[Adopted 11-19-2003 by Ord. No. 550]
The President and Secretary of the Board of Commissioners are hereby authorized to execute a trust agreement with the Delaware Valley Municipal Management Association (DVMMA) to establish a retiree medical plan administered by DVMMA as a voluntary employees beneficiary association (VEBA) under Section 501(c)(9) of the Internal Revenue Code of 1986, as amended ("the code"). A copy of the trust agreement, including the Lower Moreland Township Retiree Medical Plan, is attached hereto as Exhibit A, and incorporated herein by reference. The trust agreement attached hereto is on file for inspection and review at the Lower Moreland Township Building at 640 Red Lion Road, Huntingdon Valley, Pennsylvania 19006.
The establishment of the Lower Moreland Township Retiree Medical Plan (the plan) and execution of the aforementioned trust agreement is authorized for the purpose of providing post-retirement medical benefits to former Township employees and their eligible dependents in accordance with the plan.
As set forth in the trust agreement and as otherwise stated herein, the following conditions apply to the establishment of the Lower Moreland Township Retiree Medical Plan and its administration by DVMMA as a qualified VEBA under Section 501(c)(9) of the code:
The Township shall periodically make contributions to a trust fund administered by DVMMA for the sole purpose of providing post-retirement medical benefits to former Township employees and their eligible dependents;
The post-retirement medical benefits shall be paid in accordance with the terms and conditions of the Lower Moreland Township Retiree Medical Benefit Plan and the trust agreement;
The Lower Moreland Township Retiree Medical Benefit Plan, the trust agreement and the trust fund created thereunder are intended to meet the requirements of Section 501 of the Internal Revenue Code;
The Township shall reimburse DVMMA for the cost of creating the trust and opening various trust fund accounts;
The Township shall pay DVMMA a monthly fee for administering the plan and overseeing the investment of the trust fund;
DVMMA shall make payments from the trust fund to eligible beneficiaries in accordance with the plan; and
DVMMA will act as the trustee of the trust fund and shall make benefit payments to those persons or entities who are certified by the Township as eligible to receive them.
Lower Moreland Township shall be entitled to terminate the trust agreement upon 30 days' written notice, provided that all accrued benefits are accounted for and paid in accordance with the plan and the Internal Revenue Code.
The effective date of the trust agreement shall be no later than January 1, 2004.
Lower Moreland Township grants to DVMMA the powers enumerated in the trust agreement to act as trustee of the plan.
All contributions paid by Lower Moreland Township to the trust fund shall be made with funds appropriated by Lower Moreland Township for that purpose.
As a condition of providing post-retirement medical benefits under the plan, Lower Moreland Township agrees to comply with the trust agreement unless or until that agreement is terminated.
This article is being enacted pursuant to the provisions of the First Class Township Code, 53 P.S. § 55101 et seq., and the Intergovernmental Cooperation Law, Act of July 12, 1972, No. 180, as amended, 53 Pa.C.S.A. § 2301 et seq.