hypothetical participant who is age 65
and has the same accrued benefit as the participant.
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3.
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Notwithstanding the other requirements of this § 1-1208.a(5)(j)(ii),
no adjustment shall be made to the defined benefit dollar limitation
to reflect the probability of a participant's death between the annuity
starting date and age 62, or between age 65 and the annuity starting
date, as applicable, if benefits are not forfeited upon the death
of the participant prior to the annuity starting date. To the extent
benefits are forfeited upon death before the annuity starting date,
such an adjustment shall be made. For this purpose, no forfeiture
shall be treated as occurring upon a participant's death if the plan
does not charge participants for providing a qualified preretirement
survivor annuity upon the participant's death.
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The specific reasons for denial;
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Reference to provisions on which the denial is based;
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A description of and reason for any additional information needed
to process the claim; and
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An explanation of the claims procedure.
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Request a review of the participant's case in writing to the
employer;
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Review pertinent documents;
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Submit issues and comments in writing.
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The written request for review must be submitted no later than
60 days after receiving written notification of denial of benefits.
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