[Ord. 8018, 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. 7228, adopted 9-14-1995; Ord. 7343, adopted 12-11-1997; Ord. 7548, adopted 2-28-2002; Ord. 7882, adopted 10-23-2008; Ord. 8201, adopted 10-27-2016]
(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
171.04, 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 completed 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. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one.
The Accrued Benefit shall include any Service Increment to which the Participant is entitled but shall not exceed the maximum limitation, determined as of the date of computation, provided under Subsection
(h) of Section
171.04. 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 at the time of termination from Employment,
plus 1/12 of the most recent annual longevity payment made to the
Participant as of the date of determination, 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 rate of remuneration paid to an Employee
by the Employer with respect to personal services rendered as an Employee,
including the Fire Chief's Code Supervision duties, and shall exclude
all other forms of remuneration including, but not limited to, overtime
and expense reimbursements. 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 shall be excluded 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 terminates
Employment due to a Total and Permanent Disability.
(17)
EMPLOYEE — Any person who is employed on a regular full-time
basis as a fireman 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.
(18)
EMPLOYER — The City of New Castle, Pennsylvania, a political
subdivision of the Commonwealth of Pennsylvania.
(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.
(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 the date at which
a Participant attains the age or completes the Years of Credited Service
based upon the date that the Participant's Employment commenced as
follows:
Date of Hire
|
Age
|
Years of Credited Service
|
---|
Before January 1, 1988
|
50
|
20
|
January 1, 1988 to January 1, 1992
|
55
|
20
|
After January 1, 1992
|
55
|
20
|
(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
171.02, 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
171.09.
(29)
PLAN — The City of New Castle Firemen's 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)
SERVICE INCREMENT — The amount determined under Subsection
(d) of Section
171.04 on behalf of a Participant who accumulates Years of Credited Service in excess of the number of Years of Credited Service which are required for attainment of Normal Retirement Age.
(34)
TOTAL AND PERMANENT DISABILITY — A condition of physical
or mental impairment due to which a Participant is unable to perform
any 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.
(35)
YEAR OF CREDITED SERVICE — Any consecutive twelve-month
period during which a Participant is continuously employed in Employment.
Each Year of Credited Service shall be determined from the date on
which participation in the Plan shall commence and annual anniversaries
thereof and/or the date that re-employment of a Participant shall
commence and anniversaries thereof, provided that the Employee has
authorized the payment of Employee contributions to the Plan.
Year of Credited Service shall include any period of voluntary
or involuntary military service with the armed forces of the United
States of America not to exceed a total of five years which occurred
prior to the date on which a Participant first became employed as
an Employee of the Employer, provided that the Participant shall purchase
such service credit with the prior approval of Council (such approval
shall not be unreasonably withheld). A Participant may purchase such
credit provided that such Participant is not entitled to receive,
eligible to receive or is receiving retirement benefits for such military
service under a retirement system administered and wholly or partially
paid for by any other governmental agency except military retirement
pay earned by a combination of active and non-active duty with a reserve
or national guard component of the armed forces which is payable upon
the attainment of a specified age and period of service under 10 U.S.C.
Ch. 67 (relating to retired pay for non-regular service). The purchase
price for such service credit shall be computed by discounting the
Participant's wages for the first year of Employment to the period
of military service on an annual basis (prorated for actual military
service during the applicable year) using a ratio of national average
wages and multiplying by the Plan's 1985 normal cost percentage. Interest
shall be calculated at the rate of 4.75% from the Participant's first
day of Employment to the date of payment. The purchase price hereunder
shall be paid into the Plan within the time period prescribed by Council
after the date that the purchase price has been determined and provided
to the Participant. If a Participant shall not elect to purchase such
service credit or fails to pay such purchase price within the time
limits prescribed herein, the Participant shall have forever waived
any and all right or opportunity to purchase such military service
credit.
Year of Credit Service 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 reemployment.
[Ord. 7228, adopted 9-14-1995]
(a) Eligibility for participation. Each Employee 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.
(b) Participation requirements. Each Participant hereunder shall be required to make contributions to the Plan, as provided in Subsection
(a) of Section
171.03 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
171.08.
(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 the Employer 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. 7809, passed 1-11-2007; Ord. 7228, adopted 9-14-1995]
(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
a rate of 7% of the Participant's Compensation (effective January
1, 2007). Each Participant shall also contribute $12 per year for
the Service Increment which will be deducted on a pro rata basis from
the Participant's Compensation as paid until the Participant attains
age 65 or terminates Employment whichever shall first occur. 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 Sect.
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
171.11.
[Ord. 7228, adopted 9-14-1995; Ord. 7329, adopted 9-25-1997; Ord. 7442, adopted 7-20-2000; Ord. 7651, adopted 1-8-2004; Ord. 7691, adopted 10-14-2004; Ord. 7882, adopted 10-23-2008; Ord. 8018, passed 9-13-2012; Ord. 8238, adopted 8-24-2017]
(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
171.04 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
171.07 hereof. The monthly amount of the Normal Retirement Benefit shall be equal to 50% of the Participant's Average Compensation for those participants who retire before January 1, 1998. The monthly amount of the normal retirement benefit for those who retire on or after January 1, 1998 shall be equal to 75% of the participant's average compensation.
The City wishes to encourage the retirement of those that have
attained Normal Retirement Age by adding a one-time window benefit
as an enhancement to the Normal Retirement Benefit. As part of the
one-time only Normal Retirement Benefit enhancement window, pursuant
to a cost study prepared by the Plan actuary, those electing employees
who are eligible for Normal Retirement Benefit as of January 1, 2004,
and who retire pursuant to the window terms shall be entitled to the
Window Benefit as set forth in Addendum One.
Notwithstanding anything to the contrary in Section
171.04, the monthly amount of the Normal Retirement Benefit for a Participant who is first hired as a full-time firefighter on or after January 1, 2007 and prior to January 1, 2014 shall be as follows: a Participant retiring after attaining age 55 with 20 or more years of service but less than 25 years of service will be entitled to a pension of 55% of Average Compensation; a Participant retiring after attaining age 55 with 25 or more years of service but less than 30 years of service will be entitled to a pension of 65% of the Participant's Average Compensation and a Participant retiring after attaining age 55 with 30 or more years of service will entitled to a pension of 70% of Average Compensation.
Notwithstanding anything to the contrary in Section
171.04, the monthly amount of the Normal Retirement Benefit for a Participant who is hired as or promoted to a full-time firefighter on or after January 1, 2014 shall be as follows: a Participant retiring after attaining age 55 with 20 or more years of service but less than 25 years of service will be entitled to a pension of 50% of Average Compensation; a Participant retiring after attaining age 55 with 25 or more years of service but less than 30 years of service will be entitled to a pension of 56% of the Participant's Average Compensation and a Participant retiring after attaining age 55 with 30 or more years of service will be entitled to a pension of 62% of Average Compensation.
ADDENDUM ONE
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1.
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Window Participant. Plan Participants who are employed as of
January 1, 2004 and who fulfill the Window conditions of Normal Retirement
Age on or before January 1, 2004 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.
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2.
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Window Benefit. A Window Participant shall be eligible for the Window Benefit, which shall be an enhancement of an additional $310 per month added to the Normal Retirement Benefit set forth in Plan Section 171.04(b). The additional $310 per month shall be considered part of the monthly Normal Retirement Benefit or Window Participants selecting this Window Benefit.
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3.
|
Window Retirement Date. A Window Participant shall select a
Window Retirement Date, which shall not be more than 60 days 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.
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(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
171.04 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
171.04 shall be calculated in accordance with Subsection
(b) of Section
171.04 on the basis of Average Compensation as of the Participant's actual retirement and shall commence on the Participant's Late Retirement Date.
(d) Service increment benefit. Notwithstanding anything contained herein to the contrary, a Participant who shall retire after completion of more Years of Credited Service than the number required for attainment of Normal Retirement Age may be entitled to receive a monthly Service Increment Benefit provided, however, that the Participant shall have accrued sufficient service credit pursuant to this Subsection
(d) of Section
171.04. Such Service Increment shall only be available to a Participant who shall retire and be eligible to receive a retirement benefit determined under Subsection
(b) of Section
171.04, and whose Years of Credited Service for purposes of this Subsection
(d) of Section
171.04 shall only include periods of time when the Participant actively renders service in Employment or is on an Authorized Leave of Absence and pays all required contributions to the Plan.
The Service Increment Benefit shall be a monthly amount equal to 1/40 of the benefit determined under Subsection
(b) of Section
171.04 multiplied by the total number of completed Years of Credited Service in excess of the number of Years of Credited Service required to be completed by the Participant for attainment of Normal Retirement Age. Notwithstanding the foregoing, in no event shall the monthly amount of Service Increment Benefit exceed $100. The Service Increment Benefit shall be paid monthly in addition to the benefit determined under Subsection
(b) of Section
171.04 for each month that such benefit under Subsection
(b) of Section
171.04 shall be paid.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
G.
To the extent applicable, the above provisions and limitations
shall be subject to Code Section 415(b)(2)(G).
(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.
(i) Cost of living adjustment. Each retired Participant and surviving
spouse who shall be receiving payment of a retirement or survivor
benefit under the Plan and who shall have been receiving payment of
the said retirement or survivor 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.
Each individual that has been receiving payments for at least five
years but less than 10 years shall receive an adjustment that shall
be an amount paid monthly equal to 5% of the monthly benefit payment.
Each individual that has been receiving payments for at least 10 years
but less than 15 years shall receive an adjustment that shall be an
amount paid monthly equal to 10% of the monthly benefit payment. Each
individual that has been receiving payments for at least 15 years
but less than 20 years shall receive an adjustment that shall be an
amount paid monthly equal to 15% of the monthly benefit payment. Each
individual that has been receiving payments for at least 20 years
shall receive an adjustment that shall be an amount paid monthly equal
to 20% of the monthly benefit payment.
Each Participant and surviving spouse 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
or surviving spouse in a writing acceptable to the Plan Administrator.
If any Participant or surviving spouse 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.
[Ord. 7228, adopted 9-14-1995]
(a) Disability retirement. A Participant who incurs a Total and Permanent
Disability as a result of and in the line of duty of Employment before
attaining Normal Retirement Age, or a Participant who has completed
at least five Years of Credited Service and who incurs a Total and
Permanent Disability not as a result of and in the line of duty of
Employment before attaining Normal Retirement Age shall be entitled
to a Disability Retirement Benefit as of the Disability Retirement
Age.
(b) Disability retirement benefit. A Participant who shall be entitled to a Disability Retirement Benefit under Subsection
(a) of Section
171.05 shall receive a benefit commencing on the Participant's Disability Retirement Date and paid monthly. A Participant who incurs a Total and Permanent Disability as a result of and in the line of duty of Employment shall receive the Disability Retirement Benefit in a monthly amount equal to 50% of the Participant's Average Compensation. Each other Participant eligible to receive a Disability Retirement Benefit shall receive a monthly amount equal to the Participant's Accrued Benefit as of the Disability Retirement Date.
(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). 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
171.08 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. 7633, 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 sections of this Section
171.06.
(b) Survivor benefit. If a Participant here under who is receiving a benefit under Subsections
(b) or
(c) of Section
171.04, Subsection
(c) of Section
171.08, or Subsection
(b) of Section
171.05, or is eligible to receive a benefit under Subsections
(b) or
(c) of Section
171.04 or Subsection
(c) of Section 171.,08 shall die, or if a Participant shall be killed in the line of duty of Employment, and be survived by a spouse or any children under the age of 18, there shall be a Survivor Benefit payable hereunder. The Survivor Benefit shall be paid to the surviving spouse until the date of death of the surviving spouse. Upon the death of the surviving spouse or upon the death of the Participant with no surviving spouse but with any surviving children under age 18, the Survivor Benefit shall be paid in equal shares to the surviving dependent children of the deceased Participant. Dependent children shall include the children of the deceased Participant who have not attained 18 years of age. The shares payable to the surviving dependent children shall be adjusted as each child ceases to be eligible to receive a share of the benefit hereunder.
For those who retire prior to January 1, 1997, the Survivor Benefit payable hereunder shall be in an amount equal to 100% of the amount of benefit paid to the Participant under Subsection
(b) of Section
171.04 or Subsection
(b) of Section
171.05, whichever is applicable, or in the case of a Participant not receiving benefit payments as of the date of death, the amount shall be equal to the Participant's Accrued Benefit as of the date of death. For any Firefighter retiring after January 1, 1998 under Subsections
(b) or
(c) of Section
171.04 or Section
(b) of Section
171.05, the monthly amount of the Survivor Benefit shall be equal to 50% of the Participant's Average Compensation at the time of his/her retirement. For any Firefighter retiring or eligible to retire after January 1, 2002 under Subsection
(c) of Section
171.08, the Survivor Benefit shall be equal to 50% of the Accrued Benefit of the Participant as of the date of death. The Survivor Benefit shall commence as of the first day of the month coincident with or next following the date of death except in the case of the Deferred Vested Benefit which shall be payable no earlier than what would have been the Participant's Normal Retirement Age had he survived until such date.
(c) Death before retirement. If a Participant shall die prior to the commencement of the payment of any retirement or other benefits under this Plan, and without eligibility for payment of a Survivor Benefit under Subsection
(b) of Section
171.06, the Beneficiary shall be entitled to receive a distribution of the Participant's Accumulated Contributions determined as of the date of death of the Participant. If the Participant has received Disability Retirement Benefits hereunder, the amount of distribution of Accumulated Contributions shall be reduced by the amount of Disability Retirement Benefits which have been paid hereunder.
(d) Death after retirement. If a Participant shall die after becoming eligible for payment of a retirement benefit under Subsections
(b) or
(c) of Section
171.04, Subsection
(c) of Section
171.08 or after commencement of a benefit under Subsection
(b) of Section
171.04, Subsection
(c) of Section
171.08, or Subsection
(b) of Section
171.05 and without eligibility for payment of a Survivor Benefit under Subsection
(b) of Section
171.06, and the total amount of benefits paid to the Participant does not at least equal or exceed the Participant's Accumulated Contributions 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 amounts due or payable hereunder.
[Ord. 7228, adopted 9-14-1995; Ord. 7882, adopted 10-23-2008; Ord. 7548, adopted 2-28-2002; Ord. 7744, adopted 10-27-2005; Ord. 7977, 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 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
171.07.
(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:
A.
The calendar year in which the Participant attains age 70 1/2,
or
B.
The calendar year in which the Participant retires.
Distributions must be made over a period not exceeding the life
of the Participant or the joint lives of a Participant and his Beneficiary.
|
(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:
A.
The transfer is made not later than the end of the fourth year
after the year of the Participant's death, and
B.
The account or annuity to which the amount is transferred is
treated as an inherited IRA or individual retirement annuity in accordance
with Code Section 408(d)(3)(C).
(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. 7228, adopted 9-14-1995; Ord. 7471, adopted 1-25-2001]
(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 eight Years of Credited Service and whose Employment shall terminate for any reason other than due to death or Total and Permanent Disability prior to attainment of Normal Retirement Age shall be entitled to elect to receive a deferred retirement benefit in lieu of a distribution of Accumulated Contributions under Subsection
(b) of Section
171.08. Such deferred retirement benefit shall be equal to the Participant's Accrued Benefit as of the date Employment terminates and shall commence after application pursuant to Subsection
(e) of Section
171.04 and not earlier than the date which would be the Participant's Normal Retirement Date under the Plan if the Participant remained in Employment until such date.
[Ord. 7228, adopted 9-14-1995]
(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,
members of Council, City Treasurer, Chief of the Bureau of Fire of
the City of New Castle, and three Participants who will be elected
annually by the Participants who are contributing to the Pension Fund.
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 who shall be the Mayor, 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:
(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.
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.
|
(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. 7228, 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. 7228, 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
171.11, 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
171.12 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. 7228, 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;
(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. 7228, 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. 7228, adopted 9-14-1995]
The effective date of this Article 171 is January 1, 1994.
[6-1-2023 by Ord. No. 8444]
(a) Definitions. Unless otherwise specifically set forth in this §
171.15 the defined terms used herein shall have the meaning assigned to them in the remainder of Article 171.
DROP
The DROP is created as an optional form of benefit under
the existing City of New Castle Firemen's Pension Fund (fund).
The DROP shall be for a maximum three-year term.
DROP ACCOUNT
A separate account created to accumulate the DROP pension
benefit for a DROP participant.
DROP PARTICIPANT
Qualifying fireman who has elected to participate in the
DROP program.
QUALIFYING FIREMAN
Any full-time active participant who has attained age 57
with 25 years of credited service and thus is eligible for normal
retirement.
(b) Eligibility. Qualifying firemen may elect to enter the DROP on the
first day of any month after reaching age 57 and 25 years of credited
service.
(c) Cost study. An actuarial cost study shall be performed semiannually
to confirm cost neutrality and that the implementing ordinance set
rules and requirements to ensure that implementation of this benefit
produces no additional cost to the City.
(d) Written election. A qualifying fireman in the fund electing to participate
in the DROP program must complete and execute a DROP Election Form
which shall evidence the DROP participant's participation in
the DROP program, the DROP participant's election to forego active
membership in the fund and document the DROP participant's rights
and obligations under the DROP. The form must be signed by the DROP
participant and the Chief Administrative Officer of the fund and submitted
to the plan administrator prior to the date on which the DROP participant
elects to enter the DROP (election date). Election date must be after
the later of age 57 and 25 years of credited service. The DROP election
form shall include an irrevocable notice to the employer by the DROP
participant that the DROP participant shall terminate from employment
with the employer effective on a specific date not more than three
years from the effective date of the DROP participant's entry
into the DROP. In addition, all retirement documents required by the
City must be filed and presented to the Board for approval of retirement
and commencement of the monthly pension benefit. Once the retirement
application has been approved by the Board, it shall become irrevocable.
A DROP participant's participation shall become effective the
day following his election date.
(1)
After a DROP participant enters the DROP program, contributions
to the fund by the participant will cease, and the amount of the monthly
benefits will be frozen except for any applicable cost-of-living adjustment
(COLA) increases, if any, awarded to all pension recipients.
(2)
Participants should consult a tax advisor of their choice prior
to considering the DROP program, as there may be serious tax implications
and/or consequences to participating in the DROP.
(e) Limitation on pension accrual. After the effective date of the DROP
election, the DROP participant shall no longer earn or accrue additional
years of service for pension purposes including the calculation of
any service increment. The DROP participant shall also forego any
growth in salary after the election date for the purpose of calculating
retirement benefits under the fund.
(f) Ineligibility for re-enrollment in DROP. Once a DROP participant's
DROP participation terminates, he shall be ineligible to re-enroll
in the DROP even if the former DROP participant is reemployed by the
local government with renewed active membership in the fund.
(g) Benefit calculation. For all fund purposes, service of a DROP participant
shall remain as it existed on the effective date of commencement of
participation in the DROP program. Service thereafter shall not be
recognized or used for the calculation or determination of any benefits
payable by the fund including any service increments that may be available.
The average compensation of the DROP participant for pension calculation
purposes shall remain as it existed on the effective date of commencement
of participation in the DROP program. Earnings or increases in earnings
thereafter shall not be recognized or used for the calculation or
determination of any benefits payable by the fund. The pension benefit
payable to the participant shall increase only as a result of cost-of-living
adjustments (COLAs), if any, effective on or after the date of the
DROP participant's participation in the DROP.
(h) Payments to DROP account. The monthly retirement benefits that would
have been payable had the DROP participant elected to cease employment
and receive a retirement benefit shall, upon the DROP participant
commencing participation in the DROP program, be credited on the first
day of each month into a separate account established by the fund
administrator to track and accumulate the participant's monthly
pension benefits. This account shall be designated the DROP account.
The DROP account shall not contain a guaranteed interest rate but
shall be credited with interest at the actual rate earned by the DROP
account but shall not be less than 0% nor greater than 4.5% and shall
be compounded monthly. The DROP account shall be a segregated account
into which each DROP participant's monthly retirement benefit
shall be deposited. All earnings or losses credited to the DROP account
will be included in the final cash settlement. The DROP account shall
be invested in an insured savings account, money market account or
a mutual fund invested in ultra short-term treasuries as may be selected
by the Comprehensive Board of Trustees. All earnings or losses credited
to the DROP account will be included in the final cash settlement.
(1)
The DROP shall at all times comply with the annual benefit limitations
of IRC § 415 and the regulations thereto.
(i) Early termination. A DROP participant may withdraw from the DROP
program at any time and effectuate a complete separation from service.
No penalty shall be imposed for early termination of DROP participation.
However, the DROP participant shall not be permitted to make any withdrawals
from the DROP account until DROP participation has ended.
(j) Payout. Upon the termination date set forth in the DROP election
form or on such date as the DROP participant withdraws or is terminated
from the DROP program, if earlier, the retirement benefits payable
to the participant shall be paid directly to the participant and shall
no longer be credited to the DROP account. Within a period not to
exceed 45 days following the actual termination of a participant's
employment with the City, the DROP participant or the DROP participant's
designated beneficiary, where applicable, shall elect one of the following
options: 1) the accumulated balance in the DROP account, less any
withholding taxes required to be remitted to the Internal Revenue
Service, shall be paid to the DROP participant or his designated surviving
beneficiary in a single lump-sum payment; or 2) the balance of the
DROP participant's DROP account shall be paid within 45 days
directly to the custodian of an eligible retirement fund as defined
in Section 402 (c)(8)(b) of the Internal Revenue Code of 1986 (IRC)
or in the case of an eligible rollover distribution to the surviving
spouse of a deceased DROP Participant, an eligible retirement Fund
that is an individual retirement account or an individual retirement
annuity as described in IRC § 402(c)(9). If the DROP participant
or designated beneficiary fails to elect a method of payment within
60 days after the DROP participant's termination date, the DROP
participant's DROP account shall be paid in a lump sum as provided
in 2) above. All distributions of the DROP account shall comply with
IRC § 401(a)(9).
(1)
Under this Subsection (j) a distributee may elect to have an
eligible rollover distribution paid directly to an eligible rollover
distribution paid directly to an eligible retirement fund by way of
a direct rollover. For purposes of this section a "distributee" includes
a DROP participant, a DROP participant's designated beneficiary,
or in lieu thereof, a DROP participant's survivor as provided
by Article 171, and a DROP participant's former spouse who is
an alternate payee under a qualified domestic relations order. For
purposes of this section "eligible rollover distribution" has the
meaning given the term by IRC § 402(f)(2)(A) except that
a qualified trust shall be considered an eligible fund only if it
accepts the distributee's eligible rollover distribution and,
in the case of an eligible rollover distribution to a surviving spouse,
an eligible retirement fund is an "individual retirement account"
or an "individual retirement annuity" as those terms are defined in
IRC § 408(a) and (b).
(k) Death. A DROP participant's eligibility to participate in the
DROP terminates upon the death of the DROP participant. If a DROP
participant dies on or after the effective date of participation in
the DROP but before the first monthly retirement benefit due the DROP
participant for that month has been credited to his DROP account,
the fund shall pay the monthly retirement benefit as though the DROP
participant had not elected DROP participation and had died after
the DROP participant's effective date of retirement but before
receipt of the DROP participant's first regular retirement benefit.
If a DROP participant dies while participating in the DROP and after
his monthly retirement benefits have begun to have been credited to
his DROP account, the monthly retirement benefit credited to the DROP
participant's DROP account during the month of the DROP participant's
death shall be the final monthly retirement benefit from the fund
credited to his DROP account.
(1)
Except for those benefits specifically payable as a result of
death incurred in the course of performing a hazardous public duty,
the survivors of the DROP participant who dies shall not be eligible
to receive retirement system death benefits payable in the event of
the death of an active member. The DROP participant's survivor(s)
shall be eligible to receive survivor benefits normally payable in
the event of the death of a retired participant.
(l) Disability. If a DROP participant becomes eligible for a disability
benefit from the fund and terminates employment, the monthly nondisability
retirement benefit of the DROP participant shall terminate.
(m) Eligibility for other benefits. DROP participants shall be eligible
for all non-pension employee benefits provided to active employees
under the collective bargaining agreement in effect at the time of
their enrollment as a DROP participant, except that such eligibility
shall not cause, result in, or be construed to require, any growth
in the salary base used for calculating the retirement benefit for
such DROP participants.
(n) Eligibility for statutory benefits. A DROP participant shall be eligible
for all preretirement benefits for employees otherwise provided by
law including, but not limited to the following:
(1)
The Workers' Compensation Act [the Act of June 2, 1915
(P.L. 736, No. 338)].
(2)
The Enforcement Officer Disability Benefits Law [the Act of
June 28, 1935 (P.L. 477, No. 193)].
(3)
The Unemployment Compensation Law [the Act of December 5, 1936
(2nd Sp. Sess., 1937 P.L. 2897, No. 11)].
(4)
The Emergency and Law Enforcement Personnel Death Benefits Act
[the Act of June 24, 1976 (P.L. 424, No. 101)].
(5)
The Public Safety Officers' Benefit Act of 1976 (Public
Law 94-430, 42 U.S.C. § 90 Stat. 1347).
(o) Designation of beneficiary. A DROP participant may designate a DROP
beneficiary who shall be entitled to apply for and receive the DROP
participant's DROP account in the event of the DROP participant's
death while participating in the DROP. In the event that a DROP participant
does not designate a beneficiary and dies while participating in the
DROP, his DROP account will be paid to his survivor(s) as determined
under Article 171 and if no such survivors exist, then to his estate.
(p) Amendment. Any amendments to the DROP ordinance shall be consistent
with the provisions covering deferred retirement option plans set
forth in any applicable collective bargaining agreement or state or
federal law and shall be binding upon all future participants and
upon all DROP participants who have balances in their DROP accounts.
(q) Taxation, attachment and assignment. Except as provided in this subsection, the right of a DROP participant to any benefit or right accrued or accruing under the provisions of this §
171.15 and moneys in the DROP participant's DROP account are exempt from a state or municipal tax, levy and sale, garnishment, attachment, spouse's election, or any other process whatsoever. Rights and benefits under this §
171.15 shall be subject to forfeiture as provided by the Public Employees Forfeiture Act [the Act of July 8, 1978 (P.L. 752, No. 140)]. Forfeitures under this subsection or under any other provision of law may not be applied to increase the benefits that any DROP participant otherwise would receive under this §
171.15. Rights under this §
171.15 shall be subject to attachment in favor of an alternate payee as set forth in a qualified domestic relations order and state law.
(r) Trust requirement. A DROP participant's DROP account shall be
held in trust for the exclusive benefit of fund participants who are
or were DROP participants and for their beneficiaries.
(s) Severability. The provisions of this §
171.15 shall be severable, and if any of its provisions shall be held to be unconstitutional or illegal, the validity of any of the remaining provisions of this Article 171 shall not be affected thereby. It is hereby expressly declared as the intent of the City that this §
171.15 has been adopted as if such unconstitutional or illegal provision or provisions have not been included herein.
(t) Auditor General findings. If the Auditor General issues a finding
of non-compliance with the provisions of Act 44 of 2009 that govern
this DROP, the City shall be authorized to reform this DROP ordinance
to bring it into compliance with the DROP within 90 days of the date
the Auditor General's finding becomes final.