[HISTORY: Adopted by the City Council of the City of Hazleton 12-17-2024 by Ord. No. 2024-21.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance superseded former Ch. 87, Pensions, Art. I, Aggregated Pension Trust Fund, adopted 6-29-2000 by Ord. No. 2000-26; amended 4-12-2022 by Ord. No. 2022-3 and 4-26-2022 by Ord. No. 2022-5.
A. 
There is established an Aggregated Pension Trust Fund consisting of all City uniformed pension fund assets, in the manner and under the conditions and subject to the provisions of the Municipal Pension Plan Funding Standard and Recovery Act, Act 1984-205,[1] and subject to future amendment; such pension trust fund to be subject to all the definitions as set forth in the aforesaid Act of Assembly.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
B. 
Transfer of funds. All pension fund assets in the Police Pension Fund, as set forth in Ordinance No. 926, dated October 27, 1931, as amended, and of the Firemen's Pension Fund, as set forth in Ordinance No. 1913, as amended, shall be transferred to the Aggregated Pension Trust Fund hereby created, together with all financial records pertaining thereto.
C. 
Subsequent to the aggregation, the pension trust fund shall be the funding mechanism for all pension plans connected with the aggregation. Each pension plan subject to the aggregation shall have an undivided participation in the assets of the combined pension trust fund.
A. 
General.
(1) 
There is established a board to be known as the "Aggregated Pension Trust Fund Board of Trustees" (also referred to as the "Super Board"), composed as provided by the Municipal Pension Plan Funding and Recovery Act, Act 1984-205, with the powers and duties herein provided.
(2) 
Members of the Board of Trustees shall serve without compensation but shall be reimbursed for necessary expenses.
(3) 
No person shall suffer loss of salary or wages by reason of service on the Board.
B. 
Composition of Board of Trustees. The Board of Trustees shall be composed of the following:
(1) 
Mayor, or his or her designee;
(2) 
Direction of Administration, or his or her designee;
(3) 
Chief of Police, or his or her designee;
(4) 
Chief of Fire, or his or her designee;
(5) 
President of Council;
(6) 
One member each, elected from the active membership of each pension plan included in the Aggregated Pension Trust Fund.
C. 
Officers of Board.
(1) 
The Mayor shall serve as President of the Board of Trustees.
(2) 
The Direction of Administration shall serve as the Secretary/Treasurer/Vice President of the Board of Trustees.
D. 
Qualification, term and election of members of Board of Trustees from active membership of existing pension plans. An active member from each of the pension plans included in the Aggregated Pension Trust Fund shall be qualified and elected for terms as follows:
(1) 
Qualifications. The employee member must be actively contributing to the applicable pension fund.
(2) 
Terms. Employee members on the Board shall serve three-year terms beginning on the first Monday of February, except for the first term of this chapter. The first terms of the employee members shall be as follows: member representing Fire Pension Fund membership, date of election to first Monday of February 2001; member representing Police Relief and Pension Association membership, date of election to first Monday of February 2002. Board memberships shall be held until the successors are elected and enter upon their duties.
(3) 
Elections. The full active membership of each of the pension plans included in the aggregation shall conduct an election for each vacancy during the January immediately preceding the expiration of any term. On the second Monday of each January, the membership shall conduct a meeting at a time and place specified by the Board of Trustees for the purposes of receiving nominations for the employee memberships on the Board. At such meeting, the Board of Trustees shall determine and announce the date and hours for receiving of election ballots. The Board of Trustees shall promptly, upon conclusion of the nomination meeting, post notices in conspicuous places in the City Hall, stating the date and hours fixed for the election and names of all employees placed in nomination at such meeting. The Chairman or Acting Chairman of the Board of Trustees shall appoint and assign judges for the election. The nominees receiving the highest number of votes shall be elected as the Board members.
(4) 
Election of initial Board members. Within 30 days following the effective date of this chapter, the active membership of each of the pension plans included in the aggregation shall conduct a meeting at a time and place specified by the present governing bodies of said pension plans for the purpose of receiving nominations for employee memberships on the Board. At such meeting, the interim Board of Trustees [those members designated in § 87-2B(1) through (6)] shall determine and announce the date and hours for receiving ballots. Thereafter, an election in accordance with the procedures set forth in Subsection D(3) above shall be held.
(5) 
Vacancy. Any employee membership on the Board which becomes vacant for any reason shall be filled for the unexpired term by an election to be conducted promptly by the Board, consistent with the provisions for regular elections herein stated.
A. 
Legal title to assets. Legal title to assets in the Aggregated Pension Trust Fund shall be in the Board of Trustees, subject to the rights of any person having a beneficial interest in a particular pension plan which is associated with the pension trust fund.
B. 
Investment of assets.
(1) 
The standard of prudence to be applied by the Board of Trustees in the investment of the aggregated pension funds shall be the "prudent investor" rule, which states, "Investments shall be made with judgment and care, under circumstances when prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital, as well as the probable income to be derived." The "prudent investor" shall be applied in the context of managing the overall portfolio.
(2) 
The assets of the Aggregated Pension Trust Fund shall be invested in investment securities and/or other instruments which are authorized investments pursuant to any applicable laws for any of the associated pension plans.
(3) 
The Board of Trustees will routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments, and will adjust the portfolio accordingly.
(4) 
Investments shall be diversified to preclude large losses from a single position.
(5) 
The Board of Trustees may employ a professional money manager or portfolio manager or other consultants or professionals as deemed necessary to aid in the investment and/or administration of pension fund assets.
(6) 
Investment earnings shall be allocated to each associated pension plan in proportion to the most recently determined participation value.
C. 
Responsibility for assets. The prior managing board of pension funds aggregated hereunder, to wit, the Police Pension Board and the Board of Managers of the Paid Firemen's Pension Board, shall continue to have the responsibility for determining the eligibility for pension of any applicant under their respective pension plan, and for the certifying of such determinations of eligibility to the Board of Trustees created hereunder; the Police Pension Board and the Paid Firemen's Pension Board, however, shall no longer have any authority, right, or responsibility for the investment or accounting or auditing of any of the funds aggregated hereunder.
The funds accruing to the Aggregated Pension Trust Fund shall be used for pensioning the regular salaried officers of the Police Department of the City.
The Aggregated Pension Trust Fund Board of Trustees shall have the right to receive bequests, gifts, legacies and donations intended for the purpose of such corporation. If such bequests, legacies, gifts or donations are made directly to the City at any time in the future, the latter shall pay the same over to the Aggregated Pension Trust Fund, unless specifically prohibited by the terms of such gift or donation.