[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:
A.
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;
B.
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;
C.
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;
D.
The Township shall reimburse DVMMA for the cost of creating the trust
and opening various trust fund accounts;
E.
The Township shall pay DVMMA a monthly fee for administering the
plan and overseeing the investment of the trust fund;
F.
DVMMA shall make payments from the trust fund to eligible beneficiaries
in accordance with the plan; and
G.
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.
