[Adopted 7-1-1988 by Ord. No. 642]
A Nonuniformed Employee Pension Fund is hereby established. Such fund shall be applied under such regulations as the Council may prescribe.
A. 
As used in this article, the following terms shall have the meanings indicated:
ACTUARIAL EQUIVALENT
A benefit determined by an actuary to be equivalent in value to the participant's normal retirement benefit, as defined herein, provided that such actuarial equivalent is within the limitations provided herein.
COMMITTEE
The persons appointed to administer the Nonuniformed Employee Fund established pursuant to this article.
COMPENSATION
The gross monthly base wages, overtime pay and allowances paid to an employee averaged over his actual service before his actual retirement date but not over any period of such service in excess of the last 24 calendar months. Lump sum payments for unused sick days, unused vacation days and unused personal days shall not be used in the calculation for pension purposes.
[Amended 4-17-2000 by Ord. No. 775; 12-17-2001 by Ord. No. 809]
CONTRACT YEAR
Any twelve-month period commencing with the effective date.
COUNCIL
The governing body of the Borough of Sayre.
CREDITED SERVICE
The number of full years of continuous employment from January 1, 1964, or date of hire, whichever is later, to normal retirement date. Service of six months or more will be counted as a full year; service of less than six months will be disregarded.
[Amended 4-17-2000 by Ord. No. 775]
EMPLOYEE
A person actively engaged by the employer on a regular, full-time permanent basis (other than police).
[Amended 10-21-1991 by Ord. No. 686]
EMPLOYER
The Borough of Sayre.
FUND
The Nonuniformed Employee Pension Fund established pursuant to this article.
MEMBER
An employee eligible to participate in the benefits provided hereunder whose pension has not yet commenced.
PARTICIPANT
Every person duly appointed from time to time by the municipality as a full-time, paid nonuniformed employee working at least 40 hours per week at a definite salary, subject to reasonable vacation and sick leave.
PENSION
The annuity purchased hereunder for a member.
PENSIONER
A former member, as defined, who has retired under the provisions of this article and whose pension has commenced.
RETIREMENT DATE
The date on which a member's pension commences or is due to commence under the terms of this article.
SALARY
The amount of compensation received by a participant in each and every month, including longevity pay, service increments and overtime.
SERVICE IN THE AGGREGATE
Total service, not necessarily continuous.
B. 
Whenever any words are used herein in the masculine gender, they shall be construed as though they were also used in the feminine gender in all cases where they would so apply; and wherever any words are used herein in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply.
A. 
The Borough Council shall administer the Nonuniformed Employee Pension Fund established by this article by such regulations as shall from time to time be necessary for the effective maintenance of the fund, provided that no regulation shall be contrary to the statutes of the commonwealth pursuant to which this fund is established.
B. 
The Borough Council shall appoint a Committee which shall administer the pension fund established by this article according to the regulations established pursuant to this section.
C. 
The Committee shall consist of not fewer than five members, which number shall include three Councilmen and two persons chosen from and by the participants in the fund. All persons so designated shall serve at the pleasure of the Council for terms of five years, one to be appointed and replaced each year. Any vacancies in the Committee arising from resignation, death or removal shall be filled by the Council by the procedure set out herein for the member of the Committee whose resignation, death or removal has created the vacancy.
D. 
The Committee shall act by such procedure as the Committee shall establish, provided that all decisions shall be by majority vote. The Committee may authorize one of its members to execute any document or documents on behalf of the Committee. The Committee may adopt bylaws and regulations as it deems necessary for the conduct of its affairs and may appoint such accountants, counsel, specialists or such other persons as it may deem desirable for the proper administration of the pension fund, provided that no such regulation, bylaw or appointment shall be effective until such is approved by the Council.
E. 
The Committee shall keep a record of all its proceedings and acts and shall keep all such books of accounts, records and other data as shall be necessary for the proper administration of the pension fund. All actions of the Committee shall be communicated by the Council.
F. 
The members of the Committee shall serve without compensation for their services, but all such reasonable expenses incurred in the administration of the fund, including but not limited to fees for the services of specialists, including actuaries, accountants and legal counsel, may be reimbursed, provided that such expenses shall be subject to the prior approval of the Council.
[Amended 10-21-1991 by Ord. No. 686]
G. 
No member of the Committee shall incur any liability for any action or failure to act, except only liability for his own gross negligence or willful misconduct. The employer shall indemnify each member of the Committee against any and all claims, loss, damages, expense and liability arising from any action or failure to act, except for such that is the result of gross negligence or willful misconduct of such member.
A. 
Each person who is an employee, as defined herein, on the effective date shall become a member hereunder on that date.
B. 
Each person who becomes employed or who is reemployed as an employee, as defined herein, subsequent to the effective date shall become a member on January 1 next following the date he becomes an employee. This contract, however, shall be limited to those employees not currently covered by any other plan to which the employer currently contributes.
[Amended 10-21-1991 by Ord. No. 686]
A. 
Normal retirement date. The normal retirement date of a member shall be the first day of the calendar month conincident with or next following attainment of age 60.
[Amended 4-17-2000 by Ord. No. 775]
B. 
Late retirement date. A member may elect, in writing, to defer his retirement date, provided that the employer's consent to make such election is first obtained. His late retirement date shall be the first day of the calendar month following his normal retirement date on which he actually retires from active service. To be effective, such election, together with the written consent of the employer thereto, must be filed with the employer at its home office before the member's normal retirement date.
[Amended 10-21-1991 by Ord. No. 686]
C. 
Early retirement date. The early retirement date of a member who has attained the age of 55 and has completed 15 or more years of continuous employment with the employer shall be the first day of any calendar month preceding the member's normal retirement date.
[Amended 10-21-1991 by Ord. No. 686]
No member contributions are required.
A. 
The normal form of pension benefit shall be a monthly annuity payable for the lifetime of the pensioner.
B. 
In lieu of the normal form of pension payments provided for in Subsection A, a member may elect, in writing, at least two years prior to his normal retirement date, to receive an actuarially reduced monthly benefit equivalent to the life annuity under one of the following optional forms of payment:
(1) 
A monthly annuity payable for the lifetime of the pensioner or for 120 months certain, whichever period is longer.
(2) 
A monthly annuity payable for the lifetime of the pensioner or for 60 months certain, whichever period is longer.
(3) 
A monthly annuity payable for the lifetime of the pensioner, with payments continued for the lifetime of his designated beneficiary.
A. 
Normal retirement. A participant who shall complete the requirement as set forth in § 19-5A shall receive a pension for life, payable in equal monthly installments in an amount to be computed by applying a credit of 2% for each year of credited service (maximum credit: 50%) times the average monthly compensation over the last 24 months of employment.
[Amended 4-17-2000 by Ord. No. 775; 12-17-2001 by Ord. No. 809]
B. 
Late retirement. The monthly amount of pension payable hereunder to a pensioner whose actual retirement date is subsequent to his normal retirement date shall be calculated in accordance with the normal pension benefit formula.[1]
[1]
Editor's Note: Former Subsection C, regarding early retirement, was repealed 11-19-2010 by Ord. No. 870. This ordinance also provided a retroactive effective date of July 1, 2006.
A. 
If a member's employment is terminated or if he ceases to be an employee, as herein defined, for any reason other than death or retirement, before his normal retirement date, he shall immediately cease to be a member and shall not be entitled to any benefit under this article other than a deferred paid-up annuity with benefits commencing on his normal retirement date for such an amount as his vested interests in the fund at date of termination will actuarially provide.
B. 
Disqualification and forfeiture of benefits. Notwithstanding any other provision of law, no public official or public employee nor any beneficiary designated by such public official or public employee shall be entitled to receive any retirement or other benefit or payment of any kind, except a return of the contribution paid into any pension fund without interest, if such public official or public employee is convicted or pleads guilty or no defense to any crime related to public office or public employment.
[Added 10-21-1991 by Ord. No. 686]
C. 
Vesting. If a member's employment is terminated, as provided in Subsection A above, he shall be 100% vested after completing six full years of service according to the following schedule. Accrued benefit shall be determined in accordance with the normal retirement benefit formula based on average monthly compensation and credited service as of the date of termination.
[Amended 12-17-2001 by Ord. No. 809]
Completed Years of Credited Service
Vesting Percentage
0 to 5
0
6
100
A. 
No death benefits are payable hereunder with respect to a member before his actual retirement date.
B. 
The provisions of the type of pension purchased for a pensioner shall determine the death benefit, if any, payable with respect to the death of the pensioner.
C. 
The member's surviving spouse shall receive the vested benefit that the member would have received if the member had not died or the member's surviving spouse shall receive an annuity for the full or reduced portion of the member's benefit. Said benefits will be paid on an actuarially equivalent basis. This amendment to the chapter and to the Nonuniformed Employees Pension Plan shall be retroactive to July 1, 1995. This subsection amends Section 7.01 of the Plan Document dated May 12, 1975.
[Added 8-19-1996 by Ord. No. 737]
D. 
The Pension Plan shall provide a joint and survivor annuity benefit option. This subsection amends Section 5.02 of the Plan Document dated May 12, 1975.
[Added 8-19-1996 by Ord. No. 737]
E. 
The Pension Plan shall provide additional benefits as provided under Subsection C and as amended under Section 7.01 of the Plan Document dated May 12, 1975. This subsection amends Section 8.01 of the Plan Document dated May 12, 1975.
[Added 8-19-1996 by Ord. No. 737]
Upon termination of the fund, the assets shall be distributed as follows:
A. 
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 19-8A for all participants who have retired prior to termination of the fund or who are eligible for retirement at the time of the termination of this fund.
B. 
Contributions with interest at a rate established by the Committee as provided in § 19-3 shall be refunded to any and all participants who terminate service at the time of the termination of this fund.
C. 
Of the remaining funds, those which can be identified as municipality contributions or contributions other than from participants shall be distributed as the Council sees fit.
A. 
Neither the establishment of the plan hereby created nor any modification thereof nor the creation of any fund or account nor the payment of any benefits shall be construed as giving any participant or other person any legal or equitable right against the municipality or any officer or employee thereof or the Committee, except as herein provided. Under no circumstances shall the fund created hereby constitute a contract for continuing employment for any participant or in any manner obligate the municipality to continue or discontinue the services of an employee.
B. 
This plan has been established and shall be maintained by the municipality in accordance with the law of the Commonwealth of Pennsylvania. The plan shall, in accordance with the law, continue for such period as may be required by such law, and should such law provide that the municipality may, by its own action, discontinue this plan, the municipality reserves the right to take such action in its sole and absolute discretion. Upon termination, the municipality shall have no liability hereunder other than that imposed by law.
A. 
All investments by the Committee of the assets of this fund shall comply with the Fiduciaries Investment Act of 1949, as amended, and such regulations as the Council shall establish for the purpose of investing such funds. Notwithstanding, all investments made by the Committee are subject to approval by the Council.
B. 
The Committee may also purchase annuities or other contracts or insurance which provide a cash value with which to fund pensions, provided that the Council shall determine the value of any policies purchased, the company with which the contracts shall be made and the time to purchase such policies. The Council shall also have the obligation to ensure that the policies purchased provide benefits on a uniform scale and that such policies are endorsed to the ownership of the municipality.
The Council reserves the right to amend at any time, in whole or in part, any or all of the provisions of this fund.
A. 
This plan shall be constructed according to the laws of the Commonwealth of Pennsylvania, and all provisions hereof shall be administered according to the laws of such commonwealth.
B. 
Headings of sections and paragraphs of this instrument are inserted for convenience of reference. They constitute no part of this plan and are not to be considered in the construction thereof.