City of Warren, PA Article II Municipal employee Pension Plan

[Adopted 2-11-2002 by Ord. No. 1670 (Ch. 1, Part 4C, of the 1997 Code of Ordinances); amended in its entirety 10-17-2016 by Ord. No. 1880]

§ 81-14 Introduction and purpose.

A. Pursuant to Chapter 1, Part 8, Section D, of the City of Warren (hereinafter referred to as the "employer") Code of Ordinances (hereinafter referred to as "prior plan"), the City has maintained a pension plan for the benefit of employees other than policemen and firemen.

B. Effective October 17, 2016, except to the extent a different date is indicated in the text herein, the City desires to amend and restate the prior plan, in its entirety, the terms of which are hereinafter set forth. This document shall continue to be known as the City of Warren Municipal employee Pension Plan (hereinafter referred to as the "plan").

C. The purpose of this plan continues to be to provide retirement income for the benefit of its eligible employees and their beneficiaries, but limited to those who qualify in accordance with the terms and conditions of the plan as set forth herein.

D. The City intends that this plan, together with any related trust agreement, shall meet all the pertinent requirements for qualification of a governmental plan under the Internal Revenue Code of 1986, as amended, and the plan and trust agreement shall be interpreted, wherever possible, to comply with the applicable terms of said Code and all formal regulations and rulings pertinent to the plan and trust agreement issued thereunder. The City, as a home rule municipality, specifically elects not to be governed by the Third Class City Code, Act 317 of 1931, 53 P.S § 39340 et seq.[1]

[1] Editor's Note: Said 53 P.S. § 39340 et seq. was repealed 11-24-2015 by P.L. 242, No. 67, § 2(2), effective 1-25-2016. See now 11 Pa.C.S.A. § 14339 et seq.

E. Each retired participant who was receiving monthly benefit on October 16, 2016, under the prior plan shall receive payments on or after October 17, 2016, in accordance with the terms of prior plan.

F. Each terminated participant who terminated employment prior to October 17, 2016, with a vested interest in his accrued benefit under the prior plan and who had not commenced receiving his retirement benefit on such date will be eligible to receive retirement benefit on such benefit commencement date as set forth in the prior plan.

G. The provisions of this plan shall apply only to any participant who terminates employment on and after October 17, 2016.

§ 81-15 General definitions and definitions relative to determination of benefits.

As used in this article, the following terms shall have the meanings indicated:

ACCRUED BENEFIT PERCENTAGE

A fraction, the numerator of which represents the participant's years of continuous service earned to the date of determination, and the denominator of which represents the years of continuous service he could earn from his date of hire to his normal retirement date. A participant's accrued benefit percentage may never exceed the number one. The "accrued benefit" shall be the accrued benefit percentage multiplied by the participant's monthly normal retirement benefit, determined in accordance with § 81-17B. In no event shall the benefit be less than a benefit equal to the amount of the member contribution account or the actuarial equivalent thereof. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to actual payment thereof.

ACTUARIAL EQUIVALENT

Two forms of payment of equal actuarial present value on a specified date. The actuarial present value shall be determined by use of the UP-1984 Mortality Table and seven-percent interest unless otherwise provided herein.

ANNIVERSARY DATE

Each January 1 subsequent to October 17, 2016.

BENEFICIARY

The person specified by each participant on becoming a participant by way of written notice which designates his beneficiary or beneficiaries to the Plan Administrator. The participant's election of any such beneficiary or beneficiaries may be rescinded or changed without the consent of the beneficiary or beneficiaries, at any time provided the participant provides the Plan Administrator with written notice of the changed designation and complies with any procedures established by the Plan Administrator.

CITY

The City of Warren, located in Warren County, Pennsylvania.

COMPENSATION

The base salary of a participant, received or receivable during the participant's employment with the City as an eligible employee that shall be considered under the plan for purposes of calculating benefits and contributions and in applying any applicable limitations to such benefits or contributions. Base salary for this purpose includes pay received for an upgraded classification as well as shift premium. Base salary includes any nonqualified deferred compensation taxable under IRC § 457(f), but not § 457(a), in the year that the amount is taxable. For eligible deferred compensation plans as defined in IRC § 457(b), any deferral made with respect to an employee's compensation shall be considered compensation in the year of the deferral. Except as is specifically provided for with respect in the IRC § 457 plans above,[1] base salary shall exclude all overtime, bonuses, and other remuneration not paid in a fixed amount at periodic intervals. Where a participant continues to accrue continuous service pursuant to Subsection A(1), (2), (3) or (4) of the definition of "continuous service," "compensation" means the base salary that the participant would have received during his or her leave or absence.

CONTINUOUS SERVICE

A. For service rendered prior to October 17, 2016, shall be determined pursuant to the prior plan. "Continuous service" for service rendered on or after October 17, 2016, shall mean an employee's period of continuous, uninterrupted employment, which shall be calculated to the nearest month, with the employer. For purposes of this subsection, an employee's continuous service shall begin on such employee's entry date and shall not be deemed to have been interrupted by any of the following periods, but such continuous service shall not accrue during such periods:

(1) An authorized leave of absence expressly granted by the employer, not exceeding six months;

(2) An absence of an employee due to layoff, not exceeding three months;

(3) An absence of an employee for a period in excess of six months due to nonoccupational disability;

(4) An absence of an employee for a period in excess of six months due to occupational injury or disease.

B. Continuous service shall not be broken and shall continue to accumulate during any period of absence during which an employee serves in the Armed Forces of the United States of America, during a period of national emergency or through the operation or by reason of compulsory military service law of the United States of America, provided no reenlistment has occurred, shall be considered continuous service and shall not be deemed as interrupted, provided the employee returns to his employment with the employer at the time and under the circumstances required to give him reemployment rights under any federal or state law.

C. An employee's continuous service shall no longer continue to accrue if one or more of the following events occur:

(1) Voluntary termination;

(2) Discharge;

(3) A layoff for a period of three months;

(4) Failure to report for work upon the expiration of an authorized leave of absence;

(5) Failure to report to work for three consecutive work days without the employer's permission, unless the employee can furnish reasons satisfactory to the employer for his absence;

(6) Failure to report for work from layoff within five work days after being notified by the employer; or

(7) Absence due to nonoccupational disability for a period 24 months; provided, however, that an employee who is receiving a disability retirement benefit under this plan shall not break his continuous service, but his continuous service shall cease to accumulate during the period of his disability.

DEPENDENT CHILD

Any natural-born child, any legally adopted child, any stepchild, or any foster child of a participant which child is unmarried, has not yet attained age 18, and, in the case of a foster child, resides in such participant's household.

DISABILITY

A condition of physical or mental impairment caused by bodily injury or disease which prevents a participant from engaging in any occupation or employment for remuneration or profit, which continues for a period of at least five consecutive months and shall be deemed to be permanent and continuous during the remainder of the participant's lifetime in the opinion of a physician selected by the City pursuant to the procedure described in § 81-18B. No participant shall be deemed to be disabled for the purpose of this plan if his incapacity results from chronic alcoholism or addiction to narcotics, engagement in a felonious criminal enterprise, or resulted from an intentionally self-inflicted injury, or if such disability was incurred in the armed services of any country.

EARLY RETIREMENT DATE

The date when a participant retires or terminates employment with the employer if such date is prior to the participant's normal retirement date but on or after either:

A. The later of:

(1) Attainment of age 57; and

(2) Completion of 12 years of continuous service; or

B. The later of:

(1) Attainment of age 62; and

(2) Completion of five years of continuous service.

EFFECTIVE DATE

October 17, 2016.

ELIGIBLE EMPLOYEE

A regularly scheduled, full-time person employed by the City and who is not eligible to be an active participant under any other retirement plan of the City or for whom the City or the commonwealth makes contributions to produce retirement benefits under another retirement plan. Any employee employed as a temporary, probationary, special or part-time employee of the City shall not be considered an eligible employee for purposes of this plan.

ELIGIBLE SPOUSE

The spouse to whom a participant is married.

ENTRY DATE

The date of the employee's satisfaction of the eligibility requirements set forth in § 81-16.

FINAL AVERAGE MONTHLY COMPENSATION

The compensation of a participant related to and averaged over the participant's final 60 months of service.

FORMER PARTICIPANT

A person who had become a participant but who subsequently ceased to be an eligible employee on account of death or other termination of employment with the City.

MEMBER(S)

Former participant(s) who are entitled to current or future benefits from the plan and participant(s).

NORMAL RETIREMENT DATE

Other than incurring a disability, the date on which a participant attains age 62 or completes 10 years of continuous service, whichever is later.

PARTICIPANT

An eligible employee who has commenced participation in this plan in accordance with § 81-16 and who has not for any reason ceased to participate hereunder and who shall make such participant contributions as are required by the City.

PENSION FUND or FUND

The Municipal employee Pension Plan Fund administered under the terms of this plan and which shall include all money, property, investments, policies and contracts standing in the name of the plan.

YEAR OF CONTINUOUS SERVICE

Twelve calendar months of service where service at any time during a calendar month constitutes one whole month.

[1] Editor's Note: See 26 U.S.C. § 457.

§ 81-16 Eligibility.

A. Eligibility for participation. Each eligible employee shall be eligible to participate after completion of the application procedure described in Subsection B below and following completion of the probationary employment period.

B. Application for participation.

(1) Upon completion of the requirements for eligibility provided in Subsection A above, each eligible employee of the employer shall be notified by the Plan Administrator as to his eligibility and, as a prerequisite to participation, shall make written application on the form or forms provided by the Plan Administrator for that purpose within 30 days after such notice, and shall execute any application, take any physical examination and answer truthfully and fully all questions required by the Plan Administrator as to his eligibility at least 10 days before such eligibility date and, as a prerequisite to participation, shall properly complete the form or forms provided by the Plan Administrator.

(2) If a participant withdraws from the plan while an employee of the City, such former participant may reenter the plan at a later date, but may do so only once during his lifetime. If a participant reenters the plan, his pension benefits shall be based on his reentry date.

C. Reemployment. Upon the reemployment of any employee who had previously been employed by the employer and who has incurred a break in service, his prior continuous service shall be disregarded, and such employee shall be deemed a new employee for all purposes under the plan and in accordance with the definition of "continuous service" in § 81-15.

D. Late application. If the application of an eligible employee to whom notice of eligibility was given is not received by the Plan Administrator within the time specified in Subsection B, the employee's right to become a participant shall be suspended until the first of the month next following receipt of such application.

§ 81-17 Retirement benefit.

A. Entitlement. A former participant who has reached normal retirement date (a participant attains age 62 or completes 10 years of continuous service, whichever is later) on or before the date on which he became a former participant shall become entitled to the retirement benefit described in Subsection B below.

B. Retirement benefit. A former participant who satisfies the conditions for entitlement described in the foregoing subsection shall be entitled to a monthly amount payable for his life, which amount (referred to hereinafter as the "retirement benefit" or "normal retirement benefit") is derived from the following formula:

[(a x b) + (c x d)] x e

	Where, with respect to said former participant:
		a	=	accrual rate of 1.2%
		b	=	final average monthly compensation
		c	=	accrual rate of 1%
		d	=	final average monthly compensation in excess of $550
		e	=	years of continuous service, which pursuant to the definition of "continuous service" in § 81-15 begins after satisfaction of eligibility requirements set forth in § 81-16

C. Normal form. The normal form of retirement benefit hereunder shall be a single life annuity.

D. Early retirement. If a participant shall retire on an early retirement date with completion of 12 or more years of continuous service, he shall be entitled to receive, upon making an election therefor, either:

(1) A deferred retirement benefit commencing at normal retirement date equal to the participant's accrued benefit determined as of his early retirement date; or

(2) An immediate retirement benefit commencing on his early retirement date equal to an immediate benefit of the participant's accrued benefit at the time of early retirement reduced 6.7% for each year that early retirement date precedes normal retirement. If the period between the early retirement date and normal retirement date is not an integral number of years, the percentage to be applied shall be the percentage for the next higher integral number of years increased by proportionate part (of the nearest fully completed day based upon a three-hundred-sixty-five-day year) of the difference between that percentage and the percentage for the next lower integral number of years.

E. Late Retirement. Any participant may continue to work after his normal retirement date, but in such case the participant shall be entitled to receive, in lieu of his normal monthly retirement benefit, a late monthly retirement benefit payable under normal form of payment described in Subsection B and commencing on the date of his actual retirement. The amount of such participant's late monthly benefit shall be the greater of:

(1) The amount of the participant's normal monthly retirement benefit which would otherwise have been payable to the participant on his normal retirement date but computed on his final average monthly compensation determined as of his late retirement date and applied on the basis of the years of continuous service he completed on his late retirement date; or

(2) The actuarial equivalent of the participant's normal monthly retirement benefit which he would have received at his normal retirement date.

§ 81-18 Disability benefit.

A. Disability retirement.

(1) A participant shall be eligible to retire on a disability benefit if the City shall have determined that the participant has incurred a disability. A participant's disability retirement benefit shall be equal to his accrued benefit determined as of the first day of the month immediately preceding the last day on which he was actively employed by the employer.

(2) The employer may require proof of continued disability but not more frequently than once in any six-month period. If any participant shall refuse to submit to a medical examination or furnish proof of his continued disability upon the request of the employer, his disability payments shall cease.

(3) A participant who has elected to vest his pension and remains an employee of the City shall be entitled to the disability provisions of this section, provided the former participant has not reached his 62nd birthday. Disability benefits shall be calculated as of the date of vesting.

B. Commencement of benefit.

(1) Disability benefits shall commence after the five-month waiting period specified in the definition of "disability" in § 81-15, provided the participant satisfies all necessary conditions for eligibility for disability benefits hereunder and shall continue so long as he is disabled. Such benefits shall immediately cease, however, if prior to the participant's normal retirement date, the employer determines that the participant is no longer eligible to receive such benefits. A participant who ceases to be eligible for disability retirement benefits may be eligible to receive a deferred vested benefit or an early retirement benefit, depending upon whether he had satisfied the eligibility requirements for the same. For any individual who is reemployed subsequent to receiving disability benefits hereunder, such participant's continuous service shall be determined as of the date when his employment terminated due to disability pursuant to the definition of "continuous service" in § 81-15.

(2) In no event shall a disability benefit be payable unless the participant is deemed to be disabled by a physician appointed by the City. In the event that a conflict arises between the City's physician and the employee's physician, the issue shall be submitted to an impartial physician. The impartial physician shall be selected from a list of three physicians whose names shall be supplied by the local medical society. Each party shall alternately strike a name from the list until only one remains. The flipping of a coin shall be the process used in determining which party shall strike the first name. The physician whose name remains shall be the impartial physician who shall render the final and binding decision on both parties.

§ 81-19 Death benefit.

A. Death benefit.

(1) If a participant dies prior to the date when his retirement benefits commence, a death benefit equal to a refund of the participant's member contributions account shall be payable to the participant's beneficiary except that if a participant dies after achieving normal retirement date but prior to retirement and is still employed by the City, his beneficiary shall be entitled to the benefit pursuant to the form selected by the participant.

(2) Upon being notified by the Plan Administrator of the death of a participant prior to retirement, the Plan Administrator shall obtain the necessary proofs of death and comply with all other requirements of the plan. The death benefit will be paid to the last-named beneficiary on file and thereupon the employer and the Plan Administrator shall be completely discharged of all duties, obligations, responsibilities and liabilities under this plan with respect to the rights, interests and benefits offered to such participant and his beneficiaries under this agreement.

B. Retirement death benefit. If a former participant dies subsequent to the date when his retirement benefits commence, no death benefits shall be payable under this section, and the death benefit payable, if any, shall be limited to that which is payable pursuant to the form of benefit payment in force for such participant at the time his death occurs. However, in no event will the former participant (including any amounts paid to a beneficiary) receive less than the member contributions account.

C. Pre-retirement death benefit. Upon the death of a participant after 10 years of service, but prior to his actual retirement date, a monthly benefit shall be payable to the participant's eligible spouse equal to half of the member's accrued benefit as of the date of his death. Death benefits payable shall commence on the first day of the month coincident or next following the member's death and shall cease with the last payment due immediately preceding the spouse's death or remarriage, whichever occurs first. A member's eligible spouse is the person married to and living within the same household with such member at his time of death. If benefits are paid under this section, no other benefits shall be paid from the plan on account of the death of the participant, including, but not limited to, a return of contributions under Subsection A.

§ 81-20 Contributions and reversions.

A. Employer contributions. The employer shall contribute an amount sufficient to maintain the Pension Fund pursuant to § 81-25F hereof.

B. employee contributions. During each month, each participant shall make employee contributions as may be set in advance by Council by ordinance or resolution from time to time. Such contributions shall be referred to as "member contributions." The employer shall deduct the set rate from the participant's compensation at each pay period and remit all contributions to the plan fund monthly to be held and administered in accordance with the terms of the plan. The contribution rate for all participants in the plan as of the effective date of this article shall be set at 2% of the base salary. This rate shall continue in effect until amended by ordinance or resolution of Council.

C. Crediting of interest. Interest shall accrue to member contributions at the rate of 3% per annum (compound interest). Such interest shall be credited from the midpoint of the year (or part of the year) when made through the date of the participant's termination of eligible employment. The member contributions together with the applicable interest shall constitute the member contribution account.

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 § 81-27.

§ 81-21 Termination of employment.

A. Rights of terminated employees. If a participant shall cease to be an employee except as otherwise hereinbefore provided, his interest and rights under the plan shall be limited to those contained in the following subsections of this section.

B. Refund of accumulated contributions. If a participant whose employment with the employer has been terminated for any reason other than death prior to this early retirement date, and he is neither eligible for a pension under the plan, nor has he completed at least five years of continuous service, such participant shall be entitled to receive a refund of his accumulated contribution account. Upon receipt of such accumulated contribution account, said participant and his or her beneficiary shall not be entitled to any further payments from the plan.

C. Vested benefits. If a participant's employment terminates for a reason other than retirement or disability and he has completed at least five years of continuous service, he shall be entitled to a deferred vested benefit equal to his vested percentage of his accrued benefit determined as of the date when his employment terminates pursuant to the vesting schedule provided below:

	Years of Continuous Service	Vested Percentage
	Less than 5	0%
	5 but less than 6	50%
	6 but less than 7	60%
	7 but less than 8	70%
	8 but less than 9	80%
	9 but less than 10	90%
	10 or more	100%

D. Payment of vested benefits. Payment of vested benefits under § 81-21C shall be in lieu of a refund of accumulated contribution account under § 81-21B. Payments of a participant's vested benefit shall be made by the employer, at the date which would have been such participant's normal retirement date had he continued his employment. Notwithstanding the preceding, a participant with an entitlement to a vested benefit may elect to commence receiving such benefit as of the date when he would have been eligible for an early retirement benefit as provided in the definition of "early retirement date" in § 81-15 had he continued employment with the employer; provided, however, that any payment of a vested accrued benefit as of a participant's early retirement date shall be subject to the reduction for early payment set forth in § 81-17D hereof. A participant eligible to receive his vested benefit may be permitted to receive such benefit in any form of payment authorized for payment of retirement benefits under the provisions of § 81-22B hereof. The Plan Administrator shall, after consulting with the participant, and subject to the provisions of § 81-22C, determine the time and form of any distribution of vested benefits hereunder in a nondiscriminatory manner and not contrary to any laws or regulations which may govern such distributions.

E. One-hundred-percent vesting. Notwithstanding the preceding, a participant, who is not already one-hundred-percent vested shall become one-hundred-percent vested (to the extent the plan is funded) upon his attaining normal retirement date, upon the plan's termination, or upon a complete discontinuance of contributions to the plan. A participant shall always be one-hundred-percent vested in his accumulated contribution account.

F. Forfeiture upon death.

(1) A participant who terminates his employment with the employer at a time when he is not vested in any portion of his accrued benefit derived from employer contributions shall cease to be a participant hereunder and shall not be entitled to any benefits under the plan derived from employer contributions.

(2) Notwithstanding the preceding, in any case where a participant has made employee contributions to the plan, the current value of the member contribution account shall be refunded to the beneficiary of the participant, if the participant dies prior to receipt of his vested benefit, as provided under § 81-19B.

(3) Payment of a participant's vested retirement benefit pursuant to § 81-21C hereof depends upon his continued survival to the date of his actual retirement on either an early retirement date or normal retirement date hereunder.

§ 81-22 Payment and form of benefits.

A. Payment of benefits. No benefit shall be paid under the plan until an application therefor shall be made to the Administrator. Each application for a benefit shall be in writing on a form provided by the Administrator and shall be made to the Administrator. The Administrator may require any applicant for a benefit to furnish to it such information deemed necessary.

B. Forms of benefit payment.

(1) The automatic form of payment of retirement benefits shall be a single life annuity ("normal form") unless a participant elects to receive his benefits in some other form as provided herein. If a participant who retires under § 81-17A, D or E elects not to receive his benefits in the normal form of payment, he may, by giving written notice to the Administrator at least 90 days prior to his actual retirement date, elect to receive payment of his benefit in one of the following actuarially equivalent forms of payment under the plan:

(a) A reduced retirement benefit payable to the retired participant during his lifetime with the guarantee that not less than 60, 120 or 180 monthly retirement benefit payments shall be continued to the participant's designated beneficiary; or

(b) A reduced retirement benefit payable to the retired participant during his lifetime with benefit payments continuing in the amount of 50%, 66 2/3%, 75%, or 100% to the participant's designated beneficiary upon his death. If such option is elected 90 days prior to the participant's actual retirement date, such benefit shall become payable in the normal form in the event the participant's designated beneficiary shall die within the ninety-day period prior to the participant's actual retirement date. Should the beneficiary die after the participant shall begin to receive the normal or late retirement benefit, no alternative beneficiary may be named.

(2) The election of the above options may be limited by the applicable terms of Internal Revenue Code Section 401(a)(9) and the regulations promulgated thereunder based upon the relative ages of the participant and any nonspouse beneficiary elected.[1]

[1] Editor's Note: See 26 U.S.C. § 401(a)(9).

(3) The provisions of this section shall be subject to the limitation that no participant shall elect an interest option or an installment distribution to be paid over a period which shall exceed the greater of:

(a) The life of the participant;

(b) The life expectancy of the participant;

(c) The joint lives of the participant and his beneficiary; or

(d) The joint life expectancy of the participant and his beneficiary.

C. Commencement of benefits.

(1) A participant may elect to commence receiving distribution of his retirement benefits as of his normal retirement date, early retirement date, late retirement date or disability retirement date, whichever is applicable, or may defer such payments to a date not later than the required date for commencement of benefits determined under § 81-26I hereof. If a participant elects immediate commencement of his benefit, payments shall commence as of the first of the month following his retirement date.

(2) Unless the participant otherwise elects, payment of his 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 tenth anniversary of the year in which the participant commenced participation in the plan; or

(c) The date when the participant terminates his service with the employer.

(3) If a participant dies subsequent to the date when his retirement benefits commence, no death benefits shall be payable under this section, and the death benefit payable, if any, shall be limited to that which is payable pursuant to the form of benefit payment in force for such participant at the time his death occurs.

§ 81-22.1 New hires pension plan for those union employees hired after January 1, 2018 and nonunion employees hired after January 1, 2019.

[Added 5-21-2018 by Ord. No. 1907; amended 3-18-2019 by Ord. No. 1916; 2-17-2025 by Ord. No. 1985]

A. For full-time nonuniformed, union employees hired after January 1, 2018, and nonuniformed, nonunion employees hired after January 1, 2019, pensions shall consist of the minimum required benefits under the Third Class City Code Pension Funds for employees Other Than Policemen and City-Paid Firemen, 53 P.S. § 39341 - 39361,[1] as reflected as follows in Subsections C through J ("New Hires Plan" or "plan").

[1] Editor's Note: Former 53 P.S. §§ 39341 through 39361 were repealed by P.L. 242, No. 67. See now 11 Pa.C.S.A. § 14339 et seq.

B. The benefits in the New Hires Plan shall be the exclusive pension benefits for any full-time nonuniformed, union City employees hired after January 1, 2018, and nonuniformed, nonunion City employees hired after January 1, 2019. The New Hires Plan incorporates as a part thereof the provisions of Ordinance 1880 (and any successor thereof) set forth in §§ 81-23 through 81-29 of this article, which mainly detail the administrative, tax and miscellaneous provisions of the plan.

C. Definitions. The following words and phrases, as used in the New Hires Plan, shall have the meaning set forth in this subsection, unless a different meaning is otherwise clearly required by the context:

ACCRUED BENEFIT

As of any given date, the participant's benefit determined under Subsection F(2), calculated on the basis of the participant's average compensation determined as of such date and multiplied by a fraction, the numerator of which shall be the participant's completed years of credited service as of such determination date and the denominator of which shall be 20. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one.

(1) In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 81-26E. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof and no accrued benefits shall be paid unless the participant satisfies all requirements hereunder for entitlement to receive such benefit.

ACCUMULATED CONTRIBUTIONS

The total amount contributed by any participant to this plan or its predecessor by way of payroll deduction or otherwise. There shall be no interest credited to this amount. For purposes of this section, participant contributions shall include contributions "picked up" by the employer in accordance with Code Section 414(h)(2).

ACTUARIAL EQUIVALENT

Two forms of payments of equal actuarial present value on a specified date. The actuarial present value shall be determined by use of the UP-1984 Mortality Table and 7% interest unless otherwise provided herein.

AUTHORIZED LEAVE OF ABSENCE

Any leave of absence granted in writing by the employer for reasons including, but not limited to, accident, sickness, pregnancy or temporary disability, education, training, jury duty or such other reasons as may necessitate authorized leave from active employment.

AVERAGE COMPENSATION

The average of the monthly compensation of the participant during the last 12 months of employment immediately preceding the date of termination of the participant's employment, or the average of the monthly compensation of the participant during the highest five calendar years of employment, if such average is higher.

BENEFICIARY

The person or legal entity designated by the participant to receive any applicable benefits under the plan payable upon the occurrence of the death of the participant. In the event that a participant does not designate a beneficiary or the beneficiary does not survive the participant, the beneficiary shall be surviving spouse, or if there is no surviving spouse, the issue, per stirpes, or if there is no surviving issue, the estate; but if no personal representative has been appointed, to those persons who would be entitled to the estate under the intestacy laws of the Commonwealth of Pennsylvania if the participant had died intestate and a resident of Pennsylvania.

BREAK IN SERVICE

Any period of time after employment has commenced during which an employee fails to maintain a continuous period of employment.

COMMONWEALTH

The Commonwealth of Pennsylvania.

COMPENSATION

The base salary or hourly wages paid to an employee by the employer with respect to personal services rendered as an employee. No extra or additional forms of remuneration shall be included in compensation, such as overtime, bonuses, longevity, health insurance buyouts, amounts paid as allowance or reimbursement for expenses, payments made by the employer to this or any other employee welfare or benefit plans on behalf of its employee, and amounts paid as lump sums for accumulated sick time or other unused leave. Compensation shall include the amount of any participant contributions picked up under Code Section 414(h)(2). Compensation shall be limited on an annual basis for purposes of this plan to the amount specified in accordance with Code Section 401(a)(17) for government plans.

CONTRACT or POLICY

Any insurance or annuity contract issued by an insurance company in accordance with the requirements of the plan.

COUNCIL

The City Council of the City of Warren, Pennsylvania.

DISABILITY RETIREMENT DATE

The first day of the month coincident with or next following the date when a participant who has completed at least 10 years of credited service terminates employment due to a total and permanent disability.

EMPLOYEE

Any person hired after January 1, 2018 who is employed by the employer on a full-time basis, who is not a police officer or firefighter, who is a member of the IBEW bargaining unit, and who is not otherwise participating in a pension plan or retirement program sponsored by the employer which recognized credit for the same period of service to the employer. "employee" shall also mean any nonunion person hired after January 1, 2019 who is employed by the employer on a full-time basis, who is not a police officer or firefighter, and who is not otherwise participating in a pension plan or retirement program sponsored by the employer which recognized credit for the same period of service to the employer.

EMPLOYER

The City of Warren, Pennsylvania, a political subdivision of the commonwealth.

EMPLOYMENT

The period of time for which an employee is directly or indirectly compensated or entitled to compensation by the employer for the performance of duties as an employee. Employment may include, for the purpose of determining years of credited service, an authorized leave of absence to the extent it is specifically granted in writing by the Council and permitted pursuant to applicable law.

(1) Employment shall also include any period of qualified military service as determined under the requirements of Chapter 43 of Title 38, United States Code, provided that the participant returns to employment following such period of qualified military service, and the participant makes payment to the plan in an amount equal to the employee contributions that would otherwise have been paid to the plan during such period of qualified military service. The amount of employee contributions shall be based upon an estimate of the compensation that would have been paid to the participant during such period of qualified military services as determined by the average compensation paid to the participant during the 12 months immediately preceding the period of qualified military service. The amount of employee contributions calculated must be paid into the plan before the end of the period that begins on the date of reemployment and ends on the earlier of the date that ends the period that has a duration of three times the period of qualified military service or the date that is five years after the date of reemployment.

INSURER or INSURANCE COMPANY

Any legal reserve life insurance company licensed to do business in one or more state of the United States.

LATE RETIREMENT DATE

The first day of the month coincident with or next following the date when a participant retires which is subsequent to the participant's normal retirement date.

MINIMUM MUNICIPAL OBLIGATION

The minimum annual obligation of the municipality as determined and certified by the Chief Administrative Officer pursuant to the provisions of the Act.

NORMAL RETIREMENT AGE

The later of attainment of age 60 or completion of 20 years of credited service.

NORMAL RETIREMENT DATE

The first day of the month coincident with or next following the date when an employee attains normal retirement age.

NOTICE or ELECTION

A written document prepared in the form specified by the plan administrator and delivered as follows: if such notice or election is to be provided by the employer or plan administrator, it shall be mailed in a properly addressed envelope, postage prepaid, to the last known address of the person entitled thereto, on or before the last day of the specified notice or election period; or, if such notice or election is to be provided to the employer or the plan administrator, it must be received by the recipient on or before the last day of the specified notice or election period.

PARTICIPANT

Any employee who has commenced participation in this plan in accordance with Subsection D, and has not for any reason ceased to participate hereunder.

PENSION FUND

The assets of the plan which shall be accounted for separately from the assets of any other plans maintained by the employer and which shall be administered under the supervision of the employer in accordance with the terms of the plan.

PLAN

The City of Warren Municipal employee Pension Plan.

RESTATEMENT DATE

January 1, 2018, the effective date of this New Hires Plan.

TOTAL AND PERMANENT DISABILITY

A condition of physical or mental impairment due to which a participant is unable to perform any customary duties of employment with the employer. The plan administrator shall determine whether a participant has incurred a total and permanent disability based upon the results of an examination and sworn statement of three physicians designated by the plan administrator.

YEAR OF CREDITED SERVICE

Any consecutive twelve-month period during which a participant is continuously employed in employment. Each year of credited service shall be determined from the date on which participation in the plan shall commence and annual anniversaries thereof and/or the date that reemployment of a participant shall commence and anniversaries thereof, provided that the employee has authorized the payment of employee contributions to the plan.

D. Participation in the plan.

(1) Eligibility for participation. Each employee shall be eligible to participate in the plan following completion of the probationary employment period provided that all administrative prerequisites, such as authorizing the payment of employee contributions via payroll deduction, have been fulfilled.

(2) Participation requirements. Each participant hereunder shall be required to make employee contributions to the plan, as provided in Subsection E(1) hereof, and shall execute and complete any enrollment or application forms as required by the plan administrator.

(3) Reemployment. Each employee who had previously been employed by the employer and incurred a break in service shall, upon reemployment, have prior years of credited service recredited for all purposes under the plan upon repayment to the plan of any amount of accumulated contributions, which had been distributed pursuant to Subsection J(2).

(4) Change in status. A participant who remains in the service of the employer but ceases to be an employee eligible for participation hereunder, or ceases or fails to make any employee contributions which are required as a condition of participation hereunder, shall have no further benefit accruals occur until the individual again qualifies as a participant hereunder eligible to resume such accrual of benefits.

(5) Leave of absence. During any leave of absence that is not an authorized leave of absence, a participant shall be deemed an inactive participant and shall not be given credit for years of credited service nor continue to accrue any benefits hereunder if the employee is not reemployed by the expiration of such leave of absence, participation in the plan shall cease on the date on which such leave of absence commenced. During any authorized leave of absence, a participant shall continue to receive credit for years of credited service to the extent such credit is specifically granted in writing by Council and is permitted pursuant to applicable law provided that all required employee contributions are paid to the plan as provided in Subsection E(1)(b).

(6) Recordkeeping. The employer shall furnish the administrator with such information as will aid the administrator in the administration of the plan. Such information shall include all pertinent data on employees for purposes of determining their eligibility to participate in this plan.

E. Contributions.

(1) employee contributions.

(a) As a condition of participation hereunder, each participant shall be required to have employee contributions deducted from the participant's compensation and contributed to the plan at a rate of 3.5% of the participant's compensation on which social security taxes are payable. The employee contributions shall be at a rate of 5% of the participant's compensation in excess of that on which social security taxes are payable.

(b) To the extent feasible, all mandatory employee contributions designated as such made 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 Internal Revenue Code of 1986, as amended. 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 pickup; 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.

(2) Employer contributions. The chief administrative officer, in accordance with the Act, shall annually determine the minimum municipal obligation of the employer. The employer shall pay into the pension fund, by annual appropriations or otherwise, the contributions necessary to satisfy the minimum municipal obligation. Notwithstanding the foregoing, nothing contained herein shall preclude the employer from contributing an amount in excess of the minimum municipal obligation.

(3) State aid. General municipal pension system state aid, or any other amount of state aid received by the employer in accordance with the Act from the commonwealth may be deposited into the pension fund governed by this plan and shall be used to reduce the amount of the minimum municipal obligation of the employer.

(4) Gifts. The Council is authorized to take by gift, grant, devise or otherwise any money or property, real or personal, for the benefit of the plan and cause the same to be held as a part of the pension fund. The care, management, investment and disposal of such amounts shall be vested in the Council or its delegate, the plan administrator, subject to the direction of the donor and not inconsistent with applicable laws and the terms of the plan.

(5) No reversion to the employer. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, except that contribution made by the employer may be returned to the employer if the contribution was made due to a mistake of fact and the contribution is returned within one year of the mistaken payment of the contribution or the plan is terminated, as provided in § 81-27.

F. Retirement benefits.

(1) Normal retirement. Each participant shall be entitled to a normal retirement benefit after retirement on or after attainment of normal retirement age.

(2) Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection F(1) hereof shall receive a benefit commencing on the participant's normal retirement date and paid in the normal form as provided in Subsection I(1) hereof. The monthly amount of the normal retirement benefit shall be equal to 50% of the participant's average compensation. Such benefit shall be offset by 40% of a participant's full social security old-age insurance benefit calculated in accordance with the provisions of the Federal Social Security Act in effect on the date of the participant's termination of employment, except that such amount shall be included only upon attainment of the age at which the employee would be eligible to receive full social security old-age insurance benefits, or at actual retirement if later, and, in determining such eligibility and such amounts, only compensation for services actually rendered by the employee and covered by the plan shall be included.

(3) Late retirement. A participant may continue in employment beyond the attainment of normal retirement age subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of Subsection F(1) continues in employment beyond the participant's normal retirement date, there shall be no retirement benefits paid until employment has ceased and the participant's retirement actually commences. The retirement benefit of a participant described in this Subsection F(3) shall be calculated in accordance with Subsection F(2) on the basis of average compensation as of the participant's actual retirement and shall commence on the participant's late retirement date.

(4) Application for benefit. A participant must complete and execute an application for benefit on a form and in the manner prescribed by the plan administrator and deliver the said application to the plan administrator at least 30 days prior to the date on which benefit payments are to commence. Notwithstanding anything contained herein to the contrary, no retirement benefit payments or any other benefit payments shall be due or payable on or before the first day of the month coincident with or next following the date that is 30 days after the date the plan administrator receives the application for benefit.

(5) Limitation of liability. Nothing contained herein shall obligate the employer, the plan administrator, any fiduciary or any agent or representative of any of the foregoing to provide any retirement or other benefit to any participant or beneficiary which cannot be provided from the assets available in the pension fund, whether such benefits are in pay status or otherwise payable under the terms of the plan. The Council retains the right to amend or terminate this plan consistent with applicable law at any time, with or without cause and whether or not such action directly or indirectly results in the suspension, reduction or termination of any benefit payable under the plan or in pay status, and without liability to any person for any such action.

G. Disability retirement.

(1) Disability retirement. A participant who has completed at least 10 years of credited service and who incurs a total and permanent disability before attaining age 60 shall be entitled to a disability retirement benefit as of the disability retirement date.

(2) Disability retirement benefit. A participant who shall be entitled to a disability retirement benefit under Subsection G(1) shall receive a benefit commencing on the participant's disability retirement date and paid monthly. The amount of the disability retirement benefit shall be equal to the benefit set forth in Subsection F(2) (without application of the Social Security offset) determined as of the disability retirement date.

(3) Payment of disability benefit. Payment of a disability retirement benefit shall be made monthly commencing on the participant's disability retirement date and ending on the earlier of the date of death of the participant or the date that the participant's total and permanent disability shall cease. If the participant's total and permanent disability shall cease prior to the attainment of the participant's normal retirement age, the participant shall be deemed to have terminated employment as of the disability retirement date for purposes of this plan unless the participant shall resume active employment within three months following the date on which such total and permanent disability ceased. A participant who fails to resume active employment after total and permanent disability ceases shall not be entitled to a distribution of accumulated contributions pursuant to Subsection J(2) to the extent that the total amount of disability retirement benefits paid exceeds the value of the participant's accumulated contributions as of the disability retirement date, and shall not be entitled to any other benefits under the plan as a result of the accumulation of any years of credited service as of the disability retirement date.

(4) Verification of disability. The plan administrator shall determine whether a participant shall have incurred a total and permanent disability. Proof of total and permanent disability shall consist of the sworn statement of three practicing physicians, designated by the plan administrator, that the participant has incurred a total and permanent disability. If the plan administrator shall determine that a participant who is totally and permanently disabled has recovered sufficiently to resume active employment or if a participant refuses to undergo a medical examination as directed by the plan administrator (such a medical examination may not be required more frequently than once in any given twelve-month period), the payment of disability retirement benefits shall cease.

(5) Cessation of disability. A participant who is receiving payment of disability retirement benefits under this plan must notify the plan administrator of any change in condition which may cause the participant's entitlement to receipt of such benefits to cease. If a participant fails to provide prompt notice to the plan administrator of any such change in status and thereby continues to receive payment of benefits hereunder to which the participant is not entitled, the plan administrator may take whatever action is necessary and permitted under applicable law to recover any amount of improper payments, including offsetting such amounts against any future payment of retirement or other benefits under the plan or legal action. The plan administrator may also recover the costs of any such action.

H. Death benefits.

(1) Death of participant. Upon the occurrence of the death of a participant, there shall be benefits payable in accord with the following subsections of this Subsection H.

(2) Survivor benefit. There shall be no survivor benefit payable upon the death of a participant.

(3) Death prior to retirement. If a participant shall die prior to the commencement of the payment of any retirement or other benefits under this plan, the beneficiary shall be entitled to receive a distribution of the participant's accumulated contributions determined as of the date of death of the participant.

(4) Death after retirement. There shall be no benefits payable upon the death of a participant after commencement of retirement or other benefits under this plan, except to the extent that the total benefits paid to the participant are less than the participant's accumulated contributions at the time of retirement, in which case the balance of the accumulated contributions shall be paid to the participant's beneficiary.

I. Payment of benefits.

(1) Normal form. The normal form for payment of retirement benefits shall be annuity for the life of the participant paid in equal monthly installments.

(2) Commencement of benefits. A participant may make an election to commence receiving distribution of retirement benefits as of the participant's normal retirement date or late retirement date, whichever is applicable, or may defer such payments to a date not later than the required date for commencement of benefits determined under § 81-26.

(3) Nonduplication of benefit. To avoid any duplication of benefits, a participant who is receiving a retirement benefit under this plan and who shall resume employment shall have benefit payments suspended until the first day of the month coincident with or next following the date such employment shall cease. Upon resumption of benefit payments, such participant shall receive the greater of the amount of the suspended benefit or the amount of benefit based upon average compensation and years of credited service as of the date that such period of resumed employment shall cease.

(4) Personal right of participant. The right to receive any benefits under this plan is a personal right of the participant and shall expire upon the death of the participant. No heir, legatee, devisee, beneficiary, assignee or other person claiming by or through a participant shall have any interest in any benefits hereunder unless clearly and expressly so provided by the terms of this plan. A participant's election, failure to make an election or revocation of an election hereunder shall be final and binding on all persons.

J. Termination of employment.

(1) Rights to terminated employees. A participant who shall cease to be an employee except as otherwise hereinbefore provided shall have all interest and rights under this plan limited to those contained in the following subsections of this Subsection J.

(2) Distribution of accumulated contributions. A participant whose employment with the employer shall terminate for any reason other than death or total and permanent disability prior to attainment of normal retirement age shall be entitled to receive a distribution of accumulated contributions. Upon receipt of such accumulated contributions, said participant and beneficiary shall not be entitled to any further payments from the plan.

(3) Vesting.

(a) If a participant who is a member of the bargaining unit represented by IBEW and thereby subject to the memorandum of understanding executed by the employer and IBEW effective January 1, 2025, terminates employment for a reason other than retirement for disability and has completed at least five years of credited service, he shall be entitled to a deferred vested benefit equal to the vested percentage of his accrued benefit determined as of the date when his employment terminates pursuant the vesting schedule provided below.

Years of Continuous Service	Vested Percentage
Less than 5	0%
5 but less than 6	50%
6 but less than 7	60%
7 but less than 8	70%
8 but less than 9	80%
9 but less than 10	90%
10 or more	100%

(b) If a participant who is not a member of the IBEW terminates employment for a reason other than retirement or disability and has completed at least 12 years of continuous service, he shall be entitled to a deferred vested benefit equal to the vested percentage of his accrued benefit determined as of the date when his employment terminates.

(c) A deferred vested benefit as provided in this Subsection J(3), regardless of a participant's membership in the IBEW, shall only be available to participants who terminate employment for a reason other than retirement or disability on or after January 1, 2025.

(4) Payment of vested benefits. Payment of vested benefits under Subsection J(3) shall be in lieu of a refund of accumulated contributions under Subsection J(2). Payment by the employer of a participant's vested benefits shall commence as of the first day of the month coincident with or next following the participant's normal retirement date, as defined in Subsection C, had he or she continued in employment. A participant eligible to receive a vested benefit shall be paid in the normal form of retirement benefits as set forth in Subsection I(1).

(5) Application for deferred vested benefit. Receipt of a deferred vested benefit under this section shall be conditioned on a participant giving written notice of their election to receive a deferred vested benefit in lieu of a return of contributions under Subsection J(2) within 90 days following the date that the participant's employment terminates.

§ 81-23 Definitions relative to administrative matters.

As used in this article, the following terms shall have the meanings indicated:

ACT 205

The Municipal Pension Plan Funding Standard and Recovery Act, Act of December 18, 1984, P.L. 1005, No. 205, as amended, 53 P.S. § 895.101 et seq.

ACTUARY

A person who has at least five years of actuarial experience with public pension plans and who is either a member of the American Academy of Actuaries or enrolled as an actuary pursuant to the Federal employee Retirement Income Security Act of 1974. The actuary shall be engaged by the administrator.

ADMINISTRATOR or PLAN ADMINISTRATOR

The Chief Administrative Officer. If none is so appointed, it shall mean Council. The Administrator serves pursuant to the discretion of Council and any decision or determination of said Administrator may be reviewed by Council with the right reserved by Council to overrule, amend, modify, alter or change any decisions or determinations of said Administrator in such manner and to such extent as may seem proper to Council.

CHIEF ADMINISTRATIVE OFFICER

The individual, designated by Council, who shall have the power and authority to perform all acts and to execute, acknowledge, and deliver all instruments necessary to implement and effectuate the purpose of the plan. Where Council fails to designate a Chief Administrative Officer, the Chief Administrative Officer shall be the City Manager.

CITY

The City of Warren and any successor which shall maintain this plan, and any predecessor which has maintained this plan. The City is situated in Warren County in the Commonwealth of Pennsylvania.

CODE

The Internal Revenue Code of 1986, as amended or replaced from time to time.

COMMITTEE or RETIREMENT COMMITTEE

Shall, in general, be advisory in nature and shall have such powers as are specifically delegated by Council in writing. The Committee shall consist of five persons who shall be as follows: one member shall be an employee of the City covered by this plan; one member shall be a member of Council; one member shall be a retired member of the plan; one member shall be a registered elector of the City; and the fifth member shall be the Finance Officer of the City. The members of the Committee shall be appointed by Council. The members of the Retirement Committee shall serve at the pleasure of Council and may be removed at any time with or without cause by Council. Any vacancies in the Retirement Committee arising by resignation, death, removal or otherwise shall be filled by Council.

COUNCIL

The Council of the City of Warren in which rests the responsibility for appointing the Chief Administrative Officer and for deciding and approving any matter of finance that affects, or could affect, the plan, its members, or beneficiaries. All powers relative to the operation and administration of the plan shall specifically reside with the Council unless delegated pursuant to this plan document.

PLAN

The current instrument, including all amendments hereto.

PLAN YEAR

The twelve-month period beginning on January 1 and ending on December 31 of each year.

POLICY or CONTRACT

A retirement annuity or a retirement income endowment policy (or a combination of both), or any other form of insurance contract or policy which shall be deemed appropriate with accordance with the provisions of Act 205 and P.L. 1804, as amended (53 P.S. §§ 895.101 through 895.803).

THIRD CLASS CITY CODE

The Act of June 23, 1931, P.L. 932, No. 317, 53 P.S. 39340.[1]

TRUST AGREEMENT

The legal agreement entered into between the City and a fiduciary that shall provide specifically for all objectives, powers, and responsibilities concerning the management of the Trust's assets.

TRUST or FUND

The fund administered and established under the terms of the plan, which fund shall include all money, property, investments, policies, and contracts standing in the name of the plan.

[1] Editor's Note: Said 53 P.S. § 39340 was repealed 11-24-2015 by P.L. 242, No. 67, § 2(2), effective 1-25-2016. See now 11 Pa.C.S.A. § 14340.

§ 81-24 Administration.

A. Authority and duties of the Administrator.

(1) The Administrator shall have full power and authority to do whatever, in its judgment, shall be reasonably necessary to effectuate the proper administration and operation of the plan. The interpretation or construction placed upon any term or provision of the plan by the Administrator, or any action of the Administrator taken in good faith, shall be final and conclusive upon all parties hereto. The authority of the Administrator shall include, but shall not be limited to:

(a) Construction of the plan;

(b) Determination of all questions affecting the eligibility of any employee of the City to participate herein;

(c) Computation of the amount and the source of any benefit payable hereunder to any participant or beneficiary, as applicable;

(d) Authorization of any and all disbursements of benefits;

(e) Prescription of any procedure to be followed by any participant or other person, as applicable, in filing any application or election hereunder;

(f) Preparation and distribution of information explaining the plan as may be required by law or as the Administrator deems appropriate;

(g) Requisition of information necessary from the City or any participant for the proper administration of the plan and to obtain the execution of such forms helpful to protect the plan; and

(h) Appointment and retention of any individual to assist in the administration of the plan, including such legal, clerical, accounting, and actuarial services as it deems desirable.

(2) The Administrator shall have no authority to add to, subtract from, or modify the terms of the plan or to 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 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.

B. Hold harmless. To the full extent permitted by law, no member of the Committee, the Council, the Chief Administrative Officer, the 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 City shall, and hereby does agree to, indemnify and hold harmless the Administrator and each successor and each individual's heirs, executors and administrators, and the Administrator's delegates and appointees (other than any person or entity independent of the City who renders services to the plan for a fee) from any and all liability and expenses, including counsel fees, reasonably incurred in any action, suit, or proceeding to which he is or may be made a party by reason of being or having been the Administrator or a delegate or appointee of the Administrator, except in matters involving criminal liability, or intentional or willful misconduct. If the City purchases insurance to cover claims of a nature described above, then no right of indemnification shall exist 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.

C. Appeal procedure. Any person whose application for benefits is denied, who questions the amount or timing of any benefit paid, or who has some other claim arising under the plan (the "claimant") shall first seek a resolution of such claim under the procedure hereinafter set forth.

(1) The claimant shall first file a notice of claim with the Administrator, which notice shall fully describe the nature of the claim. The Administrator shall review the claim and make an initial determination approving or denying the claim and shall mail notice of the determination within 90 days (or such other period as may be established by applicable law) from the time the application is received. Such ninety-day period may be extended by the Administrator, if special circumstances so require, for up to 90 additional days by the Administrator's delivering notice of such extension to the claimant within the first ninety-day period. Any notice hereunder shall, if it is a notice of denial, set forth:

(a) The specific provisions of the plan on which the denial is based;

(b) An explanation of additional material or information, if any becomes necessary to perfect such claim, and a statement of why such material or information is necessary; and

(c) An explanation of the review procedure.

(2) 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 written notice to the Council within 60 days of mailing of the 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 and shall contain specific references to the pertinent plan provisions on which the decision is based.

(3) Any notice of claim questioning the amount of a benefit in pay status shall be filed by the claimant with the Administrator within 90 days following the date of the first payment which would be adjusted if the claim is granted, unless the Administrator allows a later filing for good cause shown.

(4) 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.

§ 81-25 Provisions relative to funding under Act 205.

A. Actuarial valuations.

(1) The actuary to the plan shall perform an actuarial valuation at least biennially (unless the City is applying or has applied for supplemental state assistance pursuant to Act 205, for purposes of this section, whereupon actuarial valuation reports must be made annually).

(2) Each biennial actuarial valuation report shall be made as of the beginning of each plan year occurring in an odd-numbered calendar year.

(3) Such actuarial valuation shall be prepared and certified by an approved actuary, as such term is defined in Act 205.

(4) The expenses attributable to the preparation of any actuarial valuation report or investigation required by Act 205 or any other expense which is permissible under the terms of Act 205 and which are directly associated with administering the plan shall be an allowable administrative expense payable from the assets of the trust. Such allowable expenses shall include, but shall not be limited to, the following:

(a) Investment costs associated with obtaining authorized investments and investment management fees;

(b) Accounting expenses;

(c) Premiums for insurance coverage on fund assets;

(d) Reasonable and necessary counsel fees incurred for advice or to defend the Fund; and

(e) Legitimate travel and education expenses for officials of the plan.

(5) The Council, in its fiduciary role, shall monitor the services provided to the plan to ensure that the expenses are necessary, reasonable and benefit the plan; and provided, further, that the Administrator shall document all such expenses item by item and, where necessary, hour by hour.

B. Duties of the Chief Administrative Officer.

(1) The actuarial reports described above shall be prepared and filed under the supervision of the Chief Administrative Officer.

(2) The Chief Administrative Officer of the plan shall determine the financial requirements of the plan on the basis of the most recent actuarial report and shall determine the minimum obligation of the City with respect to funding the plan for a given plan year. The Chief Administrative Officer shall submit the financial requirements of the plan and the minimum obligation of the City to the Council annually and shall certify the accuracy of such calculations and their conformance with Act 205.

C. Modification of benefits. Prior to the adoption of any provision that modifies a benefit provided hereunder, the Chief Administrative Officer shall provide to the Council a cost estimate of the proposed modification. Such estimate shall be prepared by an approved actuary, as such term is defined in Act 205, which estimate shall disclose to the Council the impact of the proposed modification on the future financial requirements of the plan and the future minimum obligation of the City with respect to the plan.

D. Utilization of state aid. Payments of general municipal state aid or any other amount of state aid received pursuant to Act 205 from the Commonwealth of Pennsylvania which are received by the City and deposited into the fund shall be used as follows:

(1) To reduce the amortization of the unfunded liability, or after such liability has been funded;

(2) To apply against the annual obligation of the City, or to the extent that the payments may be in excess of such obligation;

(3) To reduce member contributions hereunder.

E. Member contributions. See § 81-20.

F. City contributions. The remainder of the annual contributions required under provisions of Act 205, as determined by the actuary to the plan in accordance with Act 205, shall become the obligation of the City and shall be paid into the fund by annual appropriations.

§ 81-26 Applicable provisions of Internal Revenue Code.

A. Explanation. In recognition of the fact that the plan must comply in form, content, and operation with certain provisions of the Code, and in spite of the limited applicability of such provisions to the normal operation of the plan, the following subsections of this section detail the limitations and parameters applicable to maintaining favorable tax treatment of funds contributed to the plan under federal law.

B. Definitions. The following definitions apply for purposes of this section only:

LEASED EMPLOYEE

Effective as of January 1, 1997, any person (other than an employee of the recipient) who pursuant to an agreement between the recipient and any other person ("leasing organization") has performed services for the recipient [or for the recipient and related persons determined in accordance with Code Section 414(n)(6)][1] on a substantially full-time basis for a period of at least one year, and such services are performed under primary direction or control by the recipient.

LIMITATION YEAR

The plan year.

[1] Editor's Note: For Internal Revenue Service regulations, See 26 U.S.C. § 1 et seq.

C. Leased employees and independent contractors. Leased employees and independent contractors are not eligible to participate in this plan. Any person whom the employer does not regard as being an employee shall not be eligible to participate.

D. Limited on compensation. Compensation is subject to the limitation under Code Section 401(a)(17), which is $230,000 for the plan year beginning in 2008. The limit is automatically adjusted periodically, without formal amendment, for changes in the law and cost-of-living adjustments under Code Section 401(a)(17).

E. Maximum annual benefit.

(1) General rule. Except as otherwise provided, this plan shall at all times comply with the provisions of Code Section 415 and the regulations thereunder, the terms of which are specifically incorporated herein by reference. If a benefit payable to a participant under this plan would otherwise exceed the limit under Code Section 415, the benefit will be reduced to the maximum permissible benefit.

(2) Effective date. If there is more than one permissible effective date for any required change in the Code Section 415(b) provisions, then the change shall be effective as of the latest permissible effective date; however, any adjustment in the dollar limit under Code Section 415(b)(1)(A), whether required or permissible, shall take effect automatically as of the earliest permissible effective date. The "applicable mortality table" in Rev. Rul. 2001-62 became effective as of December 31, 2002. For the purposes of Code Section 415(b)(1)(A), effective as of January 1, 2008, the "applicable mortality table" and "applicable interest rate" are found in Rev. Rul. 2007-67. The "applicable mortality table" in Rev. Rul. 2001-62 was effective from December 31, 2002, through December 31, 2007. The "applicable mortality table" and "applicable interest rate" shall be automatically adjusted for changes in the law and IRS announcements.

[Amended 5-21-2018 by Ord. No. 1907]

(3) No reduction in accrued benefits. Notwithstanding the above, no change in the limits under this section shall reduce the benefit of any participant.

(4) Multiple plans. If a participant also participates in one or more other plans that are required to be aggregated with this plan for purposes of determining the limits under Code Section 415(b) or (e), and if the aggregated benefits would otherwise exceed the limit under Code Section 415(b) or (e), then benefits shall be reduced first under this plan. [Historical Note: Code Section 415(e) applied for Limitation Years beginning prior to 2000.][2]

[2] Editor's Note: Said 26 U.S.C. § 415(e) was repealed Pub. L. 104-188, title I, § 1452(a), Aug. 20, 1996, 110 Stat, 1816.

(5) Mandatory contributions. Participant contributions are annual additions, and any benefit attributable to participant contributions is not included in the benefit subject to the limits of Code Section 415(b) or (e). This subsection does not apply to contributions "picked up" in accordance with Code Section 414(h).

(6) Permissive service credit. Effective as of January 1, 1998, if a participant makes a purchase of permissive service credit [within the meaning of Code Section 415(n)] under the plan, the benefit derived from the contributions made to purchase the service credit shall be treated as part of the benefit subject to the limitations under this section.

(7) To the extent applicable, the above provisions and limitations shall be subject to Code Section 415(b)(2)(G).

F. Limit on annual additions.

(1) Annual additions. Except as otherwise provided, annual additions (which include participant contributions) under this plan shall at all times comply with the provisions of Code Section 415(c) and the regulations thereunder, the terms of which are specifically incorporated herein by reference. If an annual addition would otherwise exceed the limit under Code Section 415(c), the excess annual addition will be eliminated in accordance with methods permitted under Rev. Proc. 2008-50 (Rev. Proc. 2006-27 prior to 2009) or its successor.

(2) Multiple plans. If a participant also participates in one or more other plans that are required to be aggregated with this plan for purposes of determining the limits under Code Section 415(c), and if the annual additions would otherwise exceed the limit under Code Section 415(c), annual additions will first be reduced under the other plan. If there is more than one other plan, annual additions will first be reduced under the plan with the greatest amount of annual additions.

(3) Effective date. The limits under which Code Section 415(c) are adjusted periodically in accordance with changes in the law or cost-of-living adjustments without the need for a plan amendment. If there is more than one permissible effective date for any required change relating to Code Section 415(c), then the change shall be effective as of the earliest permissible effective date.

(4) 415(c) compensation. For the purposes of this section, "compensation" includes only those items specified in Treas. Reg. § 1.415(c)-2(b)1 or (2) and excludes all items listed in Treas. Reg. § 1.415(c)-2(c), the terms of which are specifically incorporated herein by reference. Effective as of January 1, 2009, to the extent required by the Heroes Earning Assistance Relief Tax Act of 2008 (HEART Act), differential wage payments shall be included in compensation for the purposes of applying the limits on annual additions under IRC Section 415(c). This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

[Amended 5-21-2018 by Ord. No. 1907; 3-18-2019 by Ord. No. 1916]

G. Direct rollovers.

(1) Effective as of January 1, 1993, if a participant, a spousal beneficiary, or an alternate payee (who is a spouse or former spouse of a participant) is entitled (under other provisions of this plan) to receive an "eligible rollover distribution" of at least $200, the distributee may elect that the Plan Administrator transfer all or part (provided that the part is at least $500) to any "eligible retirement plan" capable of accepting such a transfer.

(2) For purposes of this section, the following definitions shall apply:

(a) An "eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include i) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of 10 years or more; ii) any distribution to the extent such distribution is required under Code Section 401(a)(9); iii) the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities), and iv) effective as of January 1, 2002, any hardship distribution. Effective as of January 1, 2002, clause (iii) does not apply to any after-tax participant contributions that are paid to an individual retirement account or annuity described in Code Section 408(a) or (b) or to a qualified defined contribution plan described in Code Section 401(a) or 403(a) or effective January 1, 2007, a 403(b) annuity contract that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. Effective as of January 1, 2007 an "eligible rollover distribution" shall include any eligible rollover distribution (including distributions containing after tax contributions) that is transferred in a direct trustee-to-trustee transfer to a 403(b) annuity contract or a qualified trust under Code Section 401(a) that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.

(b) An "eligible retirement plan" is an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(a), or a qualified trust described in Code Section 401(a) that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to a surviving spouse, prior to January 1, 2002, an eligible retirement plan was an individual retirement account or individual retirement annuity. Effective as of January 1, 2002, an "eligible retirement plan" includes an annuity contract described in Code Section 403(b) and an eligible plan under Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan. Effective January 1, 2008, an eligible retirement plan shall include a Roth IRA as that term is defined in Code Section 408A(b) that agrees to separately account for amounts transferred from this plan.

(c) A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p)(11), are distributees with regard to the interest of the spouse or former spouse.

(d) Effective as of January 1, 2002, an employee may, in accordance with Code Section 457(e)(17), make a trustee-to-trustee transfer from an eligible deferred compensation plan [as defined in Code Section 457(b)] to this plan for the purpose of purchasing service credit (to the extent that such purchases are permitted under the terms of the plan) or repaying a cashout of contributions refunded under the plan.

H. Nonspouse beneficiaries. Effective as of January 1, 2007, if a beneficiary who is not a surviving spouse is entitled to receive what would otherwise be an "eligible rollover distribution," the beneficiary may, in accordance with Code Section 402(c)(11), make a trustee-to-trustee transfer of that amount to an IRA or individual retirement annuity (other than an endowment contract), provided that:

(1) The transfer is made not later than the end of the fourth year after the year of the participant's death; and

(2) The account or annuity to which the amount is transferred is treated as an inherited IRA or individual retirement annuity in accordance with Code Section 408(d)(3)(C).

I. Minimum required distributions.

(1) Notwithstanding any provision in this plan to the contrary, the distribution of a participant's benefits shall be made in accordance with the requirements and conditions of and shall otherwise comply with Code Section 401(a)(9). For purposes of complying with Code Section 401(a)(9), life expectancies shall be determined in accordance with the 1987 proposed regulations prior to January 1, 2003, and with the final regulations [§ 1.401(a)(9)-1 through § 1.401(a)(9)-9] on or after January 1, 2003.

(2) Effective as of January 1, 1997, distribution of a participant's benefits shall begin not later than April 1 of the calendar year following the later of:

(a) The calendar year in which the participant attains age 70 1/2; or

(b) The calendar year in which the participant retires. Distributions must be made over a period not exceeding the life of the participant or the joint lives of a participant and his beneficiary.

(c) Distributions to a participant and his beneficiaries shall only be made in accordance with the incidental death benefit requirements of Code Section 401(a)(9)(G) and the regulations thereunder.

(d) This section does not authorize the payment of any benefit in any form not permitted under another provision of the plan.

J. Approved domestic relations orders. Upon approval by the Plan Administrator of a domestic relations order as an "approved domestic relations order," all rights and benefits provided to a participant in this plan shall be subject to the rights afforded an "alternate payee" pursuant to an approved domestic relations order to the extent provided by the laws of Pennsylvania. In no event shall a domestic relations order be approved which expands the rights and benefits otherwise available to the participant under the plan.

K. Credit for qualified military service. Effective as of December 12, 1994, notwithstanding any provision of this plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance Code Section 414(u).

L. Vesting upon plan termination. Upon the termination of this plan, or complete discontinuance of contributions [within the meaning of pre-ERISA Code Section 401(a)(7)] to this plan, each employee as of the date of such termination or discontinuance shall become vested to the extent that the plan is funded.

M. Consent for lump-sum distributions. Effective January 1, 2006, notwithstanding any other provision of the plan, any distribution to a participant made prior to the earlier of age 62 or normal retirement age of an amount in excess of $1,000 that is an eligible rollover distribution as set forth in the plan and the Code shall be made only upon consent of the participant.

N. Pickup contributions. As set forth in Resolution No. 2885 effective April 1, 2012:

(1) The proper officers of the City and their delegates are authorized to take any and all steps necessary to establish and implement a "pickup" contribution program in accordance with the requirements of Section 414(h)(2) of the Internal Revenue Code of 1986, as amended.

(2) Any such program shall provide that all mandatory employee contributions designated as such made on or after the effective date of this provision shall be paid or "picked up" by the City and thereafter treated as employer contributions for federal income taxation purposes consistent with Section 414(h)(2) of the Internal Revenue Code of 1986, as amended. Affected employees shall not have the option of choosing to receive the picked-up contributions directly in lieu of having them contributed to the plan. employee contributions made to the plan prior to the effective date of this provision shall not be affected.

(3) Notwithstanding the foregoing, contributions so picked up shall continue to be treated as mandatory employee contributions for all purposes of state and local law in the same manner and to the same extent as mandatory employee contributions made prior to the effective date of this provision, 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.

(4) The proper employees of the City are directed to take all such actions as may be necessary or beneficial in order to implement this provision, and all prior actions, if any, of the City in conjunction with the 414(h)(2) matter are hereby confirmed and approved.

(5) The City's establishment and implementation of a Section 414(h) pickup program shall not result in any increase in the City's rate of contribution to the plan.

O. PPA and HEART Acts:

(1) This plan is intended to comply with the Pension Protection Act of 2006 (PPA) and the Heroes Earnings Assistance Relief Tax Act (HEART Act). Notwithstanding anything in this plan to the contrary, this plan shall be interpreted so as to comply with the applicable required provisions of the PPA and the HEART Act.

(2) Effective for participant deaths occurring while performing qualified military service [as defined in Code Section 414(u)] on or after January 1, 2007, the plan will provide retirement benefits and service credit to the extent required by the HEART Act.

P. Windsor Case. Effective June 23, 2013, the terms "spouse," "husband," "wife," "widow" and "widower" shall include individuals married to persons of the same sex if the individuals are legally married under state law. Also, where the term "widow" appears, it shall be read to include "widower."

[Added 5-21-2018 by Ord. No. 1907; amended 3-18-2019 by Ord. No. 1916]

Q. Full vesting at normal retirement age. A participant's normal retirement benefit shall be 100% vested upon attainment of his normal retirement date.

[Added 5-21-2018 by Ord. No. 1907; amended 3-18-2019 by Ord. No. 1916]

R. Exclusive benefit. The plan is maintained for the exclusive benefit of its participants and beneficiaries.

[Added 5-21-2018 by Ord. No. 1907; amended 3-18-2019 by Ord. No. 1916]

§ 81-27 Amendment and termination of pension plan or pension fund.

A. Amendment. Council may amend this plan at any time or from time to time by ordinance or resolution, provided that:

(1) No amendment shall deprive any member or beneficiary, as applicable, of any of the benefits to which he is entitled under this plan pursuant to state law;

(2) No amendment shall provide for the use of funds or assets held under this plan other than for the benefit of members or alternate payees, and no funds contributed to the plan or assets of the plan shall, except as provided below, ever revert to or be used or enjoyed by the City except as set forth below; and

(3) No amendment to the plan which provides for a modification of one or more benefits shall be made unless an estimate of cost has been prepared and presented to the Council.

B. Termination of the plan. It is the present intention of employer to maintain this plan indefinitely. Nevertheless, Council shall have the power to terminate this plan in its entirety at any time (subject to any limitations or conditions contained in state law) by an instrument in writing executed in the name of the City.

C. Automatic termination of contributions. Subject to the provisions of Act 205 governing financially distressed municipalities, the liability of the City to make contributions to the Pension Fund shall automatically terminate upon liquidation or dissolution of the City, upon its adjudication as bankrupt or upon the making of a general assignment for the benefit of its creditors.

D. Distribution upon termination. All assets attributable to the terminated plan shall be distributed and disposed of in accordance with the provisions of applicable law and the terms of any instrument adopted by the City which effects such termination.

E. Residual assets. If all liabilities to vested members and any others entitled to receive a benefit under the terms of the plan have been satisfied and there remain any residual assets in the Pension Fund, such residual assets remaining shall be returned to the City insofar as such return does not contravene any provision of law, and any remaining balance, in excess of employer contributions and related earnings, shall be returned to the commonwealth.

F. Exclusive benefit rule. In the event of the discontinuance and termination of the plan as provided herein, the City shall dispose of the Pension Fund in accordance with the terms of the plan and applicable law; at no time prior to the satisfaction of all liabilities under the plan shall any part of the corpus or income of the Pension Fund, after deducting any administrative or other expenses properly chargeable to the Pension Fund, be used for or diverted to purposes other than for the exclusive benefit of the members in the plan, their beneficiaries or their estates.

§ 81-28 The Pension Fund.

A. Operation of the Pension Fund.

(1) 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 of Pennsylvania and of this plan and any amendment thereto.

(2) The Pension Fund shall be used to pay benefits as provided in the plan and, to the extent not paid directly by the City, to pay the expenses of administering the plan pursuant to authorization by the City.

(3) The City 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 City 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.

(4) The Pension Fund will consist of all funds held by the City under the plan, including contributions made pursuant to the provisions hereof and the investments, reinvestment 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 City has exclusive authority and discretion to manage and control the Pension Fund assets. The City may, however, appoint a trustee, custodian and/or investment manager, at its sole discretion.

B. Powers and duties of the City. With respect to the Pension Fund, the City shall have the following powers, rights and duties, in addition to those vested in it elsewhere in the plan or by law, unless such duties are delegated:

(1) To retain in cash so much of the Pension Fund as it deems advisable and to deposit any cash so retained in any bank or similar financial institution (including any such institution which may be appointed to serve as trustee hereunder), and shall include the right to hold funds on a temporary basis in accounts or investments that do not bear interest.

(2) To invest and reinvest the principal and income of the fund and keep said fund invested, without distinction between principal and income, in securities which are at the time permitted investments for fiduciaries under the Pennsylvania Fiduciaries Investment Act, or as the same may be subsequently modified or amended.

(3) To sell property held in the fund at either public or private sale for cash or on credit at such times as it may deem appropriate; to exchange such property; to grant options for the purchase or exchange thereof.

(4) To consent to and participate in any plan of reorganization, consolidation, merger, extension or other similar plan affecting property held in the fund; to consent to any contract, lease, mortgage, purchase, sale or other action by any corporation pursuant to any such plan.

(5) To exercise all conversion and subscription rights pertaining to property held in the fund.

(6) To exercise all voting rights with respect to property held in the fund and in connection therewith to grant proxies, discretionary or otherwise.

(7) To place money at any time in a deposit bank deemed to be appropriate for the purposes of this plan no matter where situated, including, in those cases where a bank has been appointed to serve as trustee hereunder, the savings department of its own commercial bank.

(8) In addition to the foregoing powers, the City 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 City may deem necessary to administer the Pension Fund.

(9) To maintain and invest the assets of this plan on a collective and commingled basis with the assets of other pension plans maintained by the City, provided that the assets of each respective plan shall be accounted for and administered separately.

(10) To invest the assets of the Pension Fund in any collective commingled trust fund maintained by a bank or trust company, including any bank or trust company which may act as a trustee hereunder or to invest in a group contract or other funding arrangement. In this connection, the commingling of the assets of this plan with assets of other eligible, participating plans through such a medium is hereby specifically authorized. Any assets of the plan which may be so added to such collective trusts shall be subject to all of the provisions of the applicable declaration of trust, as amended from time to time, which declaration, if required by its terms or by applicable law, is hereby adopted as part of the plan, to the extent of the participation in such collective or commingled trust fund by the plan.

(11) To make any payment or distribution required or advisable to carry out the provisions of the plan, provided that if a trustee is appointed by the City, such trustee shall make such distribution only at the direction of the City.

(12) To compromise, contest, arbitrate, enforce or abandon claims and demands with respect to the plan.

(13) To retain any funds or property subject to any dispute without liability for the payment of interest thereon, and to decline to make payment or delivery thereof until final adjudication is made by a court of competent jurisdiction.

(14) To pay, and to deduct from and charge against the Pension Fund, any taxes which may be imposed thereon, whether with respect to the income, property or transfer thereof, or upon or with respect to the interest of any person therein, which the fund is required to pay; to contest, in its discretion, the validity or amount of any tax, assessment, claim or demand which may be levied or made against or in respect of the Pension Fund, the income, property or transfer thereof, or in any matter or thing connected therewith.

(15) To appoint any persons or firms (including but not limited to accountants, investment advisors, counsel, actuaries, physicians, appraisers, consultants, professional plan administrators and other specialists), or otherwise act to secure specialized advice or assistance, as it deems necessary or desirable in connection with the management of the Fund, to the extent not prohibited by applicable law, the City shall be entitled to rely conclusively upon and shall be fully protected in any action or omission taken by it in good faith reliance upon the advice or opinion of such persons or firms, provided such persons or firms were prudently chosen by the City, taking into account the interests of the members and beneficiaries and with due regard to the ability of the persons or firms to perform their assigned functions.

(16) To retain the services of one or more persons or firms for the management of (including the power to acquire and dispose of) all or any part of the fund assets, provided that each of such persons or firms is registered as an investment advisor under the Investment Advisors Act of 1940, is a bank (as defined in that act), or is an insurance company qualified to manage, acquire or dispose of pension trust assets under the laws of more than one state; in such event, the employer shall follow the directions of such investment manager or managers with respect to the acquisition and disposition of fund assets but shall not be liable for the acts nor omissions of such investment manager or managers, nor shall it be under any obligation to review or otherwise manage any fund assets which are subject to the management of such investment manager or managers.

(17) If the City appoints a trustee, the trustee shall not be permitted to retain such an investment manager except with the express written consent of the City.

C. Common investments. The City shall not be required to make separate investments for individual members or to maintain separate investments for each member's account, but may invest contributions and any profits or gains therefrom in common investments.

D. Compensation and expenses of appointed trustee. If a trustee is appointed, the trustee shall be entitled to such reasonable compensation as shall from time to time be agreed upon by the City and the trustee, unless such compensation is prohibited by law. Such compensation, and all expenses reasonably incurred by the trustee in carrying out his functions, shall constitute a charge upon the City or the Pension Fund, which may be executed at any time after 30 days' written notice to the City. The City shall be under no obligation to pay such costs and expenses, and in the event of its failure to do so, the trustee shall be entitled to pay the same, or to reimburse themselves for the payment thereof, from the Pension Fund.

E. Periodic accounting. If a trustee is appointed, the Pension Fund shall be evaluated annually, or at more frequent intervals, by the trustee and a written accounting rendered as of each fiscal year end of the fund, and as of the effective date of any removal or resignation of the trustee, and such additional dates as requested by the City, showing the condition of the Fund and all receipts, disbursements and other transactions effected by the trustee during the period covered by the accounting, based on fair market values prevailing as of such date.

F. Value of the Pension Fund. All determinations as to the value of the assets of the Pension Fund, and as to the amount of the liabilities thereof, shall be made by the City or its appointed trustee, whose decisions shall be final and conclusive and binding on all parties hereto, the members, spouses, children, survivors and beneficiaries and their estates. In making any such determination, the City or trustee shall be entitled to seek and rely upon the opinion of or any information furnished by brokers, appraisers and other experts, and shall also be entitled to rely upon reports as to sales and quotations, both on security exchanges and otherwise as contained in newspapers and in financial publications.

§ 81-29 Miscellaneous provisions.

A. Plan not a contract of employment. No employee of the City, nor anyone else, shall have any rights whatsoever against the City or the Administrator as a result of this plan, except those rights expressly granted to them hereunder. Nothing herein shall be construed to give any employee the right to remain an employee of the City.

B. Gender and number. For purposes of the plan and wherever plainly necessitated by the person or context, the masculine shall be read for the feminine, and the singular shall be read for the plural.

C. Expenses. To the extent permitted by state law, all expenses related to the operation and administration of the fund and plan shall be paid from the assets of the fund.

D. Construction. The validity of the plan or any of its provisions shall be determined and construed pursuant to the laws of the Commonwealth of Pennsylvania, the federal government, and the agencies thereof.

E. Severability of provisions. In the event that any provision, section, subsection, paragraph, sentence, clause, or other part of the plan shall be held to be invalid, such invalidity shall not affect or impair any remaining provisions, sections, subsections, paragraphs, sentences, clauses, or other parts of the plan.

F. Headings. The headings and subheadings employed within the current document have been inserted for convenience of reference and are to be ignored in the construction of the provisions hereof.

G. Incapacity of member or beneficiary. If any member shall be physically or mentally incapable of receiving or acknowledging receipt of any payment of benefits hereunder, the Administrator, upon the receipt of satisfactory evidence that such member is incapacitated to the aforesaid extent and that another person or institution maintains him, may provide for such payment of benefits hereunder to such person or the institution maintaining him, and any such payments so made shall be deemed for every purpose to have been made to such member. Any benefits that become payable hereunder to any individual that was a minor may be paid to the spouse, or they may be paid to the guardian or committee of the individual who the Administrator feels will apply the benefits to the care and support of the individual. The payment of benefits to any such guardian or committee in accordance with the directions of the Administrator shall be a full release and discharge of the Administrator, the City and the Trustee for the amounts so paid.

H. Protective clause relative to administration. Subject to the provisions of all laws applicable hereto, and unless otherwise specifically required, no past, present, or future officer of the City shall be personally liable to any participant, beneficiary, or other person under any provision of the plan.

I. Sole benefit. The income and principal of the plan are for the sole use and benefit of the members covered hereunder and, to the extent permitted by law, shall be free, clear and not in any way liable for debts, contracts or agreements and from all claims and liabilities now or hereafter incurred by any member, beneficiary, or alternate payee.

J. Benefits payable from other plans. The pension or retirement benefits payable hereunder for any month shall be reduced by any pension benefits from pension plans heretofore established by a private organization or association for the members, but only to the extent that the commonwealth or the City shall have contributed to such pension plan monies raised by taxation. If the Commonwealth or the City shall have contributed monies raised by taxation to a pension plan established by a private organization or association for the members, the pension benefits shall be used to reduce or offset pension or retirement benefits paid hereunder only by that proportion of the total pensions payable by virtue of the assets attributable to contributions of monies raised by taxation bears to total assets of said pension plan.

K. Reversion of contributions. If a contribution is made by the City by mistake of fact, the contribution may be returned to the City within one year after the payment of the contribution.

L. Spendthrift and assignment. The benefits under the plan shall not be subject to attachment, execution, levy, garnishment or other legal process and shall be payable only to the member, his survivors or his designated beneficiary, or alternate payee and shall not be subject to assignment or transfer except as provided in § 81-26J hereof.

M. Heading. Any headings or subheadings in this plan are inserted for convenience of reference only and are to be ignored in the construction of any provisions hereunder.

N. Errors. A misstatement in the age, sex, length of service, the date of employment or birth, or compensation of the participant, or any other such matter, shall be corrected when it becomes known that any such misstatement of fact has occurred.