For the purposes of this article, the following
definitions shall apply:
ACCRUED BENEFIT
Shall equal 1.10% of the member's average monthly compensation
multiplied by years of service as of the date of determination, with
a maximum of 35 years of service.
AGE
Age at nearest birthday.
AVERAGE MONTHLY COMPENSATION
The average of a member's monthly compensation over the highest
five consecutive years of employment out of the last 10 years of employment.
EMPLOYER
Upper Pottsgrove Township, Montgomery County, Commonwealth
of Pennsylvania.
FUND
The Upper Pottsgrove Township Nonuniformed Employees Pension
Plan Trust Fund.
HOUR OF SERVICE
Each hour of employment for which a full-time Upper Pottsgrove
Township employee is paid or entitled to payment.
MEMBER
All Municipality employees who meet the requirements set forth in §
43-16 of this article. The masculine pronoun will include the feminine.
MUNICIPALITY
Upper Pottsgrove Township, Montgomery County, Commonwealth
of Pennsylvania.
PLAN
The Upper Pottsgrove Township Nonuniformed Employees Pension
Plan. The plan's fiscal year is the calendar year.
TOWNSHIP
Upper Pottsgrove Township, Montgomery County, Commonwealth
of Pennsylvania.
TRUSTEE
The Upper Pottsgrove Township Board of Commissioners or its
designee.
YEAR OF SERVICE
The total of an employee's service, expressed as whole years,
for each calendar year in which the employee is credited with at least
1,820 hours of service.
This plan is to be funded and maintained by
any of the following methods, or a combination of each:
A. General fund: contributions from the general fund
of the Township which may be required after appropriate approval of
the Township Commissioners.
C. State aid received pursuant to the Municipal Pension
Plan Funding Standard and Recovery Act (Act 205).
D. Gifts, grants, devises or bequests: The sums which
may be received by the Township in the form of gifts, grants, devises
or bequests may, to the extent authorized by law, be contributed to
such fund so long as prior approval of the Township Commissioners
is obtained.
The benefits from the fund shall be payable
to members who have served in the Township in a full-time capacity
and who meet the following requirements, after which the member may
retire from service with the employer. Benefits commence on the first
day of the month coincident with or next following actual retirement.
"Normal retirement date" shall mean the first of the month coincident
with or next following the attainment of the 65th birthday. A member
may retire at a later date, and the retirement benefit will equal
the accrued benefit at actual retirement.
A member who has attained his 55th birthday
and has completed six years of service may retire at his own election.
The accrued benefit is payable at early retirement and shall be reduced
by 6 2/3%, for each year (or portion thereof) up to five years
and 3 1/3% for years (or portions thereof) between five and 10
years for benefit payments commencing prior to the member's 65th birthday.
The transfer value is the amount allocated to
the member from the former defined contribution plan as of December
31, 1988, including interest at 5.0% per annum. The transfer value
acts as a minimum benefit amount for all distributions.
This plan is intended to be tax-qualified under
the applicable provisions of Section 401 (a) of the Internal Revenue
Code, as amended, and shall be construed in a manner consistent with
such intent. The attached addendum to the Upper Pottsgrove Township
Nonuniformed Employees Pension Plan and Trust is hereby incorporated
to be part of this article.
All ordinances or parts of ordinances inconsistent
with the provisions of this article are hereby repealed insofar as
they are inconsistent with this article, except for any ordinance
provisions mandated by the Internal Revenue Service.