[Adopted 2-28-1987 by Ord. No. 87-1; amended by Ord.
No. 92-10; Ord. No. 97-8]
This article shall be known and cited as the "Cannon Township
Pension Plan Ordinance."
Pursuant to Act 77 of the Public Acts of Michigan of 1989 (MCL
41.110b, the successor to Act 27 of the Public Acts of 1960, as amended),
the Township of Cannon hereby creates and establishes a group pension
plan to provide retirement benefits for its officers and full-time
employees as provided hereafter ("plan"), and also hereby authorizes
the Township Supervisor and the Township Clerk to contract, in the
name of the Township, subject to the approval of the Township Board,
with any company authorized to transact such business within the State
of Michigan for such plan.
The plan created, established and contracted for under this
article shall provide the following contribution formula in arriving
at the amount of the annual contribution for each elected officer
and full-time employee to be made to the plan: The annual contribution
for each such person shall be the total of 12% of the annual compensation,
with a minimum annual contribution of $100, beginning as of April
1, 1985, and a like amount on the first day of April each year thereafter.
The annual contributions as specified above shall be secured from the general fund of the Township and paid to the company which has contracted with the Township to provide the plan. The calculations shall be made as soon hereafter as practicable after the effective date of this article and as soon after each April 1 of each year hereafter as may be practicable based upon the current salaries of the participants. With respect to the calculation of annual compensation under §
39-3 hereof, in the event that an increase in annual compensation occurs during the year for which the annual contribution has already been made for any person, no additional contribution shall be made to the plan based on such increased compensation until the next annual contribution date for the plan, at which time the increased compensation shall be used as the basis for determining the next annual contribution for the participant.
The plan as approved by the Township Board shall provide for
a normal retirement age for the receipt of benefits; the accumulation
of each beneficiary's pension account; the types of payments
of benefits upon becoming eligible; benefits in the event of withdrawal
as a result of death, total disability or termination of employment;
funding; and investment provisions and payment of plan expenses.
The Township of Cannon hereby ratifies and confirms any other
plans of life, health, hospitalization, medical or surgical service
and expenses and accident insurance or any one or more of such forms
of insurance which may be in existence for the benefit of Township
officers and employees on the effective date of this article, and
same shall not be affected by this article.