[HISTORY: Adopted by the City Council of the City of DuBois
as indicated in article histories. Amendments noted where applicable.]
[Adopted 1-25-1937 by Ord. No. 615 (Ch. 1, Part 2, of the 1995 Code);
amended 12-10-2012 by Ord. No.
1780[1]]
[1]
Editor's Note: The City Council adopted Addendum A to this
ordinance, Deferred Retirement Option Plan (DROP), 12-19-2019 by Res.
No. 2019-0137. Such addendum is on file in the City offices.
As used in this article, the following terms shall have the
meanings indicated:
As any given date, the benefit determined under § 48-5B calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the aggregate service which would be credited to the participant as of his normal retirement date if he were to continue to be employed as an employee until such date with the caveat that once the participant shall have achieved the years of aggregate service required for normal retirement as set forth in the definition of "normal retirement date" in this section, the value of the fraction shall be one. The value of the fraction shall be limited to one.
The total amount contributed by each participant to this
fund or its predecessor by way of payroll deduction or otherwise,
but shall not include interest.
The Municipal Pension Plan Funding Standard and Recovery
Act, enacted as P.L. 1005 (Act 205) of 1984, as amended.[1]
A form of benefit differing in time, period or manner of
payment from a specific benefit, provided under the plan but having
the same value when computed using the "applicable interest rate"
and "applicable mortality table" as defined in Section 417(e) of the
Internal Revenue Code. The "applicable interest rate" shall be determined
as of the second month prior to the first month of the limitation
year. The "applicable mortality table" and "applicable interest rate"
shall be adjusted automatically when necessary to maintain the qualified
status of the plan. The applicable mortality table was found in Revenue
Ruling 95-6, 1995-1 C.B. 80 and, effective as of December 31, 2002,
is found in Revenue Ruling 2001-62.
The person, partnership, association, or corporation which
at any given time is serving as actuary, provided that such actuary
must be an "approved actuary" as defined in the Act.
The total period of continuous employment with the employer.
For participants hired on or after January 1, 2004, shall
mean base salary and longevity pay. For participants hired before
January 1, 2004, "annual salary" shall mean W-2 earnings.
1/12 of the annual salary.
The person or entity designated by the participant to receive
a refund of the participant's accumulated contributions should the
participant die prior to becoming entitled to a retirement benefit.
In the event that a participant does not designate a beneficiary or
his beneficiary does not survive him, his beneficiary shall be his
surviving spouse, or if there is no surviving spouse, his issue, per
stirpes, or if there is no surviving issue, his estate; but if no
personal representative has been appointed, to those persons who would
be entitled to his estate under the intestacy laws of the Commonwealth
of Pennsylvania as if he had died intestate and a resident of Pennsylvania.
The person designated by Council to serve in the capacity
of chief administrative officer. If no such designation is made, the
chief administrative officer shall be the City Manager.
The Internal Revenue Code of 1986, as amended.
The City Council of the City of DuBois.
The date when a participant is determined by the plan administrator
to be incapacitated due to a "total and permanent disability," or
the date when the participant's employment terminates due to a "total
and permanent disability," if later.
The Deferred Retirement Option Plan is created as an optional
form of benefit under the existing City of DuBois Police Retirement
Plan.
[Added 3-8-2021 by Ord.
No. 1860]
An interest-bearing, ledger account in the pension trust
fund established for a DROP participant.
[Added 3-8-2021 by Ord.
No. 1860]
Any individual employed by the employer on a permanent, full-time
basis as a member of the employer's police force.
The police force of the City of DuBois, Clearfield County,
Pennsylvania.
For the purposes of determining aggregate service, shall
mean the following:
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a full-time police officer;
Any period, up to five years, of intervening voluntary or involuntary
military service with the armed forces of the United States of America,
provided that:
The participant had been employed as a regular, full-time member
of the employer's police force immediately prior to the period of
military service;
The participant returns to employment within six months following
his discharge from military service or within such longer period during
which his employment rights are guaranteed by applicable law or under
the terms of a collective bargaining agreement with the employer;
The participant's discharge or separation from military service
was granted under other than dishonorable conditions;
The participant complies with the requirements of § 48-4C, including, without limitation, the requirement to make contributions to the plan.
Any period of prior voluntary or involuntary military service
with the armed forces of the United States, not to exceed five years,
upon the payment by the participant of an amount equal to that which
he would have paid had he been a member during the period for which
he desires credit, and his payment to such fund of an additional amount
is the equivalent of the contributions of the employer on account
of such military service.
Credit for qualified military service. 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 Code.
Any period during which the employee is entitled to disability
benefits under this plan, provided that the employee returns to employment
within one month of the date on which the plan administrator determines
that he is no longer totally and permanently disabled, if such determination
occurs prior to the participant's normal retirement date.
1/12th of the annual salary paid to the participant by the
employer at retirement or 1/12th of the highest average annual salary
during any five years preceding retirement, whichever is higher.
A full-time City of DuBois police officer covered by the
plan.
[Added 3-8-2021 by Ord.
No. 1860]
The date on which the participant has both completed 20 years
of aggregate service as a police officer with the employer and has
attained age 50.
An employee who has met the eligibility requirements to participate in the plan as provided in § 48-3A and who has not for any reason ceased to be a participant hereunder.
A member who is eligible for normal retirement, having reached
50 years of age and attained 20 years of service, and who has elected
to participate in the DROP program.
[Added 3-8-2021 by Ord.
No. 1860]
The police pension fund administered under the terms of this
plan and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time,
and designated as the "City of DuBois Police Retirement Plan."
The employer.
The twelve-month period beginning on January 1 and ending
on December 31.
A condition of physical or mental impairment resulting from
an in-service cause which renders the employee unable to perform his
duties. Proof of disability shall be by competent medical evidence,
provided by the claimant. Council may at any time have the claimant
examined by a physician of its choosing.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
A.
Plan administrator. The plan administrator (administrator) shall
be the employer.
B.
Authority and duties of the administrator.
(1)
The administrator shall have full power and authority to do whatever,
in its judgment, shall be reasonably necessary to effectuate the proper
administration and operation of the plan. The interpretation or construction
placed upon any term or provision of the plan by the administrator,
or any action of the administrator taken in good faith, shall be final
and conclusive upon all parties hereto. The authority of the administrator
shall include, but shall not be limited to:
(a)
Construction of the plan;
(b)
Determination of all questions affecting the eligibility of
any employee of the City to participate herein;
(c)
Computation of the amount and the source of any benefit payable
hereunder to any participant or beneficiary, as applicable;
(d)
Authorization of any and all disbursements of benefits;
(e)
Prescription of any procedure to be followed by any participant
or other person, as applicable, in filing any application or election
hereunder;
(f)
Preparation and distribution of information explaining the plan
as may be required by law or as the administrator deems appropriate;
(g)
Requisition of information necessary from the City or any participant
for the proper administration of the plan; and
(h)
Appointment and retention of any individual to assist in the
administration of the plan, including such legal, clerical, accounting,
and actuarial services as may be required by any applicable law or
laws.
(2)
The administrator shall have no authority to add to, subtract from,
or modify the terms of the plan or to change or add to any benefits
provided by the plan, or to waive or fail to apply any requirements
of eligibility for benefits under the plan. Further, the administrator
shall have no power to adopt, amend, or terminate the plan or to determine
or require any contributions to the plan, said power being exclusively
reserved to Council.
C.
Hold harmless. To the full extent permitted by law, no member of
Council, the chief administrative officer, the administrator, nor
any other person involved in the administration of the plan shall
be liable to any person on account of any act or failure to act which
is taken or omitted to be taken in good faith in performing their
respective duties under the terms of this plan. To the extent permitted
by law, the City shall, and hereby does agree to, indemnify and hold
harmless the administrator and each successor and each individual's
heirs, executors and administrators, and the administrator's delegates
and appointees (other than any person or entity independent of the
City who renders services to the plan for a fee) from any and all
liability and expenses, including counsel fees, reasonably incurred
in any action, suit, or proceeding to which he is or may be made a
party by reason of being or having been the administrator or a delegate
or appointee of the administrator, except in matters involving criminal
liability or intentional or willful misconduct. If the City purchases
insurance to cover claims of a nature described above, then no right
of indemnification shall exist except to the extent of any deductible
amount under the insurance coverage or to the extent of the amount
the claims exceed the insured amount.
D.
Appeal procedure. Any person whose application for benefits is denied,
who questions the amount of timing of any benefit paid, or who has
some other claim arising under the plan (the "claimant"), shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
(1)
The claimant shall first file a notice of claim with the administrator,
which notice shall fully describe the nature of the claim. The administrator
shall review the claim and make an initial determination approving
or denying the claim and shall mail notice of the determination within
90 days (or such other period as may be established by applicable
law) from the time such application is received. Such ninety-day period
may be extended by the administrator, if special circumstances so
require, for up to 90 additional days, by the administrator's delivering
notice of such extension to the claimant within the first ninety-day
period. Any notice hereunder shall, if it is a notice of denial, set
forth:
(2)
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by Council of the initial
determination. Such request for review must be made by written notice
to Council within 60 days of mailing of the notice of denial. During
such review, the claimant or a duly authorized representative shall
have the right to review any pertinent documents and to submit any
issues or comments in writing. Council shall, within 60 days after
receipt of the notice requesting such review, (or in special circumstances,
such as where Council in its sole discretion holds a hearing, within
120 days of receipt of such notice), submit its decision in writing
to the person or persons whose claim has been denied. The claimant
shall have the right to appeal the decision of Council pursuant to
the Local Agency Law, 2 Pa.C.S.A. § 101. If not so appealed,
the decision shall be final, conclusive, and binding on all parties.
(3)
Any notice of claim questioning the amount of a benefit in pay status
shall be filed by the claimant with the administrator within 90 days
following the date of the first payment which would be adjusted if
the claim is granted, unless the administrator allows a later filing
for good cause shown.
(4)
A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
A.
Eligibility requirements. Each employee who is employed as a regular,
full-time permanent member of the police department of the employer
shall participate herein as of the date on which such employee is
first employed in the above capacity.
B.
Notification of plan administrator. The employer shall furnish the
administrator with written notification of the appointment of any
new full-time permanent employee who is eligible for participation
hereunder as soon as practicable following the date of such appointment.
C.
Designation of beneficiary. Any employee who becomes a participant
hereunder shall provide a written notice which designates his beneficiary
or beneficiaries to the plan administrator at the time his participation
commences or recommences. The participant's election of any such beneficiary
or beneficiaries may be rescinded or changed, without the consent
of the beneficiary or beneficiaries, at any time, provided the participant
provides the plan administrator with written notice of the changed
designation.
A.
Employee contributions. Each employee shall make regular monthly
contributions to the plan at a rate not to exceed 3% of the participant's
annual salary plus $5 per month for the service increment. No contributions
for the service increment shall be made by the employee after he attains
65 years of age.
B.
Payment of employee contributions. The employee contributions provided for in Subsection A of this section shall be deducted from the employee's annual salary in each month of his service during which he receives payments of annual salary.
C.
Employee contributions for periods of military service. An employee may be entitled to have certain periods of military service credited to him as additional years of aggregate service for purposes of determining: (i) the amount of his retirement benefit; and (ii) his eligibility for normal retirement or disability retirement, provided that the military service satisfies the requirements for treatment as aggregate service described in the definition in § 48-1 and the participant makes contributions to the pension fund as described in this Subsection C.
(1)
For intervening military service, the amount of contributions required
under this section shall be determined by the actuary and certified
by the plan administrator and shall be in such amounts as required
by Section 414(u) of the Code and the Uniformed Services Employment
and Reemployment Rights Act of 1994 (USERRA).
(2)
For credit for military service served subsequent to September 1,
1940, and prior to becoming an employee, the amount of contributions
required under this section shall be an amount equal to that which
the participant would have paid had he been a participant during the
period for which he desires credit and his payment of an additional
amount as the equivalent of the contributions of the employer on account
of such military service.
D.
Employer contributions. Employer contributions required under the
provisions of the Act, as determined by the actuary in accordance
with the Act, shall become the obligation of the employer and shall
be paid into the pension fund by annual appropriations.
A.
Normal retirement. Each participant shall be entitled to normal retirement
benefits, provided he retires on or after his normal retirement date.
B.
Normal retirement benefit. Each participant entitled to normal retirement benefits pursuant to this § 48-5 shall receive during his lifetime a monthly retirement income commencing at his normal retirement date, equal to 50% of his final monthly average salary; provided, however, that payment of benefits upon retirement shall be conditioned upon a participant's being subject to service from time to time as a police reserve in cases of riot, tumult or preservation of the public peace until unfitted for such service, at which time such participant shall be finally discharged by reason of age or disability upon written notice from the employer.
C.
Late retirement. A participant may continue to work beyond his normal retirement date subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of § 48-5A continues to work beyond his normal retirement date, there shall be no retirement benefits paid until employment ceases and retirement begins. The retirement benefit of a participant who retires after his normal retirement date shall be calculated on the basis of his final monthly average salary as of such participant's actual date of retirement.
D.
Service increment benefits. In addition to the pension benefit provided in Subsections B and C of this section, a service increment benefit shall be payable to a participant who has retired under this section if such participant has completed one or more years of aggregate service in excess of the years of aggregate service required to attain his normal retirement date with the employer. The amount of increment shall be an additional monthly benefit of 1/40 of the amount of monthly retirement benefit otherwise payable, multiplied by the number of completed years of aggregate service in excess of the number of years of aggregate service required to attain his normal retirement date. In no case shall the total service increment exceed $500 per month, and in no case will the service increment for any participant be based on any year of aggregate service completed after the date the participant has attained 65 years of age.
E.
Deferred vested retirement. A participant who terminates employment
before attaining his normal retirement date, but after completing
12 years of aggregate service, shall be entitled to vest his or her
retirements benefits, subject to the conditions set forth below:
(1)
Participant must file with the plan administrator a written notice
of his intention to vest at least 30 days prior to the date the participant
intends to terminate his service and be in good standing with the
employer on the date of the notice to vest.
(2)
The plan administrator shall indicate on the notice to vest the annual
salary of the participant as of the date of said notice to vest.
(a)
For a participant hired prior to January 1, 2004, the deferred
vested retirement shall be determined as follows: upon reaching the
date that would have been the participant's normal retirement date,
the participant shall be entitled to receive a pension benefit computed
as his normal retirement benefit, multiplied by his vesting percentage,
which shall be 60% upon completion of 12 years of aggregate service,
and increasing by 5% for each additional completed year of aggregate
service to a maximum of 100%.
(b)
For a participant hired on or after January 1, 2004, the deferred
vested retirement shall be determined as follows: upon reaching the
date that would have been the participant's normal retirement date,
the participant shall be entitled to receive a pension benefit computed
as his normal retirement benefit based on his or her annual salary
on said notice to vest, multiplied by the percentage that his or her
years of aggregate service bears to the years of aggregate service
that the participant would have rendered had he continued in employment
until his normal retirement date.
F.
Cost-of-living adjustment. Commencing on January 1, 1999. in any
year in which the Consumer Price Index has changed by at least 1%
from the prior year, participants who are receiving retirement allowances
of any kind from the pension fund by reason of and after the termination
of employment of the participant shall have their retirement benefit
increased by 6.66% up to a total maximum of 40%. However, a participant
shall receive no increase in the amount of monthly income payments
if the amount of such monthly income is greater than 50% of the highest
paid patrolman's gross pay on such date. Any cost-of-living increase
will not exceed the percentage increase in the Price Index from the
year in which the participant last worked and in no event will the
amount of monthly retirement benefit be more than 130% of the amount
of the retirement benefit the participant would have received had
the provisions of this section not been in effect. No cost-of-living
increase shall result in a monthly retirement benefit which exceeds
75% of the participant's final average monthly salary as determined
on the date his monthly retirement benefit was first calculated. No
cost-of-living increase shall be made if such increase would impair
the actuarial soundness of the plan.
G.
Payment of benefits. Retirement payments shall be payable as of the
first day of the month coincident with or next following the participant's
retirement date and the first day of each month thereafter during
the participant's lifetime.
A.
Disability benefits.
(1)
A participant who is totally and permanently disabled and who is
not otherwise eligible for a normal retirement benefit shall, upon
application to the plan administrator, be entitled to a monthly disability
benefit equal to:
(2)
Monthly disability benefit payments shall begin on the earliest first
day of the month on or after the date the participant meets the requirements
under this section. Such payments shall continue through the first
day of the month before the earliest of his retirement date (normal
retirement date, if earlier), the date of his death or the day following
the date he is no longer totally and permanently disabled.
(3)
If the payments continue through the first day of the month before the participant's superannuation retirement date, retirement benefits shall be provided for him on his superannuation retirement date under the provisions of § 48-4 as if he were an active participant. His accrued benefit shall be equal to the accrued benefit as of the day before the disability benefit began. However, such accrued benefit shall not be less than the amount of monthly disability payment paid to him under this section. If, before the participant's superannuation retirement date, he recovers and returns to active work for the employer within one month of his recovery, the payments shall stop and he shall again become an active participant. If, before the participant's superannuation retirement date, he recovers and does not return to active work for the employer within one month of his recovery, the payments shall stop and his benefits shall be redetermined, on the date he ceased to be an employee, under the vested benefits section of § 48-5.
B.
In-service disability. A participant who is totally and permanently
disabled in the line of duty shall be deemed to be fully vested in
his pension and entitled to a normal retirement benefit. For in-service
disabilities of participants hired on or after January 1, 2004, the
plan shall be subrogated to the right of the claimant to the extent
of any payments made under the act of June 2, 1915 (P.L. 736, No.
338), known as "the Pennsylvania Workmen's Compensation Act" or the
act of June 28, 1935 (P.L. 477, No. 193), referred to as the "Enforcement
Officer Disability Benefits Law."
C.
Payment of disability benefits. Disability payments shall be made
monthly as of the first day of each month, commencing as of the first
day of the month immediately following or coincident with the participant's
disability date and continuing until the earliest of the death of
the participant, cessation of total and permanent disability or the
date the participant attains his normal retirement date. If a participant
fails to return within three months to his position as an employee
of the employer upon cessation of total and permanent disability prior
to his normal retirement date, his date of termination shall be his
disability date.
A.
Preretirement death benefits payable to beneficiary. In the event a participant hired on or after January 1, 2004, who has not attained entitlement to retirement benefits or disability benefits, dies during employment or dies after termination of employment but prior to receiving a refund of accumulated contributions, and the participant's beneficiary is not entitled to a benefit described in Subsection B of this section, the participant's designated beneficiary shall be entitled to receive a refund of the participant's accumulated contributions to the plan, payable in one cash lump sum as soon as practicable following the participant's death.
B.
Preretirement death benefits for participants hired prior to January
1, 2004.
(1)
A participant who was hired prior to January 1, 2004, and who dies
while an employee and is survived by a spouse to whom he was continuously
married through the one-year period ending on the date he dies or
who has a dependent child under the age of 18 on the date he dies,
shall be entitled to a monthly benefit equal to:
(2)
Any benefits paid under this section shall begin on the first day
of the month on or after the participant's death and shall continue
to the later of the date of the surviving spouse's death or the date
there is no longer a surviving child under the age of 18. However,
payments under this section shall cease on the date of the surviving
spouse's remarriage.
(3)
If any benefits are paid under this section, no other benefits shall
be payable under any other provision or section of this plan.
C.
Survivor benefit.
(1)
In the event of the death of a participant: (i) who would be eligible to receive an immediate payment of retirement benefits if he had elected to retire on the day before his death; or (ii) who is receiving such benefits, a survivor benefit shall be payable under this Subsection C.
(2)
In the event of the death of a participant who has terminated employment, vested his benefit pursuant to § 48-5E and is entitled to a deferred vested retirement pursuant to § 48-5E, but dies before commencing receipt of his retirement benefit, a survivor benefit shall be payable under this § 48-7C; however in no circumstances shall the survivor benefit commence before the date that the participant would have been eligible to commence his retirement benefit had he not died.
(3)
The survivor benefit shall be equal to 50% of the monthly retirement
benefit which the participant was receiving or would have been receiving
had he retired on the day before his death.
(4)
The survivor benefit provided for in this Subsection C shall be payable to the widow or widower of the deceased participant until such widow's or widower's death. If there is no widow or widower of the deceased participant, the survivor benefit provided for in this subsection shall be payable in equal shares to the deceased participant's child or children who have not attained age 18 as of the date on which survivor benefit payments under this subsection would otherwise be payable to the child or children. Payments to each surviving child shall cease as of the earlier of such child's death or attainment of age 18. Such child's share of the survivor benefit shall be reallocated in equal shares to any remaining surviving children, then living, who have not attained age 18. If survivor benefits are payable under this section, no survivor benefits shall be payable under any other sections of this plan.
A.
Rights of terminated employees. If a participant ceases to be an
employee except as otherwise herein before provided, his interest
and rights under this plan shall be limited to those contained in
the following sections of this section.
B.
Refund of accumulated contributions. If a participant whose employment
with the employer has been terminated for any reason prior to his
normal retirement date and is not eligible for retirement benefits
or disability benefits under the plan, such participant or his beneficiary
shall be entitled, upon request, to receive a refund of his accumulated
contributions to the plan. Upon receipt of such accumulated contributions,
neither the participant, his beneficiary nor any other survivor shall
be entitled to any further payments from the plan.
C.
Reemployment. If any participant shall have returned to him his accumulated
contributions and shall afterward again become an employee, he shall
not be entitled to the pension designated until 20 years after his
reemployment, unless he shall return to the pension fund the amount
withdrawn, in which event the period of 20 years shall be computed
from the time during which the participant was not an employee.
A.
Explanation. In recognition of the fact that the plan must comply
in form, content and operation with certain provisions of the Internal
Revenue Code, and in spite of the limited applicability of such provisions
to the normal operation of the plan, the following sections detail
the limitations and parameters applicable to maintaining favorable
tax treatment of funds contributed to the plan under federal law.
B.
LEASED EMPLOYEE
LIMITATION YEAR
Definitions. The following words and phrases are hereby introduced
and defined for purposes of this section only:
Any person (other than an employee of the recipient) who,
pursuant to an agreement between the recipient and any other person
("leasing organization"), has performed services for the recipient
[or for the recipient and related persons determined in accordance
with Code Section 414(n)(6)] on a substantially full-time basis for
a period of at least one year, and such services are under the primary
direction and control of the recipient. A leased employee shall not
be considered an employee of the recipient.
The plan year, for purposes of applying the limitations under
the current section.
C.
Maximum annual benefit.
(1)
General rule. Except as otherwise provided, this plan shall at all
times comply with the provisions of Code Section 415 and the regulations
thereunder, the terms of which are specifically incorporated herein
by reference. If a benefit payable to a participant under this plan
would otherwise exceed the limit under Code Section 415, the benefit
will be reduced to the maximum permissible benefit.
(2)
Effective date. If there is more than one permissible effective date
for any required change in the Code Section 415(b) provisions, then
the change shall be effective as of the latest permissible effective
date; however, any adjustment in the dollar limit under Code Section
415(b)(1)(A), whether required or permissible, shall take effect automatically
as of the earliest permissible effective date. The "applicable mortality
table" in Rev. Rul. 2001-62 became effective as of December 31, 2002.
(3)
No reduction in accrued benefits. Notwithstanding the above, no change
in the limits under this section shall reduce the benefit of any participant.
(4)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(b), and
if the aggregated benefits would otherwise exceed the limit under
Code Section 415(b), then benefits shall be reduced first under the
other plan.
(5)
Mandatory contributions. participant contributions are annual additions,
and any benefit attributable to participant contributions is not included
in the benefit subject to the limits of Code Section 415(b). This
subsection does not apply to contributions "picked up" in accordance
with Code Section 414(h).
(6)
Permissive service credit. Effective as of January 1, 1998, if a
participant makes a purchase of permissive service credit [within
the meaning of Code Section 415(n)] under the plan, the benefit derived
from the contributions made to purchase the service credit shall be
treated as part of the benefit subject to the limitations under this
section.
D.
Limit on annual additions.
(1)
Annual additions. Except as otherwise provided, annual additions
(which include participant contributions) under this plan shall at
all times comply with the provisions of Code Section 415(c) and the
regulations thereunder, the terms of which are specifically incorporated
herein by reference. If an annual addition would otherwise exceed
the limit under Code Section 415(c), the excess annual addition will
be allocated in accordance with Reg. Section 1.415-6(b)(6)(ii).
(2)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(c), and
if the annual additions would otherwise exceed the limit under Code
Section 415(c), annual additions will first be reduced under the other
plan. If there is more than one other plan, annual additions will
first be reduced under the plan with the greatest amount of annual
additions.
(3)
Effective date. The limits under which Code Section 415(c) are adjusted
periodically in accordance with changes in the law or cost-of-living
adjustments without the need for a plan amendment. If there is more
than one permissible effective date for any required change relating
to Code Section 415(c), then the change shall be effective as of the
earliest permissible effective date.
E.
Leased employees and independent contractors. Leased employees and
independent contractors are not eligible to participate in this plan.
Any person whom the Borough Council does not regard as being an employee
shall not be eligible to participate.
F.
Limit on compensation. Compensation is subject to the limitation
under Code Section 401(a)(17), which is $210,000 for the plan year
beginning in 2005. The limit is automatically adjusted periodically,
without formal amendment, for changes in the law and cost-of-living
adjustments under Code Section 401(a)(17).
G.
Multiple plan reduction. Code Section 415(e) applied for limitation
years beginning prior to 2000.
H.
Vesting upon plan termination. Upon the termination of this plan,
or complete discontinuance of contributions [within the meaning of
pre-ERISA Code Section 401(a)(7)] to this plan, each participant as
of the date that such termination or discontinuance shall become vested
to the extent that the plan is funded.
I.
Minimum required distributions. Notwithstanding any provision in
this plan to the contrary, the distribution of a participant's benefits
shall be made in accordance with the requirements and conditions and
shall otherwise comply with Code Section 401(a)(9). Any distribution
option under the plan that is inconsistent with Section 401(a)(9)
of the Code shall be inoperative to the extent of the inconsistency.
Effective as of January 1, 2003, all distributions under the plan
shall be made in accordance with Reg. Section 1.401(a)(9)-1 through
1.401(a)(9)-9. For calendar years prior to 2003, distributions were
made in accordance with the 1987 proposed regulations, except to the
extent that those proposed regulations were overridden by amendments
to the Code.
(1)
(2)
Distributions to a participant and his beneficiaries shall only be
made in accordance with the incidental death benefit requirements
of Code Section 401(a)(9)(G) and the regulations thereunder.
(3)
Nothing in this section gives any participant (active or retired),
beneficiary, or "alternate payee" the right to elect any time or method
of a distribution not provided for in another section of the plan.
J.
Domestic relations order. All rights and benefits, including elections,
provided to a participant in this plan may be subject to the rights
afforded to any "alternate payee" pursuant to a domestic relations
order as provided by applicable state law.
K.
Direct rollover.
(1)
This section applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a distributee's election under this section,
a distributee may elect, at the time and in the manner prescribed
by the plan administrator, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
(2)
For purposes of this section, the following definitions shall apply:
(a)
An eligible rollover distribution is any distribution of all
or any portion of the balance to the credit of the distributee, except
that an eligible rollover distribution does not include: (i) any distribution
that 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 or the joint lives (or joint life expectancies)
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) effective
as of January 1, 2002, any hardship withdrawal. Effective as of January
1, 2002, clause (iii) does not apply to any after-tax participant
contributions that are paid to an individual retirement account or
annuity described in Code Section 408(a) or (b), or to a qualified
defined contribution plan described in Code Section 401(a) or 403(a)
that agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which
is not so includible.
(b)
An eligible retirement plan is an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), an annuity plan described in Code
Section 403(a) or a qualified trust described in Code Section 401(a),
that accepts the distributee's eligible rollover distribution. However,
in the case of an eligible rollover distribution to the surviving
spouse, prior to January 1, 2002, an eligible retirement plan is an
individual retirement account or individual retirement annuity. Effective
as of January 1, 2002, an "eligible retirement plan" includes an annuity
contract described in Code Section 403(b) and an eligible plan under
Code Section 457(b), 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, and which agrees to separately account for
amounts transferred into such plan from this plan.
(c)
A distributee includes an employee or former employee. In addition,
the employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
Section 414(p)(11), are distributees with regard to the interest of
the spouse or former spouse.
(d)
A direct rollover is a payment by the plan to the eligible retirement
plan specified by the distributee.
L.
Nonspouse beneficiaries. Effective as of January 1, 2007, if a beneficiary
who is not a surviving spouse is entitled to receive what would otherwise
be an "eligible rollover distribution," the beneficiary may, in accordance
with Code Section 402(c)(11), make a trustee-to-trustee transfer of
that amount to an IRA or individual retirement annuity (other than
an endowment contract),. provided that:
M.
Consent for lump-sum distributions. Effective January 1, 2006, notwithstanding
any other provision of the plan, any distribution to a participant
made prior to the earlier of age 62 or normal retirement age of an
amount in excess of $1,000 that is an eligible rollover distribution
as set forth in the plan and the Code shall be made only upon consent
of the participant.
N.
Credit for qualified military service. 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 Code.
A.
Actuarial valuations.
(1)
The actuary to the plan shall perform an actuarial valuation at least
biennially. Each biennial actuarial valuation report shall be made
as of the beginning of each plan year occurring in an odd-numbered
calendar year, beginning with the year 1985.
(2)
Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in Act 205.
(3)
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by Act 205 or any other expense which
is permissible under the terms of Act 205 and which are directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the trust. Such allowable expenses shall
include, but shall 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 expenses for officials of the
plan.
(4)
The employer shall monitor the services provided to the plan to ensure
that the expenses are necessary, reasonable and benefit the plan,
and further provided, that the administrator shall document all such
expenses item by item and, where necessary, hour by hour.
B.
Duties of the chief administrative officer.
(1)
The actuarial reports described above shall be prepared and filed
under the supervision of the chief administrative officer.
(2)
The chief administrative officer of the plan shall determine the
financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum obligation of the
City with respect to funding the plan for a given plan year. The chief
administrative officer shall submit the financial requirements of
the plan and the minimum obligation of the City to Council annually
and shall certify the accuracy of such calculations and their conformance
with Act 205.
C.
Modification of benefits. Prior to the adoption of any provision
that modifies a benefit provided hereunder, the chief administrative
officer shall provide to Council a cost estimate of the proposed modification.
Such estimate shall be prepared by an approved actuary, which estimate
shall disclose to Council the impact of the proposed modification
on the future financial requirements of the plan and the future minimum
obligation of the City with respect to the plan.
D.
Utilization of state aid. Payments of general municipal state aid,
or any other amount of state aid received pursuant to Act 205 from
the Commonwealth of Pennsylvania, which are received by the City and
deposited into the fund, shall be used as follows:
E.
City contributions. The remainder of the annual contributions required
under provisions of Act 205, as determined by the actuary to the plan
in accordance with Act 205, shall become the obligation of the City
and shall be paid into the fund by annual appropriations.
[1]
Editor's Note: See the Municipal Pension Plan Funding Standard
and Recovery Act, 53 P.S. § 895.101 et seq. (1984, Dec. 18, P.L.
1005, No. 205).
A.
Operation of the pension fund.
(1)
Council is hereby authorized to hold and supervise the investment
of the assets of the pension fund, subject to the provisions of the
laws of the Commonwealth of Pennsylvania and of this plan and any
amendment thereto.
(2)
The pension fund shall be used to pay benefits as provided in the
plan and, to the extent not paid directly by the employer, to pay
the expenses of administering the plan pursuant to authorization by
Council.
(3)
The employer intends the plan to be permanent and for the exclusive
benefit of its employees. It expects to make the contributions to
the pension fund required under the plan. The employer shall not be
liable in any manner for any insufficiency in the pension fund; benefits
are payable only from the pension fund and only to the extent that
there are monies available therein.
(4)
The pension fund will consist of all funds held by Council under
the plan, including contributions made pursuant to the provisions
hereof and the investments, reinvestments and proceeds thereof. The
pension fund shall be held, managed, and administered pursuant to
the terms of the plan. Except as otherwise expressly provided in the
plan, Council has exclusive authority and discretion to manage and
control the pension fund assets. Council may, however, appoint a trustee,
custodian and/or investment manager, at its sole discretion. If Council
does not appoint a trustee, the trustee shall be Council.
(5)
If all plan assets are held in one or more custodial accounts or
annuity contracts issued by an insurance company licensed to do business
in Pennsylvania, then the Council does not need to appoint a trustee
and plan assets shall be administered in accordance with the other
provisions of this plan and the terms of the agreement with the insurance
company. If there is a separate trust document, then the terms of
that document shall supersede the provisions of this section. If the
Council fails to name a trustee, the City shall be the trustee.
B.
Powers and duties of Council. With respect to the pension fund, Council
shall have the following powers, rights and duties, in addition to
those vested in it elsewhere in the plan or by law, unless such duties
are delegated.
(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 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 of 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 this 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, Council 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 Council 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 the other pension plans maintained
by Council, provided that the assets of each respective plan shall
be accounted for and administered separately.
(10)
To invest the assets of the pension fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which 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 Council, such trustee shall make such distribution
only at the direction of Council.
(12)
To compromise, contest, arbitrate, enforce or abandon claims
and demands with respect to the plan.
(13)
To retain any funds or property subject to any dispute without
liability for the payment of interest thereon, and to decline to make
payment or delivery thereof until final adjudication is made by a
court of competent jurisdiction.
(14)
To pay, and to deduct from and charge against the pension fund,
any taxes which may be imposed thereon, whether with respect to the
income, property or transfer thereof, or upon or with respect to the
interest of any person therein, which the fund is required to pay;
to contest, in its discretion, the validity or amount of any tax,
assessment, claim or demand which may be levied or made against or
in respect to the pension fund, the income, property or transfer thereof,
or in any matter or thing connected therewith.
(15)
To appoint any persons or firms (including but not limited to
accountants, investment advisors, counsel actuaries, physicians, appraisers,
consultants, professional plan administrators and other specialists),
or otherwise act to secure specialized advice or assistance, as it
deems necessary or desirable, in connection with the management of
the fund; to the extent not prohibited by applicable law, Council
shall be entitled to rely conclusively upon and shall be fully protected
in any action or omission taken by it in good faith reliance upon
the advice or opinion of such persons or firms, provided such persons
or firms were prudently chosen by Council, taking into account the
interests of the participants and beneficiaries and with due regard
to the ability of the persons or firms to perform their assigned functions.
(16)
To retain the services of one or more persons or firms for the
management of (including the power to acquire and dispose of) all
or any part of the fund assets, provided that each of such persons
or firms 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,
Council 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, nor shall it be under any obligation to review
or otherwise manage any fund assets which are subject to the management
of such investment manage or managers. If Council appoints a trustee,
the trustee shall not be permitted to retain such an investment manager
except with the express written consent of Council.
C.
Common investments. Council shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account, but may invest contributions and any
profits or gains therefrom in common investments.
D.
Compensation and expenses of appointed trustee. If a trustee is appointed,
the trustee shall be entitled to such reasonable compensation as shall
from time to time be agreed upon by Council and the trustee, unless
such compensation is prohibited by law. Such compensation, and all
expenses reasonably incurred by the trustee in carrying out his functions,
shall constitute a charge upon Council or the pension fund, which
may be executed at any time after 30 days' written notice to the Council.
Council shall be under no obligation to pay such costs and expenses,
and in the event of its failure to do so, the trustee shall be entitled
to pay the same or to reimburse itself for the payment thereof from
the pension fund.
E.
Periodic accounting. If a trustee is appointed, the pension fund
shall be evaluated annually, or at more frequent intervals, by the
trustee and a written accounting rendered as of each fiscal year end
of the fund, and as of the effective date of any removal or resignation
of the trustee, and such additional dates as requested by Council,
showing the condition of the fund and all receipts, disbursements
and other transactions effected by the trustee during the period covered
by the accounting, based on fair market values prevailing as of such
date.
F.
Value of the pension fund. All determinations as to the value of
the assets of the pension fund, and as to the amount of the liabilities
thereof, shall be made by Council or its appointed trustee, whose
decisions shall be final. In making any such determination, Council
or the 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.
G.
Plan administration expenses. All reasonable expenses incident to
the functioning of the administrator may be paid by the plan, to the
extent permitted by law and not otherwise paid by the employer.
A.
Amendment.
(1)
The City shall have the right to amend this plan at any time; provided,
however, that no such action shall be effective to permit any part
of the corpus or income of the plan established herewith to be used
for, or diverted to, purposes other than the exclusive benefit of
the participants and their beneficiaries, and defraying the reasonable
expenses of administering the plan. The City retains the right to
amend the plan at any time.
(2)
No amendment to the plan (including a change in the actuarial basis
for determining optional or early retirement benefits) or restricting
a participant's right to those benefits shall be effective to the
extent that it has the effect of decreasing a participant's accrued
benefit.
A.
Plan not a contract of employment. No employee of the employer, nor
anyone else, shall have any rights whatsoever against the employer
or the administrator as a result of this plan, except those rights
expressly granted to them hereunder. Nothing herein shall be construed
to give any employee the right to remain an employee of the employer.
B.
Gender and number. For purposes of the plan and wherever plainly
necessitated by the person or context, the masculine shall be read
for the feminine, and the singular shall be read for the plural.
C.
Expenses. To the extent permitted by state law, all expenses related
to the operation and administration of the fund and plan shall be
paid from the assets of the fund.
D.
Construction. The validity of the plan or any of its provisions shall
be determined and construed pursuant to the laws of the Commonwealth
of Pennsylvania, the federal government, and the agencies thereof.
E.
Severability of provisions. In the event that any provision, section,
subsection, paragraph, sentence, clause, or other part of the plan
shall be held to be invalid, such invalidity shall not affect or impair
any remaining provisions, sections, subsections, paragraphs, sentences,
clauses, or other parts of the plan.
F.
Headings. The headings and subheadings employed within the current
document have been inserted for convenience of reference and are to
be ignored in the construction of the provisions hereof.
G.
Incapacity of participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of benefits hereunder, the administrator, upon the receipt
of satisfactory evidence that such participant is incapacitated to
the aforesaid extent and that another person or institution maintains
him, may provide for such payment of benefits hereunder to such person
or the institution maintaining him, and any such payments so made
shall be deemed for every purpose to have been made to such participant.
H.
Protective clause relative to administration. Subject to the provisions
of all laws applicable hereto, and unless otherwise specifically required,
no past, present or future officer of the employer shall be personally
liable to any participant, beneficiary or other person under any provision
of the plan.
I.
Sole benefit. The income and principal of the plan are for the sole
use and benefit of the participants covered hereunder and, to the
extent permitted by law, shall be free, clear and not in any way liable
for debts, contracts or agreements, and from all claims and liabilities
now or hereafter incurred by any participant, beneficiary, or alternate
payee.
J.
Assignment. Except as provided in § 48-9J hereof, the pension payments herein provided for shall not be subject to attachment, execution, levy, garnishment or other legal process, and shall be payable only to the former participant, his survivors or his designated beneficiary, or alternate payee and shall not be subject to assignment or transfer.
[Added 3-8-2021 by Ord.
No. 1860[1]]
A.
Deferred Retirement Option Provision (DROP) overview. The plan shall provide for a deferred retirement option provision, hereafter referred to as "DROP" for participants who qualify for and apply for such option pursuant to this section. In general, the DROP provides participants who are eligible for normal retirement and meet the DROP eligibility requirements in Subsection B, the opportunity to continue working and still be entitled to their pension benefit. Such a participant would "retire" from the plan on the date of their choosing and would agree to finally separate from active service at a date no more than 48 months later. A calculation is made of the monthly normal retirement benefit as of the DROP participation date. The DROP participant is then considered retired for all pension plan purposes. The amount of each monthly benefit is credited to the participant's DROP account, along with interest, while the participant is still actively employed. When the participant finally leaves employment, the value of the DROP account is distributed to the participant (either a lump sum or rollover) and the monthly benefits are paid directly to the participant.
B.
Eligibility.
(1)
Starting on January 1, 2019, members of the City of DuBois Police
Bargaining Unit who have not retired prior to the implementation of
the DROP program, who have reached 50 years of age and completed 20
or more years of credited service with City of DuBois, or who will
meet those requirements prior to participation in the DROP, will be
eligible to participate in the DROP. A member's maximum DROP
participation period shall be 48 months.
(2)
Participation in the DROP does not guarantee the DROP participant's
employment by the City during the specified DROP period.
C.
Written election.
(1)
An eligible member of the plan electing to participate in the
DROP program must complete and execute a "DROP Election Form" prepared
by the City of DuBois, which shall evidence the member's participation
in the DROP program, and document the participant's rights and
obligations under the DROP. The form must be signed and notarized
by the member and submitted to the City of DuBois at least 30 days
prior to the member's effective date of retirement. Such election
must detail a DROP participant's rights and obligations under
the DROP and include an agreement to forego: a) active membership
in the plan; b) any growth in the salary base used for calculating
the retirement benefit; and c) any additional benefit accrual for
retirement purposes, including any length-of-service increments. The
DROP participant shall be required to provide any other information
required by the plan administrator.
(2)
The DROP election form shall include an irrevocable notice to
the City of DuBois by the member that the member shall terminate from
employment with City of DuBois Police Department effective on a specific
date no later than four years from the effective date of the DROP
election. A member's maximum DROP participation period shall
be 48 months. A member shall cease work as a City of DuBois police
officer on the member's resignation date, unless the City terminates
or honorably discharges the member prior to the resignation date.
In addition, all retirement documents required by the City of DuBois
Police retirement plan administrator must be filed and presented to
the City Council. Once the retirement application has been approved
by the City, it shall become irrevocable.
(3)
After a member enters the DROP program, contributions to the
pension plan by the participant and the City will cease, and the amount
of the monthly benefit will be frozen.
(4)
Members are hereby advised to consult a tax advisor, of their
choice, prior to considering the DROP program, as there may be serious
tax implications and/or consequences to participating in the DROP
program.
D.
Limitation on pension accrual. After the effective date of the DROP
election, the participant shall no longer earn or accrue additional
years of continuous service for pension purposes.
E.
Benefit calculation. Upon receipt of a participant's election
form to participate in DROP, the employer shall calculate the normal
retirement benefit based on the employee's years of aggregate
service and final monthly average salary as of the employee's
DROP participation date. The monthly benefit shall be fixed at that
time for the duration of the DROP participation and for the rest of
the retiree's life thereafter. For all plan purposes, continuous
service of a member participating in the DROP program shall remain
as it existed on the effective date of the commencement of participation
in the DROP program. Service thereafter shall not be recognized or
used for the calculation or determination of any benefits payable
by the City of DuBois Police retirement plan. Earnings or increases
in earnings after the effective date of commencement of participation
in the DROP program shall not be recognized or used for the calculation
or determination of any benefits payable by the plan.
F.
Payments
to DROP account. A DROP account shall be established as an interest-bearing
ledger account in the pension trust fund in the name of the DROP participant
for purposes of accumulating DROP retirement benefits during DROP
participation. The account balance shall be accounted for separately
but need not be physically segregated from other pension trust fund
assets. Whether or not a DROP account is physically segregated from
other trust fund assets shall be at the sole discretion of the plan
administrator. Starting with the calendar month following the DROP
participation date, the amount of the DROP retirement benefit shall
be credited to the DROP participant's DROP account each month
during the DROP participation. Interest shall be credited to the DROP
account. The rate of interest shall be the actual rate of return on
the DROP account, but no less than 0% and no more than 4.5% per year.
This will be accomplished by use of a fixed rate of return, guaranteed
investment vehicle with a rate of return between 0% and 4.5%, such
as a certificate of deposit or other similar investment.
G.
Early termination. A DROP participant may change the DROP termination date to an earlier date and no penalty shall be imposed for early termination of DROP participation. Notice should be provided to the City at least 60 days prior to any such early termination, unless the reason for the early termination is due to a total and permanent disability. Upon either early or regular termination of DROP participation the DROP participant shall be separated from employment with the City and the retirement plan shall pay the balance in the DROP participant's DROP account to the terminating participant as provided in Subsection H and the DROP participant shall be ineligible to re-enroll in the DROP thereafter even if the former DROP participant is re-employed by the City.
H.
Payout.
(1)
Upon the termination date set forth in the DROP Election Form
or on such date as the participant withdraws or is terminated from
the DROP program, if earlier, the benefits payable to the participant
or the participant's beneficiary, if applicable, shall be paid
directly to the participant or beneficiary and shall no longer be
credited to the DROP account. Within 45 days following the actual
termination of a participant's employment with City of DuBois,
the accumulated balance in the DROP account shall be paid to the participant
or beneficiary where applicable in a single lump-sum payment. Such
payment shall be made in cash, subject to any federal withholding
as may be required, or at the participant's option, as a direct
rollover to an individual retirement account (IRA) or other qualified
retirement account as permitted by law. If the participant selects
the rollover option, he or she must also submit the appropriate paperwork
from the IRA or other qualified retirement plan custodian within 20
days following termination or within the required election period,
whichever is shorter. If the participant, participant's survivor
or beneficiary fails to elect a method of payment within 180 days
after the participant's termination date, the City shall pay
the balance as a lump sum.
(2)
Following termination of DROP participation, the subsequently
paid benefits payable to the participant, participant's survivor
or the participant's beneficiary shall no longer be credited
to the DROP account but shall be distributed monthly pursuant to normal
retirement benefit plan rules.
(3)
Following termination of DROP participation, the DROP participant
shall be ineligible to re-enroll in the DROP thereafter even if the
former DROP participant is re-employed by the employer.
I.
Disability during DROP. If a participant becomes eligible for a disability
pension benefit and terminates employment, the monthly normal retirement
benefit to the DROP participant shall terminate.
J.
Death. A DROP participant's eligibility to participate in the
DROP terminates if the DROP participant dies. The monthly benefit
credited to the participant's DROP account during the month of
the participant's death shall be the final monthly benefit for
DROP participation. If a participant dies before the DROP account
balance is paid, the participant's beneficiary shall have the
same rights as the participant to withdraw the DROP account balance.
Except for those benefits specifically payable as a result of death
incurred in the course of performing a hazardous public duty under
the Emergency and Law Enforcement Personnel Death Benefits (Act 51[2]), the survivors of a DROP participant who dies shall not
be eligible to receive retirement system death benefits payable in
the event of the death of an active member. The DROP participant's
survivor shall be eligible to receive retirement system death benefits
normally payable in the event of the death of a retired employee.
[2]
Editor's Note: See 53 P.S. § 891 et seq.
K.
Amendment. Any amendments to the DROP ordinance shall be consistent
with the provisions covering deferred retirement option plans set
forth in any applicable collective bargaining agreement or state or
federal law, and shall be binding upon all future participants and
upon all participants who have balances in their DROP accounts.
L.
Effective date. The effective date of the DROP program will be January
1, 2019.
M.
Expiration of DROP provisions. If at any time it is determined that
the City has incurred actual costs in connection with the DROP benefit,
this DROP benefit provision shall automatically expire and be removed
from the parties' collective bargaining agreement, subject to
the terms herein. If the City determines that there has been a cost
incurred due to the DROP benefit such that the City takes the position
that the DROP benefit should immediately expire (sunset), the parties
shall meet to discuss whether there is a way to mitigate the cost
identified by the City. If, within three months of the City's
notification to the union, the parties are unable to mitigate the
cost to the satisfaction of both the City and the union, then both
parties agree to take the matter to a neutral arbitrator. The purpose
of the arbitration shall be to mitigate as far as possible the cost
identified by the City and the parties agree to cooperate with one
another and the neutral, in good faith, to find a solution to that
issue. In the event that the result of this process is to discontinue
the benefit, any police officer presently participating in the DROP
shall be permitted to complete said participation up to the separation
date identified in his or her DROP election paperwork. The participant's
enrollment in the DROP will not be cut short even if an arbitrator
determines that there is a cost sufficient to sunset the program.
No new employee would, in that event, be permitted to enter the DROP.
N.
Severability. The provisions of this Deferred Retirement Option Plan
shall be severable, and if any of its provisions shall be held to
be unconstitutional or illegal, the validity of any of the remaining
provisions of this section shall not be affected thereby. It is hereby
expressly declared as the intent of the City of DuBois that this section
has been adopted as if such unconstitutional or illegal provision
or provisions had not been included herein.
[1]
Editor's Note: Section 4 of this ordinance states that
it is effective upon final enactment retroactive to 1-1-2019, in accordance
with the terms and conditions of the negotiated agreement which became
effective 1-1-2019.
[Adopted 2-27-2012 by Ord. No. 1776]
A pension plan is hereby established for the City's nonuniformed
employees and elected officials. Such plan shall be under the direction
of the Council of the City of DuBois and shall be applied under such
regulations as the Council may prescribe. The effective date of this
article shall be January 1, 2012; however, the plan established hereunder
shall be deemed a continuation of the previous nonuniformed pension
plan, as maintained and administered by PMRS, for state aid purposes.
As used in this article, the following terms shall have the
meanings indicated:
The persons which may be appointed to serve in an advisory
capacity to the Council in the administration of the plan.
The monies paid by the employer to the plan and/or the payroll deductions made monthly from the salaries of the participants and paid to the plan; except that "contributions" in § 48-17G shall mean total contributions paid by the participant and accumulated during the period of employment and participation in this plan.
The governing body of the City of DuBois acting in the capacity
of administrator of the nonuniformed employees pension plan established
pursuant to this article.
The City of DuBois.
The value of any participant's benefits which shall accrue
by virtue of that participant's service rendered subsequent to the
enactment of this article.
Every person duly appointed from time to time by the employer
as a full-time nonuniformed employee working not less than 35 hours
per week at a definite salary, subject to reasonable vacation and
sick leave, to be included in the plan upon date of hire. The term
"participant" shall also include elected officials, but such membership
shall be optional. Any current full-time employee or elected official
who did not become a participant of the plan upon date of hire or
election shall be entitled to receive pension credit for any prior
service to the City, provided that such participant deposits the required
amount of member's contributions for the applicable period of time,
together with interest at a rate of 6% compounded annually, from date
of service to date of deposit.
Any current part-time employee hired by the employer prior to
January 1, 2012, may elect to join the plan at any time and be eligible
for the same benefits as a full-time employee. However, any part-time
employee hired on or after January 1, 2012, shall not be eligible
to participate in this plan and shall not receive any benefit from
this plan.
The nonuniformed pension plan established pursuant to this
article.
The amount of compensation received by a participant in each
and every month, including base pay, overtime pay, longevity pay,
shift differential, and any other such increments. The term "salary"
shall include regular payments made for vacation time, sick time,
compensatory time, personal days and bereavement leave. The term "salary"
shall also include lump-sum payments for any unused days for any of
the foregoing listed benefits which were earned during the highest
five consecutive years of employment, as well as any severance payments
made at the time of termination or retirement, provided that participant
contributions are deducted from any such payments at the rate in effect
at that time.
Total aggregate service, not necessarily continuous, with
the employer.
The cessation of service by the participant for any reason,
including disability, resignation, and employee termination. Death
shall not be considered a termination within the meaning of this article.
Voluntary leaves of absence without pay shall not be considered a
termination for the purposes of this article, but no period of such
leave shall be computed in the total service for pension benefit purposes.
Leaves of absence with pay shall not be considered a termination within
the meaning of this article (provided that the municipality is able
to certify to the Department of the Auditor General that such participant
on a leave of absence with pay is within the definition of a participant
as set forth herein), but such leaves may be computed in the total
service for pension benefit purposes.
The present value of any participant's benefits accrued prior
to the enactment of this article by virtue of that participant's prior
service.
A.
The Council shall administer the plan by such regulations as shall
from time to time be necessary for the effective maintenance of the
plan, provided that no regulation shall be contrary to the statutes
of the Commonwealth of Pennsylvania and/or applicable federal regulations.
B.
The Council shall appoint a committee, which shall act as an advisory
body to the Council in the administration of the plan according to
the regulations established pursuant to this section.
C.
Committee.
(1)
The Committee shall consist of two Administration participants, two
participants of the plan representing the union, two retired individuals
representing the retirees, and one Council member.
(2)
All such persons so designated shall serve at the pleasure of the
Council. Any member may resign upon written notice to the Council
and the Committee. Any vacancies in the Committee arising from resignation,
death or removal shall be filled by the Council by the procedure set
out herein for the member of the Committee whose resignation, death
or removal has created the vacancy.
(3)
The Committee shall meet no less than annually, and members shall
serve without compensation for their services.
D.
The Committee shall act by such procedure as the Committee shall
establish, provided that all decisions shall be by majority vote.
The Committee may authorize one of its members to execute any document
or documents on behalf of the Committee, may adopt bylaws and regulations
as it deems necessary for the conduct of its affairs, and may appoint
such accountants, counsel, specialists or such other personnel as
it may deem desirable for the proper administration of the plan, provided
that all such executions of documents, adoptions of bylaws and regulations,
and appointments shall be approved by the Council.
E.
The Committee shall keep a record of all its proceedings and acts
which shall relate to the plan and shall keep all such books of accounts,
records and other data as shall be necessary for the proper administration
of the plan. All actions of the Committee shall be communicated to
the Council.
F.
All such reasonable expenses incurred in the administration of the
plan, including, but not limited to, fees for the services of specialists,
including actuaries, accountants, consultants, and legal counsel,
shall be approved by the Council, and all may be paid from the plan,
provided that no such payment shall be contrary to the statutes of
the Commonwealth of Pennsylvania.
G.
No member of the Council or the Committee established pursuant to
this section shall incur any liability for any action or failure to
act, excepting only liability for its own gross negligence or willful
misconduct. The employer shall indemnify each member of the Council
and the Committee against any and all claims, loss, damages, expense
and liability arising from any action or failure to act, except for
such that is the result of gross negligence or willful misconduct
of such member.
A.
Eligibility for normal retirement.
[Amended 1-12-2015 by Ord. No. 1804]
(1)
Employees hired before January 1, 2013. A participant in the plan
may retire from active employment on the first day of the month following
the attainment of age 60, provided that the participant has completed
12 or more years of service with the employer.
(2)
Employees hired on or after January 1, 2013. A participant in the
plan may retire from active employment on the first day of the month
following the attainment of age 60, provided that the participant
has completed 20 or more years of service with the employer.
B.
Normal retirement benefit.
[Amended 1-12-2015 by Ord. No. 1804]
(1)
Employees hired before January 1, 2013.
(a)
A participant who shall complete the age and service requirements
as set forth in this section shall receive a pension for life in the
amount equal to 2.50% multiplied by years of credited service with
a maximum benefit of 90%, times the participant's average monthly
salary over the participant's highest five consecutive years of employment.
(b)
Subject further to those limitations imposed by the statutes
of the Commonwealth of Pennsylvania, no offset or reduction from the
benefit here provided for shall be made for any social security retirement
benefits, workmen's compensation, or other benefits to which the participant
is also entitled.
(c)
The benefit herein provided shall be payable solely from the
assets of the plan.
(2)
Employees hired on or after January 1, 2013.
(a)
A participant who shall complete the age and service requirements
as set forth in this section shall receive a pension for life in the
amount equal to 50% of the employee's average annual salary or wages
received during the last or any five years of employment, whichever
is higher.
(b)
Subject further to those limitations imposed by the statutes
of the Commonwealth of Pennsylvania, no offset or reduction from the
benefit here provided for shall be made for any social security retirement
benefits, workmen's compensation, or other benefits to which the participant
is also entitled.
(c)
The benefit herein provided shall be payable solely from the
assets of the plan.
C.
Early retirement benefit.
[Amended 1-12-2015 by Ord. No. 1804]
(1)
Employees hired before January 1, 2013. A participant who has been
involuntarily terminated after eight years of credited service or
who has separated voluntarily after 20 years of credited service may
retire early. Benefits will be actuarially reduced for each year or
partial year thereof that early retirement takes place prior to age
60.
(2)
Employees hired on or after January 1, 2013. A participant who has
completed at least 20 years of service, but has not yet attained age
60, shall be entitled to a pension at age 60 if the participant continues
paying monthly employee's contributions equal to the last amount due
while in active employment until the employee reaches age 60.
D.
Disability benefit.
[Amended 1-12-2015 by Ord. No. 1804]
(1)
Employees hired before January 1, 2013.
(a)
A member who has 10 or more years of credited service may, upon
application or on application of one acting in the member's behalf,
or upon application of a responsible official of the municipality,
be retired by the City on a disability allowance if the physician
designated by the City, after medical examination of the member, shall
certify to the City that the individual is unable to engage in any
gainful employment and that said member ought to be retired. When
the disability of a member is determined to be service-connected,
no minimum period of service shall be required for eligibility.
(b)
A disability annuity payable from the total disability reserve
account which, together with the municipal annuity and the member's
annuity, if any, shall be sufficient to produce a retirement allowance
of 30% of the member's final salary. Where the disability of the member
is determined to be service-connected, the disability allowance shall
equal 50% of the member's final salary. The disability annuity shall
be reduced by the amount of any payments for which the member shall
be eligible under the Act of June 2, 1915 (P.L. 736, No. 338), known
as "The Pennsylvania Workmen's Compensation Act" or the Act of June
21, 1939 (P.L. 566, No. 284), known as "The Pennsylvania Occupational
Disease Act."
(c)
Any member with eight or more years of credited service entitled to retire for disability may, in lieu of such retirement, elect to retire not voluntarily under the provisions of Subsection C of this section.
(d)
Should a disability annuitant die before the total disability
retirement allowance received equals the amount of the member's accumulated
deductions at the time of disability retirement, the City shall pay
to the named beneficiary (if living, or if the named beneficiary predeceased
the annuitant or no beneficiary was named, then to the annuitant's
estate) an amount equal to the difference between such total retirement
allowance received and the annuitant's accumulated deductions. If
such difference is less than $100 and no letters have been taken out
on the estate within six months after the disability annuitant's death,
such difference may be paid to the undertaker or to any person or
municipality who or which shall have paid the claim of the undertaker.
(2)
Employees hired on or after January 1, 2013.
(a)
Should an employee become totally and permanently disabled,
after 10 years of service and before attaining the age of 60 years,
the employee shall be entitled to the pension. Proof of total and
permanent disability shall consist of a sworn statement from three
practicing physicians, designated by the Board, that the employee
is in a permanent condition of health which would permanently disable
the employee from performing the duties of the position or office.
(b)
The member shall be eligible to receive a normal retirement benefit, which shall not be reduced by eligibility for or receipt of Social Security benefits. Any member with 20 or more years of credited service entitled to retire for disability may, in lieu of such retirement, elect to retire not voluntarily under the provisions of Subsection C of this section.
E.
Death benefit.
(1)
A member who is entitled to a retirement allowance because of attaining
60 years of age or a member who is entitled to a voluntary early retirement
allowance because of completing 20 years of credited service may file
a written application for retirement requesting that such retirement
become effective at the time of death.
(2)
When applying for retirement, the member may elect one of the options provided in Subsection H of this section and nominate a beneficiary. The application shall be held by the City until: a) the member files a later application for a retirement allowance; or b) the death of the member while in municipal service.
(3)
If a member entitled to a retirement allowance dies while in municipal
service, benefits become effective as if the member had retired on
the day immediately preceding death. The beneficiary receives the
annuity option elected before the member's death. If an option was
not filed with the City, it shall be considered that the member elected
Option 1 as was provided by PMRS. In such event, payment under Option
1 shall be made to the beneficiary designated in the nomination of
beneficiary form on file with the City.
F.
Vested benefit.
(1)
A vested deferred monthly benefit shall be provided for any participant
whose termination date occurs prior to the participant's normal retirement
date, provided that the participant shall have completed a minimum
of 12 years of service with the employer and shall have notified the
employer of such intention to vest within 90 days of the participant's
date of termination. This benefit shall be computed in the same manner
as set forth in this section.
(2)
Such vested deferred monthly benefit shall be paid to the participant
upon attainment of that participant's normal retirement age as set
forth in this section.
(3)
The surviving spouse of a participant who dies before his or her
pension has vested shall be entitled to receive repayment of all money
which the participant invested in the pension fund, including the
participant's contributions and any excess interest previously awarded
to the participant, plus interest or other increases in value of the
participant's investment in the pension fund, unless the participant
has designated another beneficiary for this purpose.
G.
Termination.
(1)
If for any reason a participant shall terminate service with the
employer prior to becoming vested, that participant shall be entitled
to a refund of that participant's contributions plus interest at a
rate of 6% per annum. Such interest shall be uniform for all participants.
(2)
If a participant shall subsequently return to service and return
to the plan the contributions plus interest which were refunded to
the participant upon termination, together with interest at a rate
of 6% compounded annually from date of service to date of deposit,
the participant shall be entitled to credit for the prior years of
service to the extent of the return of contributions.
H.
Actuarial equivalent benefits.
(1)
Options on superannuation, early retirement or vesting. At the time
a member elects to receive a retirement benefit allowance, the benefit
may be payable throughout the member's life, in which case the benefit
is known as a "single life annuity." The member may alternatively
elect at the time of retirement to receive the equivalent actuarial
value in a lesser allowance, payable throughout life, with provisions
that:
(a)
Option 1. If the member dies before receiving in payments the
present value of the retirement allowance as it was at the time of
retirement, the balance, if less than $5,000, shall be paid in a lump
sum to the designated beneficiary if living, or if the named beneficiary
predeceased the member or if no beneficiary was named, then to the
member's estate. If the balance is $5,000 or more, the beneficiary
may elect, by application duly acknowledged and filed with the City,
to receive payment of such balance according to any one of the following
provisions:
(b)
Option 2. Upon the annuitant's death, the retirement allowance
shall be continued throughout the life of and paid to the survivor
annuitant, if then living.
(c)
Option 3. Upon the annuitant's death, one-half of the retirement
allowance shall be continued throughout the life of and paid to the
survivor annuitant, if then living.
(d)
Option 4. A member may elect to receive, in one payment at the
time of retirement, the full amount of the member's accumulated deductions
(not to include excess investment monies) standing to his credit in
the member's account. In so electing this option, the member forfeits
the portion of the annuity paid for from the accumulated contributions,
but shall continue to be entitled to an annuity comprised of the municipal
contribution and any excess investment monies so credited to the account.
Any member electing this option shall be entitled to receive his remaining
annuity calculated in accordance with any of the other options provided
for in this section.
(2)
Should a member who has elected a single life annuity die before
receiving in annuity payments the full amount of the total accumulated
deductions standing to his or her credit in the member account on
the effective date of retirement, the balance shall be paid to the
designated beneficiary.
I.
Nonalienation of benefits and vesting.
(1)
No benefit under the plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, or charge.
Nor shall any such benefits be in any manner liable for or subject
to garnishment, attachment, execution, levy or other legal process.
(2)
Further, all benefits granted herein shall vest in the participant
upon completion of the requirements for eligibility, and that participant's
benefits shall continue in the amount and in the form in which that
participant first became entitled to them.
J.
Cost-of-living adjustment.
[Amended 1-12-2015 by Ord. No. 1804]
(1)
Employees hired before January 1, 2013.
(a)
An annual cost-of-living adjustment may be provided to a retired
participant effective the first January following at least one year
from the initial date of retirement. The amount of such increase is
subject to the limitations as noted hereinafter:
[1]
Such an increment shall not exceed the percentage increase in
the Consumer Price Index as published by the Social Security Administration
each year.
[2]
In no case may the participant's total pension benefits exceed
90% of the retired participant's salary for computing retirement benefits.
[3]
The retired participant's total cost-of-living adjustments shall
not exceed 30% of the retiree's original pension benefit.
(b)
Effective January 1, 2012, a cost-of-living adjustment shall
be provided to all retirees and/or survivors who are receiving benefits
as of December 31, 2011. The amount of the adjustment shall be equal
to 3.6%.
(2)
Employees hired on or after January 1, 2013. The cost-of-living adjustment
to the normal retirement benefit is hereby eliminated because such
benefit is not permissible under the Third Class City Code.
A.
Contributions of the employer. Contributions to the plan by the employer
shall be in an amount determined by the annual minimum municipal obligation
(MMO) calculation, prepared in accordance with Act 205 of 1984, which
is certified to the governing body of the City by September 30 and
included in the City budget for the following year.
B.
Contributions of participants.
[Amended 1-12-2015 by Ord. No. 1804]
(1)
Employees hired before January 1, 2013.
(a)
Participants shall contribute 3.5% of their total compensation
to the funding of the plan. Such mandatory member contributions made
since January 1, 1987, shall be picked up by the City and shall be
treated as the employer's contributions in determining tax treatment
under the United States Internal Revenue Code for federal tax purposes.
For all other purposes, such pickup contributions shall be treated
as contributions made by the member. If a member terminates prior
to becoming eligible for any benefit or the member elects not to receive
a benefit, that individual shall be entitled to all accumulated contributions,
interest and any excess investment monies allocated to the member's
account.
(b)
Any future changes in the contributions requirement for participants
may be enacted by an ordinance or resolution.
(2)
Employees hired on or after January 1, 2013.
(a)
Participants shall contribute 3.5% of their total compensation
to the funding of the plan. Such mandatory member contributions made
since January 1, 1987, shall be picked up by the City and shall be
treated as the employer's contributions in determining tax treatment
under the United States Internal Revenue Code for federal tax purposes.
For all other purposes, such pickup contributions shall be treated
as contributions made by the member. If a member terminates prior
to becoming eligible for any benefit or the member elects not to receive
a benefit, that individual shall be entitled to a return of the total
amount paid to the pension fund by the member without interest.
(b)
Any future changes in the contributions requirement for participants
may be enacted by an ordinance or resolution.
C.
Allocation of commonwealth funds. Any payments made by the State
Treasurer to the employer from the monies received from the taxes
paid on the premiums of foreign casualty insurance companies for purposes
of retirement or disability benefit pensions for municipal employees
shall be used as follows:
(1)
To reduce the unfunded liability; or
(2)
After such liability is funded, to apply against the annual obligation
of the employer for future service cost; or
(3)
To the extent that the payments may be in excess of such obligations,
to reduce or eliminate the contributions paid by the participants.
D.
Allocation of assets of existing pension plans. Any assets of any
existing pension plans for the full-time, nonuniformed employees of
the City are hereby transferred to the plan established pursuant to
this article, and shall be applied against the unfunded liability.
E.
Gifts, bequests, and grants. All other monies and property received
by the plan, including gifts, bequests, devises, and grants, shall
be applied equally against the participant and the employer portions
of the future service cost unless otherwise specifically provided.
A.
Credit for military service. Any participant in the plan with at
least six months of service with the employer, who thereafter shall
enter the military service of the United States of America, shall
have credited to the participant's employment record for pension benefit
purposes all of the time spent by the participant in such military
service, provided that the participant returns to service with the
employer within six months after said participant's separation from
such military service.
B.
Purchase of nonintervening military service credits.
[Amended 1-12-2015 by Ord. No. 1804]
(1)
Employees hired before January 1, 2013.
(a)
A service credit may be purchased for each year of military
service or fraction thereof, not to exceed five years, by any participant
of the plan, provided the participant has completed five years of
service to the municipality subsequent to such military service. The
amount due for the purchase of credit for military service, other
than intervening military service, shall be computed by applying the
average normal cost rate for the City's nonuniformed pension plan,
as certified by the Public Employee Retirement Commission, but not
to exceed 10%, to the member's average annual rate of compensation
over the first three years of municipal service and multiplying the
result by the number of years and fractional part of a year of creditable
nonintervening military service being purchased, together with interest
at the rate of 6% compounded annually from the date of initial entry
of municipal service to the date of payment.
(b)
Any participant of the plan shall be eligible to receive service credit for intervening or nonintervening military service as provided herein, provided that the member is not entitled to receive, eligible to receive now or in the future, or is receiving retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other governmental agency, with the exception of a member eligible to receive or receiving military retirement pay earned by a combination of active duty and nonactive duty with a reserve or national guard component of the armed forces, which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Ch. 67 (relating to retired pay for nonregular services).
(2)
Employees hired on or after January 1, 2013. The credit for military
service is hereby eliminated because such benefit is not permissible
under the Third Class City Code.
A.
Matters or procedure not covered in this article shall be as set
forth in Act 205 of 1984, as may, from time to time, be amended.
B.
Should any change or mistake in records result in any member, beneficiary
or survivor annuitant receiving from the plan more or less than the
individual would have been entitled to receive had the records been
correct, regardless of the intentional or unintentional nature of
the error, and upon the discovery of such error the plan will correct
the error and, so far as practicable, adjust the payments which may
be made for and to such person in such a manner that the actuarial
equivalent of the benefit to which the individual was correctly entitled
shall be paid.
Upon termination of the plan, the assets shall be distributed
as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 48-17 for all participants who have retired prior to the termination of the plan or who are eligible to retire at the time of the termination of the plan.
B.
Sufficient funds shall be maintained to provide vested pension benefits prescribed in § 48-17 for all participants who are eligible for such benefits.
C.
Any funds representing contributions from the remaining participants
shall be returned to such participants with interest at a rate of
6% per annum.
D.
Of the remaining funds, those which can be identified as contributions
of the employer, or contributions other than those identified as unused
commonwealth allocations, shall be distributed as the Council sees
fit, provided that such distribution is made on a uniform basis.
A.
Neither the establishment of the plan hereby created, nor any modification
thereof, nor the creation of any fund or account, nor the payment
of any benefits shall be construed as giving to any participant or
other person any legal or equitable right against the employer, or
any officer or employee thereof, or the Council, except as herein
provided.
B.
Under no circumstance shall the plan hereby created constitute a
contract for continuing employment for any participant or in any manner
obligate the employer to continue or to discontinue the services of
an employee.
C.
This plan has been established and shall be maintained by the employer
in accordance with the laws of the Commonwealth of Pennsylvania. The
plan shall continue for such period as may be required by such laws,
provided that the employer may, by its own action, discontinue this
plan should such laws provide, and the employer reserves the right
to take such action in its sole and absolute discretion. Upon termination,
the employer shall have no liability hereunder other than that imposed
by law.
All investments by the Council of the assets of this plan shall
comply with any applicable state statutes, rules and regulations with
respect to municipal investments for nonuniformed pension funds and
with such regulations as the Council shall establish for the purpose
of investing such funds.
The Council reserves the right to amend, at any time, in whole or in part, any or all of the provisions of the plan, provided that no such amendment shall authorize or permit any part of the plan to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries, or their estates. Nor shall any amendment divest a participant of benefits vested by the provisions of § 48-17. All such amendments shall comply with the applicable statutes of the Commonwealth of Pennsylvania.
A.
This plan shall be constructed according to the laws of the Commonwealth
of Pennsylvania, and all provisions hereof shall be administered according
to the laws of such commonwealth.
B.
Wherever any words are used herein in the masculine gender, they
shall be construed as though they were also used in the feminine gender
in all cases where they would so apply; and wherever any words used
herein are in the singular form, they shall be construed as though
they were also used in the plural form in all cases where they would
so apply.
C.
Headings of sections and paragraphs of this article are inserted
for convenience of reference. They constitute no part of this plan
and are not to be considered in the construction thereof.
The provisions of this article shall be severable, and if any
section, paragraph, clause, sentence, or words of this article hereby
adopted are declared for any reason invalid, unlawful, or unconstitutional,
it is the intent of the City that it would have passed all other sections,
paragraphs, clauses, sentences, or words of this article independent
of the elimination herefrom of any such portion as may be declared
invalid, unlawful, or unconstitutional.
This article repeals all other ordinances and/or resolutions
prior to the date of its enactment, which documents established, maintained,
governed, or regulated a pension plan for the full-time, nonuniformed
employees of the City of DuBois, it being further provided that the
provisions of this article are intended to be a continuation of those
existing in Ordinance No. 1543, as amended, to the extent they are
consistent herewith.
