[Ord. 2745 § 1, 1970]
Pursuant to the provisions of the Act of May 23, 1945 (P.L.
903), as amended, (53 P.S. Section 39371 et seq.), and the provisions
of the Optional Third Class City Charter Law (53 P.S. Section 41101
et seq.), there is hereby created an employees pension fund and pension
board.
[Ord. 2745 § 2, 1970]
The pension board shall consist of the city manager, city controller,
finance director and two employees to be chosen by the employees contributing
to the pension fund. It shall be the duty of the board to register
all persons employed by the city and to administer the collection
and distribution of the fund herein provided for, and to make such
reasonable rules in the premises as the board may deem necessary to
carry into effect the provisions of this article. It shall be the
duty of the pension board to receive and retain and when deemed advisable,
to invest the funds in accordance with the provisions of this article
and by such methods as are authorized under and pursuant to the laws
of the commonwealth of Pennsylvania for fiduciaries, and including
mortgages of one or more individuals or corporations, securing bonds
or other obligations; such mortgages shall be a first lien upon improved
real estate within this commonwealth and shall not exceed two-thirds
of the fair value of such real estate. Such mortgage shall be payable
not more than five years after the date thereof, or the date of any
renewal or extension thereof, or it shall be amortized in installments
totaling in each year not less than three percent per annum of the
face amount of the bond or other obligations secured thereby, over
a period not exceeding 20 years from the date thereof, or the date
of any renewal or extension thereof.
[Ord. 2745 §§ 3 –
6, 1970; Ord. 3213 §§ 1 – 4, 1989; Ord. 3341 § 2, 1993; Ord. 3440 § 1, 1996; Ord. 3515 § 1, 1998; Ord. 3633 §
6, 2006]
(A) Every
person now or hereafter elected or appointed to an office of or employed
by the city who has attained the age of 60 years or over and who has
served as an officer or employee for a period of 20 years or more
shall, upon application to the board, be retired from service, and
shall during the remainder of his life receive the compensation fixed
by this article, subject to such qualifications as are hereinafter
contained.
If any person has served 20 years and voluntarily retires, he
shall be entitled to the compensation provided in this article at
the age of 60 years. During the lifetime of any such person, he shall
be entitled to receive as compensation annually from the fund set
aside for the purpose, 50 percent which would constitute the highest
average annual salary of wages which he earned during any five years
of his service to the city, or which would be determined by the rate
of the monthly pay of such person at the date of retirement, whichever
is the higher. Such compensation shall be paid in monthly payments.
(B) Where
an officer or employee has served for 12 years or more and has attained
the age of 60 years, and his tenure of office or employment shall
be terminated without his voluntary action before the expiration of
20 years of service, he shall, in such event, during the remainder
of his life, be entitled to receive such portion of the full compensation
as the period of his service, up to date of his termination, bears
to the full 20-year period of service. Where an officer or employee
has served for 12 years or more and has not attained the age of 60
years, and his tenure of office or employment shall be terminated
without his voluntary action before the expiration of 20 years of
service, he shall, in such event, during the remainder of his life,
after attaining the age of 60 years, be entitled to receive such portion
of the full compensation as the period of his service up to the date
of his termination, bears to the full 20-year period of service. Where
an officer or employee has served for 20 years or more and his tenure
of office or employment shall be terminated without his voluntary
action, he shall be entitled to full compensation for the remainder
of his life, after attaining the age of 55 years, conditioned upon
his continuing his contributions into the fund at the same rate as
when he was dismissed until he attains the age of 55 years.
(C) In
addition to the retirement allowance which is authorized to be paid
from the pension fund by this article and notwithstanding the limitations
therein placed upon such retirement allowances and upon contributions,
every officer or employee who becomes entitled to the retirement allowance
as provided under this article shall also be entitled to the payment
of a service increment under the following conditions:
(1) Service increment shall be the sum obtained by computing the number
of whole years after having served 20 years, required by this article,
during which a contributor has been employed by the city and multiplying
such number of years so computed by an amount equal to one-fortieth
of the retirement allowance which has become payable to such contributor
in accordance with the provisions of this article. In computing this
service increment, no employment after the contributor reached the
age of 65 years shall be included.
(2) Each contributor who so chooses to become entitled to the service
increments provided by this article shall pay into the retirement
fund a monthly sum, in addition to his retirement contribution, which
shall be equal to one-half percent of his salary. However, such service
increment contribution shall not be paid after a contributor has reached
the age of 65 years.
(3) Service increment contributions shall be paid at the same time and
in the same manner as retirement contributions, and may be withdrawn
in full without interest, by persons who leave the employment of the
city, subject to the same conditions by which retirement contributions
may be withdrawn, or by persons who retire before becoming entitled
to any service increment.
(4) Every contributor who chooses to become entitled to the service increment
and is presently employed by the city shall be required to make a
contribution to the fund in accordance with the rates and terms hereinbefore
specified. However, such payment shall be made by the contributor
retroactively from October 19, 1967, or from the date of employment
if employed after October 19, 1967.
(D) Spousal
Benefits – Entitlement to Allowance for Spouse or Children –
Eligibility and Termination. From and after the effective date of
this amendment, the surviving spouse of a city employee who retires
on pension after attaining age 60 and 20 years of completed service
and who dies (or who is eligible for such retirement) shall, during
such spouse’s lifetime or for so long as he or she does not
remarry, be entitled to receive the pension the employee was receiving
or would have been receiving had the employee been retired at the
time of his or her death. Upon remarriage, a spouse drawing such pension
shall immediately notify the city of such remarriage. If no spouse
survives or survives and subsequently dies or remarries, then the
children of such employee under the age of 18 years shall, until reaching
the age of 18 years, be entitled to receive such pension.
(E) Disability
and Early Death Benefits – Benefits for Death or Total Disability
Not in the Line of Duty. Any city employee who is a member of the
pension fund and who is totally disabled due to injuries or mental
incapabilities sustained or arising other than in the line of duty
and who is unable to perform the duties of his or her city office
or position as the result thereof shall be entitled to a pension in
accord with the following schedule:
(1) One-eighth of his or her annual compensation if such employee has
less than five years of completed service at the time of his or her
death or disability; or
(2) One-fourth of his or her annual compensation if such employee has
less than 10 but more than five years of completed service at the
time of his or her death or disability;
(3) One-half of his or her annual compensation if such employee has more
than 10 years of completed service at the time of his or her death
or disability.
The disability pension hereby shall continue for the duration
of the total disability of the disabled employee and, should such
disability continue for the balance of the life of such employee,
shall continue during such employee’s life. Payment of such
pension shall commence immediately as of the date such total disability
is established. Proof of such total disability shall consist of a
sworn statement of three practicing physicians, designated by the
board, that the employee is in the condition of health which would
totally disable him from performing the duties of his position or
office. Such person shall thereafter be subject to physical examination
at any reasonable time upon order of the board, and upon his refusal
to submit to any such examination, his compensation shall cease.
|
Any pension which would be payable under the terms of this section
to a city employee in the event of a total disability shall be payable
to the surviving spouse of any city employee who dies; provided, that
such spouse is not entitled to benefits under subsection (D) of this
section. If any such spouse shall die or remarry, the pension payable
under the terms of this section shall be payable to the child or children
of the deceased employee until such child or children attain the age
of 18 years. In all events, the spousal pension provided herein shall
end upon the death or remarriage of the surviving spouse or upon the
date on which the youngest of the deceased employee’s children
shall attain 18 years of age.
|
(F) Return
of Contributions. If a person entitled to pension benefits under this
article shall be dismissed from city employment or for any other reason
ceases to be an employee of the city before he or she becomes entitled
to a pension hereunder, the total amount of the contribution paid
into the fund by such person shall, upon his or her request, be refunded
in full, without interest.
In the event of the death of such person before he or she becomes
entitled to the pension herein provided for, the total of the contributions
paid into the fund by such person shall be paid, without interest,
to his or her spouse, if living; otherwise in equal shares to his
or her children, if any, otherwise to his or her estate.
(G) Employee
Contribution. In consideration of the grant of the spousal and disability
benefits required by this article, each employee shall pay to the
pension fund a special assessment equal to one percent of the gross
compensation of such employee from city employment. Such contribution
shall be made by payroll deduction.
(H) In-Service
Disability Benefit. A member who has completed at least 15 years of
service and who is totally disabled due to injuries or mental incapacities
sustained in the line of duty and who is unable to perform the duties
of his or her city office or position as the result thereof, shall
be entitled to a pension in the amount of one-half of his or her annual
compensation.
The disability pension hereby shall continue for the duration
of the total disability of the disabled employee and, should such
disability continue for the balance of the life of such employee,
shall continue during such employee’s life. Payment of such
pension shall commence immediately as of the date such total disability
is established. Proof of such total disability shall consist of a
sworn statement of three practicing physicians, designated by the
board, that the employee is in the condition of health which would
totally disable him from performing the duties of his position or
office. Such person shall thereafter be subject to physical examination
at any reasonable time upon order of the board, and upon his refusal
to submit to any such examination, his compensation shall cease.
Any pension which would be payable under the terms of this section
to a city employee in the event of a total disability shall be payable
to the surviving spouse of any city employee who dies; provided, that
such spouse is not entitled to benefits under subsection (D) of this
section. If any such spouse shall die or remarry, the pension payable
under the terms of this section shall be payable to the child or children
of the deceased employee until such child or children attain the age
of 18 years. In all events, the spousal pension provided herein shall
end upon the death or remarriage of the surviving spouse or upon the
date on which the youngest of the deceased employee’s children
shall attain 18 years of age.
[Ord. 2745 § 7, 1970; Ord. 3173 § 1, 1988; Ord. 3341 §
3, 1993; Ord. 3440 § 2, 1996; Ord.
3633 §§ 1 – 4, 2006; Ord. 3656 § 1, 2008]
(A) Except
as has been heretofore (and may hereafter from time to time be) otherwise
provided in an applicable labor relations agreement approved by the
city council of the City of Meadville, each officer and employee of
the city shall contribute to the fund monthly during his employment
by the city until retirement a sum equal to five percent of such officer’s
or employee’s monthly wage, salary or such other compensation
due to any such employee. The city treasurer, or such person as he
or she may designate, is hereby authorized to deduct such sum from
the pay, salary or compensation of each officer and employee required
to make payment hereunder and to pay the same over to the treasurer
of the city employees’ retirement and pension fund, to be applied
to the purposes of this article.
(B) Said
sums shall be inclusive of all required payments of the fund pursuant
to any and all provisions of this section.
(C) If
for any cause a person contributing to the fund has served less than
12 years and ceases to be in the service of the city, he shall become
entitled to the total amount of the contributions paid into the fund
by him, with simple interest at five percent per annum if he is not
a member of a bargaining unit or without interest if he is a member
of a bargaining unit.
(D) If
for any cause any person contributing to the fund ceases to be in
the service of the city before he has become entitled to any compensation
(including for this purpose failure of a member to timely file a notice
to vest), the total amount of the contributions paid by him into the
fund shall be refunded, in full, with five percent simple interest
per annum if he is not a member of a bargaining unit or without interest
if he is a member of a bargaining unit. However, if any person has
the amount contributed returned to him as aforesaid, and shall afterward
re-enter the service of the city, he shall not be entitled to the
compensation designated, unless he returns to the fund the amount
withdrawn, in which event the required period of service under this
article shall be computed from the time he first entered the service
of the city omitting only the time absent from city employment, otherwise,
the date of his period of service shall commence upon his re-entering
city service. In the event the reason for leaving the city employment
is due to service in the armed forces of the United States by enlistment
or otherwise, and if upon honorable discharge from the service, an
employee returns to city employment, upon payment into the fund of
the same contributions he would have been required to make for the
period of his time spent in the armed forces, and provided such service
is not in excess of six years, the period of service shall be included
in his period of service of the city for pension purposes. The required
contributions for time spent in the armed forces shall be calculated
at the same rate paid by other employees during the same period and
calculated on the rate of pay drawn by such employee at the time of
leaving city employment, time spent in the service of the United States
armed forces and return to city employment shall be continuous, except
that a period of 30 days after discharge from the armed forces and
return to city employment may be considered as continuous time.
(E) In
the event of the death of any person after he becomes entitled to
the compensation and has not elected to retire, the total amount of
contributions paid into the fund by him shall be paid over to his
widow first, if she survives him; if his widow does not survive him
then to his children equally; and if there be no widow or children,
then to his estate with interest at five percent simple interest per
annum if he was not a member of a bargaining unit or without interest
if he was a member of a bargaining unit.
(F) In
the event of the death of any person after he becomes entitled to
the compensation herein and after he has commenced receiving retirement
payments hereunder, the total amount of his contributions paid into
the fund less the retirement benefits paid to him shall be paid over
to his widow first, if she survives him; if she does not survive him,
then to his children equally; and if there be no widow or children,
then to his estate with five percent simple interest per annum if
he was not a member of a bargaining unit or without interest if he
was a member of a bargaining unit. It is the intent of this section
that an employee, whether dying before or after he has commenced to
receive retirement benefits, be entitled to a return of all the contributions
made by him to the fund. This section shall also be applicable insofar
as a return of the employee’s service increment contribution
is concerned.
(G) Unused
accumulated sick leave of up to a maximum of 110 days for which the
member does not receive compensation may be credited as continuous
service for purposes of calculating years of service under the plan
at a rate of one day of continuous service for every two days of unused
accumulated sick leave.
[Ord. 2361 § 5, 1954]
No person holding a position in the city as a laborer, at a
per diem wage, shall be compelled to pay or contribute toward the
fund herein provided for, but he shall have the option or choice of
so doing, and shall only, upon electing to contribute to the fund,
become entitled to the compensation provided by this article. However,
he shall be required to contribute three percent of his wages and
the same percentage upon any amount of compensation he receives after
his retirement.
[Ord. 2361 § 6, 1954; repealed by Ord. 3758]
[Ord. 2361 § 7, 1954]
The head of every department and office, employing persons entitled
under the provisions of this article to receive compensation, shall
certify from department or office records to the board all persons
so employed, the amount of salary or wages which is paid to such employee,
together with dismissals, resignations or terminations of service,
and such other relative information as the board may require.
[Ord. 2745 § 8, 1970]
Council shall annually set aside, apportion and appropriate
out of the taxes and income of the city and give over to the board
a sum sufficient to maintain the compensation due under this article.
[Ord. 2745 § 9, 1970]
The benefits conferred by this article shall apply to all persons
employed in any capacity, by or holding positions in the city, in
accordance with the provisions of this article and in following and
keeping with the definitions set forth as follows:
(A) “Person”
means an officer or employee of the city.
(B) “Employee”
means a person in the service of the city, who is either or not now
adequately protected under all circumstances by pension authorized
by the laws of this commonwealth and in force at the time of the passage
of this article (May 25, 1954).
(C) “Officer”
means a person elected or appointed to city service.
(D) “Board”
means the officers’ and employees’ retirement board.
(E) “Fund”
means the officers’ and employees’ retirement fund.
(F) “Joint
coverage member” means an officer or employee of the city who
is a member of the retirement system or fund and who has filed with
the board a written statement that he elects Social Security coverage
under an agreement with the Federal Secretary of Health, Education
and Welfare entered into by the commonwealth of Pennsylvania.
(G) “Involuntary
retirement” means a retirement without the voluntary action
of the employee, including but not limited to a dismissal by the city
or a loss of an election, but does not include a retirement because
of disability nor a retirement caused by the willful misconduct of
an employee.
[Ord. 2361 § 10, 1954]
The time of service herein specified shall be computed from
the time of the first or original service to the city, and need not
be continuous.
[Ord. 2361 § 11, 1954]
The pension herein provided shall not be subject to attachment
or execution, and shall be payable only to the beneficiary designated
by this article, and shall not be subject to assignment or transfer.
[Ord. 2361 § 12, 1954]
Any person holding a position in the city, whether elective
or appointed, who receives salaries or wages from other political
subdivisions shall be entitled to the same provisions of this article
as though they received all of their salaries or wages from the City
of Meadville; provided, that they contribute or pay into the fund
monthly an amount equal to three percent of their combined salaries
or wages, or, if they so choose, only on that portion of their salary
or wages paid by the city, in which case they shall be entitled to
receive the benefits provided by this article, based on that portion
only. If they receive a pension from another political subdivision
they shall be entitled to receive the benefits provided herein only
on that portion of their salary or wages paid by the City of Meadville.
[Ord. 2361 § 13, 1954; repealed by Ord. 3599]
[Ord. 2361 § 14, 1954]
By the passage of this article the city elects to establish
a retirement system and agrees to accept the provisions of law covering
such retirement system as is provided for herein. It is hereby ordained
that all persons defined as being eligible to be covered by this retirement
system shall so elect in writing to become covered by this retirement
system and shall indicate in writing that they thereby elect to accept
and agree to the terms of this article in its entirety.
[Ord. 2361 § 15, 1954]
Payments for pension and allowances hereunder shall not be a
charge on any other fund of the city treasury or of any fund under
its control, except the fund as provided for herein.
[Ord. 2361 § 16, 1954]
The provisions of this article shall be severable and if any
section or subsection is held to be unconstitutional or invalid, the
decision shall not be construed to affect the validity of any of the
remaining sections or subsection. It is hereby declared as the intent
of council that this article would have been adopted as if such unconstitutional
or invalid provisions had not been included herein.
[Ord. 3454 §§ 1, 2, 3, 1997; Ord. 3489 §§
1, 2, 1998; Ord. 3633 § 5, 2006]
Members who satisfy the following conditions shall be eligible
for the deferred vested benefits described herein:
(A) Where
a member shall have served for 12 years, or more, and shall have not
attained the age of 60 years, and his tenure of office or employment
shall be terminated without his voluntary action before the expiration
of 20 years of service, after attaining the age of 60 years (pension
entitlement date), the member shall be entitled to vest his retirement
benefits subject to the conditions described in subsection (D) of
this section.
(B) Where
a member who has served for 20 years or more and his tenure of office
or employment shall be terminated, then the member:
(1) After attaining the age of 55 years when his employment termination
was not voluntary (pension entitlement date); or
(2) After attaining the age of 60 years, when his employment termination
was voluntary (pension entitlement date); and
(3) Conditioned upon his continuing his contributions into the fund at
the same rate as when he was last employed until he attains the age
of 55 years;
shall be entitled to vest his retirement benefits subject to
the conditions described in subsection (D) of this section.
(C) A member
who voluntarily terminated his employment after 12 years of service
without entitlement to a deferred vested benefit pursuant to subsections
(A) or (B) of this section and before reaching the date which would
have been the member’s normal retirement date (as defined in
subsection (F) of this section), the member shall be entitled to vest
his retirement benefits subject to the conditions described in subsection
(D) of this section.
(D) The
deferred vested pension benefits described in subsections (A), (B)
and (C) of this section are specifically conditioned upon the following:
(1) The member must file with the city employees’ retirement and
pension board a written notice of his intent to vest;
(2) The member must include in the notice the date he intends to terminate
his service as an employee;
(3) The termination date shall be at least 30 days later than the date
of notice to vest;
(4) The member must be in good standing with the city on the date of
notice to vest; and
(5) The city employees’ retirement and pension board shall indicate
on the notice to vest the member’s compensation (as defined
in subsection (G) of this section).
(E) Upon
reaching the member’s pension entitlement date in the case of
member’s qualifying under subsections (A) or (B) of this section
or upon reaching the date which would have been the member’s
normal retirement date had the member continued his employment with
the city, the member shall notify the city employees’ retirement
and pension board, in writing, that the member desires to collect
his pension. The amount of retirement benefits the member is entitled
to receive shall be computed as follows:
(1) The initial determination of the member’s base retirement benefits
shall be computed on the compensation indicated on the notice to vest;
and
(2) In the case of a member qualifying under subsection (A) of this section,
the portion of the base retirement benefits due the member shall be
determined by applying to the base amount the percentage that his
years of service bears to 20 years of service;
(3) In the case of a member qualifying under subsection (B) of this section,
the member shall be entitled to the base retirement benefit;
(4) In the case of members qualifying under subsection (C) of this section,
the portion of the base retirement benefits due the member shall be
determined by applying to the base amount the percentage that his
years of service actually rendered bears to 20.
(F) Normal
Retirement Date. For the purposes of this section, “normal retirement
date” shall be the later of 20 years of service or reaching
60 years of age.
(G) Compensation.
For the purposes of this section, “compensation” shall
mean the rate of the monthly pay of the member as of the date of the
notice to vest or the highest average annual salary which the member
received during any five years of service preceding said date, whichever
is higher.
[Ord. 3728 § 1, 2014]
Notwithstanding anything to the contrary in MMC 165.01 through
165.17, no person, including but not limited to an appointed official,
elected official or a non-uniformed employee of the City of Meadville
who is hired, appointed or elected on or after May 21, 2014, shall
have any rights and/or be entitled to any benefits under MMC 165.01
through 165.17. The previous sentence does not apply to those employees
who are members of a bargaining unit at the city.
[Ord. 3730 §§ 1 –
6, 2014]
DEFINED CONTRIBUTION PLAN
(A) Eligibility
for Participation in Defined Contribution (DC) Features. In general,
this section applies only to non-uniformed persons on the first day
of employment; provided, that all prerequisites to participation under
the plan have been fulfilled, including, but not limited to, completion
of any probationary status and grant of regular fulltime (at least
35 hours per week) employee status on or after May 21, 2014, and completion
of any forms required by the plan administrator. Such persons shall
be referred to as participants. Any participant who participates in
the defined contribution provisions of this section shall not be eligible
to participate in the defined benefit features of this article for
the same period of service.
(B) Definitions.
“Account balance”
means the balance of a participant’s account held under
this section. A participant’s account balance shall be composed
of all amounts allocated under this section (including the employer
contribution participant account, the employee pre-tax and post-tax
contribution participant account) and all related earnings thereon
net of expenses thereon.
“Administrator” or “plan administrator”
means the individual or firm appointed by the city to administer
the plan. ICMA Retirement Corporation is appointed plan administrator.
If ICMA shall resign or otherwise fail to serve, the administrator
shall be the city manager.
“Trustee”
means the individual or entity selected by the city to hold
the assets of this section in trust for the participants. Unless and
until another appointment is made, the city shall be trustee of the
assets of the plan.
“Valuation date”
means the last day of the calendar year and any other date
selected by the city. However, to the extent any assets are invested
with an insurance or other investment company, valuation dates shall
be determined in accordance with the investment contract or arrangement.
(C) Contributions.
(1) Employer. For each calendar year, the city as employer shall make
a contribution to the plan that will be sufficient to satisfy the
requirements of subsection (D) of this section.
(2) Employee. Participants shall make a mandatory contribution of five
percent of base salary into the employee pre-tax contribution participant
account. Participants may also make voluntary contributions into employee
post-tax contribution participant account up to 10 percent of base
salary or such lesser amount as may be permitted under the Internal
Revenue Code (“Code”). All mandatory employee contributions
designated as such made on or after the first payroll after this plan
is adopted shall be paid or “picked up” by the employer
in lieu of contributions by the employees and thereafter treated as
employer contributions for federal income taxation purposes within
the meaning of Section 414(h)(2) of the Code. The contributions may
be paid or picked up by a reduction in the cash salary, by an offset
against future salary increases or a combination of both. Affected
employees shall not have the option of choosing to receive the picked
up contributions directly in lieu of having them paid by the employer
to the plans. Notwithstanding the foregoing, contributions so picked
up shall continue to be treated as employee contributions for all
purposes of state and local law in the same manner and to the same
extent as employee contributions made prior to the date of the pick
up, including, by way of illustration and not limitation, being treated
as part of the affected employee’s compensation for both Pennsylvania
and local income tax laws and for purposes of computing any benefits
under the affected employee’s pension plan.
(D) Allocation
of Contributions.
(1) Separate Accounts. The administrator shall maintain a separate participant
account for each participant setting forth the participant’s
account balance. The administrator shall make the allocations among
such participant accounts as set forth in this section.
(2) Employer contributions (made under subsection (C) of this section)
shall be allocated as of each allocation date among the employer contribution
participant accounts of eligible participants in the amount of seven
percent of the base salary that was paid to each such participant
since the previous allocation date. The last day of the plan year
and any interim date chosen by the city and the administrator shall
be allocation dates. The amount of the employer contribution may be
amended or stopped all together subject to any collective bargaining
requirements.
In order for an employer contribution for a calendar year to
be allocated to a participant account, the participant must not have
accrued any other benefit under this article for the same period of
time.
(E) Vesting.
A participant who ceases to be an employee in employment for any reason
other than death, total and permanent disability, or normal retirement,
and who has completed the following years of service shall vest in
his employer contribution participant account balance in accordance
with the following schedule. A participant who renders 12 full months
in employment with the city shall have recorded a year of service.
Years of Service
|
Percentage Vested
|
---|
Less than 5 Years
|
0%
|
5 Years or More
|
100%
|
Employee contributions are always 100 percent vested.
A participant shall immediately vest upon death, total and permanent
disability or normal retirement.
Any portion of a participant’s account balance which is
not vested upon termination of employment for a reason other than
death, disability or normal retirement shall be forfeited. Forfeitured
amounts shall be held in a suspense account until used to reduce the
employer’s contributions.
If a participant terminates employment and is later rehired,
his years of service shall begin upon his rehire date.
(F) Allocation
of Gain or Loss.
(1) General Pooled Assets. As of each valuation date, the administrator
shall determine the fair market value of all assets in the plan that
are not held in suspense accounts, segregated accounts or insurance
contracts. Any gain or loss on such assets since the previous valuation
date shall be allocated among all participant accounts (except those
accounts held in segregated accounts) in proportion to account balances
as of the previous valuation date.
(2) Segregated Accounts (Including Participant-Directed Investment Accounts).
As of each valuation date, the administrator shall determine the market
value of all assets held in each segregated account. A separate allocation
of gain or loss shall be made for each segregated account. If there
is more than one participant account within a segregated account,
the gain or loss since the previous valuation date for that segregated
account shall be allocated in proportion to the account balances as
of the previous valuation date.
(3) Holding Account. Contributions made between allocation dates (under
subsection (D) of this section) shall be allocated to a holding account
which shall also hold any related earnings all of which shall be allocated
to participant accounts pursuant to the process established by the
administrator and the city.
(4) Investment Contracts. Notwithstanding subsections (F)(1), (2), and
(3) of this section, if any plan assets are invested through any arrangement
with an insurance company or other investment organization, accounts
shall be valued and gains, losses, costs, and expenses shall be allocated
(but not less frequently than annually) in accordance with the terms
of the applicable investment contract or arrangement.
(G) Participant-Directed
Investments. Notwithstanding the provisions or the other sections
of this section, if the administrator establishes such a policy, any
participant, beneficiary, or alternate payee with an account balance
under this article may direct how to invest all, or a certain portion,
of his participant account. The city or administrator shall have sole
discretion to determine what investment options will be made available
to the participants. All contributions, expenses, income or losses
shall be allocated in accordance with the policies established under
this section. To the extent that the participants do not exercise
their rights under this section, the allocation of expenses, income
or losses may be made pursuant to subsection (F) of this section or
such other provisions set forth by the plan administrator and the
city and the investment of their accounts may be made pursuant to
subsection (F) of this section or such other provisions set forth
by the plan administrator and the city. To the extent permitted by
law, the trustee and administrator shall be relieved of any fiduciary
responsibility for investment decisions made pursuant to this section;
provided, however, that the plan administrator or trustee has followed
the instructions of the participant and that said instructions are
in accordance with applicable law. Upon the death or incapacity of
the participant, the powers granted to the participant under this
section shall inure to the benefit of the participant’s beneficiary,
trustee or legal representative.
(H) Distributions.
(1) Applicability. This section governs the distribution of vested account
balances. Furthermore, distributions are subject to the requirements
of the applicable provisions of the Internal Revenue Code as set forth
in this plan document.
(2) General Rule. Distribution of a participant’s vested account
balance shall be made in a lump sum as soon as it is administratively
feasible to make distribution following a participant’s termination
of employment with the employer and subject to such limitations and
conditions utilized by the administrator. A participant’s account
balance shall be valued as of the valuation date coincident with or
immediately preceding the date of distribution.
(3) Annuity Option. Notwithstanding subsection (H)(2) of this section,
if a participant has a vested account balance in excess of $5,000
and the participant desires to convert his lump-sum benefit into an
annuity, he may do so under the rules and conditions established by
the city and the administrator. This annuity shall be purchased from
a thirdparty insurance firm selected by the city or the administrator.
(4) Death Benefit. Each participant shall complete a beneficiary designation
form designating the person to whom his account balance shall be paid
upon his death. If no beneficiary form has been completed, the participant’s
account balance shall be paid to his spouse, or if no spouse to his
estate. All payments shall be made in a lump sum payment.
(5) Loans and Hardship Distributions. Loans and hardship distributions
of plan assets are not permitted.
(I) Administration.
(1) Powers of the Employer. The employer shall have the following powers
and duties:
(a) To appoint and remove, with or without cause, the plan administrator;
(b) To amend or terminate the plan;
(c) To appoint a committee to facilitate administration of the plan and
communications to participants;
(d) To decide all questions or eligibility (i) for plan participation,
and (ii) upon appeal by an participant, employee or beneficiary, for
the payment of benefits;
(e) To engage professionals with regard to plan matters and plan’s
operation;
(f) To take all actions and to communicate to the plan administrator
in writing all necessary information to carry out the terms of the
plan and trust; and
(g) To notify the plan administrator in writing of the termination of
the plan.
(2) Duties of the Plan Administrator. The plan administrator shall have
the following powers and duties:
(a) To construe and interpret the provisions of the plan;
(b) To maintain and provide such returns, reports, schedules, descriptions,
and individual account statements, as are required by law within the
times prescribed by law; and to furnish to the employer, upon request,
copies of any or all such materials, and further, to make copies of
such instruments, reports, descriptions, and statements as are required
by law available for examination by participants and such of their
beneficiaries who are or may be entitled to benefits under the plan
in such places and in such manner as required by law;
(c) To obtain from the employer such information as shall be necessary
for the proper administration of the plan;
(d) To determine the amount, manner, and time of payment of benefits
hereunder;
(e) To appoint and retain such agents, counsel, and accountants for the
purpose of properly administering the plan;
(f) To distribute assets of the trust to each participant and beneficiary
in accordance with the terms of this section;
(g) To pay expenses from the trust; and
(h) To do such other acts reasonably required to administer the plan
in accordance with its provisions or as may be provided for or required
by law.
(3) Protection of the Employer. The employer shall not be liable for
the acts or omissions of the plan administrator, but only to the extent
that such acts or omissions do not result from the employer’s
failure to provide accurate or timely information as required or necessary
for proper administration of the plan.
(4) Protection of the Plan Administrator. The plan administrator may
rely upon any certificate, notice or direction purporting to have
been signed on behalf of the employer which the plan administrator
believes to have been signed by a duly designated official of the
employer.
(5) Resignation or Removal of Plan Administrator. The plan administrator
may resign at any time effective upon 60 days’ prior written
notice to the employer. The plan administrator may be removed by the
employer at any time upon 60 days’ prior written notice to the
plan administrator. Upon the resignation or removal of the plan administrator,
the employer may appoint a successor plan administrator; failing such
appointment, the employer shall assume the powers and duties of plan
administrator. Upon the resignation or removal of the plan administrator,
any trust assets invested by or held in the name of the plan administrator
shall be transferred to the trustee in cash or property, fair market
value, except that the return of trust assets invested in a contract
issued by an insurance company shall be governed by the terms of that
contract.
(6) No Termination Penalty. The plan administrator shall have no authority
or discretion to impose any termination penalty upon its removal.
(7) Decisions of the Plan Administrator. All constructions, determinations,
and interpretations made by the plan administrator pursuant to this
section or by the employer pursuant to this section shall be final
and binding on all persons participating in the plan, given deference
in all courts of law to the greatest extent allowed by applicable
law, and shall not be overturned or set aside by any court of law
unless found to be arbitrary or capricious, or made in bad faith.
(J) Miscellaneous.
(1) Nonguarantee of Employment. Nothing contained in this plan shall
be construed as a contract of employment between the employer and
any employee, or as a right of an employee to be continued in the
employment of the employer, as a limitation of the right of the employer
to discharge any of its employees, with or without cause.
(2) Rights to Trust Assets. No employee or beneficiary shall have any
right to, or interest in, any assets of the trust upon termination
of his/her employment or otherwise, except as provided from time to
time under this plan, and then only to the extent of the benefits
payable under the plan to such employee or beneficiary out of the
assets of the trust. All payments of benefits as provided for in this
plan shall be made solely out of the assets of the trust and none
of the fiduciaries shall be liable therefor in any manner.
(3) Nonalienation of Benefits. Except as provided in subsections (J)(4)
and (6) of this section, benefits payable under this plan shall not
be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution, or
levy of any kind, either voluntary or involuntary, prior to actually
being received by the person entitled to the benefit under the terms
of the plan; and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber, charge or otherwise dispose of any right
to benefits payable hereunder, shall be void. The trust shall not
in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements or torts of any person entitled to benefits
hereunder.
(4) Qualified Domestic Relations Order. Notwithstanding subsection (J)(3)
of this section, amounts may be paid with respect to a participant
pursuant to a domestic relations order, but if and only if the order
is determined to be enforceable under state law.
(5) Nonforfeitability of Benefits. Subject only to the specific provisions
of this plan, nothing shall be deemed to deprive a participant of
his/her right to the nonforfeitable interest to which he/she becomes
entitled in accordance with the provisions of the plan.
(6) Incompetency of Payee. In the event any benefit is payable to a minor
or incompetent, to a person otherwise under legal disability, or to
a person who, in the sole judgment of the employer, is by reason of
advanced age, illness, or other physical or mental incapacity incapable
of handling the disposition of his/her property, the employer may
apply the whole or any part of such benefit directly to the care,
comfort, maintenance, support, education, or use of such person or
pay or distribute the whole or any part of such benefit to:
(a) The parent of such person;
(b) The guardian, committee, or other legal representative, wherever
appointed, of such person;
(c) The person with whom such person resides;
(d) Any person having the care and control of such person; or
(e) Such person personally.
The receipt of the person to whom any such payment or distribution
is so made shall be full and complete discharge therefor.
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(7) Inability to Locate Payee. Anything to the contrary herein notwithstanding,
if the employer is unable, after reasonable effort, to locate any
participant or beneficiary to whom an amount is payable hereunder,
such amount shall be forfeited and held in the trust for application
against the next succeeding employer contribution or contributions
required to be made hereunder. Notwithstanding the foregoing, however,
such amount shall be reinstated, by means of an additional employer
contribution, if and when a claim for the forfeited amount is subsequently
made by the participant or beneficiary or if the employer receives
proof of death of such person, satisfactory to the employer. To the
extent not inconsistent with applicable law, any benefits lost by
reason of escheat under applicable state law shall be considered forfeited
and shall not be reinstated.
(8) Mergers, Consolidations, and Transfer of Assets. The plan shall not
be merged into or consolidated with any other plan, nor shall any
of its assets or liabilities be transferred into any such other plan,
unless each participant in the plan would (if the plan then terminated)
receive a benefit immediately after the merger, consolidation, or
transfer that is equal to or greater than the benefit he/she would
have been entitled to receive immediately before the merger, consolidation,
or transfer (if the plan had then terminated).
(9) Employer Records. Records of the employer as to an employee’s
or participant’s period of service, termination of service and
the reason therefor, leaves of absence, reemployment, earnings, and
salary will be conclusive on all persons, unless determined to be
incorrect.
(10) Gender and Number. The masculine pronoun, whenever used herein, shall
include the feminine pronoun, and singular shall include the plural,
except where the context requires otherwise.
(11) Applicable Law. The plan shall be construed under the laws of the
commonwealth of Pennsylvania, except to the extent superseded by federal
law. The plan is established with the intent that it meets the requirements
under the code. The provisions of this plan shall be interpreted in
conformity with these requirements.
In the event of any conflict between the plan and a policy or
contract issued hereunder, the plan provisions shall control; provided,
however, no plan amendment shall supersede an existing policy or contract
unless such amendment is required to maintain qualification under
Section 401(a) and 414(d) of the Code.
(K) Trust.
A trust is hereby created to hold all the assets under this section
for the exclusive benefit of participants and beneficiaries, except
that expenses and taxes may be paid from the trust including investment
expenses and reasonable compensation of plan administrator and reimbursement
of reasonable expenses of plan administrator.
The trustee or the plan administrator acting as agent for the
trustee shall have all such powers of a trustee as are permitted under
the laws of the commonwealth of Pennsylvania.
(L) Document
Coordination. The defined contribution provisions of this section
shall be construed in conformance with the provisions of City Ordinance
3700 of 2012 (additional code provisions, MMC 160.14 and 160.15);
City Ordinance 3693 of 2011 (Heart Act, MMC 160.13); and City Ordinance
3655 of 2008 (code provisions, Article 160 MMC) including the rollover
provisions of these ordinances associated with rollover out of the
plan. No rollovers are permitted into the defined contribution fund
or participant accounts.
MAINTENANCE AND ADMINISTRATION
(M) The
provisions of the plan shall be maintained for the exclusive benefit
of eligible employees and their beneficiaries.
(N) The
employer hereby executes the declaration of trust of VantageTrust,
intending this execution to be operative with respect to the provisions
of plan codified in subsections (A) through (L) of this section established
by the employer associated with the assets of the plan that are to
be invested in the VantageTrust.
(O) The
employer hereby agrees to serve as trustee under the provisions of
the plan and to invest funds held thereunder in the VantageTrust.
(P) The
city manager shall be the coordinator for the plan administration;
shall receive reports, notices, etc. from the ICMA Retirement Corporation
or the VantageTrust; shall cast, on behalf of the employer, any required
votes under the VantageTrust; may delegate any administrative duties
relating to the plan administration to appropriate departments.
(Q) The
employer hereby authorizes the city manager to execute all necessary
agreements with the ICMA Retirement Corporation incidental to the
administration of the plan. References to any entity hereunder shall
include successors of such entity.
[Ord. 3775 § 1, 2019]
Those actively employed plan participants who are members of
AFSCME and who have at least 30 years of service and 90 or more points
(points for this purpose being the combination of years of age and
years of service) as of January 15, 2019 (window eligible participants),
who elect before May 15, 2019, and retire before May 31, 2019, may
elect to receive either A or B below:
(A) Full
(unreduced) normal retirement benefits; or
(B) One
hundred dollars a month supplement for a maximum of 24 months beginning
at age 60 (or retirement, if later) and stopping after the earlier
of 24 months or death.
Those window eligible participants must elect to retire and
execute a waiver and release agreement before May 15, 2019, and retire
before May 31, 2019.
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In order to qualify for the window benefit, a window eligible
participant must complete a window election form as well as an age
discrimination in employment waiver agreement and general release
and return both to Debbie L. Oldakowski, finance director, before
May 15, 2019. The electing window eligible participant must then terminate
employment with the city and retire before May 31, 2019. The May 15,
2019, election date and May 31, 2019, retirement date are the “election
time requirements” to qualify for the window retirement benefit.
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[Ord. 3786 § 1, 2021]
Those actively employed plan participants who are not members
of a bargaining unit and who are at least age 60 and who have at least
83 or more points (points for this purpose being the combination of
years of age and years of service) as of December 15, 2020 (window
eligible participants), who elect before March 16, 2021, and retire
before April 15, 2021, may elect to receive:
A $200.00-a-month supplement for a maximum of 12 months beginning
at retirement and stopping after the earlier of 12 months or death.
Those window eligible participants must elect to retire and
execute a waiver and release agreement before March 16, 2021, and
retire before April 5, 2021.
In order to qualify for the window benefit, a window eligible
participant must complete a window election form as well as an age
discrimination in employment waiver agreement and general release
and return both to Debbie L. Oldakowski, finance director, before
March 16, 2021. The electing window eligible participant must then
terminate employment with the city and retire before April 5, 2021.
The March 16, 2021, election date and April 5, 2021, retirement date
are the “election time requirements” to qualify for the
window retirement benefit.