[HISTORY: Adopted by the Township Board of the Township of Denton 4-10-1991 by Ord. No. 50. Amendments noted where applicable.]
The purpose of this chapter is to create, establish and ratify a Denton Township Pension Plan covering all of the elected officials and full-time employees of the Township; to authorize the Township Supervisor and the Township Clerk to contract, in the name of the Township, for such plan; to set forth respective contributions which are to be made by the Township to the plan on behalf of each elected official or full-time employee; to ratify and affirm other types of insurance now provided for such elected officials and full-time employees; and to repeal all ordinances or parts of ordinances in conflict herewith.
This chapter shall be known and cited as the "Pension Plan Chapter."
Pursuant to Act 77 of the Public Acts of 1989, as amended (MCLA § 41.110b et seq.), Denton Township hereby creates and establishes by ratification a group pension plan to provide retirement benefits for its elected officials and full-time employees as provided hereafter and also hereby authorizes the Township Supervisor and the Township Clerk to contract, in the name of the Township, subject to the approval of the Township Board, with any company authorized to transact such business within the State of Michigan for such group pension plan.
The group pension plan created, established and ratified and contracted for under this chapter shall provide the following contribution formula in arriving at the amount of the annual contribution for each elected official and full-time employee to be made to the plan: The annual contribution for each such person shall be 10% of their annual compensation exclusive of bonuses, commissions or overtime with a minimum annual contribution of $100 or as set by resolution.
The annual contributions as specified above shall be secured from the same fund from which the official or employee receives compensation and paid, in monthly installments, to the company which has contracted with the Township to provide the pension plan. The calculations shall be made as soon as possible after March 31 of each year hereafter as may be practicable based upon the then current salaries of those persons participating in the plan.
The anniversary date of the plan shall be April 1, and all eligible officials and employees may enter into the plan only on such anniversary date. Each person participating in the plan shall have a 100% vested interest in the plan following the third anniversary of such person's entry into the plan.
The pension plan as approved by the Township Board shall provide for a normal retirement age for the receipts of benefits; the accumulation of each beneficiary's pension account; the types of payments of benefits upon becoming eligible; benefits in the event of withdrawal as a result of death, total disability or termination of employment; funding and investment provisions; and payment of plan expenses.
Denton Township hereby ratifies and confirms any other plans of life, health, hospitalization, medical or surgical service and expense and accident insurance or any one or more of such forms of insurance which may be in existence for the benefit of elected officials and full-time employees on the effective date of this chapter, and same shall not be effected by this chapter, such ratification including, but not necessarily limited to, a pension plan approved by Denton Township by resolution passed July 10, 1967, and amended by resolutions passed April 2, 1975, and April 4, 1979.