[Adopted 6-9-1952 by Ord. No. 650]
In order to provide the benefits of the Old
Age and Survivors Insurance System for the employees of the Borough
of Ephrata, there is hereby established the necessary procedure as
required by the Commonwealth of Pennsylvania enabling Act No. 491
of 1951.[1]
[1]
Editor's Note: See 65 P.S. § 201
et seq.
[Amended 12-8-1952 by Ord. No. 653]
The Borough Manager is hereby authorized to
develop for the delivery to the Secretary of Labor and Industry of
the Commonwealth of Pennsylvania acting as the state agency a plan
or plans for social security coverage as required under Section 6
of the above-mentioned enabling Act[1] in order that coverage to the employees and officers of
the Borough of Ephrata may be extended and to further comply with
the requirements of these Acts. This plan and agreement shall provide
for participation of the Borough of Ephrata, Pennsylvania, as of January
1, 1951.
[1]
Editor's Note: See 65 P.S. § 201
et seq.
The Borough Manager is hereby authorized to
set up a payroll deduction system to secure the employee's share of
contribution as is now or may be established by the state agency and
the Federal Security Administration and place same in a Social Security
Contribution Fund.
The Borough Manager is hereby authorized to
pay from the funds of the Borough into the Social Security Contribution
Fund from the various budget accounts a sum equal to the employee's
contributions from the same budget account during any and every payroll
period as the employer's contribution.
The Borough Manager shall pay the funds deducted
from the employees and officers of the Borough and the funds contributed
by the Borough from the Social Security Contribution Fund to the state
agency as required in the approved plan.
[Added 4-13-1953 by Ord. No. 656]
The President of Council is hereby authorized
to enter into an agreement on behalf of the Borough of Ephrata with
the Commonwealth of Pennsylvania for the coverage of public employees
under Federal Old Age and Survivors Insurance. The President of the
Council is authorized to execute said agreement and to take any and
all steps necessary to bring about the coverage of Borough employees
under Federal Old Age and Survivors Insurance.
[Added 4-13-1953 by Ord. No. 656]
For the purposes of this plan and agreement,
the following terms shall have the meanings indicated:
Act No. 491 of the 1951 Session of the General Assembly of
the Commonwealth of Pennsylvania.[1]
A coverage group as defined in Section 218(b)(5) of the Social
Security Act.
An employee as defined in Section 210(k) of the Social Security
Act and includes an officer of the Borough of Ephrata.
Means (and this plan is applicable to) any service performed
by an employee of the Borough, except:
Service performed by an employee in a position
covered by a retirement system on the date the agreement between the
Federal Security Administrator and the commonwealth is made applicable
to his coverage group.
Service performed by an employee who is employed
to relieve him from unemployment.
Service performed in a hospital, home or other
institution by an inmate thereof.
Covered transportation service [as defined in
Section 210(1) of the Social Security Act].
Services of an emergency nature.
Services in positions the compensation for which
is on a fee basis.
Subchapter A of Chapter 9 of the Federal Internal Revenue
Code as such Code has been and may from time to time be amended.
A pension, annuity, retirement or similar fund or system
established by the Borough or by the commonwealth.
The Act of Congress approved August 14, 1935, Ch. 531, 49
Stat. 620 (including regulations and requirements issued pursuant
thereto) as such Act has been and may be from time to time amended.
All remuneration for employment as defined herein, including
the cash value of all remuneration paid in any medium other than cash,
except that such term shall not include that part of such remuneration
which, even if it were paid for employment within the meaning of the
Federal Insurance Contributions Act, would not constitute wages within
the meaning of that Act.
[1]
Editor's Note: See 65 P.S. § 201
et seq.
[Added 4-13-1953 by Ord. No. 656]
Approval of this plan by the state agency and
the inclusion of the Borough in the Federal-Commonwealth Agreement
shall have the effect of making all employees covered by this plan
eligible for Old Age and Survivors Insurance benefits on the same
basis as though the services thereby rendered constituted employment
within the meaning of Title II of the Social Security Act.
[Added 4-13-1953 by Ord. No. 656]
A.
The Borough hereby undertakes to pay to the state
agency at such time or times as the state agency shall designate amounts
equivalent to the sum of the taxes which would be imposed by Sections
1400 and 1410 of the Internal Revenue Code if the services of employees
covered by this plan constituted employment as defined in Section
1426 of such code.
B.
In consideration of an employee's retention in or
entry upon employment after approval of this plan, the Borough hereby
agrees, pursuant to the authority contained in Act No. 491 and in
the manner specified by law, to impose upon each of its employees
as to services which are covered by this plan a contribution with
respect to wages, not exceeding the amount of tax which could be imposed
by Section 1400 of the Federal Insurance Contributions Act, and to
deduct the amount of such contributions from wages and when paid.
Contributions so collected shall be paid into the state agency in
partial discharge of the Borough's liability under this plan. However,
the Borough is aware that failure to deduct such contributions will
not relieve the employee or the Borough of liability therefor.
C.
The Borough hereby agrees to adopt such methods of
financing as are found by the state agency to be necessary for the
proper execution of the plan. The Borough has authorized sufficient
funds to be set aside in its 1953 budget from its various accounts
and departments to pay its share of the contribution for the calendar
year 1951. It has also agreed that a special withdrawal for employee's
contribution shall be made from the individual employee's wages spread
over the year 1953 and has further agreed to advance the employee's
contribution for 1951 so that the full payment may be made upon notice
from the state agency. The Borough has initiated deductions and contributions
since January 1, 1952, and this fund is and will be available upon
completion of the contract.
D.
Delinquent payments due under this plan, with interest
at the rate of 6% per annum, computed at the rate of one-half percent
(1/2%) per month for each month or fraction thereof, may be recovered
by action in a court of competent jurisdiction against the Borough
or, at the discretion of the state agency, may be deducted from any
other moneys payable to the Borough by any department or agency of
the Commonwealth, without prejudice to any other available methods
of collection or enforcement of payment.
[Added 4-13-1953 by Ord. No. 656]
This plan and agreement will be modified at
the request of the Borough to include any coverage group or additional
services not now within the plan, such modification to be consistent
with the provisions of Section 218 of the Social Security Act and
Act No. 491.
[Added 4-13-1953 by Ord. No. 656]
A.
The Borough reserves the right, with respect to each
coverage group herein, to terminate its participation in the Old Age
and Survivors Insurance Program by giving such notice in writing as
the state agency may, by rule or regulation, prescribe, and in the
absence of a rule or regulation, such written notice as will afford
the state agency an opportunity to give a minimum of two years' advance
notice in writing to the Federal Security Administrator of termination
of the coverage of the Borough under this plan, either in its entirety
or with respect to any coverage group. Such notice shall be effective
at the end of the calendar quarter specified in the notice; provided,
however, that this plan may be terminated in its entirety or with
respect to any coverage group only if it has been in effect from the
effective date specified herein for not less than five years prior
to receipt by the Federal Security Administrator of such notice with
respect to any group for which termination is sought.
B.
The Borough does recognize that if the Federal Security Administrator, in the manner outlined in the Federal-Commonwealth Agreement, terminates that agreement in its entirety or with respect to the Borough or any coverage group herein, such termination shall have the same effect on the relationship between the Commonwealth and the Borough as termination under Subsection A of this section.
C.
The state agency, in its discretion, may terminate this plan in its entirety or as to any coverage group if it finds, after due notice and hearing, that there has been a failure to comply substantially with any provisions contained in this plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulations of the state agency and as may be consistent with the provisions of the Social Security Act. If, under this subsection, the plan is terminated with respect to any coverage group, such termination shall be effective also with respect to any additional services in such coverage group included in the plan pursuant to any modification thereof under § 65-10.
[Added 4-13-1953 by Ord. No. 656]
The Borough will comply with such regulations
as the state agency may prescribe to facilitate efficient administration
of this plan and enable the state to carry out the agreement with
the Federal Government. The Borough shall furnish such reports, in
such form and containing such information as the state agency, from
time to time, may require and comply with such provisions as the state
agency or the Federal Security Administrator, from time to time, may
find necessary to assure the correctness and verification of such
reports.
[Added 4-13-1953 by Ord. No. 656]
The Borough hereby agrees to adopt such methods
of administration as are found by the state agency to be necessary
for the proper and efficient administration of the plan, including
cooperation with the local field offices of the Federal Security Agency.[1]
[1]
Editor's Note: Original Section 113(b), which
immediately followed this section and appointed the Manager as local
administrator of the plan, was repealed 4-8-1996 by Ord. No. 1279.
[Added 4-13-1953 by Ord. No. 656]
This plan and agreement shall be operative as
of January 1, 1951, subject to approval and acceptance by the state
agency.
