[Adopted 7-10-2007 by Ord. No. 1854, effective 1-1-2006]
The following words and phrases as used in this plan shall have
the meanings set forth in this section, unless a different meaning
is otherwise clearly required by the context:
As of any given date, the benefit determined under § 47-134B, calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed 1.0. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation, provided under § 47-134G. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided pursuant to the terms of the plan prior to the actual payment thereof.
The total amount contributed by any participant to this pension fund or its predecessor by way of payroll deduction or otherwise, plus interest credited at 4% per annum. Interest shall be credited in the form of a compound interest rate from the first day of the plan year following the date on which the contributions were paid to the first day of the month preceding the date that a distribution of accumulated contributions under § 47-136B or 47-137B shall be paid or payment of benefits shall commence. Interest shall be credited as described herein solely for any period of time commencing on or after January 1, 1980. Prior to January 1, 1980, interest credit was determined in the sole discretion of the Board.
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the UP-1984 Mortality Table and 7% interest, unless otherwise
specifically provided herein.
The person, partnership, association or corporation which
at any given time is serving as actuary, provided that such actuary
must be an approved actuary as defined in the Act.
The total period or periods of the participant's employment
with the employer, whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment
for which employee contributions are required, such period of employment
shall not be included in aggregate service thereafter unless, at the
commencement of the next period of employment, the participant repays
to the fund the amount of such distribution with interest. For purposes
of this definition, interest shall accrue as of the date the employee
receives a distribution of accumulated contributions and shall be
computed at the same rate and in the same manner as described in the
definition of "accumulated contributions." Aggregate service shall
be calculated in whole years and completed months.
The person or entity designated by the participant to receive
a distribution of the participant's accumulated contributions
should the participant die prior to becoming entitled to a retirement
benefit. In the event that a participant does not designate a beneficiary
or the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse or, if there is no surviving spouse,
the issue, per stirpes, or, if there is no surviving issue, the estate,
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.
The Board of Commissioners of the Township of Shaler.
The person designated by the Township who has the primary
responsibility for the execution of the administrative affairs for
the plan.
The Internal Revenue Code of 1986, as amended.
The Pension and Insurance Committee as determined pursuant to § 47-138B.
The Commonwealth of Pennsylvania.
The total remuneration of the employee, whether salary or
hourly wages paid by the employer for police services rendered. Compensation
shall include overtime pay, holiday pay, longevity pay, any other
form of remuneration paid by the employer for police services rendered,
and fixed, periodic amounts paid for periods during which the participant
is not actively employed as a member of the employer's regular
full-time police force, which amounts are paid directly by the employer
or through a program to which the employer has made contributions
on behalf of the employee, other than under this plan (including,
without limitation, a worker's compensation program or payments
made under the Pennsylvania Heart and Lung Act). Certain nonperiodic
payments such as bonuses, educational incentives, unused and earned
vacation and sick-leave buyback payments shall also be included in
compensation. Compensation shall be limited on an annual basis to
the amount specified for government plans pursuant to Code Section
401(a)(17), as adjusted under Code Section 415(d).
The date when a participant is determined by the plan administrator
to be incapacitated due to total and permanent disability, or the
date when the participant's employment terminates due to such
total and permanent disability, if later.
Any individual employed by the employer on a regular, full-time
basis as a police officer of the employer's police force. For
purposes of this definition, "employed on a regular full-time basis"
means that the individual is regularly scheduled to work a minimum
of 40 hours per week.
The Township of Shaler, Allegheny County, Pennsylvania.
For the purpose of determining aggregate service:
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer;
Any period of time for which an employee is paid, either directly
by the employer or through a program to which the employer has made
contributions on behalf of the employee, a fixed, periodic amount
in the nature of salary-continuation payments for reasons other than
the performance of duties (such as vacation, holidays, sickness, entitlement
to benefits under workers' compensation or similar laws);
Any period during which an employee is entitled to disability
benefits under this plan, provided that the employee returns to employment
within three months of the date on which it is determined that the
employee is no longer totally and permanently disabled, if such determination
occurs prior to the date a participant attains normal retirement age;
Any period of voluntary or involuntary military service with
the Armed Forces of the United States of America, provided that the
participant has been employed as a regular, full-time member of the
employer's police force for a period of at least six months immediately
prior to the period of military service, and the participant returns
to employment within six months following discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer; and
Any period of qualified military service as determined under
the requirements of Chapter 43 of Title 38, United States Code, provided
that the participant returns to employment following such period of
qualified military service, and the participant makes payment to the
plan in an amount equal to the participant contributions that would
otherwise have been paid to the plan during such period of qualified
military service. The amount of participant contributions shall be
based upon an estimate of the compensation that would have been paid
to the participant during such period of qualified military service
as determined by the average compensation paid to the participant
during the 12 months immediately preceding the period of qualified
military service. The amount of participant contributions calculated
must be paid into the plan before the end of the period that begins
on the date of reemployment and ends on the earlier of the date that
ends the period that has a duration of three times the period of qualified
military service or the date that is five years after the date of
reemployment.
The average monthly salary earned by the participant and
paid by the employer during the final 36 months immediately preceding
termination of active employment. Salary shall include the employee's
compensation to which the employee is entitled for the rendering of
services in employment but shall exclude for this purpose any single
sum or extraordinary payments made which are not directly attributable
to active employment during the averaging period, including but not
limited to payment for accumulated sick leave, payment of a longevity
bonus, or payment of a back-pay damage award. Salary shall not include
uniform allowance.
In the case of each participant who was actively employed in
employment on or before April 1, 2001, "salary" for the purpose of
determining final monthly average salary shall include payments made
for accumulated sick leave, whether as an annual payment during the
averaging period or as a single-sum payment at the time of retirement.
Final monthly average salary shall be calculated by taking into
account only those periods during which an employee receives salary,
as that term is defined in this definition. Therefore, for example,
the final monthly average salary for a participant who is voluntarily
or involuntarily serving in the United States Armed Forces during
the final 36 months of aggregate service shall be based on the period
during which the employee last received salary (as defined in the
preceding paragraphs) from the employer.
Salary used to determine final monthly average salary shall
be limited on an annual basis to the amount specified for government
plans in accordance with Code Section 401(a)(17), as adjusted under
Code Section 415(d).
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The day next following the date on which the participant
retires from employment which is subsequent to the date on which the
participant attains normal retirement age.
The minimum obligation of the municipality as determined
by the actuary pursuant to the provisions of the Act.
The date on which the participant has completed 25 years
of aggregate service with the employer and has attained age 55.
A written document prepared in the form specified by the
plan administrator. If such notice or election is to be provided by
the employer or the plan administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the plan administrator, it must be received by
the intended recipient on or before the last day of the specified
notice or election period.
An employee who has met the eligibility requirements to participate in the plan as provided in § 47-132A and who has not for any reason ceased to be a participant hereunder.
The police pension fund administered under the terms of this
plan and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time,
and designated as the pension plan of the Township of Shaler (Police).
The committee or the individual appointed for the purpose
of supervising and administering the provisions of the plan. In the
event that no such appointment is made, the plan administrator shall
be the Board.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
January 1, 2006, the date upon which this amendment and restatement
of the plan becomes effective.
The first day next following the date on which the participant
retires from employment on which the payment of retirement benefits
pursuant to this plan shall commence.
A condition of physical or mental impairment due to which a participant is unable to perform the usual and customary duties of employment and which is reasonably expected to continue to be permanent for the remainder of the participant's lifetime. For purposes of this definition and § 47-135, a condition shall not be treated as a total and permanent disability unless such condition results from permanent injuries incurred in service. Therefore, an employee whose physical or mental impairment does not occur while on duty or which is the result of alcoholism, addiction to narcotics, perpetration of a felonious criminal activity or is willfully self-inflicted is not entitled to receive disability benefits under the plan.
A.
Eligibility requirements. Each employee who is employed as a regular,
full-time permanent member of the Police Department of the employer
shall participate herein as of the date on which such employee's
employment first commences or recommences, provided all prerequisites
to participation under this plan shall have been fulfilled, including,
but not limited to, completion of all forms required by the plan administrator.
Each employee who was a participant in the plan on the day prior to
the restatement date shall continue to be a participant on and after
the restatement date, subject to the terms and conditions of the plan
as set forth herein.
B.
Participation requirements. The Board shall furnish the plan administrator with written notification of the appointment of any new full-time permanent employee who is eligible for participation hereunder within 60 days of the date of such appointment. Each participant hereunder shall be required to make contributions to the plan, as provided in § 47-133A hereof, and shall execute and complete any enrollment or application forms as required by the plan administrator.
C.
Designation of beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the plan administrator which designates a beneficiary
at the time participation commences. The participant's election
of any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time, provided the participant provides
the written notice of the changed designation to the plan administrator
in the manner prescribed by the plan administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
plan administrator shall be null and void and have no effect under
the terms of this plan.
D.
Change in status. A participant who remains in the service of the
employer but ceases to be an employee eligible for participation hereunder,
or ceases or fails to make any contributions which are required as
a condition of participation hereunder, shall have no further benefit
accruals occur until the individual again qualifies as a participant
hereunder eligible to resume such accrual of benefits.
E.
Recordkeeping. The employer shall furnish the plan administrator
with such information as will aid the plan administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this plan.
A.
Participant contributions. Each participant shall, as a requirement
of participation, pay regular contributions to the pension fund in
an amount equal to no less than 5% of the participant's compensation
and no more than 8% of the participant's compensation. Each participant
shall complete the necessary forms to authorize the payment of participant
contributions by way of payroll deduction.
B.
Reduction of participant contributions. Notwithstanding the preceding Subsection A, if an annual actuarial study performed by the actuary shows that the condition of the pension fund is such that payments into the pension fund by participants may be reduced below the minimum percentages prescribed in Subsection A, or may be eliminated, and that if such payments are reduced or eliminated, contributions by the employer will not be required to keep the pension fund actuarially sound, the employer may, by ordinance or resolution, reduce or eliminate payments into the pension fund by participants.
C.
Employer contributions. The actuary, in accordance with the Act,
shall determine the minimum municipal obligation of the employer.
The employer shall pay into the pension fund, by annual appropriations
or otherwise, the contributions necessary to satisfy the minimum municipal
obligation. Notwithstanding the foregoing, nothing contained herein
shall preclude the employer from contributing an amount in excess
of the minimum municipal obligation.
D.
State aid. General municipal pension system state aid, or any other
amount of state aid received by the employer in accordance with the
Act from the commonwealth, may be deposited into the pension fund
governed by this plan in amounts determined by the Board and shall
be used to reduce the amount of the minimum municipal obligation of
the employer.
E.
Gifts. The Board is authorized to take by gift, grant, devise or
otherwise any money or property, real or personal, for the benefit
of the plan and cause the same to be held as a part of the pension
fund. The care, management, investment and disposal of such amounts
shall be vested in the Board or its delegate, the plan administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.
F.
Employer reversion. At no time shall it be possible for the plan assets to be used for or diverted to any purpose other than for the exclusive benefit of the participants and their beneficiaries, including payment of any reasonable plan expenses. Notwithstanding the foregoing, any contributions made by the employer may be returned to the employer if the contribution was made due to a mistake and the contribution is returned within one year of the date on which the discovery of the mistaken payment of the contribution was made or reasonably should have been made or the plan is terminated, as provided in § 47-140.
A.
Normal retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after the participant has
attained normal retirement age.
B.
Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection A shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average salary as determined herein. The normal retirement benefit shall be computed as the sum of:
(1)
Any pension benefits from pension plans heretofore established by
a private organization or association for the members of the police
force but only to the extent that the commonwealth or any of its municipalities
shall have contributed to such pension plan monies raised by taxation;
(2)
Seventy-five percent of primary social security benefits under the
Federal Social Security Act for which the participant may be eligible
because of age and attributable to employment, in the event that a
participant should be entitled to such benefits in the future; and
(3)
An amount from the plan to the extent necessary to make the total
benefit paid in any given month equal to 50% of final monthly average
salary.
C.
Late retirement. A participant may continue in employment beyond the attainment of normal retirement age subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of Subsection A continues in employment beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and the participant's retirement actually begins. The retirement benefit of a participant who retires after attainment of normal retirement age shall be calculated in accordance with Subsection B on the basis of the final monthly average salary as of such participant's actual retirement and shall commence on the participant's late retirement date.
D.
Service increment. Notwithstanding anything contained herein to the contrary, each participant who shall retire after completing at least 26 years of aggregate service and each participant who shall have retired after January 1, 1984, and who was disabled for more than 36 months after completing at least 25 years of active employment, may be entitled to receive a monthly service increment benefit; provided, however, that the participant shall have accrued sufficient service credit pursuant to this Subsection D. Such service increment benefit shall only be available to a participant whose aggregate service for purposes of this Subsection D shall only include periods of time when the participant actively renders service in employment and shall not include any period of time during which the participant received a disability benefit under the terms of this plan or was not otherwise in active employment. Such service increment benefit shall be in an amount equal to $100 and shall be paid monthly in addition to the amount of normal retirement benefit calculated pursuant to Subsection B hereof.
E.
Cost-of-living adjustments. Each participant who shall retire after January 1, 2001, and receive a retirement benefit determined pursuant to Subsection B hereunder shall be entitled to receive annual cost-of-living increases to the amount of benefit payable to such participant under Subsection B. Such cost-of-living increases shall be determined by the Board and shall not exceed the following limits:
(1)
The percentage increase in the consumer price index from the year
in which the participant was last employed as an employee of the employer;
(2)
The total retirement benefits payable under this plan shall not exceed
75% of the participant's final monthly average salary;
(3)
Effective January 1, 2003, the total cost-of-living increase shall
not exceed 30% of the participant's original retirement benefit
under this plan; and
(4)
The cost-of-living increases shall not impair the actuarial soundness
of the pension fund.
F.
Payment of benefits. Retirement benefit payments shall be payable
as of the participant's retirement date and the first day of
each month thereafter during the participant's lifetime. The
initial payment shall be prorated based upon the remaining number
of days in the then-current month compared to 30. A participant must
complete an application for benefit in the manner prescribed by the
plan administrator and deliver such application to the plan administrator
at least 30 days prior to the date on which benefit payments shall
commence. Notwithstanding anything contained herein to the contrary,
no retirement benefit payments or any other payments shall be due
or payable on or before the date that is 30 days after the date the
plan administrator receives the application for benefits. Payment
of benefits under this section shall cease as of the date of death
of the participant.
G.
Maximum benefit limitations. Notwithstanding any provision of this plan to the contrary, no benefit provided under this plan attributable to contributions of the employer shall exceed, as an annual amount, the amount specified in Code Section 415(b)(1)(A) as adjusted pursuant to Code Section 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this Subsection G shall be governed by the following conditions and definitions:
(1)
Benefits paid or payable in a form other than a straight life annuity
(with no ancillary benefits) or where the employee contributes to
the plan or makes rollover contributions shall be adjusted on an actuarially
equivalent basis to determine the limitation contained herein;
(2)
In the case of a benefit which commences prior to the attainment
of age 62 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis to the amount determined pursuant
to this section commencing at age 62; however, the reduction shall
not reduce the limitation below $75,000 for a benefit commencing at
or after age 55 or, if the benefit commences prior to attainment of
age 55, the amount which is actuarially equivalent to a benefit of
$75,000 commencing at age 55; however, in the case of a qualified
participant (a participant with respect to whom a period of at least
15 years of service, including applicable military service, as a full-time
employee of a police or fire department is taken into account in determining
the amount of benefit), the limitation contained herein shall not
reduce the limitation to an amount less than the amount specified
pursuant to Code Section 415(b)(2)(G)(i), and such amount shall be
adjusted pursuant to Code Section 415(d);
(3)
In the case of a benefit which commences after attainment of age
65 by the participant, the limitation herein shall be adjusted on
an actuarially equivalent basis to the amount determined herein commencing
at age 65;
(4)
Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this section, provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability retirement benefit pursuant to § 47-135B, with fewer than 10 years of participation, the limitation expressed in this Subsection G(4) shall be reduced by 1/10 for each year of participation less than 10, but in no event shall this limitation be less than $1,000;
(5)
The limitations expressed herein shall be based upon plan years for
calculation purposes, shall be applied to all defined benefit plans
maintained by the employer as one defined benefit plan and to all
defined contribution plans maintained by the employer as one defined
contribution plan, and shall be applied and interpreted consistent
with Code Section 415 and regulations thereunder as applicable to
government plans in general and this plan in particular; and
(6)
In the case of a survivor benefit or a disability retirement benefit under § 47-135B, the adjustment under Subsection G(2) hereof shall not apply and the applicable limitation shall be the limitation contained herein without regard to the age of the benefit recipient.
[Amended 4-13-2010 by Ord. No. 1883[1]]
[1]
Editor's Note: This ordinance shall take effect 4-14-2010.
H.
Required distributions.
(1)
Notwithstanding any other provision of this plan, the entire benefit
of any participant who becomes entitled to benefits prior to death
shall be distributed either:
(a)
Not later than the required beginning date; or
(b)
Over a period beginning not later than the required beginning
date and extending over the life of such participant or over the lives
of such participant and a designated beneficiary (or over a period
not extending beyond the life expectancy of such participant, or the
joint life expectancies of such participant and a designated beneficiary).
(2)
If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of the benefits has begun in accordance with Subsection H(1)(b) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection H(1)(b) as of the date of the death.
(3)
If a participant who is entitled to benefits under this plan dies
before distribution of the benefit has begun, the entire interest
of such employee shall be distributed within five years of the death
of such employee, unless the following sentence is applicable. If
any portion of the employee's interest is payable to (or for
the benefit of) a designated beneficiary, such portion shall be distributed
over the life of such designated beneficiary (or over a period not
extending beyond the life expectancy of such beneficiary), and such
distributions begin not later than one year after the date of the
employee's death or such later date as provided by regulations
issued by the Secretary of the Treasury; then for purposes of the
five-year rule set forth in the preceding sentence, the benefit payable
to the beneficiary shall be treated as distributed on the date on
which such distributions begin; provided, however, that notwithstanding
the preceding sentence, if the designated beneficiary is the surviving
spouse of the participant, then the date on which distributions are
required to begin shall not be earlier than the date upon which the
employee would have attained age 70 1/2; and further provided,
if the surviving spouse dies before the distributions to such spouse
begin, this subsection shall be applied as if the surviving spouse
were the employee.
(4)
For purposes of this section, the following definitions and procedures
shall apply:
(a)
Required beginning date shall mean April 1 of the calendar year
following the later of the calendar year in which the employee attains
age 70 1/2 or the calendar year in which the employee retires.
(b)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this plan according to its rules.
(c)
Any amount paid to a child shall be treated as if it had been
paid to the surviving spouse if such amount will become payable to
the surviving spouse upon such child's reaching majority (or
other designated event permitted under regulations issued by the Secretary
of the Treasury).
(d)
For purposes of this section, the life expectancy of an employee
and/or the employee's spouse (other than in the case of a life
annuity) may be recalculated but not more frequently than annually.
I.
Assignment. The pension benefit payments prescribed herein shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant or designated
beneficiary and shall not be subject to assignment or transfer except
as required by an order of court entered by a state or federal court
exercising proper jurisdiction.
J.
Retired participants. Any participant who shall have retired prior
to the restatement date shall not have the benefit altered in any
way by the provisions of this amended and restated plan, except where
otherwise expressly provided herein. Such retired participants shall
continue to have their benefits governed by the terms of the plan
in effect on the day preceding the restatement date.
K.
Limitation of liability. Nothing contained herein shall obligate
the employer, the plan administrator, any fiduciary or any agent or
representative of any of the foregoing to provide any retirement or
other benefit to any participant or beneficiary which cannot be provided
from the assets available in the pension fund, whether such benefits
are in pay status or otherwise payable under the terms of the plan.
The Board retains the right to amend or terminate this plan consistent
with applicable law at any time, with or without cause and whether
or not such action directly or indirectly results in the suspension,
reduction or termination of any benefit payable under the plan or
in pay status, and without liability to any person for any such action.
L.
Personal right of participant. The right to receive any benefits
under this plan is a personal right of the participant and shall expire
upon the death of the participant. No heir, legatee, devisee, beneficiary,
assignee or other person claiming by or through a participant shall
have any interest in any benefits hereunder unless clearly and expressly
so provided by the terms of this plan or the provisions of applicable
law. A participant's election, failure to make an election or
revocation of an election hereunder shall be final and binding on
all persons.
M.
Nonduplication of benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under the plan
and who shall resume employment shall have benefit payments suspended
until the first day of the month coincident with or next following
the date such employment shall cease. Upon resumption of benefit payments,
such participant shall receive the greater of the amount of the suspended
benefit or the amount of benefit based upon final monthly average
salary and aggregate service as of the date that such period of resumed
employment shall cease.
N.
Direct rollovers.
(1)
This subsection applies to distributions made on or after December
31, 2001. Notwithstanding any provision of the plan to the contrary
that would otherwise limit a distributee's election under this
subsection, a distributee may elect, at the time and in the manner
prescribed by the plan administrator, to have any portion of an eligible
rollover distribution that is equal to at least $500 paid directly
to an eligible retirement plan specified by the distributee in a direct
rollover.
(2)
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(a)
(b)
For purposes of this subsection, the following definitions shall
apply:
A payment by the plan to the eligible retirement plan specified
by the distributee.
Includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the
employee's or former employee's spouse or former spouse
who is the alternate payee under a qualified domestic relations order,
as defined in Code Section 414(p), is a distributee with regard to
the interest of the spouse or former spouse.
A qualified trust described in Code Section 401(a), an individual
retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an annuity plan
described in Code Section 403(a), an annuity contract described in
Code Section 403(b), an eligible plan under Section 457(b) of the
Code, which is maintained by a state, political subdivision of a state,
or any agency or instrumentality of a state or political subdivision
of a state and which agrees to separately account for amounts transferred
into such plan from this plan.
Any distribution of all or any portion of the balance to the
credit of the distributee, except that an eligible rollover distribution
does not include any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of 10 years or more;
any distribution to the extent such distribution is required under
Code Section 401(a)(9); and the portion of any distribution that is
not includible in gross income (determined without regard to the exclusion
for net unrealized appreciation with respect to employer securities).
For purposes of the direct rollover provisions in this section
of the plan, a portion of a distribution shall not fail to be an eligible
rollover distribution merely because the portion consists of after-tax
employee contributions that are not includible in gross income. However,
such portion may be paid only to an individual retirement account
or annuity described in Section 408(a) or (b) of the Code, or
to a qualified defined contribution plan described in Section 401(a)
or 403(a) of the Code 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.
A.
Disability retirement. A participant who shall incur a total and
permanent disability before attaining normal retirement age shall
be entitled to a disability retirement benefit as of the disability
date.
B.
Disability retirement benefit. In accordance with Act 600, a disability pension shall be calculated at a rate no less than 50% of the member's salary at the time the disability was incurred, provided that any member who receives benefits for the same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall have his/her disability benefits offset or reduced by the amount of such benefits. A participant who shall be entitled to a disability retirement benefit under Subsection A shall receive a monthly benefit in an amount equal to 75% of the participant's final monthly average salary for the final 36 months of active service determined as of the disability date. Any such participant who meets the age and service requirements for a normal retirement benefit shall not be eligible for a disability retirement benefit.
C.
Payment of disability benefits.
(1)
Disability payments shall be made monthly as of the first day of
each month, commencing as of the first day of the month coincident
with or immediately following the participant's disability date
and continuing until the earliest of the death of the participant
or cessation of total and permanent disability.
(2)
A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date and shall not be entitled to any distribution of accumulated contributions pursuant to § 47-137B unless the total amount of disability payments does not exceed the value of the participant's accumulated contributions as of the disability date. If the total amount of disability payments does not exceed the value of the participant's accumulated contributions as of the disability date in the case of a participant who shall be deemed to have terminated employment as of the disability date hereunder, there shall be payable under § 47-137B an amount equal to the difference between the value of the participant's accumulated contributions and the total amount of disability payments.
D.
Verification of disability. The plan administrator shall determine
whether a participant shall have incurred a total and permanent disability
and shall rely on the findings of a panel of physicians that shall
be composed of one physician chosen by the employer, one physician
chosen by the employee, and one physician chosen by the concurrence
of the other two. If it shall be determined through this procedure
that a participant who is totally and permanently disabled has recovered
sufficiently to resume active employment as a police officer or if
a participant refuses to undergo a medical examination as directed
by the plan administrator (such a medical examination may not be required
more frequently than once in any given twelve-month period), the payment
of disability retirement benefits shall cease.
E.
Cessation of disability. A participant who is receiving payment of
disability retirement benefits under this plan must notify the plan
administrator of any medical change indicating that the participant
may no longer be entitled to receive disability retirement benefits.
If a participant fails to provide prompt notice to the plan administrator
of any such change in status and continues to receive payment of disability
retirement benefits to which the participant is no longer entitled,
then the plan may take whatever action is necessary to recover any
such payments, including legal action or offsetting such amounts against
any future payments of retirement or other benefits under the plan,
including the costs of such actions, provided that an equivalent position
was available to the participant during the period of time when he
or she was no longer entitled to disability retirement benefits.
A.
Death of participant. Upon the occurrence of the death of a participant,
there shall be benefits payable in accord with the following subsections
of this section.
B.
Survivor benefit.[1]
(1)
The surviving spouse of a participant or a participant who retires
on pension who dies, or if no spouse survives or if the spouse survives
and subsequently dies, then the child or children under the age of
18 years or, if attending college, under or attaining the age of 23
years, of a participant or a participant who retires on pension who
dies, shall during his/her lifetime in the case of a surviving spouse
or until reaching the age of 18 years or, if attending college, under
or attaining the age of 23 years in the case of a child or children,
be entitled to receive a pension calculated at 50% of the pension
the participant was receiving or would have been receiving had the
participant been retired at the time of the participant's death.
The shares payable to the surviving dependent children shall be adjusted
as each child ceases to be eligible to receive a share of the benefit
hereunder. ("Attending college" shall mean the eligible children are
registered at an accredited institution of higher learning and are
carrying a minimum class load of seven credit hours per semester.)
(2)
Instead of and in lieu of the survivor benefit set forth herein,
the surviving spouse of a participant who shall have died prior to
the commencement of payment of a retirement benefit under this plan
shall be permitted to elect to receive a distribution of the participant's
accumulated contributions, and no additional benefits shall be due
and payable under the plan.
C.
Death of participant without a survivor benefit. If a participant
shall die before payment of a benefit has commenced and without eligibility
for payment of a survivor benefit, the beneficiary shall be eligible
to receive a distribution in an amount equal to the accumulated contributions
of the participant as of the date of death of the participant. If
the participant has received disability retirement benefits or any
other retirement benefits hereunder, the amount of distribution of
accumulated contributions shall be reduced by the amount of disability
retirement benefits or other retirement benefits which have been paid
hereunder.
[Amended 4-13-2010 by Ord. No. 1883[2]]
[2]
Editor's Note: This ordinance shall take effect 4-14-2010.
A.
Rights of terminated employees. A participant who shall cease to
be an employee except as otherwise hereinbefore provided shall have
all interest and rights under this plan limited to those contained
in the following sections of this section.
B.
Distribution of accumulated contributions. When a participant's
employment with the employer shall terminate for any reason other
than death or total and permanent disability prior to attainment of
normal retirement age, the participant shall be entitled to receive
a distribution of accumulated contributions. Upon receipt of such
accumulated contributions, said participant and beneficiary shall
not be entitled to any further payments from the plan.
C.
Deferred retirement benefit. A participant who shall have completed at least 12 years of aggregate service and whose employment shall terminate for any reason other than due to death or total and permanent disability prior to attainment of normal retirement age shall be entitled to elect to vest retirement benefits under the plan by filing a written notice of the intention to vest with the plan administrator within 90 days after the date employment ceases. Such an election to receive a deferred retirement benefit shall be in lieu of a distribution of accumulated contributions under Subsection B. Such a deferred retirement benefit shall be equal to the participant's accrued benefit as of the date employment terminates and shall commence after application pursuant to § 47-134F and not earlier than the date which would be the participant's normal retirement date under the plan if the participant remained in employment until such date.
A.
Plan administrator. The plan administrator shall be the Committee
or the individual appointed by the Board who shall have the power
and authority to do all acts and to execute, acknowledge and deliver
all instruments necessary to implement and effectuate the purpose
of this plan. The plan administrator may delegate authority to act
on its behalf to any persons it deems appropriate. If a plan administrator
is not appointed, the Board shall be the plan administrator.
B.
Pension and Insurance Committee. The Board shall appoint a Pension
and Insurance Committee to administer the affairs of the plan. The
Board shall delegate such authority as it shall deem appropriate to
the Committee. The Committee, if one is appointed, shall consist of
not less than five members. Two members of the Committee may be employees,
provided that such employees shall be nonvoting members. Each member
of the Committee shall serve in that capacity until death, resignation,
removal or otherwise. Each member may be removed at any time, with
or without cause, by the Board. Each member may resign by delivering
written notice to the Board and other members of the Committee. Vacancies
on the Committee shall be filled in the same manner as the position
was originally filled by the Board; provided, however, that the remaining
members of the Committee shall have full power to act pending the
filling of such vacancies.
C.
Authority and duties of the plan administrator.
(1)
The plan administrator shall have full power and authority to do
whatever shall, in its judgment, be reasonably necessary for the proper
administration and operation of the plan. The interpretation or construction
placed upon any term or provision of the plan by the plan administrator
or any action of the plan administrator taken in good faith shall,
upon the Board's review and approval thereof, be final and conclusive
upon all parties hereto, whether employees, participants or other
persons concerned. By way of specification and not limitation and
except as specifically limited hereafter, the plan administrator is
authorized:
(a)
To construe this plan;
(b)
To determine all questions affecting the eligibility of any
employee to participate herein;
(c)
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary;
(d)
To authorize any and all disbursements;
(e)
To prescribe any procedure to be followed by any participant
or other person in filing any application or election;
(f)
To prepare and distribute, in such manner as may be required
by law or as the plan administrator deems appropriate, information
explaining the plan;
(g)
To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan; and
(h)
To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws.
(2)
The plan administrator shall have no power to add to, subtract from
or modify the terms of the plan or change or add to any benefits provided
by the plan, or to waive or fail to apply any requirements of eligibility
for benefits under the plan. Further, the plan administrator shall
have no power to adopt, amend or terminate the plan, to select or
appoint any trustee or to determine or require any contributions to
the plan, said powers being exclusively reserved to the Board.
D.
Pension and Insurance Committee organization. The Committee may organize
itself in any manner deemed appropriate to effectuate its purposes
hereunder, provided that it shall operate and act by a majority of
its members at the time in office either by vote at a meeting or in
writing without a meeting. The Committee shall appoint a Chairman,
a Secretary who may, but need not, be a Committee member, and such
other agents as it may deem advisable. The Committee may authorize
any one or more of its members to execute any document or documents,
including any application, request, certificate, notice, consent,
waiver or direction, and shall notify the Board, in writing, of each
such member so authorized; however, if no such member is so authorized,
the Chairman shall be deemed to be so authorized. Any trustee or other
fiduciary appointed hereunder shall accept and be fully protected
in relying upon any document executed by the designated members (or
the Chairman in the absence of a designation), as representing a valid
action by the Committee until the Committee shall file with such fiduciary
a written revocation of such designation. The Committee shall meet
at least one time in each plan year, and it shall maintain and keep
such records as are necessary for the efficient operation of the plan
or as may be required by any applicable law, regulation or ruling,
and shall provide for the preparation and filing of such forms, reports
or documents as may be required to be filed with any governmental
agency or department and with the participants or other persons entitled
to benefits under the plan.
E.
Plan administrator costs. The plan administrator shall serve without
compensation for services unless otherwise agreed by the Board in
writing. All reasonable expenses incident to the functioning of the
plan administrator, including, but not limited to, fees of accountants,
counsel, actuaries and other specialists, and other costs of administering
the plan, may be paid from the pension fund upon approval by the Board
to the extent permitted under applicable law and not otherwise paid
by the employer.
F.
Hold harmless. No member of the Board, the plan administrator, the
enrolled actuary, nor any other person involved in the administration
of the plan shall be liable to any person on account of any act or
failure to act which is taken or omitted to be taken in good faith
in performing their respective duties under the terms of this plan.
To the extent permitted by law, the employer shall, and hereby does
agree to, indemnify and hold harmless the plan administrator and each
successor and each of any such individual's heirs, executors
and administrators, and the delegates and appointees (other than any
person, bank, firm or corporation which is independent of the employer
and which renders services to the plan for a fee) from any and all
liability and expenses, including counsel fees, reasonably incurred
in any action, suit or proceeding to which such person is or may be
made a party by reason of being or having been a member, delegate
or appointee of the plan administrator, except in matters involving
criminal liability, intentional or willful misconduct. If the employer
purchases insurance to cover claims of a nature described above, then
there shall be no right of indemnification except to the extent of
any deductible amount under the insurance coverage or to the extent
of the amount the claims exceed the insured amount.
G.
Approval of benefits. The plan administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
H.
Appeal procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the plan ("claimant") shall first seek
a resolution of such claim under the procedure hereinafter set forth.
(1)
Any claimant shall file a notice of the claim with the plan administrator
which shall fully describe the nature of the claim. The plan administrator
shall review the claim and make an initial determination approving
or denying the claim.
(2)
If the claim is denied in whole or in part, the plan administrator
shall, within 90 days (or such other period as may be established
by applicable law) from the time the application is received, mail
notice of such denial to the claimant. Such ninety-day period may
be extended by the plan administrator if special circumstances so
require for up to 90 additional days by the plan administrator's
delivering notice of such extension to the claimant within the first
ninety-day period. Any notice hereunder shall be written in a manner
calculated to be understood by the claimant and, if a notice of denial,
shall set forth:
(3)
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Board of the initial
determination. Such request for review must be made by notice to the
Board within 60 days of receipt of such notice of denial. During such
review, the claimant or a duly authorized representative shall have
the right to review any pertinent documents and to submit any issues
or comments in writing. The Board shall, within 60 days after receipt
of the notice requesting such review (or in special circumstances,
such as where the Board in its sole discretion holds a hearing, within
120 days of receipt of such notice), submit its decision in writing
to the person or persons whose claim has been denied. The decision
shall be final, conclusive and binding on all parties, shall be written
in a manner calculated to be understood by the claimant and shall
contain specific references to the pertinent plan provisions on which
the decision is based.
(4)
Any notice of a claim questioning the amount of a benefit in pay
status shall be filed within 90 days following the date of the first
payment which would be adjusted if the claim is granted unless the
plan administrator allows a later filing for good cause shown.
(5)
A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
(6)
Nothing contained herein is intended to abridge any right of a claimant to appeal any final decision hereunder to a court of competent jurisdiction under 2 Pa.C.S.A. § 752. No decision hereunder is a final decision from which such an appeal may be taken until the entire appeal procedure of this Subsection H of the plan has been exhausted.
A.
Operation of the pension fund.
(1)
The Board is hereby authorized to hold and supervise the investment
of the assets of the pension fund, subject to the provisions of the
laws of the commonwealth and of this plan and any amendment thereto.
(2)
The pension fund shall be used to pay benefits as provided in the
plan and, to the extent not paid directly by the employer, to pay
the expenses of administering the plan pursuant to authorization by
the employer.
(3)
The employer intends the plan to be permanent and for the exclusive
benefit of its employees. It expects to make the contributions to
the pension fund required under the plan. The employer shall not be
liable in any manner for any insufficiency in the pension fund; benefits
are payable only from the pension fund, and only to the extent that
there are monies available therein. The pension fund will consist
of all funds held by the employer under the plan, including contributions
made pursuant to the provisions hereof and the investments, reinvestments
and proceeds thereof. The pension fund shall be held, managed and
administered pursuant to the terms of the plan. Except as otherwise
expressly provided in the plan, the employer has exclusive authority
and discretion to manage and control the pension fund assets. The
employer may, however, appoint a trustee, custodian or investment
manager, at its sole discretion.
B.
Powers and duties of employer. With respect to the pension fund,
the employer shall have the following powers, rights and duties, in
addition to those vested in it elsewhere in the plan or by law, unless
such duties are delegated:
(1)
To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), without liability for interest thereon.
(2)
To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time legal investments for fiduciaries
under the Pennsylvania Fiduciaries Investment Act,[1] or as the same may be subsequently modified or amended.
[1]
Editor's Note: See 20 Pa.C.S.A. § 101 et seq.
(3)
To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
(4)
To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)
To exercise all voting rights with respect to property held in the
fund and, in connection therewith, to grant proxies, discretionary
or otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this plan no matter where situated, including,
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
(8)
In addition to the foregoing powers, the employer shall also have
all of the powers, rights and privileges conferred upon trustees by
the Pennsylvania Fiduciaries Investment Act, or as the same may be
subsequently modified or amended, and the power to do all acts, take
all proceedings and execute all rights and privileges, although not
specifically mentioned herein, as the employer may deem necessary
to administer the pension fund.
(9)
To maintain and invest the assets of this plan on a collective and
commingled basis with the assets of other pension plans maintained
by the employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
(10)
To invest the assets of the pension fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder. In this connection,
the commingling of the assets of this plan with assets of other eligible,
participating plans through such a medium is hereby specifically authorized.
Any assets of the plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
plan, to the extent of the participation in such collective or commingled
trust fund by the plan.
(11)
To make any payment or distribution required or advisable to
carry out the provisions of the plan, provided that if a trustee is
appointed by the employer, such trustee shall make such distribution
only at the direction of the employer.
(12)
To compromise, contest, arbitrate, enforce or abandon claims
and demands with respect to the plan.
(13)
To retain any funds or property subject to any dispute without
liability for the payment of interest thereon, and to decline to make
payment or delivery thereof until final adjudication is made by a
court of competent jurisdiction.
(14)
To pay, and to deduct from and charge against the pension fund,
any taxes which may be imposed thereon, whether with respect to the
income, property or transfer thereof, or upon or with respect to the
interest of any person therein which the fund is required to pay;
to contest, in its discretion, the validity or amount of any tax,
assessment, claim or demand which may be levied or made against or
in respect of the pension fund, the income, property or transfer thereof,
or in any matter or thing connected therewith.
(15)
To appoint any persons or firms (including, but not limited
to, accountants, investment advisors, counsel, actuaries, physicians,
appraisers, consultants, professional plan administrators and other
specialists), or otherwise act to secure specialized advice or assistance
as it deems necessary or desirable in connection with the management
of the fund; to the extent not prohibited by applicable law, the employer
shall be entitled to rely conclusively upon and shall be fully protected
in any action or omission taken by it in good faith reliance upon
the advice or opinion of such persons or firms, provided such persons
or firms were prudently chosen by the employer, taking into account
the interests of the participants and beneficiaries and with due regard
to the ability of the persons or firms to perform their assigned functions.
(16)
To retain the services of one or more persons or firms for the
management of (including the power to acquire and dispose of) all
or any part of the fund assets, provided that each of such persons
or firms is registered as an investment advisor under the Investment
Advisors Act of 1940, is a bank (as defined in that act), or is an
insurance company qualified to manage, acquire or dispose of pension
trust assets under the laws of more than one state; in such event,
the employer shall follow the directions of such investment manager
or managers with respect to the acquisition and disposition of fund
assets, but shall not be liable for the acts or omissions of such
investment manager or managers, nor shall it be under any obligation
to review or otherwise manage any fund assets which are subject to
the management of such investment manager or managers. If the employer
appoints a trustee, the trustee shall not be permitted to retain such
an investment manager except with the express written consent of the
employer.
C.
Common investments. The employer shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account, but may invest contributions
and any profits or gains therefrom in common investments.
D.
Compensation and expenses of appointed trustee. If a trustee is appointed,
the trustee shall be entitled to such reasonable compensation as shall
from time to time be agreed upon by the employer and the trustee,
unless such compensation is prohibited by law. Such compensation,
and all expenses reasonably incurred by the trustee in carrying out
its functions, shall constitute a charge upon the employer or the
pension fund, which may be executed at any time after 30 days'
written notice to the employer. The employer shall be under no obligation
to pay such costs and expenses, and in the event of its failure to
do so, the trustee shall be entitled to pay the same or to be reimbursed
for the payment thereof from the pension fund.
E.
Periodic accounting. If a trustee is appointed, the pension fund
shall be evaluated annually or at more frequent intervals by the trustee
and a written accounting rendered as of each fiscal year end of the
fund and as of the effective date of any removal or resignation of
the trustee, and such additional dates as requested by the employer,
showing the condition of the fund and all receipts, disbursements
and other transactions effected by the trustee during the period covered
by the accounting, based on fair market values prevailing as of such
date.
F.
Value of the pension fund. All determinations as to the value of
the assets of the pension fund, and as to the amount of the liabilities
thereof, shall be made by the employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the participants and beneficiaries and their estates. In making
any such determination, the employer or trustee shall be entitled
to seek and rely upon the opinion of or any information furnished
by brokers, appraisers and other experts and shall also be entitled
to rely upon reports as to sales and quotations, both on security
exchanges and otherwise as contained in newspapers and in financial
publications.
A.
Amendment of the plan. The employer may amend this plan at any time
or from time to time by an instrument in writing executed in the name
of the employer under its Municipal Seal by officers duly authorized
to execute such instrument and delivered to the Board; provided, however:
(1)
That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which each is
entitled under this plan with respect to contributions previously
made;
B.
Termination of the plan. The employer shall have the power to terminate
this plan in its entirety at any time by an instrument in writing
executed in the name of the employer.
C.
Automatic termination of contributions. Subject to the provisions
of the Act governing financially distressed municipalities, the liability
of the employer to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
D.
Distribution upon termination.
(1)
In the event of the termination of the plan, all amounts of vested
benefits accrued by the affected participants as of the date of such
termination, to the extent funded on such date, shall be nonforfeitable
hereunder. In the event of termination of the plan, the employer shall
direct either:
(a)
That the plan administrator continue to hold the vested accrued
benefits of participants in the pension fund in accordance with the
provisions of the plan (other than those provisions related to forfeitures),
without regard to such termination, until all funds have been distributed
in accordance with the provisions; or
(b)
That the plan administrator immediately distribute to each participant
an amount equal to the vested accrued benefit to the date.
(2)
If there are insufficient assets in the pension fund to provide for
all vested accrued benefits as of the date of plan termination, priority
shall first be given to the distribution of any amounts attributable
to mandatory or voluntary employee contributions before assets are
applied to the distribution of any vested benefits attributable to
other sources hereunder.
(3)
All other assets attributable to the terminated plan shall be distributed
and disposed of in accordance with the provisions of applicable law
and the terms of any instrument adopted by the employer which effects
such termination.
E.
Residual assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the employer
insofar as such return does not contravene any provision of law, and
any remaining balance, in excess of employer contributions, shall
be returned to the commonwealth.
F.
Exclusive benefit rule. In the event of the discontinuance and termination
of the plan as provided herein, the employer shall dispose of the
pension fund in accordance with the terms of the plan and applicable
law; at no time prior to the satisfaction of all liabilities under
the plan shall any part of the corpus or income of the pension fund,
after deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
A.
Actuarial valuations.
(2)
Such biennial actuarial valuation report shall be made as of the
beginning of each plan year occurring in an odd-numbered calendar
year, beginning with the year 1985.
(3)
Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in the Act.
(4)
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by the Act or any other expense which
is permissible under the terms of the Act and which are directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the pension fund. Such allowable expenses
shall include but not be limited to the following:
(a)
Investment costs associated with obtaining authorized investments
and investment management fees;
(b)
Accounting expenses;
(c)
Premiums for insurance coverage on fund assets;
(d)
Reasonable and necessary counsel fees incurred for advice or
to defend the fund; and
(e)
Legitimate travel and education expenses for plan officials;
provided, however, that the municipal officials of the employer, in
their fiduciary role, shall monitor the services provided to the plan
to ensure that the expenses are necessary, reasonable and benefit
the plan; and further provided that the plan administrator shall document
all such expenses item by item and, where necessary, hour by hour.
B.
Duties of chief administrative officer.
(1)
Such actuarial reports shall be prepared and filed under the supervision
of the chief administrative officer.
(2)
The chief administrative officer of the plan shall determine the
financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum municipal obligation
of the employer with respect to funding the plan for any given plan
year. The chief administrative officer shall submit the financial
requirements of the plan and the minimum municipal obligation of the
employer to the Board annually and shall certify the accuracy of such
calculations and their conformance with the Act.
C.
Benefit plan modifications. Prior to the adoption of any benefit
plan modification by the employer, the chief administrative officer
of the plan shall provide to the Board a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Board the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum municipal obligation of the employer
with respect to the plan.
A.
Employment rights. No employee of the employer, nor any other person,
shall have any rights whatsoever against the employer or the plan
administrator as a result of this plan except those expressly granted
hereunder. Participation in this plan shall not give any right to
any employee to be retained in the employ of the employer, nor shall
it interfere with the right of the employer to discharge any employee
and to deal with such employee without regard to the effect such treatment
might have upon participation in this plan.
B.
Meaning of certain words. For purposes of this plan, the masculine
gender shall include the feminine gender and the singular shall include
the plural, and vice versa, in all cases wherever the person or context
shall plainly so require. Headings of articles and sections are inserted
only for convenience of reference and are not to be considered in
the construction of the plan.
C.
Information to be furnished by the employer. The employer shall furnish
to the plan administrator (and, where applicable, the trustee) information
in the employer's possession as the plan administrator and the
trustee shall require from time to time to perform their duties under
the plan.
D.
Severability of provisions. Should any provisions of this plan be
held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this plan, and the plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted herein.
E.
Incapacity of participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of pension benefits hereunder, the plan administrator, upon
the receipt of satisfactory evidence that such participant is so incapacitated
and that another person or institution is maintaining the participant
and that no guardian or committee has been appointed for the participant,
may provide for such payment of pension benefits hereunder to such
person or institution so maintaining the participant, and any such
payments so made shall be deemed for every purpose to have been made
to such participant.
F.
Pension fund for sole benefit of participants. The income and principal
of the pension fund are for the sole use and benefit of the participants
covered hereunder, and to the extent permitted by law shall be free,
clear and discharged from and are not to be in any way liable for
debts, contracts or agreements now contracted or which may hereafter
be contracted and from all claims and liabilities now or hereafter
incurred by any participant or beneficiary.
G.
Benefits for a deceased participant. If any benefit shall be payable
under the plan to or on behalf of a participant who has died, if the
plan provides that the payment of such benefits shall be made to the
participant's estate, and if no administration of such participant's
estate is pending in the court of proper jurisdiction, then the plan
administrator, at its sole option, may pay such benefits to the surviving
spouse of such deceased participant or, if there is no surviving spouse,
to such participant's then living issue, per stirpes; provided,
however, that nothing contained herein shall prevent the plan administrator
from insisting upon the commencement of estate administration proceedings
and the delivery of any such benefits to a duly appointed executor
or administrator.
H.
Assets of the fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
I.
Personal liability. Subject to the provisions of the Act and unless
otherwise specifically required by other applicable laws, no past,
present or future officer or agent of the employer or plan administrator
shall be personally liable to any participant, beneficiary or other
person under any provision of the plan.
J.
Construction of document. This plan may be executed and/or conformed
in any number of counterparts, each of which shall be deemed an original
and shall be construed and enforced according to the laws of the commonwealth,
excepting such commonwealth's choice of law rules.
[Added 12-13-2011 by Ord.
No. 1902]
The following provisions are added to the plan. Any prior provisions
that are inconsistent with the provisions in this section are hereby
superseded.
A.
The purpose of this section is to comply with the Pension Protection
Act of 2006 (PPA)[1] and the Heroes Earnings Assistance Relief Tax Act (HEART
Act).[2] 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.
C.
Section 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 any eligible rollover distribution (including distributions
containing after-tax contributions) that is transferred in a direct
trustee-to-trustee transfer to a Section 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:
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.
