[Adopted 12-21-1993 by Ord. No. 1789-93]
The President of the Board of Commissioners and the Township Manager
are hereby authorized to execute the Delaware Valley Workers' Compensation
Trust Agreement for the participation of Cheltenham Township in the Delaware
Valley Workers' Compensation Trust, which agreement is attached hereto
as This agreement may be amended after the enactment of this Article to conform
to any requirements imposed by the Commonwealth of Pennsylvania and any of
its agencies, including the Department of Labor and Industry Bureau of Workers'
Compensation.
The participation of Cheltenham Township in the Delaware Valley Workers'
Compensation Trust is authorized for the purpose of enabling Cheltenham Township
to reduce the cost of workers' compensation claims through the creation
of a group self-insurance fund.
The Commonwealth of Pennsylvania Department of Labor and Industry Bureau
of Workers' Compensation has approved the issuance of a permit to the
Delaware Valley Workers' Compensation Trust to operate as a group self-insurance
fund subject to certain conditions.
As an approved self-insurance fund, the Delaware Valley Workers'
Compensation Trust will be responsible for the payment of workers' compensation
claims on behalf of all the trust participants.
As set forth in the Delaware Valley Workers' Compensation Trust
Agreement, the following conditions, among others, apply to the participation
of Cheltenham Township in the Delaware Valley Workers' Compensation Trust:
A.
The trust shall consist of at least five homogeneous
municipal participants organized as local government agencies under Pennsylvania
law.
B.
Each participant satisfies all eligibility and admission
requirements for membership in the trust.
C.
Each participant pledges and agrees to appropriate funds
to pay all its annual contributions and assessments which are required for
the creation of a fund maintained at a level sufficient to pay all workers'
compensation claims and related expenses incurred by the trust participants.
D.
Each participant agrees to jointly and severally assume
and discharge the workers' compensation liabilities of each and every
other participant in accordance with the Delaware Valley Workers' Compensation
Trust Agreement when required to do so by the Pennsylvania Department of Labor
and Industry Bureau for Workers' Compensation.
E.
Each participant will institute any and all loss prevention
measures or risk management procedures as may be required for the purpose
of minimizing or eliminating workplace risks to its employees.
F.
Each participant shall cooperate 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 the claims.
G.
Each participant shall designate a person to be responsible
for all contacts with the trust.
H.
Each participant shall provide any information to the
Administrator or Board of Trustees as may be required to effect the purposes
and objectives of the trust.
I.
Each participant shall comply with all applicable statutes
and regulations governing the payment of workers' compensation claims,
including but not limited to the Pennsylvania Workers' Compensation Act
and any regulations promulgated thereunder.
Cheltenham Township agrees to participate in the trust for a minimum
period of two years subject to the terms and conditions of the Delaware Valley
Workers' Compensation Trust Agreement. After the expiration of that minimum
two-year period, each participant may withdraw under the following conditions,
subject to the right of arbitration as provided in the Delaware Valley Workers'
Compensation Agreement:
A.
An opinion is rendered by the trust certified actuary
that 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.
The withdrawing participant is not then in default of
its obligation to pay premiums, contributions or assessments.
C.
The withdrawing participant shall pay the full amount
of a termination contribution or any additional assessments as determined
by the Board of Trustees in accordance with the Delaware Valley Workers'
Compensation Trust Agreement and bylaws.
D.
The Board of Trustees shall have received a certification
from the trust actuary that the withdrawal of the participant will not impair
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 participant
or any legal entity created for the purpose of incurring such debt. As used
herein, the term "debt" shall include any municipal bonds, certificates, letters
of credit or other instruments of municipal indebtedness.
Participation of Cheltenham Township in the Delaware Valley Workers'
Compensation Trust will be effective upon final approval of the trust permit
application by the Pennsylvania Department of Labor and Industry Bureau of
Workers' Compensation or upon any other date determined by the Department.
All contributions and assessments paid by Cheltenham Township shall
be made with funds appropriated by Cheltenham Township for that purpose.
The organizational structure of the trust shall consist of a Board of
Trustees, an Administrator, claims administration/loss control consultant(s)
and various service agents appointed by the Board of Trustees in accordance
with the Delaware Valley Workers' Compensation Trust Agreement and any
bylaws adopted pursuant thereto.
As set forth in the Delaware Valley Workers' Compensation Trust
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, Cheltenham Township agrees to:
A.
Pay all annual contributions or assessments 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.
Not withdraw from the trust for a period of two years
following its admission to the trust, subject to the terms and conditions
of the Delaware Valley Workers' Compensation Trust Agreement.
D.
Withdraw from the trust only upon satisfaction of the
conditions set forth in the Delaware Valley Workers' Compensation Trust
Agreement.
E.
Perform all covenants contained in the Delaware Valley
Workers' Compensation Trust 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 Trust Agreement governing the handling and
payment of claims, including the defense and settlement thereof.
G.
Appropriate the funds needed to pay all its contributions
and assessments as may be required by the Board of Trustees in accordance
with the Delaware Valley Workers' Compensation Trust 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 requested by the Board
of Trustees or its designee.
