[Ord. 7554, adopted 3-14-2002]
There is hereby established, pursuant to the requirements of
the Municipal Pension Plan Funding Standard and Recovery Act (Act
No. 205 of 1984, Public Law 1005, 53 P.S. 895.101 et seq.), hereafter
"Act," a Board of Trustees to be known as the Board of Trustees of
the Comprehensive Municipal Pension Trust Fund of the City of New
Castle, hereafter "Board" and to continue a trust fund to be known
as the Comprehensive Municipal Pension Trust Fund, hereafter referred
to as "Fund," of the City of New Castle and to invest and otherwise
manage the assets of said fund in accordance with the requirements
of the Act.
[Ord. 7554, adopted 3-14-2002; Ord. 7921, passed 5-18-2010]
The Board of Trustees of the Comprehensive Municipal Pension
Trust Fund shall consist of nine members to be determined according
to the requirements of the Act. The members of City Council and the
Mayor shall be members of the Board of the Fund. The remaining three
members shall consist of one representative of the active membership
of each plan included in the Comprehensive Municipal Pension Trust
Fund which representative shall be elected by the active membership
of each respective plan. The member selected by the City Employees
as well as the City Treasurer shall also serve on the Plan Board of
that plan. To clarify, the City Employees Pension Plan Board shall
now be composed of the Mayor, City Controller, Business Administrator/Chief
Financial Officer of the City, City Treasurer and three participants.
The Fund will include all current plans and funds of all City employees.
[Ord. 7554, adopted 3-14-2002]
The three members of the Board elected by the active membership
of each plan shall serve for a term of two years. Any vacancies created
by the resignation, death or removal of such members shall be filled
by a special election of the active membership of the applicable plan
for the unexpired portion of elected member's term. After the
first term, the terms of such members shall be staggered such that
the terms of two such members shall expire on even-numbered years
and the terms of one such member shall expire on odd-numbered years.
Thus, the second term for one such member shall be for three years.
[Ord. 7554, adopted 3-14-2002]
Members of the Board of Trustees of the Fund shall serve without
compensation. This provision, however, shall not be deemed to prevent
reimbursement for proper expenses incurred in the performance of a
trustee duties and approved by the Board.
[Ord. 7554, adopted 3-14-2002]
The majority of the nine members of the Board of Trustees of
the Fund shall constitute a quorum for the transaction of any business
or the decision of any matters within its jurisdiction. The majority
of such quorum shall be sufficient to decide any question before it
except that every action must obtain at least four votes in favor
of action in order for it to pass. The Board of Trustees shall meet
at least once each quarter.
[Ord. 7554, adopted 3-14-2002]
The Board of Trustees of the Fund, acting by a quorum of its
members, shall have the following powers and duties:
(a) To select a Chairman of the Board of Trustees at the first meeting
of each year;
(b) To continue or revise the trust fund to be known as the Fund, to
receive and act as a repository for the assets amassed by the City's
various plans from which the payment of pension benefits and administrative
costs shall henceforth be paid in accordance with the procedures established
in C below;
(c) To invest and manage the assets of the Fund and to account for the
individual interests of the various plans in the said Trust Fund;
(d) To establish procedures in accordance with applicable law, to provide
access by the various plans to their respective interests in the Trust
Fund including the payment and/or deposit of contributions to the
fund;
(e) To contract for investment and investment consulting services;
(f) To assess reasonable administrative expenses of the Board of Trustees
of the Fund against the assets of the Fund; and
(g) To exercise and perform any and all other powers granted and duties
prescribed under the Act.
[Ord. 7554, adopted 3-14-2002]
Each plan will continue its aggregated pension accounting begun
when it entered into the Recovery Program summarized below.
Legal title to assets in the Comprehensive Municipal Pension
Trust Fund (Fund) shall be in the City as Trustee, or its nominees,
as Trustees, for any person having a beneficial interest in a particular
plan which is associated with the Pension Trust Fund.
[Ord. 7554, adopted 3-14-2002]
Each plan subject to the aggregation of pensions shall have
an undivided participation in the assets of the Fund. For accounting
purposes, the value of the participation by each individual plan aggregated
shall be calculated annually. The value for the initial year following
aggregation shall be that portion of the total value of the Pension
Trust Fund which bears the same relationship that the value of the
plan, as of the date of the aggregation, plus the contributions received
by the Pension Trust Fund with respect to that plan since the date
of aggregation, and reduced by the amount of retirement annuities
and benefits paid from the Pension Trust Fund for annuitants and benefit
recipients of that plan since the date of aggregation, bears to the
total value of all assets transferred to the Pension Trust Fund as
of the date of aggregation, plus the total contributions received
by the Pension Trust Fund since the date of aggregation and reduced
by the total amount of retirement annuities and benefits paid for
all annuitants and benefit recipients since the date of aggregation.
The value of the participation for each year subsequent to the initial
year following aggregation shall be that portion of the total value
of the Pension Trust Fund bears the same relationship that the value
of the participation of the plan, as of the close of the preceding
year plus the contributions received by the Pension Trust Fund with
respect to that plan during the year and reduced by the amount of
retirement annuities and benefits paid from the Pension Trust Fund
for annuitants and benefit recipients of that plan during the year,
bears to the total value of all participation in the Pension Trust
Fund as of the close of the preceding year plus the total contributions
received by the Pension Trust Fund during the year and reduced by
the total amount of retirement annuities and benefits paid for all
annuitants and benefit recipients during the year.
[Ord. 7554, adopted 3-14-2002]
The assets of the Fund shall be invested in investment securities
which are authorized investments pursuant to any applicable law for
any of the associated plans.
[Ord. 7554, adopted 3-14-2002]
Valuation of assets shall be determined by the provisions of
Section 202(e)(1) of the Act.
[Ord. 7554, adopted 3-14-2002]
This ordinance shall be construed in accordance with the Act
and applicable law.
[Ord. 7554, adopted 3-14-2002]
Any ordinance or parts of ordinances, in conflict herewith are
hereby repealed.