[HISTORY: Adopted by the Borough Council of the Borough of
Malvern as indicated in article histories. Amendments noted where
applicable.]
[Adopted 4-16-2013 by Ord. No. 2013-2]
The Borough Council of the Borough of Malvern is hereby authorized
to execute the Delaware Valley Workers' Compensation Trust Agreement
for the participation of the Borough of Malvern in the Delaware Valley
Workers' Compensation Trust, which agreement is attached hereto
as Exhibit A and is on file for inspection and review at the offices
of the Borough of Malvern, 1 East First Avenue, Suite 3, Malvern,
Pennsylvania 19355. This agreement may be amended after the enactment
of this article to conform to any requirements imposed by the Commonwealth
of Pennsylvania and any of its agencies, including the Department
of Labor and Industry, Bureau of Workers' Compensation.
The participation of the Borough of Malvern in the Delaware
Valley Workers' Compensation Trust is authorized for the purposes
of enabling the Borough of Malvern to reduce the cost of workers'
compensation claims through its participation in a group self-insurance
fund.
The Commonwealth of Pennsylvania Department of Labor and Industry,
Bureau of Workers' Compensation, has approved the issuance of
a permit to the Delaware Valley Workers' Compensation Trust to
operate as a group self-insurance fund, subject to certain conditions.
As an approved self-insurance fund, the Delaware Valley Workers'
Compensation Trust will be responsible for the payment of workers'
compensation claims on behalf of all trust participants.
As set forth in the Delaware Valley Workers' Compensation
Trust Agreement, the following conditions, among others, apply to
the participation of the Borough of Malvern in the Delaware Valley
Workers' Compensation Trust:
A.
That the trust shall consist of at least five homogeneous municipal
participants organized as local government agencies under Pennsylvania
law;
B.
That each participant satisfies all eligibility and admission requirements
for membership in the trust;
C.
That each participant pledges and agrees to appropriate funds to
pay all its annual contributions and assessments which are required
for the creation of a fund maintained at a level sufficient to pay
all workers' compensation claims and related expenses incurred
by the trust participants;
D.
That each participant agrees to jointly and severally assume and
discharge the workers' compensation liabilities of each and every
other participant in accordance with the Delaware Valley Workers'
Compensation Trust Agreement when required to do so by the Department
of Labor and Industry, Bureau of Workers' Compensation;
E.
That each participant will institute any and all safety regulations,
loss prevention measures or risk management procedures as may be required
for the purpose of minimizing or eliminating workplace risks to its
employees;
F.
That each participant cooperates fully with the trust's service
and fiscal agents, attorneys, claims adjusters and any agents or employees
of the trust with respect to the investigation, defense and settlement
of claims;
G.
That each participant designates a person to be responsible for all
contacts with the trust;
H.
That each participant provides any information to the Administrator
or Board of Trustees as may be required to effect the purposes and
objectives of the trust; and
I.
That each participant complies with all applicable statutes and regulations
governing the payment of workers' compensation claims, including,
but not limited to, the Pennsylvania Workers' Compensation Act
and any regulations promulgated thereunder.
The Borough of Malvern agrees to participate in the Delaware
Valley Workers' Compensation Trust for a minimum period of two
years, subject to the terms and conditions of the Delaware Valley
Workers' Compensation Trust Agreement. After the expiration of
that minimum two year period, each participant may withdraw under
the following conditions, subject to the right of arbitration as provided
in the Delaware Valley Workers' Compensation Trust Agreement:
A.
That an opinion is rendered by the trust-certified actuary that withdrawal
will not result in the number of participants falling below the minimum
required to assure the fiscal and actuarial soundness of the trust
itself;
B.
That the withdrawing participant is not then in default of its obligation
to pay premiums, contributions or assessments;
C.
That the withdrawing participant shall pay the full amount of a termination
contribution or any additional assessments as determined by the Board
of Trustees in accordance with the trust agreement and bylaws;
D.
That the Board of Trustees shall have received a certification from
the trust actuary that the withdrawal of the participant will not
impair the actuarial soundness of the trust, and, if any municipal
debt has been incurred by the participants to finance any portion
of the trust reserves, an opinion is obtained from bond counsel that
such withdrawal will not adversely affect the tax exempt status of
any interest paid and any debt incurred by the participants or any
legal entity created for the purpose of incurring such debt. As used
herein, the term "debt" includes any municipal bonds, certificates,
letters of credit or other instruments of municipal indebtedness.
The organizational structure of the trust shall consist of a
Board of Trustees, an Administrator, a claims administrator/loss control
consultant and various service agents appointed by the Board of Trustees
in accordance with the Delaware Valley Workers' Compensation
Trust Agreement and any bylaws adopted pursuant thereto.
As set forth in the Delaware Valley Workers' Compensation
Trust Agreement, the funds required for the creation and operation
of the trust shall be provided by the participating municipalities
through annual appropriations.
The Delaware Valley Workers' Compensation Trust is empowered
to enter into contracts for policies of group insurance and employee
benefits, including social security, for any of its employees.
The participation of the Borough of Malvern in the Delaware
Valley Workers' Compensation Trust will be effective by May 1,
2013, or thereafter, as approved by the trust Board.
All contributions and assessments paid by the Borough of Malvern
shall be made with funds appropriated by the Borough of Malvern for
that purpose.
As a condition of participating in the Delaware Valley Workers'
Compensation Trust, the Borough of Malvern agrees to:
A.
Pay all annual contributions and assessments as may be required by
the Board of Trustees;
B.
Appoint a representative to sit on the Board of Trustees and designate
a contact person for the purpose of communicating with the trust or
its representatives;
C.
Not withdraw from the trust for a period of two years following its
admission to the trust, subject to the terms and conditions of the
Delaware Valley Workers' Compensation Trust Agreement;
D.
Withdraw from the trust only upon satisfaction of the conditions
set forth in the Delaware Valley Workers' Compensation Trust
Agreement;
E.
Perform all covenants contained in the Delaware Valley Workers'
Compensation Trust Agreement and delegate to the Board of Trustees
the powers and authorities enumerated in that agreement;
F.
Comply with all the conditions set forth in the Delaware Valley Workers'
Compensation Trust Agreement governing the handling and payment of
claims, including the defense and settlement thereof;
G.
Appropriate the funds needed to pay all contributions and assessments
as may be required by the Board of Trustees in accordance with the
Delaware Valley Workers' Compensation Trust Agreement;
H.
Cooperate with the trust or its agents or employees and provide the
trust with all information it needs for the operation of the trust,
including any underwriting or claims data which it may be requested
by the Board of Trustees or its designee.
This article is being enacted pursuant to Title 53 of the Pennsylvania
Consolidated Statutes Annotated, § 46006, and the Pennsylvania
Intergovernmental Cooperation Law.[1]
[1]
Editor's Note: See 53 Pa.C.S.A. § 2301 et seq.
[Adopted 12-15-2015 by Ord. No. 2015-6]
The President of the Borough Council and Secretary of the Borough
are hereby authorized to adopt the restated trust agreement and any
other agreements necessary for the Borough's participation in
the Trust.
A.
The restated trust agreement is on file for inspection and review
at the Borough's offices at 1 E. First Avenue, Suite 3, Malvern,
PA 19355. The restated trust agreement may be subsequently modified
or amended in accordance with its terms, but in no event shall such
modifications or amendments divert any of the trust funds from the
purposes of the Trust. The Borough may withdraw from the Trust in
accordance with the restated trust agreement, including if the Borough
Council determines the modifications or amendments are not in the
best interests of the Borough.
The participation of the Borough in the Trust is authorized
for the purpose of obtaining high-quality, cost-effective medical,
prescription, dental, life, disability and/or other employee welfare
benefit insurance at a reasonable cost to the Borough and its employees.
As set forth in greater detail in the restated trust agreement
and as otherwise stated herein, the following conditions apply to
the participation of the Borough in the Trust:
A.
Each participating employer must meet the admission and eligibility
requirements set forth therein;
B.
Each participating employer agrees to pay all contributions when
due as provided in the restated trust agreement or as otherwise established
by the Board of Trustees; and
C.
Each participating employer complies with all other conditions of
the restated trust agreement.
The Borough agrees to participate in the Trust and may withdraw
for any reason and in accordance with the restated trust agreement,
provided that it has fulfilled all its financial obligations to the
Trust upon withdrawal.
The effective date of the Borough's agreement to and joinder
in the restated trust agreement and the participation of the Borough
in the Trust pursuant to the terms of the restated trust agreement
will be January 1, 2016.
Each participating employer delegates to the Board of Trustees
the powers enumerated in the restated trust agreement.
The organizational structure of the Trust shall consist of a
Board of Trustees. Under the restated trust agreement, the Board of
Trustees is authorized to, among other things, enter into contracts
with third parties to perform various services necessary for the administration
of the Trust.
The funds required for the operation of the Trust shall be provided
by the participating employers through scheduled appropriations as
determined by the Board of Trustees.
The Trust is empowered to enter into contracts for policies
of group insurance and employee benefits, including social security,
for employees of the Trust, if any.
As a condition of participating in the Trust, the Borough agrees
to comply with all of the terms and conditions in the restated trust
agreement.
The Secretary of the Borough shall provide a certified copy
of this article upon its enactment to the Board of Trustees of the
Trust.
The Borough Council of the Borough is hereby authorized to take
any and all such other actions as may be necessary or appropriate
to carry out the purposes of this article and comply with the requirements
of the restated trust agreement and any duly adopted amendments thereto.
The duration of the term of the Borough's participation
in the Trust and obligations under the restated trust agreement shall
continue until withdrawal from the Trust by the Borough in accordance
with the terms of the restated trust agreement.
The Borough Council hereby specifically finds and determines
as follows:
A.
The conditions of the intergovernmental cooperative agreement are
set forth in the restated trust agreement incorporated by reference
herein.
B.
The Borough shall participate in the Trust in accordance with the
restated trust agreement until it withdraws by giving notice to the
Board of Trustees at least 90 days in advance to become effective
on either June 30 or December 31 of a given Plan year; or in the case
of an initial year of participation in the Trust shall participate
for a minimum of one year.
C.
The purpose and objectives of the intergovernmental cooperative arrangement,
including powers and scope of authority delegated to the Board of
Trustees, are set forth in the incorporated restated trust agreement.
D.
The manner and extent of financing of the restated trust agreement
are that i) funds to implement the Borough's obligations under
the restated trust agreement shall come from the normal and usual
budgeted amounts for Borough employee compensation and employee benefits;
and ii) no borrowing is anticipated to be required.
E.
The Trust shall be managed by the Board of Trustees pursuant to the
terms of the restated trust agreement.
F.
All assets and property, real or personal, of the Trust shall be
titled to, acquired, managed, licensed or disposed of by the Trust,
and its Board of Trustees, in accordance with the terms of the restated
trust agreement.
G.
The Trust, in accordance with the restated trust agreement, shall
be empowered to enter into contracts for policies of group insurance
and employee welfare benefits to be offered to participating employers
for their eligible employee and dependents.
The provisions of this article are severable, and in the event
that any provision is held invalid, void, illegal, or unconstitutional
by any court, it is the intent of the Borough Council that such determination
by the court shall not affect or render void the remaining provisions
of this article. It is the declared intent of the Borough Council
that this article would have been enacted if any provision subsequently
declared to be void, invalid, illegal or unconstitutional had not
been included at the time of enactment.
Nothing in this article shall be interpreted to affect any rights
or liabilities of the Borough, or to affect any cause of action, existing
prior to the enactment of this article.
This article shall become effective immediately upon its enactment.
This article is being enacted pursuant to the provisions of
the Pennsylvania Intergovernmental Cooperation Law, Act of July 12,
1972, No. 180, as amended, 53 Pa.C.S.A. § 2301 et seq.
