[HISTORY: Adopted by the Board of Commissioners of the Township
of Lower Moreland 7-17-1991 by Ord. No. 415. Amendments noted where
applicable.]
The Board of Commissioners of Lower Moreland Township is hereby
authorized to execute the Delaware Valley Workers' Compensation
Intergovernmental Agreement for the participation of Lower Moreland
Township in the Delaware Valley Workers' Compensation Trust,
which agreement is attached hereto as Exhibit A and is on file for
inspection and review at the offices of Lower Moreland Township, Montgomery
County, Pennsylvania. This agreement may be amended after the enactment
of this chapter to conform to any requirements imposed by the Commonwealth
of Pennsylvania Department of Labor and Industry Bureau of Workers'
Compensation.
The participation of Lower Moreland Township in the Delaware
Valley Workers' Compensation Trust is authorized for the purposes
of enabling Lower Moreland Township to obtain a self-insurance exemption
for the payment of workers' compensation claims from the Pennsylvania
Department of Labor and Industry pursuant to 77 P.S. § 501
and ultimately reduce the cost of workers' compensation claims
through the creation of a joint fund to be used for the payment of
workers' compensation claims on behalf of all participants in
the Delaware Valley Workers' Compensation Trust.
As set forth in the Delaware Valley Workers' Compensation
Intergovernmental Agreement, the following conditions, among others,
apply to the participation of Lower Moreland Township in the Delaware
Valley Workers' Compensation Trust:
A.
That
each participating municipality meets the admission and eligibility
requirements set forth therein.
B.
That
each participating municipality agrees to pay all annual contributions
and any assessments which are required for the creation of the general
operating and restricting surplus funds created pursuant to the Delaware
Valley Workers' Compensation Intergovernmental Agreement.
C.
That
each participating municipality use its best efforts to provide appropriations
for the payment of any contributions or assessments required by the
trust for the payment of workers' compensation benefits.
D.
That
each participating municipality institute any and all loss-prevention
measures or risk-management procedures as may be required for the
purpose of minimizing or eliminating risks to its employees which
could contribute to losses.
E.
That
each participating municipality cooperates fully with the trust's
service and fiscal agents, attorneys, claims adjusters and any other
agents or employees of the trust with respect to the investigation,
defense and settlement of claims.
F.
That
each participating municipality designate a contact person to be responsible
for all contacts with the trust.
G.
That
each participating municipality provide any information to the Administrator
or Board of Trustees as may be required to effect the purposes and
objectives of the trust.
The participation of Lower Moreland Township in the Delaware
Valley Workers' Compensation Trust will not be effective unless
and until it is granted a self-insurance exemption of the payment
of workers' compensation claims by the Pennsylvania Department
of Labor and Industry pursuant to 77 P.S. § 501 and any
regulations promulgated thereunder.
Lower Moreland Township agrees to participate in the trust for
a minimum period of two years, subject to the requirement that it
continue to retain a self-insurance exemption for the payment of workers'
compensation claims from the Pennsylvania Department of Labor and
Industry. After the expiration of that minimum two-year period, each
participating municipality may withdraw under the following conditions,
subject to the right of arbitration as provided in the Delaware Valley
Workers' Compensation Intergovernmental Agreement:
A.
An
opinion is rendered by the trust-certified actuary that such withdrawal
will not result in the number of participants falling below the minimum
required to assure the fiscal and actuarial soundness of the trust
itself.
B.
That
the withdrawing municipality is not then in default of its obligation
to pay premiums, contributions or assessments.
C.
That
the withdrawing municipality shall pay the full amount of a termination
contribution, as determined by the Board of Trustees in accordance
with the Delaware Valley Workers' Compensation Intergovernmental
Agreement and any bylaws adopted by the participants pursuant to that
agreement.
D.
That
the Board of Trustees shall have received a certification from the
trust actuary that the withdrawal of the municipality will not reduce
the actuarial soundness of the trust, and, if any municipal debt has
been incurred by the participants to finance any portion of the trust
reserves, an opinion is obtained from bond counsel that such withdrawal
will not adversely affect the tax-exempt status of any interest paid
and any debt incurred by the participating municipalities or any legal
entity created for the purpose of incurring such debt. As used herein,
the term "debt" includes any municipal bonds, certificates, letters
of credit or other instruments of municipal indebtedness.
The effective date of the participation of Lower Moreland Township
in the Delaware Valley Workers' Compensation Trust will be January
1, 1992, provided that a self-insurance exemption for the payment
of workers' compensation claims is obtained by it from the Pennsylvania
Department of Labor and Industry before that date.
Each participating municipality delegates to the Board of Trustees
of the Delaware Valley Workers' Compensation Trust the powers
enumerated in the intergovernmental agreement, including the right
to expel participants under certain conditions.
All contributions and assessments paid by Lower Moreland Township
shall be made with funds appropriated by the Board of Commissioners
for that purpose.
The organizational structure of the trust shall consist of a
Board of Trustees, an administrator, a claims administrative/loss
control consultant and various service agents appointed by the Board
of Trustees in accordance with the Delaware Valley Workers' Compensation
Intergovernmental Agreement and any bylaws adopted pursuant thereto.
As set forth in the Delaware Valley Workers' Compensation
Intergovernmental Agreement, the funds required for the creation and
operation of the trust shall be provided by the participating municipalities
through annual appropriations.
The Delaware Valley Workers' Compensation Trust is empowered
to enter into contracts for policies of group insurance and employee
benefits, including social security, for any of its employees.
As a condition of participating in the Delaware Valley Workers'
Compensation Trust, Lower Moreland Township agrees to:
A.
Pay all annual contribution or assessment as may be required by the
Board of Trustees.
B.
Appoint a representative to sit on the Board of Trustees and designate
a contact person for the purpose of communicating with the trust or
its representatives.
C.
Agree not to withdraw from the trust for a period of two years following
its admission to the trust, provided that it maintains a self-insurance
exemption for the payment of workers' compensation benefits from
the Pennsylvania Department of Labor and Industry.
D.
Withdraw from the trust only upon satisfaction of the conditions
set forth in the Delaware Valley Workers' Compensation Intergovernmental
Agreement.
E.
Perform all covenants contained in the Delaware Valley Workers'
Compensation Intergovernmental Agreement and delegate to the Board
of Trustees the powers and authorities enumerated in that agreement.
F.
Comply with all the conditions set forth in the Delaware Valley Workers'
Compensation Intergovernmental Agreement governing the handling and
payment of claims, including the defense and settlement thereof.
G.
Appropriate the funds needed to pay all contributions and assessments
as may be required by the Board of Trustees in accordance with the
Delaware Valley Workers' Compensation Intergovernmental Agreement.
H.
Cooperate with the trust, its agents or employees and provide the
trust with all information it needs for the operation of the trust,
including any underwriting or claims data which may be required by
the Board of Trustees or its designee.
