[Ord. 8016, passed 9-13-2012]
The City intends that this Plan shall meet all the pertinent
requirements established for a governmental plan (as defined in Internal
Revenue Code § 414(d)) under Internal Revenue Code § 401(a),
as amended, and the Plan shall be interpreted, wherever possible,
to comply with the terms of said Code and all formal regulations and
rulings pertinent to the Plan.
[Ord. 7226, adopted 9-14-1995; Ord. 7644, adopted 11-18-2003; Ord. 880, adopted 10-23-2008]
(a)
The following words and phrases as used in this Plan shall have the
meaning set forth in this article, unless a different meaning is otherwise
clearly required by the context:
(1)
ACCRUED BENEFIT — As of any given date, the Participant's
benefit determined under Subsection (b) of Section 167.04, calculated
on the basis of the Participant's Average Compensation determined
as of such date and multiplied by a fraction, the numerator of which
shall be the Participant's Years of Credited Service as of such
determination date and the denominator of which shall be the number
of Years of Credited Service which are required to be completed by
the Participant to attain Normal Retirement Age under the Plan. However,
in the case of a non-union Employee whose Employment is terminated
without his voluntary action, and who, if he had retired immediately
prior to his termination would have been eligible to elect to receive
an Early Retirement Benefit, the denominator shall not exceed 20.
Notwithstanding anything contained herein to the contrary, in no event
shall the fraction exceed one. In no event, however, shall the Accrued
Benefit exceed the maximum limitation, determined as of the date of
computation, provided under Subsection (g) of Section 167.04. All
Accrued Benefits are subject to all applicable limitations, reductions,
offsets and actuarial adjustments provided by the Plan prior to the
actual payment thereof and no Accrued Benefits shall be paid unless
the Participant satisfies all requirements hereunder for entitlement
to receive such benefit.
(2)
ACCUMULATED CONTRIBUTIONS — The total amount contributed
by any Participant to this Plan or its predecessor by way of payroll
deduction or otherwise. There shall be no interest credited to this
amount.
(3)
ACT — The Municipal Pension Plan Funding Standard and
Recovery Act (enacted as Act 205 of 1984), as amended, 53 P.S. § 895.101
et seq.
(4)
ACTUARIAL EQUIVALENT — Two forms of payment of equal actuarial
present value on a specified date. The factors to be used in determining
Actuarial Equivalents shall be 7% interest, and UP-1984 Mortality
Table rates.
(5)
ACTUARY — 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.
(6)
AUTHORIZED LEAVE OF ABSENCE — Any leave of absence granted
in writing by the Employer for reasons including, but not limited
to, accident, sickness, pregnancy or temporary disability, education,
training, jury duty or such other reasons as may necessitate authorized
leave from active employment.
(7)
AVERAGE COMPENSATION — The average of the monthly Compensation
of the Participant during any five continuous Years of Credited Service
prior to termination of Employment which provides the highest average,
or the monthly base rate of pay including longevity adjustments at
the time of termination from Employment, whichever produces the highest
average.
(8)
BENEFICIARY — The person or legal entity designated by
the Participant to receive any applicable benefits under the Plan
payable upon the occurrence of the death of the Participant. In the
event that a Participant does not designate a Beneficiary or the Beneficiary
does not survive the Participant, the Beneficiary shall be the surviving
spouse, or if there is no surviving spouse, the issue, per stirpes,
or if there is no surviving issue, the estate; but if no personal
representative has been appointed, to those persons who would be entitled
to the estate under the intestacy laws of the Commonwealth of Pennsylvania
if the Participant had died intestate and a resident of Pennsylvania.
(9)
BREAK IN SERVICE — Any period of time after Employment
has commenced during which an Employee fails to maintain a continuous
period of Employment.
(10)
CHIEF ADMINISTRATIVE OFFICER — The person designated by
the Employer who has primary responsibility for the execution of the
administrative affairs of the Plan.
(11)
CODE — The Internal Revenue Code of 1986, as amended.
(12)
COMMONWEALTH — The Commonwealth of Pennsylvania.
(13)
COMPENSATION — The base remuneration plus longevity payments
whether salary or hourly wages paid to an Employee by the Employer
with respect to personal services rendered as an Employee. Compensation
shall exclude extra or additional forms of remuneration such as overtime,
amounts paid as allowance or reimbursement for expenses, payments
made by the Employer to this or any other employee welfare or benefit
plans on behalf of its employees (other than deductions from the Employee's
remuneration which is reclassified as an Employer payment), and amounts
paid as lump sums for back-pay damage awards or settlements other
than to the extent that such amounts are credited to periods of time
when they would otherwise have accrued or been earned such that no
amounts are credited in a manner which would result in duplication
of remuneration for any particular period of time. Compensation is
subject to the limitation under Code Section 401(a)(17), which is
$230,000 for the Plan Year beginning in 2008. 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).
(14)
CONTRACT or POLICY — Any insurance or annuity contract
issued by an insurance company in accordance with the requirements
of the Plan.
(15)
COUNCIL — The City Council of the City of New Castle,
Pennsylvania.
(16)
DISABILITY RETIREMENT DATE — The first day of the month
coincident with or next following the date when a Participant who
has completed at least 10 years of Credited Service terminates Employment
due to a Total and Permanent Disability.
(17)
EMPLOYEE — Any person who is employed as a regular full-time
employee by the Employer, and who is not otherwise participating in
a pension plan or retirement program sponsored by the Employer which
recognizes credit for the same period of service to the Employer.
Employee shall include any elected or appointed official compensated
at a stated salary for services rendered.
(18)
EMPLOYER — The City of New Castle, Pennsylvania, a political
subdivision of the Commonwealth.
(19)
EMPLOYMENT — 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 an Employee. Employment
may include, for the purpose of determining Years of Credited Service,
an Authorized Leave of Absence to the extent it is specifically granted
in writing by the Council and permitted pursuant to applicable law.
Employment shall also include any period of qualified military
service as determined under the requirements of Chapter 43 of Title
38, United States Code, provided that the Participant returns to Employment
following such period of qualified military service, and the Participant
makes payment to the Plan in an amount equal to the Participant Contributions
that would otherwise have been paid to the Plan during such period
of qualified military service. The amount of Participant Contributions
shall be based upon an estimate of the Compensation that would have
been paid to the Participant during such period of qualified military
service as determined by the average Compensation paid to the Participant
during the 12 months immediately preceding the period of qualified
military service. The amount of Participant Contributions so calculated
must be paid into the Plan before the end of the period that begins
on the date of re-employment and ends on the earlier of the date that
ends the period that has a duration of three times the period of qualified
military service, or the date that is five years after the date of
re-employment.
(20)
INSURER or INSURANCE COMPANY — Any legal reserve life
insurance company licensed to do business in one or more states of
the United States.
(21)
LATE RETIREMENT DATE — The first day of the month coincident
with or next following the date when a Participant retires which is
subsequent to the Participant's Normal Retirement Date.
(22)
MINIMUM MUNICIPAL OBLIGATION — The minimum annual obligation
of the municipality as determined by the Actuary and certified by
the Chief Administrative Officer pursuant to the provisions of the
Act.
(23)
NORMAL RETIREMENT AGE — The later of attainment of age
60 or completion of 20 Years of Credited Service.
(24)
NORMAL RETIREMENT DATE — The first day of the month coincident
with or next following the date when an Employee attains Normal Retirement
Age.
(25)
NOTICE or ELECTION — A written document prepared in the
form specified by the Plan Administrator and delivered as follows:
if such Notice or Election is to be provided by the Employer or Plan
Administrator, it shall be mailed in a properly addressed envelope,
postage prepaid, to the last known address of the person entitled
thereto, on or before the last day of the specified Notice or Election
period; or, if such Notice or Election is to be provided to the Employer
or the Plan Administrator, it must be received by the recipient on
or before the last day of the specified Notice or Election period.
(26)
PARTICIPANT — Any Employee who has commenced participation
in this Plan in accordance with Section 167.02, and has not for any
reason ceased to participate hereunder.
(27)
PENSION FUND — The assets of the Plan, which shall be
accounted for separately from the assets of any other plans maintained
by the Employer and which shall be administered under the supervision
of the Employer in accordance with the terms of the Plan.
(28)
PENSION PLAN BOARD — The board appointed pursuant to the
provisions of applicable law to administer the Plan as more fully
described herein under Section 167.09.
(29)
PLAN — The City of New Castle City Employees Pension Plan.
(30)
PLAN ADMINISTRATOR or ADMINISTRATOR — The Pension Plan
Board. In the event no such Board is appointed, the Plan Administrator
shall be the Council.
(31)
PLAN YEAR — The twelve-month period beginning on January
1 and ending on December 31.
(32)
RESTATEMENT DATE — January 1, 1994, the effective date
of this amended and restated Plan.
(33)
TOTAL AND PERMANENT DISABILITY — A condition of physical
or mental impairment due to which a Participant is unable to perform
any customary duties of Employment with the Employer. The Plan Administrator
shall determine whether a Participant has incurred a total and permanent
disability based upon the results of an examination by three physicians
approved by the Plan Administrator.
(34)
YEAR OF CREDITED SERVICE — Shall refer to any twelve-month
period during (or fraction of year measured to the completed month)
which a Participant is employed in Employment whether or not it is
a continuous period of Employment. Credited Service shall be determined
from the date on which participation in the Plan shall commence and/or
the date that re-employment of a Participant shall commence, provided
that the Employee has authorized the payment of Employee contributions
to the Plan.
[Ord. 7226, adopted 9-14-1995]
(a)
Eligibility for participation. Each Employee who first became an
Employee after the adoption of this amended and restated Plan shall
be eligible to participate in the Plan as of the first day of Employment
provided that all administrative prerequisites such as authorizing
the payment of Employee contributions via payroll deduction have been
fulfilled. Each Employee who was a Participant in the Plan on the
day prior to the Restatement Date shall continue to be a Participant
on and after the Restatement Date subject to the terms and conditions
of the Plan as set forth herein. Each Employee who first became an
Employee prior to the adoption of this amended and restated Plan but
who was not a Participant in the Plan shall be a Participant subject
to the terms and conditions of the Plan as set forth herein as of
the adoption of this amended and restated Plan. Each such Employee
shall only accrue benefits hereunder from the date of participation
in the Plan unless and until such Employee pays into the Pension Fund
an amount equal to the employee contributions which would have been
paid into the Plan if the Employee had been a Participant in the Plan
during such time based upon the contribution requirements which were
then applicable.
(b)
Participation requirements. Each Participant hereunder shall be required to make contributions to the Plan, as provided in Subsection (a) of Section 167.03 hereof, and shall execute and complete any enrollment or application forms as required by the Plan Administrator.
(c)
Re-employment. Each Employee who had previously been employed by the Employer and incurred a Break in Service shall, upon re-employment, have prior Years of Credited Service re-credited for all purposes under the Plan upon repayment to the Plan of any amount of Accumulated Contributions which had been distributed pursuant to Subsection (b) of Section 167.08.
(d)
Change in status. A Participant who remains in the service of the
Employer but ceases to be an Employee eligible for participation hereunder,
or ceases or fails to make any contributions which are required as
a condition of participation hereunder, shall have no further benefit
accruals occur until the individual again qualifies as a Participant
hereunder eligible to resume such accrual of benefits.
(e)
Leave of absence. During any leave of absence that is not an Authorized
Leave of Absence, a Participant shall be deemed an inactive Participant
and shall not be given credit for Years of Credited Service nor continue
to accrue any benefits hereunder. If the Employee is not re-employed
by the expiration of such leave of absence, participation in the Plan
shall cease on the date on which such leave of absence commenced.
During any Authority Leave of Absence, a Participant shall continue
to receive credit for Years of Credited Service to the extent such
credit is specifically granted in writing by Council and is permitted
pursuant to applicable law provided that all required contributions
are paid to the Plan.
(f)
Record keeping. The Employer shall furnish the Administrator with
such information as will aid the Administrator in the administration
of the Plan. Such information shall include all pertinent data on
Employees for purposes of determining their eligibility to participate
in this Plan.
[Ord. 7226, adopted 9-14-1995; Ord. 7808, passed 1-11-2007]
(a)
Employee contributions. As a condition of participation hereunder,
each Participant shall be required to have contributions deducted
from the Participant's Compensation and contributed to the Plan
at the rate of not less than 3.5% (effective January 1, 2007 - 4.5%)
of the Participant's annual Compensation subject to taxation
under Code Section 3101(a) and 5% of the remainder of the Participant's
annual Compensation. The rate of Participant contributions may be
increased pursuant to the provisions of the Act which govern the administration
of the Plan while the Plan is deemed to be a distressed Plan under
the terms of the Act. Furthermore, each Participant who shall become
eligible to receive salary continuation payments under a workers compensation
or similar law due to injury or illness shall be required to continue
to pay contributions to the Plan during such period of time that such
Participant is entitled to accrue additional Years of Credited Service
under the Plan while not actively rendering service in Employment.
(1)
Effective as of April 1, 1996, the City of New Castle shall
"pick-up" the mandatory employee contributions to the Plan, provided
that the said "pick-up" of employee contributions is approved as a
valid application of the provisions of the Internal Revenue Code Sec.
414(h)(2).
(2)
The City of New Castle, its officers, agents, and employees
are hereby authorized to take all actions and to do all things that
may be necessary or required to effect the implementation of this
Ordinance including obtaining the ruling from the Internal Revenue
Service that the "pick-up" is valid pursuant to the provisions of
Internal Revenue Code Sec. 414(h)(2) if such officers, agents, or
employees determine it is necessary or appropriate to obtain such
a ruling.
(b)
Employer contributions. The Actuary, in accordance with the Act,
shall annually determine the Minimum Municipal Obligation of the Employer.
The Employer shall pay into the Pension Fund, by annual appropriations
or otherwise, the contributions necessary to satisfy the Minimum Municipal
Obligation. Notwithstanding the foregoing, nothing contained herein
shall preclude the Employer from contributing an amount in excess
of the Minimum Municipal Obligation.
(c)
State aid. General municipal pension system State Aid, or any other
amount of State Aid received by the Employer in accordance with the
Act from the Commonwealth may be deposited into the Pension Fund governed
by this Plan and shall be used to reduce the amount of the Minimum
Municipal Obligation of the Employer.
(d)
Gifts. The Council is authorized to take by gift, grant, devise or
otherwise any money or property, real or personal, for the benefit
of the Plan and cause the same to be held as a part of the Pension
Fund. The care, management, investment and disposal of such amounts
shall be vested in the Council or its delegate, the Plan Administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the Plan.
(e)
No reversion to the employer. At no time shall it be possible for
the Plan assets to be used for, or diverted to, any purpose other
than for the exclusive benefit of the Participants and their Beneficiaries,
except that contributions made by the Employer may be returned to
the Employer if the contribution was made due to a mistake of fact
and the contribution is returned within one year of the mistaken payment
of the contribution or the Plan is terminated, as provided in Section
167.11
[Ord. 7226, adopted 9-14-1995; Ord. 7440, adopted 7-20-2000; Ord. 7474, adopted 2-8-2001; Ord. 7631, adopted 8-21-2003; Ord. 7646, adopted 12-4-2003; Ord. 7880, adopted 10-23-2008]
(a)
Normal retirement. Each Participant shall be entitled to a Normal
Retirement Benefit after retirement on or after attainment of Normal
Retirement Age. A Participant shall be 100% vested in his Normal Retirement
Benefit upon attainment of Normal Retirement Age.
(b)
Normal retirement benefit. Each Participant who shall become entitled to a benefit pursuant to Subsection (a) of Section 167.04 hereof shall receive a benefit commencing on the Participant's Normal Retirement Date and paid in the Normal Form as provided in Subsection (a) of Section 167.07 hereof. The monthly amount of the Normal Retirement Benefit shall be equal to 50% of the Participant's Average Compensation and the said benefit shall be reduced by an amount equal to 40% of the primary insurance amount of Social Security paid or payable to the Participant. Such reduction in the said benefit amount shall commence as of the attainment of the age at which Social Security benefits are payable to the Participant and determined as of that date based only on the Compensation for services rendered in Employment and shall only be redetermined if a decrease in the Social Security primary insurance amount shall result in a corresponding decrease in the amount of the reduction determined herein.
Each Participant in active Employment and each Participant who
retired after January 1, 1994, may irrevocably elect to eliminate
the benefit amount reduction of 40% of the primary insurance amount
of Social Security paid or payable to the Participant. Such election
by each Participant in active employment can be made effective as
of January 1, 2001, or as of the date of hire for each Employee hired
after January 1, 2001, provided that the Employee shall irrevocably
elect to eliminate such benefit reduction, shall agree to pay contributions
to the Plan in an amount equal to 0.5% of the Participant's Compensation.
Such an election shall be made in writing on a form and in the manner
prescribed by the Plan Administrator. All contributions due after
the date of election shall be paid by payroll deduction and the Participant
must complete any forms required by the Plan Administrator to authorize
such payroll deduction.
(c)
Late retirement. A Participant may continue in Employment beyond the attainment of Normal Retirement Age subject to the Employer's rules and regulations regarding retirement age. If a Participant who has met the requirements of Subsection (a) of Section 167.04 continues in Employment beyond the Participant's Normal Retirement Date, there shall be no retirement benefits paid until Employment has ceased and the Participant's retirement actually commences. The retirement benefit of a Participant described in this Subsection (c) of Section 167.04 shall be calculated in accordance with Subsection (b) of Section 167.04 on the basis of Average Compensation as of the Participant's actual retirement and shall commence on the Participant's Late Retirement Date.
(d)
Application for benefit. A Participant must complete and execute
an application for benefit on a form and in the manner prescribed
by the Plan Administrator and deliver the said application to the
Plan Administrator at least 30 days prior to the date on which benefit
payments are to commence. Notwithstanding anything contained herein
to the contrary, no retirement benefit payments or any other benefit
payments shall be due or payable on or before the first day of the
month coincident with or next following the date that is 30 days after
the date the Plan Administrator receives the application for benefit.
(e)
Limitation of liability. Nothing contained herein shall obligate
the Employer, the Plan Administrator, any fiduciary or any agent or
representative of any of the foregoing, to provide any retirement
or other benefit to any Participant or Beneficiary which cannot be
provided from the assets available in the Pension Fund, whether such
benefits are in pay status or otherwise payable under the terms of
the Plan. The Council retains the right to amend or terminate this
Plan consistent with applicable law at any time, with or without cause
and whether or not such action directly or indirectly results in the
suspension, reduction or termination of any benefit payable under
the Plan or in pay status, and without liability to any person for
any such action.
(f)
Special provision for restated plans. The benefit amount of any Participant
who may have retired prior to the Restatement Date shall not be in
any way altered by the provisions of this Plan, except where otherwise
expressly indicated herein, and shall continue to be determined on
the basis of the terms of the Plan in effect on the day preceding
the Restatement Date.
Pursuant to the provisions of applicable law, each Participant
under the Plan as of the Restatement Date may be entitled to all of
the benefits, rights or features of the Plan as in effect prior to
the Restatement Date. Such Participants shall therefore be entitled,
to the extent required under applicable law, to the greater of the
benefits, rights and features determined in total under this amended
and restated Plan or the sum of the benefits, rights and features
determined in total and accrued as of the Restatement Date plus the
benefits, rights and features determined in total and accrued after
the Restatement Date. As of the Restatement Date, there shall be no
further accruals of the benefits, rights and features determined in
total pursuant to the terms of the Plan prior to the Restatement Date.
For example, a Participant in the Plan as of December 31, 1993
will have accrued a benefit based upon all of the terms of the Plan
in effect as of that date, such as accrual of a retirement benefit
based upon the then applicable Plan formula payable after retirement
after attainment of age 65. If the Participant continues to participate
in the Plan after December 31, 1993, then the accrual of benefits
commencing on January 1, 1994, shall be based on the terms of this
amended and restated Plan. At retirement, such Participant shall be
eligible for a benefit which is greater of (1) the sum of the benefit
accrued before January 1, 1994, and the benefit accrued on and after
January 1, 1994, or (2) the benefit determined under the terms of
this restated Plan for all service as an Employee of the Employer.
(g)
Maximum benefit limitations.
(1)
Maximum annual benefit.
A.
General rule. Except as otherwise provided, this Plan shall
at all times comply with the provisions of Code Section 415 of 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.
B.
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. Rule 2001-62 became effective as of December 31, 2002.
C.
No reduction in accrued benefits. Notwithstanding the above,
no change in the limits under this article shall reduce the benefit
of any Participant.
D.
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) or
(e), and if the aggregated benefits would otherwise exceed the limit
under Code Section 415(b) or (e), then benefits shall be reduced first
under this Plan. [Historical Note: Code Section 415(e) applied for
Limitation Years beginning prior to 2000.]
E.
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) or (e). This subsection does not apply to contributions "picked-up"
in accordance with Code Section 414(h).
F.
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.
(2)
Limit on annual additions.
A.
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. § 1.415-6(b)(6)(ii).
B.
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.
C.
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.
(h)
Cost of living adjustment. Each retired Participant who shall be
receiving payment of a retirement benefit under the Plan and who shall
have been receiving payment of the said retirement benefit for a period
of at least five years as of January 1, 2000, shall be eligible for
a single cost of living adjustment to the benefit amount that was
being paid monthly. For each Participant that is retired for at least
five years but less than 10 years the adjustment shall be an amount
paid monthly equal to 5% of the monthly benefit payment. For each
Participant that is retired for at least 10 years but less than 15
years the adjustment shall be an amount paid monthly equal to 10%
of the monthly benefit payment. For each Participant that is retired
for at least 15 years but less than 20 years the adjustment shall
be an amount paid monthly equal to 15% of the monthly benefit payment.
For each Participant that is retired for at least 20 years the adjustment
shall be an amount paid monthly equal to 20% of the monthly benefit
payment.
Each Participant eligible to receive a cost of living adjustment
hereunder shall receive the adjustment commencing as of July 1, 2000,
and continuing for so long as payment of a retirement benefit shall
continue unless otherwise waived by the Participant in a writing acceptable
to the Plan Administrator. If any Participant shall waive the receipt
of the cost of living adjustment, they can commence receipt of the
adjustment as of the first day of the month following the date that
the Plan Administrator receives the request to receive the adjustment
in a writing acceptable to the Plan Administrator.
(i)
Early retirement benefit. Each Participant who attains (50 years
of age and completes at least 12 years of Credited Service can elect
to receive an Early Retirement Benefit provided that the Participant
actually retires from active Employment and makes an election to receive
such Early Retirement Benefit on a form and in a manner acceptable
to the Plan Administrator. The amount of an Early Retirement Benefit
shall be equal to the monthly amount of the Participant's Accrued
Benefit determined as of the date of retirement from active Employment
and reduced for early commencement based upon the following factors
(where the Participant's early commencement occurs at other than
full year periods, the adjustment factor below will be prorated to
account for partial years):
|
Months Early
|
Age
|
Factor
|
|---|---|---|
|
0
|
60
|
1.00000
|
|
12
|
59
|
0.90439
|
|
24
|
58
|
0.81026
|
|
36
|
57
|
0.74327
|
|
48
|
56
|
0.67529
|
|
60
|
55
|
0.61434
|
|
72
|
54
|
0.55957
|
|
84
|
53
|
0.51027
|
|
96
|
52
|
0.46580
|
|
108
|
51
|
0.42563
|
|
120
|
50
|
0.38928
|
|
One-Time Only Retirement Incentive Window. The City Employees'
Pension Plan (the "Plan") allows for early retirement for those who
attain age 50 and complete at least 12 years of Credited Service.
| ||
|
The Early Retirement Benefit is the Accrued Benefit reduced
for early commencement based upon factors set forth in Plan Section
167.04(i).
| ||
|
As part of a one-time only retirement incentive, pursuant to
a cost study prepared by the Plan actuary, those electing employees
who are eligible for early retirement and who retire during December,
2003 or during 2004, who are eligible for the early retirement benefit
no later than January 1, 2004, may retire pursuant to the window terms
and receive their Accrued Benefit payable immediately with no actuarial
reduction for early commencement.
| ||
|
Section 167.04(i), Early retirement benefit, of Article 167,
City Employees' Pension Plan, is hereby amended as of the date
of adoption of this Ordinance with a one-time only retirement incentive
window.
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|
ADDENDUM ONE
| ||
|
1.
|
Window Participant. Plan Participants who are employed as of
the date of adoption of this Addendum One who fulfill the Window conditions
of reaching age 50 with 12 years of Credited Service (on or before
January 1, 2004) and who have not reached Normal Retirement Age and
who execute an unconditional and irrevocable election prior to December
31, 2004 ("Window Election") and who execute a Release and Waiver
drafted by the Plan Administrator, shall be eligible for the Window
Benefit as well as the Window Supplement.
| |
|
2.
|
A.
|
Window Benefit. A Window Participant shall be eligible for the
Window Benefit, which shall be an Early Retirement Benefit under Plan
Section 167.04(i), which is the Accrued Benefit, but as an enhancement
under this Addendum One this benefit shall not be actuarially reduced
for early commencement. In addition, the surviving spouse of a Window
Participant who shall die after his Window Retirement Date shall receive
50% of the Window Benefit until the earlier of his or her death or
remarriage, at which time the benefit shall stop. The Window Benefit
shall be in lieu of any other benefit under the Plan.
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B.
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Window Supplement. A Window Participant shall also be eligible
for the Window Supplement, which shall be a monthly payment from the
Plan of $300 (but not to exceed the Social Security old age benefits
entitlement of the Participant) until the earlier of the Participant's
death or a Participant's eligibility for Social Security normal
retirement age old age benefits.
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C.
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Window Retirement Date. A Window Participant shall select a
Window Retirement Date, which shall not be more than three months
from the date of the Window Election. This date shall represent the
Window Retirement Date and Window Benefit payments shall begin the
first of the month following the Window Retirement Date.
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This window program shall be subject to and reformed to the
extent necessary to comply with all laws including the Internal Revenue
Code and related regulations (as they apply to governmental plans)
as well as any other applicable federal law or state law requirements.
Once the Window Participant has satisfied all the window conditions,
he shall no longer be eligible for any other benefit under the Plan,
but rather he and his surviving spouse shall receive the Window Benefit
and Window Supplement. Neither his family, his children nor surviving
spouse, shall receive any other benefit under the plan or the window.
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[Ord. 7226, adopted 9-14-1995]
(a)
Disability retirement. A Participant who has completed at least 10
Years of Credited Service and who incurs a Total and Permanent Disability
before attaining Normal Retirement Age shall be entitled to a Disability
Retirement Benefit as of the Disability Retirement Date.
(b)
Disability retirement benefit. A Participant who shall be entitled to a Disability Retirement Benefit under Subsection (a) of Section 167.05 shall receive a benefit commencing on the Participant's Disability Retirement Date and paid monthly. The amount of the Disability Retirement Benefit shall be equal to 50% of the Participant's Average Compensation.
(c)
Payment of disability benefit. Payment of a Disability Retirement Benefit shall be made monthly commencing on the Participant's Disability Retirement Date and ending on the earlier of the date of death of the Participant, the date that the Participant's Total and Permanent Disability shall cease, or the date that the Participant would attain Normal Retirement Age if the Participant had continued to accrue Years of Credited Service to such date (such a Participant shall thereafter receive a retirement benefit equal to the amount of the Disability Retirement Benefit which will be deemed to be the Normal Retirement Benefit and which will be reduced by the amount of Social Security benefit payable to the Participant as described in Subsection (b) of Section 167.04 hereof). If the Participant's Total and Permanent Disability shall cease prior to the attainment of the Participant's Normal Retirement Age, the Participant shall be deemed to have terminated Employment as of the Disability Retirement Date for purposes of this Plan unless the Participant shall resume active Employment within three months following the date on which such Total and Permanent Disability ceased. A Participant who fails to resume active Employment after Total and Permanent Disability ceases shall not be entitled to a distribution of Accumulated Contributions pursuant to Subsection (b) of Section 167.08 to the extent that the total amount of Disability Retirement Benefits paid exceeds the value of the Participant's Accumulated Contributions as of the Disability Retirement Date, and shall not be entitled to any other benefits under the Plan as a result of the accumulation of any Years of Credited Service as of the Disability Retirement Date.
(d)
Verification of disability. The Plan Administrator shall determine
whether a Participant shall have incurred a Total and Permanent Disability.
Proof of Total and Permanent Disability shall consist of the sworn
statement of three practicing physicians, designated by the Plan Administrator,
that the Participant has incurred a Total and Permanent Disability.
If the Plan Administrator shall determine that a Participant who is
Totally and Permanently Disabled has recovered sufficiently to resume
active Employment or if a Participant refuses to undergo a medical
examination as directed by the Plan Administrator (such a medical
examination may not be required more frequently than once in any given
twelve-month period), the payment of Disability Retirement Benefits
shall cease.
(e)
Cessation of disability. A Participant who is receiving payment of
Disability Retirement Benefits under this Plan must notify the Plan
Administrator of any change in condition which may cause the Participant's
entitlement to receipt of such benefits to cease. If a Participant
fails to provide immediate Notice to the Plan Administrator of any
such change in status and thereby continues to receive payment of
benefits hereunder to which the Participant is not entitled, the Plan
Administrator may take whatever action is necessary and permitted
under applicable law to recover any amount of improper payments, including
offsetting such amounts against any future payment of retirement or
other benefits under the Plan or legal action. The Plan Administrator
may also recover the costs of any such action.
[Ord. 7631, adopted 8-21-2003]
(a)
Death of participant. Upon the occurrence of the Death of a Participant,
there shall be benefits payable in accord with the following subsections
of this Section 167.06.
(b)
Surviving spouse benefit. Each Participant who shall irrevocably
elect prior to commencement of the payment of retirement benefits
under the Plan to receive a surviving spouse benefit hereunder, and
who dies after making such valid election and before commencement
of the payment of any retirement benefit hereunder, shall be eligible
for payment of a surviving spouse benefit under the terms of the Plan.
The surviving spouse benefit shall be payable to the surviving spouse
of the Participant provided that the Participant shall die after becoming
eligible to receive a retirement benefit under the Plan (whether Normal
Retirement Benefit, Late Retirement Benefit, Early Retirement Benefit,
Deferred Retirement Benefit or Disability Benefit), or shall die as
a direct result of an in the line of duty of Employment. The surviving
spouse benefit shall be a monthly amount equal to 50% of the monthly
amount of the Participant's Accrued Benefit determined as of
the date of death of the Participant and shall commence as of the
first day of the month coincident with or immediately following the
date of death (except with respect to the Deferred Retirement Benefit
which shall be payable no earlier than what would have been the Participant's
Normal Retirement Age had he survived until such date). Such a surviving
spouse benefit shall be paid until the death or remarriage of the
surviving spouse shall occur.
The Participant must make an election to receive the surviving
spouse benefit in writing on a form and in a manner acceptable to
the Plan Administrator. Such a election, once made, shall be irrevocable.
The Participant who shall so elect must pay contributions to the Plan
in an amount equal to 1% of the Participant's Compensation commencing
as of the later of the date of hire for the Participant or January
1, 2001. All contributions due after the date of election shall be
paid by payroll deduction and the Participant must complete any forms
required by the Plan Administrator to authorize such payroll deduction.
(c)
Death prior to retirement. If a Participant shall die prior to the
commencement of the payment of any retirement or other benefits under
the Plan and without eligibility for payment of a Surviving Spouse
Benefit, the Beneficiary shall be to receive a distribution of the
Participant's Accumulated Contributions determined as of the
date of death of the Participant.
(d)
Death after retirement. If a Participant shall die after the payment
of any retirement or other benefits under this Plan have commenced,
and without eligibility for payment of a Surviving Spouse Benefit,
and the total amount of benefits paid to the Participant does not
at least equal or exceed the Participant's Accumulated Contribution
as of the date of death, there shall be paid to the Beneficiary an
amount equal to the difference between the amount of benefits paid
and the amount of the Participant's Accumulated Contributions.
If the benefits paid exceed the amount of the Participant's Accumulated
Contributions, there shall be no additional amount due or payable
hereunder.
[Ord. 7226, adopted 9-14-1995; Ord. 7546, adopted 2-28-2002; Ord. 7742, adopted 10-27-2005; Ord. 7880, adopted 10-23-2008; Ord. 7975, adopted 11-16-2011]
(a)
Normal form. The Normal Form for payment of retirement benefits shall
be an annuity for the life of the Participant paid in equal semi-monthly
installments.
(b)
Commencement of benefits. A Participant may make an Election to commence receiving distribution of retirement benefits as of the Participant's Normal Retirement Date or Late Retirement Date, whichever is applicable, or may defer such payments to a date not later than the required date for commencement of benefits determined under Subsection (c) of Section 167.07.
(c)
Minimum required distributions.
(1)
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 of and shall otherwise
comply with Code Section 401(a)(9). For purposes of complying with
Code Section 401(a)(9), life expectancies shall be determined in accordance
with the 1987 proposed regulations prior to January 1, 2003 and with
the final regulations (§ 1.401(a)(9)-1 through § 1.401(a)(9)-9)
on or after January 1, 2003.
(2)
Effective as of January 1, 1997 distribution of a Participant's
benefits shall begin not later than April 1st of the calendar year
following the later of:
(3)
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.
(4)
This section does not authorize the payment of any benefit in
any form not permitted under another provision of the Plan.
(d)
Small amounts. If the Plan Administrator determines that the value
of a Participant's Accrued Benefit is so small as to make pension
payments in the Normal Form administratively impractical, the Plan
Administrator may cause such payments to be made at such other periodic
intervals as are administratively practical, but no less frequently
than annually, or may make a single lump sum payment equal to the
commuted value of such Accrued Benefit to the extent permitted under
applicable law.
(e)
Nonduplication of benefit. To avoid any duplication of benefits,
a Participant who is receiving a retirement benefit under this Plan
and who shall resume Employment shall have benefit payments suspended
until the first day of the month coincident with or next following
the date such Employment shall cease. Upon resumption of benefit payments,
such Participant shall receive the greater of the amount of the suspended
benefit or the amount of benefit based upon Average Compensation and
Years of Credited Service as of the date that such period of resumed
Employment shall cease.
(f)
Personal right of participant. The right to receive any benefits
under this Plan is a personal right of the Participant and shall expire
upon the death of the Participant. No heir, legatee, devisee, Beneficiary,
assignee or other person claiming by or through a Participant shall
have any interest in any benefits hereunder unless clearly and expressly
so provided by the terms of this Plan. A Participant's Election,
failure to make an Election or revocation of an Election hereunder
shall be final and binding on all persons.
(g)
Direct rollovers.
(1)
Effective as of January 1, 1993, if a Participant, a spousal
beneficiary, or an alternate payee (who is a spouse or former spouse
of a Participant) is entitled (under other provisions of this Plan)
to receive an "eligible rollover distribution" of at least $200, the
distributee may elect that the Plan Administrator transfer all or
part (provided that the part is at least $500) to any "eligible retirement
plan" capable of accepting such a transfer.
(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: (a) 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; (b) any distribution
to the extent such distribution is required under Code Section 401(a)(9);
(c) 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 (d) effective
as of January 1, 2002, any hardship distribution. 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)
or effective January 1, 2007, a 403(b) annuity contract 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 a surviving
spouse, prior to January 1, 2002, an eligible retirement plan was
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. Effective
January 1, 2008, an eligible retirement plan shall include a Roth
IRA as that term is defined in Code Section 408A(b) that agrees to
separately account for amounts transferred 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.
Effective as of January 1, 2002, an Employee may, in accordance
with Code Section 457(e)(17), make a trustee-to-trustee transfer from
an eligible deferred compensation plan (as defined in Code Section
457(b)) to this Plan for the purpose of purchasing service credit
(to the extent that such purchases are permitted under the terms of
the Plan) or repaying a cash-out of contributions refunded under the
Plan.
(3)
Non-spouse 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:
(h)
Qualified domestic relations order distribution. All rights and benefits,
including elections, provided to a Participant in this Plan shall
be subject to the rights afforded to any "alternate payee" pursuant
to a domestic relations order as provided by applicable state law.
In evaluating any such domestic relations order, the Plan may use
as a guide Code Section 414(p).
(i)
Credit for qualified military service.
(1)
Effective as of December 12, 1994, notwithstanding any provisions
of this Plan to the contrary, contributions, benefits and service
credit with respect to qualified military service will be provided
in accordance with Code Section 414(u).
(j)
Consent for lump-sum distribution. 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.
(k)
Miscellaneous Pension Protection Act of 2006 (PPA) and Heroes Earnings
Assistance Relief Tax Act (HEART Act) provisions. The following provisions
are added to the Plan. Any prior provisions that are inconsistent
with the provisions in this Subsection are hereby superseded.
(1)
The purpose of these plan amendments are to comply with the
Pension Protection Act of 2006 (PPA) and the Heroes Earnings Assistance
Relief Tax Act (HEART Act). Notwithstanding anything in this Plan
to the contrary, this Plan shall be interpreted so as to comply with
the applicable required provisions of the PPA and the HEART Act.
(2)
For the purposes of Code Section 415(b)(1)(A), effective as
of January 1, 2008, the "applicable mortality table" and "applicable
interest rate" are found in Rev. Rul. 2007-67. The "applicable mortality
table" in Rev. Rul. 2001-62 was effective from December 31, 2002 through
December 31, 2007.
(3)
415(c) Compensation. For the purposes of this section, "compensation"
includes only those items specified in Treas. Reg. § 1.415(c)-2(b)1
or (2) and excludes all items listed in Treas. Reg. § 1.415(c)-2(c),
the terms of which are specifically incorporated herein by reference.
Effective as of January 1, 2009, to the extent required by the Heroes
Earnings Assistance Relief Tax Act of 2008 (HEART Act), differential
wage payments shall be included in Compensation.
(4)
Effective as of January 1, 2007, an "eligible rollover distribution"
shall include an eligible rollover distribution containing after tax
contributions that is transferred to a direct trustee-to-trustee transfer
to a 403(b) annuity contract or a qualified trust under Code Section
401(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.
(5)
Effective as of January 2, 1008, a Roth IRA is an "eligible
retirement plan."
(6)
HEART Act. Effective for participant deaths occurring while
performing qualified military service (as defined in Code Section
414(u)) on or after January 1, 2007, the Plan will provide retirement
benefits and service credit to the extent required by the HEART Act.
[Ord. 7226, adopted 9-14-1995; Ord. 7280, adopted 10-10-1996]
(a)
Rights of terminated employees. A Participant who shall cease to
be an Employee except as otherwise hereinbefore provided shall have
all interest and rights under this Plan limited to those contained
in the following Subsections of this section.
(b)
Distribution of accumulated contributions. A Participant whose Employment
with the Employer shall terminate for any reason other than death
or Total and Permanent Disability prior to attainment of Normal Retirement
Age shall be entitled to receive a distribution of Accumulated Contributions.
Upon receipt of such Accumulated Contributions, said Participant and
Beneficiary shall not be entitled to any further payments from the
Plan.
(c)
Deferred retirement benefit. A Participant who shall have completed
at least 12 years of Credited Service, who shall be in good standing
as an Employee, who shall comply with the notice requirements of this
Subsection 167.08(c) and who shall terminate employment for any reason
other than death or Total and Permanent Disability prior to attainment
of Normal Retirement Age, shall be entitled to elect to receive a
Deferred Retirement Benefit instead of and in lieu of a Distribution
of Accumulated Contributions under Subsection 167.08(b). Such a Participant
shall provide notice to the Employer and the Plan Administrator of
the intention to terminate Employment and receive such a Deferred
Retirement Benefit at least 30 days prior to the date of termination
of Employment. Such Deferred Retirement Benefit shall commence after
the Participant shall apply for the benefit pursuant to Subsection
167.04(d) hereof and after the Participant attains the date which
would have been the Normal Retirement Age if the Participant continued
in Employment until such date. The Deferred Retirement Benefit shall
be in an amount equal to the Participant's Accrued Benefit as
of the date of termination of Employment.
[Ord. 7226, adopted 9-14-1995; Ord. 7555, adopted 3-14-2002; Ord. 7921, passed 5-18-2010]
(a)
Plan administrator. The Pension Plan board shall be the Plan Administrator
and shall have the power and authority to do all acts and to execute,
acknowledge and deliver all instruments necessary to implement and
effectuate the purpose of this Plan. The Plan Administrator may delegate
authority to act on its behalf to any persons it deems appropriate.
If a Plan Administrator is not appointed, the Council shall be the
Plan Administrator.
(b)
Pension Plan Board. The Pension Plan Board shall consist of the Mayor,
City Controller, City Treasurer, Business Administrator/Chief Financial
Officer of the City, and three Participants who shall serve alternating
four year terms to be chosen by the Participants who are contributing
to the Pension Fund. The Mayor may designate an appropriate official
of the City of New Castle to serve instead of the Mayor with all of
the power, rights and responsibilities granted to the Mayor hereunder.
Each member of the Pension Plan Board shall serve in that capacity
until the earliest of death, resignation or removal. Each member,
but not including the members whose term runs coincidently with their
particular term of elected or appointed office for the City of New
Castle, of the Pension Plan Board may resign by giving written notice
to the Council and other members of the Pension Plan Board 30 days
prior to the date of resignation. Any vacancy on the Pension Plan
Board shall be filled in accord with the provisions governing initial
appointment as a member of the Pension Plan Board.
The Pension Plan Board may organize itself in any manner deemed
appropriate to effectuate its purposes hereunder provided that:
(1)
It shall act by a majority of its members at the time in office
either by vote at a meeting or in writing without a meeting,
(2)
It shall appoint a Chairman, a Secretary who may, but need not
be a Pension Plan Board member and such other agents as it may deem
advisable,
(3)
It may authorize any one or more of its members to execute any
document or documents including any application, request, certificate,
notice, consent, waiver or direction and shall notify the Council,
in writing, of each such member so authorized; however, if no such
member is so authorized, the Chairman shall be deemed to be so authorized,
(4)
It shall meet at least one time in each Plan Year, and
(5)
It shall maintain and keep such records as are necessary for
the efficient operation of the Plan and preservation of the Pension
Fund or as may be required by any applicable law, regulation or ruling,
and shall provide for the preparation and filing of such forms, reports
or documents as may be required to be filed with any governmental
agency or department and with the Participants and/or other persons
entitled to benefits under the Plan.
(c)
Authority and duties of the Plan Administrator. The Plan Administrator
shall have full power and authority to do whatever shall, in its judgment,
be reasonably necessary for the proper administration and operation
of the Plan. The interpretation or construction placed upon any term
or provision of the Plan by the Plan Administrator or any action of
the Plan Administrator taken in good faith shall be final and conclusive
upon all parties hereto, whether Employees, Participants or other
persons concerned. By way of specification and not limitation and
except as specifically limited hereafter, the Plan Administrator is
authorized:
(1)
To construe this Plan;
(2)
To determine all questions affecting the eligibility of any
Employee to participate herein;
(3)
To compute the amount and source of any benefit payable hereunder
to any Participant or Beneficiary;
(4)
To authorize any and all disbursements;
(5)
To prescribe any procedure to be followed by any Participant
and/or other person in filing any application or election;
(6)
To prepare and distribute, in such manner as may be required
by law or as the Plan Administrator deems appropriate, information
explaining the Plan;
(7)
To require from the Employer or any Participant such information
as shall be necessary for the proper administration of the Plan; and
(8)
To appoint and retain any individual to assist in the administration
of the Plan, including such legal, clerical, accounting, actuarial
and investment services as may be required by any applicable law or
laws.
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The Plan Administrator in its capacity as Plan Administrator
shall have no power to add to, subtract from or modify the terms of
the Plan or 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 Plan Administrator shall have no power
to adopt, amend, or terminate the Plan, or to determine or require
any contributions to the Plan, said powers being exclusively reserved
to the Council in its capacity as the governing body of the Employer.
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(d)
Plan administration expense. All reasonable expenses incident to
the functioning of the Plan Administrator, including, but not limited
to, fees of accountants, counsel, actuaries and other specialists
and other costs of administering the Plan, may be paid from the Pension
Fund upon approval by the Council to the extent permitted under applicable
law and not otherwise paid by the Employer.
(e)
Hold harmless. No member of the Council nor the Plan Administrator
nor the Actuary 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 Employer shall, and hereby does
agree to, indemnify and hold harmless the Plan Administrator and each
successor and each of any such individual's heirs, executors
and administrators, and the Plan Administrator's delegates and
appointees (other than any person, bank, firm or corporation which
is independent of the Employer and which 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
Plan Administrator or a delegate or appointee of the Plan Administrator
except in matters involving criminal liability, intentional or willful
misconduct. If the Employer purchases insurance to cover claims of
a nature described above, then there shall be no right of indemnification
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.
(f)
Approval of benefits. The Plan Administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
(g)
Appeal procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the Plan ("Claimant"), shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
(1)
Any Claimant shall file a Notice of the claim with the Plan
Administrator which shall fully describe the nature of the claim.
The Plan Administrator shall review the claim and make an initial
determination approving or denying the claim.
(2)
If the claim is denied in whole or in part, the Plan Administrator
shall, within 90 days (or such other period as may be established
by applicable law) from the time the application is received, mail
Notice of such denial to the Claimant. Such ninety-day period may
be extended by the Plan Administrator if special circumstances so
require for up to 90 additional days by the Plan Administrator's
delivering Notice of such extension to the Claimant within the first
ninety-day period. Any Notice hereunder shall be written in a manner
calculated to be understood by the Claimant and, if a Notice of denial,
shall set forth (i) the specific Plan provisions on which the denial
is based, (ii) an explanation of additional material or information,
if any, necessary to perfect such claim and a statement of why such
material or information is necessary, and (iii) an explanation of
the review procedure.
(3)
Upon receipt of Notice denying the claim, the Claimant shall
have the right to request a full and fair review by the Council of
the initial determination. Such request for review must be made by
Notice to the Council within 60 days of receipt of such 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. The Council shall, within 60 days
after receipt of the Notice requesting such review, (or in special
circumstances, such as where the 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 decision shall be final, conclusive and binding on all
parties, shall be written in a manner, calculated to be understood
by the Claimant and shall contain specific references to the pertinent
Plan provisions on which the decision is based.
(4)
Any Notice of a claim questioning the amount of a benefit in
pay status shall be filed within 90 days following the date of the
first payment which would be adjusted if the claim is granted unless
the Plan Administrator allows a later filing for good cause shown.
(5)
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.
[Ord. 7226, adopted 9-14-1995]
(a)
Operation of the Pension Fund. The Council of the City of New Castle
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.
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 the Employer.
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.
The Pension Fund will consist of all funds held by the Employer
under the Plan, including contributions made pursuant to the provisions
hereof and the investments, re-investments 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, the Employer has exclusive authority and discretion to manage
and control the Pension Fund assets. The Employer may, however, appoint
a trustee, custodian and/or investment manager, at its sole discretion.
(b)
Powers and duties of employer. With respect to the Pension Fund,
the Employer 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), without liability for interest thereon.
(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 to 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, the Employer 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 the Employer 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 other pension plans maintained
by the Employer, 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 the Employer, such trustee shall make such distribution
only at the direction of the Employer.
(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 of 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, the Employer
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 the Employer, 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,
the Employer 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 Manager or Managers. If the Employer
appoints a trustee, the trustee shall not be permitted to retain such
an Investment Manager except with the express written consent of the
Employer.
(c)
Common investments. The Employer 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 the Employer 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 the Employer or the
Pension Fund, which may be executed at any time after 30 days written
Notice to the Employer. The Employer shall be under no obligation
to pay such costs and expenses, and, in the event of its failure to
do so, the trustees shall be entitled to pay the same, or to reimburse
themselves 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 the Employer,
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 the Employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the Participants and Beneficiaries and their estates. In making
any such determination, the Employer or 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.
[Ord. 7226, adopted 9-14-1995]
(a)
Amendment of the Plan. The Employer may amend this Plan at any time
or from time to time by an instrument in writing executed in the name
of the Employer under its municipal seal by officers duly authorized
to execute such instrument and delivered to the Council provided however:
(1)
That no amendment shall deprive any Participant or any Beneficiary
of a deceased Participant of any of the benefits to which each is
entitled under this Plan with respect to contributions previously
made;
(2)
That no amendment shall provide for the use of funds or assets
held under this Plan other than for the benefit of Employees and no
funds contributed to this Plan or assets of this Plan shall, except
as provided in Subsection (e) of Section 167.11, ever revert to or
be used or enjoyed by the Employer; and
(3)
That no amendment to the Plan which provides for a benefit modification
shall be made unless the cost estimate described in Subsection (c)
of Section 167.12 has been prepared and presented to the Council in
accordance with the Act.
(b)
Termination of the Plan. The Employer shall have the power to terminate
this Plan in its entirety at any time by an instrument in writing
executed in the name of the Employer.
(c)
Automatic termination of contributions. Subject to the provisions
of the Act governing financially distressed municipalities, the liability
of the Employer to make contributions to the Pension Fund shall automatically
terminate upon liquidation or dissolution of the Employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
(d)
Distribution upon termination. In the event of the termination of
the Plan, all amounts of vested benefits accrued by the affected Participants
as of the date of such termination, to the extent funded on such date,
shall be nonforfeitable hereunder. In the event of termination of
the Plan, the Employer shall direct either (1) that the Plan Administrator
continue to hold the vested Accrued Benefits of Participants in the
Pension Fund in accordance with the provisions of the Plan (other
than those provisions related to forfeitures) without regard to such
termination until all funds have been distributed in accordance with
the provisions; or (2) that the Plan Administrator immediately distribute
to each Participant an amount equal to the vested Accrued Benefit
to the date.
If there are insufficient assets in the Pension Fund to provide
for all vested Accrued Benefits as of the date of Plan termination,
priority shall first be given to the distribution of any amounts attributable
to mandatory or voluntary Employee contributions before assets are
applied to the distribution of any vested benefits attributable to
other sources hereunder.
All other assets attributable to the terminated Plan shall be
distributed and disposed of in accordance with the provisions of applicable
law and the terms of any instrument adopted by the Employer which
effects such termination.
(e)
Residual assets. If all liabilities to vested Participants and any
others entitled to receive a benefit under the terms of the Plan have
been satisfied and there remain any residual assets in the Pension
Fund, such residual assets remaining shall be returned to the Employer
insofar as such return does not contravene any provision of the law,
and any remaining balance, in excess of Employer contributions, shall
be returned to the Commonwealth.
(f)
Exclusive benefit rule. In the event of the discontinuance and termination
of the Plan as provided herein, the Employer shall dispose of the
Pension Fund in accordance with the terms of the Plan and applicable
law; at no time prior to the satisfaction of all liabilities under
the Plan shall any part of the corpus or income of the Pension Fund,
after deducting any administrative or other expenses properly chargeable
to the Pension Fund, be used for or diverted to purposes other than
for the exclusive benefit of the Participants in the Plan, their Beneficiaries
or their estates.
[Ord. 7226, adopted 9-14-1995]
(a)
Actuarial valuations. The Plan's Actuary shall perform an actuarial
valuation at least biennially unless the Employer is applying or has
applied for supplemental state assistance pursuant to Section 603
of the Act, whereupon actuarial valuation reports shall be made annually.
Such 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.
Such actuarial valuation shall be prepared and certified by
an Approved Actuary, as such term is defined in the Act.
The expenses attributable to the preparation of any actuarial
valuation report or experience investigation required by the Act or
any other expense which is permissible under the terms of the Act
and which are directly associated with administering the Plan shall
be an allowable administrative expense payable from the assets of
the Pension Fund. Such allowable expenses shall include, but not be
limited, to the following:
(1)
Investment costs associated with obtaining authorized investments
and investment management fees;
(2)
Accounting expenses;
(3)
Premiums for insurance coverage on fund assets;
(4)
Reasonable and necessary counsel fees incurred for advice or
to defend the fund; and
(5)
Legitimate travel and education expense for pension plan officials;
provided, however, that the municipal officials of the Employer, in
their fiduciary role, shall monitor the services provided to the Plan
to ensure that the expenses are necessary, reasonable and benefit
the pension plan and, further provided, that the Plan Administrator
shall document all such expenses item by item, and where necessary,
hour by hour.
(b)
Duties of chief administrative officer. Such actuarial reports shall
be prepared and filed under the supervision of the Chief Administrative
Officer.
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 Municipal Obligation
of the Employer with respect to funding the Plan for any given Plan
Year. The Chief Administrative Officer shall submit the financial
requirements of the Plan and the Minimum Municipal Obligation of the
Employer to the annually and shall certify the accuracy of such calculations
and their conformance with the Act.
(c)
Benefit modifications. Prior to the adoption of any benefit plan
modification by the Employer, the Chief Administrative Officer of
the Plan shall provide to the Council a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
Actuary, which estimate shall disclose to the Council the impact of
the proposed benefit plan modification on the future financial requirements
of the Plan and the future Minimum Municipal Obligation of the Employer
with respect to the Plan.
[Ord. 7226, adopted 9-14-1995]
(a)
Employment rights. Participation in this Plan shall not give any
right to any Employee to be retained in the employ of the Employer
nor shall it interfere with the right of the Employer to discharge
any Employee and to deal with such Employee without regard to the
effect that such treatment might have upon participation in this Plan.
(b)
Meaning of certain words. As used herein the masculine gender shall
include the feminine gender and the singular shall include the plural
in all cases where such meaning would be appropriate. Headings of
Sections and Subsections are inserted only for convenience of reference
and are not to be considered in the construction of the Plan.
(c)
Information to be furnished by the employer. The Employer shall furnish
to the Plan Administrator (and where applicable, the trustee) information
in the Employer's possession as the Plan Administrator and the
trustee shall require from time to time to perform their duties under
the Plan.
(d)
Severability of provisions. Should any provisions of this Plan be
held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of the Plan, and the Plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted herein.
(e)
Incapacity of participant. If any Participant shall be physical or
mentally incapable of receiving or acknowledging receipt of any payment
of pension benefits hereunder, the Plan Administrator, upon the receipt
of satisfactory evidence that such Participant is so incapacitated
and that another person or institution is maintaining the Participant
and that no guardian or committee has been appointed for the Participant,
may provide for such payment of pension benefits hereunder to such
person or institution so maintaining the Participant, and any such
payments so made shall be deemed for every purpose to have been made
to such Participant.
(f)
Pension Fund for sole benefit of participants. The income and principal
of the Pension Fund are for the sole use and benefit of the Participants
of this Plan, and, to the extent permitted by law, shall be free,
clear and discharged from and are not to be in any way liable for
debts, contracts or agreements, now contracted or which may hereafter
be contracted, and from all claims and liabilities now or hereafter
incurred by any Participant or Beneficiary.
(g)
Benefits for a deceased participant. If any benefit shall be payable
under the Plan to or on behalf of a Participant who has died, if the
Plan provides that the payment of such benefits shall be made to the
Participant's estate, and if no administration of such Participant's
estate is pending in the court of proper jurisdiction, then the Plan
Administrator, at its sole option, may pay such benefits to the surviving
spouse of such deceased Participant, or, if there be no such surviving
spouse, to such Participant's then living issue, per stirpes;
provided, however, that nothing contained herein shall prevent the
Plan Administrator from insisting upon the commencement of estate
administration proceedings and the delivery of any such benefits to
a duly appointed executor or administrator.
(h)
Assets in Pension Fund. Nothing contained herein shall be deemed
to give any Participant or Beneficiary any interest in any specific
property of the Pension Fund or any right except to receive such distributions
as are expressly provided for under the Plan.
(i)
Personal liability. Subject to the provisions of the Act and unless
otherwise specifically required by other applicable laws, no past,
present or future officer or agent of the Employer or Plan Administrator
shall be personally liable to any Participant, Beneficiary or other
person under any provision of the Plan.
[Ord. 7226, adopted 9-14-1995]
The effective date of this Article 167 is January 1, 1994.
[Ord. 8212, adopted 2-9-2017]
(a)
Eligibility for participation in defined contribution (DC) features.
Eligibility for Participation in this Section 167.15 is limited to
eligible Employees hired on or after January 1, 2017, who complete
any forms required by the Plan Administrator ("Defined Contribution
Employee"). The benefits in this Section 167.15 shall be the exclusive
benefits provided to full time non-uniformed Employees hired on or
after January 1, 2017. Notwithstanding anything to the contrary in
this Plan, any Participant eligible for participation in this Section
167.15 shall not be eligible to participate in the Defined Benefit
Features, Sections 167.03 through 167.08 of this Plan for the same
period of service.
(b)
Definitions.
(1)
ACCOUNT BALANCE — The balance of a Participant's
Account held under this Section 167.15. A Participant's Account
Balance shall be composed of all amounts allocated under this Section
167.15 hereof (including the Employer Contribution Participant Account,
the Employee Pre and Post Tax Contribution Participant Accounts) and
all related earnings thereon net of expenses thereon.
(2)
BASE SALARY — The Defined Contribution Employee's
base rate of annual compensation and excludes all other forms of remuneration
including but not limited to overtime, longevity, expense reimbursements,
any allowances and commissions and lump sums.
(3)
ADMINISTRATOR or PLAN ADMINISTRATOR — The individual or
firm appointed by the Employer to administer the Plan. If no Administrator
is appointed, the Administrator shall be the City CFO/Business Administrator.
(4)
DEFINED CONTRIBUTION EMPLOYEES — Any individual who is
a non-uniformed employee hired by the City of New Castle on or after
January 1, 2017 on a regular full-time basis, who is not a police
officer and not a firefighter and who is not eligible to participate
under the provisions of any other pension arrangement sponsored by
the Employer. For the purpose of this Section 167.15, "full-time basis"
shall mean a person who is regularly employed for at least 35 hours
per week. For the purposes of this Section 167.15 part time employees
shall not be considered Defined Contribution Employees. For the purposes
of this Section 167.15 elected officials first elected to office on
or after January 1, 2017 shall be eligible Employees and if they elect
to participate in a City pension arrangement, such electing elected
officials shall be Defined Contribution Employees.
(5)
NORMAL RETIREMENT — Age 65 and 5 Years of Service.
(6)
PLAN YEAR — The calendar year.
(7)
TRUSTEE — The individual or entity selected by the Employer
to hold the assets of this Section 167.15 in trust for the Participants.
Unless and until another appointment is made, the Comprehensive Aggregate
Pension Board shall be Trustee of the assets of the Plan.
(8)
VALUATION DATE — The last day of the calendar year and
any other date selected by the Employer. However, to the extent any
assets are invested with an insurance or other investment company,
Valuation Dates shall be determined in accordance with the investment
contract or arrangement.
(9)
YEAR OF SERVICE — For the purposes of this Section 167.15
"Year of Service" and "Year of Vesting Service" shall refer to any
twelve-month period during (or fraction of year measured to the completed
month) which a Participant is employed in continuous Employment provided
that the Employee has authorized the payment of Employee contributions
to the Plan.
(c)
Contributions:
(1)
Employer. For each calendar year beginning January 1, 2017,
the Employer shall make a contribution to the Plan that will be sufficient
to satisfy the requirements of Subsection 167.15(d)(2).
(2)
Employee. As soon as administratively feasible after adoption
of this Plan amendment, participants shall make a mandatory contribution
of 5% of Base Salary into the Employee Pre-Tax Contribution Participant
Account. Participants may also make voluntary contributions into Employee
Post-Tax Contribution Participant Account up to 10% of Base Salary
or such lesser amount as may be permitted under the Internal Revenue
Code ("Code"). All mandatory employee contributions designated as
such made on or after the first payroll after this Plan is adopted
shall be paid or "picked up" by the Employer in lieu of contributions
by the employees and thereafter treated as employer contributions
for federal income taxation purposes within the meaning of Section
414(h)(2) of the Code. The mandatory contributions may be paid or
picked up by a reduction in the cash salary, by an offset against
future salary increases or a combination of both. Affected employees
shall not have the option of choosing to receive the picked up contributions
directly in lieu of having them paid by the Employer to the Plans.
Notwithstanding the foregoing, contributions so picked up shall continue
to be treated as employee contributions for all purposes of state
and local law in the same manner and to the same extent as employee
contributions made prior to the date of the pickup, including, by
way of illustration and not limitation, being treated as part of the
affected employee's compensation for both Pennsylvania and local
income tax laws and for purposes of computing any benefits under the
affected employee's pension plan.
(d)
Allocation of contributions:
(1)
Separate accounts. The Administrator shall maintain a separate
Participant Account for each Participant setting forth the Participant's
Account Balance. The Administrator shall make the allocations among
such Participant Accounts as set forth in this section.
(2)
Employer Contributions (made under Subsection 167.15(c)(1) above)
shall be allocated as of each allocation date among the Employer Contribution
Participant Accounts of eligible Participants in the amount of 5%
of the Base Salary that was paid to each such Participant since the
previous allocation date. The last day of the Plan Year and any interim
date chosen by the Employer and the Administrator shall be allocation
dates. The amount of the Employer contribution may be amended or stopped
all together.
(e)
Vesting. A Participant who ceases to be an Employee in Employment
for any reason other than death, Total and Permanent Disability, or
Normal Retirement, and who has not completed 12 Years of Vesting Service
shall be 0% vested in his Employer Contribution Participant Account.
A Participant shall be immediately 100% vested in his Employer Contribution
Participant Account upon death, Total and Permanent Disability or
Normal Retirement or completion of 12 Years of Vesting Service.
Any portion of a Participant's Employer Contribution Account
which is not vested upon termination of employment by death, Total
and Permanent Disability, attainment of Normal Retirement Age or completion
of 12 Years of Vesting Service shall be forfeited. Forfeited amounts
shall be held in a suspense account until used to reduce the Employer's
contributions.
If a Participant terminates employment and is later rehired,
his Years of Vesting Service shall begin upon his rehire date.
A Participant shall at all times be 100% vested in his Employee
Contribution Accounts.
(f)
Allocation of gain or loss.
(1)
General pooled assets. As of each Valuation Date, the Administrator
shall determine the fair market value of all assets in the Plan that
are not held in suspense accounts, segregated accounts or insurance
contracts. Any gain or loss on such assets since the previous Valuation
Date shall be allocated among all Participant Accounts (except those
Accounts held in segregated accounts) in proportion to Account Balances
as of the previous Valuation Date pursuant to the policies and procedures
of the Administrator.
(2)
Segregated accounts (including participant-directed investment
accounts). As of each Valuation Date, the Administrator shall determine
the market value of all assets held in each segregated account. A
separate allocation of gain or loss shall be made for each segregated
account. If there is more than one Participant Account within a segregated
account, the gain or loss since the previous Valuation Date for that
segregated account shall be allocated in proportion to the Account
Balances as of the previous Valuation Date.
(3)
Holding account. Contributions made between allocation dates
shall be allocated to a holding account which shall also hold any
related earnings all of which shall be allocated to Participant Accounts
pursuant to the process established by the Administrator and the Employer.
(4)
Investment contracts. Notwithstanding Subsections (1), (2), and (3) immediately above, if any Plan assets are invested through any arrangement with an insurance company or other investment organization, Accounts shall be valued and gains, losses, costs, and expenses shall be allocated (but not less frequently than annually) in accordance with the terms of the applicable investment contract or arrangement.
(g)
Participant-directed investments. Notwithstanding the above provisions
or the other provisions of this section, if the Administrator establishes
such a policy, any Participant, Beneficiary, or alternate payee with
an Account Balance under this article may direct how to invest all,
or a certain portion, of his Participant Account. The Employer or
Administrator shall have sole discretion to determine what investment
options will be made available to the Participants. All contributions,
expenses, income or losses shall be allocated in accordance with the
policies established under this section. To the extent that the Participants
do not exercise their rights under this section, the allocation of
expenses, income or losses may be made pursuant to Section 167.15(f)
above or such other provisions set forth by the Plan Administrator
and the Employer and the investment of their Accounts may be made
pursuant to Section 167.15(f) above or such other provisions set forth
by the Plan Administrator and the Employer. To the extent permitted
by law, the Trustee and Administrator shall be relieved of any fiduciary
responsibility for investment decisions made pursuant to this section,
provided, however, that the Plan Administrator or Trustee have followed
the instructions of the Participant and that said instructions are
in accordance with applicable law. Upon the death or incapacity of
the Participant, the powers granted to the Participant under this
section shall inure to the benefit of the Participant's Beneficiary,
trustee or legal representative.
(h)
Distributions:
(1)
Applicability. This section governs the distribution of vested
Account Balances. Furthermore, distributions are subject to the requirements
of the applicable provisions of the Internal Revenue Code as set forth
in this Plan document.
(2)
General rule. Distribution of a Participant's vested Account
Balance shall be made in a lump sum as soon as it is legally permissible
and administratively feasible to make distribution following a Participant's
termination of employment with the Employer and subject to such limitations
and conditions utilized by the Administrator. A Participant's
Account Balance shall be valued as of the Valuation Date coincident
with or immediately preceding the date of distribution. If the assets
are held in a general pooled account pursuant to Section 167.15(f)
hereof the Participant may elect to have his Account Balance determined
after any gain or loss is allocated among the accounts on the next
Valuation Date. In the event that a Participant does not consent to
accept a distribution pursuant to this provision, his Account Balance
may be rolled over to an Individual Retirement Account.
(3)
Annuity option. Notwithstanding Subsection (2) immediately above, if a Participant has a vested Account Balance in excess of $5,000 and the Participant desires to convert his lump-sum benefit into an annuity, he may do so under the rules and conditions established by the Employer and the Administrator. This annuity shall be purchased from a third-party insurance firm selected by the Employer or the Administrator.
(4)
Death benefit. Each Participant shall complete a beneficiary
designation form designating the person to whom his Account Balance
shall be paid upon his death. If no beneficiary designation form has
been completed, the Participant's Account Balance shall be paid
to his spouse, or if no spouse to his issue to be divided equally
and, if no issue, to his Estate. All payments shall be made in a lump
sum payment.
(5)
Loans and hardship distributions. Loans and hardship distributions
of Plan assets are not permitted.
(i)
Administration.
(1)
Powers of the employer. The Employer shall have the following
powers and duties:
A.
To appoint and remove, with or without cause, the Plan Administrator.
B.
To amend or terminate the Plan;
C.
To appoint a committee to facilitate administration of the Plan
and communications to Participants;
D.
To decide all questions or eligibility (1) for Plan participation,
and (2) upon appeal by an Participant, Employee or Beneficiary, for
the payment of benefits;
E.
To engage professionals with regard to Plan matters and Plan's
operation;
F.
To take all actions and to communicate to the Plan Administrator
in writing all necessary information to carry out the terms of the
Plan and Trust; and
G.
To notify the Plan Administrator in writing of the termination
of the Plan.
(2)
Duties of the plan administrator and employer. The Plan Administrator
shall have the following powers and duties.
A.
To construe and interpret the provisions of the Plan;
B.
To maintain and provide such returns, reports, schedules, descriptions,
and individual Account statements, as are required by law within the
times prescribed by law; and to furnish to the Employer, upon request,
copies of any or all such materials, and further, to make copies of
such instruments, reports, descriptions, and statements as are required
by law available for examination by Participants and such of their
Beneficiaries who are or may be entitled to benefits under the Plan
in such places and in such manner as required by law;
C.
To obtain from the Employer such information as shall be necessary
for the proper administration of the Plan;
D.
To determine the amount, manner, and time of payment of benefits
hereunder;
E.
To appoint and retain such agents, counsel, and accountants
for the purpose of properly administering the Plan;
F.
To distribute assets of the Trust to each Participant and Beneficiary
in accordance with the terms of this Section 14.09;
G.
To pay expenses from the Trust; and
H.
To do such other acts reasonably required to administer the
Plan in accordance with its provisions or as may be provided for or
required by law.
(3)
Protection of the employer. The Employer shall not be liable
for the acts or omissions of the Plan Administrator, but only to the
extent that such acts or omissions do not result from the Employer's
failure to provide accurate or timely information as required or necessary
for proper administration of the Plan.
(4)
Protection of the plan administrator. The Plan Administrator
may rely upon any certificate, notice or direction purporting to have
been signed on behalf of the Employer which the Plan Administrator
believes to have been signed by a duly designated official of the
Employer.
(5)
Resignation or removal of plan administrator. The Plan Administrator
may resign at any time effective upon 60 days' prior written
notice to the Employer. The Plan Administrator may be removed by the
Employer at any time upon 60 days' prior written notice to the
Plan Administrator. Upon the resignation or removal of the Plan Administrator,
the Employer may appoint a successor Plan Administrator; failing such
appointment, the Employer shall assume the powers and duties of Plan
Administrator. Upon the resignation or removal of the Plan Administrator,
any Trust assets invested by or held in the name of the Plan Administrator
shall be transferred to the trustee in cash or property, fair market
value, except that the return of Trust assets invested in a contract
issued by an insurance company shall be governed by the terms of that
contract.
(6)
No termination penalty. The Plan Administrator shall have no
authority or discretion to impose any termination penalty upon its
removal.
(7)
Decisions of the plan administrator and employer. All constructions,
determinations, and interpretations made by the Plan Administrator
pursuant to this section or by the Employer pursuant to this section
shall be final and binding on all persons participating in the Plan,
given deference in all courts of law to the greatest extent allowed
by applicable law, and shall not be overturned or set aside by any
court of law unless found to be arbitrary or capricious, or made in
bad faith.
(j)
Miscellaneous.
(1)
Nonguarantee of employment. Nothing contained in this Plan shall
be construed as a contract of employment between the Employer and
any Employee, or as a right of an Employee to be continued in the
employment of the Employer, as a limitation of the right of the Employer
to discharge any of its Employees, with or without cause.
(2)
Rights to trust assets. No Employee or Beneficiary shall have
any right to, or interest in, any assets of the Trust upon termination
of his/her employment or otherwise, except as provided from time to
time under this Plan, and then only to the extent of the benefits
payable under the Plan to such Employee or Beneficiary out of the
assets of the Trust. All payments of benefits as provided for in this
Plan shall be made solely out of the assets of the Trust and none
of the fiduciaries shall be liable therefor in any manner.
(3)
Nonforfeitability of benefits. Subject only to the specific
provisions of this Plan, nothing shall be deemed to deprive a Participant
of his/her right to the nonforfeitable interest to which he/she becomes
entitled in accordance with the provisions of the Plan.
(4)
Incompetency of payee. In the event any benefit is payable to
a minor or incompetent, to a person otherwise under legal disability,
or to a person who, in the sole judgment of the Employer, is by reason
of advanced age, illness, or other physical or mental incapacity incapable
of handling the disposition of his/her property, the Employer may
apply the whole or any part of such benefit directly to the care,
comfort, maintenance, support, education, or use of such person or
pay or distribute the whole or any part of such benefit to:
A.
The parent of such person;
B.
The guardian, committee, or other legal representative, wherever
appointed, of such person;
C.
The person with whom such person resides;
D.
Any person having the care and control of such person; or
E.
Such person personally.
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The receipt of the person to whom any such payment or distribution
is so made shall be full and complete discharge therefor.
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F.
Inability to Locate Payee: Anything to the contrary herein notwithstanding,
if the Employer is unable, after reasonable effort, to locate any
Participant or Beneficiary to whom an amount is payable hereunder,
such amount shall be forfeited and held in the Trust for application
against the next succeeding Employer Contribution or contributions
required to be made hereunder. Notwithstanding the foregoing, however,
such amount shall be reinstated, by means of an additional Employer
contribution, if and when a claim for the forfeited amount is subsequently
made by the Participant or beneficiary of if the Employer receives
proof of death of such person, satisfactory to the Employer. To the
extent not inconsistent with applicable law, any benefits lost by
reason of escheat under applicable state law shall be considered forfeited
and shall not be reinstated.
G.
Mergers, consolidations, and transfer of assets. The Plan shall
not be merged into or consolidated with any other plan, nor shall
any of its assets or liabilities be transferred into any such other
plan, unless each Participant in the Plan would (if the Plan then
terminated) receive a benefit immediately after the merger, consolidation,
or transfer that is equal to or greater than the benefit he/she would
have been entitled to receive immediately before the merger, consolidation,
or transfer (if the Plan had then terminated).
H.
Employer records. Records of the Employer as to an Employee's
or Participant's Period of Service, termination of service and
the reason therefor, leaves of absence, re-employment, earnings, and
salary will be conclusive on all persons, unless determined to be
incorrect.
I.
Applicable law. The Plan shall be construed under the laws of
the Commonwealth of Pennsylvania, except to the extent superseded
by federal law. The Plan is established with the intent that it meets
the requirements under the Code. The provisions of this Plan shall
be interpreted in conformity with these requirements.
In the event of any conflict between the Plan and a policy or
contract issued hereunder, the Plan provisions shall control; provided,
however, no Plan amendment shall supersede an existing policy or contract
unless such amendment is required to maintain qualification under
Section 401(a) and 414(d) of the Code.
(5)
No duplication of Benefits: Any employee who is or shall become
eligible to participate in the Defined Benefit Features, Sections
167.03 through 167.08 of this Plan shall forfeit his right to and
interest in the Defined Contribution Plan (Section 167.15) for the
same period of service.
(k)
Trust. A Trust is hereby created to hold all the assets under this
Section 167.15 for the exclusive benefit of Participants and Beneficiaries,
except that expenses and taxes may be paid from the Trust including
investment expenses and reasonable compensation of Plan Administrator
and reimbursement of reasonable expenses of Plan Administrator.
The Comprehensive Aggregate Pension Board of the City acting
as Trustee shall have all such powers of a Trustee as are permitted
under the laws of the Commonwealth of Pennsylvania.
(l)
Amendment. The Employer may amend the provisions of this Section
167.15. The power to amend specifically includes the power to increase,
decrease or stop Employer and Employee contributions.
(m)
Document coordination. The Defined Contribution provisions of this
Section 167.15 shall be construed in conformance with the provisions
of Plan document 167.01 (Definitions); Section 167.09 (Administration);
Section 167.10 (The Pension Fund); 167.11 (Amendment and Termination
of Pension Plan or Pension Fund); 167.12 (Provisions to Comply With
the Municipal Pension Plan Funding Standard and Recovery Act of 1984);
167.13 (Miscellaneous); (167.01, 167.09, 167.10, 167.11, 167.12, and
167.13 are the "Coordinated Provisions") and the Internal Revenue
Code provisions of the Plan document, except where Coordinated Provisions
conflict with the Defined Contribution provisions hereof of Section
167.15.
