[Adopted 12-29-1977 by Ord. No. 1431 as
part of Ch. 1, Art. IV of the Cheltenham Code; amended in its entirety 5-17-1988 by Ord. No.
1671]
A.
Employee pension plans are hereby established for
the benefit of Township employees. All employees becoming members
of the plans shall retire in accordance with the appropriate plan;
provided, however, that the Board of Commissioners reserves the right
to employ on a temporary basis any retired employee whose services,
in the judgment of the Board, are so skilled that the Township would
benefit by such continued temporary employment.
B.
All employees who are members of the plans shall,
upon retirement, receive such monthly pension as shall be adopted
by the Pension Board.
D.
The Board of Commissioners reserves the right to amend,
modify or wholly discontinue the pension plans at any time.
A.
ACT OF APRIL 13, 1972, P.L.
ADMINISTRATOR
AVERAGE MONTHLY EARNINGS (AME)
CONTINUOUS SERVICE
EFFECTIVE DATE
EMPLOYEE
EMPLOYER
EQUIVALENT ACTUARIAL VALUE
MORTALITY:
female age set back five years
GROUP ANNUITY CONTRACT
INSURANCE COMPANY
MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT OF
DECEMBER 18, 1984, P.L.
PLAN
RETIRED EMPLOYEE
RETIREMENT BENEFIT
VESTING
Definitions. As used in this Article, the following
terms shall have the meanings indicated:
184, AS AMENDED -- 53 P.S. § 1-101 et seq., Home
Rule Charter and Optional Plans Law.
The body which is to perform the administrative functions of this plan, as established in accordance with § 40-15 of this Article.
An employee's monthly salary or wage paid or accrued as recorded
by the employer to the Internal Revenue Service for income tax purposes,
including any deferred compensation, averaged over the highest three
consecutive years during the last five years of his employment with
the employer; and will also include an amount equal to moneys that
would have been paid for the continuous and approved absence.
[Amended 6-20-1989 by Ord. No. 1694]
The period of uninterrupted employment of an employee with
the employer.[1]
For this revised plan, January 1, 1986.
Any person other than policemen or salaried employees enrolled on an hourly basis on the active employment rolls of the employer on or after the effective date of this plan who meets the requirements in § 40-6 hereof and who is customarily employed on a full-time hourly basis and who is covered under a collective bargaining agreement between the employer and the Chairman Township Employees Association.
Cheltenham Township.
Value when computed on the basis of the following actuarial
table:
1971 Group Annuity Mortality Table
INTEREST: 8% Compounded Annually
A contract issued by the insurance company providing for
the payment of retirement benefits who become entitled to such benefits
in accordance with the provisions of this plan.
A legal reserve life insurance company organized or incorporated
under the laws of any one of the United States of America and duly
licensed in the Commonwealth of Pennsylvania.
1005, No. 205, 53 P.S. § 895.101 ET SEQ. -- An
act to provide for the annual distribution of state aid to municipalities
to offset employee pension costs.
The retirement plan for hourly employees of Cheltenham Township
as revised on January 1, 1986, and it may from time to time be amended
thereafter, which is established by the employer for the purpose of
providing retirement benefits for employees of the employer who are
eligible to participate herein in accordance with the provisions of
this plan.
A former employee who is retired under this plan and who
is receiving retirement benefits provided for hereunder.
The monthly payments to which an employee shall become entitled
hereunder.
A right that an employee who has at least five years of service
acquired in all or a portion (depending on his length of service)
of employer contributions made on his behalf. Such right is not contingent
on his continuing in employment with the employer but is contingent
on his reaching his normal retirement date and his leaving his employee
contributions under this plan.
[1]
Editor's Note: The definition of "covered
compensation," which immediately followed this definition, was repealed
6-20-1989 by Ord. No. 1694.
B.
Word usage. Wherever used herein, a pronoun in the
masculine gender shall be considered as including the feminine gender
unless the context clearly indicates otherwise, and wherever used
herein, a pronoun in the singular form shall be considered as being
in the plural form unless the context clearly indicates otherwise.
A.
Each employee will become eligible to be included
in this revised plan on the first day of the month following his date
of hire. The earliest date of inclusion is the effective date.
B.
In order to become a participant under this plan,
each eligible employee must sign the appropriate forms, including
an authorization for payroll deduction, as may be required by the
employer.
A.
"Credited service" shall mean the number of full years
of continuous service and fraction thereof with the employer, as determined
by the administrator, completed by the employee from his last date
of employment to the date of termination of employment.
B.
Continuous service.
(1)
Continuous service with the employer shall not be
broken in the event of:
(a)
Absence with the consent of the administrator during
any period not in excess of one year, except that the administrator
may consent to extend the period of leave.
(b)
Absence from work due to legitimate and provable illness
as determined by the employer.
(c)
Absence in the service of the Armed Forces of the
United States, provided that the employee shall reenter the employ
of the employer within the statutory period during which his right
to reemployment is guaranteed after he has first become eligible for
discharge or separation from active duty.
C.
An employee shall not receive credited service in the case of any of the periods of absence set forth in Subsection B above but shall retain credited service accrued prior to such absence. Upon return to employment after an approved absence, the employee will again accrue credited service.
D.
Failure to return to the employ of the employer by the end of any period specified in Subsection B above shall be considered a termination of employment. Any other absence shall also be considered a termination of employment. Any employee whose employment has been terminated shall, for the purpose of this plan, be deemed a new employee upon resumption of his employment unless he is vested in accordance with § 40-13 hereof.
A.
Normal retirement date. An employee's normal retirement
date shall be the first day of the month coincident with or next following
his 65th anniversary of his date of birth. An employee's retirement
age shall be reduced one year for each year of credited service in
excess of 20 years, to a maximum reduction of 10 years.
[Amended 6-20-1989 by Ord. No. 1694]
B.
Early retirement date. Upon written notice to the
administrator, an employee may elect to terminate employment and retire
on an early retirement date which may be the first day of any month
within 10 years prior to his normal retirement date. For employees
hired after December 31, 2013, the minimum (early) retirement age
shall be set at age 60 with 20 years of service.
[Amended 11-19-2014 by Ord. No. 2291-14]
C.
Deferred retirement date. An employee may continue
in employment beyond his normal retirement date to a deferred retirement
date which may be the first day of any month subsequent to his normal
retirement date.
A.
Normal retirement benefit. The monthly amount of normal
retirement benefit payable to an employee retiring on his normal retirement
date shall be an amount equal to 2% of average monthly earnings multiplied
by the number of years of credited service. For employees hired after
December 31, 2013, the Township Pension Plan shall provide a benefit
of 1 1/2 times years of service times average pay in the three highest
years of the employee’s earnings. The pension shall be capped
at 100% of the employee's salary.
[Amended 6-20-1989 by Ord. No. 1694; 11-19-2014 by Ord. No.
2291-14]
B.
Early retirement benefit.
(1)
The monthly amount of early retirement benefit payable to an employee retiring on his early retirement date shall be determined in the same manner as his normal retirement benefit, based on his credited service to his early retirement date, subject to the amount of benefit in which the employee is vested under § 40-13, Termination of employment, and reduced in accordance with the following:
|
Number of Years Early Retirement Date
Precedes Normal Retirement Date
|
Percent Reduction
| |
|---|---|---|
|
0
|
100.0
| |
|
1
|
93.3
| |
|
2
|
86.6
| |
|
3
|
79.9
| |
|
4
|
73.2
| |
|
5
|
66.5
| |
|
6
|
63.2
| |
|
7
|
59.9
| |
|
8
|
56.6
| |
|
9
|
53.3
| |
|
10
|
50.0
|
(2)
If the period between the early retirement date and
normal retirement date is not an integral number of years, the percentage
to be applied shall be the percentage for the next higher integral
number of years, increased by a proportionate part of the difference
between that percentage and the percentage for the next lower integral
number of years.
C.
Deferred retirement benefit. The monthly amount of
deferred retirement benefit payable to an employee retiring on his
deferred retirement date shall be determined in the same manner as
his normal retirement benefit, based on his credited service and average
monthly earnings to his deferred retirement date.
D.
Minimum retirement benefit. In no event will the monthly
retirement benefit payable to an employee who isn't covered on January
1, 1974, on his early, normal or deferred retirement date be less
than that which he would have received under the plan as funded by
the Aetna Group Annuity Contract GA-2342.
E.
Forfeitures. No part of any forfeitures resulting
from the application of any provision of this plan shall be applied
to increase the benefits any employee would otherwise receive under
this plan.
F.
Retired participants will continue to receive retirement
benefits in the same amount as was being paid immediately prior to
the effective date of this amended and restated plan. A participant
who terminated employment prior to the effective date of this amended
and restated plan, who is not subsequently reemployed, shall have
such retirement benefits determined in accordance with the provisions
of the plan in effect as of the date of such participant's termination
of employment.
A.
Normal form of retirement benefit: life annuity; modified
cash refund.
(1)
A retired employee's retirement benefit shall normally
be payable in the form of a monthly life annuity commencing on his
actual retirement date and ceasing with the last payment due immediately
preceding the retired employee's death.
(2)
At the time of the retired employee's death, his designated
beneficiary shall become entitled to a cash refund equal to the excess,
if any, of the total contributions made by the employee to this plan,
plus interest thereon, over the total of all benefits which had been
paid to the retired employee at the time of his death.
B.
Contingent annuitant option.
(1)
In lieu of the normal form of retirement benefit described in Subsection A above, an employee may elect a contingent annuitant option which provides for an actuarially reduced benefit payable to the retired employee during his lifetime and for the continuance of such retirement benefit payments in either the same or a percentage of such reduced amount of a contingent annuitant, if living, after the retired employee's death.
(2)
If the contingent annuitant is the spouse of the retired
employee or if the contingent annuitant is any other person not more
than 30 years younger than the retired employee, the benefit payable
under this option is payable without restriction. If, however, the
contingent annuitant is a person other than the spouse of the retired
employee and is more than 30 years younger than the retired employee,
the benefit otherwise payable under this option to the contingent
annuitant shall be limited so that the value of the annuity payable
to the contingent annuitant shall be less than 50% of the value of
the retired employee's total original benefit, both calculated as
of the retired employee's actual retirement date.
(3)
The monthly payment to the contingent annuitant shall
commence on the first day of the month following the month in which
the retired employee dies, if the contingent annuitant is then living,
and shall continue monthly with the last payment due for the month
in which the contingent annuitant's death occurs.
(4)
If a contingent annuitant dies before the employee's
actual retirement date, the normal form of retirement benefit will
automatically become payable (unless the employee names another contingent
annuitant before his actual retirement date) as if a contingent annuitant
option had not been elected. If the contingent annuitant predeceases
the retired employee after retirement, the retirement benefit payments
will cease upon the retired employee's death. No monthly benefit will
be payable to a contingent annuitant if the employee dies before his
first retirement benefit payment becomes due.
(5)
If an employee who has elected this option should
die after his normal retirement date and prior to his deferred retirement
date, the contingent annuitant, if living, shall become a survivor
annuitant and shall be entitled to benefits, payable for such survivor
annuitant's further lifetime, in a monthly amount equal to the amount
which would have been payable to the contingent annuitant had the
employee retired on the date of his death with the contingent annuitant
option operative.
(6)
Notwithstanding any of the provisions outlined above,
the minimum total of all benefits payable under this option shall
be an amount not less than the total of all the retired employee's
contributions hereunder with credited interest to his annuity commencement
date.
C.
Option for life annuity with 120 payments guaranteed.
(1)
In lieu of the normal form of retirement benefit described in Subsection A above, an employee may elect an option for life annuity with 120 payments guaranteed which provides for an actuarially reduced retirement benefit payable to the retired employee during his lifetime with the guaranty that not less than a total of 120 monthly retirement benefit payments will be made to the retired employee and his named beneficiary.
(2)
If this option is elected and the retired employee
dies prior to the receipt of the 120 guaranteed monthly payments,
the balance of the guaranteed monthly payments will be paid to the
retired employee's named beneficiary until a total of 120 monthly
payments has been made to the retired employee and his named beneficiary.
The first such payment to the beneficiary shall be due and payable
as of the first day of the month following the retired employee's
death.
(3)
In the event that there is no named beneficiary living
at the death of the retired employee, the balance of the 120 guaranteed
monthly payments, which would otherwise have become payable to the
retired employee's beneficiary, shall be commuted to a single sum
and shall be paid to the retired employee's executors or administrators.
(4)
If the beneficiary of a deceased retired employee
should die prior to receiving the balance of the 120 guaranteed monthly
payments, the balance of the 120 guaranteed monthly payments which
would otherwise have become payable to the retired employee's beneficiary
shall be commuted to a single sum and shall be paid to the beneficiary's
executors or administrators.
(5)
If an employee who has elected this option should
die after his normal retirement date and prior to his deferred retirement
date, his beneficiary shall become a beneficiary annuitant and shall
be entitled to benefits payable for 120 months in an amount equal
to the amount which would have been payable to the employee had the
employee retired on the date of his death with the option for life
annuity with 120 payments guaranteed operative.
(6)
Notwithstanding any of the provisions outlined above,
the minimum total of all benefits payable under this option shall
be an amount not less than the total of all the retired employee's
contributions hereunder with credited interest to his annuity commencement
date.
D.
Social security option.
(1)
Prior to an employee's annuity commencement date,
if such date precedes his social security commencement date, he may
elect the social security option. Under this option, the amount of
the retirement annuity payments payable to the employee before his
social security commencement date will be increased, and the amount
of the retirement annuity payments payable to the employee on and
after such date will be reduced.
(2)
The yearly amount of such increased retirement annuity
payments will be equal to the yearly amount of retirement annuity
payments which would have been payable to the employee if this option
had not been elected, plus a percentage of his social security benefit.
Such percentage will be provided by the insurance company.
(3)
The yearly amount of such reduced retirement annuity
payments will be equal to the increased yearly amount of retirement
annuity payments payable to the employee before his social security
commencement date minus his social security benefit.
(4)
This option may only be elected in conjunction with
the normal form of annuity.
E.
Any one option may be elected by the employee by written
notice to the administrator at least one month before the employee's
actual retirement date.
F.
Once a choice as to a form of retirement benefit or
a retirement date is made and accepted by the administrator, it cannot
be rescinded by the employee without the written consent of the administrator,
conditioned upon satisfactory evidence of the good health of the employee
and any person entitled to receive payments upon the death of the
employee. In no event shall the consent of any person entitled to
receive upon the death of the employee be required as a condition
to the right of an employee to revoke or change any option previously
elected.
G.
Anything in this plan to the contrary notwithstanding,
the employee shall not have the right prior to his retirement irrevocably
to elect to have all or a part of his interest in this plan, which
would otherwise become available to him during his lifetime, paid
only to his beneficiary after his death.
H.
If a retired employee is reemployed by the employer,
his retirement benefit payments shall cease with the last payment
due prior to his reemployment. Retirement benefit payments shall again
become payable on the first day of the month following subsequent
termination of employment.
I.
J.
If a participant dies after he begins to receive his retirement benefit but before the entire interest in his retirement benefit has been distributed to him, the entire interest in his retirement benefit (or the remaining part of such retirement benefit) will be distributed at least as rapidly as under the method of distribution in effect prior to his death. If the participant dies before he begins to receive his retirement benefit, the entire interest in his retirement benefit will be distributed within five years after his death unless Subsection J(1) or (2) below apply:
(1)
Any portion of the participant's retirement benefit is payable to a designated beneficiary, and the portion of the participant's retirement benefit will be distributed according to Subsection I above, and such distribution of the participant's retirement benefit begins no later than one year after the date of the participant's death (or such later date as the Secretary may prescribe).
(2)
The designated beneficiary is the surviving spouse of the participant, and the participant's interest to which the surviving spouse is entitled will be distributed according to Subsection I(2) above. If the surviving spouse dies before payments are required to begin, the entire interest in the participant's retirement benefit will be distributed within five years of the death of the surviving spouse.
K.
A retired participant who commenced to receive retirement
benefits prior to the effective date of this amended and restated
plan shall have such benefits continued in the same form as such benefits
were being paid to him immediately preceding the effective date of
this amended and restated plan.
A.
Upon the death of any employee prior to his normal
retirement date, there shall be payable to his named beneficiary a
single sum death benefit equal to the total of the employee's contributions
under this plan, plus credited interest thereon.
B.
Upon the death of an employee on or after his normal retirement date, there shall be payable to his named beneficiary a death benefit payable in accordance with the provisions as outlined in § 40-10.
C.
In addition to the benefit payable under Subsection B above, upon the death of any employee on or after his actual retirement date, there shall be payable to the participant's beneficiary a lump-sum death benefit in the amount of $1,000.
D.
Payment of the death benefits as outlined above shall
be in lieu of all obligations of the insurance company with regard
to the retired employee under this plan.
A.
An employee who has completed at least 10 years of
credited service and is deemed to be permanently and totally disabled
in accordance with the Federal Social Security Act shall be entitled
to disability benefits as hereinafter outlined.
B.
"Permanent and total disability" means presumably
permanent incapacity occurring after the effective date, and resulting
in an employee being unable to engage in any regular gainful employment
or occupation by reasons of any medically demonstrable physical or
mental condition, excluding, however, any incapacity which was contracted,
suffered or incurred while the employee was engaged in or resulted
from having engaged in a felonious enterprise, or consists of chronic
alcoholism or addiction to narcotics, or results from an intentionally
self-inflicted injury, or results from service in the armed forces
of any country, for which a service-connected government disability
benefit is payable. Proof of disability shall be submitted to the
employer. Such disability will not be considered established unless
it has continued for a period of not less than five consecutive months.
C.
The employer may require proof of continued disability.
Such proof may be required from time to time but not more frequently
than once every six months.
D.
The monthly amount of disability benefit payable to
an employee eligible for such benefit shall be determined in the same
manner as his normal retirement benefit based on the number of years
of credited service as of the date of his disability.
E.
The disability benefit shall be payable monthly commencing
with the first day of the month following establishment of the disability
and shall terminate with the last monthly payment due preceding the
earliest of the following dates:
F.
Upon occurrence of the earliest of the above events, the disability benefit shall cease. If such occurrence is Subsection E(3) above, payment of the normal retirement benefit shall commence on such date in the same amount as his disability benefit.
G.
Upon reaching his normal retirement date, a disabled
employee may elect the contingent annuitant option, and the provisions
of that option shall determine the amount and duration of subsequent
payments.
H.
A participant who commenced to receive disability
benefit payments prior to the effective date of this amended and restated
plan shall have such benefits continued in the same amount and manner
as such benefits were being paid to him immediately preceding the
effective date of this amended and restated plan.
A.
If an employee should terminate employment with the
employer prior to his early or normal retirement, date he shall be
entitled to elect either of the following two options:
[Amended 3-20-2001 by Ord. No. 1982-01[1]]
(1)
Refund option. Under this option a terminated employee
will receive a lump sum cash refund equal to the total of the employee's
contributions under this plan plus credited interest thereon to the
date of termination. Election of this option shall be in lieu of all
other benefits which may have become due the terminated employee under
this plan.
(2)
Annuity option. Under this option an employee who terminates employment with the employer prior to his early or normal retirement date shall be entitled to a retirement benefit as determined in accordance with the provisions of § 40-9A based on his average monthly earnings and his credited service on the date of his termination of employment. Such benefit is subject to the percentage and requirements indicated in the vesting schedule below and shall be payable commencing on the employee's normal retirement date.
|
Years of Service
|
Vested Percentage
| |
|---|---|---|
|
Less than 5
|
0%
| |
|
5 or more
|
100%
|
[1]
Editor's Note: This ordinance also provided
that it shall take effect 1-1-2001.
B.
If an employee should terminate his employment after
55, he will have a vested percentage of 100%. For employees hired
after December 31, 2014, there shall be pension vesting after five
years of credited service.
[Amended 11-19-2014 by Ord. No. 2291-14]
C.
A participant who terminated employment prior to the
effective date of this amended and restated plan who is not subsequently
reemployed and who retains a nonforfeitable right to retirement benefits
hereunder shall have the amount of his nonforfeitable right determined
in accordance with the provisions of the plan in effect as of the
date of such participant's termination of employment.
A.
For the purpose of funding the retirement benefits
provided for herein, the employer will enter into a group annuity
contract of the deposit administration type, with the insurance company.
B.
The employer will make periodic payments to the insurance
company determined on the basis of annual actuarial estimates furnished
by a qualified actuary chosen by the administrator which shall be
in such amounts as the Township deems necessary for the accumulation
to be sufficient to purchase applicable retirement benefits and as
amended by Act 205.[1]
[1]
Editor's Note: See 53 P.S. § 895.101
et seq.
C.
Each participating employee will be required to make
regular contributions to this plan through payroll deductions equal
to 5% of total yearly wages. An employee’s contribution shall
be suspended until such time that the Commonwealth of Pennsylvania,
pursuant to Act 205,[2] does not provide the necessary funds to actuarially maintain
this pension plan.
[Amended 6-20-1989 by Ord. No. 1694; 11-19-2014 by Ord. No.
2291-14]
[2]
Editor's Note: See 53 P.S. § 895.101
et seq.
D.
Interest will be credited on each employee contribution
at the rate of 4.5% per annum.
E.
No part of the funds held by the plan shall be used
for or diverted to purposes other than for the exclusive benefit of
employees covered under this plan prior to the satisfaction of all
liabilities hereunder with respect to them.
F.
No person shall have any interest in or right to any
of the funds contributed to or held under the plan except as expressly
provided in this plan and the group annuity contract and then only
to the extent that such funds have been contributed by the employer
to the plan.
A.
This plan shall be administered by the employer in
accordance with this plan and the group annuity contract. All decisions
of the employer with respect to the administration of this plan which
are consistent in all respects with the intent and purposes of this
plan shall be conclusive and binding on all concerned.
B.
The employer shall determine the benefits payable
under this plan and shall have the right to make rules as may be necessary
for such administration, shall require employees to file written applications
for retirement, to produce satisfactory evidence of their date of
birth, and furnish such other information as may from time to time
be deemed necessary.
A.
The employer intends to continue this plan and payment
of contributions therefor indefinitely; but continuance of this plan
is not assumed as a contractual obligation, or other obligation, of
the employer, and the right is reserved by the employer to reduce,
suspend or discontinue its contributions hereunder at any time. In
the event of a suspension which results in a discontinuance, such
discontinuance shall be retroactive to the date the last suspension
of contributions commenced.
B.
The employer shall have the right to amend this plan
at any time and to any extent that it may deem advisable. No such
amendment, however, shall:
(1)
Vest in the employer any interest in or control over
the funds accumulated in accordance with this plan.
(2)
Deprive any employee who has retired under this plan,
prior to the date of amendment, of any retirement benefit under this
plan or change the provisions thereof; provided, however, that any
change or modification for the purpose of conforming this plan to
the requirements of the Internal Revenue Code of the United States
or of any other pertinent provisions of federal or state law, or of
any regulation or ruling of any duly constituted authority in connection
therewith, may be made effective at any time with retroactive effect.
A.
This plan shall be discontinued upon written notice
by the employer to the employees covered hereunder and upon written
notice to the insurance company of discontinuance of this plan. A
complete discontinuance of contributions by the employer shall be
deemed a discontinuance of this plan.
B.
In the event that this plan shall be discontinued
or if contributions hereunder are discontinued permanently by the
employer, no further payments shall be made to the insurance company,
and any funds derived from contributions which are available for the
purchase of retirement benefits for employees and former employees
retaining a vested interest under this plan remaining in the hands
of the insurance company shall become vested in said employees covered
under this plan at the date of discontinuance in the manner hereinafter
indicated.
(1)
Any funds which shall be available for distribution
upon discontinuance of this plan shall be applied to purchase retirement
benefits, at the date of such discontinuance, for employees eligible
on that date for normal retirement hereunder in amounts to which said
employees shall be entitled under this plan to the extent that sufficient
funds therefor shall be available.
(2)
Any funds which shall be available for distribution after the distribution after the purchase of retirement benefits described in Subsection B(1) above shall be applied to purchase retirement benefits, at the date of such discontinuance, for persons who are receiving disability retirement benefits under this plan in amounts to which said persons were receiving to the extent that sufficient funds therefor shall be available.
(3)
Any funds which shall be available for distribution after the purchase of the retirement benefits described in Subsection B(1) and (2) above shall be applied to purchase retirement benefits, at the date of such discontinuance, for employees and former employees not included in Subsection B(1) and (2) above but who retain a vested interest in this plan in amounts to which said employees shall be entitled under this plan to the extent that sufficient funds therefor shall be available.
(4)
Any funds which shall be available for distribution after the purchase of the retirement benefits described in Subsection B(1), (2) and (3) above shall be applied to purchase retirement benefits, at the date of such discontinuance, for employees and former employees not included in Subsection B(1), (2) and (3) above but who retain a vested interest in this plan in amounts to which said employees shall be entitled under this plan to the extent that sufficient funds therefor shall be available.
(5)
Any funds which shall be available for distribution after the purchase of the retirement benefits described in Subsection B(1), (2), (3) and (4) above shall be applied to purchase retirement benefits, at the date of such discontinuance for all other employees in amounts to which said employees shall be entitled under this plan to the extent that sufficient funds therefor shall be available.
C.
Said available funds shall be used to completely purchase
the retirement benefits in any one class, as described above, before
being used for subsequent classes. In the event that the funds available
for a class are insufficient to completely purchase the retirement
benefits for such class, they shall be applied pro rata within the
class to purchase such benefits to the extent that such funds are
sufficient.
D.
Any funds paid by the employer to the insurance company which shall be available for distribution after the purchase in full of all the retirement benefits described in Subsection B above shall be deemed to have become available as a result of actuarial error and shall be paid in cash to the employer.
A.
In addition to those contributions required to be
made by the employer and the employee, each employee may make voluntary
additional contributions in a total amount each year not to exceed
10% of his compensation. Voluntary contributions may commence at any
time subsequent to an employee's entry into the plan and shall be
made by means of payroll deductions. These contributions shall be
invested under the group annuity contract and shall receive interest
at the rate credited under the group annuity contract. Each employee's
voluntary additional contribution account shall be valued annually.
B.
The voluntary additional contributions of any employee
shall be delivered by the employer to the insurance company. The employer
may mingle such voluntary additional contributions with those contributions
otherwise required hereunder but shall keep records of the amounts
of each and shall advise the insurance company as each contribution
is paid to the insurance company as to the amounts of any voluntary
additional contributions included herein and the employees by whom
they have been made and the requested disposition thereof.
C.
If an employee has made any voluntary additional contributions
on his own behalf, then the employee may at any time, upon 30 days'
written notice to the insurance company, have distributed to him all
or any portion of such contributions, together with interest earnings
thereon. Any balance shall be retained in the employee's voluntary
additional contributions accounts. An employee may not elect such
a withdrawal more frequently than once in any twelve-month period.
D.
In determining the required benefits or interest of
any employee or his beneficiary for any purpose hereunder, no account
shall be taken of any amounts attributable to his voluntary additional
contributions unless specific reference is made thereto, and any amounts
shall be in addition to the benefits or interest of the employee or
his beneficiary as otherwise determined.
E.
An employee may elect, at any time, to change the
rate of his voluntary additional contributions. Such an increase or
decrease in voluntary contributions may not be elected more frequently
than once in any twelve-month period.
A.
Inclusion in this plan shall be construed as giving
an employee or participant any right to be retained in the service
of the employer without its consent, nor shall it interfere with the
right to the employer to discharge an employee or participant, nor
shall it give an employee or participant any right, claim or interest
in any retirement benefits herein described except upon fulfillment
of the provisions and requirements of this plan.
B.
Under certain circumstances, retirement benefit payments
may be paid to a retired participant or the person designated by him
to receive payments upon his death, if applicable, in a lump sum where
such monthly benefit would be less than $10, such lump sum payment
to be the actuarial equivalent of such monthly retirement benefit.
C.
No person entitled to benefits under this plan shall
have the right to assign, commute or encumber the benefits herein
provided. To the maximum extent permitted by law, the benefits or
payments herein provided shall not in any way be liable to attachment,
garnishment or other process, or to be seized, taken, appropriated
or applied by any legal or equitable process, to pay any debt or liability
of such person.
