CROSS REFERENCES
Employees' pension fund — See 3rd Class
§ 4340 et seq. (53 P.S. § 39340 et seq.).
City Controller to administer — See ADM. 121.04.
[Ord. 3-2011, passed 1-19-2011]
A Retirement System for the retirement and pensioning of officers
and employees of the City of Erie, other than firemen and policemen,
was established effective 7-1-1946 under the provisions of Act 362
of 5-23-1945, (P.L. 903), as amended (53 P.S. § 36371 et
seq.) by the adoption of Ordinance 15-1962 on 5-9-1962. The Plan was
amended and restated effective as of 1-1-2010, except where otherwise
specified to meet the requirements for qualification under the Internal
Revenue Code.
[Ord. 3-2011, passed 1-19-2011; Ord. 27-2014, passed 8-6-2014]
The following words or phrases as used in this Plan shall have
the meaning set below unless a different meaning is clearly required
by the context:
(a)
ACCRUED RETIREMENT BENEFIT — The amount of Retirement Benefit credited to the Participant as of any date pursuant to Section 145.07 calculated on the basis of the Participant's Final Pay determined as of such date and multiplied by a fraction not to exceed 1.0, the numerator of which shall be the Participant's completed years of Service as of such date and the denominator of which shall be the number of years of Service which the Participant would complete as of his/her Normal Retirement Date under the Plan, assuming no interruption of Service to his/her Normal Retirement Date.
(b)
ACT 205 — The Municipal Pension Plan Funding Standard and Recovery
Act, enacted as P.L. 1005 (Act 205 of 1984), 53 P.S. § 895.101
et seq., as the same may be amended from time to time.
(c)
ACTUARIAL EQUIVALENT — A benefit or amount
of equivalent actuarial value computed, except as otherwise specified
herein, on the basis of the RP-2014 total data set mortality adjusted
to 2006 for base rates and projected to the year of the calculation
using the MP mortality improvement scale, and interest at 6% per annum.
[Amended by Ord. 78-2019, passed 12-18-2019]
(d)
ACTUARIALLY SOUND — A Plan that is being funded annually at
a level not lower than the financial requirements of the Plan pursuant
to Act 205.
(e)
ACTUARY — The person, partnership, association or corporation
that at any given time serves as Actuary to the plan; provided that
such Actuary must be an "Approved Actuary" as defined in Act 205.
(f)
AGE — The age of a Participant calculated as of his/her last
birthday.
(h)
CITY — The City of Erie, Pennsylvania.
(i)
CITY COUNCIL or COUNCIL — The governing body of the Employer.
(j)
CODE — The Internal Revenue Code of 1986, as amended or replaced
from time to time.
(k)
COMPENSATION — With respect to any Participant means such Participant's wages as defined in Code Section 3401(a) and all other payments of compensation by the City (in the course of the City's business) for a Plan Year for which the City is required to furnish the Participant a written statement under Code Sections 6041(d), 6051(a)(3) and 6052. "Compensation" must be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401(a)(2)). Compensation shall include contributions "picked up" under Section 145.05(b).
(m)
EFFECTIVE DATE — The effective date of this Amendment and Restatement
of the Plan is 1-1-2010, except where otherwise specified in this
Plan.
(n)
EMPLOYEE — Any non-uniformed officer or employee of the City
who is duly hired, appointed or elected to a permanent position, other
than uniformed firemen and policemen. This definition shall not include
any persons hired, elected or appointed for the first time to City
service on less than a full-time basis after the effective date of
Ordinance 26, 1992, passed 5-20-1992, such as members of Council.
(o)
EMPLOYER — The City of Erie.
(p)
FINAL PAY — A Participant's Compensation paid by the City
in the form of regular pay, longevity increments, holiday pay, overtime
pay, shift differential pay and contributions to the Plan by the Participant
which are "picked up" by the City under Code Section 414(h)(2), but
excluding sell back of unused sick leave pay, sell back of unused
vacation time, clothing allowance and cleaning allowance, at the greater
of: (i) the annual rate in effect at the earlier of the time of the
Participant's termination of employment or retirement under the
Plan, or (ii) the highest average annual Compensation within the meaning
of Subparagraph (k) which the Participant received during any five
Plan Years of the Participant's Service with the City prior to
the Participant's termination of employment or retirement. Effective
as of 1-1-1998, Final Pay includes elective amounts of Compensation
not included in income by reason of Code Sections 125, 132(f)(4),
401(k), 402(g)(3), 403(b) or 457(b).
The Final Pay which is taken into account in determining benefit
accruals in any Plan Year for each Employee who first became a Participant
in the Plan on or after 1-1-1989 is subject to the annual limits of
Code Section 401(a)(17), which specifies $200,000 for the Plan Years
1989 through 1993, reduced by OBRA-1993 to $150,000 for the 1994 Plan
Year, increased to $160,000 for the 1996 Plan Year, and as adjusted
for the cost-of-living in accordance with Code Section 401(a)(17)(B)
to $200,000 for the 2002 Plan Year. The $200,000 limit on Compensation
included in Final Pay shall be adjusted after the 2002 Plan Year for
cost-of-living increases in accordance with Code Section 401(a)(17)(B).
Family Aggregation rules do not apply for Plan years beginning after
12-31-1996.
(q)
INTERVENING UNIFORMED SERVICE — Honorable active duty service
in the Uniformed Services by a Participant for up to five years (subject
to extension of such five-year period as permitted by USERRA), whether
on a voluntary or involuntary basis, and who returns to the employ
of the Employer at the conclusion of such Uniformed Service within
the Report-Back Period permitted by USERRA.
(s)
NORMAL RETIREMENT DATE — The date on which a Participant shall
have accrued 20 years of Service as an Employee of the Employer, and
who shall have attained the age of 55 years.
(t)
PARTICIPANT — Any Employee who is contributing to the Pension Fund out of his/her Compensation the amounts required by Section 145.05(b).
(u)
PENSION FUND — The assets of this Plan administered under the
terms of this Plan and Act 205, and which shall include all money,
property, investments, policies and contracts that are a part of the
Plan, which shall be held in trust by the City according to the laws
of the Commonwealth of Pennsylvania.
(v)
PICK-UP CONTRIBUTIONS — Employee Contributions otherwise due
from Participants in the Plan that are made by the City on a pre-federal
(but not pre-Pennsylvania) income tax basis pursuant to Subsection
414(h)(2) of the Code commencing 1-1-1994.
(w)
PLAN — The defined benefit pension plan set forth in this Article
145 (including any trust forming a part hereof), as amended and supplemented
from time to time, all of which shall be known as the City of Erie
Officers' and Employees' Retirement Plan.
(x)
PLAN ADMINISTRATOR — Shall be the Board which is designated as the Plan Administrator in Subsection 145.03 below.
(y)
PLAN YEAR — Each twelve-month period beginning on January 1st
and ending on the following December 31st.
(z)
PREPARATION TIME — The reasonable period that the Employee
may need after leaving his/her position with the Employer to put his/her
affairs in order, or to prepare or travel for duty in one of the Uniformed
Services as allowed under USERRA.
(aa)
PRIOR MILITARY SERVICE — Service on active duty in the
U.S. Armed Forces completed prior to the Participant's initial
employment by the Employer as an Employee, as evidenced by a Department
of Defense Form 214 issued to the Participant.
(bb)
REPAYMENT PERIOD — The period following the re-employment
by the Employer of a Participant after Intervening Uniformed Service
within which the Participant must repay to the Plan (1) any Employee
Contributions which the Participant withdrew from the Plan in connection
with such Intervening Uniformed Service, with interest at the annual
rate of return on Plan assets which is calculated by the Plan Actuary,
compounded annually from the date of withdrawal to the date of repayment,
and (2) the amount of any Employee Contributions otherwise due to
the Plan during the Participant's Intervening Uniformed Service
and related Report-Back Periods, without interest, provided that the
Participant remains employed with the Employer throughout such Repayment
Period. This Repayment Period equals three times the period of the
Participant's Uniformed Service, but not more than five years.
(cc)
REPORT-BACK PERIOD — The period allowed under USERRA for
a Participant to report back to work or apply for re-employment with
the Employer after completion of Intervening Uniformed Service. Depending
on the length of the Participant's Intervening Uniformed Service,
s/he is allowed up to 90 days following completion of Intervening
Uniformed Service to apply for re-employment or report back to work
at the Employer. This Report-Back Period is extended for the period
that is necessary (up to two years) for a Participant to recover from
an illness or injury incurred in or aggravated during Uniformed Service.
(ee)
RETIREMENT DATE — The first day coincident with or following
a Participant's 55th birthday and termination of employment with
a Normal Retirement Benefit or the first day coincident with or following
a Participant's 60th birthday and termination of employment with
a Vested Reduced Retirement Benefit.
(ff)
SERVICE — The total number of full years during which a Participant was an Employee of the Employer and made the required contributions to the Plan from Compensation paid by the City, or with respect to Prior Military Service or Intervening Uniformed Service which the Participant purchased or was credited under Sections 145.05(c) or (d) below. Service does not include any period for which the Participant's contributions were refunded and not timely repaid to the Fund. Periods of layoff, suspension or leave of absence do not interrupt Service, but are not credited to the accrual of Retirement Benefits payable under the Plan except as provided in the case of purchase of Prior Military Service or Intervening Uniformed Service under Sections 145.05(c) or (d) below. No Participant may purchase Service credit for any period of active duty Military or Uniformed Service under this Plan with respect to which s/he purchases or has purchased similar credit under any other pension plan of the Commonwealth of Pennsylvania or its subdivisions in which s/he is a Participant.
(gg)
SERVICE INCREMENT — The component of monthly Retirement Benefit attributable to full years of Service above 20, pursuant to Section 145.07(a)(2) below.
(hh)
SURVIVING SPOUSE — If married prior to retirement means
a living individual who was legally married to the Participant and
is married to the Participant at the time of the Participant's
death. If married post-retirement- a living individual who was legally
married to the Participant and is married to the Participant at the
time of the Participant's death and for the 12 months immediately
preceding the participant's death.
(ii)
SURVIVOR — The Participant's Surviving Spouse. If
there is no Surviving Spouse following the death of the Participant,
or at the subsequent death of the Surviving Spouse, "Survivor" shall
mean the surviving children of the deceased Participant in equal shares
so long as they are under the age of 18.
(jj)
UNIFORMED SERVICE AND UNIFORMED SERVICES — Active duty
in the Armed Forces of the United States (which include the Army,
Navy, Marine Corps, Air Force, Coast Guard, and National Guard and
their Reserve components), the Army National Guard and the Air National
Guard when engaged in active duty training or full-time National Guard
duty, the commissioned corps of the Public Health Service, and any
other category of persons designated by the President in time of war
or national emergency, or specified in regulations promulgated under
USERRA, together with any period for which an Employee is absent from
the employ of the Employer for a determination of the Employee's
fitness to perform any such duty or for the purpose of performing
funeral honors duty as authorized by 10 USCS § 12503 or
32 USCS § 115. Uniformed Service shall also include any
related Preparation Time. If an Employee is dismissed or separated
from Uniformed Service under other than honorable conditions that
related period of Uniformed Service shall not be credited as Service
under the Plan.
(kk)
USERRA — The Uniformed Services and Reemployment Rights
Act of 1994, 38 USC §§ 4301 et seq., as amended from
time to time.
(ll)
VESTED BENEFIT AND VESTED REDUCED BENEFIT — Participants
shall be vested in the Retirement Benefit that they have accrued in
the Plan after at least 12 years of Service. Being "vested" means
that the Accrued Retirement Benefit to which the Participant is credited
as of any date cannot be forfeited unless the Participant dies without
a Survivor. In that event any undistributed Employee Contributions
shall be refunded to the Participant's Estate, without interest.
Periods of layoff, suspension or leave of absence do not interrupt
Service, but are not credited to the accrual of Retirement Benefits
payable under the Plan, except as required by USERRA.
The Vested Reduced Benefit to which a Participant who has completed
the minimum number of years of Service required for vesting is calculated
by multiplying the Normal Retirement Benefit to which the Participant
would be entitled at age 60 if s/he had completed 20 years of Service
(but using the actual Final Pay which the Participant had received
to the date his/her employment by the City was terminated) by the
fraction determined by dividing the Participant's actual full
years of Service by 20, provided that the amount of such monthly Retirement
Benefit shall be reduced by 3% for the remainder of the twenty-year
period of Service which would have been required for the Participant
to receive an unreduced Normal Retirement Benefit. In the event that
the City terminates the Plan or discontinues making contributions
to it, the Accrued Retirement Benefit of all Participants shall become
fully vested, to the extent funded, regardless of the Participant's
years of Service.
[Ord. 3-2011, passed 1-19-2011]
(a)
There is hereby established the Officers' and Employees'
Retirement Board which shall consist of the Mayor, the City Controller,
the Business Administrator, such Administrator having the same functions
as the Director of Finance as set forth in Pennsylvania's Third
Class City Code, a member of Council chosen by Council, three employees
to be chosen by the Participants contributing to the Retirement Fund;
and a retired City employee receiving a City Pension under the Plan,
such appointment to be made by the Mayor from any name or names submitted
by the Erie City Retirees Association, subject to confirmation by
Council. Where a retired City Employee Association exists, nominations
for appointment shall be accepted by the Mayor and Council. It shall
be the duty of the Board to register all persons employed by the City
on a permanent, full-time basis, as provided for by ordinance, other
than firemen and policemen, and to administer the collections and
distributions of the Fund herein provided for, and make such reasonable
rules in the premises as the Board may deem necessary to carry into
effect the provisions of this article. A majority of the members of
the Board shall constitute a quorum.
(b)
The three employees chosen by the Participants contributing to the
Retirement Fund shall serve a term of four years. In the event that
an employee so elected is unable to complete his/her term and a vacancy
exists, then an employee shall be elected by the Participants contributing
to the Retirement System to fill such unexpired term.
(1)
The first regular election shall take place in September of
1989, and in September of every fourth year thereafter.
(2)
Each of the bargaining units representing the blue collar, white
collar and fire non-suppression civilian employees shall make their
respective nominations for members to be elected to the Board from
the floor at their respective meetings, with acceptance of such nomination
in person or by the nominee's formal written notice given at
the time of nomination. Each of such bargaining units shall submit
their nominations to the Board prior to September 1 of the year of
the election.
(3)
The Board shall give proper notice of the individuals nominated
for election to the Board to all eligible voting Participants at least
15 days prior to each election.
(4)
Elections shall be by secret ballot or by voting machine, with
provisions affording all eligible voting participants the opportunity
to vote.
(5)
Eligible voting Participants shall have the opportunity to vote
for three individuals, with the individual receiving the highest number
of votes cast for the nominee of the blue collar bargaining unit employees
to be declared elected, the individual receiving the highest number
of votes cast for the nominee of the white collar bargaining unit
employees to be declared elected, and the individual receiving the
highest number of votes cast for the nominee of the fire nonsuppression
civilian employees under the Firefighters' union collective bargaining
agreement to be declared elected.
In the event that no fire nonsuppression civilian employees
under the Firefighters' union collective bargaining unit participate
in the Plan the number of representatives elected by Participants
contributing to the Plan shall be reduced to two individuals, one
a member of the white collar bargaining unit and the other a member
of the blue collar bargaining unit.
(6)
Those individuals so elected shall take office at the first
meeting of the Officers and Employees Retirement Board held in January
of the year following such election.
(c)
It shall be the duty of the Board to receive and retain and, when
deemed advisable, to invest the funds payable in accordance with the
provisions of this article and to pay the amount of Retirement Benefits
due to the Participants.
[Ord. 3-2011, passed 1-19-2011]
The head of every department and office employing persons entitled
under the provisions of this article to receive a Retirement Benefit
shall certify to the Board all persons so employed and the amount
of compensation which is paid to each employee, together with dismissals,
resignations or terminations of service, and from the records of their
office or department shall furnish such other relevant information
as the Board shall require.
[Ord. 3-2011, passed 1-19-2011]
(a)
Contributions by employer. Out of all taxes and income of the City,
Council shall annually set aside and appropriate to the Board a sum
sufficient to maintain the Retirement Benefits due under this article
and to satisfy the minimum funding standards of Act 205 of 1984.
(b)
Participant contributions. Participant contributions to the Pension
Fund shall be made as follows:
(1)
All officers and employees of the City shall pay into such Fund
monthly an amount equal to 6 1/2% of their monthly Compensation,
which shall be applied to the purpose of this article.
(2)
If any Retirement Benefit is granted to a person who has not
been a contributor to the Fund for an aggregate period of 20 years,
such person shall be required to pay to the Board for the benefit
of the Fund monthly an amount equal to 3% of his/her Retirement Benefit
deducted from his/her monthly Retirement Benefit, until such time
as his contributions shall have been extended to a period of 20 years.
(3)
No Participant shall have the option of choosing to receive
these contributions in cash instead of having them paid by the Employer
to the Plan. No Participant shall be allowed to withdraw his/her contributions
from the Retirement Fund while employed by the City.
(4)
Commencement of contributions. Contributions shall commence by payroll deductions upon registration by the Board of persons employed by the City on a permanent, full-time basis in accordance with Subsection 145.03(a). No officer or individual in the administration of the City has authority to countermand this requirement for automatic payroll deduction of Employee contributions to the Plan.
(5)
Discontinuance of contributions. Contributions shall discontinue
at Retirement, death, termination of employment or change of employment
status to part-time.
(6)
Refund of contributions. If the employment by the City of a Participant who has not reached the age of 55 is terminated, voluntarily or involuntarily, prior to accruing 20 Years of Service, upon application to the Board s/he shall be entitled to the refund of his/her Participant Contributions, without interest, in accordance with the provisions of Subsection 145.08.
(7)
Pick-up contributions. Effective 1-1-1994, contributions to
the Retirement Fund by Participants shall be picked-up by the City
under Code Section 414(h)(2). Contributions picked-up under this Code
Section shall be considered Employee contributions for all other purposes.
(8)
Any Participant receiving either Workers' Compensation
or long-term sickness and accident benefits shall return to the Fund
his/her contributions owed during the period of such disability or
illness prior to his/her Retirement Date, or the Board shall deduct
any amounts which a Participant owes under this subparagraph from
Retirement Benefits payable hereunder.
(c)
Purchase of prior military service.
(1)
Any Participant who is a contributor to the Plan and who has
served in the Armed Forces of the United States subsequent to September
1, 1940, but who was not a Participant in the Plan prior to such Military
Service, shall be entitled to purchase Military Service for credit
toward the accrual of a full pension under the Plan in accordance
with the definition of Normal Retirement Benefit and the provisions
of this subparagraph for and the provisions of this subparagraph for
each year or fraction thereof, not to exceed five years of such Prior
Military Service. Credit for Service under the Plan for Prior Military
Service shall be given only upon payment to the Pension Fund by the
Participant of an amount equal to (i) 6% (3% if hired before 1-1-1976)
of the Participant's monthly Compensation determined at the time
of his/her initial employment by the City during the period of Prior
Military Service for which the Participant desires credit for Service
under the Plan, and (ii) the contributions which the City would have
otherwise paid on account of such Prior Military Service. Participants
electing to purchase Service credit for Military Service in the Armed
Forces of the United States subsequent to September 1, 1940, shall
make such election in writing within six months of employment by the
City, and shall pay the total sum to the Pension Fund within 24 months
of the date of their election.
(2)
However, for any Participant hired on or after December 1, 2006
such purchased Prior Military Service shall not be credited towards
the accrual of a Normal Retirement Benefit, a Vested Benefit, or a
Vested Reduced Benefit until the Participant has accrued at least
12 years of non-Military and non-Uniformed Service.
(3)
No Participant may purchase Service credit for any period of
active duty military service under this Plan with respect to which
s/he purchases or has purchased similar credit under any other pension
plan of the Commonwealth of Pennsylvania in which s/he is a Participant.
(d)
Credit for and purchase of intervening uniformed service.
(1)
A former Employee who serves more than five years in Intervening
Uniformed Service (not counting any related Report-Back Period and
necessary Preparation Time included in such Uniformed Service) does
not have any right under USERRA to be re-employed by the Employer
or to receive Service credit under the Plan for such Uniformed Service.
However, the five-year service limit is extended under the Final Regulations
issued by the Department of Labor under USERRA for additional periods
of active duty in the Uniformed Services required by military necessity,
national emergency or in support of a critical mission of the Uniformed
Service, and not within the control of the former Participant.
(2)
Upon re-employment by the Employer of a Participant after completing
a period of Intervening Uniformed Service following application within
the Report-Back Period the Participant has the option (i) to repay
any amounts previously withdrawn by the Participant from the Plan
in connection with such Uniformed Service, with interest at the annual
rate of return on Plan assets which is calculated by the Plan Actuary,
compounded annually from the date of withdrawal to the date of repayment,
and (ii) to make-up any Employee Contributions that would have been
due to the Plan during such period of Intervening Uniformed Service
and related Report Back Period, without interest.
(3)
The Employee's rate of pay and required contribution rate
during said Intervening Uniformed Service and Report-Back Periods
shall be calculated using the rate of pay that the Employee would
have received and the contribution rate that the Employee would have
been required to make had s/he not been absent during such intervening
Uniformed Service and Report-Back periods, or if not reasonably certain,
then it shall be the Employee's average level of Compensation
and rate of contribution during the twelve-month or shorter period
of employment immediately preceding his/her Intervening Uniformed
Service.
(4)
The Participant has the Repayment Period within which to repay
to the Plan any such Employee withdrawals with interest and such Employee
make-up Contributions without interest.
(5)
At the time of, and to the extent of, the Participant's
repayment to the Plan of any such Employee withdrawals with interest
and of such Employee make-up Contributions without interest, the Employer
shall pay the Employer Contributions to the Plan that relate to and
are contingent upon the Participant's restoration to the Plan
of the Employee Contributions withdrawn in connection with or otherwise
due during such Intervening Uniformed Service and Report-Back Periods.
(6)
However, any Intervening Uniformed Service for which any Participant
hired on or after December 1, 2006 makes up Employee Contributions
within the Repayment Period shall not be credited towards the accrual
of a Normal Retirement Benefit, a Vested Benefit, or a Vested Reduced
Benefit until the Participant has accrued at least 12 years of non-Military
and non-Uniformed Service.
(7)
To the extent that the preceding conditions are met within the
Repayment Period the effect of intervening Uniformed Service and related
Report-Back Periods upon the Retirement Benefit of a Participant retiring
from the Plan shall be the same as though the Participant had remained
continuously employed by the Employer during such Periods.
(8)
No Participant may purchase Service credit for any period of
active duty military service under this Plan with respect to which
s/he purchases or has purchased similar credit under any other pension
plan of the Commonwealth of Pennsylvania in which s/he is a Participant.
(e)
Forfeitures. Upon the forfeiture of any non-vested portion of a Participant's
Accrued Benefit, or of any other amount payable hereunder, the amount
of such forfeiture shall be credited against the future contributions
of the Employer under the Plan.
(a)
Normal retirement. Upon application to the Board, each Participant who retires from the employ of the Employer shall be entitled to receive the benefits provided for in Subsection 145.07(a) commencing on the day after the Participant's employment is terminated, provided that no retirement benefits are payable for any period prior to the Board's receipt of the Participant's application.
(b)
Late retirement. A Participant who remains in the employ of the Employer after his Normal Retirement Date shall continue to be a Participant in the Plan until his/her actual Retirement Date ("Late Retirement Date") and shall be entitled to receive the benefit provided for in Subsection 145.07(c).
(d)
Vesting. A Participant whose employment is terminated after completing at least 12 years of Service shall be entitled to the Vested Reduced Retirement Benefit set forth in Subsection 145.07(d), but in the case of Participants hired on or after December 1, 2006, excluding Prior Military Service and Intervening Uniformed Service purchased prior to the completion of 12 years of non-Military and non-Uniformed Service, unless otherwise required by applicable law.
[Ord. 3-2011, passed 1-19-2011; Ord. 35-2018, passed 10-3-2018]
(a)
Normal retirement benefit. The amount of monthly retirement benefit
to be provided for each Participant who retires on or after accruing
20 years on active duty as an Employee of the Employer and reaching
the age of 55 years shall be equal to:
(b)
Normal form of benefit. The Normal Retirement Benefit payable to a Retired participant pursuant to Subsection 147.05(a) shall be a monthly pension commencing on his/her Retirement Date and continuing for the remainder of his/her life. Upon the death of the Participant his/her Survivor shall be entitled to the reduced monthly Retirement Benefit provided by Section 145.09 hereof.
(c)
Late retirement benefit. A Participant who remains in the employ of the Employer beyond his/her Normal Retirement Date shall be entitled to receive, commencing on his/her Late Retirement Date, the benefit calculated pursuant to Subsection 145.07(a), considering his/her Final Pay as of his/her Late Retirement Date.
(d)
Vested reduced benefit. A Participant whose tenure of office or employment
is terminated before the completion of 20 years of Service and attainment
of age 60 shall be entitled to receive such portion of the Normal
Retirement Benefit as the period of his/her Service to the date of
its termination bears to the full twenty-year period of Service required
for a Normal Retirement Benefit, payable commencing not earlier than
his/her attainment of age 60, provided that the amount of such monthly
Retirement Benefit shall be reduced by 3% for the remainder of the
twenty-year period of Service which would have been required for the
Participant to receive an unreduced Normal Retirement Benefit, and
provided further that the Participant had completed at least 12 years
of Service at the time of his/her termination of office or of employment,
but in the case of Participants hired on or after December 1, 2006,
excluding Prior Military Service and Intervening Uniformed Service
purchased prior to the completion of 12 years of non-Military and
non-Uniformed Service, unless otherwise required by applicable law.
Periods of suspension, leave of absence, layoff or part-time status
do not interrupt Service but are not credited to the accrual of Retirement
Benefits payable under the Plan.
(e)
Full vested benefit after 20 years of service. Where an officer or employee has served for 20 years or more, and his/her tenure of office or employment shall be terminated either voluntarily or involuntarily, s/he shall be entitled to full retirement benefits for the remainder of his/her life, after attaining age 55, and conditioned upon his/her continuing his contributions into the Fund at the same rate as when his/her employment was terminated until he/she attains age 55. Such officer or employee shall not be entitled to a refund of his/her contributions except as provided in Section 145.08(d).
(f)
Disability retirement benefit.
(1)
Should an officer or employee become so permanently disabled
as to be unable to perform the duties of his/her position or office
after 15 years of Service, s/he shall be entitled to full retirement
benefit during such permanent disability, provided that such permanent
disability was not caused by a pre-employment condition. Proof of
such disability shall consist of the sworn statement of three practicing
physicians, designated by the Board, that the employee is in a condition
of health which would permanently disable him/her from performing
the duties of his/her position or office. Such person shall thereafter
be subject to physical examination at any reasonable time upon order
of the Board. Upon his/her refusal to submit to any such examination,
his/her pension shall cease.
(g)
A Deferred Retirement Option Plan shall be effective beginning in
2014 for any participants in the Officers' and Employees'
Retirement Plan ("DROP") who have reached the age of 62 years and
otherwise qualify under the terms of the aforesaid Agreement to commence
such a DROP agreement for not longer than a term of three years; during
which their pension payments shall accumulate in a DROP account while
the employee continues employment while accruing no further pension
time through the actual termination of service.
[Ord. 3-2011, passed 1-19-2011]
(a)
Participants terminating employment with less than 12 years of service.
Any Participant who shall cease to be employed by the City after completing
less than 12 years of Service shall, upon application to the Board
and submission of the required executed termination forms, be entitled
to receive a refund of the total amount of his/her contributions to
the Fund, including Pick-up Contributions, but without interest.
(b)
Participants terminating employment under age 55 with at least 12
but less than 20 years of service. Any Participant who has not reached
the age of 55 who shall cease to be employed by the City after completing
at least 12, but less than 20, years of Service, shall be entitled
to receive a refund of the total amount of his/her contributions to
the Fund, without interest, upon application to the Board and submission
of the required executed termination forms. If the Participant is
married the Participant and the Participant's spouse must execute
a release of all rights to Pension Benefits.
(c)
Re-entry into City service. Any Participant who has ceased to be
employed by the City and who has applied for and received a refund
of his/her contributions to the Fund pursuant to Subparagraph (a)
or (b) hereof who shall afterward re-enter the Service of the City,
shall not be entitled to the retirement benefit designated unless
s/he shall return to the Fund the amount withdrawn within two years
from the date of re-entry into the Service of the City, in which event
the required period of Service under this article shall be computed
from the time s/he first entered the Service of the City, but excluding
his/her period of absence from the Service of the City; otherwise
the date of his/her period of Service shall commence upon re-entry.
(d)
Refund of participant's undistributed contributions on death.
In the event of the death of a Participant, and in the case of a married
Participant, the death of his/her surviving spouse or the death of
his/her/their surviving children prior to their attaining age 18,
any excess of the total amount of the Participant's contributions
to the Plan, including Pick-Up Contributions, without interest, over
the total of all benefits distributed from the Plan to the Participant,
to his/her surviving spouse and to his/her/their surviving children
prior to the death of the last survivor, shall be paid to the Participant's
designated beneficiary, and if no beneficiary has been designated,
to his/her estate, provided, that in case payment of the deceased
Participant's retirement benefits is subject to a domestic relations
order in favor of a former spouse, no refund of the benefits undistributed
from the Plan shall be made to the Participant's designated beneficiary
or estate until all obligations of the Plan to the Participant's
former spouse under the domestic relations order are satisfied, and
the amount of refund owing from the Plan to the Participant's
designated beneficiary or estate for undistributed benefits under
this paragraph shall be calculated after deducting all payments made
from the Plan to the Participant's former spouse under the domestic
relations order, as well as the payments made from the Plan to the
Participant, his/her surviving spouse and his/her/their surviving
children prior to the death of the last survivor.
(e)
Refund of participant's contributions forfeits right to retirement benefits. Any Participant who applies for and receives a refund of his/her contributions to the Fund thereby gives up and forfeits all rights to receive any further Retirement Benefits under the Plan unless he/she restores such withdrawn contributions to the Fund in accordance with Subsection (c) hereof.
(f)
Re-employment of terminated vested participant. Upon re-employment
by the City in a permanent, full-time position of any Participant
who has terminated his/her Service with a vested right to receive
or who is receiving a Retirement Benefit under this Plan, such Participant
must suspend the right to receive Retirement Benefits hereunder while
again participating in this Plan as an Employee of the City until
his/her ultimate termination of Service, at which time his/her Retirement
Benefit shall be calculated and paid on the basis of his/her age and
total years of Service accrued to the date of his/her ultimate termination
of Service.
[Ord. 3-2011, passed 1-19-2011]
(a)
The surviving spouse of a Participant who dies after completing at
least 12 years of Service shall be entitled to receive a Pension Benefit
commencing upon the Participant's death equal to 1/2 of the Retirement
Benefit which the Participant had accrued to his date of death, determined
by the fraction which the Participant's years of Service up to
his/her date of death bears to the full twenty-year period of Service
required for a full Normal Retirement Benefit, regardless of the Participant's
age at death. The amount of the Pension Benefit payable to the Participant's
surviving spouse shall be reduced by 3% for the remainder of the twenty-year
period of Service otherwise required for the Participant to have qualified
for a full Normal Retirement Benefit. The surviving spouse of a City
employee killed in the line of duty during the course of his or her
employment with the City of Erie shall receive a Pension Benefit payable
commencing upon the Participant's death equal to 25% of the annual
Compensation such employee was receiving at the time of his or her
death.
(b)
Should the surviving spouse remarry, his/her right to a Pension Benefit
under this section shall cease. If a deceased Participant is not survived
by a spouse or is survived by a spouse who subsequently becomes deceased
or remarries, and the deceased Participant is survived by children
under the age of 18 years, a Pension Benefit calculated at 50% of
the Pension the Participant was entitled to receive under the provisions
of this article at the time of his/her death, shall be payable to
and divided equally among his/her surviving children under the age
of 18 years. The payee of a deceased Participant under this section,
whether surviving spouse or surviving children under age 18, is referred
to herein as a "Survivor" of the deceased Participant.
(c)
In the event a distribution is to be made to a minor, then the Board
shall direct that such distribution be paid to the guardian of the
estate of, or if none, to the trustee for, or if none, to a parent
of, such minor, or if no parent survives, then to a responsible adult
with whom such minor resides. Payment to such guardian, trustee or
parent of a minor, or responsible adult with whom the minor resides,
shall fully discharge the Board, Employer and Plan from liability
on account thereof.
[Ord. 3-2011, passed 1-19-2011]
(a)
Persons receiving Retirement Benefits from the Officers' and
Employees' Retirement System of the City by reason of and after
the termination of 20 years service with the City whose monthly pension
is less than $200 shall have their pension benefit increased by $15
per month but in no event will such increase be more than that which
is sufficient to bring their total City monthly pension benefit to
$200 effective on April 1, 1973.
(b)
Persons receiving Retirement Benefits from the Officers' and Employees' Retirement System of the City by reason of and after the completion of 12 years service and before the completion of 20 years service shall have the Retirement Benefits provided by Subsection (a) hereof computed on the same basis as the computation for Service up to date of termination bears to the full twenty-year period of Service.
(c)
Surviving spouses of retired Participants whose monthly pension is
less than $100 as of March 14, 1973 shall have their Retirement Benefit
increased by $7.50 per month but in no event shall such increase be
more than that which is sufficient to bring their total City monthly
pension to $100 as of April 1, 1973.
(d)
Effective January 1, 2005, the monthly Retirement Benefit payable
to retired Participants and the spouses of deceased Participants who
were receiving Retirement Benefits as of January 1, 2004, shall be
increased by $3 per month for each full year that elapsed from the
date on which the retired Participant and/or the spouse of a deceased
Participant commenced receiving Retirement Benefits under the Plan
to January 1, 2004; provided, however, that no person shall be entitled
to an increase in the Retirement Benefit payable hereunder which exceeds
the increase in the Consumer Price Index between the year in which
such person commenced receiving Retirement Benefits hereunder and
the Consumer Price Index as of January, 2004, and provided further
that the increase in the monthly Retirement Benefit provided by this
subsection shall not be paid to any retired Participant or spouse
of a deceased retired Participant who retired as an employee of the
City of Erie Water Authority until and unless the City of Erie Water
Authority contributes to the Fund the monies required to pay the cost
of this increase for such Participant (and his/her spouse in the case
of deceased Participants) who retired as employees of said Authority.
(e)
The Board may, subject to the approval required under Subsection (f) hereof, increase the retirement benefit of any member of the Fund by reason of and after the termination of the services of such member of the Fund. Such increases shall be in conformity with a uniform scale, which shall be based on the Consumer Price Index for all urban consumers calculated by the Bureau of Labor Statistics of the United States Department of Labor, but the total of any such allowance shall not at any time exceed 1/2 of the current salary being paid to non-Uniformed employees of the highest pay grade.
[Ord. 3-2011, passed 1-19-2011]
The Retirement Benefits herein provided for shall not be subject
to attachment or execution and shall be payable only to the beneficiary
designated by this article and shall not be subject to assignment
or transfer, except for what is recognized pursuant to State law support
provisions or as a "qualified domestic relations order". However,
the Participant's Contributions to the Fund are subject to assignment
prior to the Participant's completion of the number of years
of Service necessary to have a Vested Benefit in the Plan, but any
such assignment shall be void and of no effect upon the Participant's
becoming vested in a Retirement Benefit.
[Ord. 3-2011, passed 1-19-2011]
(a)
(1)
An employee of a water authority created by a City that commenced
operations after September 30, 1991, who satisfies the requirements
of Subsection (a)(2) hereof, may file a written election with the
Board and the Water Authority to remain, or return as, a member of
the retirement system established pursuant to Act 49 of 1992 approved
June 10, 1992. The qualified employee shall file the written election
within one year after the effective date of this section, which was
August 10, 1992, or within one year after becoming an employee of
the water authority, whichever is later.
(2)
In order to qualify for the option under Subsection (a)(1) hereof,
an employee shall satisfy both of the following requirements when
becoming an employee of the Water Authority:
(3)
For any employee who files an election under Subsection (a)(1)
hereof, the affected water authority shall:
A.
Deduct from the employee's salary an amount equal to the
employee contribution that would have been deducted had the employee
continued to be a City employee and shall pay the deducted amount
to the Fund; and
B.
Pay to the Fund an employer contribution equal to the employer
normal cost plus anticipated administrative expenses and amortization,
pursuant to Act 205 of 1984, as subsequently amended and applied to
the payroll of the employee.
(b)
All employees who elect to remain in the retirement system shall
be treated as City employees in determining the City's annual
allocation of general municipal pension system State aid pursuant
to Section 402(e) of Act 205 of 1984.
[Ord. 3-2011, passed 1-19-2011; Ord. 35-2016, passed 12-21-2016]
(a)
Qualification of plan under Internal Revenue Code. In order to be
entitled to favorable income tax treatment available under federal
law, this Plan is intended to be qualified under the provisions of
the Internal Revenue Code of 1986 (the "Code"). In the event of any
inconsistency between the provisions of this section and any other
provisions of Article 145, this section shall control, and shall apply
to all Participants regardless of whether they retired under the Plan
or terminated their employment with the City before the Effective
Date.
(b)
Limitations on benefits - Code Section 415.
(1)
This section 145.13(b) is intended to comply with the limitations of Code Section 415 as interpreted by final regulations issued on April 5, 2007 generally effective for Limitation Years beginning on and after July 1, 2007, and this section 145.13(b) shall be applied and interpreted accordingly. Notwithstanding any contrary provisions, and in accordance with said final regulations under Code Section 415, the application of this section 145.13(b) shall not reduce the amount of Accrued Retirement Benefit below the amount of benefit payable or accrued as of the last day of the Limitation Year immediately prior to the effective date of said final regulations for the Plan, as determined under the provisions of the Plan adopted and in effect before April 5, 2007 to the extent the same were in compliance with the requirements of Code Section 415 in effect prior to the effective date of said final regulations for the Plan.
(2)
The following words and phrases used in this section 145.13(b) shall have the meaning set forth below unless a different meaning is clearly required by the context:
A.
Annual Addition means any Employee Contributions, other than
Pick-Up Contributions, and other amounts treated as annual additions
made to a Defined Contribution Plan under Code Section 415.
B.
Code Section 415 Affiliated Employer means any entity required
to be included with the Employer in a controlled group under Code
Section 415(g) and (h).
C.
Defined Benefit Plan means a plan described in Code Section
414(j) (and qualified under Code Section 401(a)).
D.
Defined Contribution Plan means a plan described in Code Section
414(i) (and qualified under Code Section 401(a)).
E.
Limitation Year means the Plan Year.
F.
Section 415 Compensation means compensation determined as follows:
1.
Section 415 Compensation means all amounts actually paid or
made available to the Employee for services rendered to the Employer
or a Code Section 415 Affiliated Company which are wages within the
meaning of Code Section 3401(a) and all other payments of compensation
for which the Employer is required to furnish a written statement
to the Employee under Code Sections 6041(d), 6051(a)(3) and 6052 (for
purposes of income tax reporting) determined without regard to any
rules under Code Section 3401(a) that limit the remuneration included
in wages based on the nature or location of the employment or services
performed, plus elective deferrals and similar amounts that would
have otherwise been wages and reportable but for Code Sections 125
(including "deemed Section 125 compensation" as provided for and within
the meaning of Revenue Ruling 2002 27), 132(f)(4), 402(e)(3), 402(h),
402(k), 403(b), and 457(b).
2.
Except as otherwise provided herein, Section 415 Compensation
shall include only amounts paid or treated as paid under Code Section
415 before a severance of employment with the Employer and Code Section
415 Affiliated Employer.
3.
An amount paid to an Employee after a severance of employment
with the Employer and/or Code Section 415 Affiliated Employer that
would otherwise be Section 415 compensation and that is paid by the
later of 2 1/2 months after the severance from employment or
the end of the calendar year that includes the date of severance from
employment shall be included in Section 415 compensation if: (1) the
amount is regular compensation for services during the Employee's
regular working hours, or compensation for services outside of the
Employee's regular working hours (such as overtime or shift differential),
commissions, bonuses or other similar payments, and the amount would
have been paid to the Employee before a severance from employment
if the Employee had continued in employment with the Employer and/or
Code Section 415 Affiliated Employer; (2) the amount is payment for
unused accrued bona fide sick, vacation, or other leave, and the employee
would have been able to use the leave if the Employee had continued
in employment with the Employer and/or Code Section 415 Affiliated
Employer; or (3) the amount is received pursuant to a nonqualified
unfunded deferred compensation plan and would have been paid at the
same time if the Employee had continued in employment with the Employer
and/or Code Section 415 Affiliated Employer, but only to the extent
said amount is includible in the Employee's gross income.
4.
Notwithstanding the foregoing, the Section 415 Compensation
taken into account for each Limitation Year shall not exceed $200,000,
with said dollar amount proportionately reduced for any Limitation
Year shorter than 12 months and adjusted at the same time and in the
same manner as provided by Code Section 401(a)(17).
(3)
The annual amount of Accrued Retirement Benefit payable to a
Participant that is attributable to contributions of the Employer
shall not exceed $160,000 (and for this purpose, the annual amount
of Accrued Retirement Benefit attributable to Employee Contributions
shall be determined under Code Section 411(c) to the extent and in
the manner required by Code Section 415).
(4)
The annual amount of Accrued Retirement Benefit payable to a Participant that is attributable to contributions of the Employer shall be deemed not to exceed the general limitation described in Section 145.13(b)(3) if:
A.
Such Accrued Retirement Benefit does not exceed $10,000 at any
time during the Limitation Year; and
B.
The Participant has never participated in a Defined Contribution
Plan maintained by the Employer or Code Section 415 Affiliated Employer
(and for this purpose, and as provided for in final regulations under
Code Section 415, the Employee Contributions shall not be considered
to be a separate Defined Contribution Plan).
(5)
If a Participant's benefit commencement date is before attainment of age 62, the general dollar limitation described in Section 145.13(b)(3) shall be adjusted to an "age 62 dollar limit" equal to the amount of a single life annuity payable as of the benefit commencement date that has the same actuarial equivalent present value of said dollar limitation payable as a deferred single life annuity at age 62, with the actuarial equivalent present value determined on the basis of the applicable mortality table prescribed by the Commissioner of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes of the adjustment of the Code Section 415 limitation for defined benefit plans and interest at the rate of 5% per annum; provided however:
A.
If the Plan has an immediate single life annuity payable both at age 62 and the age at benefit commencement, the "age 62 dollar limit" (if less than the foregoing age 62 dollar limit) shall be equal to the general dollar limitation described in Section 145.13(b)(3) multiplied by the ratio of the amount of the immediate single life annuity payable under the Plan to the amount of single life annuity payable under the Plan at age 62, with both said amounts determined without applying the limitations of Code § 415;
B.
For purposes of determining the age 62 dollar limit, no adjustment
shall be made for the probability of the Participant's death
after the benefit commencement date and before age 62 to the extent
a forfeiture does not occur upon the participant's death before
the benefit commencement date;
C.
The reduction for payment before age 62 shall not apply to any
benefit payable on account of the death of a Participant or on account
of a Participant becoming disabled by reason of personal injuries
or sickness;
D.
The reduction for payment before age 62 shall not apply to a
Participant who has at least 15 years of Service (taken into account
for purposes of determining the amount of the Participant's Accrued
Retirement Benefit) as a full-time employee of the police department
or fire department of the Employer (regardless of job classification
during said employment) or as a member of the Armed Forces of the
United States; and
E.
The age 62 dollar limit shall not decrease on account of an
increase in age or the performance of additional service.
(6)
If a Participant's benefit commencement date is before attainment of age 65, the general dollar limitation described in Section 145.13(b)(3) shall be adjusted to an "age $65 limit" equal to the amount of single life annuity payable as of the benefit commencement date that has the same actuarial equivalent present value of said dollar limitation payable as a single life annuity at age 65, with the actuarial equivalent present value determined on the basis of the applicable mortality table prescribed by the Commissioner of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes of the adjustment of the Code Section 415 limitation for defined benefit plans and interest at the rate of 5% per annum; provided however,
A.
If the Plan has an immediate single life annuity payable both at the benefit commencement date and at age 65, the "age $65 limit" (if less than the foregoing age $65 limit) shall be equal to the general dollar limitation described in Section 145.13(b)(3) multiplied by the ratio of (1) the amount of the immediate single life annuity payable to the Participant, computed disregarding the accruals after age 65, but including any actuarial adjustments, and without applying the limitations of Code Section 415 to (2) the amount of single life annuity that would be payable to an age 65 hypothetical participant with the same accrued benefit (with no increases for commencement after age 65) as the Participant, determined disregarding the accruals after age 65 and without applying the limitations of Code Section 415; and
B.
For purposes of determining the age $65 limit, no adjustment
shall be made for the probability of the Participant's death
after age 65 and before the benefit commencement date to the extent
a forfeiture does not occur upon the participant's death before
the benefit commencement date.
(7)
If a Participant's Accrued Retirement Benefit is paid in a form other than a single life annuity (as otherwise may be provided for in the Plan), it shall be adjusted as follows to its actuarial equivalent on a single life annuity basis for the purpose of applying the general dollar limitation described in Section 145.13(b)(3), except that no adjustment shall be made for any joint and survivor annuity form of payment (where the spouse is the survivor annuitant) and for the value of any ancillary benefits:
A.
For payment of Accrued Retirement Benefit in a form not subject
to Code Section 417(e)(3) (assuming Code Section 417(e)(3) applies
to the Plan to the extent and in the manner required by Code Section
415), the actuarial equivalent single life annuity for this purpose
shall be the greater of:
1.
The amount that would be payable to the Participant as of the
same benefit commencement date under the single life annuity form
of payment of the Plan; and
2.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity if determined
on the basis of the applicable mortality table prescribed by the Commissioner
of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes
of the adjustment of the Code Section 415 limitation for defined benefit
plans and interest at the rate of 5% per annum.
B.
For payment of Accrued Retirement Benefit in a form subject
to Code Section 417(e)(3) (assuming Code Section 417(e)(3) applies
to the Plan to the extent and in the manner required by Code Section
415), the actuarial equivalent single life annuity for this purpose
shall be the greatest of:
1.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment when determined
on the basis of the Plan's Actuarial Equivalent factors;
2.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment when determined
on the basis of the applicable mortality table prescribed by the Commissioner
of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes
of the adjustment of the Code Section 415 limitation for defined benefit
plans and interest at the rate of 5 1/2% per annum; and
3.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment (computed by
using the applicable mortality table and applicable interest rate),
divided by 1.05.
C.
Notwithstanding any contrary provisions, for payment of Accrued
Retirement Benefit in a form subject to Code Section 417(e)(3) (assuming
Code Section 417(e)(3) applies to the Plan to the extent and in the
manner required by Code Section 415) with a benefit commencement date
falling in the Plan Years beginning in 2004 and 2005 (except as provided
in Section 101(d)(3) of the Pension Funding Equity Act of 2004), the
actuarial equivalent single life annuity for this purpose shall be
the greater of:
1.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment when determined
on the basis of the Plan's Actuarial Equivalent factors; and
2.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment when determined
on the basis of the applicable mortality table prescribed by the Commissioner
of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes
of the adjustment of the Code Section 415 limitation for defined benefit
plans and interest at the rate of 5 1/2% per annum.
(8)
If a Participant has less than 10 years of service, the general dollar limitation described in Section 145.13(b)(3) and the special dollar limitation described in Section 145.13(b)(4) shall each be multiplied by the ratio of the Participant's years of service to 10 but not by less than one tenth; provided, however, this adjustment shall not apply to any benefit payable on account of the death of a Participant or on account of a Participant becoming disabled by reason of personal injuries or sickness. For this purpose, a year of service shall be credited for each annual computation period in which the Participant is credited with the service required to accrue a benefit for the period taking into account service with the Employer (or a predecessor employer) and a Code Section 415 Affiliated Company.
(9)
The general dollar limitation described in Section 145.13(b)(3) shall be adjusted by substituting as of January 1 of each calendar year and effective for the Limitation Year that ends in or with said calendar year, the limitation determined by the Commissioner of Internal Revenue pursuant to Code Section 415(d)(1). Such adjusted limitation shall apply to all Participants. Said adjustment shall be made for purposes of applying the limitations of this section, regardless of whether the Plan actually provides for any cost-of-living adjustments for retirement benefits.
(10)
If a Participant has multiple "annuity starting dates" within
the meaning of Code Section 415, the limitations of this section shall
be applied as of each of the annuity starting dates taking into account
the benefits that have been or will be provided at all of the annuity
starting dates to the extent and in the manner required by Code Section
415.
(11)
Notwithstanding any contrary provisions, the Annual Additions
allocated to a Participant for any Limitation Year shall not exceed
the lesser of:
A.
$40,000, provided that as of January 1 of each calendar year
and effective for the Limitation Year ending in or with said calendar
year, the dollar amount as adjusted for cost of living increases by
the Commissioner of Internal Revenue pursuant to Code Section 415(d)(1)
shall be substituted for this specified dollar amount, and provided
further, that said dollar amount for any Limitation Year shorter than
12 months shall be proportionately reduced; and
B.
100% of the Participant's Section 415 Compensation for
the Limitation Year, (whether or not he is a Participant during the
entire Limitation Year).
(12)
For the purpose of applying the limitations of this Section 145.13(b), all Defined Benefit Plans, whether or not terminated, of the Employer and any Code Section 415 Affiliated Employer shall be treated as one Defined Benefit Plan, and all Defined Contribution Plans, whether or not terminated, of the Employer and any Code Section 415 Affiliated Employer shall be treated as one Defined Contribution Plan.
(13)
If the Employer or any Code Section 415 Affiliated Employer
maintains a multiemployer plan as defined in Code Section 414(f) (and
qualified under Code § 401(a)), benefits under said multiemployer
plan shall be taken into account only to the extent provided by contributions
of the Employer or Code Section 415 Affiliated Employer.
(14)
If this Plan is aggregated with a plan that is subject to the special limitation and/or transitional rules with respect to Code Section 415, satisfaction of the requirements of Code Section 415 shall be determined by reference to the larger of the limitations set forth in this Section 145.13(b) or the limitations applicable to said other plan in the manner provided for in Code Section 415.
(15)
If the limitations imposed by this Section 145.13(b) and Code Section 415 are exceeded by reason of the aggregation of this Plan with a plan not previously required to be aggregated, said limitations may be exceeded, provided that the requirements of Code Section 415 for doing so are satisfied.
(16)
If a Participant's Accrued Retirement Benefit must be reduced to satisfy the requirements set forth in this Section 145.13(b) and in Code Section 415, such reduction shall be accomplished first by reducing the Participant's Accrued Retirement Benefit under the Defined Benefit Plan in which the Participant is an active participant and then by reducing the Participant's retirement benefit under the other Defined Benefit Plans in which the Participant was an active participant, starting with the Defined Benefit Plan in which the Participant was last an active participant and moving, successively, and to the extent necessary, to the next preceding Defined Benefit Plan and so forth.
(17)
If a Participant's Annual Additions must be reduced to satisfy the requirements set forth in this Section 145.13(b) and in Code Section 415, the Annual Addition last allocated shall be reduced. For the purposes of and as required by Section 415, such reduction shall only apply to limitation years beginning before July 1, 2007.
(c)
Required payment provisions - Code Section 401(a)(9).
(1)
Notwithstanding any contrary provisions, the payment of benefits under the Plan shall be made in accordance with a reasonable good faith interpretation of Code § 401(a)(9). The provisions in this Section 145.13(c) shall be applicable to the extent a benefit is otherwise payable under the applicable substantive provisions of the Plan, and to the extent applicable, the provisions in this Section 145.13(c) shall supersede any inconsistent benefit payment provisions in the Plan.
(2)
Payment of benefits to a Participant shall begin no later than
the required beginning date of April 1 of the calendar year following
the later of (i) the calendar year in which the Participant attains
age 70 1/2 or (ii) the calendar year in which the Participant
retires from employment by the Employer.
(3)
A joint and survivor annuity form of payment with a survivor
annuitant not the Participant's spouse shall be available to
a Participant only if the percentage of the pension payable to the
survivor annuitant on or after the Participant's required beginning
date and following the Participant's death does not exceed the
applicable percentage determined under Treas. Reg. § 1.401(a)(9)-6
in the manner specified thereunder.
(4)
A certain and life annuity form of payment shall be available
to a Participant only if the certain period does not exceed the applicable
distribution period under the Uniform Lifetime Table Treas. Reg. § 1.72
9 determined under Treas. Reg. § 1.401(a)(9)-6 in the manner
specified thereunder.
(5)
If a Participant dies before the required beginning date, payment
of benefits to a beneficiary:
A.
If made to a designated beneficiary (within the meaning of Code
Section 401(a)(9)) who is the Participant's spouse and the sole
designated beneficiary, shall be made or begin no later than the later
of December 31 of the calendar year following the calendar year in
which the Participant to whom such spouse was married died or December
31 of the calendar year in which such Participant would have attained
age 70 1/2;
B.
If made to a designated beneficiary (within the meaning of Code
Section 401(a)(9)) who is not the Participant's spouse, or if
the Participant's spouse is not the sole designated beneficiary,
shall be made no later than December 31 of the calendar year in which
falls the fifth anniversary of the Participant's death, or if
paid for the life of, or for a period not exceeding the life expectancy
of, the beneficiary, shall begin no later than December 31 of the
calendar year following the calendar year in which the Participant
died; and
C.
If there is no designated beneficiary (within the meaning of
Code Section 401(a)(9) as of September 30 of the calendar year following
the calendar year in which the Participant died), shall be made no
later than December 31 of the calendar year in which falls the fifth
anniversary of the Participant's death.
(6)
If the designated beneficiary is the Participant's surviving
spouse and is the sole designated beneficiary, and if the spouse dies
after the Participant but before payment to the Participant's
spouse is required to begin under this Section 149.13(c), this section
shall apply to the spouse as if the spouse were a participant without
a spouse.
(7)
If a Participant dies after payment has commenced to him/her
under an annuity form of payment, any payments to be made thereafter
shall continue in accordance with the requirements of Code Section
401(a)(9).
(d)
Direct rollovers - Code Section 401(a)(31).
(1)
A Distributee who is eligible to receive a distribution from
the Plan which is an Eligible Rollover Distribution may elect to transfer
said distribution to an Eligible Rollover Plan specified by the Distributee
in a Direct Rollover.
(2)
Notwithstanding any contrary provisions of this Section 145.13(d) (except as otherwise required by Code Section 401(a)(31)), (i) a Direct Rollover can be elected for part of an Eligible Rollover Distribution only if the amount so elected is at least $500, (ii) only one Eligible Rollover Plan may be designated for a Direct Rollover, (iii) a Direct Rollover election made with respect to one payment in a series of payments shall apply to all subsequent payments until another election is made by the Distributee, and (iv) no Direct Rollover election is required to be provided for an Eligible Rollover Distribution of less than $200 (when aggregated with all other Eligible Rollover Distributions for the taxable year).
(3)
For purposes of this Section 145.13(d), the following words and phrases shall have the meaning set forth below unless a different meaning is clearly required by the context:
A.
Direct Rollover means a payment by the Plan to the Eligible
Rollover Plan specified by the Distributee.
B.
Distributee means (i) an employee or former employee and (ii)
the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse
who is an alternative payee under a qualified domestic relations order,
as defined in Code § 414(p), with respect to the interest
of the spouse or former spouse.
C.
Eligible Rollover Plan means an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), a Roth IRA described in Code Section
408A (effective January 1, 2008), a qualified trust described in Code
Section 401(a), an annuity plan described in Code Section 403(a),
an annuity contract described in Code Section 403(b), and an eligible
deferred compensation plan described in Code Section 457(b) maintained
by a state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state that will separately
account for a direct rollover (from this Plan).
D.
Eligible Rollover Distribution means any distribution of all
or any portion of the balance to the credit of the Distributee under
the Plan, but excluding (as applicable) (i) any distribution which
is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life or life expectancy of
the Distributee and the Distributee's designated beneficiary
or for a specified period of 10 years or more, (ii) any distribution
to the extent such distribution is required under Code Section 401(a)(9),
(iii) the portion of any distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities), and (iv) any hardship
distribution; provided, however, the portion of a distribution that
is not includible in gross income shall not fail to be treated as
an Eligible Rollover Distribution merely because that portion is not
includible in gross income, but only with respect to (i) prior to
January 1, 2007, an Eligible Retirement Plan that is an individual
retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), or a qualified
defined contribution plan described in Code Section 401(a) or Code
Section 403(a) that will separately account for such a Direct Rollover
and (ii) from and after January 1, 2007, an Eligible Retirement Plan
that is an individual retirement account described in Code Section
408(a), an individual retirement annuity described in Code Section
408(b), or a qualified trust, annuity plan or annuity contract described
in Code Section 401(a), 403(a) or 403(b) respectively that will separately
account for such a Direct Rollover.
(4)
Effective January 1, 2010, and in conformance with Code Section
402(c)(11), a beneficiary eligible to receive a distribution from
the Plan on account of a Participant's death may elect to transfer
said distribution in a direct rollover to an individual retirement
plan (described in clause (i) or (ii) of Code Section 402(c)(8) and
including a Roth IRA) established by the beneficiary for this purpose,
provided that (i) the beneficiary is not otherwise a Distributee,
(ii) the beneficiary is a designated beneficiary as defined in Code
Section 401(a)(9)(E), and (iii) the distribution would otherwise be
an Eligible Rollover Distribution but for the requirement that the
distribution be made to a Distributee.
(5)
Said election and Direct Rollover shall be made in accordance
with procedures established under the Plan in accordance with Code
Section 401(a)(31).
(e)
Rollovers from other plans. Effective 1-1-2007, the Plan will accept
Participant rollover contributions and direct rollovers of eligible
rollover distributions from the following types of plans, contracts
and accounts for the purpose of purchasing service credit (including
military service credit) under this Plan or repaying a cash-out of
contributions refunded under this Plan, but only to the extent otherwise
permitted under this Plan:
(1)
A qualified plan described in Code Section 401(a) or 403(a),
including employee after-tax contributions.
(2)
An annuity contract described in Code Section 403(b), excluding
employee after-tax contributions.
(3)
An eligible plan under Code Section 457 which is maintained
by a state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state.
(4)
The portion of a distribution from an individual retirement
count or annuity described in Code Sections 408(a) or (b) that is
eligible to be rolled over and would otherwise be includible in the
Participant's gross income.
(f)
Death in qualified military service - Code Section 401(a)(37). As
and to the extent required by Code Section 401(a)(37), a Participant
who dies on or after January 1, 2007 while performing qualified military
service (within the meaning of Code Section 414(u)) and who would
have been entitled to reemployment rights under the Plan under the
Uniformed Services Employment and Reemployment Rights Act of 1994
at death shall be treated as follows:
(1)
Years of Service shall be credited for the period of the Participant's
qualified military service to determine whether the Participant is
vested in a benefit under the Plan for purposes of the death benefits
payable under the Plan; and
(2)
The Participant shall be treated as if death had occurred while
employed by the Employer for purposes of the death benefits payable
under this Plan.
(g)
Credit for qualified military service - Code Section 414(u). Contributions,
benefits and service credit with respect to qualified military service
shall be provided under the Plan in accordance with Code Section 414(u)
and the Uniformed Services Employment and Reemployment Rights Act
of 1994 ("USERRA"), 38 U.S.C. Section 4318.
(h)
Domestic relations orders.
(1)
Notwithstanding any contrary provisions, to the extent permitted
by law, all or a part of a Participant's benefits may be assigned
and paid to an "alternate payee" to the extent required and in the
manner determined by the Plan with respect to a "qualified domestic
relations order". For this purpose, an "alternate payee" and "qualified
domestic relations order" shall be determined by the Plan Administrator
who may use as guidance Code Section 414(p).
(2)
The Plan may establish such procedures as it deems necessary
or desirable to review domestic relations orders and to administer
payments under domestic relations orders.
(i)
Exclusive benefit - Code Section 401(a)(2). All contributions made
by the City to the Plan shall be used and applied for the exclusive
benefit of Participants and their beneficiaries, and such contributions
shall not be used for, nor diverted to, purposes other than for such
exclusive benefit of the Participants and their beneficiaries; provided,
that, for this purpose, payment of administrative expenses by the
Plan to the extent not paid by the City, shall be considered paid
for such exclusive benefit.
(j)
Forfeitures - Code Section 401(a)(8). Forfeitures arising under the
Plan because of a severance of Service before a Participant becomes
eligible for a retirement allowance, or for any other reason, shall
be applied to reduce the cost of the Plan, and not to increase the
benefits otherwise payable to Participants.
(k)
Vesting upon termination - Code Section 401(a)(7) (as in effect September
1, 1974). Upon a complete or partial termination of the Plan, or upon
the complete discontinuance of contributions, as and to the extent
required by the Code, each affected Participant shall be fully vested
in his or her accrued benefit as of the date of such termination,
partial termination or discontinuance to the extent then funded. In
the event of a complete termination of the Plan, the Plan assets shall
be allocated and paid in accordance with applicable law and regulations,
and upon satisfaction of all liabilities of the Plan to Participants
and their beneficiaries, any residual assets of the Plan shall be
returned to the City.
(l)
Leased employees - Code Section 414(n).
(1)
A person who is a leased employee shall be treated as in employment
with the Employer, but shall not participate in the Plan or accrue
any benefits under the Plan except as specifically provided for in
the Plan. If a person is eligible for benefits under the Plan as a
leased employee, to the extent and in the manner prescribed by Code
§ 414(n), the benefits provided by the leasing organization
to said person shall be taken into account in determining benefits
under the Plan.
(2)
For this purpose, a leased employee means, for Plan Years beginning
on and after 1-1-1997, as determined in accordance with Code Section
414(n), any person who is not an employee of the Employer and who,
pursuant to an agreement between a leasing organization and the Employer,
performs services for the Employer on a substantially full-time basis
for a period of at least one year under the primary direction or control
of the Employer, but excluding any such person if (i) such person
is covered under a money purchase pension plan maintained by the leasing
organization that provides for a 10% nonintegrated employer contribution
for each of its participants, full and immediate vesting, and immediate
participation for each non excluded employee of the leasing organization,
and (ii) leased employees (determined without regard to this exclusion)
do not constitute more than 20% of the Employer's nonhighly compensated
employee workforce.
[Ord. 3-2011, passed 1-19-2011]
(a)
Designation, powers and duties of the plan administrator. The Board
of Directors ("Board") of the Pension Fund is hereby designated to
be the Administrator of the Plan. The Board shall have primary responsibility
to administer the Plan for the exclusive benefit of the Participants
and their Survivors, subject to the specific terms of the Plan. The
Board shall administer the Plan in accordance with its terms and shall
have the power and discretion to construe the terms of the Plan and
to determine all questions arising in connection with the administration,
interpretation, and application of the Plan. Any such determination
by the Board shall be conclusive and binding upon all persons. The
Board may establish procedures, correct any defect, supply any information,
or reconcile any inconsistency in such manner and to such extent as
shall be deemed necessary or advisable to carry out the purposes of
the Plan; provided, however, that any procedure, discretionary act,
interpretation or construction shall be done in a nondiscriminatory
manner based upon uniform principles consistently applied and shall
be consistent with the intent that the Plan shall continue to be deemed
a qualified plan under the terms of Code Section 401(a), and shall
comply with the terms of Act 205 and all regulations issued pursuant
thereto. The Board shall have all powers necessary or appropriate
to accomplish the Board's duties as Administrator under the Plan.
The Board shall be charged with the duties of the general administration
of the Plan as set forth under the terms of the Plan, including, but
not limited to, the following:
(1)
The discretion to determine all questions relating to the eligibility
of Employees to participate or remain a Participant hereunder and
to receive benefits under the Plan;
(2)
To compute, certify, and direct the custodian or trustee of
the Pension Fund with respect to the amount and the kind of benefits
to which any Participant shall be entitled hereunder;
(3)
To authorize and direct the custodian or trustee of the Pension
Fund with respect to all discretionary or otherwise directed disbursements
from the Pension Fund;
(4)
To maintain all necessary records for the administration of
the Plan;
(5)
To interpret the provisions of the Plan and to make and publish
such rules for regulation of the Plan as are consistent with the terms
hereof;
(6)
To determine the size and type of any contract to be purchased
from any insurer and to designate the insurer from which such contract
shall be purchased;
(7)
To compute and certify to the Employer and to the custodian
or trustee of the Pension Fund from time to time the sums of money
necessary or desirable to be contributed to the Plan;
(8)
To consult with the Employer and the Aggregate Pension Board
(referred to in Subparagraph (j) below) regarding the short and long-term
liquidity needs of the Plan in order that the Aggregate Pension Board
can exercise any investment discretion in a manner designed to accomplish
specific objectives;
(9)
To determine the validity of, and take appropriate action with
respect to, any domestic relations order received by it, whether or
not "qualified" within the meaning of the Code; and
(10)
To assist any Participant regarding the Participant's rights,
benefit, or elections available under the Plan.
(b)
Bylaws, meetings, records and reports. The Board shall adopt Bylaws
regulating its organization and operations and shall hold such meetings
as the efficient discharge of its duties may require. The Board shall
keep a record of all actions taken and shall keep all other books
of account, records, policies, and other data that may be necessary
for proper administration of the Plan and shall be responsible for
supplying all information and reports to the Internal Revenue Service,
Participants, Survivors and others as required by law.
(c)
Appointment of advisors. The Board may appoint counsel, actuaries,
accountants, physicians, specialists, advisors, agents (including
nonfiduciary agents) and other persons as the Board deems necessary
or desirable in connection with the administration of this Plan, including
but not limited to agents and advisors to assist with the administration
and management of the Plan, and thereby to provide, among such other
duties as the Board may appoint, assistance with maintaining Plan
records and the providing of investment information to the Investment
Managers (defined in Subparagraph (h)(12) below) of the Pension Fund.
(d)
Payment of expenses. All expenses of administration that are approved
by the Board may be paid out of the Pension Fund unless paid by the
Employer. Such expenses shall include any expenses incident to the
functioning of the Board, or any person or persons retained or appointed
by the Board incident to the exercise of their duties under the Plan,
including, but not limited to, fees of accountants, actuaries, counsel,
Investment Managers, and other specialists and their agents, the costs
of any bonds required pursuant to law, and other costs of administering
the Plan.
(e)
Claims procedure. Claims for benefits under the Plan may be filed
in writing with the Board. Written notice of the disposition of a
claim shall be furnished to the claimant within 60 days after the
application is filed, or such other period as may be required by applicable
law. In the event the claim is denied, the reasons for the denial
shall be specifically set forth in the notice in language calculated
to be understood by the claimant, pertinent provisions of the Plan
shall be cited, and, where appropriate, an explanation as to how the
claimant can perfect the claim will be provided. In addition, the
claimant shall be furnished with an explanation of the Plan's
claims review procedure.
(f)
Claims review procedure. Any Participant, former Participant or Survivor of either, who has been denied a benefit by a decision of the Board pursuant to Subsection (e) hereof shall be entitled to request the Board to give further consideration to a claim by filing with the Board a written request for a hearing. Such request, together with a written statement of the reasons why the Claimant believes the claim should be allowed, shall be filed with the Board no later than 30 days after the receipt of the written notification provided for in Subsection (e) hereof. The Board shall then conduct a hearing within the next 30 days, at which Claimant may be represented by an attorney or any other representative of Claimant's choosing and expense. The Claimant shall have an opportunity to submit written and oral evidence and arguments to the Board in support of the claim. At the hearing (or prior thereto upon five business days' written notice to the Board) the Claimant or the Claimant's representative shall have an opportunity to review all documents in the possession of the Board which are pertinent to the claim at issue and its disallowance. Either the Claimant or the Board may cause a court reporter to attend the hearing and record the proceedings. In that event, a complete written transcript of the proceedings shall be furnished to both parties by the court reporter. The full expense of any such court reporter and such transcripts shall be borne by the party causing the reporter to attend the hearing. A final written decision as to the allowance or denial of the claim shall be made by the Board and delivered to the Claimant or the Claimant's counsel personally or by deposit in first class mail within 60 days of receipt of the appeal. Such decision shall be written in a manner calculated to be understood by the Claimant and shall include specific references to the Plan provisions on which the decision is based.
(g)
Claims appeal procedure. Any Participant, former Participant or Survivor
of either, who is aggrieved by a decision of the Board affecting his
or her benefit under the Plan may appeal such decision to the Court
of Common Pleas of Erie County in accordance with the provisions of
the Local Agency Law, 2 Pa.C.S.A. § 752, and the Judicial
Code, 42 Pa.C.S.A. §§ 933(a)(2) and 5571 (b), or their
respective successor provisions and amendments, within the time established
by law for filing an appeal from the decision of a local agency.
(h)
Investment powers and duties of the Board. The Board shall have the following powers, rights and duties with respect to the Pension Fund, subject to Subsection (j) below:
(1)
To retain in cash so much of the Pension Fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), and shall include the right to hold
funds on a temporary basis in accounts or investments that do not
bear interest.
(2)
To invest and reinvest the principal and income of the Pension
Fund and keep said Fund invested, without distinction between principal
and income, in securities which are at the time legal investments
fro fiduciaries under the Pennsylvania Fiduciaries Investment Act,
or as the same may be subsequently modified or amended.
(3)
To sell property held in the fund at either public or private
sale for cash or on credit at such times as it may deem appropriate;
to exchange such property; to grant options for the purchase or exchange
thereof.
(4)
To consent to and participate in any plan or reorganization,
consolidation, merger, extension or other similar plan affecting property
held in the fund; to consent in any contract, lease, mortgage, purchase,
sale or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights pertaining
to property held in the fund.
(6)
To exercise all voting rights with respect to property held
in the fund and in connection therewith to grant proxies, discretionary
or otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of Plan no matter where situated, including in those
cases where a bank has been appointed to serve as trustee hereunder,
the savings department of its own commercial bank.
(8)
In addition to the foregoing powers, the Board shall also have
all of the powers, rights, and privileges conferred upon trustees
by the Pennsylvania Fiduciaries Investment Act, or as the same may
be subsequently modified or amended, and the power to do all acts,
take all proceedings and execute all rights and privileges, although
not specifically mentioned herein, as the Association may deem necessary
to administer the Pension Fund.
(9)
To maintain and invest the assets of this Plan on a collective
and commingled basis with the assets of other pension plans maintained
by the Employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
(10)
To invest the assets of the Pension Fun in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company that may act as a trustee hereunder. In this connection,
the commingling of the assets of this Plan with assets of other eligible,
participating plans through such a medium is hereby specifically authorized.
Any assets of the Plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
Plan, to the extent of the participation in such collective or commingled
trust fund by the Plan.
(11)
To make any payment or distribution required or advisable to
carry out the provisions of the Plan, provided that if a trustee is
appointed by the Association, such trustee shall make such distribution
only at the direction of the Association.
(12)
To retain the services of one or more Investment Managers to
manage (with the power to acquire and dispose of) all or any part
of the Pension Fund assets, provided that each of such Investment
Managers is registered as an investment advisor under the Investment
Advisors Act of 1940, is a bank (as defined in that act), or is an
insurance company qualified to manage, acquire or dispose of pension
trust assets under the laws of more than one state; in such event,
the Employer shall follow the directions of such Investment Manager
or Managers with respect to the acquisition and disposition of fund
assets, but shall not be liable for the acts or omissions of such
Investment Manager or Managers with respect to the acquisition and
disposition of fund assets, nor shall it be under any obligation to
review or otherwise manage any Pension Fund assets which are subject
to the management of such Investment Manager or Managers.
(i)
Gifts, bequests and fees to the Pension Fund: The Board is authorized
to:
(1)
Take and accept by gift, grant or bequest, money and property,
real, personal and mixed, for the benefit of the Pension Fund, in
trust, to be added to the Fund, subject to such directions as the
donors of such money and property may prescribe.
(2)
Deposit into the Pension Fund all rewards, fees, gifts, testimonials
and emoluments that may be presented, paid or given to any Participant
or to the Pension Fund on account of services as a non-uniformed officer
or employee of the City, except such as may under the law be payable
to the City; all bequests, legacies, gifts or donations made to the
Pension Fund or the City in trust, for the benefit of the non-uniformed
officers and employees of the City for the period of one year or more,
and for which there shall be no lawful claimant.
(j)
Aggregate Pension Board. Effective November 25, 1987, the assets of the Pension Fund were transferred to a trust fund under the control of the Aggregate Pension Board as set forth in Article 173 of the City of Erie Codified Ordinances. The Aggregate Pension Board shall establish investment guidelines and be responsible for the investment of all assets of the Pension Fund. In the event that Article 173 is repealed and the assets of the Pension Fund are no longer under the control of the Aggregate Pension Board, control of the assets of the Pension Fund will revert to the Board which shall have the investment powers and duties set forth in Subsection (h) above.
(k)
Value of the Pension Fund. All determination as to the value of assets
of the Pension Fund, and as to the amount of the liabilities thereof,
shall be made by the Board or its appointed trustee, whose decisions
shall be final. In making any such determination, the Board or trustee
shall be entitled to seek and rely upon the opinion of or any information
furnished by brokers, appraisers and other experts, and shall also
be entitled to rely upon reports as to sales and quotations, both
on security exchanges and otherwise as contained in newspapers and
in financial publications.
(l)
Provisions to comply with the Municipal Pension Plan Funding Standard
and Recovery Act of 1984, elsewhere referred to herein as Act 205.
(1)
Actuarial evaluations. The Plan's Actuary shall perform
an actuarial valuation at least biennially unless the Employer is
applying or has applied for supplemental state assistance pursuant
to Section 603 of Act 205, whereupon actuarial valuation reports shall
be made annually. Such biennial actuarial valuation report shall be
made as of the beginning of each Play Year occurring in an odd-numbered
calendar year, beginning with the year 1985. Such actuarial valuation
shall be prepared and certified by an Approved Actuary, as such term
is defined in Act 205. The expenses attributable to the preparation
of any actuarial valuation report or experience investigation required
by Act 205 or any other expenses which is permissible under the terms
of the act and which are directly associated with administering the
plan shall be an allowable administrative expense payable from the
assets of the Pension Fund. Such allowable expenses shall include,
but not be limited, to the following:
A.
Investment costs associated with obtaining authorized investments
and investment management fees;
B.
Accounting expenses;
C.
Premiums for insurance coverage on fund assets;
D.
Reasonable and necessary counsel fees incurred for advice or
to defend the fund; and
E.
Legitimate travel and education expense for pension plan officials;
provided, however, that the municipal officials of the Employer, in
their fiduciary role, shall monitor the services provided to the Plan
to ensure that the expenses are necessary, reasonable, and benefit
the pension plan and, further provided, that the Plan Administrator
shall document all such expenses item by item, and where necessary,
hour by hour.
(2)
Act 205 reports. The actuarial reports required by Subparagraph
(l)(1) above shall be prepared and filed under the supervision of
the Chief Administrative Officer, which shall be the Mayor of the
City or his designee. The Chief Administrative Officer shall determine
the financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the "Minimum Municipal Obligation"
(as defined in Act 205) of the Employer with respect to funding the
plan for any given Plan Year. The Chief Administrative Officer shall
submit the financial requirements of the Plan and the Minimum Municipal
Obligation of the Employer to the City Council annually and shall
certify the accuracy of such calculations and their conformance with
Act 205.
(3)
Benefit modifications. Prior to the adoption of any benefit
plan modification by the Employer, the Chief Administrative Officer
of the Plan shall provide to the City Council a cost estimate of the
proposed benefit plan modification. Such estimate shall be prepared
by an approved Actuary, which estimate shall disclose to the City
Council the impact of the proposed benefit plan modification on the
future financial requirements of the Plan and the future Minimum Municipal
Obligation of the Employer with respect to the Plan.
[Ord. 3-2011, passed 1-19-2011; Ord. 27-2014, passed 8-6-2014]
(a)
Funding policy. The Employer shall make contributions to the Pension Fund in accordance with Section 145.05(a) and the Board shall invest the Pension Fund in accordance with the terms of the Plan and Act 205.
(b)
Other City funds not liable. So long as the City funds the Plan in
conformance with Act 205, payment of pensions and allowances as provided
under this Plan shall not be a charge on any other fund of the Employer
or account under its control, other than the Fund related to the Officers'
and Employees' Retirement Plan established hereunder.
(c)
Information to be furnished by the employer. The Employer shall furnish
to the Board such information in the Employer's possession as
the Board requires from time to time to perform its duties under the
Plan.
(d)
Prohibition against diversion of funds:
(1)
Except as provided below and otherwise specifically permitted
by law, it shall be impossible by operation of the Plan or of the
Pension Fund, by termination of either, by power of revocation or
amendment, by the happening of any contingency, by collateral arrangement
or by any other means, for any part of the corpus or income of the
Pension Fund maintained pursuant to the Plan or any Funds contributed
thereto to be used for, or diverted to, purposes other than the exclusive
benefit of Participants, former Participants or their Survivors.
(2)
In the event the Employer shall make an excessive contribution
under a mistake of fact, the Employer may demand repayment of such
excessive contribution at any time within one year following the term
of payment and the trustee or custodian of the Pension Fund shall
return such amount to the Employer within the one-year period. Earnings
of the Plan attributable to the contributions may not be returned
to the Employer but any losses attributable thereto must reduce the
amount so returned.
(e)
Participant's rights. This Plan shall not be deemed to constitute
a contract between the Employer and any Participant or to be a consideration
or an inducement for the employment of any Participant or Employee.
Nothing contained in this Plan shall be deemed to give any Participant
or Employee the right to be retained in the service of the Employer
or to interfere with the right of the Employer to discharge any Participant
or Employee at any time regardless of the effect which such discharge
shall have upon the Employee as a Participant in this Plan.
(f)
Anti-alienation provision.
(1)
Subject to the exceptions provided below, no benefit which shall
be payable out of the Pension Fund to any person (including a Participant
or Any Survivor) shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, charge, or claim
of any Creditor. Any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber, or charge the same shall be void; and 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 Board, except
to such extent as may be required by law.
(2)
Subparagraph (1) shall not apply to a "qualified domestic relations
order" defined in Code Section 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 or other federal or state law.
The Administrator shall establish a written procedure to determine
the qualified status of domestic relations orders and to administer
distributions under such qualified orders. Further, a former spouse
of a Participant shall not be treated as the spouse or surviving spouse
for any purposes under the plan.
(g)
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 Board, upon
the receipt of satisfactory evidence that such person is so incapacitated
and that another person or institution is maintaining him and that
no guardian or committee has been appointed for him, may provide for
the payment of benefits hereunder to such person or institution so
maintaining him, and any such payments so made shall be deemed for
every purpose to have been made to or for the benefit of such incapacitated
person.
(h)
Ownership of plan assets. Nothing contained herein shall be deemed
to give any Participant or his beneficiary any interest in any specific
property of the Plan or any right except to receive such distributions
as are expressly provided for in this Plan.
(i)
Legal action. In the event any claim, suit or proceeding is brought
regarding the pension Fund and/or the Plan established hereunder to
which the Employer or the Board or members of the Board may be a party,
and such claim, suit or proceeding is resolved in favor of the Employer
or the Board, they shall be entitled to be reimbursed from the Pension
Fund for any and all costs, attorney's fees, and other expenses
pertaining thereto incurred by them for which they shall have become
liable.
(j)
Indemnification of fiduciaries. To the fullest extent allowed by
Act 205, the Employer shall defend and hold harmless City Council,
the Board and their members, and shall indemnify 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
or operation of the Plan, except in the case of any criminal liability,
fraud or willful wrongdoing.
(k)
Headings. The headings and subheadings of this Plan have been inserted
for convenience of reference and are to be ignored in any construction
of the provisions hereof.
(l)
Gender and number. Wherever any words are used herein in the masculine,
feminine or neuter gender, they shall be construed as though they
were also used in another gender in all cases where they would so
apply, and whenever any words are used herein in the singular or plural
form, they shall be construed as though they were also used in the
other form in all cases where they would so apply.
(m)
Receipt and release for payments. Any payment to a Participant, the
Participant's legal representative, Survivor, or to any guardian
or committee appointed for such Participant or Survivor in accordance
with the provisions of the Plan, shall, to the extent thereof, be
in full satisfaction of all claims hereunder against the Board and
the Employer, either of whom may require such Participant, legal representative,
Survivor, guardian or committee, as a condition precedent to such
payment, to execute a receipt and release thereof in such form as
shall be determined by the Board or the Employer.
(n)
Governing law to prevail over inconsistent plan provisions. The Plan
shall be governed by, and construed in accordance with Act 205 and
the laws of the Commonwealth of Pennsylvania except to the extent
that such laws have been specifically preempted by the Code or other
Federal legislation. Notwithstanding any provision of this Plan to
the contrary, contributions, benefits and service credit with respect
to qualified military service will be provided in accordance with
Section 414(u) of the Internal Revenue Code and regulations duly promulgated
thereunder. The plan and benefits hereunder shall be conformed and
amended to the extent necessary to comply with all applicable laws.
