[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:
Percent
|
Yes
|
DNV
|
Possible
| |
---|---|---|---|---|
94%
|
45
|
3
|
48
|
FT
|
100%
|
2
|
0
|
2
|
PT electing to enroll upon completion of transfer to new administrator
|
100%
|
3
|
0
|
3
|
PT electing not to enroll in Pension Plan
|
100%
|
9
|
0
|
9
|
PT failed to make an election as of date of vote
|
76%
|
25
|
8
|
33
|
Retired/survivor
|
0%
|
0
|
2
|
2
|
Vested
|
87%
|
84
|
13
|
97
|
Total
|
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.
A.Â
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.
B.Â
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.
B.Â
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.
C.Â
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.
D.Â
Amendments to Stancorp plan document.
[Added 4-13-2010 by Ord.
No. 1266, approved 4-13-2010[2]]
(1)Â
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:
7.7. Normal retirement benefit cost-of-living adjustment
(COLA).
|
A post-retirement COLA shall be applied to the amount of any
normal retirement benefit of each retired participant, surviving spouse
or other beneficiary. The adjustment shall be made as of the anniversary
of each participant's annuity starting date, which shall be referred
to as the "adjustment date."
|
The annual adjustment shall be determined by a percentage equal
to the consumer price index (CPI) (Urban Wage Earners and Clerical
Workers) for the fourth month prior to the beginning of the current
plan year divided by the CPI for the fourth month prior to the immediately
preceding plan year. This percentage, rounded to the nearest 0.1%,
shall be multiplied by the current benefit level to determine the
benefit level commencing at the adjustment date. In any event, the
COLA shall be limited to a maximum annual increase of 3% and a maximum
total increase of 30%. In no event shall the COLA cause a reduction
in benefit.
|
In the event that an individual would have otherwise been subject
to a negative adjustment for the 2010 adjustment date due to the preceding
calculation (meaning that the CPI decreased during the measurement
period), no adjustment shall be made to the normal retirement benefit
on that adjustment date. The COLA for the subsequent adjustment date
shall be calculated on the basis of the CPI from the fourth month
preceding the subsequent anniversary date divided by the CPI on the
fourth month preceding the anniversary date of the last plan year
which produced a positive adjustment. Notwithstanding anything to
the contrary in this plan, the intent of this paragraph is to prevent
a negative COLA adjustment for the 2010 adjustment date only. This
paragraph shall not operate to prevent a negative COLA adjustment
for any adjustment date subsequent to 2010.
|
This shall be calculated as a compound interest COLA.
|
The COLA shall be recognized in any lump sum payments made under
the plan.
|
[2]
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.
A.Â
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.
B.Â
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.
C.Â
All prior ordinances or parts of ordinances which are inconsistent
herewith are hereby repealed to the extent of such inconsistency.
D.Â
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.[1]
[1]
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.