[HISTORY: Adopted by the Board of Commissioners of the City of Margate
City 8-13-1987 by Ord. No. 1987-16. Amendments noted where applicable.]
A.Â
This plan was established to provide retirement, disability
and survivor pension benefits for the individuals who serve on the City of
Margate Lifeguard Force. It became effective as of January 1, 1987, and shall
be called the "City of Margate Pension Plan for Lifeguards" (or the "plan").
B.Â
AVERAGE COMPENSATION
COMPENSATION
EFFECTIVE DATE
ELIGIBLE EMPLOYEE
EMPLOYER
FUND or PENSION FUND
ONE-YEAR SERVICE BREAK
SPOUSE
YEAR OF SERVICE
When any of the following terms appear in this document
with an initial capital letter, it shall have the meaning set forth next to
it below:
An Employee's Compensation averaged over the three years during which
his Compensation was the greatest. Furthermore, in connection with calculating
a plan member's disability or survivor pension, his "Average Compensation"
will be determined by averaging his Compensation for the three years immediately
preceding his death or disability.
The total cash remuneration (as reported on his Form W-2) earned
by an employee during a calendar year for his services on the Employer's lifeguard
force.
January 1, 1987.
An individual who is employed by the City of Margate City as a guard
or officer on its lifeguard force.
The City of Margate, a City of the fourth class, in the County of
Atlantic, in the State of New Jersey.
The special account maintained by the City Treasurer on behalf of
this plan and its members.
Occurs on September 1 of the first calendar year in which an Employee
fails to complete a Year of Service. Furthermore, a "One-Year Service Break"
shall be deemed to have occurred as of the date an Employee resigns or is
discharged from the Employer's lifeguard force.
The person to whom a plan member is lawfully married at the time
of his death.
A calendar year in which an employee is paid for at least 50 days
of employment as an Employee. However, with respect to any calendar year prior
to the Effective Date, the fifty-day requirement shall be deemed satisfied
if an Employee was paid for at least one day of employment as an Employee.
Employment with any other municipality or government unit as a lifeguard will
not be counted in determining an individual's Years of Service for this plan.
A.Â
Plan membership. An Eligible Employee shall become a
plan member upon employment.
B.Â
Employee contributions. Employee contributions shall
be withheld from a plan member's Compensation at the rate of 4% and contributed
to the plan on his behalf.
C.Â
Notification of eligibility. Within 30 days after becoming
a plan member, an Eligible Employee shall be notified of his obligation with
respect to the above-described Employee contributions.
D.Â
Past service contributions.
(1)Â
Each plan member shall be required to contribute to the
Pension Fund an amount equal to 4% of his 1985 Compensation multiplied by
his Years of Service completed before the Effective Date. This contribution
shall be called his "past service contribution." If a plan member did not
receive any Compensation for 1985, his Compensation for the first year after
1985 for which he received Compensation shall be used to determine his past
service contribution. No interest shall be added in determining a plan member's
past service contribution.
(2)Â
A plan member's past service contribution shall be withheld from his Compensation during 1987 or, if no Compensation is received during 1987, during the first year after 1987 for which he receives Compensation. Past service contributions will be withheld in addition to the contributions described in Subsection B above. However, the past service contribution withheld from a plan member's Compensation for any year shall not exceed $500 unless the plan member consents thereto. Such portion of his past service contribution which remains unpaid by operation of the preceding sentence shall be withheld from his Compensation for the next following year(s) until completely paid. A plan member may pay all or part of his past service contribution directly to the Pension Fund in addition to the payroll withholding described in this section.
(3)Â
Any benefit under this plan which is conditioned on the
completion of a minimum number of Years of Service, some of which were completed
prior to the Effective Date, will also be conditioned on the full payment
of the plan member's past service contribution.
A.Â
Conditions to be satisfied. A plan member may retire
with a pension only after his 45th birthday and after he has completed 20
Years of Service, the last 10 of which must have been completed immediately
preceding his application. This pension shall be known as his "normal pension."
It shall commence no earlier than his 45th birthday, but it shall vest after
20 Years of Service, the last 10 years of which are continuous.
B.Â
Amount and form of pension. A plan member's annual normal pension shall be equal to 50% of his Average Compensation. It shall be paid in monthly installments starting on the later of the member's 45th birthday or his actual retirement date and ending with the payment for the month in which his death occurs. However, postretirement death benefits may be available which provide for the continuation of such pension after the death of the plan member. (See § A286-5.) If the commencement of a plan member's normal pension is deferred by his continued employment (as an Employee) after his 45th birthday, the amount of his normal pension will not change, except to reflect changes in his Average Compensation. No optional or alternate payment arrangements are available for pensions described in this section or for disability or survivor pensions.
A.Â
Conditions to qualify for disability pension. To qualify
for a disability pension, a plan member must have suffered a disability (see
below) which occurred during, or which was the direct result of, the performance
of his duties as an Employee. Furthermore, he must have been a plan member
at the time such duties were performed. However, a disability which occurs
during, in connection with or while traveling to or from any sports or competitive
event shall not be covered under this section.
B.Â
Disability defined. For purposes of this section, disability
shall mean the inability to engage in any substantial, gainful activity by
reason of a medically determinable physical or mental impairment which can
be expected to result in death or has lasted for a continuous period of at
least 12 months. To the extent that additional clarification or guidance is
needed in applying the preceding definition to determine whether a plan member
qualifies for a disability pension, the Committee may look to the Federal
Social Security Law and regulations thereunder with regard to social security
disability benefits.
C.Â
Procedures for determining a disability. In reaching
its decision with respect to granting a disability pension, the Committee
shall rely on a licensed physician it selects to interpret the medical evidence
submitted in connection therewith.
D.Â
Amount of disability pension. The disability pension
shall commence on the first day of the 13th month following the onset of the
plan member's disability and continue until the month of his death. The disability
pension will equal the normal pension which would have been paid to the plan
member had he remained an Eligible Employee until his 45th birthday and will
be based on his Average Compensation as calculated prior the occurrence of
such disability. There will be no actuarial reduction in the disability pension
by reason of an earlier commencement date as compared to the normal pension.
E.Â
Discontinuance of disability pension. If during any period
prior to the plan member's 45th birthday it is determined by the Committee
that his condition no longer satisfies the definition of disability, his disability
pension may be discontinued by the Committee until the earlier of the date
as of which his condition again meets the definition of disability or his
45th birthday, provided that he had completed 15 Years of Service prior to
the occurrence of the disability.
A.Â
Conditions and payees. If a plan member dies before he has incurred a One-Year Service Break (see § A286-1B) and prior to the commencement of any benefits payable under § A286-3 or A286-4, a survivor pension shall be paid to and shared by the individual(s) named in one of the following survivor classes:
(1)Â
His Spouse, until the earlier of her remarriage or death.
(2)Â
If there is no surviving Spouse or if she subsequently
dies or remarries, then the survivor pension will be paid to and split among
the plan member's minor children who have not yet reached their 16th birthday.
No survivor pension will be paid to any such child after his or her 16th birthday.
(3)Â
If, and only if, there is no surviving Spouse or surviving
children under age 16 at the plan member's death, the survivor pension will
be paid to or shared by the dependent parent or parents of the plan member.
The same tests which are currently applicable with respect to claiming a dependent
parent for federal income tax purposes shall be applied with respect to the
survivor pension. The survivor pension shall cease at the death of the last
surviving dependent parent.
B.Â
Amount of survivor pension. The survivor pension shall be equal to the normal pension which would have been paid to the plan member had he remained an Eligible Employee until his 45th birthday, based on his Average Compensation determined immediately before his death. There will be no actuarial reduction in the amount of survivor pension due to an earlier commencement date as compared to the normal pension. The amount provided under this Subsection B shall be divided equally among all recipients currently entitled to share therein.
C.Â
Survivor pension after benefits have commenced. If a plan member dies after payment of his normal pension or disability pension has commenced, a survivor pension shall be paid to, and shared by, the persons named in one of the survivor classes set forth in Subsection A above. The survivor pension described in this subsection shall be the same monthly amount as was being paid to the plan member immediately before his death, which shall be divided equally among all persons in the same survivor class who are entitled thereto.
A.Â
Employer contributions.
(1)Â
Each year the Employer shall contribute to this plan
4% of the aggregate Compensation paid to plan members for such year. This
contribution shall be paid into a Pension Fund (or "Fund"). The Fund shall
be maintained as a segregated account by the City Treasurer, to be used solely
for the accumulating and disbursing of moneys for benefits provided under
the plan. The Fund shall be invested by the Pension Committee.
(2)Â
Any fines imposed upon a member of the lifeguard force,
money given or donated to the Fund, money deducted from the salary of a member
of the force because of absence or loss of time and half of any reward paid
to the lifeguard force or any member thereof shall be added to the Pension
Fund.
(3)Â
The Employer shall contribute an additional amount (supplemental
contribution) each year so that the Fund will be sufficient to honor its benefit
commitments. The supplemental contribution shall be determined upon the advice
of the plan actuary retained by the Employer for this purpose, in accordance
with generally accepted actuarial methods. The Employer may omit its supplemental
contribution for a particular year if warranted by the actuarial soundness
of the plan and if such omission is in accordance with the recommendations
of the plan actuary.
B.Â
Employee contributions. An amount equal to 4% of a plan member's Compensation plus any past service contributions required pursuant to § A286-2D shall be deducted from his Compensation and deposited into the Fund. Upon payment of any pension benefits (including disability and survivor pensions) by the plan, the Employee contribution account maintained in connection with such benefits shall be canceled and plan benefits based solely on the terms of the plan.
A.Â
Appointment. The Mayor of the Employer, with the advice and consent of the governing body thereof, shall appoint a Pension Committee (or "Committee") consisting of four individuals. One member shall be a superior officer of the lifeguard force, one a lifeguard and two citizens. For purposes of the preceding sentence, any active or former member of the lifeguard force shall be regarded as a lifeguard. Each member of the Pension Committee shall serve for a term of four years subject to Subsection B below and may be reappointed at the expiration of such four-year term. No member of the Pension Committee shall receive compensation for his services to the Committee, except for reimbursement for expenses incurred in connection therewith.
B.Â
Removal or resignation. The Mayor may remove a member
of the Pension Committee by giving written notice to the member. A member
may resign from the Pension Committee by giving written notice to the Mayor.
C.Â
Duties and responsibilities. The Committee shall be responsible
for the administration of this plan in accordance with the terms and provisions
herein contained. It shall possess such general authority and powers as are
necessary for the discharge of its duties, including but not limited to the
power to:
(1)Â
Construe, interpret and apply the plan and, in so doing,
to correct any defect, omission or inconsistency as may be required to carry
out what it reasonably believes to be the intent and objectives of the plan.
(2)Â
Decide all claims and questions with respect to plan
membership, entitlement to benefits and the amount and commencement date thereof.
(3)Â
Approve and direct all disbursements from the Pension
Fund, including benefit and expense disbursements.
(4)Â
Direct the investment of the Fund assets.
(5)Â
Establish rules, procedures and forms necessary for the
administration of this plan.
D.Â
Operating procedures. All acts and decisions of the Pension
Committee shall be by majority (of those present) vote at any duly called
meeting. All decisions shall be binding and conclusive, subject to a claims
review procedure which might be established by the Committee. No Committee
member shall vote or otherwise participate in a decision pertaining specifically
to his own benefits from the plan. The members of the Committee accept no
liability for any act or omission except those for which they are responsible
under the terms of this plan.
A.Â
Amendments. The Employer may amend this plan at any time
by the same procedure used in connection with its establishment. Benefits
payable to a plan member who has terminated his employment as an Employee
shall be determined under the plan in effect when such employment terminated.
B.Â
Termination. The Employer may terminate this plan by
the same procedure used in connection with its establishment. However, if
the plan is terminated before all benefits in pay status have been provided
from the Fund, plan assets will remain in the Fund until it is determined,
upon the advice of the plan actuary, that the Fund assets exceed the actuarial
liability of plan benefits in pay status, at which time the surplus will be
returned to the general fund of the City Treasury. Any benefit not yet in
pay status but for which all of the qualifying conditions have been satisfied
prior to the termination of the plan shall be regarded as a benefit in pay
status.
C.Â
Rules of construction.
(1)Â
If any provision hereof is subject to more than one interpretation
or construction, it shall be interpreted or construed in such a manner as
is consistent with the intent that this plan comply with the requirements
of the laws of New Jersey.
(2)Â
If any provision of this plan is held invalid or unenforceable,
such invalidity or unenforceability shall not affect any other provision,
and the plan shall be construed and enforced as if such provisions had not
been included.
(3)Â
Whenever used herein, singular words include the plural
and masculine pronouns include the feminine, unless the context clearly indicates
to the contrary.
(4)Â
The titles and headings in this plan are for convenience
of reference only and are not to be considered in the interpretation of any
provision hereof.
Should any section, paragraph, sentence, clause or phrase of this ordinance
be declared unconstitutional or invalid for any reason, the remaining portion
of this ordinance shall not be affected thereby and shall remain in full force
and effect, and to this end the provisions of this ordinance are hereby declared
to be severable.
This ordinance shall take effect upon final passage, approval and publication
according to law.