[Adopted 11-27-2017 by Ord. No. 788]
The Board of Supervisors of Exeter Township is hereby authorized
to execute the Delaware Valley Workers' Compensation Trust Agreement
for the participation of the Exeter Township in the Delaware Valley
Workers' Compensation Trust, which agreement is attached hereto
as Exhibit A[1] and incorporated herein by reference. The trust agreement
attached hereto is on file for inspection and review at the Exeter
Township office, 4975 DeMoss Road, Reading, Pennsylvania 19606. This
agreement may be amended after the enactment of this article to conform
to any requirements imposed by the Commonwealth of Pennsylvania and
any of its agencies, including the Department of Labor and Industry,
Bureau of Workers' Compensation.
[1]
Editor's Note: Exhibit A is on file in the Township office.
The participation of Exeter Township in the Delaware Valley
Workers' Compensation Trust is authorized for the purposes of
enabling Exeter Township to reduce the cost of workers' compensation
claims through its participation in a group self-insurance fund.
Exeter Township delegates to the Delaware Valley Workers'
Compensation Trust the authority to pay workers' compensation
benefits on its behalf in accordance with the Pennsylvania Workers'
Compensation Act and the Pennsylvania Occupational Disease Act.
Commonwealth of Pennsylvania Department of Labor and Industry
Bureau of Workers' Compensation has approved the issuance of
a permit to the Delaware Valley Workers' Compensation Trust to
operate as a group self-insurance fund subject to certain conditions.
As an approved self-insurance fund, the Delaware Valley Workers'
Compensation Trust will be responsible for the payment of workers'
compensation claims on behalf of all Trust participants.
As set forth in the Delaware Valley Workers' Compensation
Trust Agreement, the following conditions, among others, apply to
the participation of Exeter Township in the Delaware Valley Workers'
Compensation Trust:
A.
That the Trust shall consist of at least five homogeneous municipal
participants organized as local government agencies under Pennsylvania
law;
B.
That each participant satisfies all eligibility and admission requirements
for membership in the Trust;
C.
That each participant pledges and agrees to appropriate funds to
pay all its annual contributions and assessments which are required
for the creation of a fund maintained at a level sufficient to pay
all workers' compensation claims and related expense incurred
by the Trust participants;
D.
That each participant agrees to jointly and severally assume and
discharge the workers' compensation liabilities of each and every
other participant in accordance with the Delaware Valley Workers'
Compensation Trust Agreement when required to do so by the Department
of Labor and Industry Bureau of Workers' Compensation;
E.
That each participant will institute any and all safety regulations,
loss prevention measures or risk management procedures as may be required
for the purpose of minimizing or eliminating work place risks to its
employees;
F.
That each participant cooperate fully with the Trust's service
and fiscal agents, attorneys, claims adjusters and any agents or employees
of the Trust with respect to the investigation, defense and settlement
of claims;
G.
That each participant designate a person to be responsible for all
contacts with the Trust;
H.
That each participant provide any information to the Administrator
or Board of Trustees as may be required to effect the purposes and
objectives of the Trust; and
I.
That each participant comply with all applicable statutes and regulations
governing the payment of workers' compensation claims, including,
but not limited to, the Pennsylvania Workers' Compensation Act
and any regulations promulgated thereunder.
Exeter Township agrees to participate in the Delaware Valley
Workers' Compensation Trust for a minimum period of two years,
subject to the terms and conditions of the Delaware Valley Workers'
Compensation Trust Agreement. After the expiration of that minimum
two-year period, each participant may withdraw under the following
conditions as provided in the Delaware Valley Workers' Compensation
Trust Agreement:
A.
An opinion is rendered by the Trust-certified actuary that withdrawal
will not result in the number of participants falling below the minimum
required to assure the fiscal and actuarial soundness of the Trust
itself;
B.
That the withdrawing participant is not then in default of its obligation
to pay premiums, contributions or assessments;
C.
That the withdrawing participant shall pay any additional assessments
as determined by the Board of Trustees in accordance with the Trust
Agreement and bylaws;
D.
That the Board of Trustees shall have received a certification from
the Trust actuary that the withdrawal of the participant will not
impair the actuarial soundness of the Trust and, if any municipal
debt has been incurred by the participants to finance any portion
of the Trust reserves, an opinion is obtained from bond counsel that
such withdrawal will not adversely affect the tax-exempt status of
any interest paid and any debt incurred by the participants, or any
legal entity created for the purpose of incurring such debt. As used
herein, the term "debt" includes any municipal bonds, certificate,
letters of credit or other instruments of municipal indebtedness.
The organizational structure of the Trust shall consist of a
Board of Trustees, an Administrator, a claims administrator/loss control
consultant and various service agents appointed by the Board of Trustees
in accordance with the Delaware Valley Workers' Compensation
Trust Agreement and any bylaws adopted pursuant thereto.
As set forth in the Delaware Valley Workers' Compensation
Trust Agreement, the funds required for the creation and operation
of the Trust shall be provided by the participating municipalities
through annual appropriations.
The Delaware Valley Workers' Compensation Trust is empowered
to enter into contracts for policies of group insurance and employee
benefits, including social security, for any of its employees.
The participation of Exeter Township in the Delaware Valley
Workers' Compensation Trust will be effective by January 1, 2018,
or thereafter, as approved by the Board of Trustees.
All contributions and assessments paid by Exeter Township shall
be made with funds appropriated by Exeter Township for that purpose.
As a condition of participating in the Delaware Valley Workers'
Compensation Trust, Exeter Township agrees to:
A.
Pay all annual contributions and assessments as may be required by
the Board of Trustees;
B.
Appoint a representative to sit on the Board of Trustees and designate
a contact person for the purpose of communicating with the Trust or
its representatives;
C.
Not withdraw from the Trust for a period of two years following its
admission to the Trust, subject to the terms and conditions of the
Delaware Valley Workers' Compensation Trust Agreement;
D.
Withdraw from the Trust only upon satisfaction of the conditions
set forth in the Delaware Valley Workers' Compensation Trust
Agreement;
E.
Perform all covenants contained in the Delaware Valley Workers'
Compensation Trust Agreement and delegate to the Board of Trustees
the powers and authorities enumerated in that Agreement;
F.
Comply with all the conditions set forth in the Delaware Valley Workers'
Compensation Trust Agreement governing the handling and payment of
claims, including the defense and settlement thereof;
G.
Appropriate the funds needed to pay all contributions and assessments
as may be required by the Board of Trustees in accordance with the
Delaware Valley Workers' Compensation Trust Agreement;
H.
Cooperate with the Trust, its agents or employees and provide the
Trust with all information it needs for the operation of the Trust,
including any underwriting or claims data which it may be requested
by the Board of Trustees or its designee.
This article is being enacted pursuant to the Pennsylvania Intergovernmental
Cooperation Law, 53 Pa.C.S.A. § 2301 et seq., the Pennsylvania
Workers' Compensation Law, 77 P.S. § 1036.2, and the
Pennsylvania Second Class Township Code, 53 P.S. § 66507.
All ordinances or resolutions or any part thereof, insofar as
they are inconsistent with this article, are hereby repealed.
This article shall become effective immediately.
