[Adopted 8-6-2003 by Ord. No. 3686]
The Board of Commissioners of the Township of
Lower Merion is hereby authorized to execute the Delaware Valley Workers'
Compensation Trust Agreement for the participation of the Township
of Lower Merion 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 the Township of Lower Merion,
75 East Lancaster Avenue, Ardmore, Pennsylvania 19003. 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 the Township of Lower Merion
in the Delaware Valley Workers' Compensation Trust is authorized for
the purposes of enabling the Township of Lower Merion to reduce the
cost or workers' compensation claims through its participation in
a group self-insurance fund.
The Township of Lower Merion delegates to the
Delaware Valley Workers' Compensation Trust the authority to pay workers'
compensation benefits on its behalf in accordance with the Pennsylvania
Workers' Compensation Act and the Pennsylvania Occupational Disease
Act.
A.
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.
B.
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 Trust participants.
As set forth in the Delaware Valley Workers'
Compensation Trust Agreement, the following conditions, among others,
apply to the participation of the Township of Lower Merion in the
Delaware Valley Workers' Compensation Trust:
A.
That the Trust shall consist of at least five homogeneous
municipal participants organized as local government agencies under
Pennsylvania law;
B.
That each participant satisfies all eligibility and
admission requirements for membership in the Trust.
C.
That 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 expense incurred
by the Trust participants;
D.
That 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
Department of Labor and Industry Bureau of Workers' Compensation;
E.
That each participant will institute any and all safety
regulations, loss prevention measures or risk management procedures
as may be required for the purpose of minimizing or eliminating work
place risks to its employees;
F.
That each participant cooperate fully with the Trust's
service and fiscal agents, attorneys, claims adjusters and any agents
or employees of the Trust with respect to the investigation, defense
and settlement of claims;
G.
That each participant designate a person to be responsible
for all contacts with the Trust;
H.
That each participant provide any information to the
Administrator or Board of Trustees as may be required to effect the
purposes and objectives of the Trust; and
I.
That each participant 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.
The Township of Lower Merion agrees to participate
in the Delaware Valley Workers' Compensation 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 Trust 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.
That the withdrawing participant is not then in default
of its obligation to pay premiums, contributions or assessments;
C.
That 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 Trust
Agreement and bylaws; and
D.
That 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 participants, or any
legal entity created for the purpose of incurring such debt. As used
herein, the term "debt" includes any municipal bonds, certificate,
letters of credit or other instruments of municipal indebtedness.
The organizational structure of the Trust shall
consist of a Board of Trustees, an Administrator, a claims administrator/loss
control consultant 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.
The participation of the Township of Lower Merion
in the Delaware Valley Workers' Compensation Trust will be effective
by July 1, 2003, or thereafter, as approved by the Trust Board.
All contributions and assessments paid by the
Township of Lower Merion shall be made with funds appropriated by
the Township of Lower Merion for that purpose.
As a condition of participating in the Delaware
Valley Workers' Compensation Trust, the Township of Lower Merion agrees
to:
A.
Pay all annual contributions and 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 contributions
and assessments as may be required by the Board of Trustees in accordance
with the Delaware Valley Workers' Compensation Trust Agreement; and
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 their designee.
This article is being enacted pursuant to Title
53 Pennsylvania Consolidated Statutes Annotated, § 46006
and the Pennsylvania Intergovernmental Cooperation Law.
