[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2020-O-2, 9/9/2020; and by Ord. No. 2022-O-1, 3//23/2022]
The following words and phrases as used in this plan shall have
the meaning set forth in this Subpart, unless a different meaning
is otherwise clearly required by the context:
As of any given computation date, a participant's monthly normal retirement benefit determined in accordance with § 1-144, Subsection 2, which amount shall be based upon the participant's final average monthly compensation and credited service determined as of such computation date and which shall represent the monthly benefit which would be payable in the normal form as of the participant's attainment of normal retirement age, provided that the participant shall satisfy all requirements pursuant to the terms of the plan for entitlement to receive such benefit. In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 1-144, Subsection 11. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof.
The total amount contributed by any participant to this fund or its predecessor by way of payroll deduction or otherwise, plus interest credited at the actual interest rate earned by the plan. Interest shall be credited in the form of a compound interest rate from the midpoint of the plan year during which the contributions were paid to the first day of the month preceding the date that a distribution of accumulated contributions under § 1-147, Subsection 7, or § 1-148, Subsection 4, shall be paid or payment of benefits shall commence.
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of reasonable mortality factors and interest rates.
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.
January 1 of a given plan year.
Any leave of absence granted, in writing, by the employer
for reasons, including, but not limited to, military service, accident,
sickness, pregnancy, any long-term or temporary disability, education,
training, jury duty or such other reasons as may necessitate authorized
leave from active employment.
The person validly designated, in writing, by a participant
to receive such benefits as may be due hereunder upon the death of
the participant. A designation shall become effective only upon the
participant's death and shall be valid only if delivered prior
to such participant's death to the plan administrator in such
form as the plan administrator shall specify.
The Board of Supervisors of Newtown Township, Bucks County,
Pennsylvania.
The person designated by the Board, who has the primary responsibility
for the execution of the administrative affairs for the plan.
The Internal Revenue Code of 1986, as amended.
The Commonwealth of Pennsylvania.
The total salary or wages paid to an employee by the employer
for active services rendered in employment. Compensation shall exclude
extra or additional forms of remuneration, including, but not necessarily
limited to, amounts paid as allowance or reimbursement for expenses
or payments made to a welfare or benefit plan on behalf of the employee.
|
Compensation shall be limited on an annual basis for purposes
of this plan to the amount specified in accordance with Code Section
401(a)(17), as adjusted under Code Section 415(d) and applicable to
governmental retirement plans.
|
A participant's total period or periods of employment
accumulated as an employee rounded to the last full month of credited
service shall include each period of active employment and each period
of time during which an employee is on an authorized leave of absence.
Notwithstanding the preceding, should any such participant receive
a distribution of accumulated contributions which are otherwise required
to be maintained in the plan with respect to a period of employment,
such period of employment shall not be included in credited service
thereafter unless, at the commencement of the next period of employment,
the participant repays to the fund the amount of such distribution
with interest. For purposes of this definition, interest shall accrue
as of the date the employee receives a distribution of accumulated
contributions and shall be computed at the same rate and in the same
manner as described in the definition of accumulated contributions.
The date when a participant is determined to be incapacitated
due to total and permanent disability, or the date when the participant's
employment terminates due to such total and permanent disability,
if later.
The date on which an eligible participant attains 55 years
of age and has completed at least 10 years of credited service with
the employer.
The first day of the month coincident with or next following
the date on which a participant who has attained early retirement
age ceases employment and elects to commence receipt of retirement
benefits prior to the participant's normal retirement date.
Any individual employed by the employer on a regular, full-time
basis as a firefighter and who is not eligible to participate under
the provisions of any other pension plan sponsored by the employer.
An individual who is regularly scheduled to work at least 1,400 hours
of service during a twelve-month period shall be considered employed
on a full-time basis. The term employee shall also include any leased
employee deemed to be an employee of the employer as provided in Code
§ 414(n). Notwithstanding anything contained herein to the
contrary, leased employees shall not be eligible to participate in
this plan. Any person whom the Board does not regard as being an employee
shall not be eligible to participate.
Newtown Township, Bucks County, Pennsylvania.
Any period of time during which an employee renders services
for the employer for which the employee is directly or indirectly
compensated or entitled to receive compensation for the performance
of duties as an employee, including any period of authorized leave
of absence. Employment shall exclude any period of time during which
services are performed as an independent contractor paid on a contractual
or fee basis. Employment shall also include any period of qualified
military service as determined under the requirements of Chapter 43
of Title 38, United States Code, provided that the participant returns
to employment following such period of qualified military service,
and the participant makes payment to the plan in an amount equal to
the employee contributions that would otherwise have been paid to
the plan during such period of qualified military service. The amount
of employee 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 employee contributions
calculated must be paid into the plan before the end of the period
that begins on the date of reemployment 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.
The average monthly compensation earned by the participant
during the final 24 consecutive months of active rendering of service
in employment. Final average monthly compensation shall exclude any
single sum or extraordinary payments made to the participant which
are not directly attributable to active employment during the averaging
period, including, but not limited to, payment for accumulated sick
leave, accumulated vacation pay, or payment of a back pay damage award
or settlement.
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The first day of the month coincident with or next following
the date on which a participant shall retire from employment, which
occurs after the participant's normal retirement date.
The minimum obligation of the municipality as determined
by the actuary pursuant to the provisions of the Act.
The date a participant attains 60 years of age, or if earlier,
the date that a participant both attains age 55 and completes 20 years
of credited service with the employer.
The first day of the month coincident with or next following
the attainment of normal retirement age.
A written document prepared in the form specified by the
plan administrator. If such notice or election is to be provided by
the employer or the 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. 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.
An employee who has met the eligibility requirements to participate
in the plan and who has not for any reason ceased to be a participant
hereunder.
The assets of the plan, which shall include all money, property,
investments, policies and contracts standing in the name of the plan
and which shall be accounted for separately from the assets of any
other plans maintained by the employer, whether actually held separately
or commingled with the assets of another plan, and which shall be
administered under the supervision of the employer in accordance with
the terms of the plan and applicable law.
The Newtown Township Firefighters' Pension Plan as herein
set forth and as it may be amended from time to time hereafter.
The person or persons appointed by the Board for the purpose
of supervising and administrating the plan. In the event no person
is so appointed, the plan administrator shall be the Board.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
January 1, 2022, the effective date of this amended and restated
plan.
October 1, 2004, the effective date of this plan as hereby
set forth.
A condition of physical or mental impairment due to which
a participant is unable to perform the services of employment for
which the participant is suited by training, education or experience;
which condition lasts at least six months and is reasonably expected
to last for the lifetime of the participant; and which condition is
a direct result of and occurs in the line of duty of employment. Therefore,
an employee whose physical or mental impairment does not occur in
the line of duty or which is the result of alcoholism, addiction to
narcotics, perpetration of a felonious criminal activity or is willfully
self-inflicted, is not entitled to receive disability benefits under
the plan.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Eligibility Requirements. Each employee who was a participant in
the Newtown Township Nonuniformed Employees' Pension Plan on
the day prior to the spin off date shall be a participant hereunder
on and after the spin off date subject to the terms and conditions
of the plan as set forth herein. Each other person hired prior to
age 21 shall become a participant on the first day of the month coincident
with or next following the date of attainment of age 21 and each person
hire at age 21 or older shall become a participant on the date of
hire, provided that the employee completes all necessary forms required
by the plan administrator. 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. Additionally,
a participant who is hired on or after January 1, 2016, shall be eligible
to participate in the Newtown Township Firefighters' Money Purchase
Pension Plan as set forth in Appendix A[1] hereto and as the same may from time to time hereafter
be amended.
[1]
Editor's Note: Appendix A is included as an attachment to this chapter.
2.
Participation Requirements. The Board shall furnish the plan administrator with written notification of the appointment of any new full-time permanent employee who is eligible for participation hereunder. Each participant hereunder shall be required to make contributions to the plan, as provided in § 1-143, Subsection 1, hereof, and shall execute and complete any enrollment or application forms as required by the plan administrator.
3.
Designation of Beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the plan administrator which designates a beneficiary
at the time participation commences. The participant's election
of any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time provided the participant provides
the written notice of the changed designation to the plan administrator
in the manner prescribed by the plan administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
plan administrator shall be null and void and have no effect under
the terms of this plan.
4.
Reemployment. Each person who shall have previously been an employee in employment and who was a participant in the plan shall be eligible to participate hereunder as of the date of reemployment and shall commence the accrual of additional benefits under the plan, provided that there shall be no duplication of benefits as provided under § 1-145, Subsection 7.
5.
Change in Status. A participant who remains in the service of the
employee 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.
6.
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 earn years of credited service, nor shall any benefits
accrue hereunder. If the employee is not reemployed by the expiration
of the leave of absence, participation in the plan shall cease on
the date on which the leave of absence commenced.
7.
Recordkeeping. 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 initially and subsequently.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Employee Contributions. Each employee shall as a requirement of participation pay regular contributions to the Pension Fund in an amount equal to 4% of their compensation. Each employee shall complete the necessary forms to authorize the payment of employee contributions by way of payroll deduction. The employee contributions required under this § 1-143, Subsection 1, shall be picked up by the employer and shall be treated as employer contributions pursuant to Code Section 414(h)(2).
2.
Employer Contributions. The actuary, in accordance with the Act,
shall 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.
3.
State Aid. General Municipal Pension System state aid, or any other
amount of state aid received by the employer from the commonwealth
in accordance with the Act, 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.
4.
Gifts. To the extent permitted by law, the plan administrator may
accept gifts, outright or in trust, for deposit into the Pension Fund.
The application of such gifts shall be governed by the rules of the
plan.
5.
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 date on which discovery of the mistaken payment of the contribution was made or reasonably should have been made, or the plan is terminated, as provided in § 1-152.
6.
Reduction of Employee Contributions. Notwithstanding the preceding § 1-143, Subsection 1, payments into the Pension Fund by participants may be reduced below the minimum percentages prescribed in § 1-143, Subsection 1, or may be eliminated, and that if such payments are reduced or eliminated, contributions by the employer will not be required to keep the Pension Fund actuarially sound. The employer may, by ordinance or resolution, reduce or eliminate payments into the Pension Fund by participants. The employer may rely on an actuarial study performed by the actuary in determining whether to reduce or eliminate payments into the Pension Fund by participants.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2020-O-2, 9/9/2020; and by 3/23/2022 by Ord. No. 2022-O-1]
2.
Normal Retirement Benefit. Each participant who shall become entitled to a benefit pursuant to § 1-144, Subsection 1 shall receive a benefit commencing on the normal retirement date payable in the normal form in a monthly amount equal to 2% of the participant's Final Average Monthly Compensation multiplied by the years (and fractions thereof) of credited service.
4.
Early Retirement Benefit. Each participant who shall become entitled to a benefit pursuant to § 1-144, Subsection 3, may receive a benefit commencing on the normal retirement date payable in the normal form in a monthly amount equal to the accrued benefit of the participant; or may receive a benefit commencing on an early retirement date payable in the normal form that is a monthly amount that is the actuarial equivalent of the benefit commencing on the normal retirement date.
5.
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 § 1-144, Subsection 1, continues in employment beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and the participant's retirement actually begins. The retirement benefit of a participant who continues employment after attainment of normal retirement age shall be calculated in accordance with § 1-144, Subsection 2, on the basis of the final average monthly compensation and credited service as of such participant's actual retirement.
6.
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.
7.
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 Board 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.
8.
Small Amounts. If the plan administrator determines that the value
of a participant's accrued benefit is so small as to make monthly
pension payments 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.
If the value of the participant's accrued benefit is $1,000 or
less, the plan administrator may make a single lump sum payment equal
to the commuted value of such accrued benefit to the extent permitted
under applicable law (if the value of the accrued benefit is over
$1,000, the participant must consent to the lump sum distribution.
9.
Personal Right of Participant. Each participant's right to receive
any benefits hereunder is personal and expires on such participant's
death. 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 file
an election hereunder or revocation of an election shall be final
and binding on all persons.
10.
Retired Participants. 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.
11.
Maximum Benefit Limitations. Notwithstanding any provision of this plan to the contrary, no benefit provided under this plan attributable to contributions of the employer shall exceed, as an annual amount, the amount specified in Code Section 415(b)(1)(A) as adjusted pursuant to Code Section 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this § 1-144, Subsection 11, shall be governed by the following conditions and definitions:
A.
Benefits paid or payable in a form other than a straight life annuity
(with no ancillary benefits) or where the employee contributes to
the plan or makes rollover contributions shall be adjusted on an actuarially
equivalent basis in accordance with applicable regulations to determine
the limitation contained herein;
B.
In the case of a benefit which commences prior to the attainment of age 62 by the participant, the limitation herein shall be adjusted on an actuarially equivalent basis in accordance with applicable regulations to the amount determined pursuant to this section commencing at age 62; however, in the case of a qualified participant (a participant with respect to whom a period of at least 15 years of service, including applicable military service, as a full-time employee of a police or fire department is taken into account in determining the amount of benefit), the limitation contained in this § 1-144, Subsection 11B, shall not apply;
C.
In the case of a benefit which commences after attainment of age
65 by the participant, the limitation herein shall be adjusted on
an actuarially equivalent basis in accordance with applicable regulations
to the amount determined herein commencing at age 65;
D.
Benefits paid to a participant which total less than $10,000 from
all defined benefit plans maintained by the employer expressed as
an annual benefit shall be deemed not to exceed the limitation of
this section, provided that the employer has not at any time maintained
a defined contribution plan in which the participant has participated;
E.
In the case of a participant with fewer than 10 years of service or participation, the limitation expressed in this § 1-144, Subsection 11, shall be reduced by 1/10 for each year of participation less than 10 with respect to Code Section 415(b)(1)(A) or each year of service less than 10 years in the case of the limitation in Subsection D; but in no event shall this limitation be less than 1/10 of the applicable limit;
F.
The limitations expressed herein shall be based upon plan years for
calculation purposes, shall be applied to all defined benefit plans
maintained by the employer as one defined benefit plan and to all
defined contribution plans maintained by the employer as one defined
contribution plan, and shall be applied and interpreted consistent
with Code Section 415 and regulations thereunder as applicable to
government plans in general and this plan in particular;
G.
In the case of a survivor benefit under § 1-147, Subsection 2, or a disability retirement benefit under § 1-146, Subsection 2, the adjustment under Subsections 11B and E hereof shall not apply and the applicable limitation shall be the limitation contained herein without regard to the age or years of service or participation of the benefit recipient;
H.
For mandatory employee contributions, the rules set forth in Treasury
Regulation 1.415(b)-1(b)(2)(iii) shall apply;
I.
To the extent applicable, the plan will comply with the provisions
of Code Section 415(n) regarding the purchase of permissive service
credits; and
J.
Effective for distributions with annuity starting dates beginning
on or after December 31, 2008, notwithstanding any other plan provisions
to the contrary, the applicable mortality table used solely for purposes
of adjusting any benefit or limitation under 415(b)(2)(B), (C), or
(D) of the Internal Revenue Code as set forth in the applicable maximum
benefit limitations section of the plan is the applicable mortality
table under Code Section 417(e)(3)(B).
12.
Limitations on Contributions.
A.
Annual Additions. Except as otherwise provided, annual additions
[which include employee contributions, unless the contributions are
being picked up pursuant to Code Section 414(h)(2)] 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.
13.
Incorporation of Code Section 415 by Reference. Notwithstanding anything contained in § 1-144, Subsection 11 to the contrary, the limitations, adjustments, and other requirements prescribed in § 1-144, Subsection 11 shall at all times comply with the provisions of Code Section 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference.
14.
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 restated 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.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Normal Form of Benefit Payment. The normal form of payment of retirement benefits shall be a monthly annuity for the life of the participant. If the participant is married on the retirement date and such marriage has been in existence for at least one year as of such date, the normal form of payment shall be the Joint and 50% survivor annuity described in § 1-145, Subsection 2.
2.
Optional Form of Benefit Payment. The automatic form of payment of retirement benefits shall be the normal form under § 1-145, Subsection 1 unless the participant elects to receive payment of benefits in an optional form as provided herein. A participant who retires under § 1-144, Subsection 1, 3 or 5, may elect an optional form of benefit payment by giving written notice to the plan administrator at least 30 days prior to the date that benefit payments are to commence hereunder. The following are the available optional forms of benefit payment under the plan.
A.
The life annuity with period certain form of payment shall provide
for monthly payments to the retired participant for the life of the
participant. If the participant shall die before a total of 120 monthly
payments have been paid then the monthly payments shall continue and
be paid to the beneficiary until a total of 120 monthly payments have
been paid to the participant and beneficiary combined. If the participant
shall die after at least 120 monthly payments have been paid, there
shall be no additional payments made as the result of or on account
of the death of the participant.
B.
The joint and 50% survivor annuity form of payment shall provide
for monthly payments to the retired participant for the life of the
participant. Upon the occurrence of the death of the participant,
monthly payments shall be paid to the beneficiary, if the beneficiary
is then living, in an amount equal to 50% of the amount that was being
paid monthly to the participant, for the life of the beneficiary.
If the beneficiary does not survive the participant, there shall be
no additional payments made as the result of or on account of the
death of the participant.
C.
The lump sum form of payment shall provide for the applicable benefit
to be paid in a single lump sum payment. This form of payment is only
available to participant's that were first hired into employment
before March 9, 1995.
4.
Required Distributions.
A.
Notwithstanding any other provision of this plan, the entire benefit
of any participant who becomes entitled to benefits prior to death
shall be distributed either:
(1)
Not later than the required beginning date; or
(2)
Over a period beginning not later than the required beginning
date and extending over the life of such participant or over the lives
of such participant and a designated beneficiary (or over a period
not extending beyond the life expectancy of such participant, or the
joint life expectancies of such participant and a designated beneficiary).
|
If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of benefits has begun in accordance with Subsection 4A(2) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection 4A(2) as of the date of death.
|
B.
If a participant who is entitled to benefits under this plan dies
before distribution of the benefit has begun, the entire interest
of such employee shall be distributed within five years of the death
of such employee, unless the following sentence is applicable. If
any portion of the employees' interest is payable to (or for
the benefit of) a designated beneficiary, such portion shall be distributed
over the life of such designated beneficiary (or over a period not
extending beyond the life expectancy of such beneficiary), and such
distributions begin not later than one year after the date of the
employee's death or such later date as provided by regulations issued
by the Secretary of the Treasury, then for purposes of the five-year
rule set forth in the preceding sentence, the benefit payable to the
beneficiary shall be treated as distributed on the date on which such
distributions begin. Provided, however, that notwithstanding the preceding
sentence, if the designated beneficiary is the surviving spouse of
the participant, then the date on which the employee would have attained
age 72 and; further, provided, if the surviving spouse dies before
the distributions to such spouse begin, this subsection shall be applied
as if the surviving spouse were the employee.
C.
For purposes of this section, the following definitions and procedures
shall apply:
(1)
"Required
beginning date" shall mean April 1 of the calendar year following
the later of the calendar year in which the employee attains age 72,
or the calendar year in which the employee retires.
(2)
The
phrase "designated beneficiary" shall mean any individual designated
by the employee under this plan according to its rules.
(3)
Any
amount paid to a child shall be treated as if it had been paid to
the surviving spouse if such amount will become payable to the surviving
spouse upon such child's reaching majority (or other designated
event permitted under regulations issued by the Security of the Treasury).
(4)
For
purposes of this section, the life expectancy of an employee and/or
the employee's spouse (other than in the case of a life annuity)
may be redetermined but not more frequently than annually.
D.
General Rules. The requirements of this § 1-145, Subsection 4, will take precedence over any inconsistent provisions of the plan. All distributions required under this § 1-145, Subsection 4, will be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the Treasury regulations thereunder, and the employer's good faith interpretation of such Code and Regulations.
5.
Direct Rollovers.
A.
This section applies to distributions made on or after December 31,
2001. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a distributee's election under this section,
a distributee may elect, at the time and in the manner prescribed
by the plan administrator, to have any portion of an eligible rollover
distribution that is equal to at least $500 paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
B.
This Subsection 5B shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, if a distribution in excess of $1,000 is made and the distributee does not make an election under § 1-145, Subsection 5A and does not elect to receive the distribution directly, the plan administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to § 1-150, Subsection 3I. The plan administrator shall notify the distributee, in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
C.
For purposes of this section, the following definitions shall apply:
(1)
"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: 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 of more; any distribution to
the extent such distribution is required under Code Section 401(a)(9);
and the portion of any distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities). For purposes of
the direct rollover provisions in this section of the plan, a portion
of a distribution shall not fail to be an eligible rollover distribution
merely because the portion consists of after-tax employee contributions
that are not includible in gross income. However, such portion may
be paid only to an individual retirement account or annuity described
in Section 408(a) or (b) of the Code, or to a qualified defined contribution
plan described in Section 401(a) or 403(a) of the Code 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.
(2)
"Eligible
retirement plan" is a qualified trust described in Code Section 401(a),
an individual retirement account described in Code Section 408(a),
an individual retirement annuity described in Code Section 408(b),
an annuity plan described in Code Section 403(a), an annuity contract
described in Code Section 403(b), an eligible deferred compensation
plan under Section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state and which agrees to
separately account for amounts transferred into such plan from this
plan.
(3)
"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), are distributees with regard to the interest of the
spouse or former spouse.
(4)
"Direct
rollover" is a payment by the plan to the eligible retirement plan
specified by the distributee.
(5)
Effective
January 1, 2008, direct rollovers may be made to a Roth IRA described
in Section 408A of the Internal Revenue Code to the extent that the
applicable requirements of Code Section 408A are satisfied with respect
to any direct rollover to such Roth IRA.
D.
This section applies to distributions made on or after January 1,
2010. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a nonspouse beneficiary's election under
this section, a nonspouse beneficiary may elect to have any portion
of a plan distribution (that is payable to such nonspouse beneficiary
due to a participant's death) paid in a direct trustee-to-trustee
transfer to an individual retirement account described in Code Section 408(a)
or to an individual retirement annuity described in Section 408(b)
(other than an endowment contract) that has been established for the
purposes of receiving the distribution on behalf of such nonspouse
beneficiary. For these purposes, a "nonspouse beneficiary" is an individual
who is a designated beneficiary [as defined by Section 401(a)(9)(E)
of the Internal Revenue Code] of a participant and who is not the
surviving spouse of such participant.
6.
Assignment. The pension benefit payments prescribed herein shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant or designated
beneficiary and shall not be subject to assignment or transfer unless
the subject of a domestic relations order, mandated by a court of
competent jurisdiction, that clearly provides for proper distribution
of a portion of the pension benefit payments to an alternate payee
(former spouse of the participant) and does not require any benefit
to be paid in excess of the available earned and accrued under the
plan.
7.
Nonduplication of Benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under the 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 final average monthly
compensation and years of credited service as of the date that such
period of resumed employment shall cease.
8.
Temporary Service Increment Benefit. Effective January 1, 2019, and
notwithstanding anything herein to the contrary, a participant who
was hired on or before December 31, 2015, and who shall retire after
having completed years of credited service in excess of 25 years shall
be eligible to receive a temporary service increment benefit in addition
to the normal, disability or deferred vested retirement benefit. The
amount of the temporary service increment benefit shall be equal to
$100 per month for each year of completed year of credited service
in excess of 25 years, to a maximum of $500 per month after 30 years
of credited service. The temporary service increment benefit shall
be payable for 60 months commencing at the same time as the participant's
monthly normal, disability or deferred vested retirement benefits
are payable to the participant. Participants eligible for the temporary
service increment benefit as described herein who retire on or after
January 1, 2022, the temporary service increment benefit shall be
payable for 84 months. The temporary service increment benefit shall
not be payable during IROP participation.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Disability Retirement. A participant who has completed at least 10
years of credited service and who shall incur total and permanent
disability before attaining normal retirement age shall be entitled
to receive a disability retirement benefit as of the disability date.
2.
Disability Retirement Benefit. A participant who shall be entitled to a disability retirement benefit under § 1-146, Subsection 1 shall receive a monthly benefit in an amount equal to the participant's accrued benefit calculated as of the disability date. The amount of disability retirement benefit shall be reduced by the full amount of any worker's compensation benefits received by the participant due to the same incurred total and permanent disability.
3.
Payment of Disability Benefits.
A.
Disability payments shall be made monthly as of the first day of
the calendar month following the disability date and continuing until
the earliest of the death of the participant, cessation of total and
permanent disability, or attainment of normal retirement age (such
a participant who attains normal retirement age shall thereafter continue
to receive the same amount of monthly benefit which shall be deemed
to be the normal retirement benefit).
B.
A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, shall not be entitled to any distribution of accumulated contributions pursuant to § 1-148, Subsection 4, to the extent that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date, and shall not be entitled to any other benefits under the plan on account of any credited service as of the disability date.
4.
Verification of Disability. Total and permanent disability shall
initially be determined by a licensed physician mutually agreed to
by the participant and the plan administrator. If there is no agreement
to select such a licensed physician, then total and permanent disability
shall be determined by a majority opinion of a group composed of one
physician chosen by the participant, one physician chosen by the plan
administrator and one physician chosen jointly by the participant
and plan administrator. If, after payment of a disability retirement
benefit has commenced, 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 participant shall cease
to be considered totally and permanently disabled.
5.
Cessation of Disability. A participant must notify the plan administrator
of any change which may cause a cessation of entitlement to receipt
of any disability retirement benefit hereunder. If a participant fails
to provide immediate notice to the plan administrator of any such
change in status and receives payment of benefits hereunder to which
the participant is not entitled, then the plan may take whatever action
is necessary to recover any amount of improperly paid amounts, including
legal action or offsetting such amounts against any future payments
of retirement or other benefits under the plan, including the costs
of such actions.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Survivor Benefit. No benefit shall be payable to any survivor or beneficiary upon or by reason of the death of any participant except as provided hereafter in this § 1-147.
2.
Death of Participant Prior to Retirement.
A.
If a participant shall die before retirement and at a time when such
participant would have become a deferred vested participant upon termination
of employment there shall be payable a survivor benefit hereunder.
Such survivor benefit shall be payable to the surviving spouse of
the deceased participant, or if there is no surviving spouse then
such survivor benefit shall be payable to another properly named individual
beneficiary.
B.
If the participant shall die before attainment of early retirement
age, the survivor benefit shall commence as of the first day of the
month coincident with or immediately following the date of death in
an amount equal to the amount that would have been payable to the
survivor annuitant if the participant separated from service on the
date of death, survived to attainment of early retirement age, retired
with an immediate joint and 50% survivor annuity and died on the day
after attainment of early retirement age.
C.
If the participant shall die after attainment of early retirement
age and before retirement, the survivor benefit shall commence as
of the first day of the month coincident with or immediately following
the date of death in an amount equal to the amount that would have
been payable to the survivor annuitant if the participant had retired
with an immediate joint and 50% survivor annuity on the day prior
to the date of death.
3.
Death of Participant After Retirement. If a participant shall die
after payment of a retirement benefit has commenced, the only additional
benefit payable as a result of or on account of the death of the participant
shall be to the extent and in the manner provided under the form of
payment of benefits that is in effect as of the date of death.
4.
Death of Participant Prior to Survivor Benefit Eligibility. If a participant shall die before payment of benefit has commenced and without eligibility for payment of a survivor benefit under § 1-147, Subsection 2, the beneficiary shall be eligible to receive a distribution in an amount equal to the accumulated contributions of the participant 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.
5.
Veterans' Survivor Benefits. Notwithstanding any other provision
of the plan to the contrary, in the case of the death of a participant
who dies on or after January 1, 2007, while performing qualified military
service [as defined in Code Section 414(u)], the survivors of the
participant are entitled to any additional benefits (if any) under
the plan (other than benefit accruals relating to the period of qualified
military service) had the participant resumed and then terminated
employment on account of death.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Rights of Terminated Employees. A participant who shall cease to be an employee except as otherwise hereinbefore provided, shall be limited to those rights under this plan contained in the following sections of this § 1-148.
2.
Deferred Vested Benefit.
A.
A participant who ceases to be an employee in employment for any
reason other than death, retirement or total and permanent disability,
prior to attainment of normal retirement age, and who has completed
at least four years of credited service shall be entitled to receive
a vested retirement benefit equal to the participant's accrued
benefit as of the date employment ceases and multiplied by the applicable
vested percentage from the following schedule based on the participant's
years of credited service:
|
Years of Credited Service
|
Vested Percentage
|
|---|---|
|
Less than 4
|
0%
|
|
4
|
40%
|
|
5
|
45%
|
|
6
|
50%
|
|
7
|
60%
|
|
8
|
70%
|
|
9
|
80%
|
|
10
|
90%
|
|
11 or more
|
100%
|
B.
The participant must apply to commence receipt of such benefit by filing a written notice with the plan administrator at least 30 days before the date for commencement of benefit payments. Such a participant may commence receipt of retirement benefits, after application has been made to the plan administrator, on the first day of the month coincident with or next following the date of attainment of normal retirement age or may in the alternative, receive a benefit commencing on a date that would be an eligible early retirement date pursuant to § 1-144, Subsection 3.
4.
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 early or 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. If a participant elects to receive a distribution of their accumulated contributions, such distribution would be paid in lieu of a deferred retirement benefit under § 1-148, Subsection 2.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
In-Service Retirement Option Program. Notwithstanding any provision of the plan to the contrary, any participant who shall attain eligibility to retire and receive a normal retirement benefit under § 1-144, Subsection 2, effective on or after the spin off date, shall be eligible to elect to participate in the In-Service Retirement Option Program ("IROP") as hereinafter set forth in this § 1-149.
2.
IROP Election. A participant who shall become eligible to participate
in the IROP must make application to the employer, in writing and
on a form or in a manner acceptable to the employer and the plan administrator.
Such written application must include the signature of the electing
participant as witnessed by a notary public of good standing with
the commonwealth, must be a prospective election only, must include
an irrevocable commitment to terminate employment at least one year
after the date the election is made and not more than five years after
such date, must include all required completed retirement application
forms and documents as determined by the plan administrator, and must
include an absolute agreement that there shall be no additional benefit
accrual under the plan either through increases in credited service
or changes in final average monthly compensation on and after the
election date for the IROP.
3.
IROP Participation. A participant who shall make a valid election under § 1-149, Subsection 2, that is accepted by and agreed to by the employer shall become an IROP participant as of the date of election contained in the IROP election or such other date as agreed to by and between the participant and the employer. As of such date all accruals of any kind affecting the retirement benefit under this plan shall cease and the retirement benefit of such electing participant shall be irrevocably determined as of the date of commencement of IROP participation.
4.
IROP Account. The plan shall establish a bookkeeping account in the
name of each IROP participant. The amount of the monthly retirement
benefit that would otherwise have been paid to the participant from
the plan if the participant had retired from employment and commenced
receipt of a monthly retirement benefit as of the IROP election date
shall be credited to the participant's IROP account as of the
date that such monthly benefit would otherwise have been paid to the
participant, for so long as the participant continues in employment
in accord with the IROP election.
5.
Investment of IROP Account. The plan shall offer a selection of investment
options such as mutual funds for use in the investment of IROP account
funds. The Board shall be solely responsible for the selection of
the available investment options that can be offered under the plan.
All IROP accounts under the plan shall be at all times an integral
part of the total Pension Fund and shall not become independent accounts
of any kind. Each IROP participant shall be given the opportunity
to select from among the investment options offered and a pro rata
share of the Pension Fund assets shall be invested in accord with
such selection. The respective gains and losses along with any administrative
expenses shall be allocated to each affected IROP account balance.
The Board shall be fully relieved of any and all liability related
to the investment performance applicable to each IROP account when
the properly given instructions of the participant shall have been
followed regarding the selection of investment options applicable
to such participant's IROP account. Should any IROP participant
fail to select any investment option applicable to the IROP account,
the balance to the credit of such participant shall continue to be
a part of the Pension Fund, shall not be credited with any investment
gains or losses, and shall be charged the pro rata share of any expense
incurred on behalf of the participant.
6.
Termination of Employment. Effective as of the date of termination of employment of an IROP participant, the monthly retirement benefit shall no longer be credited to the participant's IROP account, but rather shall commence being paid to the participant. The participant shall elect one of the options for disposition of the IROP account under § 1-149, Subsection 7, hereof. Disposition of the IROP account shall occur within not more than 30 days after the participant has made an election on a form and in a manner acceptable to the plan administrator.
7.
Disposition of IROP Account Upon Employment Termination.
A.
An IROP participant may select one of the following options for disposition
of the IROP account upon termination of employment.
(1)
A complete single sum distribution of the IROP account balance
as of the date of distribution less any required income tax withholding
amounts.
(2)
A complete rollover of the entire IROP account balance to another
qualified retirement plan (as permitted by law) or to an individual
retirement account ("IRA").
(3)
Purchase of an annuity using the full distributable value of
the IROP account balance as of the date of the purchase.
(4)
Retain the IROP account under the plan for disposition upon
application at a later date using one of the other options.
8.
Disability of IROP Participant. If an IROP participant shall incur a total and permanent disability during the period of employment that is governed by the IROP election, the participant shall be deemed to have finally terminated employment as of the disability date and shall have the benefits hereunder determined in accord with § 1-149, Subsection 6 hereof. There shall be no disability benefit of any other kind payable from or under this plan in these circumstances. If an IROP participant shall incur a temporary disability during the period of employment governed by the IROP election, there shall be no distributions from the IROP until the date upon which the participant is scheduled to terminate employment under the terms of the IROP election at which time the participant shall terminate employment whether such temporary disability may be ongoing or not. During the period of temporary disability there shall be no disability benefits of any kind payable from or under the plan.
9.
Death of IROP Participant. If an IROP participant shall die at a
time when there is a positive balance in that participant's IROP
account, the beneficiary of said deceased participant shall have the
same rights to a distribution of the IROP account as the participant
would have if still living.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Plan Administrator. The Board of the employer may appoint a committee
or an individual to be the plan administrator. The plan administrator
shall have the power and authority to do all acts and to execute,
acknowledge and deliver 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 the Board
does not appoint a plan administrator, the Board shall be the plan
administrator.
2.
Pension Committee. If the Board shall appoint a Pension Committee,
it shall consist of five members, one of whom shall be an employee
covered by the plan and one of whom shall be a participant in the
plan. Each member of the Pension Committee shall serve in that capacity
until the earliest of resignation, death, removal or otherwise. Each
member may resign by delivering written notice to the Board and other
members of the Committee. Vacancies on the Committee shall be filled
in the same manner as the original appointment was made; provided,
however, that the remaining members of the Committee shall have full
power to act pending the filling of such vacancies.
3.
Authority and Duties of the Plan Administrator.
A.
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,
upon the Board's review and approval thereof, be final and conclusive
upon all parties hereto, whether employees, participants or other
persons concerned. By way of specification and not limitation and
except as specifically limited hereafter, the plan administrator is
authorized:
(1)
To construe this plan;
(2)
To determine all questions affecting the eligibility of any
employee to participate herein;
(3)
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary;
(4)
To authorize any and all disbursements;
(5)
To prescribe any procedure to be followed by any participant
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 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;
(8)
To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws; and
B.
The 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, to select or
appoint any trustee or to determine or require any contributions to
the plan, said powers being exclusively reserved to the Board.
4.
Pension Committee Organization. The Committee may organize itself
in any manner deemed appropriate to effectuate its purposes hereunder,
subject to the following:
A.
The Committee shall act by a majority of its members at the time
in office and such action may be taken either by vote at a meeting
or in writing without a meeting.
B.
The Committee may appoint a Chairman, a Secretary who may, but need
not, be a Committee member and such other agents as it may deem advisable.
C.
The Committee may, from time to time, 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 Board, in writing, of the name or names of the member or
members so authorized. In the absence of a designation, the Chairman
shall be deemed to be so authorized. Any trustee or other fiduciary
appointed hereunder shall accept and be fully protected in relying
upon any document executed by the designated member or members (or
the Chairman in the absence of a designation) as representing a valid
action by the Committee until the Committee shall file with such fiduciary
a written revocation of such designation.
D.
The Committee shall meet at least one time in each plan year, and
it shall maintain and keep such records as are necessary for the efficient
operation of the plan 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
or other persons entitled to benefits under the plan.
5.
Plan Administrator Costs. The Committee members shall each serve
without compensation for services unless otherwise agreed by the Board
in writing. All reasonable expenses incident to the functioning of
the Committee, 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 Board
to the extent permitted under applicable law and not otherwise paid
by the employer.
6.
Hold Harmless. No member of the Council nor the plan administrator
nor any other person involved in the administration of the plan (other
than any person, bank, firm or corporation which is independent of
the employer and which renders services to the plan for a fee) 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 each present member of the Committee and each successor
and each of any such member's heirs, executors and administrators,
and the Committee'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 a member, delegate or appointee
of the Committee, 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.
7.
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.
8.
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.
A.
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.
B.
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 90 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.
C.
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Board of the initial
determination. Such request for review must be made by notice to the
Board 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 Board shall, within 60 days after receipt
of the notice requesting such review, (or in special circumstances,
such as where the Board 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.
D.
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.
E.
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.
F.
Nothing contained herein is intended to abridge any right of a claimant to appeal any final decision hereunder to a court of competent jurisdiction under 2 Pa.C.S.A. § 752. No decision hereunder is a final decision from which such an appeal may be taken until the entire appeal procedure of this § 1-150, Subsection 8, of the plan has been exhausted.
[Ord. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Operation of the Pension Fund.
A.
The Board 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 and of this plan and any amendment thereto.
B.
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.
C.
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, reinvestments
and proceeds thereof. The Pension Fund shall be held, managed, and
administered pursuant to the terms of the plan. Except as otherwise
expressly provided in the plan, 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.
2.
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.
A.
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.
B.
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
in accordance with Chapter 73 of the Pennsylvania Probate Estates
and Fiduciaries Investment Code, or as the same may be subsequently
modified or amended.
C.
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.
D.
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.
E.
To exercise all conversion and subscription rights pertaining to
property held in the fund.
F.
To exercise all voting rights with respect to property held in the
fund and in connection therewith to grant proxies, discretionary or
otherwise.
G.
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.
H.
In addition to the foregoing powers, the employer shall also have
all of the powers, rights, and privileges conferred upon trustees
for fiduciaries in accordance with Chapter 73 of the Pennsylvania
Probate Estates and Fiduciaries Investment Code, or as the same may
be subsequently modified or amended, 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.
I.
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.
J.
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.
K.
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.
L.
To compromise, contest, arbitrate, enforce or abandon claims and
demands with respect to the plan.
M.
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.
N.
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.
O.
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.
P.
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.
3.
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.
4.
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
its 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 trustee shall be entitled to pay the same, or to be reimbursed
for the payment thereof, from the Pension Fund.
5.
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.
6.
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. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
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 Board; provided, however:
2.
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 consistent with the provisions
of applicable law.
3.
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.
4.
Distribution Upon Termination.
A.
In the event of the termination of the plan or complete discontinuance
of contributions, all amounts of vested benefits accrued by the affected
participants as of the date of such termination or complete discontinuance
of contributions, to the extent funded on such date, shall be nonforfeitable
hereunder. In the event of termination of the plan, the employer shall
direct either: a) that the plan administrator continue to hold the
funded 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 b) that
the plan administrator immediately distribute to each participant
an amount equal to the funded accrued benefit.
B.
If there are insufficient assets in the Pension Fund to provide for
all vested accrued benefits as of the date of plan termination or
complete discontinuance of contributions, priority shall first be
given to the distribution of any amounts attributable to mandatory
or voluntary participant contributions before assets are applied to
the distribution of any accrued benefits attributable to other sources
hereunder.
C.
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.
5.
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 law, and
any remaining balance, in excess of employer contributions, shall
be returned to the commonwealth.
6.
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. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Actuarial Valuations. The plan's actuary shall perform an actuarial
valuation at least biennially. 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 and 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:
A.
Investment costs associated with obtaining authorized investments
and investment management fees;
B.
Accounting expenses;
C.
Premiums for insurance coverage on fund assets;
D.
Reasonable and necessary counsel fees incurred for advice or to defend
the fund; and
E.
Legitimate travel and education expenses for 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 plan; and further
provided, that the plan administrator shall document all such expenses
item by item, and where necessary, hour by hour.
2.
Reporting Requirements. 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 pension 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 Board annually and shall certify the accuracy of such calculations
and their conformance with the Act.
3.
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 Board a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Board 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. 2016-O-3, 6/22/2016, as amended by Ord. No. 2019-O-1, 3/27/2019; and by Ord.
No. 2022-O-1, 3/23/2022]
1.
Employment Rights. No employee of the employer nor anyone else shall
have any rights whatsoever against the employer or the plan administrator
as a result of this plan except those expressly granted to them hereunder.
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.
2.
Meaning of Certain Words. For purposes of this plan, the masculine
gender shall include the feminine and the singular shall include the
plural, and vice versa, in all cases wherever the person or context
shall plainly so require. Headings of articles and sections are inserted
only for convenience of reference and are not to be considered in
the construction of the plan.
3.
Construction of Document. This plan may be executed or conformed
in any number of counterparts, each of which shall be deemed an original
and shall be construed and enforced according to the laws of the Commonwealth
of Pennsylvania, excepting such commonwealth's choice of law
rules.
4.
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.
5.
Severability of Provisions. Should any provisions of this plan shall
be held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this plan, and the plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted therein.
6.
Incapacity of Participant. If any participant shall be physically
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.
7.
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 shall be personally
liable to any participant, beneficiary or other person under any provision
of the plan.
8.
Assets of the 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.
9.
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
covered hereunder, 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.
10.
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 duty appointed executor or administrator.
