[Adopted 8-28-2019 by Ord. No. 958]
As used in this article, the following terms shall have the
meanings indicated:
The entire interest of a participant in the Plan. Unless
otherwise specified, the value of a participant's account shall be
determined as of the valuation date coincident with or next following
the occurrence of the event to which reference is made.
The last day of the plan year.
As to any participant who is married at the time of his/her death, the participant's spouse, except as provided in Subsection C of this definition;
As to any participant who is not married at the time of his/her
death, or is married, but whose spouse has consented to the designation
of a beneficiary other than himself/herself (to the extent of such
consent), the persons or entities designated by the participant in
writing to be his/her beneficiaries hereunder; and
As to any participant who dies not survived by a spouse, and
who has not designated a beneficiary (or who is not survived by any
such designated beneficiary), the participant's estate.
The first day of the first period for which an amount is
paid in any form.
The Borough Council of the Borough of Sayre.
In general. "Compensation" shall mean the participant's gross
pay before any payroll deductions. Compensation shall exclude any
amounts paid after termination of employment.
Limitation on applicable compensation. In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the contrary, the compensation of each participant taken into account under the Plan shall not exceed $275,000 (for 2018), as adjusted by the Commissioner of Internal Revenue for increases in the cost of living in accordance with Code Sec. 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which compensation is determined (determination period) beginning with or within such calendar year. If a determination period consists of fewer than 12 months, the annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. Notwithstanding the foregoing, compensation may not include amounts that are not included in compensation for purposes of the limit imposed under § 19-23A.
The period of 12 consecutive months designated as the vesting
computation period, as indicated by the context of usage.
The date when a participant is determined by the Plan Administrator
to be incapacitated due to total and permanent disability, or the
date when the participant's Employment terminates due to such total
and permanent disability, if later.
January 1, 2018.
An employee who is hired or rehired by the employer on or
after January 1, 2018.
Any individual employed by the employer as a regular full-time
employee, working at least 40 hours a week who is entitled to receive
a regular stated salary or wage, excluding any pension, retainer or
fee under contract.
Borough of Sayre, its successors and assigns.
That portion of a participant's account consisting of employer contributions pursuant to § 19-22A(2) of the Plan, and the earnings and accretions attributable thereto.
All money, property and investments held and invested in
the name of the Plan.
The Internal Revenue Code of 1986 as the same may be amended
from time to time.
The date on which the participant attains age 60.
Any person who has been or who is an eligible class employee of the employer and who has been admitted to participation in this Plan pursuant to the provisions of Article II. The term "participant" shall include active participants (those who are currently eligible to share in employer contributions to the Plan), retired participants (those former employees presently receiving benefits under the Plan or immediately entitled to receive such benefits), and vested participants (employees and former employees who are no longer active participants, any of whom are or may become entitled at some future date to the distribution of benefits from this Plan by reason of their having been active participants herein).
The Sayre Borough Nonuniformed Defined Contribution Pension
Plan as set forth in this article and as the same may from time to
time hereafter be amended. This Plan is intended to satisfy the requirements
of Section 401(a) of the Code as a governmental money purchase pension
plan. For purposes of the Code, the Plan is a separate plan from the
Sayre Borough Nonuniformed Pension Plan ("Pension Plan") and assets
held in trust under this Plan may not be commingled with or otherwise
used to pay benefits under the Pension Plan.
The person or committee named as such pursuant to the provisions
hereof, or, in the absence of any such appointment, the employer.
The twelve-month period commencing each January 1 and ending
on the subsequent December 31.
The April 1 of the calendar year next following the calendar
year in which the participant attains age 70 1/2, or if later,
the April 1 of the calendar year next following the calendar year
in which he/she retires.
The person to whom the participant was married on his/her
benefit commencement date, or if the participant's benefit commencement
date had not occurred at the time of his/her death, the person to
whom the participant was married at the time of his/her death.
The last day of the plan year (the "Annual Valuation Date")
and each other interim date during the plan year on which a valuation
of the Fund is made.
Each twelve-month period of employment with the employer
beginning on the employee's date of hire and ending on the employee's
date of termination of employment.
Shall have the following meanings when used in this Plan:
When applied to vesting provisions, a "year of service" shall
mean each vesting computation period.
For a participant who terminates employment prior to completing
five years of service, any previous years of service shall be disregarded
upon rehire. For a participant who has completed five consecutive
years of service, all prior years of service shall be reinstated upon
rehire.
All years of service which are disregarded under Subsection B shall cease to be years of service for all purposes under the Plan.
A.
Initial eligibility. Every eligible class employee shall become eligible
for Plan participation on his/her date of hire.
B.
Procedure for and effect of admission. Each eligible class employee
who becomes eligible for admission to participation in this Plan shall
complete such forms and provide such data as are reasonably required
by the Plan Administrator in order to become a participant on the
first day of the month following the month he/she was hired. By becoming
a participant, each employee shall for all purposes be deemed conclusively
to have assented to the terms and provisions of this Plan and to all
Plan amendments.
C.
Changes in status. In the event that a person who has been in the employ of the employer in a category of employment not eligible for participation in this Plan subsequently becomes an eligible class employee of the employer by reason of a change in status to a category of employment eligible for participation, he/she shall, subject to § 19-21B, become a participant as of the date on which occurs such change to eligible class employee status.
A.
Determination of amount.
(1)
Employer contributions. For each plan year, the employer shall contribute an amount equal to 5% of each participant's compensation for each Eligible participant. For the purpose of this section, an eligible participant shall mean a participant who is actively employed with employer on the last day of such plan year, who retired during the plan year after having attained normal retirement age, or who died during the plan year. Employer contributions with respect to qualified military service will be provided in accordance with Section 414(u) of the Code. The contribution shall be reduced by any amounts forfeited pursuant to § 19-27D. Any contribution made in respect of any plan year by the employer shall be deemed to have been made as of the valuation date occurring at the end of the plan year with respect to which such contribution was made.
(2)
Participant contributions. As of the effective date of this article,
participants are NOT required to make contributions to the Plan. However,
participants may make voluntary after-tax contributions to the Plan
in an amount not to exceed the applicable contribution limit as published
annually by the IRS ($55,000 for 2018).
B.
Timing of contributions. Employer shall pay its contribution made
with respect to any plan year on a quarterly basis on or before the
last day of the second complete month following each calendar quarter
or the last day of the plan year.
C.
Contingent nature of contributions. Each contribution made by the employer pursuant to the provisions of § 19-22A hereof is hereby made expressly contingent on the exclusion thereof for federal income tax purposes with respect to the participants for whom contribution is made.
D.
Exclusive benefit; refund of contributions. All contributions made
by the employer are made for the exclusive benefit of the participants
and their beneficiaries, and such contributions shall not be used
for nor diverted to purposes other than for the exclusive benefit
of the participants and their beneficiaries (including the costs of
maintaining and administering the Plan). Notwithstanding the foregoing,
to the extent that such refunds do not, in themselves, deprive the
Plan of its qualified status, refunds of contributions shall be made
to the employer under the following circumstances and subject to the
foregoing limitations:
(1)
Mistake of fact. In the case of a contribution which is made in whole
or in part by reason of a mistake of fact (for example, incorrect
information as to the eligibility or compensation of an participant,
or a mathematical error), so much of the employer contribution as
is attributable to the mistake of fact shall be returnable to the
employer upon demand. Repayment must be effectuated within one year
after the payment of the contribution to which the mistake applies.
(2)
Exclusive benefit; refund of contributions. In the event that any refund of amounts contributed pursuant to § 19-22A is paid to the employer hereunder, such refund shall be made without interest and shall be deducted from among the accounts of the participants, except to the extent that the amount of the refund can be identified to one or more specific participants (as in the case of certain mistakes of fact) in which case the amount of the refund identifiable to each such participant's account shall be deducted directly from such account.
A.
Annual additions limitations.
(1)
Incorporation of Code Section 415 by reference. Notwithstanding anything contained in this § 19-23A to the contrary, the limitations, adjustments, and other requirements prescribed in § 19-23A shall at all times comply with the provisions of Code Section 415 and the Regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference.
(2)
Compliance with treasury regulations. The Plan will comply with the final treasury regulations under Code Section 415, which are incorporated into the Plan by reference. Consistent with those regulations, a participant's compensation for purposes of the limit imposed under this § 19-23A includes regular compensation for services during an employee's regular working hours, or compensation for services outside of regular working hours (such as overtime and shift differential), commissions, bonuses or other similar payments if such amounts would have been paid to the employee prior to severance of employment if employment had continued and such amounts are actually paid by the later of 2 1/2 months after severance of employment or the end of the limitation year in which severance of employment occurs (the "latest permissible date"). Compensation for purposes of the limit imposed under this § 19-23A includes:
(a)
Any payments for unused accrued bona fide sick, vacation or
other leave if the employee would have been able to use the leave
if employment had continued and such payments were actually paid by
the latest permissible date.
(b)
Any amounts received by an employee pursuant to a nonqualified
deferred compensation plan if the amount would have been paid to the
employee if the employee had continued employment, only to the extent
the amounts are includible in the employee's gross income and such
payments were actually paid by the latest permissible date.
(c)
Any amounts of salary continuation payments made to an individual
during periods in which the individual does not perform services due
to qualified military service (as defined in Section 414(u)(1) of
the Code) to the extent the payments do not exceed the amounts the
individual would have received if the individual would have continued
performing services.
(d)
Any amounts of salary continuation payments made to an individual
who is permanently and totally disabled (as defined in Section 22(e)(3)
of the Code).
B.
Elimination of excess amount. In the event that the limit imposed under § 19-23A is exceeded with respect to any participant for a limitation year, the Plan shall eliminate such excess amount in accordance with the Internal Revenue Service's employee Plans Compliance Resolution System or pursuant to any other correction method permitted by law.
Allocation of net income (or loss) of the trust fund. The net
asset value of each fund of the fund shall be determined as of each
valuation date. The net asset value of each fund within the fund shall
be measured so as to include all realized and unrealized gains and
losses with respect to the fund assets. The gain or loss in the net
asset value of each fund within the fund since the preceding valuation
date shall be allocated among the accounts of all participants participating
in each such fund in the ratio that the account of each participant
in such fund as of the immediately preceding valuation date bears
to the Accounts of all participants in such fund as of the immediately
preceding valuation date. The end of year balance shall equal the
beginning of the year balance plus earnings or losses credited on
that balance at the rate earned by the plan for the plan year, plus
current year contributions.
A.
Normal retirement benefit. The normal retirement benefit payable
with respect to any participant retiring at his/her normal retirement
age shall be equal to 100% of his/her account as of the appropriate
valuation date coincident with or following the participant's normal
retirement age.
A.
Payment of death benefits. Except as provided below, upon the death
of a participant, a death benefit equal to the balance of the participant's
vested interest in his/her account shall be paid to the participant's
spouse.
B.
Unmarried participants; electing married participants.
(1)
If the participant is not survived by a spouse, or is survived by
a spouse who has consented, in accordance with procedures established
by the Plan Administrator, to the designation of a beneficiary or
beneficiaries other than such spouse (but only to the extent of the
portion of the participant's account subject to such consent) the
benefit hereunder shall be paid to the participant's beneficiary.
(2)
If the spouse of a participant dies subsequent to the death of the
participant but prior to the benefit commencement date, there shall
be paid to the estate of such deceased spouse only the amount, if
any, that such spouse would have received under the Plan.
C.
Beneficiary designation.
(1)
Spouse as beneficiary. The primary beneficiary of each married participant
shall be his/her spouse except to the extent that there is in force
a consent, executed by such spouse to the designation of one or more
beneficiaries other than or in addition to such spouse.
(2)
Beneficiary designation right. Each unmarried participant and each married participant whose spouse has consented to designation of persons or entities other than or in addition to such spouse as beneficiaries shall have the right to designate one or more primary and one or more contingent beneficiaries to receive any benefit becoming payable pursuant to this Article III. All beneficiary designations shall be in writing in a form satisfactory to the Plan Administrator. Each participant shall be entitled to change his/her beneficiaries at any time and from time to time with the consent of his/her spouse as provided in this § 19-26C.
(3)
Termination of beneficiary designation. Any designation of beneficiary by a participant pursuant to Subsection C(2) of this section shall become null and void upon the marriage of the participant subsequent to the date on which such designation was made.
(4)
Miscellaneous. Changes in beneficiary designations shall become effective
only upon receipt of the form by the Plan Administrator, but upon
such receipt the change shall relate back to and take effect as of
the date the participant signed the request (which shall be presumed
to be the date appearing on such form, or, if there be none, then
the date of the participant's death) whether or not the participant
is living at the time of such receipt. The Plan Administrator shall
not be liable by reason of any payment of the participant's death
benefit made before the receipt of any acceptable form designating
or changing the designation of the beneficiary.
(5)
Any change of beneficiary designation filed in proper form with the
Plan Administrator shall revoke all prior beneficiary designations.
The Plan Administrator shall be the sole determinant of the acceptability
of a beneficiary designation or change of beneficiary designation.
A.
Full and immediate vested interests. All participants shall become
fully (100%) vested upon death.
B.
Deferred vested interests. The participant's vested interest in his/her
account attributable to employer contributions shall be determined
from the following table as of any date of reference:
|
Years of Service
|
Vested Percentage
|
|---|---|
|
Less than 2
|
0%
|
|
2
|
20%
|
|
3
|
40%
|
|
4
|
60%
|
|
5
|
80%
|
|
6 or more
|
100%
|
C.
Forfeiture of nonvested accounts. The nonvested portion of a participant's
account shall be forfeited upon termination of employment and shall
not be subject to reinstatement.
D.
Allocation of forfeitures. Forfeitures arising under the Plan shall
be used to reduce future employer contributions required under the
Plan.
A.
Form and amount of benefit payments.
(1)
Normal form of benefits. Benefits shall be paid as a single-sum distribution.
(2)
Amount of benefit payment. For purposes of determining the amount
of a participant's benefit distribution, such participant's account
shall be valued as of the valuation date that coincides with or immediately
precedes the date on which the participant retires, dies, or otherwise
terminates Employment with entitlement to benefits under the Plan.
(a)
In addition, such account value shall be credited with any employer contribution pursuant to § 19-22A(1) made for the plan year following such valuation date in which retirement or death occurs.
(b)
In the event that the distribution does not commence prior to
any subsequent valuation date, the participant's account will share
in the interest earnings or losses of the fund up to the valuation
date, which immediately precedes payment.
B.
Benefit commencement dates.
(1)
Retirement benefits. Benefits payable by reason of a participant's
retirement are payable as soon as administratively practicable following
the valuation date of the Plan coincident with or next following the
event entitling the participant to such distribution. However, if
a participant does not submit a request describing the date that his
benefit is to commence, the participant will be deemed to have elected
to postpone benefit commencement until the time such participant elects
(in the form and manner prescribed by the Plan Administrator) to commence
benefit payments. Notwithstanding the foregoing, the participant's
benefit commencement date shall in no event be later than his/her
required beginning date.
(2)
Death benefits. Upon the beneficiary's election, benefits payable
by reason of the death of the participants shall commence and be paid
within one year of the date of the participant's death in a single
sum.
(3)
Deferred vested benefits. Benefits payable to a participant by reason of a separation from service (other than due to retirement or death) prior to his/her retirement shall be payable, as of the date that would have been the participant's normal retirement age, and shall not, in any event, be deferred beyond the participant's required beginning date. Notwithstanding the foregoing, a terminated vested participant shall have the right to request a distribution of any benefit to which he/she is entitled pursuant to Article III as of any earlier valuation date coincident with or next following the date of such request, and the Plan Administrator shall have the right to pay any such benefit, if the participant consents to such benefit distribution in writing. No distribution of such benefit shall occur prior to a termination of employment.
C.
Direct rollover.
(1)
In general. 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)
DIRECT ROLLOVER
DIRECT ROLLOVERS
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(a)
For purposes of this section, the following definitions shall apply:
Is a payment by the Plan to the eligible retirement plan
specified by the distributee or the Plan Administrator, if the distributee
does not make an election.
May be made to a Roth IRA described in Section 408A of the
Internal Revenue Code to the extent that the applicable requirements
of Code Section 408A are satisfied with respect to any direct rollover
to such Roth IRA.
Includes a participant or former participant. In addition,
the participant's or former participant's surviving spouse and the
participant's or former participant's spouse or former spouse who
is the alternate payee under a qualified domestic relations order,
as defined in Code section 414(p), are distributees with regard to
the interest of the spouse or former spouse.
Is a qualified trust described in Code Section 401(a), 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), an annuity contract
described in Code Section 403(b), an eligible plan under Section 457(b)
of the Code 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.
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 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; any distribution to the extent such distribution
is required under Code section 401(a)(9); and 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).
For purposes of the direct rollover provisions in this section
of the Plan, a portion of a distribution shall not fail to be an eligible
rollover distribution merely because the portion consists of after-tax
employee contributions that are not includible in gross income. However,
such portion may be paid only to an individual retirement account
or annuity described in Section 408(a) or (b) of the Code, or to a
qualified defined contribution plan described in Section 401(a) or
403(a) of the Code or any qualified trust or Code Section 403(b) plan
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.
(3)
Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a nonspouse beneficiary's election under this section,
a nonspouse beneficiary may elect to have any portion of a Plan distribution
(that is payable to such nonspouse beneficiary due to a participant's
death) paid in a direct trustee-to-trustee transfer to an individual
retirement account described in Code section 408(a) or to an individual
retirement annuity described in Section 408(b) (other than an endowment
contract) that has been established for the purposes of receiving
the distribution on behalf of such nonspouse beneficiary. For these
purposes, a "nonspouse beneficiary" is an individual who is a designated
beneficiary (as defined by Section 401(a)(9)(E) of the Internal Revenue
Code) of a participant and who is not the surviving spouse of such
participant.
D.
Required distributions.
(1)
Notwithstanding any other provision of this Plan, the entire benefit
of any participant who becomes entitled to benefits prior to death
shall be distributed either:
(a)
Not later than the required beginning date, or
(b)
Over a period beginning not later than the required beginning
date and extending over the life of such participant or over the lives
of such participant and a designated beneficiary (or over a period
not extending beyond the life expectancy of such participant, or the
joint life expectancies of such participant and a designated beneficiary).
(2)
If a participant who is entitled to benefits under this Plan dies prior to the date when the entire interest has been distributed after distribution of the benefits has begun in accordance with Subsection D(1)(b) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection D(1)(b) as of the date of the death.
(3)
If a participant who is entitled to benefits under this Plan dies
before distribution of the benefit has begun, the entire interest
of such participant shall be distributed within five years of the
death of such participant, unless the following sentence is applicable.
If any portion of the participant's interest is payable to (or for
the benefit of) a designated beneficiary, such portion shall be distributed
over the life of such designated beneficiary (or over a period not
extending beyond the life expectancy of such beneficiary), and such
distributions begin not later than one year after the date of the
participant's death or such later date as provided by regulations
issued by the Secretary of the Treasury, then for purposes of the
five-year rule set forth in the preceding sentence, the benefit payable
to the beneficiary shall be treated as distributed on the date on
which such distributions begin. Provided, however, that notwithstanding
the preceding sentence, if the designated beneficiary is the surviving
spouse of the participant, then the date on which distributions are
required to begin shall not be earlier than the date upon which the
participant would have attained age 70 1/2 and, further provided,
if the surviving spouse dies before the distributions to such spouse
begin, this section shall be applied as if the surviving spouse were
the participant.
(4)
For purposes of this section, the following definitions and procedures
shall apply:
(a)
"Required beginning date" shall mean April 1 of the calendar
year following the later of the calendar year in which the participant
attains age 70 1/2, or the calendar year in which the participant
retires.
(b)
The phrase "designated beneficiary" shall mean any individual
designated by the participant under this Plan according to its rules.
(c)
Any amount paid to a child shall be treated as if it had been
paid to the surviving spouse if such amount will become payable to
the surviving spouse upon such child's reaching majority (or other
designated event permitted under regulations issued by the Secretary
of the Treasury).
(d)
For purposes of this section, the life expectancy of a participant
or the participant's spouse (other than in the case of a life annuity)
may be redetermined but not more frequently than annually.
(5)
General rules. The requirements of this § 19-28D will take precedence over any inconsistent provisions of the Plan. All distributions required under this § 19-28D will be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the Treasury regulations thereunder, and the employer's good faith interpretation of such Code and Regulations.
E.
Veterans' survivor benefits. Notwithstanding any other provision
of the Plan to the contrary, in the case of the death of a participant
while performing qualified military service (as defined in Code section
414(u)), the survivors of the participant are entitled to any additional
benefits under the Plan (if any, other than benefit accruals related
to the period of such service which wouldn't otherwise be credited)
had the participant resumed and then terminated employment on account
of death.
