[Ord. No. 278, 9/10/1990]
There is hereby established in the Borough a pension plan and
pension fund. The pension plan shall be known as the "Borough of Elizabethville
Non-Uniformed Employees Money Purchase Pension Plan" (hereinafter
"plan") The pension fund shall be known as the "Borough of Elizabethville
Non-Uniformed Employees Money Purchase Pension Fund" (hereinafter
"fund").[1]
[1]
Editor's Note: Ord. No. 340, adopted 4/11/2011, reaffirmed
the modification and amendment of the plan pursuant to MP Plan CL
2007, as restated 12/15/2008.
[Ord. No. 278, 9/10/1990]
The Borough Council is hereby authorized to enter into an agreement
of trust with a corporate fiduciary, which agreement of trust shall
permit the fiduciary to manage and operate the fund and to receive,
hold, invest and disburse any sum or sums as may be necessary to carry
out the plan. The Council shall determine the form and terms of any
such agreement of trust.
[Ord. No. 278, 9/10/1990]
1.
The fund shall be maintained in the following manner:
A.
Payments made by the Treasurer of the Commonwealth to the Treasurer
of the Borough from monies received from taxes paid upon premiums
by foreign casualty insurance companies and foreign fire insurance
companies pursuant to the General Municipal Pension System State Aid
Program.
B.
Payments made by other gifts, grants, devises or bequests to the
fund.
C.
Such other payments as may, from time to time, be made by the Borough
to the fund from the general revenue of the Borough.
D.
All such payments received shall be deemed to be part of the fund
and shall not be applied to any other account but shall be placed
with a fiduciary appointed by the Council. Payments required under
the plan shall not be a charge on any other fund in the Treasury of
the Borough.
[Ord. No. 278, 9/10/1990]
The fund shall be deposited with and managed and invested by
such corporate fiduciary as the Council shall, from time to time,
appoint and shall be subject to such regulations as the Council may,
from time to time, prescribe by resolution or ordinance.
[Ord. No. 278, 9/10/1990]
1.
The plan shall be administered by the Borough Council.
2.
The Borough Secretary shall keep minutes of the Council's proceedings
and all dates, records and documents pertaining to the Council's
administration of the plan. The Council may employ and suitably compensate
such actuarial and consulting services and advisory, clerical or other
employees and attorneys as it may deem necessary for the performance
of its duties. The expenses of the administration of the plan shall
be paid from the assets of the fund.
3.
The action of the Council shall be determined by the vote or other
affirmative expression of a majority of its members. Either the President
or the Secretary may execute any certificates or other written direction
on behalf of the Council.
4.
No Council member shall be liable for any act or omission of any
other Council member nor for any act or omission on his own part,
excepting only his own willful misconduct. The Borough shall indemnify
and save harmless each and every Council member against any and all
expenses and liabilities arising from the administration of the plan,
excepting only expenses and liabilities arising out of such Council
member's own willful misconduct.
5.
The Council shall make available to participants of the plan, for
examination during business hours, such of its records as pertain
only to the participant involved. The Council shall make its records
available to the proper governmental officials during business hours
and members of the general public upon 24 hours' notice.
6.
The Council, on behalf of the participants of the plan, shall enforce
the plan in accordance with the terms of this Part and shall have
all powers necessary to accomplish that purpose including, but not
limited to, the following:
A.
To determine all questions relating to the eligibility of employees
to become participants.
B.
To compute and certify to the fiduciary the amount and kind of benefits
payable to participants.
C.
To select any issuing company and annuity contract or other investment
which, in the opinion of the Council, will best carry out the purposes
of the plan.
D.
To make and publish such rules and regulations for the administration
of the plan as are not inconsistent with the terms of this Part.
7.
The Borough shall supply full and timely information to the Council
on all matters relating to the pay of all members, their retirement,
death or other cause of termination of employment and such other pertinent
data as the Council may require and the Council shall advise the fiduciary
with reasonable dispatch of such of the foregoing facts as may be
pertinent to the fiduciary's administration of the fund.
[Ord. No. 278, 9/10/1990]
1.
Each full-time non-union, non-uniformed employee of the Borough working
not less than 35 hours per week shall become a participant in the
plan on the January 1 after his date of employment.
2.
There shall be maintained a separate account covering each participant
under the plan. Such account shall be increased by the participant's
share of employer contributions, investment income, and market value
appreciation of the fund. It shall be decreased by the participant's
share of market value depreciation of the fund.
3.
A participant under this plan shall be entitled to an allocation
of the employer contribution as of each December 31 provided that
he is employed on such date. The employer contribution allocated to
the account of such eligible participant shall be equal to 5% of the
participant's compensation for such calendar year. Investment
income and market value appreciation or depreciation shall be allocated
to the participant's accounts on each December 31 in proportion
to the balances in their accounts on the previous January 1, less
distributions during the calendar year.
4.
The normal retirement date for each participant shall be the date
such participant attains age 65. Upon reaching his normal retirement
date, a participant shall be 100% vested in the amount in his employer
contribution account.
5.
If a participant remains employed after his normal retirement date,
payment of benefits shall not commence until he actually retires.
Such participant shall continue to receive allocations to his account
as he did before his normal retirement date. Upon actually retiring,
the participant shall be 100% vested in the amount in his employer
contribution account at his date of late retirement.
6.
A participant may retire before his normal retirement date if he
becomes disabled. Upon such disability retirement, the participant
shall be 100% vested in the amount in his employer contribution account
at his date of disability. "Disabled" means that the participant is
unable, by reason of illness (physical or mental) or injury, to perform
the duties which were his before the occurrence of such illness or
injury and shall be determined by the Council after consultation with
a physician chosen by the Council. Notwithstanding such definition,
a participant eligible for Social Security disability benefits shall
automatically satisfy the requirements for determining disability.
In the administration of this section, all employees shall be treated
in a uniform manner in similar circumstances.
7.
Upon the death of a participant or former participant at any time
before or after retirement or after termination, the beneficiary of
such participant shall be 100% vested in the amount in his employer
contribution account at the date of death. Each participant shall
have the right to designate his beneficiaries, including a contingent
death beneficiary, and shall have the right at any time to change
such beneficiaries. The foregoing designation shall be made in writing
on a form signed by the participant and supplied by and filed with
the Council.
8.
A participant shall be eligible to voluntarily contribute to the
plan during any calendar year up to 10% of his compensation for such
calendar year. There shall be maintained an additional separate account
for each participant who elects to voluntarily contribute to the plan.
Such account shall be increased by the participant's voluntary
contributions and his share of investment income and market value
appreciation or depreciation of the fund. Investment income and market
value appreciation or depreciation shall be allocated to the participants'
employee contribution accounts in the same manner as to the participants'
employer contribution accounts.
9.
Vested Benefits.
A.
If a participant ceases participation, except by retirement, disability
or death, his benefits under the plan shall be limited to those provided
under the vesting schedule set forth in the following subsection.
B.
Upon such termination of participation, the participant shall have
a vested interest equal to the amount in his employer contribution
account at the date of termination multiplied by the vesting percentage
based upon his years of service to the date of termination and determined
as follows:
|
Years of Service
|
Vesting Percentage
|
|---|---|
|
0 - 2 years
|
0%
|
|
3
|
20%
|
|
4
|
40%
|
|
5
|
60%
|
|
6
|
80%
|
|
7 or more years
|
100%
|
C.
The non-vested portion of a participant's employer contribution
account shall be forfeited and used to reduce future employer contributions.
D.
A participant is always 100% vested in his employee contribution
account.
10.
A participant or beneficiary may elect to receive distribution of
his account in one of the optional forms of payment outlined below.
The participant or beneficiary shall file a written request for benefits
with the Council before commencement of payments. Optional forms of
payment include:
A.
A lump sum payment; however, if the vested account is no more than
$3,500, benefits shall automatically be paid in a lump sum.
B.
Installment payments, over a period of 10 or 15 years.
C.
A life annuity of any type issued by an insurance company on the
life of the participant or beneficiary for such amount as the account
will purchase. The ownership of the annuity contract shall remain
with the fund, unless the Council determines otherwise. Any annuity
contract distributed herefrom shall be nontransferable. The application
and directions to the insurance company for such annuity contract
shall be made by the Council. Any dividend, refund or recovery or
an annuity contract shall be credited to the participant or beneficiary
for whom the annuity contract was purchased.
[Ord. No. 278, 9/10/1990]
All payments under the plan shall be, to the fullest extent
permitted by law, free and clear of any debts, contracts, engagements,
anticipations or liability to levy, attachment, execution or sequestration
against the recipient, and shall not be subject to sale, assignment,
transfer, claim, judgment, or bankruptcy proceedings against the recipient
of such payments, whether voluntary or involuntary.
[Ord. No. 278, 9/19/1990]
The plan and fund established by this Part may be discontinued,
modified, alternated, terminated or repealed, according to law, by
resolution.
