[Adopted 10-23-2014 by Ord. No. 577]
The following words and phrases as used in this Plan shall have the meaning set forth in this section, unless a different meaning is otherwise clearly required by the context:
ACCOUNT or ACCRUED BENEFIT
Shall mean the fair market value of a Participant's individual account as determined on each Valuation Date.
ACT
Shall mean the Municipal Pension Plan Funding Standard and Recovery Act (enacted as Act 205 of 1984), as amended, 53 P.S. § 895.101 et seq.
AUTHORIZED LEAVE OF ABSENCE
Shall mean any leave of absence granted in writing by the Employer for reasons, including, but not limited to, accident, sickness, pregnancy or temporary disability, education, training, jury duty or such other reasons as may necessitate authorized leave from active Employment. "Authorized Leave of Absence" shall include any period of absence from Employment for the purpose of serving in the Armed Forces of the United States of America, provided the Employee returns to Employment at the time and under the circumstances which provide reemployment rights pursuant to federal or state law.
BENEFICIARY
Shall mean the person or entity designated by the Participant to receive such benefits as may be due hereunder upon the death of the Participant. In the event that a Participant does not designate a Beneficiary or the Beneficiary does not survive the Participant, the Beneficiary shall be the surviving spouse, or if there is no surviving spouse, the issue, per stirpes, or if there is no surviving issue, the estate; but if no personal representative has been appointed, to those persons who would be entitled to the estate under the intestacy laws of the Commonwealth if the Participant had died intestate and a resident of the Commonwealth.
BREAK IN SERVICE
Shall mean a computation period of 12 months during which an individual fails to complete at least 500 Hours of Service as an Employee in Employment.
CHIEF ADMINISTRATIVE OFFICER
Shall mean the person designated by the Employer who has the primary responsibility for the execution of the administrative affairs for the Plan.
CODE
Shall mean the Internal Revenue Code of 1986, as amended.
COMMONWEALTH
Shall mean the Commonwealth of Pennsylvania.
COMPENSATION
Shall mean the total remuneration, whether salary or hourly wages paid to an Employee by the Employer for services rendered in Employment and reported on the Employee's form W-2, wage and tax statement. Compensation shall be limited on an annual basis for purposes of this Plan to the amount specified pursuant to Code section 401(a)(17), as adjusted under Code section 415(d).
CONTINUOUS EMPLOYMENT
Shall mean an Employee's period or periods, if reemployed after incurring a Break In Service, of uninterrupted Employment with the Employer. For purposes of this section, Employment shall not be deemed interrupted by any periods of Authorized Leave of Absence. In the event an Employee does not return to Employment at the conclusion of an Authorized Leave of Absence, the Employee shall be deemed to have terminated Employment as of the last day on which the Employee rendered active service for the Employer.
A. 
"Continuous Employment" shall also include any period of qualified military service as determined under the requirements of Chapter 43 of Title 38, United States Code, provided that the Participant returns to Employment following such period of qualified military service, and the Participant makes payment to the Plan in an amount equal to the Participant Contributions that would otherwise have been paid to the Plan during such period of qualified military service. The amount of Participant Contributions shall be based upon an estimate of the Compensation that would have been paid to the Participant during such period of qualified military service as determined by the average Compensation paid to the Participant during the 12 months immediately preceding the period of qualified military service. The amount of Participant Contributions so calculated must be paid into the Plan before the end of the period that begins on the date of re-employment and ends on the earlier of the date that ends the period that has a duration of three times the period of qualified military service, or the date that is five years after the date of re-employment.
CONTRACT or POLICY
Shall mean a retirement annuity or retirement income endowment policy (or a combination of both), or any other form of insurance contract or policy which shall be deemed appropriate in accordance with the provisions of the Act.
COUNCIL
Shall mean the Borough Council for the Borough of Blawnox.
EARLY RETIREMENT AGE
Shall mean the later of the date that an Employee attains age 60 or completes 10 Years of Service.
EMPLOYEE
Shall mean any person who is regularly employed on a full-time basis as a service Employee of the Employer, excluding, however, any police officer of the Employer.
A. 
The term "Employee" shall also include any leased employee deemed to be an Employee of the Employer as provided in Code section 414(n). Notwithstanding anything contained herein to the contrary, leased employees shall not be eligible to participate in this Plan. Any person whom the Council does not regard as being an Employee shall not be eligible to participate.
EMPLOYER
Shall mean the Borough of Blawnox, Allegheny County, Pennsylvania.
EMPLOYMENT
Shall mean any period of time during which an Employee renders services for the Employer for which the Employee is entitled to receive Compensation. Employment shall not include any period of time during which an individual performs services as an independent contractor paid on a contractual or fee basis.
HOUR OF SERVICE
Shall mean each hour for which an Employee is entitled to Compensation for Employment. Hours of Service may be imputed and calculated in a manner consistent with the requirements of Department of Labor regulations found at section 2530.200(b).
INSURER or INSURANCE COMPANY
Shall mean any legal reserve life insurance company licensed to do business in one or more states of the United States.
NORMAL RETIREMENT AGE
Shall mean the date that an Employee attains age 65.
PARTICIPANT
Shall mean any Employee who has commenced participation in this Plan in accordance with § 72-22 and has not for any reason ceased to participate hereunder.
PENSION FUND
Shall mean the fund administered under the terms of this Plan, which shall include all assets including but not necessarily limited to money, property, investments, Policies and Contracts standing in the name of the Plan.
PLAN
Shall mean the Service Employees' Pension Fund of the Borough of Blawnox as set forth herein.
PLAN ADMINISTRATOR or ADMINISTRATOR
Shall mean the Employer or any individual or committee to whom the Employer delegates such function.
PLAN YEAR
Shall mean the twelve-month period beginning on January 1 and ending on December 31.
RESTATEMENT DATE
Shall mean September 1, 2014, the date on which the provisions of this restated Plan are effective.
VALUATION DATE
Shall mean the last day of the Plan Year (December 31st) or such other date as agreed to by the Employer.
YEAR OF SERVICE
Shall mean each completed twelve-month period of Continuous Employment with the Employer during which an Employee completes at least 1,000 Hours of Service.
A. 
Eligibility for participation. Each Employee shall be eligible to participate in the Plan as of the date of such Employee's commencement of Employment with the Employer, provided all prerequisites to participation under this Plan shall have been fulfilled, including but not limited to completion of all forms required by the Plan Administrator.
(1) 
Notwithstanding the foregoing, each Employee who was a Participant in the Plan on the day prior to the Restatement Date shall continue to be a Participant on and after the Restatement Date, subject to the terms and conditions of the Plan as set forth herein.
B. 
Change in status. In the event a Participant who remains in the service of the Employer ceases to be an Employee eligible for participation hereunder, no further contributions shall be credited with respect to such Participant until the Participant again qualifies under such participation requirements.
C. 
Leave of absence. During any Authorized Leave of Absence, a Participant shall continue to receive credit for Years of Service for vesting but no additional Employer contributions shall be credited to such Participant unless expressly authorized by the Employer as part of the terms and conditions of such Authorized Leave of Absence. An Employee who fails to return to Employment at the conclusion of an Authorized Leave of Absence shall be deemed to have terminated Employment as of the last day on which services were actually rendered as an Employee.
D. 
Recordkeeping. The Employer shall furnish the Administrator with such information as will aid the Administrator in the administration of the Plan and Pension Fund. Such information shall include all pertinent data on Employees for purposes of determining their eligibility to participate in this Plan initially and subsequently.
[Amended 2-28-2019 by Ord. No. 607; 10-13-2021 by Ord. No. 620; 12-11-2024 by Ord. No. 637]
A. 
Employer contributions. Effective January 1, 2025, for each Plan Year, the Employer shall make a contribution or contributions to the Pension Fund in an amount equivalent to 8% of each Participant's Compensation for the Plan Year. The contribution shall be reduced by any amounts forfeited pursuant to Subsection E and may be made from the general tax revenues of the municipality, or any state aid received pursuant to the provisions of the Act, or gifts or donations of any kind.
B. 
Employee contributions. Participants shall contribute to the Plan in an amount equal to 5% of Compensation for the Plan Year. Each Employee shall complete the necessary forms to authorize the payment of Employee Contributions by way of payroll deduction.
(1) 
Notwithstanding any other provisions of the Plan, a Participant shall at all times be 100% vested in the fair market value of their Employee Contributions, and the Employee Contributions shall not be subject to forfeitures for any reason. A Participant may not withdraw all or any part of their Employee Contributions from the Pension Fund prior to retirement, death or other termination of Employment.
C. 
Limitations on contributions. Notwithstanding anything contained herein to the contrary, the Annual Addition to a Participant's Account for any Plan Year shall not exceed the lesser of the annual amount determined pursuant to Code section 415(c)(1)(A), $45,000 as of the Restatement Date, for a Plan Year or 100% of the Participant's Compensation for the Plan Year.
(1) 
"Annual Addition" Shall mean, for purposes of this Subsection C, the sum of Employer Contributions, Employee Contributions and Forfeitures.
(2) 
For purposes of applying the limitations of this Subsection C, all defined contribution plans of the Employer shall be treated as one defined contribution plan, and all defined benefit plans of the Employer shall be treated as one defined benefit plan.
(3) 
For Plan Years beginning before January 1, 2001, if the Participant was a Participant at any time in both a defined contribution plan and a defined benefit plan maintained by the Employer, the sum of the defined benefit plan fraction and the defined contribution plan fraction shall not exceed one and the following subsections shall apply:
(a) 
The defined benefit plan fraction for a Plan Year shall be a fraction the numerator of which is the projected annual benefit of the Participant as of the close of the year, and the denominator of which is the lesser of 1.25 times the amount under Code section 415(b)(1)(A) as adjusted pursuant to Code section 415(d), or 1.4 times the amount determined under Code section 415(b)(1)(B) with respect to the Participant for the applicable Plan Year.
(b) 
The defined contribution plan fraction for a Plan Year shall be a fraction the numerator of which is the sum of the Annual Additions to the Participant's Account as of the close of the year, and the denominator of which is the sum of the lesser of the amounts determined for each year of service with the Employer which shall be 1.25 times the amount determined pursuant to Code section 415(c)(1)(A) for each year, or 1.4 times 25% of the Participant's Compensation for each year.
(4) 
If the limitations contained in this Subsection C are exceeded for a Plan Year then the Annual Addition under this Plan shall be reduced first by limiting or refunding Employee Contributions together with earnings thereon, then by limiting or refunding Employee Contributions to any other plan maintained by the Employer, then by allocating excess Employer Contributions to a suspense account and treated as Forfeitures pursuant to Subsection E.
D. 
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:
(1) 
The contribution was made due to a mistake of fact and the contribution is returned within one year of the mistaken payment of the contribution; or
(2) 
The Plan is terminated, as provided in § 72-32.
E. 
Forfeitures. Any Forfeitures arising from the operation of § 72-29B shall be considered a credit to the Employer and shall be used as a suspense account without income from investments to offset Employer Contributions for the year in which the Forfeiture occurs which are not funded by the annual allocation of General Municipal Pension System State Aid. Any Forfeiture balance remaining after any such offset to Employer Contributions shall be allocated proportionately (percentage of account balance) among the active Employees on the Valuation Date on which the forfeiture occurred.
A. 
Separate accounting. The Plan Administrator shall establish and maintain a separate Account for each Participant, showing the total value of his or her interest in the Pension Fund. Each Participant's Account shall be separated into Employer Contributions and Employee Contributions for bookkeeping purposes. The Participant shall be informed of the fair market value of the Account at least once a year as of the current Valuation Date.
B. 
Allocation of contributions. The contributions of the Employer with respect to any Plan Year shall be allocated to the Account of each "Eligible Participant" as defined in Subsection C. Allocations shall be determined as of the Valuation Date and shall occur at such time as the total contribution for the Plan Year has been made. Any contribution made in respect of any Plan Year by the Employer shall be deemed to have been made as of the Valuation Date occurring at the end of the Plan Year with respect to which such contribution was made.
C. 
Eligible participants. For purposes of allocating Employer Contributions pursuant to Subsection B above, the term "Eligible Participant" Shall mean Participants who have completed a Year of Service during the Plan Year.
A. 
Investment of contributions. The Plan Administrator shall receive, hold, invest and reinvest all contributions and assets of this Plan. The purchase of Contract(s) shall be considered a form of investment. Investments of any other form of property such as securities, real estate mortgages, or notes shall be limited to property of a character which is consistent with Code Section 503 for investments under qualified plans. Such investments shall be made from contributions and monies directed to the Investment Fund of this Plan.
B. 
Investment fund. Any contribution not invested under Contracts as defined in § 72-21 shall be deemed to be in the Investment Fund. Such contributions and monies in this Fund shall be used for the purpose of providing benefits for Participants and Beneficiaries according to the terms of the Plan. The Administrator is authorized and empowered to invest and reinvest the principal and income of the Investment Fund and to keep the Investment Fund invested without distinction between principal and income, in such property, real or personal, as deemed advisable, including but not limited to any common or preferred stocks, bonds, notes, mortgages, trust certificates, savings accounts, mutual funds, individual single premium annuity Contracts, allocated or unallocated group annuity Contracts, or investment-only Contracts provided by an insurance company and pooled accounts of a bank or trust company maintained exclusively for qualified plans. In making such investments or reinvestments, the Administrator has wide latitude in the selection of investments and shall not be restricted to securities or other property of a character authorized or required by applicable law from time to time to trust investments. The Administrator shall, however, exercise the judgment and care under the circumstances then prevailing, which individuals of prudence, discretion, and intelligence familiar with such matters exercise in a like situation. The Administrator in its discretion may keep such portion of the Investment Fund in cash or cash balances as the Administrator may from time to time deem to be in the best interest of the Plan.
C. 
Rights of administrator. The rights and interest of any Participant on whose life or in whose name a Contract is issued shall not be expanded by such an investment and any and all rights provided under the Contract or permitted by the Insurer shall be reserved to the Administrator. Such rights shall include the right to surrender, reduce or split the Contract, the right to name and change the payee to receive thereunder on the happening of any contingency specified in the Contract, the right to exercise any loan provisions to pay premiums or for any other reason, and such other rights as may be reserved to the owner of the Policy.
A. 
Maintenance of individual accounts. The individual Account maintained on behalf of each Participant shall be credited or debited (as the case may be) with the allocable share of such Participant in the Investment Fund resulting from Employer Contributions (or including Forfeitures as a part thereof), Employee Contributions and appreciation or depreciation in the value of the Investment Fund, as set forth herein.
B. 
Valuation of investment fund. The Plan Administrator shall determine, as of each Annual Valuation Date, the net value of the Investment Fund and the amount of net income or net loss. In determining such value, the Plan Administrator shall value such assets at their fair market value as of the close of business on each Valuation Date and the appreciation or depreciation in the value of the Investment Fund since the prior Valuation Date plus any net income (exclusive of contributions and forfeitures) or net loss and expenses incurred shall be debited or credited among the Participant's Accounts.
C. 
Crediting of investment results. As of any Valuation Date, the earnings and accretions of the Investment Fund attributable to investment of fund assets, reduced by losses experienced (whether or not realized) and expenses incurred since the preceding Valuation Date shall be credited or debited to the Accounts of the Participants and Beneficiaries who had unpaid balances in their Accounts as of such Valuation Date in proportion to the balances in such Accounts as of the prior Valuation Date, after reducing such prior Valuation Date balances by the amounts withdrawn by or distributed to the Participant or Beneficiary since such Valuation Date, if any.
D. 
Crediting of contributions and forfeitures. As of each Valuation Date, after such crediting of the valuation results to each Account, contributions shall be allocated to each Account pursuant to § 72-24B. Any Forfeitures that arise in a given Plan Year shall be used to reduce the amount of Employer Contributions for such year pursuant to the provisions of § 72-23E hereof.
E. 
Valuation of contracts. If the Plan Administrator is investing in an unallocated group annuity or investment Contract, such assets shall be valued and Accounts adjusted in the same manner as provided in § 72-26B and C.
F. 
Communication to participants. The total value of a Participant's Account shall be determined as of each Valuation Date and, as soon as practical after the end of such Plan Year, the Plan Administrator shall convey to each Participant the total value of the Account as determined pursuant to this § 72-26; provided, however, that neither the maintenance of Accounts nor the allocations of contributions to Accounts shall operate to vest in any Participant any right or interest in or to any assets of the Pension Fund except as the Plan specifically provides.
A. 
Retirement. Each Participant who shall retire at their Normal Retirement Age shall be fully vested in accordance with the provisions of § 72-29 and shall have a nonforfeitable right to the value of their Account and contributions hereunder shall cease thereupon. If the Participant elects to continue working past their Normal Retirement Age, no distribution shall be made to such Participant until their actual retirement date or a minimum distribution is required by law. The Plan Administrator shall then distribute the value of the Participant's Account in accordance with § 72-28.
B. 
Early retirement benefit. An Early Retirement Benefit will be available to Participants who have attained their Early Retirement Age under the Plan. A Participant who attains their Early Retirement Age and separates from Employment, will become fully vested in their Account, regardless of any vesting schedule which otherwise might apply. The Plan Administrator shall then distribute the value of the Participant's Account in accordance with § 72-28.
C. 
Death. If a Participant shall die prior to the commencement of any benefit otherwise provided under this section, the Participant's Account shall become fully vested. The Plan Administrator shall then distribute the value of such Participant's Account to the Beneficiary of the Participant in accordance with § 72-28.
D. 
Designation of beneficiary. Each Participant shall be given the opportunity, in the original election to participate, to designate a Beneficiary. From time to time the Participant may file with the Plan Administrator a new or revised designation on such form as the Plan Administrator shall provide.
A. 
Payment of benefits. Upon a Participant's entitlement to payment of retirement benefits under § 72-27A and B or a Beneficiary's entitlement to receive payment under § 72-27C, such individual shall file with the Plan Administrator a written election on such form or forms and subject to such conditions as the Plan Administrator shall provide. The election shall specify 1 whether payment of benefits is to be made as of such entitlement or to be deferred to the extent provided in Subsection C below and 2 which of the methods provided below for payment of benefits would be preferred. The Plan Administrator in its sole discretion, and in accordance with the provisions of this section, but considering a Participant's election, if any, shall then determine when payment of a Participant's benefit is to commence and the method by which the benefits will be paid.
(1) 
The Plan Administrator shall follow a Participant's Beneficiary designation in the case of a distribution on account of the Participant's death. Payments to a Participant's Beneficiary shall be made or commence as soon as practicable after a Participant's death.
(2) 
Unless a Participant elects earlier commencement of benefits, payment of the benefits under this Plan shall be made or commence within 60 days after the later of a) the end of the Plan Year in which the Participant attains Normal Retirement Age, or b) the end of the Plan Year in which Employment terminates.
(3) 
The Plan Administrator shall distribute the amounts due from a Participant's Account in any one of the following methods:
(a) 
A single lump sum payment based on the market value of the Participant's Account, payable in cash, part of all of which may be treated as a Direct Rollover pursuant to § 72-28D; or
(b) 
A series of installment payments over a specified period, the frequency and duration of which shall be determined by the Participant or designated Beneficiary, if applicable.
B. 
Commencement of benefits. A Participant may elect to commence receiving distribution of retirement benefits as of their actual retirement date or may defer such payments to a date not later than the required date for commencement of benefits determined under § 72-28C. If a Participant elects immediate commencement of the retirement benefit, payments shall commence as of their retirement date.
(1) 
Unless the Participant otherwise elects, payment of benefits under the Plan shall commence not later than 60 days following the close of the Plan Year in which occurs the latest of the following dates:
(a) 
The date when the Participant attains Normal Retirement Age;
(b) 
The 10th anniversary of the year in which the Participant commenced participation in the Plan; or
(c) 
The date when the Participant terminates Employment with the Employer.
C. 
Required distributions.
(1) 
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:
(a) 
Not later than the Required Beginning Date; or
(b) 
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 C(1)(b) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection C(1)(b) as of the date of death.
(2) 
If a Participant who is entitled to benefits under this Plan dies before distribution of benefits 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 Employee's 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 distributions are required to begin shall not be earlier than the date upon which the Employee would have attained age 70 1/2 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.
(3) 
For purposes of this section, the following definitions and procedures shall apply:
(a) 
"Required Beginning Date" Shall mean April 1 of the calendar year following the later of the calendar year in which the Employee attains age 70 1/2, or the calendar year in which the Employee retires.
(b) 
The phrase "designated Beneficiary" Shall mean any individual designated by the Employee under this Plan according to its rules.
(c) 
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 Secretary of the Treasury).
(d) 
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. 
Direct rollovers.
(1) 
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 paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(2) 
This § 72-28D(2) 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 § 72-28D(1) 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 § 72-30B(1)(i). 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.
(3) 
For purposes of this section, the following definitions shall apply:
DIRECT ROLLOVER
Is a payment by the Plan to the eligible retirement plan specified by the distributee or the Plan Administrator, if the distributee does not make an election.
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.
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 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.
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).
(a) 
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.
[Amended 10-15-2019 by Ord. No. 609]
A. 
Vesting upon termination of employment. If a Participant shall have Employment terminated for any reason other than death or retirement, the Participant shall be vested in the value of the Participant's Account attributable to Employer Contributions based upon Years of Service of the Participant as follows:
Completed
Years of Service
Vested
Percentage
Less than 1
0%
1
20%
2
40%
3
60%
4
80%
5 or more
100%
A Participant shall always be 100% vested in the value of their Account attributable to Employee Contributions. Notwithstanding anything contained herein to the contrary, a Participant who shall attain Early or Normal Retirement Age or who shall die shall become 100% vested in the total value of their Account attributable to all sources including Employer Contributions. Participants employed full-time after June 1, 2019 and before December 31, 2019, shall have part-time years of service credited as Years of Service for vesting purposes only.
B. 
Forfeitures. The value of a Participant's Account which is not vested as of the termination of the Employment of the Participant shall be forfeited. Such forfeiture shall occur as of the Valuation Date which coincides with or immediately follows the date upon which the Participant incurs a one year Break In Service. Notwithstanding anything contained herein to the contrary, where the entire vested value of the Participant's Account is distributed prior to the date on which a one year Break In Service shall occur, the forfeiture described herein shall occur as of the Valuation Date coinciding with or immediately following the date of distribution to the Participant.
C. 
Application of forfeitures. Amounts forfeited by any Participant shall be applied in accordance with § 72-23E.
D. 
Distribution of vested benefits. In the case of each Participant who shall terminate Employment for any reason other than death prior to attainment of Early or Normal Retirement Age, distribution of the vested amount of their Account as determined pursuant to § 72-29A hereof shall occur upon termination of a Participant's Employment or within 60 days following the close of the Plan Year in which the Participant terminates Employment with the Employer. Notwithstanding anything in the Plan to the contrary, a Participant who shall terminate Employment as described herein may elect to receive a distribution of the vested amount of their Account as of any date, which is acceptable to the Plan Administrator.
(1) 
If the vested value of the Participant's Account is $1,000 or less, the Plan Administrator, in its sole discretion, may distribute the value of the Participant's Account at any time after termination of Employment occurs. If the vested value of the Participant's Account is greater than $1,000, the Plan Administrator, in its sole discretion, may segregate the vested value of the Account and such Account shall only be credited with the earnings, gains or losses attributable to such segregated Account and shall not share ratably in the earnings, gains or losses of the Pension Fund.
(2) 
A Participant who shall terminate Employment as described herein and whose vested value of their Account is greater than $1,000 may elect to receive a distribution of their Account balance as of any date which is acceptable to the Plan Administrator.
(3) 
If a vested terminated Participant shall die prior to distribution of the vested value of their Account, the value of the Account as of the date of death shall be distributed to the Beneficiary.
E. 
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 benefit earned and accrued under the Plan.
A. 
Plan administrator. The administration of the Plan and the operation of the Pension Fund shall be directed and supervised by the Council. The Council may appoint a committee or an individual to administer the provisions of the Plan. The Plan Administrator may delegate authority to act on its behalf to any persons it deems appropriate. If the Council does not appoint a Plan Administrator, the Council shall be the Plan Administrator.
B. 
Authority and duties of the plan administrator.
(1) 
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 Council'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:
(a) 
To construe this Plan;
(b) 
To determine all questions affecting the eligibility of any Employee to participate herein;
(c) 
To compute the amount and source of any benefit payable hereunder to any Participant or Beneficiary;
(d) 
To authorize any and all disbursements;
(e) 
To prescribe any procedure to be followed by any Participant and/or other person in filing any application or election;
(f) 
To prepare and distribute, in such manner as may be required by law or as the Plan Administrator deems appropriate, information explaining the Plan;
(g) 
To require from the Employer or any Participant such information as shall be necessary for the proper administration of the Plan;
(h) 
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
(i) 
To select an individual retirement plan provider (either the state or a federally regulated financial institution) and invest funds in connection with the rollover of mandatory distributions as described in § 72-28D(2).
(2) 
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 Council.
C. 
Plan administrator costs. The Plan Administrator shall serve without compensation for services unless otherwise agreed by the Council in writing. All reasonable expenses incident to the functioning of the Plan Administrator, including, but not limited to, fees of accountants, counsel, actuaries and other specialists and other costs of administering the Plan, may be paid from the Pension Fund upon approval by the Council to the extent permitted under applicable law and not otherwise paid by the Employer.
D. 
Hold harmless. No member of the Council nor the Plan Administrator nor any other person involved in the administration of the Plan shall be liable to any person on account of any act or failure to act which is taken or omitted to be taken in good faith in performing their respective duties under the terms of this Plan. To the extent permitted by law, the Employer shall, and hereby does agree to, indemnify and hold harmless each person and each successor and each of any such individual's heirs, executors and administrators, and the Plan Administrator's delegates and appointees (other than any person, bank, firm or corporation which is independent of the Employer and which renders services to the Plan for a fee) from any and all liability and expenses, including counsel fees, reasonably incurred in any action, suit or proceeding to which he is or may be made a party by reason of being or having been a member, delegate or appointee of the Plan Administrator, except in matters involving criminal liability, intentional or willful misconduct. If the Employer purchases insurance to cover claims of a nature described above, then there shall be no right of indemnification except to the extent of any deductible amount under the insurance coverage or to the extent of the amount the claims exceed the insured amount.
E. 
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.
F. 
Appeal procedure.
(1) 
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 90-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 Council of the initial determination. Such request for review must be made by notice to the Council within 60 days of receipt of such notice of denial. During such review, the Claimant or a duly authorized representative shall have the right to review any pertinent documents and to submit any issues or comments in writing. The Council shall, within 60 days after receipt of the notice requesting such review (or in special circumstances, such as where the Council in its sole discretion holds a hearing, within 120 days of receipt of such notice), submit its decision in writing to the person or persons whose claim has been denied. The decision shall be final, conclusive and binding on all parties, shall be written in a manner calculated to be understood by the Claimant and shall contain specific references to the pertinent Plan provisions on which the decision is based.
(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 Subsection F of the Plan has been exhausted.
A. 
Operation of the pension fund.
(1) 
The Council 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. 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.
(2) 
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.
(3) 
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.
B. 
Powers and duties of employer.
(1) 
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 under the Pennsylvania Fiduciaries Investment Act, 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 by the Pennsylvania Fiduciaries Investment Act, or as the same may be subsequently modified or amended, and the power to do all acts, take all proceedings and execute all rights and privileges, although not specifically mentioned herein, as the Employer may deem necessary to administer the Pension Fund.
(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 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.
A. 
Right to amend. The Employer shall have the right to amend the Plan, at any time, by adoption of the appropriate ordinance, and with respect to any provisions thereof all parties thereto or claiming any interest thereunder shall be bound thereby, provided, however, that no amendment shall revise the Account of a Participant determined as of the later of the date such amendment is adopted, or the date such amendment becomes effective, if such revised vested Account is less than that computed under the Plan without regard to such amendment. No amendment to the Plan, which provides for a benefit modification shall be made unless the cost estimate described in § 72-33D has been prepared and presented to the Employer in accordance with the Act.
B. 
Right to terminate. It is the present intention of the Employer to maintain the Plan indefinitely. Nevertheless the Employer reserves the right, at any time, to permanently discontinue further contributions to the Plan or to terminate the entire Plan.
C. 
Distribution upon termination. In the event of the termination or partial termination of the Plan, all amounts of benefits accrued by the affected Participant to the date of such termination, to the extent funded on such date, shall immediately become fully vested and nonforfeitable. In the event of termination of the Plan, the Employer shall direct either a) that the Accrued Benefits of Participants in the Plan continue to be held 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 such provisions, or b) that distribution be made to each Participant in an amount equal to the Account as of such date in such form as shall be approved by the Employer.
(1) 
If there are insufficient assets in the Pension Fund to provide for all vested Accounts as of the date of Plan termination, priority shall first be given to the distribution of any amounts attributable to Participant contributions before assets are applied to the distribution of vested benefits attributable to other sources hereunder.
D. 
Residual assets. If all liabilities under the Plan to Participants and others entitled to receive a benefit have been satisfied, and there remain any residual assets in the Pension Fund, the residual assets 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.
A. 
Allocation report. The Chief Administrative Officer shall complete or cause to be completed form PC-203A biennially for filing with the Public Employee Retirement Commission.
(1) 
Such biennial allocation 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 pursuant to the terms of the Act.
B. 
Administration expenses.
(1) 
The expenses attributable to the preparation of any form or allocation 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 expense for pension plan officials; provided, however, that the municipal officials of the Employer, in their fiduciary role, shall monitor the services provided to the Plan to ensure that the expenses are necessary, reasonable and benefit the pension plan and, further provided, that the Plan Administrator shall document all such expenses item by item, and where necessary, hour by hour.
C. 
Funding requirements. The Chief Administrative Officer shall annually determine the financial requirements of the Plan and shall determine the minimum 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 obligation of the Employer to the governing body of the Employer annually and shall certify the accuracy of such calculations and their conformance with the Act.
D. 
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 Employer a cost estimate of the proposed benefit plan modification. Such estimate shall be prepared by a qualified person as defined in the Act, which estimate shall disclose to the Employer the impact of the proposed benefit plan modification on the future financial requirements of the Plan and the future minimum obligation of the Employer with respect to the Plan.
A. 
Liability of insurer. No Insurer which may issue a Contract for the purposes of this Plan and Pension Fund shall be required to take or permit any action contrary to the provisions of said Contract nor shall the Insurer be required to look into the terms of this Plan and Pension Fund or question any action as authorized by the Plan Administrator in the application for a Contract or changes in an existing Contract.
B. 
Insurer not a party to the plan. The Insurer shall not be deemed to be a contracting party to this Pension Fund for any purposes nor shall it be responsible for the validity of the Pension Fund.
C. 
Actions taken by the plan administrator. Any and all forms or other documents as required by the Insurer, may be executed and signed by any one Plan Administrator. When so executed, any such document shall be accepted by the Insurer as conclusive evidence of any matters mentioned in this Plan and Pension Fund, and any such Insurer shall be fully protected in taking any action on the faith hereof and shall incur no liability or responsibility for doing so.
A. 
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 Employer, upon the receipt of satisfactory evidence that such Participant is so incapacitated and that another person or institution is maintaining him and that no guardian or committee has been appointed for him, may provide for such payment of pension benefits hereunder to such person or institution so maintaining him, and any such payments so made shall be deemed for every purpose to have been made to such Participant.
B. 
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 Employer, 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 Employer from insisting upon the commencement of estate administration proceedings and the delivery of any such benefits to a duly appointed executor or administrator.
C. 
Liability of officers of the employer. Subject to the provisions of the Act, no past, present or future officer of the Employer shall be personally liable to any Participant, Beneficiary or other person under any provision of the Plan, or any Policy issued pursuant thereto.
D. 
Assets in pension fund not property of individual participants. Nothing contained herein shall be deemed to give any Participant or his Beneficiary any interest in any specific property of the Pension Fund or any right except to receive such distributions as are expressly provided for in this Plan.
E. 
Employment rights not affected by the plan. 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 him without regard to the effect that such treatment might have upon him as a Participant in this Plan.
F. 
Pension fund for sole benefit of participants. The income and principal of the Pension Fund are for the sole use and benefit of the Participants of this Plan, and, to the extent permitted by law, shall be free, clear and discharged of and from and are not to be in any way liable for debts, contracts or agreements, now contracted or which may hereafter be contracted, and from all claims and liabilities now or hereafter incurred by any Participant or Beneficiary.
G. 
Meaning of certain words. As used herein the masculine gender shall include the feminine gender and the singular shall include the plural in all cases where such meaning would be appropriate. Headings of Articles and sections are inserted only for convenience of reference and are not to be considered in the construction of the Plan.
H. 
Information to be furnished by the employer. The Employer shall furnish to the Plan Administrator information in the Employer's possession as the Plan Administrator shall require from time to time to perform duties under the Plan.
I. 
Spendthrift. To the extent permitted by law, no payments to any person under any Contract, nor the right to receive such payments, nor any interest in this Plan, shall be subject to assignment, alienation, transfer or anticipation, either by voluntary or involuntary act of any Participant or Beneficiary or by operation of law, nor shall such payment right or interest be subject to the demand or claims of any such person's debts, obligations, or liabilities.
J. 
Tax exempt status of pension fund. The Employer intends that the Plan herein created shall qualify under the provisions of Code Section 401(a), as such provisions apply to qualified government plans and as an "Exempt Organization" within the meaning of Code Section 501(a), or under any comparable section of any future legislation which amends, supplements or supersedes said section.
(1) 
Nevertheless, all taxes of any and all kinds whatsoever that may be levied or assessed under the existing or future laws upon the Pension Fund or the income thereof and investment charges, shall be paid from the Pension Fund.