[HISTORY: Adopted by the Township Board of the Township of Cannon as indicated in article histories. Amendments noted where applicable.]
[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.