[Ord. 5-2011, passed 1-19-2011; Ord. 24-2016, passed 8-3-2016]
The following words and 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 149.04(a) 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 Normal Retirement Date under the Plan, assuming no interruption of Service to his 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 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. 79-2019, 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.
(g)
BOARD or BOARD OF MANAGERS — The Board of Managers of the City
of Erie Firefighters' Pension Fund, which is in charge of the administration
of the Plan. Effective January 1, 2021, there shall be 10 members
of the Board, consisting of the Mayor, the Director of Finance, the
City Controller, the Fire Chief (or the replacement or substitute
officer of the City performing substantially the same functions as
any of the foregoing listed officers), three members elected by the
Employees in the Bureau of Fire, and three members elected by the
dues-paying members of the City of Erie Retired Firefighters Association
from among their members who are currently receiving monthly pension
payments from the Pension Fund ("Retirees"). The three members elected
by the active Employees shall serve for a term of four years, with
the term of the third member commencing January 1, 2021, and expiring
December 31, 2024, and every four years thereafter. One of these Employee-elected
members shall serve as Secretary, with a term expiring December 31,
2021, and every four years thereafter; and another shall serve as
Treasurer of the Board with a term expiring December 31, 2024, and
every four years thereafter. There shall be an election at the end
of each applicable four-year term to fill the position of an Employee-elected
member whose term has expired. In the event of a vacancy among the
Employee-elected members of the Board, the active Employees shall
elect a successor to complete the unexpired term. The three members
elected by the Retirees shall serve for four-year terms, expiring
April 30, 2021, April 30, 2023, and April 30, 2024, and every four
years thereafter, respectively. There shall be an election at the
end of each applicable four-year term to fill the position of the
Retiree-elected member whose term has expired. In the event of a vacancy
among the Retiree-elected members of the Board, the Retirees shall
elect a successor to complete the unexpired term.
[Amended by Ord. 38-2020, passed 11-4-2020[1]]
[1]
Editor's Note: This ordinance provided an effective date of
1-1-2021.
(h)
BYLAWS — The bylaws of the Association which shall govern the
internal operations of the Association.
(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 — A Participant's wages or compensation as reported on IRS Form W-2 each year, including regular pay, shift differential, longevity increments, holiday pay, and contributions to the Plan which are picked up by the City under Code Section 414(h)(2), plus uniform cleaning allowances, whether or not included in W-2 income, but excluding overtime pay, sell back of unused vacation time or unused sick leave pay and "out of rank pay" (pay above regular pay while serving in a temporary position) even though included in W-2 income. Effective January 1, 1998 Compensation also includes elective amounts not included in W-2 income by reason of Code Sections 125, 132(f)(4), 401(k), 402(g)(3), 403(b) or 457(b). Compensation shall include contributions "picked up" under Section 149.02(b).
(n)
EMPLOYEE — A sworn firefighter employed in the Employer's Fire
Department to suppress fires on a full-time basis, including the Chief,
Assistant Chiefs, Fire Inspectors, Emergency Medical Services Coordinator,
and the Quartermaster, but excluding support personnel such as dispatchers,
mechanics, electricians, clerks and secretaries.
(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, uniform cleaning allowance and contributions to the Plan by the Participant which are "picked up" by the City under Code Section 414(h)(2), but excluding Compensation for overtime, sell back of unused vacation time, sell back of unused sick leave pay, and pay exceeding regular pay while serving in a temporary position ("out of rank pay"), at the greater of: (a) the annual rate in effect at the earlier of the time of the Participant's termination of employment or retirement under the Plan or the Pension Lookback Date which the Participant selects under Section 149.09 hereof, or (b) the highest annual Compensation within the meaning of this Paragraph (p) which the Participant received during any of the five Plan Years of the Participant's Service with the City prior to the Participant's termination of employment or retirement under the Plan or the Pension Lookback Date which the Participant selects under Section 149.09 hereof. Effective as of January 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 January 1, 1989 is subject to the annual limits
of Code Section 401(a)(17), which specifies $200,000 for Plan Year
1989, $209,200 for Plan Year 1990, $222,220 for Plan Year 1991, $228,860
for Plan Year 1992, $235,840 for Plan Year 1993, reduced by OBRA-1993
to $150,000 for Plan Years 1994 through 1996, increased to $160,000
for Plan Years 1997 through 1999, increased to $170,000 for Plan Years
2000 and 2001, and increased 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 December 31, 1996.
Section 149.09 (Partial Lump Sum Distribution Option) has been eliminated in accordance with the repealer passed by City Council on December 20, 2006 at Official Ordinance No. 75-2006.
(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 on active duty as an Employee with
the Employer and who shall have attained the age of 50 years.
(t)
PARTICIPANT — Any Employee who is contributing to the Pension Fund out of their Compensation the amounts required by Section 149.02(b).
(u)
PENSION FUND — The assets of this Plan held and 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 January 1, 1994.
(w)
PLAN — The defined benefit pension plan set forth in this Article
149 (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
Firefighters' Pension Plan.
(x)
PLAN ADMINISTRATOR — Shall be the Board which is designated as the Plan Administrator in Section 149.08(a) 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 (beyond the first 12 months), 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 50th birthday and termination of employment with a
Vested Retirement Benefit or 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 149.02(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 149.02(c) or (d) below.
[Amended by Ord. No. 13-2021, passed 3-3-2021]
(gg)
SERVICE INCREMENT — The component of monthly Retirement Benefit attributable to full years of Service above 20, pursuant to Section 149.04(a)(2) below, not to exceed $500 per month.
(hh)
SURVIVING SPOUSE — A living individual who was legally
married to the Participant and is married to the Participant at the
time of 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.
(ii-A)
TOTAL AND PERMANENT DISABILITY, TOTALLY AND PERMANENTLY
DISABLED — A condition as determined by sworn statements of
three practicing physicians designated by the Board of Managers that,
in their opinion, to a reasonable degree of medical certainty, a Participant
is totally and permanently disabled from performing the duties of
a firefighter. Any Participant found to have such condition shall
be subject to periodic physical examination and review by three practicing
physicians at any reasonable time designated by the Board for determination
whether his/her total and permanent disability continues. If the three
practicing physicians do not confirm by their sworn statements that
the Participant continues to be totally and permanently disabled from
performing the duties of a firefighter, or if the Participant refuses
to submit to such examination, he/she shall cease to be Totally and
Permanently Disabled or to have the condition of Total and Permanent
Disability.
(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 50 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. 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. 5-2011, passed 1-19-2011]
(a)
Contributions by employer. The Employer shall contribute to the Pension
Fund for investment at least such amounts each year as are necessary
to satisfy the minimum funding standards of Act 205.
(b)
Participant contributions. Participant contributions to the Pension
Fund shall be made as follows:
(1)
Participants shall contribute monthly an amount equal to: 6%
of monthly Compensation, but excluding overtime pay, out of rank pay,
sell back of unused vacation time, sell back of unused sick leave
pay, plus $1 per month for the Service Increment. The amount required
to be contributed for the Service Increment shall be contributed until
a Participant terminates employment.
(2)
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.
(3)
Commencement of contributions. Contributions shall commence
by payroll deductions upon commencement of employment.
(4)
Termination of contributions. Contributions shall terminate
at Retirement, disability, death or termination of employment.
(5)
Return of contributions. If a Participant terminates Service prior to accruing a Vested Benefit in the Plan, s/he shall be entitled to the return of his/her Contributions, without interest, in accordance with the provisions of Section 149.06(b).
(6)
Pick-up contributions. Effective January 1, 1994, contributions
to the Pension Fund by Participants shall be picked-up by the City
under Section 414(h)(2) of the Internal Revenue Code. Contributions
picked-up under this Code Section shall be considered Employee contributions
for all other purposes.
(7)
All Contributions made to the Pension Fund by Participants pursuant
to this subsection shall be separately accounted for each Participant.
(8)
Buyback Contributions for Certain Service Prior to January 1,
1985: Consistent with past practice Participants may purchase their
Service for periods of employment as an Employee prior to January
1, 1985 during which they were not permitted to make contributions
to the Pension Fund because they were on probation or due to administrative
error following completion of probation by making a lump sum payment
to the Pension Fund of 5% of the pay which a Class A Firefighter received
during such prior period of Service. All Participants having such
Service prior to January 1, 1985 must make the required lump sum contribution
to the Pension Fund on or before December 31, 2006 to have such prior
Service credited under the Plan.
(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 Date 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) that
which the Participant would have paid had s/he been a Participant
in the Plan 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)
Effective January 1, 2008, Participants who did not previously
purchase their Prior Military Service may at any time prior to their
Retirement Date purchase such Prior Military Service for credit as
Service under the Plan by payment to the Pension Fund of an amount
equal to (i) the amount which the Participant would have paid had
s/he been a Participant in the Plan during the period of Prior Military
Service for which the Participant desires credit for Service under
the Plan, but not to exceed five years, on the basis of the Compensation
payable to a Class A firefighter during the period of Prior Military
Service purchased, (ii) $1 per month of Prior Military Service purchased,
for the Service increment, (iii) the amount which the City would have
contributed to the Fund during the period of Prior Military Service
purchased by such Participant, and (iv) interest on (i), (ii) and
(iii) at the annual rate of return on Plan assets which is calculated
by the Actuary for the Plan from the date which is 2 1/2 years
after the Participant's initial date of employment as an Employee,
compounded annually to the date of payment to the Plan.
(3)
However, 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.
(d)
Credit for and purchase of intervening uniformed service.
(1)
A former Participant who serves more than five years in Uniformed
Service (not counting any related Report-Back Period and necessary
Preparation Time included in such Uniformed Service) does not have
any right 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 after the first twelve-month of Intervening Uniformed
Service and related Report Back Period, without interest. The City
shall make all contributions to the Plan necessary for the Participant
to receive credit for Service under the Plan with respect to the first
12 months of such intervening Uniformed Service and related Report-Back
Period.
(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 the Participant
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.
[Ord. 5-2011, passed 1-19-2011]
(a)
Normal retirement. Each Participant who retires from the employ of the Employer on the first day of the calendar month coincident with or next following his/her Normal Retirement Age ("Normal Retirement Date") shall be entitled to receive the benefits provided for in Section 149.04(a).
(b)
Late retirement. A Participant who remains in the employ of the Employer after his/her 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 Section 149.04(c).
(d)
Vesting. A Participant who terminates employment after at least 12 years of continuous Service excluding Military and Uniformed Service purchased prior to the completion of 12 years of non-Military and non-Uniformed Service, unless otherwise required by applicable law, shall be entitled to the Vested Reduced Benefit set forth in Section 149.04(d).
(e)
Retirees subject to recall for emergency service. Every retired Participant
shall be subject to service, from time to time, as a firefighter's
reserve in cases of emergency until unfitted for such service, at
which time he/she shall be finally discharged by reason of age and/or
disability.
[Ord. 5-2011, passed 1-19-2011]
(a)
Normal retirement benefit. The amount of monthly retirement benefit
to be provided for each Participant who retires on his/her Normal
Retirement Date (which benefit is herein called his Normal Retirement
Benefit) shall be equal to:
(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, his/her benefit calculated pursuant to Subsection (a) hereof considering his/her Final Pay as of his/her Late Retirement Date.
(d)
Vested benefit or vested reduced benefit. Where a Participant has completed 12 years or more of Service, excluding Military or Uniformed Service purchased prior to the completion of 12 years of non-Uniformed Service, unless otherwise provided by applicable law, and his/her tenure of office or employment shall be terminated before the expiration of 20 years of Service, or before his/her attainment of age 50, s/he shall, in such event, after attaining the age of 50 years, during the remainder of his/her life, be entitled to receive such portion of the full pension as the period of his/her Service (counting Prior Military Service and Intervening Uniformed Service purchased for credit as Service under Sections 149.02(c) and (d) after completion of 12 years of non-Uniformed Service) to the date of its termination bears to the full twenty-year period of Service for a Normal Retirement Pension. The continuity of 12 years of Service shall not be affected by interruptions of Service for suspension, leave of absence or Intervening Uniformed Service.
(e)
Disability retirement benefit for disability not in line of duty. A Participant who accrues less than 12 years of Service and who becomes Totally and Permanently Disabled due to injuries or mental incapacities incurred outside of the line of duty and who is unable to perform the duties of a firefighter, shall be entitled to a Disability Retirement Benefit equal to 25%, or if the Participant had completed 12 or more years of Service at the time of Total and Permanent Disability not in the line of duty, then 50%, of his/her Final Pay at the time such disability is incurred, payable at the rate of 1/12 of such amount per month commencing immediately, and thereafter for so long as the Participant remains Totally and Permanently Disabled. If such disabled Participant shall die, the pension payment that s/he was receiving shall continue to be paid to his/her Survivor. Where a Participant who has received benefits under this Subsection dies and there is no Survivor eligible for benefits under this subsection, no further benefits shall be payable from the Pension Fund, except as provided in Section 149.06(d) with respect to any Participant Contributions which remain undistributed.
(f)
Disability retirement benefit for disability in line of duty. A Disability
Retirement Benefit shall be provided for any Participant who incurs
Total and Permanent Disability in the line of duty, regardless of
the number of years of Service accrued at the time of such disability,
which shall be equal to 50% of the Participant's Final Pay at the
time such disability is incurred on or prior to December 31, 2005,
and which shall be equal to 75% of the Participant's Final Pay at
the time such disability is incurred on or after January 1, 2006,
in either case payable at the rate of 1/12 of such amount per month
from the effective date of Total and Permanent Disability.
Such Participants shall also receive a Service Increment for
each full year of Service which the Participant earned over 20, calculated
at 1/40th of 50% of 1/12th of the Participant's Final Pay at the time
s/he incurred such Total and Permanent Disability in the line of duty,
not to exceed $500 per month.
The Disability Retirement Benefit payable under this subsection shall be payable to the Participant during his/her lifetime and if s/he shall die, Disability Retirement Benefit that the Participant was receiving shall be continued to be paid to his/her Survivor. Where a Participant who has received benefits under this subsection dies and there is no Survivor eligible for benefits under this subsection, no further benefits shall be payable from the Pension Fund, except as provided in Section 149.06(d) with respect to any Participant Contributions which remain undistributed.
[Amended by Ord. No. 16-2023, passed 4-19-2023]
(g)
Cost of living adjustments. Shall be provided to increase the monthly pension payable pursuant to Sections 149.04(a) (Normal Retirement) or (c) (Late Retirement) of the Plan to Participants who retire on or after January 1, 1998 with at least 20 years of Service, and to their Survivors, if any, so that their pensions shall not fall below 50% of the monthly salary currently being paid to a Class A firefighter of the City. Participants receiving a Vested Reduced Benefit pursuant to Section 149.04(d) hereof, and their Survivors, if any, shall be entitled to a cost of living increase so that their pensions shall not fall below that portion of 50% of the monthly salary of a Class A firefighter as his/her years of Service to date of termination bears to the full 20 years of Service required for a Normal Retirement Benefit.
Participants who qualify for a Disability Retirement Benefit for a Disability Not in Line of Duty under Section 149.04(e) hereof with less than 12 years of Service shall be adjusted for the Cost of Living so that their pensions shall not fall below 25% of the monthly salary currently being paid to a Class A firefighter of the City.
Participants who qualify for a Disability Retirement Benefit for Disability Not In the Line of Duty under Section 149.04(e) hereof with 12 or more years of Service shall be adjusted for the Cost of Living so that their pensions (and the pensions of their Survivors, if any) do not fall below that portion of 50% of the monthly salary currently being paid to a Class A firefighter.
(h)
Minimum pension. On and after January 1, 1974, persons receiving
monthly benefits of any kind from the Pension Fund shall receive a
benefit of not less than $200 per month.
[Ord. 5-2011, passed 1-19-2011]
(a)
Survivor benefit for death when retired or eligible to retire. The Survivor of a Participant who dies while receiving or while eligible to receive a Normal Retirement Benefit under Section 149.04(a), a Late Retirement Benefit under Section 149.04(c) or a Vested Reduced Benefit under Section 149.04(d) shall be entitled during his/her lifetime to receive the Retirement Benefit that the Participant was receiving or would have been receiving had s/he been retired at the time s/he died, commencing at his/her death. With respect to a Participant who dies while entitled to a Vested Reduced Benefit under Section 149.04(d) but before s/he has commenced to receive it, the Retirement Benefit that the Participant had accrued at his/her death shall be paid to his/her Survivor commencing at the date the Participant would have been eligible to receive Retirement Benefits had s/he not died. In case a Survivor is the surviving spouse of more than one deceased Participant the Survivor Benefit payable to that Survivor shall not exceed the highest Retirement Benefit accrued by any deceased Participant to whom the Survivor was married at the time such Participant died.
(b)
Survivor benefit for death in line of duty after 1967. The Survivor
of a Participant who is killed in the line of duty on or after January
1, 1968 shall receive during his/her lifetime the Retirement Benefit
which the Participant had accrued at the time of his/her death, payable
commencing with the Participant's death, regardless of the number
of years of Service which the Participant had completed at his/her
death.
(c)
Survivor benefit for death outside of line of duty. The Survivor
of a Participant who is killed or dies outside of the line of duty
prior to completion of 12 years of Service shall be entitled to receive
a monthly Retirement Benefit commencing with the Participant's death,
equal to 25% of 1/12 of the Participant's Final Pay. The Survivor
of a Participant who is killed or dies outside of the line of duty
following the completion of 12 years of Service shall be entitled
to receive a monthly Retirement Benefit equal to the greater of 50%
of 1/12 of the Participant's Final Pay or of the Participant's Accrued
Retirement Benefit, payable commencing with the Participant's death.
(d)
Payment of survivor benefit. The survivor benefit paid pursuant to Subsections (a), (b) or (c) hereof shall be paid to the surviving spouse until the date of death of the surviving spouse. Upon the death of surviving spouse of a Participant, the survivor benefit shall be paid monthly in equal shares to the surviving children of the deceased Participant until the earliest of the death or attainment of age 18 of each child. The shares payable to the surviving children shall be adjusted as each child ceases to be eligible to receive a share of the benefit hereunder due to death or attainment of age 18. The payee above whether the spouse or the children, shall be defined herein as the Survivor.
(e)
Death benefit for participants in plan prior to June 11, 1966. In
addition to the Participant Contributions required by Section 149.02(h),
a Participant in the Plan prior to June 11, 1966 who contributed $1.40
per month to the Plan and to its predecessor plan, the Erie Fire Department
Relief Association, during his/her employment by the Employer out
of his/her monthly compensation, and during his/her retirement out
of his/her monthly Retirement Benefit, is entitled to a death benefit
of $2,000 payable to his/her designated beneficiary, or if no beneficiary
is designated, to his/her estate. A Participant in the Plan prior
to June 11, 1966 who did not make such additional monthly contributions
during his/her employment and throughout his/her retirement, is entitled
to a death benefit of $1,000 payable to his/her designated beneficiary,
or if no beneficiary is designated, to his/her estate. The last Participant
eligible for this death benefit retired from the Plan on July 1, 2004.
(f)
Distribution on behalf of minor beneficiary. 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 maintains his residence.
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. 5-2011, passed 1-19-2011]
(a)
Forfeitures. Upon the forfeiture of any non-vested portion of a Participant's
Accrued Benefit, the amount of such forfeiture shall be credited against
the future contributions of the Employer under the Plan.
(b)
Refund of contributions to terminated non-vested participants. A
Participant who terminates employment with the City for causes other
than layoff for less than two years, death or disability prior to
becoming vested in a Vested Benefit hereunder, shall receive the refund
of the total amount of the contributions paid into the Pension Fund
by such Participant, including Pick-up Contributions, but without
interest.
(c)
Right of terminated, non-vested participant to return withdrawn contributions
upon re-employment. A Participant who receives a refund of the total
amount of his/her contributions to the Pension Fund as the result
of the termination of his/her employment who subsequently becomes
re-employed by the Fire Department and a Participant in the Plan shall
be entitled to credit under the Plan for his/her Service prior to
his/her termination of employment, provided s/he returns to the Pension
Fund the amount of contributions withdrawn from it, 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 payment, within two years from the date of his/her
reemployment by the Fire Department as a Participant.
(d)
Refund of participant's undistributed contributions upon 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.
[Ord. 5-2011, passed 1-19-2011; Ord. 37-2016, 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 149, 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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(b)(3) shall be adjusted to an "age 65 dollar 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 dollar limit" (if less than the foregoing age 65 dollar limit) shall be equal to the general dollar limitation described in Section 149.07(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 dollar 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 149.07(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 149.07(b)(3) and the special dollar limitation described in Section 149.07(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 149.07(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 149.07(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 multi-employer plan as defined in Code Section 414(f)
(and qualified under Code § 401(a)), benefits under said
multi-employer 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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(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 149.07(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 January 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. Upon a Participant's return
to employment by the City following a period of qualified military
service, the City shall make the contributions to this Plan with respect
to the first 12 months of such qualified service that the Participant
would otherwise be required to make pursuant to this Plan, Code Section
414(u) and USERRA in order to be entitled to service credit under
this Plan for the first 12 months of such qualified military service.
Such Participant shall be required to make contributions to this Plan
pursuant to Code Section 414(u), USERRA and 51 Pa.C.S.A. Section 7306
in order to be entitled to service credits under this Plan for qualified
military service in excess of 12 months.
(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 January 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. 5-2011, passed 1-19-2011]
(a)
Designation, powers and duties of the plan administrator. The Board
of Managers ("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 Paragraph (g)(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 Subparagraph (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
Subparagraph (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 Subparagraph (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
for 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 Manger 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 member
or to the Pension Fund on account of firefighting services, 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 Fire Department for the period of one year
or more, and for which there shall be no lawful claimant, and all
income resulting from activities conducted by or under the supervision
of the Fire Department, by and with the approval of City Council.
(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 Subparagraph (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
(1)(l) 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. 3-2012, passed 2-1-2012]
(a)
Effective as of February 15, 2004, every full-time active firefighter who is a participant in the Plan who shall have accrued at least 21 years of service on active duty as a participant and who shall have attained the age of 51 years or more, and who is otherwise eligible for the Normal Retirement benefit provided under Section 149.04 hereof, may elect the Partial Lump Sum Distribution Option ("PLSDO") provided by Subparagraph (c) below in lieu of any other benefits under the Plan.
(b)
A Participant may elect the PLSDO at any time after six months following
attainment of his/her Normal Retirement Date by delivering to the
Employer a written notice stating his/her intention to terminate his/her
employment with the City on an Employment Termination Date, and his/her
intention to retire under the Plan as of a Pension Lookback Date which
precedes his/her selected Employment Termination Date by either 12,
24 or 36 months, as selected by the Participant in such Notice, which
is hereinafter referred to as the "PLSDO Notice." A Participant may
not select a Pension Lookback Date in his/her PLSDO Notice which precedes
his/her selected Employment Termination Date by 12 months unless he/she
shall have accrued at least 21 years of Service under the Plan and
shall have attained at least age 51 at his/her selected Employment
Termination Date. A Participant may not select a Pension Lookback
Date in his/her PLSDO Notice which precedes his/her selected Employment
Termination Date by 24 months, unless he/she shall have accrued at
least 22 years of Service under the Plan and shall have attained at
least age 52 at his/her selected Employment Termination Date. A Participant
may not select a Pension Lookback Date in his/her PLSDO Notice which
precedes his/her selected Employment Termination Date by 36 months
unless he/she shall have accrued at least 23 years of Service under
the Plan and shall have attained at least age 53 at his/her selected
Employment Termination Date. A Participant may revoke his/her notice
of intention to terminate employment with the City and to retire under
the Plan by delivery of another written notice to the Employer to
that effect at any time prior to the Employment Termination Date stated
in his/her previous PLSDO Notice.
[Amended by Ord. No. 16-2023, passed 4-19-2023]
(c)
A Participant who elects the PLSDO Pursuant to Paragraph (b) above
shall receive, commencing with or within 30 days following the Employment
Termination Date selected in his/her PLSDO Notice:
(1)
His/her Normal Retirement Benefit determined as of the Pension
Lookback Date specified in his/her PLSDO Notice; and
(2)
A lump sum cash distribution equal to the monthly retirement
benefit provided in (1) above, multiplied by the number of months,
12, 24 or 36 specified in the Participant's PLSDO Notice, or the number
of months which elapsed from the Pension Lookback Date which the Participant
selected in his/her PLSDO Notice to the last day of the month in which
occurs his/her death or actual termination of employment, if earlier.
This lump sum cash distribution shall be eligible for rollover to
the Participant's Individual Retirement Account or to another qualified
plan pursuant to Subsections 149.07(m) and (n) hereof, subject to
the limitations and requirements of the Internal Revenue Code.
|
After commencement of payment to a Participant pursuant to his/her
PLSDO election, such Participant shall not be eligible for any other
benefit under the Plan, except for the Normal Retirement Benefit provided
by (1) above and the Cost of Living Adjustment thereon provided by
(d) below.
|
(d)
The Cost of Living Adjustment provided by Subsection 149.04(g) hereof to the Normal Retirement Benefit provided under (c)(1) above shall be based upon the basic monthly salary paid to a Class A firefighter of the City at a prior month, which is determined from time to time by the number of months, 12, 24, or 36, by which the Pension Lookback Date specified in the Participant's PLSDO Notice precedes the Employment Termination Date specified in such Notice, or the number of months which elapsed from the Pension Lookback Date specified in such Notice to the last day of the month in which occurs his/her death or actual termination of employment, if earlier. No Cost of Living Adjustment shall be calculated or credited under Subsection 149.04(g) hereof with respect to any period prior to a Participant's Employment Termination Date.
(e)
A Participant who delivers a PLSDO Notice to the City and who subsequently becomes permanently and totally disabled and eligible for a Disability Retirement Benefit under Subsections 149.04(e) or (f) hereof prior to the Employment Termination Date specified in such PLSDO Notice may revoke such Notice prior to the Employment Termination Date, in which case it shall be deemed of no effect, and the Participant shall retire with the Disability Retirement Benefit for which he/she is eligible under the Plan.
(f)
In the event that a Participant who delivers a PLSDO Notice to the
City dies prior to the actual payment of the lump sum cash distribution
required by his/her election of a PLSDO and Subparagraph (c)(2) above,
then it shall be paid to his/her surviving spouse, or if none, to
his/her surviving children per stirpes or if none, to his/her estate,
but the amount of such lump sum cash distribution shall be calculated
by multiplying the monthly retirement benefit provided in Subparagraph
(c)(1) above by the number of whole months which elapsed from the
Pension Lookback Date which the Participant selected in his/her PLSDO
Notice to the last day of the month in which his/her death occurs.
In the event that a Participant who delivers a PLSDO Notice to the
City suffers a total and permanent disability which results in the
termination of his/her employment prior to the Employment Termination
Date selected in such Notice and does not revoke his/her PLSDO Election,
then the amount of such lump sum cash distribution shall be calculated
by multiplying the monthly retirement benefit provided in Subparagraph
(c)(1) above by the number of whole months which elapsed from the
Pension Lookback Date which the Participant selected in his/her PLSDO
Notice to the last day of the month in which his/her termination of
employment occurs. Further, in the event of the death of a Participant
prior to his/her receipt of a lump sum cash distribution required
by his/her election of the PLSDO, such Participant's surviving spouse
shall have the option of voiding the Participant's election of the
PLSDO, forfeiting the lump sum cash distribution and receiving the
retirement benefits provided by the Plan to the surviving spouse as
though the Participant had never elected the PLSDO. In the event such
Participant's surviving spouse elects to receive the lump sum cash
distribution elected by the Participant prior to his/her death and
in accordance with Subparagraph (c)(2) above, then the monthly retirement
benefit payable to such surviving spouse shall be reduced in accordance
with the deceased Participant's election of a PLSDO and Subparagraph
(c)(1) above.
(g)
Any lump sum cash distribution payable in accordance with this Section 149.09 shall be subject to applicable Federal and State Income Tax Regulations and withholding and excise taxes.
(h)
A Participant who elects a PLSDO shall continue to make all required
Participant Contributions to the Plan until his/her selected Employment
Termination Date.
(i)
If
a Participant who is PLSDO eligible dies while not in the line of
duty, his/her Survivor shall be entitled to exercise any and all of
the same PLSDO rights that the Participant could have exercised on
the day before his/her death.
[Added by Ord. No. 16-2023, passed 4-19-2023]
[Ord. 5-2011, passed 1-19-2011; Ord. 24-2016, passed 8-3-2016]
(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 Firefighters'
Pension 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.
