[Ord. 1992-6, 12/3/1992, § 1; as amended by Ord.
2001-1, 6/7/2001, §§ 1, 2; and by Ord. 2004-04, 10/7/2004,
§ 1]
The amount of retirement benefit credited to the participant determined in accordance with § 1-601, Subsection 1, equal to the amount so computed considering the participant's average monthly compensation at the date of determination, multiplied by a fraction of which the numerator is the participant's service at the date of determination and the denominator is the service he/she would accumulate if his employment continued until his normal retirement date.
The Pennsylvania Municipal Plan Funding Standard and Recovery
Act of 1984.
Except as otherwise defined in this Part:
Any of the aggregate amounts, all equal in value, which are
expected to be received under different forms of payment computed
using the following assumptions:
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Pre and Post Retirement Mortality
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|
1971 Group Annuity Mortality Table (male rates only)
|
|
Pre and Post Retirement Interest Rate
|
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6% compounded annually
|
In the event this Part is amended, the actuarial equivalent
of a participant's accrued benefit on or after the date of change
shall be determined as the greater of the actuarial equivalent of
the participant's accrued benefit as of the date of change computed
on the old basis or the actuarial equivalent of the accrued benefit
computed on the new basis.
A plan which is being funded annually at a level not lower
than the financial requirements of the pension plan pursuant to the
Act of December 18, 1984 (P.L. 1005, No. 205), known as the "Municipal
Pension Plan Funding Standard and Recovery Act."
An actuary who is enrolled by the Joint Board for Enrollment
of Actuaries or a firm of actuaries so designated.
The age of a participant computed as of his last birthday.
January 1 of each year following the effective date of this
plan.
A temporary cessation from active employment with the employer
pursuant to an established nondiscriminatory policy whether occasioned
by illness, military service or any other reason. An authorized leave
of absence shall not cause a break in service.
The average of the compensation received by a participant
during the last thirty-six-month consecutive period prior to his retirement
date, death or termination of employment with the employer. If a participant
has less than 36 months of consecutive service on his date of termination
his average monthly compensation will be based on his monthly compensation
during his actual consecutive months of service to his date of termination.
The person or persons as provided in § 1-601, Subsection 2, to receive the benefits which are payable under the plan upon or after the death of the participant.
The governing body of the employer.
A period of severance of at least 12 consecutive months.
In the case of an individual who is absent from work for maternity
or paternity reasons the twelve-consecutive-month period beginning
on the first anniversary of the first date of such absence shall not
constitute a break in service. For purposes of this Part, an absence
from work for maternity or paternity reasons means an absence:
By reason of pregnancy of the individual;
By reason of a birth of a child of the individual;
By reason of the placement of a child with the individual in
connection with the adoption of such child by such individual; or
For purposes of caring for such child for a period beginning
immediately following such birth or placement.
The person who has primary responsibility for the execution of the administrative affairs of the municipality in the case of a municipality or of the pension plan in the case of a pension plan or the designee of that person. (See § 1-609.)
The Internal Revenue Code of 1986, as the same may be amended
from time to time.
Compensation is defined as 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. However, compensation is exclusive of
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, accumulated
vacation leave, bonus or payments of a back-pay damage award.
For purposes of the maximum benefit limitations of Code § 415 (§ 1-604, Subsections 4-6), compensation shall include the participant's wages, salaries, fees for professional services and other amounts received for personal services actually rendered in the course of employment with an employer maintaining the plan (including, but not limited to, commissions paid to salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips and bonuses) paid during the limitation year. Compensation does not include: employer contributions to a qualified retirement plan, a nonqualified deferred compensation plan or a simplified employee pension plan; income received for the disposition of stock pursuant to the exercise of a qualified stock option; income realized upon the exercise of a nonqualified stock option or upon the lapse of substantial forfeiture provisions or nontransferability provisions on previously restricted property (as defined in Code § 83); premiums paid by the employer for group life insurance to the extent not includable in the participant's gross income and employer contributions (whether or not under a salary reduction agreement), towards the purchase of a tax-sheltered annuity contract (as described in Code § 403(b)).
Compensation shall commence as of an employee's effective date of participation pursuant to § 1-602.
The date the participant has completed 20 years of service
(only applicable to post-Act 600 hires).
May 1, 1963. The effective date of this total amendment and
restatement of the plan is January 1, 1991.
Any person who is employed by the employer as a permanent,
full-time municipal policeman.
The Supervisors of Vernon Township and any successor entity
which shall become a party hereto by assuming the obligations of the
plan with respect to its employees or any predecessor entity which
has maintained this plan or any predecessor plan which has been restated
or modified herein. Each such organization shall have all the rights
and obligations of the employer with respect to its employees. Such
assumption shall be in writing and signed by the employer.
The date on which an employee first satisfies the probationary
requirements of the employer.
The date on which an employee first completes an hour of
service.
A person who has been a participant but has ceased to be
a participant for any reason. Any participant with a vested interest
who is no longer employed by the employer shall also be considered
a former participant.
A rate of 5% compounded annually which is credited on each
participant's compulsory employee contributions from the date
of contribution.
A participant who is lawfully married on the date retirement income benefits become payable pursuant to § 1-606 of this Part.
The date the participant has attained the age of 50 years
and completed 25 years of service.
Any employee who has satisfied the requirements to participate in this plan as provided for in § 1-602 and has not for any reason become ineligible to participate further in the plan.
A continuous period of time during which the employee is
not employed by the employer. Such period shall begin on the date
the employee retires, quits, is discharged or dies or, if earlier,
the twelve-month anniversary date on which the employee was otherwise
first absent from service.
The defined benefit pension plan set forth herein (including
any trust forming a part hereof), as amended and supplemented from
time to time, all of which shall be known a the Vernon Township Police
Pension Plan.
The chief administrative officer of the employer.
Each twelve-month period beginning on January 1 and ending
of the following December 31 (also applicable prior to the effective
date of the plan).
A person holding a full-time position in the Police Department
of Vernon Township, Crawford County, Pennsylvania, and who works for
a stated salary or compensation.
Date of actual retirement of a participant which may be his
normal, late, early or disability retirement date.
The agreement entered into between the employer and the trustee
containing the duties and responsibilities of the trustee with respect
to the fund.
The trust fund, established pursuant to the agreement of
trust entered into pursuant to this plan by the employer and the trustee
specified therein, consisting of the contributions received by the
trustee and the assets of the plan as the same may exist from time
to time.
Pennbank or the person(s) or entity named as trustee by the
employer to administer the fund and any and all successors to the
trustees.
The first day of each plan year.
The biannual actuarial valuation report as required by Act
205.
A nonforfeitable benefit provided in the plan.
The twelve-consecutive-month period commencing with the participant's
employment commencement date and anniversaries thereof.
An employee shall receive credit for the aggregate of all time
period(s) ("service") commencing with the first day such employee
completes an hour of service (including such day following reemployment)
and ending on the date a break in service begins. An employee shall
also receive credit for any period of severance of less than 12 consecutive
months. Fractional periods of a year shall be expressed in terms of
months.
Each employee shall accrue benefits for the period beginning
on the date the employee commences participation under the plan and
ending on the date on which such employee severs employment with the
employer or is no longer a member of an eligible class of employees.
Any member of the police force employed by the Township of Vernon,
Crawford County, Pennsylvania, who has been a regular employee of
the Township of Vernon, Crawford County, Pennsylvania, for a period
of at least six months and shall thereafter enter into any branch
of the military service of the United States of America shall have
credited to him/her time spent by him/her in such military service,
if such person returns as a regular employee of the Township of Vernon,
Crawford County, Pennsylvania, within six months after his separation
from military service or, prior to the adoption of this amendment,
shall heretofore return to his employment as a regular employee of
the Township of Vernon, Crawford County, Pennsylvania, within six
months after his separation from military service.
[Ord. 1992-6, 12/3/1992, § 2]
1.
Eligibility Requirements.
A.
Any employee who was a participant as of the effective date of this
amendment and restatement of the plan shall continue to participate
in the plan. Thereafter, any employee will participate on his entry
date.
B.
In the event a participant becomes a noneligible employee but has
incurred a break in service such employee will participate immediately
upon becoming an employee again. If such participant incurs a break
in service, eligibility will be determined under the break in service
rules of the plan.
C.
In the event an employee who is a noneligible employee becomes an
eligible employee, such employee will participate immediately.
2.
Determination of Eligibility. The plan administrator shall determine
the eligibility of each employee for participation in the plan based
upon information furnished by the employer.
3.
Termination of Eligibility.
A.
A participant shall cease to participate in the plan as of the first
day of a plan year during which he/she has a break in service.
B.
In the event a participant shall go from a classification of an eligible
employee to a noneligible employee such former employee shall continue
to vest in his accrued benefit under the plan for each year of service
completed while a noneligible employee until such time when his accrued
benefit shall be forfeited or distributed pursuant to the terms of
this agreement. No distribution shall be made to said former participant
until such time as he/she terminates employment.
[Ord. 1992-6, 12/3/1992, § 3; as amended by Ord.
2004-04, 10/7/2004, § 2]
1.
Contributions by Employer.
A.
The employer shall contribute to the plan for investment at least
such amounts as are necessary to satisfy the minimum funding standards
of Act 205. The employer contribution shall consist of funds received
by the employer through Act 205 of the laws of the Commonwealth of
Pennsylvania (these funds must be contributed to the plan by the employer
within 31 days after receipt.) Contributions from the employer's
general fund with respect to a particular plan year must be paid to
the plan by the last day of January in the year of valuation. If the
contributions from the general fund are not paid by the last day of
January, the outstanding contribution shall be payable with interest
for the period since January 1 at a rate equal to the interest assumption
used for the actuarial valuation report expressed on a monthly basis.
If the contribution remains outstanding after December 31 an additional
interest penalty compounded monthly will accrue until the payment
is made.
B.
The expenses of administering the plan may be paid directly by the
employer if it so elects. Otherwise such expenses shall be paid out
of the fund.
2.
Compulsory Employee Contributions.
A.
Compulsory Employee Contributions by Participants. As a condition
of participation in the plan, each employee shall contribute monthly
an amount equal to 5% of monthly compensation. The Township may, on
an annual basis, by ordinance or resolution, reduce or eliminate contributions
into the fund by participants. Reduction or elimination of participant
contributions shall not permit the return of contributions or any
interest of fund earnings to be made to a participant while still
a full-time employee.
[Amended by Ord. No. 2016-03, 12/27/2016]
B.
Commencement of Participant Contributions. Contributions of each
participant shall commence with the employer pay period coincident
with or next following the employee's employment commencement
date and upon completion of the forms necessary to authorize the employer
to deduct the contributions required by this section from the pay
of the employee. The employer shall deposit these participant contributions
to the plan as they are contributed by the participant.
C.
Termination of Contributions. A participant's contributions
shall terminate at retirement, death or termination of employment.
D.
Failure of Employee to Make Compulsory Employee Contributions.
(1)
If an employee elects not to make compulsory employee contributions
to the plan, such employee shall not become a participant in the plan
until such time as he/she begins and continues to make the required
compulsory employee contributions. The retirement and death benefits
of such deferred entry employee shall be reduced proportionately.
"Proportionately" means the percentage of benefits determined by using
as a numerator the actual number of years of service with the employer
from date of participation projected to normal retirement date, less
the number of years in which participation was deferred due to the
employee's failure to make compulsory employee contributions.
The denominator shall be the number of actual years of service since
the employee became eligible to participate projected to normal retirement
date.
(2)
In the computation of years of service any year of service after
an employee has become eligible to participate in the plan but during
which such employee declined to make the required compulsory employee
contributions shall be excluded.
E.
The chief administrative officer shall establish and maintain a separate
account in the name of each participant to which the chief administrative
officer shall credit his mandatory contributions. Gains or losses
on such mandatory contributions shall be directly debited or credited
to a participant's compulsory employee contribution account based
on the investment results of the transactions relative to the compulsory
contributions.
G.
Overall Limitation of Employee Contributions.
(1)
A plan meets the contribution percentage requirement of Code
§ 401(m) for any plan year beginning after December 31,
1986, if it meets one of the following tests (ACP test) (for plans
which allocate employee contributions to a separate account):
(a)
The average contribution percentage of highly-compensated employees
for the plan year shall not exceed the average contribution percentage
for non-highly-compensated employees multiplied by 1 1/4; or
(b)
The average contribution percentage for highly-compensated employees
for the plan year shall not exceed the average contribution percentage
for non-highly-compensated employees, multiplied by two; provided,
that the average contribution percentage for highly-compensated employees
does not exceed the average contribution percentage for non-highly-compensated
employees by more than two percentage points.
(2)
Multiple Use. If one or more highly-compensated employees participates
in both a cash or deferred arrangement and a plan subject to the ACP
test maintained by the employer and the sum of the ADP (Actual Deferral
Percentage) and ACP of those highly-compensated employees subject
to either or both tests exceeds the aggregate limit, the ACP of those
highly-compensated employees who also participate in a cash or deferred
arrangement will be reduced (beginning with such highly-compensated
employee whose ACP is the highest) so that the limit is not exceeded.
The amount by which each highly-compensated employee's contribution
percentage amount is reduced shall be treated as an excess aggregate
contribution. The ADP and ACP of the highly-compensated employees
are determined after any corrections required to meet the ADP and
ACP of the highly-compensated employees does not exceed 1 1/4
multiplied by the ADP and ACP of the non-highly-compensated employees.
(3)
For purposes of this subsection and Subsection 2I, "average
contribution percentage" for a plan year means, with respect to the
highly-compensated participant and non-highly-compensated participant
group, the average of the ratios (calculated separately for each participant
in each group) of:
(4)
Employee contributions are considered to have been made in the
plan year in which they are contributed to the trust.
(5)
Aggregate Limit. The sum of:
(a)
125% of the greater of the ADP of the non-highly-compensated
employees for the plan year of the ACP of non-highly-compensated employees
under the plan subject to Code § 401(m) for the plan year
beginning with or within the plan year of the cash or deferred arrangement;
and
(b)
The lesser of 200% or two plus the lesser of such ADP or ACP.
(6)
For purposes of determining the average contribution percentage and the amount of excess aggregate contributions pursuant to Subsection 2G, the administrator may elect to take into account, with respect to employees eligible to have employee contributions made pursuant to § 1-603, Subsection 3, allocated to their accounts, elective deferrals (as defined in Regulation 1.402(g)-1(b)) and qualified nonelective contributions (as defined in Code § 401(m)(4)(C)) contributed to any plan maintained by the employer. Such elective deferrals and qualified nonelective contributions shall be treated as employer matching contributions subject to Regulation 1.401(m)-(b)(2) which is incorporated herein by reference. However, for plan years beginning after December 31, 1988, the plan year must be the same as the plan year of the plan to which the elective deferrals and the qualified nonelective contributions are made.
(7)
Qualified Nonelective Contributions. Contributions (other than
matching contributions) made by the employer and allocated to participants'
accounts that the participants may not elect to receive in cash until
distributed for the plan; that are nonforfeitable when made; and that
are distributable only in accordance with the distribution provisions
that are applicable to elective deferrals.
(8)
Eligible Participant. Any employee who is eligible to make an
employee contribution or an elective deferral (if the employer takes
such contributions into account in the calculation of the contribution
percentage), or to receive a matching contribution (including forfeitures)
or a qualified matching contribution. If an employee contribution
is required as a condition of participation in the plan any employee
who would be a participant in the plan if such employee made such
a contribution shall be treated as an eligible participant on behalf
of whom no employee contributions are made.
(9)
For purposes of determining, the average contribution ratio of a highly-compensated employee who is subject to the family member aggregation rules of Code § 414(q)(6) because such employee is either a 5% owner of the employer or one of the 10 highly-compensated employees paid the greatest compensation (as defined in § 1-601) during the year the following shall apply:
(a)
The combined average contribution ratio for the family group (which shall be treated as one highly-compensated employee) shall be determined by aggregating voluntary employee contributions made pursuant to § 1-603, Subsection 2, and compensation (§ 1-601) of all eligible family members (including highly-compensated employees).
(10)
However, in applying the $200,000 limit to said compensation
for plan years beginning after December 31, 1988, family members shall
include only the affected employee's spouse and any lineal descendants
who have not attained age 19 before the close of the plan year. Notwithstanding
the foregoing, with respect to plan years beginning prior to January
1, 1990, compliance with the regulations then in effect shall be deemed
to be in compliance with this subsection.
(a)
The voluntary employee contributions made pursuant to § 1-603, Subsection 2, and compensation (§ 1-601) of all family members shall be disregarded for purposes of determining the average contribution percentage of the non-highly-compensated participant group except to the extent taken into account in Subsection 2G(9)(a) above.
(11)
In the event that this plan satisfies the requirements of Code
§ 401(m), 401(a)(4) or 410(b) only if aggregated with one
or more other plans, or if one or more other plans satisfy the requirements
of such Code sections only if aggravated with this plan, then this
section shall be applied by determining the contribution percentage
of employees as if all such plans were a single plan. For plan years
beginning after December 31, 1989, plans may be aggregated to satisfy
§ 401(m) of the Code only if they have the same plan year.
(12)
For purposes of this section, if two or more plans of the employer
(other than an ESOP as defined in Code § 4975(e)(7) for
plan years beginning after December 31, 1988, to which matching contributions,
employee contributions, or both, are made are treated as one plan
for the purpose of Code §§ 401(a)(4) or 410(b) (other
than the average benefits test under Code § 410(b)(2)(A)(ii)),
such plans shall be treated as one plan for purposes of this section.
In addition, two or more plans of the employer to which matching contributions,
employee contributions or elective pay deferrals are made may be considered
as a single plan for purposes of this section. In such a case, the
aggregated plan must satisfy Code §§ 401(a)(4) and
410(b) as though such aggregated plans were a single plan. Notwithstanding
the above, for plan years beginning after December 31, 1988, contributions
to an ESOP as defined in Code § 4975(e)(7) shall not be
aggregated with this plan.
(13)
If a highly-compensated employee participates in two or more
cash or deferred arrangements that have different plan years, all
cash or deferred arrangements ending with or within the same calendar
year shall be treated as a single arrangement.
(14)
If a highly-compensated employee participates in two or more
plans (other than an ESOP as defined in Code § 4975(e)(7))
for plan years beginning after December 31, 1988, which are maintained
by the employer or a related employer to which matching contributions,
employee contributions or elective deferrals are made, all such contributions
on behalf of such highly-compensated employee shall be aggregated
for purposes of this section.
(15)
For purposes of Subsections 2H and I, a highly-compensated participant
and non-highly-compensated employee shall include any employee eligible
to have voluntary employee contributions pursuant to this section
(whether or not voluntary employee contributions are made) allocated
to his account for the plan year.
H.
Treatment of Excess Employee Contributions.
(1)
Excess aggregate contributions and income allocable thereto
shall be distributed on or before the 15th day of the third month
following the end of the plan year but in no event later than the
last day of the following plan year to participants to whose account
employee contributions were allocated for the preceding plan year.
(2)
Excess Aggregate Contributions. With respect to any plan year,
the excess of:
(3)
Determination of Income or Loss. The income or loss allocable
to excess aggregate contributions up to the date of distribution shall
be equal to the sum of:
(a)
The amount obtained by multiplying the income or loss allocable
to the participant's employee contributions for the plan year
by a fraction, the numerator of which is the excess aggregate contributions
on behalf of the participant for the preceding plan year and the denominator
of which is the sum of the participant's account balance attributable
to employee contributions on the last day of the preceding plan year.
(4)
Excess aggregate contributions shall be distributed from the
participant's employee contribution account in proportion to
the participant's employee contributions for the plan year, such
distribution shall be made on behalf of the highly-compensated participant
group in order of their contribution percentages beginning with the
highest of such percentages. If there is a loss allocable to such
excess amount, the distribution shall in no event be less than the
lesser of the participant's employee contribution account or
the participant's employee contributions for the plan year.
(5)
Any distribution of less than the entire amount of excess aggregate
contributions (and income) shall be treated as a pro rata distribution
of excess aggregate contributions and income. Distribution of excess
aggregate contributions shall be designated by the employer as a distribution
of excess aggregate contributions (and income).
(6)
For each highly-compensated participant the amount of excess aggregate contributions is equal to the total voluntary employee contributions made pursuant to Subsection 2 and any qualified nonelective contributions or elective deferrals taken into account pursuant to Subsection 2H on behalf of the highly-compensated participant (determined prior to the application of this subsection) minus the amount determined by multiplying the highly-compensated participant's average contribution ratio (determined after application of this subsection) by his compensation (§ 1-601). The average contribution ratio must be rounded to the nearest 1/100 of 1% for plan years beginning after December 31, 1988. In no case shall the amount of excess aggregate contribution with respect to any highly-compensated participant exceed the amount of employee contributions made pursuant to Subsection 2 and any qualified nonelective contributions of elective deferrals taken into account pursuant to Subsection 2H on behalf of such highly-compensated participant for such plan year.
(7)
The determination of the amount of excess aggregate contributions
with respect to any plan year shall be made after first determining
the excess contributions (as defined in Regulation 1.401(k)-(g)(13)),
if any, to be treated as voluntary employee contributions due to recharacterization
for the plan year of any qualified cash or deferred arrangement (as
defined in Code § 301(k)) maintained by the employer that
ends with or within the plan year.
(8)
If the determination and correction of excess aggregate contributions of a highly-compensated employee whose average contribution ratio is determined under the family aggregation rules, then the average contribution ratio shall be reduced and the excess aggregate contributions for the family unit shall be allocated among the family members in proportion of the sum of voluntary employee contributions made pursuant to Subsection 2 and any qualified nonelective contributions or elective deferrals taken into account pursuant to Subsection 2H of each family member that were combined to determine the group average contribution ratio. Notwithstanding the foregoing, with respect to plan years beginning prior to January 1, 1990, compliance with the regulations then in effect shall be deemed to be compliance with this subsection.
I.
Notwithstanding the above, within 12 months after the end of the
plan year the employer may make a qualified nonelective contribution
(as defined in Code § 401(m)(4)(C)) on behalf of non-highly-compensated
participants in an amount sufficient to satisfy one of the tests set
forth in Subsection 2H. Such contribution shall be allocated to the
participant's account of each non-highly-compensated participant
in the same proportion that each non-highly-compensated participant's
compensation for the year bears to the total compensation of all non-highly-compensated
participants. A separate accounting shall be maintained with respect
to such contributions.
J.
AVERAGE CONTRIBUTION PERCENTAGE
CONTRIBUTION PERCENTAGE
For purposes of this subsection the following definitions shall apply:
The average (expressed as a percentage) of the contribution
percentages of the eligible participants in a group.
The ratio (expressed as a percentage) of the sum of the employee
contributions under the plan on behalf of the eligible participant
for the plan year to the eligible participant's compensation
for the plan year. An employer may elect to take into account (in
computing the contribution percentage) elective deferrals, matching
contributions, and qualified nonelective contributions under the plan
or any other plan of the employer.
3.
Time of Payment of Employer Contribution. The employer shall pay
to the chief administrative officer its employer contribution to the
plan for each plan year within the time period specified in Act 205.
[Ord. 1992-6, 12/3/1992, § 4; as amended by Ord.
1997-3, 3/6/1997; by Ord. 1999-2, 8/5/1999, § 1; by Ord.
2001-1, 6/7/2001, §§ 3, 4; and by Ord. 2004-04, 10/7/2004,
§ 3]
1.
Normal Retirement Benefit. The amount of monthly retirement benefit
to be provided for each participant who retires on his normal retirement
date shall be equal to 50% of his average monthly compensation.
2.
Normal Form of Benefit. Retirement benefit payable to a retired participant pursuant to Subsections 1 and 9 shall be:
A.
For a single participant, a monthly pension commencing on his retirement
date and continuing for life.
B.
For a married participant, a monthly pension for life with payments
continuing after the participant's death to the surviving spouse
of the participant in an amount equal to 50% of the pension that the
participant was receiving at the time of his death. In the event that
the participant's spouse does not survive him/her or in the event
that the participant's spouse survives and subsequently dies,
then the child or children of the participant under the age of 18
years or, if attending college, under or attaining the age of 23 years
shall be entitled to receive a pension which shall be calculated at
50% of the pension the participant was receiving at the time of his
death. For purposes of this section, the phrase "attending college"
shall mean the eligible children are registered at an accredited institution
of higher learning and are carrying a minimum courseload of seven
credit hours per semester.
3.
Relationship to Social Security. No change in the Social Security
Act after the date of a participant's separation from service
shall affect the benefits as described under this plan.
4.
Service Increment. In addition to the benefit in Subsection 1, a participant who shall retire after completion of at least 26 years of service shall be entitled to receive a monthly service increment benefit of $100.
5.
Cost of Living Increase. A participant who shall retire on or after January 1, 1997, and who is eligible to receive a retirement benefit pursuant to Subsection 1 hereunder shall be entitled to receive a cost-of-living adjustment to the amount of benefit payable under Subsections 1 and 4. Such cost-of-living adjustment shall be initially determined as of the anniversary date following 12 months of retirement and each anniversary date thereafter and shall not be in excess of the following limitations:
A.
The percentage increase in the Consumer Price Index for the year
in which the participant was last employed as an employee of the employer.
B.
The total retirement benefits payable under this plan shall not exceed
75% of the participant's average monthly compensation.
C.
The total cost-of-living increase shall not exceed 30% of the participant's
retirement benefit under this plan.
D.
The total cost-of-living increase shall not impair the actuarial
soundness of the plan.
5.1.
Increase in Benefits for Individuals Who Retired
Prior to January 1, 1997.
A.
At the discretion of the Board of Supervisors an increase may be provided to participants who retired before January 1, 1997. Such cost shall not be in excess of the limitation as set forth in Subsection 5A-D of this § 1-604.
B.
Effective January 1, 1999, an increase in pension benefits may be
provided for all participants retired and receiving benefits as of
that date who retire prior to January 1, 1997.
6.
Maximum Benefits.
A.
Subject to exceptions below, the maximum annual benefit payable to
a participant under this plan in any limitation year shall equal the
lesser of:
(1)
Ninety thousand dollars; or
(2)
One hundred percent of the participant's compensation average
over the three consecutive limitation years (or actual number of limitation
years for employees who have been employed for less than three consecutive
limitation years) during which the employee had the greatest aggregate
compensation from the employer.
B.
For purposes of this plan, "annual benefit" means the benefit which would be payable in the form of a straight life annuity with no ancillary benefit or a qualified joint and survivor annuity. If a benefit is payable in any other form, the annual benefit limitation shall be applied by adjusting it to the actuarial equivalent of a straight life annuity. In determining the actuarial equivalent value, the interest rate assumption shall not exceed the greater of 5% or the rate specified in § 1-601, Subsection 3. No adjustment is required for qualified joint and survivor annuity benefits, preretirement death benefits and postretirement death benefits and postretirement medical benefits.
C.
Preservation of Current Accrued Benefit under the Plan.
(1)
In general this subsection shall apply to defined benefit plans
that were in existence on May 6, 1986, and that met the applicable
requirements of Code § 415 as in effect for all limitation
years.
(2)
If the current accrued benefit of an individual who is a participant
as of the first day of the limitation year beginning on or after January
1, 1987, exceeds the benefit limitations under Code § 415(b),
then for purposes of Code § 415(b) and (e), the defined
benefit dollar limitation with respect to such individual shall be
equal to such current accrued benefit.
(3)
Current Accrued Benefit. A participant's accrued benefit
under the plan, determined as if the participant had separated from
service as of the close of the last limitation year beginning before
January 1, 1987, when expressed as an annual benefit within the meaning
of Code § 415(b)(2). In determining the amount of a participant's
current accrued benefit, the following shall be disregarded:
D.
The dollar limitation under Code § 415(b)(1)(A), stated in Subsection 6A(1) above, shall be adjusted annually as provided in Code § 415(d) pursuant to the regulations. The adjusted limitation is effective as of January 1 of each calendar year and is applicable to limitation years ending with or within that calendar year.
E.
The limitation stated in Subsection 6A(2) above for participants who have separated from service with a nonforfeitable right to an accrued benefit shall be adjusted annually as provided in Code § 415(d) pursuant to the regulations prescribed by the Secretary of the Treasury.
G.
In the case of a group of related employers, all such employers shall
be considered a single employer for purposes of applying the limitation
of § 415 of the Code.
7.
Adjustments to Annual Benefit and Limitations.
A.
If the annual benefit begins on or after age 62, the $90,000 limitation
shall be reduced. If the annual benefit begins before age 62 the $90,000
limitation (but not the 100% compensation limitation) shall be reduced
so that it is the actuarial equivalent of the $90,000 limitation beginning
at age 62. However, the $90,000 limitation shall not be reduced to
less than:
(1)
$75,000 if the annual benefit commences on or after age 55;
or
(2)
The amount which is the actuarial equivalent of $75,000 at age
55 if the annual benefit commences prior to age 55.
|
For purposes of adjusting the $90,000 limitation applicable prior to age 62 or the $75,000 limitation prior to age 55 the adjustment shall be made pursuant to § 1-601, Subsection 3, except that the interest rate assumption shall be the greater of 5% or the rate specified in § 1-601, Subsection 3, and the mortality decrement shall be ignored to the extent that a forfeiture does not occur at death.
|
B.
If the annual benefit begins after age 65, the $90,000 limitation shall be increased so that it is the actuarial equivalent of the $90,000 limitation at the age of 65. For purposes of adjusting the $90,000 limitation applicable after age 65, the adjustment shall be made pursuant to § 1-601, Subsection 3, except that the interest rate assumption shall be the lesser of 5% or the rate specified in § 1-601, Subsection 3, and the mortality decrement shall be ignored to the extent that a forfeiture does not occur at death.
C.
For purposes of adjusting any "annual benefit" under Subsection 4 or 5A or B, no adjustments shall be taken into account before the limitation year for which such adjustment first takes effect.
D.
If a participant has less than 10 years of participation in the plan
at the time he/she begins to receive benefits under the plan, the
$90,000 limitation shall be reduced by multiplying such limitation
by a fraction: the numerator of which is the number of years of participation
(or part thereof) in the plan and the denominator of which is 10,
provided that said fraction shall in no event be less than 1/10. The
100% of compensation limitation shall be reduced in the same manner
except the preceding sentence shall be applied with respect to years
of service with the employer rather than years of participation in
the plan. Additionally, to the extent provided in regulations, the
above reductions shall be applied separately with respect to each
change in the benefit structure of the plan. Notwithstanding the foregoing,
for limitation years beginning prior to January 1, 1987, if a participant
has fewer than 10 years of service with the employer at the time he/she
begins to receive benefits under the plan, the maximum annual benefit
payable to the retired participant shall be reduced by multiplying
such maximum annual benefit by a fraction: the numerator of which
is the number of years of service, or part thereof, with the employer,
and the denominator of which is 10.
E.
Exception Benefit. Subject to the limitation of Subsection 5D above, this plan may pay an annual benefit to any retired participant which shall exceed 100% of such participant's average compensation (Subsection 4 above); provided, the annual benefit shall not be in excess of $10,000; and, provided, the participant shall not be or have been, at any time, an active participant in any defined contribution plan maintained by the employer.
8.
Multiple Plan Reduction.
A.
If an employee has, at any time, participated in one or more defined
benefit plans and one or more defined contribution plans maintained
by the employer, the sum of the defined benefit plan fraction and
the defined contribution plan fraction for any limitation year may
not exceed one. In the case of an individual who was a participant
in one or more defined benefit plans of the employer as of the first
day of the first limitation year beginning after December 31, 1986,
the application of the limitations of this section shall not cause
the maximum permissible amount for such individual under all such
defined benefit plans to be less than the individual's current
accrued benefit. The preceding sentence applies only if such defined
benefit plans met the requirements of the Code § 415 for
all limitation years beginning before January 1, 1987.
(1)
The defined benefit plan fraction for any limitation year is
a fraction, the numerator of which is the participant's projected
"annual benefit" under the plan (determined as of the close of the
limitation year pursuant to Regulations 1.415-7(b)(3), and the denominator
of this is the less of: (a) the product of 11/4 multiplied by the
maximum dollar limitation in effect under Code § 425(b)(1)(A)
for such limitation year, or (b) the product of 1 2/5 multiplied
by the amount which may be taken into account under Code § 415(b)(1)(B)
for such limitation year.
(2)
The defined contribution plan fraction for any limitation year
is a fraction, the numerator of which is the sum of the annual additions
to the participant's accounts for such limitation year and for
all prior limitation years, and the denominator of which is the sum
of the lesser of the following amounts determined for such year and
each prior year of service with the employer: (a) the product of 1 1/4
multiplied by the dollar limitation in effect under Code § 415(c)(1)(A)
for such year (determined without regard to Code § 415(c)(6))
or (b) the product of 1 2/5 multiplied by the amount which may
be taken into account under Code § 415(c)(1)(B) for such
year. For the purpose of this subsection, the term "participant's
account" shall mean the account established and maintained for each
participant with respect to this total interest in the defined contribution
plan maintained by the employer resulting from annual additions. The
annual addition allocated to pay any participant's account under
this plan in a limitation year, plus all annual additions allocated
to such participant under any other defined contribution plan of the
employer for such limitation shall not exceed the lesser of (a) $30,000
(or such greater amount as may be determined by the Commissioner of
Internal Revenue Service for limitation years ending on or after January
1, 1988, as a cost of living adjustment), or (b) 25% of such participant's
compensation. "Annual additions" means the sum credited to a participant's
account for any limitation year of:
(a)
Employer contributions.
(b)
Employee contributions.
(c)
Forfeitures.
(d)
Amounts allocated after March 31, 1984, to any individual medical
account, as defined in Code § 415(1)(2) which is part of
a pension or annuity plan maintained by the employer.
(e)
Amounts derived from contributions paid or accrued after December
31, 1985, in taxable years ending to postretirement medical benefits
allocated to a separate account of a key employee (as defined in Code
§ 419(A)(d)(3)) under a welfare benefit plan (as defined
on Code § 419(e) maintained by the employer.
(3)
Notwithstanding the foregoing, for plan years beginning prior
to January 1, 1987, only that portion of employee contributions equal
to the lesser of employee contributions in excess of 6% of compensation
or 1/2 of employee contributions shall be considered an annual addition.
The annual addition for any limitation year beginning before January
1, 1987, shall not be recomputed to treat all employee contributions
as an annual addition. If the plan satisfied Code § 415
as in effect for all limitation years beginning before January 1,
1987, an amount shall be subtracted from the numerator of the defined
contribution plan fraction (not exceeding such numerator) as prescribed
by the Secretary of the Treasury so that the sum of the defined benefit
plan fraction and defined contribution plan fraction computed under
§ 415(e)(1), as amended by the Tax Reform Act of 1986, does
not exceed one for such limitation year.
B.
Except as specifically permitted in the regulations of the Secretary
of the Treasury under § 415 of the Code, the benefits paid
or payable at any time shall not exceed the limitations of Subsection
8B above.
C.
Special Rule for Defined Contribution
Fraction for Defined Contribution Plan in Effect on or Before July
1, 1982. The Administrator may elect, for any limitation year ending
after December 31, 1982, that the amount taken into account in the
denominator for every participant for all limitation years ending
before January 1, 1983, shall be an amount equal to the product of:
(1)
The denominator for the limitation year ending in 1982 determined
under the law in effect for the limitation year ending in 1982, multiplied
by
(2)
The Transition Fraction. For purposes of this subsection, the
term "transition fraction" shall mean a fraction:
(b)
The denominator of which is the lesser of:
1)
Forty-one thousand five hundred dollars; or
2)
Twenty-five percent of the participant's compensation for
the limitation year ending in 1981.
|
Notwithstanding the foregoing, for any limitation year in which the plan is a top heavy plan, $41,500 shall be substituted for $51,875 in determining the transition fraction unless the extra benefit is provided pursuant to § 1-609. However, for any limitation year in which this plan is a top heavy plan, $41,500 shall be substituted for $51,875 in any event.
|
D.
If the sum of the defined benefit plan fraction and the defined contribution
plan fraction shall exceed one in any limitation year for any participant
in this plan for reasons other than described in (E) below, the administrator
shall limit, to the extent necessary, the annual additions to such
participant's account for such limitation year. If, after limiting
the annual additions to such participant's account for the limitation
year, the sum of the defined benefit plan fraction and the defined
contribution plan fraction still exceed one, the administrator shall
then adjust the numerator of the defined benefit plan fraction so
that the sum of both fractions shall not exceed one in any limitation
year for such participant.
E.
If this substitution of 1.0 for 1.25 and $41,400 for $51,875 above
or the excess benefit accruals or annual additions provided for in
Internal Revenue Service Notice 82-19 cause the 1.0 limitation to
be exceed for any participant in any limitation year, such participant
shall be subject to the following restrictions for each future limitation
year until the one limitation is satisfied:
9.
Early Retirement Benefit. The amount of monthly retirement benefit
to be provided for each participant who retires on his early retirement
date shall be calculated as follows:
A.
A partial retirement benefit shall be determined by applying the
percentage that the participant's years of service bear to the
years of service that the participant would have rendered had the
participant continued to be employed until his normal retirement age
to the gross pension amount calculated using his average monthly compensation.
B.
The actuarial equivalent of the partial retirement benefit shall
be determined by actuarially reducing the partial retirement benefit
to reflect that it will commence on the effective date of the early
retirement rather than on the date on which the participant would
have completed normal retirement benefit age and service requirements.
The actuarial reduction shall be calculated using the actuarial assumptions
reported in the last actuarial evaluation report filed with the Public
Employee Retirement Commission under the Act of December 18, 1984
(P.L. 1005, No. 205) known as the "Municipal Pension Plan Funding
Standard and Recovery Act."
[Ord. 1992-6, 12/3/1992, § 6; as amended by Ord.
2001-1, 6/7/2001, § 5; and by Ord. 2004-04, 10/7/2004, § 4]
3.
Late Retirement.
B.
A participant will be deemed to be retired as of the first day of
any calendar month after he/she attains his normal retirement date
during which he/she performs services for the employer and/or receives
payment for vacation, holiday, illness, incapacity during disability,
layoff, jury duty, military duty, or leave of absence for fewer than
40 hours of employment.
4.
Disability Retirement.
B.
Total and Permanent Disability. A disability which has lasted at
least six uninterrupted months caused by bodily injury or disease
which prevents a participant from engaging in any occupation or business
for compensation, remuneration or profit and such disability is likely,
in the opinion of a qualified physician satisfactory to the chief
administrative officer, to be permanent and continuous during the
participant's lifetime.
C.
A participant's right to benefits pursuant to this section shall terminate if, prior to his normal retirement date, the participant (1) is reemployed by the employer, (2) engages in any substantial gainful activity, except for such employment as is found by the chief administrative officer to be for the primary purpose of rehabilitation or not incompatible with a finding of total and permanent disability, or (3) has sufficiently recovered, in the opinion of the chief administrative officer based on medical examination by a qualified physician appointed by the chief administrative officer, to be able to engage in regular employment with the employer or refuses to undergo any medical examination requested by the chief administrative officer; provided, that a medical examination shall not be required more frequently than twice in any calendar year prior to his 55th birthday. If entitlement to a benefit ceases in accordance with the provisions of this subsection, such participant shall not be prevented from qualifying for benefits under another section of the plan based on his average monthly compensation prior to his disability retirement date; provided, that benefits received pursuant to § 1-604, Subsection 4, shall reduce such other benefits as though the actuarial equivalent of such § 1-604, Subsection 4, benefits had been received pursuant to such provision of the plan as is applicable.
5.
Reemployment after Retirement/Suspension of Benefits.
A.
Normal or early retirement benefits in pay status will be suspended
for each calendar month during which the employee completes at least
40 hours of service with the employer in Act § 203(3)(B)
service. Similarly, the actuarial value of benefits which commence
later than normal retirement age will be computed without regard to
amounts which would have been suspended under the preceding sentence
as if the employee had been receiving benefits since normal retirement
age.
B.
Resumption of Payment. If benefit payments have been suspended, payments
shall resume no later than the first day of the third calendar month
after the calendar month in which the employee ceases to be employed
in § 203(a)(3)(B) service. The initial payment upon resumption
shall include the payment scheduled to occur in the calendar month
when payments resume and any amounts withheld during the period between
the cessation of § 203(a)(3)(B) service and the resumption
of payments.
C.
Notification.
(1)
No payment shall be withheld by the plan pursuant to this section
unless the plan notifies the employee by personal delivery or first
class mail during the first calendar month or payroll period in which
the plan withholds payments that his benefits are suspended. Such
notification shall contain a description of the specific reasons shy
benefit payments are being suspended, a description of the plan provision
relating to the suspension of payments, a copy of such provisions,
and a statement to the effect that applicable Department of Labor
Regulations may be found in § 2530.203-3 of the Code of
Federal Regulations.
(2)
In addition, the notice shall inform the employee of the plan's
procedures for affording a review of the suspension of benefits. Requests
for such review may be considered in accordance with the claims procedure
adopted by the plan pursuant to Act § 503 and applicable
regulations.
D.
Amount Suspended.
(1)
Life Annuity. In the case of benefits payable periodically on
a monthly basis for as long as a life (or lives) continues, such as
a straight life annuity or a qualified joint and survivor annuity,
an amount equal to the portion of a monthly benefit payment derived
from employer contributions.
(2)
Other Benefit Forms. In the case of a benefit payable in a form other than the form described in Subsection 5D(1) above, an amount of the employer-derived portion of benefit payments for a calendar month in which the employee is employed in § 203(a)(3)(B) service, equal to the lesser of:
(a)
The amount of benefits which would have been payable to the
employee if he/she had been receiving monthly benefits under the plan
since actual retirement based on a single life annuity commencing
at actual retirement age; or
(b)
The actual amount paid or scheduled to be paid to the employee
for such month. Payments which are scheduled to be paid less frequently
than monthly may be converted to monthly payments for purposes of
the above section.
[Ord. 1992-6, 12/3/1992, § 6; as amended by Ord.
2001-1, 6/7/2001, § 6; and by Ord. 2004-04, 10/7/2004, § 5]
1.
3.
Late Retirement Pension. A participant who remains in the employ of the employer beyond his normal retirement date shall be entitled to receive, commencing on his late retirement date, his benefit calculated pursuant to § 1-604, Subsection 1, considering his average monthly compensation as of his late retirement date.
4.
A participant who shall be entitled to a disability retirement shall receive a monthly benefit in the amount equal to 75% of the participant's monthly salary determined at the time the disability was incurred, provided that any participant who receives benefits for the same injuries under the Social Security Act (49 Stat. 620; 42 U.S.C. § 301 et seq.) shall have his disability benefits offset or reduced by the amount of such benefits. For purposes of this subsection "salary" shall mean a participant's basic salary, excluding bonus, overtime or any other forms of extra pay received from the Township. Disability benefits shall commence as of the first day of the month coincident with or immediately following the determination of the disability of the participant pursuant to § 1-605, Subsection 4, and which benefit shall continue to the earliest of the participant's death, cessation of disability, or attainment of normal retirement date. (A participant attaining normal retirement date shall thereafter receive normal retirement benefits per § 1-604.)
5.
Distribution of Benefits.
B.
In the event a participant elects not to receive the retirement benefit in the normal form set forth in § 1-604, Subsection 2, the plan administrator shall direct the trustee to distribute to a participant or his beneficiary any amount to which he/she is entitled under the plan in one or more of the following methods as elected by the participant:
(1)
Months Certain and Life Annuity. A participant may elect to
receive an actuarial equivalent pension payable for life, with a stipulation
that should he/she die prior to receiving 0, 60, or 120 monthly payments
(as elected by him/her), the balance of such payments shall continue
to be paid to his designated beneficiaries (or if none, to his estate);
or
(2)
Joint and Survivor Annuity. A participant may elect to receive
an actuarial equivalent pension for life with payments continuing
after his death to a designated beneficiary for the continued lifetime
of such designated beneficiary equal to 50%, 66 2/3%, 75%, or
100% of the reduced pension payable to him/her, as the participant
may elect.
|
Such optional forms of payment shall be actuarial equivalents
of the amount of benefit the participant and his beneficiary are entitled
to under the plan.
|
C.
If the actuarial equivalent of the retired participant's vested benefit derived from employer and employee contributions is less than and has never exceeded $3,500, the plan administrator shall immediately distribute such benefit in a lump sum payment without such retired participant's consent. For the purpose of determining the actuarial equivalent rate assumption shall be either the rate specified in § 1-601.
D.
Notwithstanding any provision in this agreement to the contrary, a participant's benefits shall be distributed to him/her not later than April 1 of the calendar year in which he/she attains age 71 1/2 or the calendar year in which he/she retires. Alternatively, distributions to a participant must begin no later than the April 1 following such calendar year and shall not be made over a period not exceeding the life of the participant (or the lives of the participant and the participant's designated beneficiary) or the life expectancy of the participant (or the life expectancy of the participant and his designated beneficiary). For plan years beginning after December 31, 1988, Subsection 5B(2) above shall not apply to any participant unless the participant has attained age 70 1/2 before January 1, 1988. Additionally, for calendar years beginning before 1989, distributions may also be made under an alternative method which provides that the then present value of the payments to be made over the period the participant's life expectancy exceeds 50% of the then present value of the total payments to be made to the participant and his beneficiaries.
6.
Time of Payment of Benefits.
A.
Unless elected otherwise as provided in Subsection 6B, payment of
benefits must begin no later than 60 days after the close of the plan
year in which the latest of the following events occurs:
B.
If the participant so elects, with the consent of the chief administrative officer, payment of benefits shall begin on the date elected by the participant (subject to the restrictions of § 1-606, Subsection 5D). The election shall be made in writing, signed by the participant and submitted to the chief administrative officer and shall describe the date on which payments are to begin.
7.
Limitation on Benefits. All rights and benefits, including elections,
provided to a participant in this plan shall be subject to the rights
afforded to an alternate payee under a qualified domestic relations
order as those terms are defined in Code § 414(p).
[Ord. 1992-6, 12/3/1992, § 7; as amended by Ord.
2004-04, 10/7/2004, § 6; and repealed by Ord. 2010-01, 7/1/2010,
§ 1]
[Ord. 1992-6, 12/3/1992, § 8]
1.
Deferred Vested Benefits.
A.
Participants who terminate their employment for causes other than
death prior to their normal retirement date will be vested in their
employer derived accrued benefits; provided, they have completed at
least 12 years of service with the employer at the time of their termination.
Such participants shall be vested in a percentage of their accrued
benefit as determined in accordance with the following schedule:
|
Years of Service
|
Vested Percentage
|
|---|---|
|
Less than 12
|
0%
|
|
12 or more
|
100%
|
B.
A participant shall be 100% vested in his accrued benefit attributable
to his compulsory employee contributions at all times.
2.
Vest until Normal Retirement Age. Should a participant, before reaching
normal retirement age and having completed 12 years of service, for
any reason cease to be a municipal employee, he/she shall be entitled
to vest his retirement benefits until he/she attains normal retirement
age, by filing with the Board of Supervisors a written notice of his
intention to vest within 90 days of the date of his termination of
employment.
A.
Upon reaching the date which would have been his normal retirement
date had he/she continued to be employed as a full-time police officer,
he/she shall be paid a retirement benefit determined using the average
monthly compensation during the appropriate period prior to his termination
of employment.
3.
Time of Payment.
A.
A participant, upon termination or employment, shall be entitled
to elect either:
B.
For the purpose of determining the actuarial equivalent value of a participant's vested accrued benefit in this regard, the interest rate assumption shall be the lesser of the rate specified in § 1-601 or the rate used by the Pension Benefit Guaranty Corporation (as of the beginning of the plan year in which the distribution occurs) in determining the present value of a lump sum distribution on plan termination.
[Ord. 1992-6, 12/2/1992, § 9]
1.
Chief Administrative Officer.
A.
The administration of this plan shall be vested in the chief administrative
officer who shall have the power and duty to operate and administer
the provisions of the plan and to make and enforce such rules and
regulations as may be necessary and proper for the efficient administration
of the plan.
B.
The chief administrative officer shall be appointed by the employer
and may, but need not be, one of the participants. The chief administrative
officer may be removed by the employer or may resign by delivering
his written resignation to the employer.
C.
The chief administrative officer may appoint such subcommittees,
with such powers as he/she determines; and may employ counsel and
agents and such clerical, accounting and actuarial services as he/she
may require in carrying out the provisions of the plan. All expenses
incurred in administering this plan shall be paid by the employer.
D.
The chief administrative officer shall not be liable for any loss
other than that specifically provided for under the standards applicable
to fiduciaries as contained in the Act. He/she shall not be personally
liable upon, or with respect to, any agreement, act, transaction or
omission executed, committed or suffered to be committed by himself
or by any other agent or representative, except as specifically provided
in Title I of the Act. The chief administrative officer, and any agent
thereof, shall be fully protected in relying upon the advice of any
legal counsel, physician or other expert retained by him/her or the
employer. Other than the bonding requirement under § 412
of the Act, no bond or other security shall be required of the chief
administrative officer in any jurisdiction.
E.
The chief administrative officer shall have the power to determine the eligibility of any employee to participate in or receive benefits under this plan to settle any disputes which may arise in the operation of the plan, to value the assets held in the plan on the basis of their market value in such manner as he/she may deem appropriate, and to interpret any provisions of this plan. Any such determination, decision, or interpretation of the chief administrative officer shall be conclusive as to all persons affected thereby subject only to the right of review provided by § 1-609, Subsection 1H, hereunder.
F.
The chief administrative officer shall make all distributions hereunder.
The Chief Administrative Officer may, to the extent not inconsistent
with the plan, specify the time at which any such distribution shall
be made and may make such distribution in cash, in property, in annuity,
insurance or similar contracts having such provisions as he/she may
deem appropriate in the form of periodic payments, or any combination
of the foregoing.
G.
All discretionary acts which may be taken pursuant to this plan by
the chief administrative officer with respect to participants or their
beneficiaries shall be uniform and nondiscriminatory and shall be
applicable to all participants and their beneficiaries in substantially
identical situations.
H.
Any claims by a participant or beneficiary shall be filed in writing
with the chief administrative officer. The chief administrative officer
shall make a decision on such application within 30 days of receipt
of such application. Any decision by the chief administrative officer
denying a claim by a participant or a beneficiary for benefits under
the plan shall be communicated in writing to the participant or beneficiary,
setting forth the specific reasons for such denial. Any such participant
or beneficiary whose claim has been denied, or his duly authorized
representative may (1) appeal to the chief administrative officer
in writing within 60 days after receipt of the notice of denial for
a review of his initial decision; (2) review pertinent documents;
and (3) submit issues and comments in writing. The decision by the
chief administrative officer following such review shall be made no
later than 60 days after the date of receipt by the chief administrative
officer of the request for review, and shall be conclusive as to all
persons affected thereby. Such decision shall be in writing and shall
include both specific reasons for the decision, written in a manner
calculated to be understood by the claimant and specific references
to the pertinent plan provisions on which the decision is based.
I.
The chief administrative officer shall hold and invest the contributions
in accordance with the instructions of the employer.
J.
The plan shall be used to pay benefits as provided and, to the extent
not paid directly by the employer, to pay the expenses of administering
the plan pursuant to authorization by the chief administrative officer.
K.
The employer intends the plan to be permanent and for the exclusive
benefit of its employees. It expects to make the contributions required
under the plan. However, subject to the provisions of the Act, neither
the employer nor the chief administrative officer shall be liable
in any manner for any insufficiency in the plan. Benefits are payable
only from the plan, and only to the extent that there are monies available
therein.
L.
The chief administrative officer shall be the named fiduciary with
respect to the management and control of the assets in the plan, and
may appoint an investment manager or managers to manage any assets
of the plan including the power to acquire and dispose of any plan
assets.
2.
Trust Agreement. The employer has entered into a trust agreement
with Pennbank as trustee hereunder. The trustee is responsible for
the investment management of the fund. The trust agreement shall be
attached hereto and be deemed to from a part of this plan, and any
and all rights or benefits which may accrue to any participant under
the plan shall be subject to all of the terms and provisions of the
trust agreement.
3.
Assignment of Benefits. No benefit payable under the plan shall be
subject in any manner to anticipation, assignment, garnishment or
pledge; and, any attempt to anticipate, assign, garnish or pledge
the same shall be void. No benefits shall be in any manner liable
for or subject to the debts, liabilities, engagements or torts of
any participants; and if any participant shall become bankrupt or
attempt to anticipate, assign or pledge any benefits, then the chief
administrative officer shall nevertheless cause the same to be paid
in the manner payable under this plan.
[Ord. 1992-6, 12/3/1992, § 10]
The employer shall have the right to amend this plan at any
time; provided, however, that no such action shall be effective to
permit any part of the corpus or income of the plan established herewith
to be used for, or diverted to, purposes other than the exclusive
benefit of the participants and their beneficiaries, and defraying
the reasonable expenses of administering the plan. The employer retains
the right to amend the plan at any time. No amendment to the plan
(including a change in the actuarial basis for determining optional
or early retirement benefits) or restricting a participant's
right to those benefits shall be effective to the extent that it has
the effect of decreasing a participant's accrued benefit. For
purposes of this subsection a plan amendment which has the effect
of eliminating or reducing an early retirement benefit or a retirement-type
subsidy, or eliminating an optional form of benefit with respect to
benefits attributable to service before the amendment the amendment
shall be treated as reducing accrued benefits. In the case of a retirement-type
subsidy, the preceding sentence shall apply only with respect to a
participant who satisfies (either before or after the amendment) the
preamendment conditions for the subsidy. In general, a retirement-type
subsidy is a subsidy that continues after retirement, but does not
include a qualified disability benefit, a medical benefit, a Social
Security supplement, a death benefit (including life insurance), or
a plant shutdown benefit (that does not continue after retirement
age). Furthermore, no amendment to the plan shall have the effect
of decreasing a participant's vested interest determined without
regard to such amendment as of the later of the date such amendment
is adopted, or becomes effective.
[Ord. 1992-6, 12/3/1992, § 10]
In the event of the termination or partial termination of the
plan, the accrued benefit of each affected participant who has not
incurred a break in service shall become fully vested and shall not
thereafter be subject to forfeiture. After giving all proper governmental
notifications and subject to the other requirements of the Act, the
plan administrator shall allocate all benefits accrued for the affected
participants and their beneficiaries to the date of such termination
or partial termination, to the extent funded on such date, among such
participants and beneficiaries in accordance with the provisions of
§ 4044 of ERISA. The employer shall thereupon direct either
that the trustee continue to hold the amounts allocated to participants
or beneficiaries in the trust fund in accordance with the provisions
of this plan without regard to such termination until all funds have
been distributed in accordance with such provisions or that the trustee
immediately distribute the allocated amounts to the appropriate participants
or beneficiaries. In the event of the termination of the plan, any
residual assets held as part of the trust fund, in excess of the present
value of affected participant's accrued benefits that are the
result of an actuarial error, may be returned to the employer.
[Ord. 1992-6, 12/3/1992, § 12]
1.
Applicable Law. The plan shall be governed by, and construed in accordance
with, the laws of the state in which such documents have been executed
except to the extent that such laws have been specifically preempted
by the Act or other federal legislation.
2.
Incapacity of Recipient of Benefits. If any person entitled to receive
benefits shall be physically or mentally incapable of receiving or
acknowledging receipt of any payment of benefits, the trustee, upon
the receipt of satisfactory evidence that such incapacitated person
is so incapacitated and that another person or institution is maintaining
him/her and that no guardian or committee has been appointed for him/her,
may provide or the payment of benefits hereunder to such person or
institution so maintaining him/her, and any such payments so made
shall be deemed for every purpose to have been made to such incapacitated
person.
3.
Merger, Consolidation or Discontinuance Involving Employer. In the
event that the employer shall at any time become insolvent, or in
the event of the dissolution of, or a merger or consolidation involving,
the employer, without any provision being made for the continuance
of the plan, the plan and the trust thereunder shall terminate and
the trustee shall proceed in the manner provided herein in the event
of a termination of the plan. In the event of a dissolution, merger
or consolidation involving the employer, provisions may be made by
the employer's successor, if any, for the continuance of the
plan. In such event, said successor shall be substituted hereunder
in place of the employer by proper corporate action of such successor.
4.
Liability of Officers and Directors of the Employer. Subject to the
provisions of the Act, no past, present or future officer or director
of the employer shall be personally liable to any participant, beneficiary
or other person under any provisions of the plan or agreement of trust.
5.
Merger or Consolidation of the Plan. In the case of any merger or
consolidation of the plan with, or transfer of assets or liabilities
of the trust to, any other plan, or trust, each participant or beneficiary
in the plan shall be entitled to a benefit hereunder immediately after
such merger, consolidation, or transfer (if the plan then terminated)
which is no less than the benefit he/she was entitled to receive immediately
before such merger, consolidation or transfer (if the plan had then
terminated).
6.
Employment Rights not Affected by the Plan. Participation in this
plan shall not give any right to any employee to be retained in the
employ of the employer nor shall it interfere with the right of the
employer to discharge any employee and to deal with him/her without
regard to the existence of this plan and without regard to the effect
that such treatment might have upon him/her as a participant in this
plan.
7.
Assets Owned by Plan, Not Participants or Beneficiaries. Nothing
contained herein shall be deemed to give any participant or his beneficiary
any interest in any specific property of the trust fund or any right
except to receive such distributions as are expressly provided for
in this plan.
8.
Alienation of Benefits and Qualified Domestic Relations Orders.
A.
Subject to the exceptions provided below, no benefit which shall
be payable out of the plan to any person (including a participant
or his beneficiary), shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge.
Any attempt to anticipate, alienate, sell, transfer, assign, pledge,
encumber, or charge the same shall be void. Also, no such benefit
shall in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements or torts of any such person, nor shall it
be subject to attachment or legal process for or against such person,
and the same shall not be recognized by the chief administrative officer,
except to such extent as may be required by law.
B.
This provision shall not apply to the extent a participant or beneficiary is indebted to the plan, for any reason, under any provisions of this agreement. At the time a distribution is to be made to or for a participant's or beneficiary's benefit, such proportion of the amount distributed equal to such indebtedness shall be paid by the chief administrative officer to apply against or discharge such indebtedness. Prior to making a payment, however, the participant or beneficiary must be given written notice by the chief administrative officer that such indebtedness is to be so paid in whole or part from his participant's accrued benefits. If the participant or beneficiary does not agree that the indebtedness is a valid claim against his vested participant's accrued benefit, he/she shall be entitled to a review of the validity of the claim in accordance with procedures provided in § 1-609, Subsection 1.
C.
This provision shall not apply to a qualified domestic relations
order defined in Code § 414(p), and those other domestic
relations orders permitted to be so treated by the administrator under
the provisions of the Retirement Equity Act of 1984. The administrator
shall establish a written procedure to determine the qualified status
of domestic relations orders and to administer distributions under
such orders. Further, to the extent provided under a qualified domestic
relations order, a former spouse of a participant shall be treated
as the spouse or surviving spouse for all purposes under the plan.
9.
Indemnification of Fiduciaries. To the extent permitted by the Act
and regulations issued thereunder, the employer shall indemnify and
hold harmless all fiduciaries of the plan, as defined in the Act,
who are employees of the employer, whether or not named fiduciaries,
and defend the same, against any and all claims or liabilities which
may be asserted against any of them by reason of any action or omission
in the administration of the plan, except in the case of any fraud
or willful wrongdoing.
11.
Meaning of Certain Words. As used herein each gender shall include
all other genders and the singular shall include the plural and the
plural shall include the singular in all cases where such meaning
would be appropriate.
12.
Information be Furnished by the Employer. The employer shall furnish
to the chief administrative officer such information in the employer's
possession as the chief administrative officer shall require from
time to time to perform his duties under the plan.
13.
Service of Process. The chief administrative officer is the designated
agent of the plan for the service of process in connection with all
matters affecting the plan.
[Ord. 1992-6, 12/3/1992; as added by Ord. 2001-1, 6/7/2001,
§ 7]
1.
Calculation. Full service credit is provided for each year of military
service or fraction thereof, not to exceed five years, to any member
of the police force who was not employed by the Township prior to
such military service. The amount due for the purchase of credit for
military service other than intervening military service shall be
computed by applying the average normal cost rate for borough and
township police pension plans as certified by the Public Employee
Retirement Study Commission, but not to exceed 10%, to the member's
average annual rate of compensation over the first three years of
municipal service and multiplying the result by the number of years
and fractional part of a year of creditable nonintervening military
service being purchased together with interest at the rate of 4 3/4%
compounded annually from the date of initial entry into military service
to the date of payment.
2.
Election Period. Active participants as of the enactment date of
this section may exercise the option to purchase nonintervening military
service within three years of the enactment date. Police becoming
active participants after the enactment date of this section may exercise
the option to purchase nonintervening military service within three
years of their hire date. In either case, no service purchases would
be permitted after the later of three years from the enactment date
or three years from the date of hire.
3.
Purchase Period. In order to effectuate the purchase, participants
must make a lump-sum payment of the purchase amount no later than
60 days after the election is made.
[Ord. 2004-04, 10/7/2004, § 7]
2.
Early Retirement Date. The date the participant has attained the
later of age 60 and completed 10 years of service.
3.
Normal Form of Benefit. The normal retirement benefit payable to a retired benefit pursuant to § 1-604, Subsection 1, shall be:
A.
For a single participant, a monthly pension commencing on his retirement
date and continuing for life, with 120 payments guaranteed.
B.
For a married participant, a monthly pension for life with payments
continuing after the participant's death to the surviving spouse
of the participant equal to 50% of the pension the participant was
receiving at the time of his death. If no spouse survives or if the
spouse survives and subsequently dies, then the child or children
of the participant under the age of 18 years or, if attending college,
under or attaining the age of 23 years shall be entitled to receive
a pension calculated at 50% of the pension the participant was receiving
at the time of his death. For purposes of this section, the phrase
"attending college" shall mean the eligible children who are registered
at an accredited institution of higher learning and are carrying a
minimum courseload of seven credit hours per semester.
5.
Disability Retirement. A person who shall be entitled to a disability retirement shall receive a monthly benefit in an amount equal to 75% of the participant's monthly salary determined at the time the disability was incurred, provided that any participant who receives a benefit for the same injuries under the Social Security Act (49 STAT. 620, 42 U.S.C. § 301 et seq.) shall have his disability benefits offset or reduced by the amount of such benefits. For the purpose of this subsection, "salary" shall mean a participant's basic salary excluding bonus, overtime or other forms of extra pay received from the employer. Disability benefits shall commence as of the first date of the month coincident with or immediately following the determination of the participant's disability pursuant to § 1-605, Subsection 4, and continuing to the earliest of the participant's death, cessation of disability or attainment of normal retirement age. (A participant attaining normal retirement age shall thereafter receive normal retirement benefits per § 1-604, as amended.)
6.
Early Retirement Benefit. The amount of monthly retirement benefit
to be provided for each participant who retires on his early retirement
date shall be the accrued benefit if deferred to normal retirement
date; the actuarial equivalent of his accrued benefit if taken at
any time prior to normal retirement.
7.
Deferred Vested Benefits. Participants who terminate their employment for causes other than death prior to their normal retirement date will vest under the provisions outlined in § 1-608, except the vesting percentage will be determined in accordance with the following schedule:
|
Years of Service
|
Vested Percentage
|
|---|---|
|
1
|
10%
|
|
2
|
20%
|
|
3
|
30%
|
|
4
|
40%
|
|
5
|
50%
|
|
6
|
60%
|
|
7
|
70%
|
|
8
|
80%
|
|
9
|
90%
|
|
10
|
100%
|
8.
Upon the participant's death prior to his retirement date or
termination of employment, there shall be benefits payable in accord
with the following. For purpose of this section, the phrase "attending
college" shall mean the eligible child or children that are registered
at an accredited institution of higher learning and are carrying a
minimum courseload of seven credit hours per semester.
A.
The surviving spouse of a participant who was killed in service or,
if no spouse survives or if the spouse survives and subsequently dies,
then the child or children under the age of 18 years or, if attending
college, under or attaining the age of 23 years, of a participant
which was killed in service shall, during their lifetime in the case
of a surviving spouse or until reaching the age of 18 years or, if
attending college, under or attaining the age of 23 years in the case
of a child or children of the participant, be entitled to receive
a monthly pension benefit calculated at 100% of the monthly participant's
salary at the time of death. For the purpose of this subsection, "salary"
shall mean a participant's basic salary excluding bonus, overtime
or any other forms of extra pay received from the employer.
B.
The surviving spouse of a participant or, if no spouse survives or
if the spouse survives and subsequently dies, then the child or children
under the age of 18 years or, if attending college, under or attaining
the age of 23 years, of a participant who died shall, during her lifetime
in the case of a surviving spouse or until reaching the age of 18
years or, if attending college, under or attaining the age of 23 years
in the case of a child or children, be entitled to receive a pension
calculated at 50% of the pension the participant would have been receiving
had he/she been retired at the time of his death.
C.
The surviving spouse of a participant who died before his pension has vested or, if no spouse survives or if she survives and subsequently dies, then the child or children under the age of 18 years or, if attending college, under or attaining the age of 23 years, of the participant shall be entitled to receive the participant's compulsory employee contributions in accordance with § 1-608, Subsection 1C, unless the participant has designated another beneficiary for this purpose in accordance with § 1-608, Subsection 1C.
