[Amended 11-1-2010 by Ord. No. 541]
Pursuant to Act 600 of 1956, as amended, there is hereby established the Borough of Evans City Police Pension Plan, hereinafter referred to as the "plan."
[HISTORY: Adopted by the Borough Council of the Borough of Evans City as indicated in article histories. Amendments noted where applicable.]
[Adopted 12-7-1998 by Ord. No. 481[2]]
[1]
Editor's Note: The Borough of Evans City Police Department was abolished 12-2-2013 by Ord. No. 557 and was replaced by the Evans City/Seven Fields Regional Police Department. See Ch. 9, Art. III.
[2]
Editor's Note: This ordinance also superseded former Ch. 18, Police Pension Fund, adopted 5-6-1985 by Ord. No. 386, as amended.
The plan is to be maintained by the following: a charge against all police officer employees who hold a full-time position in the Police Department of the Borough of Evans City and who work an average of not less than 40 hours per week (as set forth in § 18-6B hereof); by payments made to the Borough of Evans City, Butler County, Commonwealth of Pennsylvania, for the purpose of retirement or disability pensions for police employees under any present or future law providing therefor; by such appropriations thereto as may be lawfully made by the Commission, by gifts, grants and bequests received by the plan and by receipts from investment of the plan. The plan shall be under the direction of the Evans City Borough Council under such regulations as it may from time to time, by resolution prescribe for the benefit of such police employees of the Borough as shall receive an honorable discharge therefrom by reason of age and service or service disability. The pension allowed to those who are retired by reason of service-related disabilities shall be in conformity with a uniform scale.
A.
The Evans City Borough Police Pension Plan shall be managed and administered by the Police Pension Board.
(1)
The Police Pension Board shall consist of three members: a member of the Evans City Borough Council, the Chief of Police and a full-time police officer employee who is a participant of the plan. All members of the Police Pension Board shall be appointed by the Evans City Borough Council.
(2)
The Police Pension Board may appoint from its members such committees with such powers as it shall determine, and may adopt such rules and regulations as may be necessary or appropriate for the conduct of the business of the Police Pension Board, subject to the approval thereof by the Evans City Borough Council.
B.
The Evans City Borough Secretary/Manager shall be the Chief Administrative Officer (CAO) of the plan and shall have primary responsibility for the administration of the pension plan. The duties of the CAO shall be as follows:
(1)
Supervise and direct the preparation of actuarial reports.
(2)
Certify and file actuarial valuations reports with the Public Employee Retirement Commission.
(3)
Make actuarial report information available to plan members.
(4)
Annually determine and submit to the Evans City Borough Council the financial requirements of the pension plan and minimum municipal obligation.
(5)
Provide the Evans City Borough Council with a cost estimate of the effect of any proposed benefit plan modification.
A.
The Evans City Borough Council and the Evans City Chief of Police shall act as trustees of the plan.
B.
The Evans City Borough Treasurer shall forthwith remit to the trustees all funds received for the purposes of the plan or appropriated thereto by Evans City Borough with memorandum as to the source thereof and shall secure its receipt thereof. The trustees shall receive the same and invest any funds not currently required for disbursement in the same manner and in the same kinds of securities as are authorized by law for banks chartered by the Commonwealth of Pennsylvania.
C.
The trustees shall pay benefits out of the plan only at such times, to such persons and in such amounts as may be certified to them by the Secretary of the Police Pension Board at the direction of the Police Pension Board. The trustees shall annually submit to Evans City Borough a detailed report of their administration of the plan, which reports, when so submitted, shall be open to inspection by any interested party.
D.
The plan is hereby authorized to receive any gift, grant, devise or bequest of any money or other property, real, personal or mixed, in trust for the benefit of the plan, and the care, management, investment and disposal of such trust funds of property shall be vested in the trustees having the management of the plan and said trust funds or property shall be administered in accordance with the regulations governing the plan subject to such directions not inconsistent therewith as the donors of such funds or property may prescribe.
E.
The trustees shall be bonded in such amounts as shall be determined by Evans City Borough.
Each police officer employee who is holding a full-time position in the Police Department and who works not less than an average of 40 hours per week for a stated salary or compensation shall become a participant of the plan.
A.
The Evans City Borough Council agrees to contribute to the trustees an amount equal to the Act 205 aid received by Evans City Borough from the moneys received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension, retirement or service-related disability benefits for policemen which shall be used as follows: to reduce the unfunded liability or, after such liability has been funded, to apply against the annual obligation of Evans City Borough for future service and disability reserve costs. It shall be the duty of the Commission to apply such payments in accordance with the provisions of this section.
B. AVERAGE MONTHLY COMPENSATION COMPENSATION(1) (2) SALARY
Definitions. As used in this article, the following terms shall have the meanings indicated:
[Amended 10-1-2007 by Ord. No. 526[1]]
The monthly average of the last 36 months of compensation received preceding the date of determination.
[Amended 11-1-2010 by Ord. No. 541]
Compensation reportable as wages, tips and other compensation on Federal Form W-2 as required by §§ 6041, 6051 and 6052 of the Code,[2] excluding severance payments, accrued vacation payment, accrued sick days payment, or similar nonrecurring compensation. Compensation shall include only that compensation which is actually paid to the participant during the applicable period. In addition, "compensation" shall also mean employer contributions made pursuant to a salary reduction agreement which are not currently includible in the participant’s gross income by reason of the application of the Internal Revenue Code §§ 125, 402(a), 402(h)(1)(B) or 457(a).
The annual compensation of each participant taken into account for determining all benefits provided under the plan for any plan year shall not exceed $150,000, as adjusted for increases in the cost-of-living in accordance with § 401(a)(17)(B) of the Internal Revenue Code. The cost-of-living adjustment in effect for a calendar year applies to any determination period beginning in such calendar year.
If a determination period consists of fewer than 12 months, the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction, the numerator of which is the number of months in the short determination period, and the denominator of which is 12.
Average monthly compensation.
A.
Normal retirement date. The normal retirement date for a participant shall be the first day of the month following his or her 55th birthday, provided that the participant has completed 25 years of credited service and the participant does not continue employment with the Police Department. If a participant, after his normal retirement date, continues employment with the Police Department, his retirement will commence upon his giving written notice of retirement to the Evans City Borough Council. If a participant has not completed 25 years of credited service upon attaining the age of 55, his retirement may not commence until he has completed 25 years of credited service.
B.
Normal retirement benefit. The retirement benefit of a participant shall be equal to 1/2 of his average monthly compensation received during the last 36 months of employment, continuing for life in equal monthly payments and ceasing in the month of death.
C.
Disability retirement benefit.
(1)
If a participant shall quality for a permanent and total service-related disability benefit under the provisions of the plan, and such service-related disability is confirmed by the Police Pension Board, such participant shall be eligible to receive a disability benefit from the plan.
(2)
In the event of a permanent service-related disability, benefits shall become payable to an injured police officer in an amount equal to 50% of the police officer’s salary at the time the disability was incurred, provided that any police officer who receives benefits for the same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall have the disability benefit offset or reduced by the amount of such social security benefits.
[Amended 10-1-2007 by Ord. No. 526]
(3)
"Total and permanent disability" means a physical or mental condition of a member resulting from bodily injury or disease or mental disorder contracted, without fault or misconduct on such officer's part, from the performance of such officer's duties in the Police Department, which renders the member incapable of continuing in the employment as a police officer for the Evans City Borough.
(4)
A determination by the Evans City Borough or its designation agent that a participant is totally and permanently disabled shall be required for such member to receive a disability benefit under the plan. Before making such determination, the Evans City Borough or its designated agent shall secure the opinion of one or more practicing physicians licensed to practice medicine in the Commonwealth of Pennsylvania. The Evans City Borough shall have the right to require a physical examination and a redetermination at its option.
D.
Death benefits.
[Amended 10-1-2007 by Ord. No. 526[1]]
(1)
Qualifications for death benefit.
(a)
The beneficiaries [as defined in Subsection D(4)] of a police officer shall be entitled to receive a death benefit if the police officer dies:
[1]
After he/she has begun receiving benefits under a normal retirement benefit; or
[2]
After he/she has begun receiving disability retirement benefits, provided that such benefits did not terminate prior to his/her death because he/she ceased to be disabled; or
[3]
While still employed by the Borough and after having met the age and service requirements for normal retirement; or
[4]
Prior to commencement of any retirement benefit under this section and was vested in his/her accrued benefit.[2]
[2]
Editor's Note: Former Subsection D(1)(b), which stated that a death benefit under this section would not be paid if the beneficiaries were entitled to receive a killed-in-service death benefit under Subsection D(3), and which immediately followed this subsection, was repealed 11-1-2010 by Ord. No. 541.
(2)
Death benefit form and amount of payments. The death benefit shall be paid in a series of monthly payments:
(a)
Beginning on the first day of the month following the month of the police officer’s death under the conditions described in Subsection D(1)(a)[1], [2] or [3]; or
(b)
Beginning on the first day of the month following the expected normal retirement date of the deceased police officer and described in Subsection D(1)(a)[4]; and
(c)
Continuing on the first day of each succeeding month until there is no person who qualifies as a beneficiary; and
(d)
In a monthly amount equal to:
[1]
Fifty percent of the monthly amount being received by the police officer at the time of his/her death, or would have been receiving had the police officer been retired at the date of death, described in Subsection D(1)(a)[1], [2] or [3]; or
[2]
Fifty percent of the monthly vested accrued amount the police officer would have been entitled to receive described in Subsection D(1)(a)[4].[3]
[3]
Editor's Note: Former Subsection D(3), Killed-in-service death benefit, which immediately followed this subsection, was repealed 11-1-2010 by Ord. No. 541.
(3)
Beneficiaries.
(a)
For purposes of the death benefit, the beneficiary of a police officer shall be his/her spouse. If there is no spouse or if the spouse survives and subsequently dies, then the death benefit shall be payable to the police officer’s child or children who have not yet attained age 18 (or are attending college and have not yet attained age 23). For purposes of this subsection, a person is “attending college” if he/she is registered at an accredited institution of higher learning and is carrying a minimum course load of seven credit hours per semester. The death benefit shall be payable to eligible children in equal shares.
[Amended 11-1-2010 by Ord. No. 541]
(b)
For purposes of the death benefit return of contributions in Subsection D(4), the beneficiaries shall be the spouse and eligible children as above. In the case where there is not a spouse or eligible children, the participant may designate the beneficiary to whom the death benefit return of contributions shall be paid.
(4)
Death benefit return of accumulated contributions.
(a)
In general. If a police officer dies at a time when his/her beneficiaries are not eligible to receive a death benefit or he/she has no beneficiaries, and he/she has not received any payments under a normal retirement benefit, disability retirement benefit, or vested benefit, then the plan shall distribute an amount equal to the amount of the police officer’s accumulated contributions plus interest at the rate of 5% per annum to the police officer’s named beneficiaries. If the police officer failed to designate a beneficiary or if no designated beneficiary shall have survived the police officer, the distribution shall be made to the estate of the police officer.
[Amended 11-1-2010 by Ord. No. 541]
(5)
No other death benefits. Except as provided in this section, no police officer or former police officer and no estate, heir, or beneficiary of any police officer or former police officer shall receive any payment or benefit under this plan or from the trust due to the death of a police officer or former police officer.
E.
Accrued benefit and vested benefit.
(1)
Accrued benefit. A member's accrued benefit as of any applicable date will be equal to the product obtained by multiplying the normal retirement benefit determined in accordance with Subsection B, above, using average monthly compensation as of the date employment terminated by a fraction, the numerator of which is the years of service to the date employment terminated and the denominator of which is the total years of service the member would have earned if the member continued to work to the normal retirement date.
(2)
Vested benefit. A member who terminates employment with Evans City Borough prior to the member's normal retirement date shall have a vested benefit calculated by multiplying the member's accrued benefit by the following applicable percentage:
Years of Service | Vesting Percentage |
|---|---|
Less than 12 years | 0% |
Twelve years or more | 100% |
F.
Cost of living adjustment. The Evans City Borough Council shall have the authority, upon the recommendation of the Police Pension Board, to provide by resolution for a cost of living increase for those participants in the plan receiving retirement benefits and who qualify under applicable law. These cost of living increases may be granted; provided, however, that such cost of living increase shall not exceed the following:
(1)
The percentage increase in the Consumer Price Index from the year in which the police officer last worked.
(2)
In no case shall the total police pension benefits exceed 75% of the salary used for computing basic retirement benefits.
(3)
The total cost-of-living increase shall not exceed 30%. No cost of living increase shall be granted which would impair the actuarial soundness of the Evans City Borough Police Pension Plan. Prior to the recommendation of the cost of living increase, the Police Pension Board shall direct the fund actuary to submit a written cost estimate of the funding cost of such an adjustment.
The establishment of the plan shall not be construed as conferring any legal rights upon any police officer or other person to a continuation of employment nor shall it interfere with the rights of the Borough to discharge any police officer or to treat him or her without regard to the effect such treatment might have upon him or her as a member of the plan.
Except insofar as may otherwise be required by law, no benefit under the plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be voided, except as specifically provided in the plan, nor shall any such benefits be in any manner liable for or subject to garnishment, attachment, execution, levy for other legal process for the collection of debts or liable for or subject to the debts, contract, liabilities, engagements or torts of the person entitled to such benefit.
Any member of the police force of the Evans City Borough who has been a regularly appointed employee of Evans City Borough for a period of six months and who thereafter shall enter into the military service of the United States shall have credited to his employment record for pension or disability benefits all of the time spent by him or her in such service of the United States military if such person returns or has heretofore returned to his employment within six months after his separation from the service.
Notwithstanding any information that is made available by the Evans City Borough Council, the Police Pension Board or the trustees to members of the plan through the distribution of descriptive booklets, bulletin board notices, payroll notices or oral announcement, any member of the plan may examine the plan and all amendments thereto at the main office of Evans City Borough at such mutually convenient time as is arranged by the members and a representative of the Evans City Borough and/or the Board of Trustees
A.
Administrative expenses. The expenses of administration of the plan established by this article, including the compensation of the actuary and the bond for the trustees of the plan, exclusive of the payment of retirement or disability benefits, may be paid from plan assets.
B.
Amendment of article. Insofar as the provisions of this article are the same as statutory provisions, they shall be subject to change or repeal to comply with any future statutory provisions and the provisions of this article may be amended or repeated if statutory authority is granted therefor or if statutory restrictions or mandates are eliminated and discretion vested in Evans City Borough.
C.
Vacancies. In the event that the office of Chief of Police shall become vacant, the rights and duties provided for the Chief of Police under this article shall be fulfilled by the officer in charge.
[Adopted 12-7-1998 by Ord. No. 482]
A. ACCOUNT CODE COMMITTEE COMPENSATION(1) (2) (3) (4) CONVERSION DATE EARLY RETIREMENT DATE EFFECTIVE DATE OF THE PLAN EMPLOYER FULL-TIME EMPLOYEE IRS LABOR DEPARTMENT NORMAL RETIREMENT DATE PARTICIPANT OR MEMBER PERMANENT AND TOTAL DISABILITY PLAN PLAN YEAR REGULATIONS RETIREMENT DATE TRUST OR TRUST FUND TRUSTEE VALUATION DATE VESTED BENEFIT
When used herein, the following terms shall have the following meanings:
The account established and maintained with respect to a participant pursuant to § 18-17.
The Internal Revenue Code of 1986, as now in effect or as hereafter amended. All citations to sections of the Code are to such sections as they may, from time to time, be amended or renumbered.
The Committee provided for in § 18-28.
Compensation reportable as wages, tips and other compensation on Federal Form W-2 as required by Sections 6041, 6051 and 6052 of the Code, excluding severance payments. Compensation for any self-employed individual shall be equal to his earned income. "Compensation" shall include only that compensation which is actually paid to the participant during the applicable period.
In addition, "compensation" shall also mean employer contributions made pursuant to a salary reduction agreement which are not currently includible in the participant's gross income by reason of the application of Code Sections 125, 402(a), 402(h)(1)(B) or 457(a).
The annual compensation of each participant taken into account for determining all benefits provided under the plan for any plan year shall not exceed $150,000, as adjusted for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Internal Revenue Code. The cost of living adjustment in effect for a calendar year applies to any determination period beginning in such calendar year.
If a determination period consists of fewer than 12 months, the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction, the numerator of which is the number of months in the short determination period and the denominator of which is 12.
January 1, 1998, the date as of which this plan is converted from a defined benefit plan to a defined contribution plan.
The date provided in § 18-23.
January 1, 1998, the date on which this amended and restated plan becomes effective.
Borough of Evans City.
An employee whose customary employment is for 35 or more hours per week.
The United States Internal Revenue Service.
The United States Department of Labor.
The date defined in § 18-23A.
Any employee who is enrolled in the participation of the plan as provided in § 18-17.
The condition under which a participant qualifies for and begins to receive a permanent and total disability benefit from the United States Government under the provisions of the Federal Old Age and Survivors Insurance Act (generally called the Social Security Act, as said Act is presently constituted and as the same may be hereafter amended).
Borough of Evans City Nonuniformed Employees Money Purchase Pension Plan.
The twelve-month consecutive period which begins on January 1 and ends on December 31.
The applicable regulations issued under the Code or the Act by the IRS, the Labor Department or any other governmental authority and any temporary rules promulgated by such authorities pending the issuance of such regulations.
A participant's normal retirement date, early retirement date, or postponed retirement date, whichever has become effective pursuant to § 18-23.
The trust established by the employer as a part of the plan.
The trustee or trustees of the trust.
The last day of each plan year and any other date as the Committee, in its discretion, may, from time to time, determine.
The portion of a participant's account which has become nonforfeitable pursuant to § 18-24.
B.
Any masculine pronoun includes the feminine and any singular reference means the plural, wherever appropriate.
A.
If it is found that the benefits provided under the plan with respect to a participant are incorrect because of a misstatement as to his age, length of credited service, earnings or any other relevant fact, the benefits shall be equitably adjusted on the basis of the correct facts with respect to such participant. The amount of the benefits will be adjusted to the amount which could have been provided on the basis of the correct facts.
B.
If it is ascertained that an overpayment has been made, the amount of such overpayment will be charged against any further payments to the participant. If it is ascertained that an underpayment has been made by the plan, the amount of such underpayment shall be paid by the plan to the participant or person entitled thereto, subject to the sufficiency of the trust fund of the plan.
In connection with the administration of the plan, the practice of the Committee, whenever there is a choice or decision to be made with respect to participants of the plan, shall be uniformly applied to all similar circumstances, with the result that there shall be no discrimination in the operation of the plan.
The plan shall be construed, regulated and administered under the laws of the Commonwealth of Pennsylvania.
A.
Enrollment.
(1)
Each full-time employee (as defined in § 18-13) who was actively participating under the provisions of the defined benefit plan immediately before the conversion date shall continue as an active participant under this amended plan.
(2)
Each other full-time employee (as defined in § 18-13) shall be enrolled in the participation of the plan on the last day of the month following completion of six months of full-time employment.
(3)
Notwithstanding Subsection A(2), each full-time employee who separated from service and who subsequently returns to full-time service shall be enrolled in the participation of the plan upon the completion of six months of full-time service measured from his date of reemployment.
(4)
The Committee shall take any necessary or appropriate action to enroll each employee eligible to be enrolled under this § 18-17 and, if it is determined that an eligible employee has for any reason not been enrolled in the participation of the plan, such employee shall be retroactively enrolled. The account of an employee who is retroactively enrolled shall, upon such enrollment, consist solely of the aggregate amount of contributions which would have been allocated to his account had he been enrolled when first eligible.
C.
The Committee shall establish and maintain or cause to be established and maintained in respect to each participant an account showing his interest under the plan and in the trust fund and all relevant data pertaining thereto. Each participant shall be furnished with a written statement of his account at least annually and upon any distribution to him. In maintaining the accounts under the plan, the Committee can conclusively rely on the valuations of the trust fund in accordance with the plan and the terms of the trust.
D.
The establishment and maintenance of or allocations and credits to the account of any participant shall not vest in any participant any right, title or interest in and to any plan assets or benefits except at the time or times and upon the terms and conditions and to the extent expressly set forth in the plan in accordance with the terms of the trust.
A.
The total amount of the contribution to the trust fund to be made by the employer for each plan year shall be equal to 7.5% of each participant's compensation while an active participant, plus the amount of any expenses which are to be paid from the trust.
B.
The employer may make payment of its contribution for any plan year on any date or dates it elects, provided that the total amount of its contribution for any plan year shall be paid in full within 2 1/2 months after the end of such year.
C.
The employer's contribution for a plan year shall be paid directly by the employer to the Trustee in cash or, at the option of the employer, in whole or in part, in other property acceptable to the trustee. On or about the date of such payment, the Committee shall be advised of the amount of such payment upon which its allocation is to be calculated.
D.
An employer contribution which is made by a mistake of fact shall be returned to the employer to the extent indicated below within one year after the payment of the contribution. The amount which may be returned to the employer is the excess of the amount contributed over the amount that would have been contributed had there not occurred a mistake of fact. Earnings attributable to the excess contribution may not be returned to the employer, but losses attributable thereto must reduce the amount to be so returned. Furthermore, if the withdrawal of the amount attributable to the mistaken contribution would cause the balance of the account to be reduced to less than the balance which would have been in the account had the mistaken amount not been contributed, then the amount to be returned to the employer would have to be limited so as to avoid such reduction.
The employer's contribution for the plan year (except such amount allocated to pay expenses of the plan) shall be allocated among and credited to the accounts of participants pro rata based on their compensation earned during the period they were participating in the plan during the plan year.
There are no employee contributions.
A.
All moneys, securities or other property received as contributions under the plan shall be delivered to the trustee under the trust to be managed, invested, reinvested and distributed in accordance with the plan, the trust and any agreement with an insurance company or other financial institution constituting a part of the plan and trust.
B.
Directed investment account.
(1)
Each participant will direct the trustee as to the investment of all or a portion of the interest in any one or more of his individual account balances. Participants may direct the Trustee by completing the participant election form which is distributed before January 1 and July 1 of each plan year or in any other manner which is established by the administrator to invest any portion of their account in specific assets, specific funds or other investments permitted under the plan and the directed investment procedure. That portion of the account of any participant so directing will thereupon be considered a directed investment account, which shall not share in trust fund earnings.
(2)
A separate directed investment account shall be established for each participant who has directed an investment. Transfers between the participant's regular account and his directed investment account shall be charged and credited as the case may be to each account. The directed investment account shall not share in trust fund earnings, but it shall be charged or credited as appropriate with the net earnings, gains, losses and expenses as well as any appreciation or depreciation in market value during each plan year attributable to such account.
(3)
The Administrator shall establish a procedure, to be applied in a uniform and nondiscriminatory manner, setting forth the permissible investment options under this subsection, how often changes between investments may be made and any other limitations that the Administrator shall impose on a participant's right to direct investments.
C.
Limits on transactions.
(1)
The Trustee shall not cause the plan to engage in a transaction, if he knows or should know that such transaction constitutes a direct or indirect:
(a)
Sale or exchange, or leasing, of any property between the plan and a party in interest (as defined in Subsection E);
(b)
Lending of money or any other extension of credit between the plan and a party in interest;
(c)
Furnishing of goods, services or facilities between the plan and a party in interest;
(d)
Transfer to or use by or for the benefit of a party in interest, of any assets of the plan; or
(e)
Acquisition, on behalf of the plan, of any employer security or employer real property in violation of the provisions of this section.
D.
The Trustee shall not:
(1)
Deal with the assets of the plan in its own interest or for its own account;
(2)
In its individual capacity or any other capacity act in any transaction involving the plan on behalf of a party (or represent a party) whose interests are adverse to the interest of the plan or the interest of its participants or beneficiaries; or
(3)
Receive any consideration for its own personal account from any party dealing with the plan in connection with a transaction involving the assets of the plan.
E.
For the purpose of this section, the term "party in interest" means:
(1)
Any fiduciary of the plan.
(2)
A person providing services to the plan.
(3)
An employer, any of whose employees are covered by the plan.
(4)
A union whose members are covered by the plan.
(5)
An owner of the employer as defined in the Employee Retirement Income Security Act of 1974.
(8)
Any other person, individual, corporation, partnership, trust or estate who is considered a party in interest within the meaning of Employee Retirement Income Security Act of 1974.
F.
Nothing in this section shall preclude the trustee from receiving any reasonable compensation for services rendered or for the reimbursement of expenses properly and actually incurred in the performance of his duties with the plan, except that no person so serving who already received full-time pay from the employer or from any collective bargaining unit whose members are participants in the plan shall receive compensation from the plan, except reimbursement of expenses properly and actually incurred.
A.
Allocation of earnings.
(1)
In general. As of each valuation date, before allocation of employer contributions, any earnings or losses (net appreciation or net depreciation) of the trust fund shall be allocated in the same proportion the each participant's and former participant's accounts as of the preceding valuation date bear to the total of all participants' and former participants' accounts as of such date.
(2)
Earnings on distributions. If any account of a participant has been distributed prior to the valuation date subsequent to a participant's termination of employment, no earnings or losses shall be allocated to such accounts.
(3)
Earnings on directed accounts. Directed investment accounts shall not share in trust fund earnings, but it shall be charged or credited as appropriate with the net earnings, gains, losses and expenses as well as any appreciation or depreciation in market value during each plan year attributable to such account.
B.
In making the allocations in accordance with Subsection A above, the Committee can conclusively rely on the valuations of the trust fund by the Trustee and in accordance with the plan and terms of the trust. Such valuation shall be conclusive and binding upon all persons having an interest in the trust fund.
C.
The expenses of administering the plan, including the fees and expenses of any employee and of the trustee for the performance of their duties under the plan and trust, the expenses incurred by the members of the Committee in the performance of their duties under the plan (including reasonable compensation for any legal counsel, certified public accountants, consultants and agents and cost of services rendered in respect of the plan) and all other proper charges and disbursements of the trustee or the members of the Committee (including settlements of claims or legal actions approved by counsel to the plan) may be paid out of the trust fund, if the employer does not pay such expenses directly in such proportions as shall be determined by the Committee.
D.
Brokerage fees, transfer taxes and any other expenses incident to the purchase or sale of securities by the trustee shall be deemed to be part of the cost of such securities or deducted in computing the proceeds therefrom, as the case may be. Taxes, if any, of any and all kinds whatsoever which are levied or assessed on any assets held or income received by the Trustee shall be allocated to and deducted from the accounts of participants by the Committee in accordance with the provisions of Subsection A above.
A.
Normal retirement date. The normal retirement date of a participant shall be the date a participant attains his 65th birthday.
B.
Postponed retirement date. A participant who remains in service after his normal retirement date shall be retired on a postponed retirement date which shall be the date of his termination of service. A participant whose employment continues beyond his normal retirement date shall continue to receive allocations under the provisions of § 18-19.
C.
Early retirement date. A participant may retire from the employ of the employer on the date a participant attains his 55th birthday and completes 20 years of service. His early retirement date shall be the first day of the month coincident with or next following his termination of service.
D.
Permanent and total disability date. A permanent and total disability benefit shall be paid to a participant who satisfies the condition of permanent and total disability.
A participant shall always be 100% vested in his account(s) under the plan.
A.
Time of distribution of benefits to living participants.
(1)
Upon retirement or termination of service. Distribution of benefits to a participant who terminates employment for any reason shall commence as soon as administratively possible on or after the participant's date of termination of service.
C.
Distribution of death benefits. If a participant dies before his entire interest has been distributed to him, his remaining interest shall be distributed in a lump sum cash payment or cash installment payments to his beneficiary, determined in accordance with § 18-27, within one year of his date of death, as elected by the beneficiary.
A.
Section takes precedence. The provisions of this § 18-26 shall govern notwithstanding any other provisions of the plan.
B.
Limitation on allocation to participants' accounts.
(1)
The amount of annual additions which the Committee may allocate under this plan on a participant's behalf for a limitation year shall not exceed the maximum permissible amount. Prior to the determination of the participant's actual compensation for a limitation year, the Committee may determine the estimated annual compensation for such limitation year. The Committee shall make this determination on a uniform and reasonable basis for all participants similarly situated. The Committee shall reduce any employer contributions (including any allocation of forfeitures) based on estimated annual compensation by any excess amount carried over from prior limitation years. As soon as is administratively feasible after the end of the limitation year, the Committee shall determine the maximum permissible amount for the limitation year on the basis of the participant's actual compensation for the limitation year. All defined contribution plans (including voluntary employee contribution accounts in a defined benefit plan and key employee accounts under a welfare benefit plan described in Code Section 419, as well as employer contributions allocated to an IRA) of the employer, whether or not terminated, will be treated as one defined contribution plan for purposes of the limitations under Section 415(c) of the Code.
(2)
Disposition of excess amount. If the Committee allocated an excess amount to a participant's account for a limitation year, the Committee shall dispose of the excess amount as follows:
(a)
The Committee shall return any nondeductible voluntary employee contributions to the participant to the extent that the return would reduce the excess amount.
(b)
If, after the application of Subsection B(2)(a), an excess amount still exists and the plan covers the participant at the end of the limitation year, then the Committee shall use the excess amount(s) to reduce future employer contributions (including any allocation of forfeitures) under the plan for the next limitation year and for each succeeding limitation year, as is necessary, for the participant.
(c)
If, after the application of Subsection B(2)(a), an excess amount still exists, and the plan does not cover the participant at the end of the limitation year, then the Committee shall hold the excess amount unallocated in a suspense account. The Committee shall apply the suspense account to reduce employer contributions (including allocation of forfeitures) for all remaining participants in the next limitation year, and in each succeeding limitation year as necessary.
(d)
The Committee shall not distribute any excess amount(s) to participants or to former participants.
(3)
If the participant presently participates or has ever participated under a defined benefit plan maintained by the employer, then the sum of the defined benefit plan fraction and the defined contribution plan fraction for the participant for any limitation year which begins prior to January 1, 2000, shall not exceed 1.0. If, in any such limitation year, the sum of the defined benefit plan fraction and the defined contribution plan fraction on behalf of a participant does exceed 1.0, then the employer shall reduce its contribution on behalf of such participant to the defined contribution plan to the extent necessary to prevent the sum of the defined contribution plan fraction and the defined benefit plan fraction from exceeding 1.0.
(4) ANNUAL ADDITIONS COMPENSATION(a) (b) DEFINED BENEFIT PLAN DEFINED BENEFIT PLAN FRACTION(a) (b) DEFINED CONTRIBUTION PLAN FRACTION EMPLOYER EXCESS AMOUNT LIMITATION YEAR MAXIMUM PERMISSIBLE AMOUNT
PROJECTED ANNUAL BENEFIT
Definitions. For purposes of this Subsection B, the following terms shall mean:
The sum of the following amounts allocated on behalf of a participant for a limitation year: all employer contributions; all forfeitures; and the amount of all nondeductible employee contributions. For the purposes of this section, annual additions also shall include excess amounts reapplied to reduce employer contributions under Subsection B.
In general, the term "compensation" means the compensation of the participant from the employer for the limitation year.
Certain deferrals included. "Compensation" shall include any amount which is contributed or deferred by the employer at the election of the employee by reason of Section 125 or 457 of the Code.
A retirement plan which does not provide for individual accounts for employer contributions. The Committee shall treat all defined benefit plans (whether or not terminated) maintained by the employer as a single plan, and the Committee shall treat all defined contribution plans (whether or not terminated) maintained by the employer as a single plan.
A fraction, the numerator of which is the sum of the participant's projected annual benefits under all the defined benefit plans (whether or not terminated) maintained by the employer and the denominator of which is the lesser of:
Notwithstanding the above, if the participant was a participant in a plan in existence on July 1, 1982, the denominator of this fraction will not be less than 125% of the sum of the annual benefits under such plans which the participant had accrued as of the later of September 30, 1983, or the end of the last limitation year beginning before January 1, 1983. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Section 415 as in effect at the end of the 1982 limitation year. For purposes of this subsection, a master or prototype plan with an opinion letter issued before January 1, 1983, which was adopted by the employer on or before September 30, 1983, is treated as a plan in existence on July 1, 1982.
A fraction, the numerator of which is the sum of the annual additions to the participant's account under all the defined contribution plans (whether or not terminated) maintained by the employer for the current and all prior limitation years, [including the annual additions attributable to the participant's nondeductible employee contributions to this and all other defined benefit plans (whether or not terminated) maintained by the employer], and the denominator of which is the sum of the maximum aggregate amounts for the current and all prior limitation years of service with the employer (regardless of whether a defined contribution plan was maintained by the employer). The maximum aggregate amount in any limitation year is the lessor of:
In the case of a group of employers which constitutes a controlled group of corporations [as defined in Code Section 414(b) as modified by Code Section 415(h)], which constitutes trades or businesses (whether or not incorporated) which are under common control [as defined in Code Section 414(c) as modified by Code Section 415(h)] or which constitutes an affiliated service group as defined by Code Section 414(m), all such employers shall be considered a single employer for purposes of applying the limitations of this § 18-26.
The excess of the participant's annual additions credited to the participant's account for the limitation year over the maximum permissible amount.
The plan year.
For a limitation year, the maximum permissible amount with respect to any participant shall be the lesser of $30,000 (or, beginning January 1, 1986, such larger amount as the Commissioner of Internal Revenue may prescribe) or 25% of the participant's compensation for the limitation year. If there is a short limitation year because of a change in limitation year, the Advisory Committee will multiply the $30,000 limitation (or larger limitation) by the following fraction:
Number of months in the short limitation year |
12 |
The annual retirement benefit (adjusted to an actuarially equivalent straight life annuity if the plan expresses such benefit in a form other than a straight life annuity or qualified joint and survivor annuity) of the participant under the terms of the defined benefit plan on the assumptions he continues employment until his normal retirement age as stated in the defined benefit plan, his compensation continues at the same rate as in effect in the limitation year under consideration until the date of his normal retirement age, and all other relevant factors used to determine benefits under the defined benefit plan remain constant as of the current limitation year for all future limitation years.
Each participant will designate the beneficiary to whom the death benefits, if any, shall be paid in the event of his death prior to retirement. Each participant has the right, from time to time, to change any designation of beneficiary and the interest of any beneficiary will be subject to such right. A designation or change of beneficiary must be in writing on forms supplied by the Committee, and any change of beneficiary will not become effective until such change of beneficiary is filed with the Committee, whether or not the participant is alive at the time of such filing, but subject to any action taken or payment made on direction of the Committee prior to such filing. The interest of any beneficiary who dies before the participant will terminate unless otherwise provided. If a beneficiary is not validly designated, cannot be found or is not living at the date of payment, any amount payable pursuant to this plan will be paid to the executors or administrators of the participant's estate.
A.
The Committee shall have general responsibility for the administration and interpretation of the plan (including, but not limited to, complying with reporting and disclosure requirements, establishing and maintaining plan records and adopting amendments to the plan as described in § 18-30A). The Committee shall engage such enrolled actuaries or certified public accountants, who may be accountants for the employer, as it shall require or may deem advisable for purposes of the plan.
B.
The Trustee shall have responsibility under the plan for the management and control of the assets of the plan. The Committee shall periodically review the investment performance and methods of the trustee and any other funding agency, including any insurance company, under the plan and, with the approval of the Borough of Evans City Council, may appoint and remove or change the trustee and any such funding agency. The Committee shall have the power to appoint or remove one or more investment advisers and to delegate to such adviser authority and discretion to manage (including the power to acquire and dispose of) the assets of the plan, provided that each adviser with such authority and discretion shall be either a bank, an insurance company or a registered investment adviser under the Investment Advisers Act of 1940 and shall acknowledge, in writing, that it is a fiduciary with respect to the plan and the Committee shall periodically review the investment performance and methods of each adviser with such authority and discretion. The Committee shall establish any requirements and objectives of the plan (including any interest rate or other actuarial assumptions) which may be pertinent to the investment of plan assets and shall establish investment standards and policies incorporating such requirements and objectives and communicate the same to the trustee (or other funding agencies under the plan).
C.
The Committee may arrange for the engagement of such legal counsel, who may be counsel for the employer, and make use of such agents and clerical or other personnel as they each shall require or may deem advisable for purposes of the plan. The Committee may rely upon the written opinion of such counsel and the accountants engaged by the Committee and may delegate to any such agent or to any subcommittee or member of the Committee its authority to perform any act hereunder, including, without limitation, those matters involving the exercise of discretion, provided that such delegation shall be subject to revocation at any time at the discretion of said Committee. The Committee shall report to the Borough of Evans City Council, no less frequently than at each annual meeting as shall be specified by the Council, with regard to the matters for which it is responsible under the plan.
D.
The Committee shall consist of at least three members, two of whom shall be appointed by, shall remain in office at the will of and may be removed, with or without cause, by the Borough of Evans City Council, and one of which shall be appointed by, shall remain in office at the will of and may be removed, with or without cause, by the nonuniformed employees. Any member of said Committee may resign at any time. No member of said Committee shall be entitled to act on or decide any matter relating solely to himself or any of his rights or benefits under the plan. The members of the Committee shall not receive any special compensation for serving in their capacities as members of such Committee but shall be reimbursed for any reasonable expenses incurred in connection therewith. No bond or other security need be required of the Committee or any member thereof in any jurisdiction. Any member of said Committee, any subcommittee or agent to whom said Committee delegates any authority and any other person or group of persons may serve in more than one fiduciary capacity (including service both as a trustee and administrator) with respect to the plan.
E.
The Committee shall elect or designate its own Chairman, establish its own procedures and the time and place for its meetings and provide for the keeping of minutes of all meetings, copies of which shall be delivered to the Council. A majority of the members of the Committee shall constitute a quorum for the transaction of business at a meeting of the Committee. Any action of the Committee may be taken upon the affirmative vote of a majority of the members of the Committee at a meeting or, at the direction of its Chairman, without a meeting, by mail, telegraph or telephone, provided that all of the members of the Committee are informed by mail or telegraph of their right to vote on the proposal and of the outcome of the vote thereon.
F.
The Committee shall appoint an individual who shall cause to be kept full and accurate accounts of receipts and disbursements of the plan and shall cause to be deposited all funds of the plan to the name and credit of the plan, in such depositories as may be designated by the Committee. Such individual shall cause to be disbursed the moneys and funds of the plan when so authorized by the Committee and shall generally perform such other duties as may be assigned to him from time to time by such Committee.
G.
All demands for money of the plan shall be signed by such officer or officers or such other person or persons as the Committee may, from time to time, designate in writing.
H.
All disputed claims for benefits under the plan shall be submitted to and within a reasonable period of time decided by the Committee. Written notice of the decision on each such claim shall be furnished reasonably promptly to the claimant. If the claim is wholly or partially denied, such written notice shall set forth an explanation of the specific findings and conclusions on which such denial is based. A claimant may review all pertinent documents and may request a review by the Committee of such a decision denying the claim. Such a request shall be made in writing and filed with the Committee within a reasonable period of time, as specified by said Committee in writing from time to time, after delivery to said claimant of written notice of said decision. Such written request for review shall contain all additional information which the claimant wishes the Committee to consider. The Committee may hold any hearing or conduct any independent investigation which it deems necessary to render its decision, and the decision on review shall be made as soon as possible after the Committee's receipt of the request for review. Written notice of the decision on review shall be promptly furnished to the claimant and shall include specific reasons for such decision. For all purposes under the plan, such decisions on claims (where no review is requested) and decisions on review (where review is requested) shall be final, binding and conclusive on all interested persons as to participation and benefit eligibility, the employee's amount of compensation and as to any other matter of fact or interpretation relating to the plan.
I.
To the maximum extent permitted by law, no member of the Committee shall be personally liable by reason of any contract or other instrument executed by him or on his behalf in his capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the employer shall indemnify and hold harmless, directly from its own assets (including the proceeds of any insurance policy the premiums of which are paid from the employer's own assets), each member of the Committee and each other officer, employee or director of the employer to whom any duty or power relating to the administration or interpretation of the plan or to the management and control of the assets of the plan may be delegated or allocated against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the employer) arising out of any act or omission to act in connection with the plan unless arising out of such person's own fraud or bad faith.
J.
Specifically, but not by way of limitation, the Trustee, if any, is authorized and empowered to invest and reinvest all or any part of the trust fund through the medium of a common trust fund maintained by a bank, provided that as long as this trust has any investments in a common trust fund available only to trusts which meet the requirements of Section 401(a) and related sections of the Code or corresponding provisions of specific income tax laws of the United States, such common trust fund shall constitute an integral part of this part of this trust and of the plan.
A.
In general. Except insofar as may otherwise be required by law, no benefit under the plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to do shall be void, except as specifically provided in the plan, nor shall any such benefits be in any manner liable for or subject to garnishment, attachment, execution, levy or other legal process for the collection of debts or liable for or subject to the debts, contract, liabilities, engagements or torts of the person entitled to such benefit.
B.
Domestic relations orders.
(1)
Notwithstanding Subsection A, the plan shall pay benefits in accordance with the applicable requirements of any domestic relations order in accordance with procedures established by the Committee.
(2) ALTERNATE PAYEE DOMESTIC RELATIONS ORDER
Definitions. For purposes of this Subsection B, the following terms shall have the meanings indicated:
Any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all or a portion of the benefits payable under the plan with respect to such participant.
A court order which creates and recognizes the existence of an alternate payee's right to or assigns to an alternate payee the right to receive all or a portion of the benefits payable with respect to a participant under this plan, and with respect to which the requirements of Subsections B(3) and (4) are met and, is a judgment, decree or order (including approval of a property settlement agreement) which relates to the provision of child support, alimony payments or marital property rights to a spouse, former spouse, child or other dependent of a participant and is made pursuant to a state domestic relations law (including a community property law).
(3)
Specifications of order. A domestic relations order meets the requirements of this subsection only if such order clearly specifies:
(a)
The name and the last known mailing address (if any) of the participant and the name and mailing address of each alternate payee covered by the order;
(b)
The amount or percentage of the participant's benefits to be paid by the plan to each such alternate payee, or the manner in which such amount or percentage is to be determined;
(c)
The number of payments or period to which such order applies; and
(4)
Terms of order. A domestic relations order meets the requirements of this subparagraph only if such order:
(a)
Does not require the plan to provide any type or form of benefits or any option not otherwise provided under the plan;
(b)
Does not require the plan to provide increased benefits (determined on the basis of actuarial value); and
(c)
Does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another domestic relations order previously recognized by the plan.
A.
This plan may be amended or terminated at any time by the employer, subject to 90 days' prior notice in writing to the Trustee and the Committee; provided, however, that no modification or amendment which affects the rights, duties and responsibilities of the Trustee may be made without the Trustee's consent; and provided, further, that no termination, modification or amendment shall permit any part of the corpus or income of the trust fund to be used for or diverted to purposes other than for the exclusive benefit of participants under the plan and their beneficiaries. Any such amendment or termination of the plan shall be accomplished by a written resolution adopted by the Borough of Evans City Council.
B.
Termination.
(1)
In the event of termination of the trust, partial termination or complete discontinuance of the employer's contributions, distribution of the trust fund, less any amounts constituting charges and expenses payable from the trust fund, shall be made upon the direction of the Committee as provided in this section. The trustee, however, shall have no duty to determine whether payments made pursuant to distribution ordered by the Committee constitute any use or diversion of the trust fund for purposes other than those provided for in the plan.
(2)
If the employer terminates the plan as provided in Subsection B(1), the Committee shall compute the value of the trust assets held for the benefit of the participants, retired participants, terminated participants and their beneficiaries otherwise eligible to receive benefits under the plan. The Committee shall allocate the amount so valued to all such participants, retired participants, terminated participants and their beneficiaries otherwise eligible to receive benefits under the plan. The Committee shall allocate the amount so valued to all such participants, retired participants, terminated participants and their beneficiaries as determined in Subsection C below, but such allocation shall be reduced by the value of any prior payments of the plan from their account.
C.
Liquidation of the trust fund. Upon termination of the plan or complete discontinuance of employer contributions, the accounts of all participants affected thereby shall become fully vested, and the Committee shall direct the Trustee to distribute the assets remaining in the trust fund, (after payment of any expenses properly chargeable thereto) to participants, former participants and beneficiaries in proportion to their respective account balances.
D.
Manner of distribution. To the extent that no discrimination in value results, any distribution after termination of the plan may be made, in whole or in part, in cash, in securities or other assets in kind, or in nontransferable annuity contracts, as the Committee (in its discretion) may determine. All noncash distributions shall be valued at fair market value at the date of distribution.
A.
Joinder of other affiliated employer organizations. In the event that the Borough Council or equivalent governing body of any subsidiary or affiliated or associated corporation of the appropriate action with the written consent of the Borough Council, such corporation shall participate in this plan and the trust upon execution of a joinder agreement which shall provide, as a minimum, an agreement by such affiliate to be bound by the provisions of this plan and the trust agreement, an appointment of the Borough Council, the Committee and the trustee as the exclusive agent of the affiliate to exercise on its behalf all of the power and authority conferred on them hereby or by the trust agreement, and the terms, conditions and procedures for a termination of the plan and a distribution of the assets of the trust as to said affiliate. The authority of the Borough Council, the Committee and the Trustee to act as such agent pursuant to such appointment shall continue until such a termination and distribution. Any affiliate and the Trustee shall be fully empowered to negotiate and execute said joinder agreement and to bind all interested persons by said joinder agreement.
B.
Merger or consolidation. This plan may be merged or consolidated with, or its agents and/or liabilities may be transferred to, any other plan only if the benefits which would be received by a participant of this plan, in the event of a termination of the plan immediately after such transfer, merger or consolidation, are at least equal to the benefits the participant would have received if the plan had terminated immediately before the transfer, merger or consolidation.
A.
Each participant, former participant, beneficiary and surviving spouse shall assume all risk in connection with any decrease in the value of the assets of the trust and the participant's accounts or special accounts and neither the Committee nor the Trustee shall be liable or responsible therefor.
B.
The trust shall be the sole source of benefits under the plan and, except as otherwise required by law, the employer and the Committee assume no liability or responsibility for payment of such benefits, and each participant, surviving spouse, beneficiary or other person who shall claim the right to any payment under the plan shall be entitled to look only to the trust for such payment and shall not have any right, claim or demand therefor against the employer, the Committee or any member thereof or any employee or Borough Council.
C.
Nothing contained in the plan shall give any employee the right to be retained in the employment of the employer or affect the right of any such employer to dismiss any employee. The adoption and maintenance of the plan shall not constitute a contract between the employer and any employee or consideration of or an inducement to or condition of the employment of any employee.
D.
If the Committee shall find that any person to whom any amount is payable under the plan is unable to care for his affairs because of illness or accident or is a minor or has died, then any payment due him or his estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so elects, be paid to his spouse, a child, a relative, an institution maintaining or having custody of such person or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the plan and the trust therefor.
E.
Any and all rights or benefits accruing to any persons under the plan shall be subject to the terms of the trust agreement which the employer shall enter into with the trustee providing for the administration of the trust fund. If the payment of any benefit under the plan is provided for by a contract with an insurance company, the payment of such benefit shall also be subject to all the provisions of such contract.
F.
All elections, designations, requests, notices, instructions and other communications from a participating employer, a participant, beneficiary or other person to the Committee required or permitted under the plan shall be in such form as is prescribed from time to time by each such Committee, shall be mailed by first class mail or delivered to such location as shall be specified by each such Committee and shall be deemed to have been given and delivered only upon actual receipt thereof by such Committee at such location.
G.
All notices, statements, reports and other communications from a participating employer or either Committee to any employee, participant, beneficiary or other person required or permitted under the plan shall be deemed to have been duly given when delivered to or when mailed by first class mail, postage prepaid and addressed to, such employee, participant, beneficiary or other person at his address last appearing on the records of the Committee.
H.
Upon such terms and conditions as the Committee may approve, and subject to any required IRS approval, benefits may be provided under the plan to a participant with respect to any period of his prior employment by any organization, and such benefits (and any service credited with respect to such period of employment as defined in "hour of service") may be provided for, in whole or in part, by funds transferred, directly or indirectly (including a rollover from an individual retirement account, an individual retirement annuity or a retirement bond), to the trust from an employee benefit plan of such organization which qualified under Section 401(a) of the Code.
I.
The captions preceding the articles of the plan have been inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provisions of the plan.
J.
The plan and all rights thereunder shall be governed by and construed in accordance with the Act and the laws of the Commonwealth of Pennsylvania.
K.
Notwithstanding any information that is made available by the employer, the Committee, or the Trustee to participants of the plan through the distribution of descriptive booklets, bulletin board notices, payroll notices or oral announcements, any participant of the plan may examine the plan exhibit, the trust agreement, if any, and all amendments thereto at the main office of the employer at such mutually convenient time as is arranged by the participant and a representative of the employer, the Committee or the trustee.
A.
Effective as of the conversion date, the plan is hereby converted from a defined benefit pension plan with the benefits and features set forth in the provisions of the defined benefit plan, to a defined contribution plan providing for the contributions and benefits as set forth in this plan. No further benefits shall accrue in this plan under the formulas and other provisions of the defined benefit plan from and after the conversion date. All accrued benefits under the provisions of the defined benefit plan shall be 100% vested as of the conversion date. The only benefits which shall accrue thereafter shall be the benefits which are derived from the contributions made under the provisions of this plan.
B.
As soon as practicable after the conversation date, the trustees shall allocate to each participant's individual account an amount equal to the single sum actuarial equivalent of the participant's accrued benefit in this plan as of the conversion date (as defined and determined under the provisions of the defined benefit plan).
C.
If the value of remaining trust assets is greater than the amount to be allocated to participant accounts under Subsection B, the excess shall be allocated to the accounts of each participant as of the conversation date, pro rata according to the single sum actuarial equivalent of each participant's accrued benefit in this plan as of the conversion date (as defined and determined under the provisions of the defined benefit plan).
D.
If the value of remaining trust assets is less than the amount to be allocated to participant accounts under Subsection B, the employer shall contribute the amount of shortfall to the plan within 60 calendar days after receipt of notice to do so from the Trustees.
E.
The provision of the defined benefit plan and all ordinances, resolutions and joinder agreements for or relating to the Borough of Evans City Nonuniformed Employees' Pension Plan are superseded by this article.