[Adopted 9-9-1991 by Ord. No. 1020, approved 9-9-1991; amended in its entirety 8-7-2006 by Ord. No. 1211, approved 8-7-2006]
The Borough hereby certifies that an affirmative new vote to withdraw the Pension Plan has been obtained from at least 75% of all active, vested and retired members of the Pension Plan, including all part-time employees, and hereby elects to withdraw from the PMRS, which administers the Pension Plan for nonuniformed municipal employees and retirees of the Borough. The results of the vote are as follows:
The Borough hereby confirms its withdrawal from PMRS set forth in Ordinance No. 1161 for the Year 2003 and Ordinance No. 1171 for the Year 2004. The Borough's application to withdraw shall remain in force and effect until which time the Board of Trustees of the Pennsylvania Municipal Retirement System authorize said withdrawal.
The Borough Council President is hereby authorized to enter into an agreement with the Pennsylvania Municipal Retirement System which would terminate the contractual relationship between the Borough and PMRS and fix the respective rights of the parties.
The Borough shall, upon mutual agreement of the Borough and PMRS, waive all claims, and hold the Pennsylvania Municipal Retirement System harmless from all such claims caused by the departure from PMRS and for benefits from current and future nonuniformed employees of the Borough.
Further, the Borough acknowledges to the Pennsylvania Municipal Retirement System responsibility for the Nonuniformed Pension Plan and assumes responsibility for the providing of all future benefit payments for the existing retired members and beneficiaries, effective with the withdrawal from PMRS and return of those funds on deposit at PMRS.
The Borough hereby adopts the Pension Plan document as prepared by StanCorp Financial Group, Inc. ("Stancorp"), and its wholly owned subsidiaries: Standard Insurance Company and The Standard Life Insurance Company of New York.
Upon termination of the contractual relationship between the Borough and PMRS and the transfer of the pension assets herein described, the PMRS plan documentation shall no longer be effective, but rather, the plan document drafted by Stancorp shall be the controlling document. The Borough of Middletown Nonuniformed Pension Plan shall at no time in this process be terminated, but rather, its features shall be described in a new plan document and the related funds will be held by Stancorp in place of PMRS. The Borough hereby authorizes the transfer of all funds, to the extent that such transfer is required, from PMRS, the present custodian of the pension funds, to the successor custodian of funds, Stancorp Financial Group, Inc., via direct transfer.
Amendments to Stancorp plan document.
[Added 4-13-2010 by Ord. No. 1266, approved 4-13-2010]
In order to clarify the calculation of the cost-of-living adjustment, the Stancorp plan document referred to above shall be amended to delete the existing plan Section 7.7 and to replace it with the following:
Editor's Note: This ordinance also provided that benefit changes calculated hereunder, if any, would be retroactive to 1-1-2010 and would be paid in accordance with past practices in the plan.
The Borough hereby certifies to the Pennsylvania Municipal Retirement System that all deposits at PMRS are sufficient to cover anticipated expenses as determined by actuarial studies compliant with the requirements of Act 205, (53 P.S. § 895.101 et seq.). Should the deposits be shown to be insufficient, the Borough shall assume responsibility for the collection and contribution of funds necessary for the Pension Plan pursuant to the requirements of Act 205.
Nothing in this article shall in any way amend or repeal any clause or part of the collective bargaining agreement in effect between the Borough and Local 776 Teamsters.
In the event that any provision, section, sentence, clause or part of this article or the Pension Plan document, shall be held to be invalid, such invalidity shall not affect or impair any remaining provision, section, sentence, clause or part of this article or the Pension Plan document, it being the intent of the Borough that such remainder shall be and remain in full force and effect.
All prior ordinances or parts of ordinances which are inconsistent herewith are hereby repealed to the extent of such inconsistency.
Contingent upon the approval of the withdrawal of the Borough from PMRS and contingent upon the execution of the aforementioned agreement between the Borough and PMRS, this article shall be effective immediately.
Editor's Note: Editor's Note: Ordinance No. 1340 (adopted and approved 5-2-2017) amended and restated the Borough of Middletown Employees Other Post-Employment Benefit (OPEB) Retiree Benefits Plan and the Borough of Middletown OPEB Integral Part Trust, both originally effective 4-7-2008 as adopted by Ord. No. 1251. Complete copies of the ordinances, plans, and any amendments thereto are on file in the Borough offices.