The Borough of Economy has established a pension plan, effective
January 1, 1988, which shall be known as the "Economy Borough Nonuniform
Employee Pension Plan," hereinafter called the "plan." The effective
date of the restated plan shall be January 1, 1995. The provisions
of the restated plan shall apply only to an employee who terminates
employment after the effective date of the restated plan.
As used in this chapter, the following terms shall have the
meanings indicated:
ACCRUED BENEFIT
As of any given date, the participant's retirement benefit, determined in accordance with the formula provided under §
23-5A, but based on average monthly earnings and service as of the date of determination.
ACTUARIAL EQUIVALENT
Two forms of payment under §§
23-6B and
23-7A of equal actuarial present value on a specified date. The factors used in determining actuarial equivalents shall be 6% interest and UP-1984 Mortality Table rates.
AVERAGE MONTHLY EARNINGS
The average monthly compensation of the participant paid
by the employer during the highest three years paid out of the last
10 years immediately preceding retirement or termination of employment.
BENEFICIARY
Any person or legal entity designated by a participant to
receive death benefits under the plan.
COMPENSATION
The total of all amounts paid to a participant by the employer
for personal services as reported on the participant's federal
income tax withholding statement (Form W-2) and excluding any benefits
paid under the plan.
EARLY RETIREMENT DATE
The date when a participant retires or terminates employment
with the employer if such date is prior to the participant's
normal retirement date but on or after the later of the following
dates:
A.
The date when the participant attains age 60; and
B.
The date when the participant completes five years of service.
ELIGIBLE SPOUSE
The spouse to whom a participant was married on the date
benefit payments under the plan commenced, or if benefit payments
had not so commenced, the spouse to whom the participant was married
on the date of his death.
EMPLOYEE
Any person regularly employed by the employer whose customary
employment is 40 hours or more in one week and for more than five
months in a calendar year.
FUND
The fund administered under the terms of the plan and which
shall include all money, property, investments, policies, and contracts
standing in the name of the plan.
LATE RETIREMENT DATE
The first day of the month coincident with or next following the date when a participant retires subsequent to his normal retirement date, pursuant to the provisions of §
23-5C.
NORMAL RETIREMENT AGE
The later of:
A.
The date when a participant attains age 65; and
B.
The date when the participant completes five years of service.
NORMAL RETIREMENT DATE
The first of the month coincident with or next following
the date when an employee attains normal retirement age.
PARTICIPANT
A person who is or has been in the employment of the employer in an eligible classification (§
23-3A) and for whom a benefit to which he is or may become entitled under the plan has accrued under the plan on account of such employment.
PARTICIPANT ACCOUNT
The ending annuity value of the employer contribution account
under the plan prior to this restatement as shown on the statement
dated in 1995 from American General Life Insurance Company, accumulated
at 6% interest per year from the statement date in 1995 until commencement
of benefits or payment of a lump sum under the plan.
PLAN YEAR
The twelve-month period beginning on January 1 and ending
on December 31.
SERVICE
That period during which an employee was employed continuously
by the employer. Fractions of a year of employment will be included
in computing an employee's service based on the ratio that the
number of complete months of service bears to 12. Service shall include
authorized leave without pay of not more than 12 months.
[Added 12-13-2011 by Ord. No. 432]
A. The purpose
of these plan amendments is to comply with the Pension Protection
Act of 2006 (PPA) and the Heroes Earnings Assistance Relief Tax Act (HEART
Act). Notwithstanding anything in this plan to the contrary,
this plan shall be interpreted so as to comply with the applicable
required provisions of the PPA and the HEART Act.
B. For the
purposes of Code Section 415(b)(1)(A), effective as of January 1,
2008 the applicable mortality table and applicable interest rate are
found in Rev. Rul. 2007-67. The applicable mortality table in Rev.
Rul. 2001-62 was effective from December 31, 2002, through December
31, 2007. From January 1, 2009, through December 31, 2013, the applicable
mortality table is found in IRS Notice 2008-85.
C. 415(c)
compensation. For the purposes of this section, compensation includes
only those items specified in Treas. Reg. § 1.415(c)-2(b)1
or (2) and excludes all items listed in Treas. Reg. § 1.415(c)-2(c),
the terms of which are specifically incorporated herein by reference.
Effective as of January 1, 2009, to the extent required by the Heroes
Earnings Assistance Relief Tax Act of 2008 (HEART Act), differential
wage payments shall be included in compensation.
D. Effective
as of January 1, 2007, an eligible rollover distribution shall include
an eligible rollover distribution containing after-tax contributions
that is transferred in a direct trustee-to-trustee transfer to a 403(b)
annuity contract or a qualified trust under Code Section 401(a) that
agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which
is not so includible.
E. Effective
as of January 1, 2008, a Roth IRA is an eligible retirement plan.
F. Nonspousal
rollover. Effective January 1, 2007, if a beneficiary who is not a
surviving spouse is entitled to receive what would otherwise be an
eligible rollover distribution, the beneficiary may, in accordance
with Code Section 402(c)(11), make a trustee-to-trustee transfer of
that amount to an IRA or individual retirement annuity (other than
an endowment contract); provided that:
(1) The
transfer is made not later than the end of the fourth year after the
year of the participant's death; and
(2) The
account or annuity to which the amount is transferred is treated as
an inherited IRA or individual retirement annuity in accordance with
Code Section 408(d)(3)(C).
G. HEART Act.
Effective for participant deaths occurring while performing qualified
military service [as defined in Code Section 414(u)] on or after January
1, 2007, the plan will provide retirement benefits and service credit
to the extent required by the HEART Act.