[Ord. No. 2014-01, 11/6/2014]
The Township of Vernon, Crawford County, Pennsylvania, hereby establishes a defined contribution pension plan for full-time nonuniformed employees of the Township of Vernon, Crawford County, Pennsylvania, hired on or after January 1, 2015.
[Ord. No. 2014-01, 11/6/2014]
1. 
As used in this Part, the following terms shall have the meanings indicated:
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any December 31 after the effective date.
BOARD
The Board of Supervisors of the Township of Vernon, Crawford County, Pennsylvania.
COMPENSATION
All W-2 earnings subject to state income tax paid by the Township to the member during a plan year.
DISABILITY
Disability upon eligibility for social security disability.
EFFECTIVE DATE
The effective date of this Part 7A shall be January 1, 2015.
EMPLOYEE
Any nonuniformed personnel hired on or after January 1, 2015, in the full-time employment of the Township of Vernon, Crawford County, Pennsylvania, whose customary employment by the Township is for not less than 35 hours per week.
FORFEITURE
The nonvested portion of a member's account.
FUND
All assets held by the trustee under the trust agreement.
LATE RETIREMENT DATE
Any date later than normal retirement at which a member retires.
MEMBER
Any employee who has satisfied the eligibility requirements established in § 1-7A03 of this Part.
MEMBER ACCOUNT
Each member's individual account maintained within the fund, to include the prorated share of investment earnings or losses.
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following the later of the date on which the member completes five years of service and on which the member attains the age of 62 years.
PAY PERIOD
The plan year.
PLAN
The Vernon Township Nonuniformed Employees Defined Contribution Plan.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.
ROLLOVER ACCOUNT
The distribution amount transferred to the plan by a member from a qualified pension or profit-sharing plan.
SERVICE
The aggregate of a member's total periods of employment as a full-time employee of the Township of Vernon. If a member enters military service, either voluntarily or by conscription, after he has been employed for at least six months, such time spent in the Armed Forces of the United States during a period of national emergency shall be counted as service for purposes of this plan, provided that such member returns to service with the Township within six months after his discharge or release from such active duty in the Armed Forces of the United States. The time spent in military service due to voluntary extension of such military service during a period of peacetime shall not be included as service for the purpose of this plan.
TOWNSHIP
Vernon Township, Crawford County, Pennsylvania.
TRUST AGREEMENT
The contract between the Township and the trustee establishing the terms by which and under which the fund is invested, distributed, accounted for and terminated, as the same now exists and as it may hereafter be amended.
TRUSTEE
The Board of Supervisors of Vernon Township, Crawford County, Pennsylvania, or any other agency or person appointed by the Board to serve in that capacity as set forth in the trust agreement.
VESTED INTEREST
The nonforfeitable right to any immediate or deferred benefit in the amount which is equal to the sum of Subsections A and B below:
A. 
The value on that date of that portion of the participant's account that is attributable to and derived from a participant's own contributions, if any.
B. 
The value on that date of that portion of the participant's account that is attributable to and derived from employer contributions multiplied by his vesting percentage determined on the date applicable.
C. 
One hundred percent vesting upon death, disability or normal retirement.
VESTING PERCENTAGE
The member's nonforfeitable interest to his account plus earnings thereon computed in accordance with the following schedule based on years of service with the Township:
Full Years of Service
Percentage Vested
Less than 4
0%
4
40%
5
50%
6
60%
7
70%
8
80%
9
90%
10 or more
100%
[Ord. No. 2014-01, 11/6/2014]
1. 
All persons who are employees as of the effective date hereof may elect to be a member as of the effective date.
2. 
Any person who becomes an employee after the effective date hereof shall become a member.
[Ord. No. 2014-01, 11/6/2014]
1. 
Township Contributions. The Township shall contribute on behalf of each member an amount equal to the fixed percentage of his compensation for such plan year as had been established by the Board and which may, from time to time, be changed by the Board. The current level, as of the effective date of this Part, is 5% of compensation. Should the Township, for any reason, fail to make a contribution as provided for herein, then such deficiency shall be made up in subsequent years. The Township, at its own discretion, may contribute more than the fixed percentage; provided, however, that any additional contributions shall be distributed on an equal basis.
2. 
Members' Contributions. Members shall not be required to contribute into this plan.
3. 
Rollovers and Transfers. The trustee may receive on behalf of a member all or part of the entire amount of any distribution from a terminated pension or profit-sharing plan or any lump-sum distribution theretofore received by such member from a pension or profit-sharing plan meeting the requirements of Internal Revenue Code Section 401(a).
4. 
State Aid. The portion of the payments made by the State Treasurer to the Township and designated by the Board to be allocated to the Nonuniformed Employee's Pension Plan from money received from taxes paid upon premiums by foreign casualty insurance companies shall be used to reduce or eliminate the Township's contributions pursuant to Subsection 1 hereof and offset the payment of any administrative expenses.
5. 
Other Contributions. The fund shall be authorized to receive, by gift, grant, devise or bequest, any money or property, real, personal or mixed, in trust for the benefit of the fund. The trustee shall be subject to such directions not inconsistent with this plan as the donors of such funds and property may prescribe.
6. 
Forfeiture. Forfeitures will remain assets of the trust and be reallocated to the member account in the proportion that an individual member's compensation bears to the total of all members' compensation. The forfeiture will occur in the plan year in which a partially vested terminated participant is paid his vested account balance. If the member is 0% vested, the forfeiture will occur in the plan year the member separated. The forfeiture will be only allocated to members employed on the last day of the plan year.
7. 
Accounting and Allocations.
A. 
The administrator shall establish and maintain an account in the name of each member to which the administrator shall credit, as of each anniversary date, all amounts allocated to each such member as hereafter set forth.
B. 
The Township shall provide the administrator with all information required by the administrator to make a proper allocation of the Township's contribution for each plan year. Within 45 days after the date of receipt by the administrator of such information, the administrator shall allocate such contribution to each member's account in accordance with Subsection 1.
C. 
As of each anniversary date before allocation of Township contributions, any earnings or losses (net appreciation or net depreciation) of the trust fund shall be allocated in the same proportion that each member's and former member's nonsegregated account bears to the total of all members' and former members' nonsegregated accounts as of such date.
[Ord. No. 2014-01, 11/6/2014]
1. 
Normal Retirement. A member who attains his normal retirement date shall be considered fully vested. If a member retires on his normal retirement date, he shall receive a distribution of the vested value of his member account valued as of his prior anniversary date plus contribution in the year of retirement.
2. 
Late Retirement. A member may continue in the service of the Township after his normal retirement date and in such event shall retire on his late retirement date. Such member shall continue as a member under this plan until such late retirement date. The member shall have a vesting percentage as determined by the definition of "vesting percentage" in § 1-7A02 hereof and shall receive a distribution of the vested value of the member account valued as of his prior anniversary date plus contribution in the year of retirement.
[Ord. No. 2014-01, 11/6/2014]
1. 
Death Prior to Retirement. If a member dies prior to the commencement of pension benefits, his designated beneficiary shall be entitled to the vested interest of the member's account determined pursuant to the definition of "vesting percentage" in § 1-7A02 hereof and valued as of the prior anniversary date plus contribution in the year death occurred. If no such beneficiary survives, the amount will be paid to the member's estate.
[Ord. No. 2014-01, 11/6/2014]
1. 
Settlement Options. Distributions will be made in a lump sum.
[Ord. No. 2014-01, 11/6/2014]
1. 
Distribution. As of a member's termination of employment, he shall receive a distribution of his entire vested interest valued at the end of the prior anniversary date during which termination occurred plus contribution in the year terminated.
2. 
Reemployment Rights. If the terminated member is rehired by the Township and re-enrolls in the plan within 12 consecutive months of termination, he shall continue to participate in the plan as if such termination had not occurred.
[Ord. No. 2014-01, 11/6/2014]
1. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 1-7A05, 1-7A06, 1-7A07 and 1-7A08, in accordance with the instructions received from the Board; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
2. 
The Township may employ an actuary, investment advisors, counsel, or other professional consultants from time to time in connection with the operation of the fund or of this plan. Such persons or entities shall be compensated by the Township at such rates as may be agreed upon by the Board. Such compensation may be paid from the fund.
3. 
The trustee shall make an annual determination of the fair market value of the fund as of the anniversary date and as of such additional dates as the Board may direct. The fair market value of the fund shall be reported to the members at least annually.
[Ord. No. 2014-01, 11/6/2014]
1. 
The Township may amend, curtail or terminate this plan at any time; provided, however, that no amendments affecting the trustee shall be made without its consent (other than an amendment having the effect of termination of the plan); nor shall any amendment be made which will in any manner divert any part of the fund to any purpose other than the exclusive benefit of members or their beneficiaries (except upon termination such diversion may be made after all of the fixed and contingent liabilities to members and their beneficiaries have been met); nor shall any amendment be made at any time which will in any manner divest any benefit then vested in a member.
2. 
In the event of termination of this plan, the Board shall allocate the assets then remaining in the fund, to the extent that such assets are sufficient, to members and retired members in an amount equal to their respective member account balance reduced in the cases of retired members by any prior distributions made to them.
3. 
After allocation of the funds, the Board shall determine whether to operate the fund as the source of whatever payments the money so allocated will provide.
[Ord. No. 2014-01, 11/6/2014]
1. 
No benefit under this plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance, nor to seizure attachment or other legal process for the debts of any members or member's beneficiary. This provision shall not apply to a qualified domestic relations order and those other domestic relations orders permitted to be so treated by the Township under the provisions of the Retirement Equity Act of 1984. The Township shall establish a written procedure to determine the qualified status of domestic relations orders and to administer distributions under such qualified 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 this plan.
2. 
Any person dealing with the trustee may rely upon a copy of this plan and any amendments thereto certified to be a true and correct copy by the trustee.
3. 
Anything heretofore contained in this plan to the contrary notwithstanding, it is the intention of the Township that any action herein provided to be taken by the trustee shall be taken only in accordance with written instructions of the Township given in such detail as to preclude the exercise by the trustee of discretion in the performance thereof.
4. 
Under no circumstances, whether upon amendment or termination of this plan or otherwise, shall any part of the fund be used for or diverted to any purpose other than the exclusive benefit of members or their beneficiaries until all of the actuarial obligations to such members or members' beneficiaries have been met.
5. 
If the Township deems any person incapable of receiving benefits to which he or she is entitled by reason of minority, illness, infirmity, or other incapacity, it may direct the trustee to make payment directly for the benefit of such person, to the guardian or trustee of such person, whose receipt shall be a complete acquittance therefor. Such payment shall, to the extent thereof, discharge all liability of the Township, the trustee and the fund.
6. 
Should any provision of this plan be determined to be void by any court, the plan will continue to operate and, to the extent necessary, will be deemed not to include the provision determined to be void.
7. 
Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.
8. 
This plan shall be construed and applied under the laws of the Commonwealth of Pennsylvania where not in conflict with federal laws, which shall prevail.
9. 
All ordinances or resolutions, or portions thereof, inconsistent herewith are hereby repealed.