[Ord. 02-09-03, 9/9/2002, Art. I; as amended by Ord. 2006-05-01,
5/10/2006]
The following words and phrases, as used in this Subpart A,
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 § 1-704, Subsection 2, 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. In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 1-704, Subsection 8. 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 fund or its predecessor by way of payroll deduction or otherwise, plus interest credited at 6% per annum. Interest shall be credited in the form of a simple interest rate from the midpoint of the Plan year for which the contributions were made to the first day of the month preceding the date that a distribution of accumulated contributions under §§ 1-706, Subsection 4, and 1-707, Subsection 2, shall be paid or payment of benefits shall commence.
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 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 completed years and shall not include any period
of voluntary leave of absence without pay.
The eligible children are registered at an accredited institution
of higher learning and are carrying a minimum course load of seven
credit hours per semester.
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 Supervisors of New Britain Township.
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 Commonwealth of Pennsylvania.
The total remuneration of the employee, whether salary or
hourly wages, including overtime pay, holiday pay, longevity pay and
any other form of compensation paid by the employer for police services
rendered. Compensation shall be limited on an annual basis to the
amount specified for government plans pursuant to Code § 401(a)(17),
as adjusted under Code § 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.
The date on which the participant has completed 20 years
of aggregate service with the employer.
The first day of the month coincident with or next following
the date on which a participant who has attained early retirement
age ceases employment and chooses to commence receipt of retirement
benefits prior to the normal retirement date.
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 section, "full-time basis" shall mean that such employee works
a minimum of 35 hours per week.
New Britain Township, Bucks 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 involuntarily 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 State 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, if required,
that would otherwise have been paid to the Plan during such period
of qualified military service for benefits derived from participant
contributions. The amount of participant and/or employer 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 re-employment 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
re-employment.
Employment shall not mean, for the purpose of determining aggregate
service:
Any period of disability for a participant who was disabled
as a result of a non-service-related disability.
The average monthly salary earned by the participant and
paid by the employer during the final 36 consecutive months, regardless
of any period during which the participant is disabled, 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. 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 section. Therefore, for example, the final monthly
average salary for a participant who receives disability benefits
from this Plan or 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 this subsection) from the employer.
Salary used to determine final monthly average salary shall be limited
on an annual basis for the purpose of the Plan to the amount specified
in accordance with Code § 401(a)(17), as adjusted under
Code § 415(d).
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The first day of the month coincident with or next following
the date on which the participant retires from employment on which
the payment of retirement benefits pursuant to this Plan shall commence.
The last month of basic salary or basic rate of pay as applicable
under any then-current collective bargaining agreement before the
disability date.
The last month of basic salary before the date of death.
The minimum obligation of the Township 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.
The first day of the month coincident with or 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.
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 recipient on or before the last day of the specified notice or
election period.
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 New Britain Township Police Pension Plan.
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.
September 9, 2002, the date upon which this amendment and
restatement of the Plan becomes effective.
A condition of physical or mental impairment due to which a participant is unable to perform the usual and customary duties of employment, which condition is reasonably expected to continue to be permanent for the remainder of the participant's lifetime. For purposes of this section and § 1-705, a condition shall not be treated as total and permanent disability unless such condition is a direct result of and occurs in the line of employment. Therefore, a participant whose physical or mental impairment does not occur in the line of 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.
[Ord. 02-09-03, 9/9/2002, Art. II]
1.
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.
2.
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. Each participant hereunder shall be required to make contributions to the Plan, as provided in § 1-703, Subsection 1, hereof and shall execute and complete any enrollment or application forms as required by the Plan Administrator.
3.
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.
4.
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.
5.
Record Keeping. 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.
[Ord. 02-09-03, 9/9/2002, Art. III]
1.
Participant Contributions. Each participant shall as a requirement
of participation pay regular contributions to the Pension Fund in
an amount equal to 5% of the participant's compensation. Each participant
shall complete the necessary forms to authorize the payment of participant
contributions by way of payroll deduction.
2.
Reduction of Participant Contributions. Notwithstanding the preceding Subsection 1, if an 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 1 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.
3.
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.
4.
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.
5.
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.
6.
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 § 1-710.
[Ord. 02-09-03, 9/9/2002, Art. IV; as amended by Ord. 2006-05-01,
5/10/2006]
1.
Normal Retirement. Each participant shall be entitled to normal retirement
benefits after retirement on or after the participant has attained
normal retirement age.
2.
Normal Retirement Benefit. Each participant who shall become entitled to a benefit pursuant to Subsection 1 shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average salary as determined herein.
3.
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 1 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 continues employment after attainment of normal retirement age shall be calculated in accordance with Subsection 2 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.
4.
Early Retirement. A participant shall be entitled to an early retirement
benefit after retirement on or after attainment of early retirement
age.
5.
Early Retirement Benefit. Each participant who shall become entitled to a benefit pursuant to Subsection 4 must make application, in writing, to the Township Board of Supervisors to receive such a benefit. The early retirement benefit shall become effective as of the date the application is filed with the Board or the date designated on the application, whichever is later. The benefit shall be in an amount equal to the actuarial equivalent of the participant's accrued benefit. The actuarial equivalent of the participant's accrued benefit shall be determined by actuarially reducing the accrued benefit to reflect that it will commence on the effective date of the participant's early retirement rather than on the date which would have been the date on which the participant would attain normal retirement date if the participant continued in employment to such date. The actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission under the Act shall be the actuarial assumptions used to calculate the actuarial equivalent of the participant's accrued benefit.
6.
Service Increment. Notwithstanding anything contained herein to the contrary, each participant who shall retire upon completion of the 26th anniversary of aggregate service or thereafter, may be entitled to receive a monthly service increment benefit. Such service increment shall only be available to a participant who shall retire on a retirement date after attainment of normal retirement age and whose aggregate service for purposes of this subsection 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 an amount equal to an additional monthly benefit of 3% of the participant's monthly normal retirement benefit for each completed year of service in excess of 25 years up to a maximum increment benefit of $100 and shall be paid monthly in addition to the amount of normal retirement benefit calculated pursuant to Subsection 2.
7.
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. 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 nor 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 hereunder shall cease as of the date of death
of the participant.
8.
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 shall be governed by the following conditions and
definitions:
A.
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 in accordance with applicable regulations to determine
the limitation contained herein.
B.
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, 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
apply.
C.
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 in accordance with applicable regulations
to the amount determined commencing at age 65.
D.
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 § 1-705, Subsection 2, or a survivor benefit pursuant to § 1-706, Subsection 2 or 3, with fewer than 10 years of participation, the limitation expressed in this Subsection 8D 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.
E.
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.
F.
In the case of a survivor benefit under § 1-706, Subsection 2 or 3, or a disability retirement benefit under § 1-705, Subsection 2, the adjustment under Subsection 8B hereof shall not apply, and the applicable limitation shall be the limitation contained herein without regard to the age of the benefit recipient.
9.
Incorporation of Code § 415 by Reference. Notwithstanding anything contained in Subsection 8 to the contrary, the limitations, adjustments and other requirements prescribed in Subsection 8 shall at all times comply with the provisions of Code § 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference.
10.
Required Distributions.
A.
Notwithstanding any other provision of this Plan, the entire benefit
of any participant who becomes entitled to benefits prior to his death
shall be distributed either:
(1)
Not later than the required beginning date.
(2)
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).
|
If a participant who is entitled to benefits under this Plan dies prior to the date when his entire interest has been distributed to him after distribution of his benefits has begun in accordance with Subsection 10A(2) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection 10A(2) as of the date of his death.
|
B.
If a participant who is entitled to benefits under this Plan dies
before distribution of his 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.
C.
For purposes of this section, the following definitions and procedures
shall apply:
(1)
Required Beginning Date. 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.
(2)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this Plan according to its rules.
(3)
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).
(4)
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 redetermined but not more frequently than annually.
11.
Direct Rollovers.
A.
Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a distributee's election under this section, 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.
B.
This Subsection 11B shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this section, if a distribution in excess of $1,000 is made and the distributee does not make an election under Subsection 11A and does not elect to receive the distribution directly, the Plan Administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to § 1-708, Subsection 3I. The Plan Administrator shall notify the distributee, in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
C.
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(1)
(2)
For purposes of this section, the following definitions shall apply:
A payment by the Plan to the eligible retirement plan specified
by the distributee or the Plan Administrator, if the distributee does
not make an election.
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), are distributees 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 deferred compensation plan described
in Code Section 457(b), which is maintained by a state, political
subdivision of a state, and any agency or instrumentality of a state
or a 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 the 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 only be paid 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
which is not includible.
12.
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 unless
it is the subject of a domestic relations order, mandated by a court
of competent jurisdiction, that clearly provides for proper distribution
of a portion of the pension benefit payments to an alternate payee
(former spouse of the participant) and does not require any benefit
to be paid in excess of the available earned and accrued under the
Plan.
13.
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. Any participant who shall have terminated employment and elected to receive a deferred retirement benefit under § 1-707, Subsection 3, shall have such benefit determined based upon the provisions of the Plan in effect as of the date of such termination of employment and shall not have the benefit altered by the provisions of this amended and restated Plan.
14.
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.
15.
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.
16.
Non-Duplication 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.
[Ord. 02-09-03, 9/9/2002, Art. V; as amended by Ord. 2006-05-01,
5/10/2006]
1.
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.
2.
Disability Retirement Benefit. A participant who shall be entitled to a disability retirement benefit under Subsection 1 shall receive a monthly benefit in an amount equal to the participant's normal retirement benefit, which is determined under § 1-704, Subsection 2, as if the participant had attained normal retirement age on the day prior to the date that the participant terminated employment due to total and permanent disability; however, the disability benefit shall be no less than 50% of the member's salary at the time the disability was incurred, as defined pursuant to § 1-701, determined as of the disability date. Any member who receives benefits for the same injuries under Social Security Disability shall have the participant's disability benefits offset or reduced by the amount of such benefits.
3.
Payment of Disability Benefits. 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, cessation of total and permanent disability or attainment of normal retirement age (such a participant who attains normal retirement age shall thereafter receive a normal retirement benefit pursuant to § 1-704, Subsection 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, shall not be entitled to any distribution of accumulated contributions pursuant to § 1-707, Subsection 2, to the extent that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date, and shall not be entitled to any other benefits under the Plan on account of any aggregate service as of the disability date.
4.
Verification of Disability. The Plan Administrator shall in its sole
discretion determine whether a participant shall have incurred a total
and permanent disability. The Plan Administrator shall rely on the
report of a physician acceptable to the Plan Administrator. If the
Plan Administrator shall determine 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 retirements
shall cease.
5.
Cessation of Disability. A participant who is receiving payment of
disability retirement benefits under this Plan must notify the Plan
Administrator of any change which may cause a cessation of entitlement
to receipt of such benefits hereunder. If a participant fails to provide
immediate notice to the Plan Administrator of any such change in status
and continues to receive payment of benefits hereunder to which the
participant is not entitled, then the Plan may take whatever action
is necessary to recover any amount of improperly paid amounts, 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.
[Ord. 02-09-03, 9/9/2002, Art. VI; as amended by Ord. 2006-05-01,
5/10/2006; by Ord. 2007-02-01, 2/12/2007; and by Ord. 2010-09-01,
9/13/2010, § I]
1.
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.
2.
Survivor Benefit. If a participant shall die after commencement of retirement or disability benefit payments or after becoming eligible to receive retirement benefit payments under § 1-704, Subsection 1, and before retirement benefit payments commence, a survivor benefit shall be paid to the surviving spouse or dependent child(ren), if any, of the participant, pursuant to § 1-706, Subsection 4, in an amount equal to 50% of the benefit the participant was receiving or was eligible to receive as of the date of death.
3.
Killed in Service Survivor Benefit. A survivor benefit in accordance
with the Act of June 24, 1976, as amended, and particularly as amended
by Act 51 of 2009, shall be payable by the Commonwealth of Pennsylvania
in the event of the death of a participant who is killed in service
as defined by the Act. In the event such a benefit becomes payable,
the benefit shall be payable by the Commonwealth of Pennsylvania pursuant
to the aforementioned Act.
4.
Payment of Survivor Benefits. The survivor benefit commences as of
the first day of the month coincident with or immediately following
the date of death of the participant. The survivor benefit shall be
paid monthly to the surviving spouse of the participant, if any, until
the death of the surviving spouse. Upon the death of the surviving
spouse or if there is no surviving spouse, the survivor benefit shall
be paid monthly in equal shares to the surviving dependent child(ren)
of the deceased participant until attainment of age 18 or, if attending
college, under or attaining the age of 23. The shares payable to the
surviving dependent child(ren) shall be adjusted as each child ceases
to be eligible to receive a share of the benefit hereunder.
5.
Death of Participant Prior to Retirement. If a participant shall die before payment of a benefit has commenced and without eligibility for payment of a survivor benefit under Subsection 2 or 3, 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 hereunder, the amount of distribution of accumulated contributions shall be reduced by the amount of disability retirement benefits, which have been paid hereunder.
[Ord. 02-09-03, 9/9/2002, Art. VII]
1.
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 subsections of this section.
2.
Distribution of Accumulated Contributions. A participant whose employment
with the employer shall terminate for any reason other than death
prior to attainment of normal retirement age 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.
3.
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 receive a deferred retirement benefit in lieu of a distribution of accumulated contributions under Subsection 2. 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 § 1-704, Subsection 7, and not earlier than the date which would be the participant's normal retirement date or early retirement date under the Plan if the participant remained in employment until such date. A survivor benefit shall be payable to the beneficiary of the participant pursuant to § 1-706, Subsection 4.
[Ord. 02-09-03, 9/9/2002, Art. VIII; as amended by Ord. 2006-05-01,
5/10/2006]
1.
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 of Supervisors shall be the Plan Administrator.
2.
Police Pension Committee. The Board may appoint a Police Pension
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 more than five
members. Each member of the Committee shall serve in that capacity
until death, resignation, removal or otherwise. 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.
3.
Authority and Duties of the Plan Administrator. 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 to:
A.
Construe this Plan.
B.
Determine all questions affecting the eligibility of any employee
to participate herein.
C.
Compute the amount and source of any benefit payable hereunder to
any participant or beneficiary.
D.
Authorize any and all disbursements.
E.
Prescribe any procedure to be followed by any participant and/or
other person in filing any application or election.
F.
Prepare and distribute, in such manner as may be required by law
or as the Plan Administrator deems appropriate, information explaining
the Plan.
G.
Require from the employer or any participant such information as
shall be necessary for the proper administration of the Plan.
H.
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.
I.
Select an individual retirement plan provider (either the state or a federally regulated financial institution) and invest funds in connection with the rollover of mandatory distributions as described in § 1-704, Subsection 11B.
|
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 of
Supervisors.
|
4.
Police Pension 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.
5.
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.
6.
Hold Harmless. No member of the Board of Supervisors, the Plan Administrator,
the enrolled actuary or 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 he 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.
7.
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.
8.
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:
A.
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.
B.
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 the specific Plan provisions on which the denial is based,
an explanation of additional material or information, if any, necessary
to perfect such claim and a statement of why such material or information
is necessary and an explanation of the review procedure.
C.
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.
D.
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.
E.
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.
F.
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 8 has been exhausted.
[Ord. 02-09-03, 9/9/2002, Art. IX]
1.
Operation of the Pension Fund. The Board of Supervisors 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.
A.
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.
B.
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, re-investments
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.
2.
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:
A.
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.
B.
To invest and re-invest 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, or
as the same may be subsequently modified or amended.
C.
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.
D.
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.
E.
To exercise all conversion and subscription rights pertaining to
property held in the Fund.
F.
To exercise all voting rights with respect to property held in the
Fund and in connection therewith to grant proxies, discretionary or
otherwise.
G.
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.
H.
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.
I.
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.
J.
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.
K.
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.
L.
To compromise, contest, arbitrate, enforce or abandon claims and
demands with respect to the Plan.
M.
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.
N.
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.
O.
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.
P.
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.
3.
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.
4.
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.
5.
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.
6.
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.
[Ord. 02-09-03, 9/9/2002, Art X]
1.
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:
A.
That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which he is entitled
under this Plan with respect to contributions previously made.
2.
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.
3.
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.
4.
Distribution Upon Termination. 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 non-forfeitable hereunder. In the event of termination of
the Plan, the employer shall direct either 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 that the Plan Administrator immediately distribute
to each participant an amount equal to the vested accrued benefit
to the date. 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. 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.
5.
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.
6.
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.
[Ord. 02-09-03, 9/9/2002, Art. XI]
1.
Actuarial Valuations. The Plan's actuary shall perform an actuarial
valuation at least biennially unless the employer is applying or has
applied for supplemental state assistance pursuant to § 603
of the Act, whereupon actuarial valuation reports shall be made annually.
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. Such actuarial valuation shall be prepared and
certified by an approved actuary, as such term is defined in the Act.
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.
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.
2.
Duties of Chief Administrative Officer. Such actuarial reports shall
be prepared and filed under the supervision of the Chief Administrative
Officer. 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.
3.
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.
[Ord. 02-09-03, 9/9/2002, Art. XII]
1.
Employment Rights. No employee of the employer or anyone else 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, or shall 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.
2.
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 sections and subsections are
inserted only for convenience of reference and are not to be considered
in the construction of the Plan.
3.
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.
4.
Severability of Provisions. Should any provision of this Plan be
held to be 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.
5.
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.
6.
Pension Fund for Sole Benefits 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.
7.
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 stripes; 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.
8.
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.
9.
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.
10.
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 by Ord. 2006-06-01, 6/12/2006; and as amended by Ord.
2010-09-01, 9/13/2010, § II]
1.
DROP
DROP PARTICIPANT
DROP PARTICIPANT ACCOUNT
NORMAL RETIREMENT BENEFIT
Definitions. The following words and phrases, when used in this section,
shall have the meanings given to them in this section only, unless
the context clearly indicates otherwise:
A deferred retirement option plan established as an optional
form of benefit under the Plan and being operated by the Township
of New Britain.
The participant's pension trust fund ledger account.
2.
Eligibility and Participation.
A.
Eligibility of Employee to Participate in DROP. An employee who is
eligible for a normal retirement benefit under the Pension Plan or
will be eligible for a normal retirement benefit under the Pension
Plan prior to participation in the DROP is eligible to participate
in the DROP by filing a written application with the Retirement Plan
Administrator at least 30 days before the employee's effective date
of retirement.
B.
Participation in DROP. An eligible participant may elect to participate
in this DROP for a period of not less than 12 months, unless that
participant dies or becomes disabled, or more than 48 months. Upon
deciding to participate in a DROP, a participant must submit, on forms
provided by the Township, all of the following:
(1)
A binding and irrevocable letter of resignation from regular
employment with the Township of New Britain which discloses the participant's
intent to retire and specifies the participant's retirement date.
(2)
A DROP Election Form, prepared by the New Britain Township Manager
and/or the Plan Administrator, which is an irrevocable written election
to participate in the DROP, which must: specify the effective date
of DROP participation that shall be one day after the participant's
specified retirement date; specify the DROP termination date which
satisfies the limitation in this section; be signed by the participant
and the Chief Administrative Officer of the Plan; detail a DROP participant's
rights and obligations under the DROP; and include an agreement to
forgo:
(3)
The DROP participant shall be required to provide any other
information required by the Township.
C.
Effective Dates of DROP Participation. A retired participant's effective date of participation in a DROP shall begin on the day following the effective date of the participant's regular retirement, and a retired participant's participation in a DROP shall end on the last day of the participation period as specified pursuant to Subsection 2B(2) of this section.
D.
DROP Participation Termination. A DROP participant may change the DROP termination date to an earlier date, within the limitations of Subsection 2B of this section, but may not change it to a later date than elected at the time of initial DROP participation. No penalty shall be imposed for early termination of DROP participation. Upon either early or regular termination of DROP participation, the DROP participant shall be separated from employment by the Township of New Britain, and the Plan shall pay the balance in the DROP participant's DROP participant account to the terminating participant as provided in Subsection 3D of this section. The DROP participant shall be ineligible to re-enroll in the DROP thereafter, even if the former DROP participant is re-employed by the Township of New Britain with renewed active membership in the New Britain Township Police Pension Plan.
E.
DROP Participant Contributions. DROP participants shall neither be
required nor permitted to pay contributions into the Plan during the
DROP participation period.
3.
DROP Benefits.
A.
Fixed Retirement Benefits, Retirement Date and DROP Dates.
(1)
Effective with the date of retirement, which must be the day before the effective date of DROP participation, the participant's monthly normal retirement benefit, as calculated under § 1-704, Subsection 2, of the Plan, the participant's effective date of retirement and the participant's effective dates of beginning and terminating participation in the DROP shall be fixed. There shall be no further retirement benefit accruals, including but not limited to service increments, after the participant's effective date of retirement.
(2)
By participating in the DROP, the participating officer understands
and acknowledges that he or she must obtain his or her own professional
legal and/or tax advice to determine and to analyze the propriety
and impact of the participant's desired disposition of the DROP participant
account balance under state, federal and local tax laws and participation
in the DROP program itself. The participating officer further acknowledges
that the Township assumes no responsibility with respect to the administration
of the DROP program, including but limited to the performance or growth
of the participant's DROP participant account balance, and the participant
agrees to hold the Township harmless for any tax or other financial
consequences, including the performance of investments, funds, or
other financial vehicles, of the participant's participation in the
DROP program, including the liquidation of the participant's DROP
participant account at the conclusion of the participant's participation
in the DROP program.
B.
Normal Retirement Benefit Payments and Accruals. The retired participant's monthly retirement benefit, including any applicable service increment benefit pursuant to § 1-704, Subsection 6, and any interest earned thereon, shall be credited to the DROP participant's DROP participant account in the Pension Trust Fund. The account balance of an officer's DROP participant account shall generate the same rate of return and be credited with the same interest rate earned as the rate of return/performance of the overall Township Police Pension Fund; however, there is no guaranteed rate of return on the DROP participant account.
C.
DROP Participant Account. The monthly retirement benefits that would
have been payable had the police officer elected to cease employment
and receive a normal retirement benefit shall, upon the police officer
commencing participation in DROP, be paid into the separate account
established to receive the participant's monthly pension payments.
This account shall be designated the DROP participant account. The
sums deposited in an officer's DROP participant account shall be credited
with the same rate of return/performance as that of the overall Police
Pension Fund; however, there is no guaranteed rate of return on the
DROP participant account.
D.
Payment of DROP Benefits. On the effective date of a DROP participant's
termination of employment with the Township as a DROP participant,
participation in the DROP shall cease; and the Plan shall calculate
and pay to the participant the participant's total accumulated DROP
benefits in the DROP participant's DROP participant account, subject
to the following provisions:
(1)
The terminating DROP participant or, if the participant is deceased,
the participant's named beneficiary shall elect, on a form provided
by the Plan Administrator, to receive payment of the DROP benefits
in accordance with one of the following options:
(a)
The balance in the DROP participant's DROP participant account,
less withholding taxes, if any, remitted to the Internal Revenue Service,
shall be paid in cash, within 45 days of the receipt of the election
form, by the Plan from the account to the DROP participant or surviving
beneficiary.
(b)
The balance in the DROP participant's DROP participant account
shall be paid, within 45 days of the receipt of the election form,
by the Plan from the account directly to the custodian of an eligible
retirement plan as defined in Section 402(c)(8)(B) of the Internal
Revenue Code of 1986 or, in the case of an eligible rollover distribution
to the surviving spouse of a deceased participant, to an eligible
retirement plan which is an individual retirement account or an individual
retirement annuity as described in Section 402(c)(9) of the Internal
Revenue Code of 1986. If the participant selects the rollover option,
he or she must also submit the appropriate paperwork from the individual
retirement account (IRA) custodian within 20 days following termination
of employment with the Township as a DROP participant.
(c)
If the DROP participant or beneficiary fails to elect a method of payment within 60 days after the participant's termination date, the Plan shall pay the balance directly to the custodian of an eligible retirement plan as provided in Subsection 3D(1)(b) of this section.
(d)
The form of payment selected by the DROP participant or surviving
beneficiary shall comply with the minimum distribution requirements
of the Internal Revenue Code of 1986.
(2)
The terminating DROP participant shall commence receipt of the
monthly retirement benefit directly starting with the first day of
the month coincident with or next following termination of employment
with the Township.
E.
Pre-Retirement Benefits. Except for those benefits specified in Subsection 2B(2) of this section as forgone by the member, a DROP participant shall be eligible for any employee benefits provided to active employees before retirement by the Township of New Britain and those otherwise provided by law, including but not limited to benefits under the Act of June 2, 1915 (P.L. 736, No. 338), known as the "Workers' Compensation Act;" the Act of June 28, 1935 (P.L. 477, No. 193), referred to as the "Enforcement Officer Disability Benefits Law;" the Act of December 5, 1936 (2nd Sp. Sess., 1937, P.L. 2897, No. 1), known as the "Unemployment Compensation Law;" the Act of June 24, 1976 (P.L. 424, No. 101), referred to as the "Emergency and Law Enforcement Personnel Death Benefits Act;" and the Public Safety Officers' Benefit Act of 1976 (Public Law 94-430, 42 U.S.C. § 90 Stat. 1347).
4.
DROP Death Benefits.
A.
DROP Benefits for Designated Beneficiary. If a DROP participant dies, the participant's designated beneficiary shall be entitled to apply for and receive the benefits accrued in the DROP participant's DROP participant account as provided in Subsection 3D of this section.
B.
Final Credited Monthly Retirement Benefit. The monthly retirement
benefit accrued in the DROP participant's DROP participant account
during the month of a DROP participant's death shall be the final
monthly retirement benefit credited for DROP participation.
C.
DROP Eligibility Terminates upon Participant's Death. A DROP participant's
eligibility to participate in the DROP terminates upon the death of
the DROP participant. If a DROP participant dies on or after the effective
date of participation in the DROP, but before the initial monthly
retirement benefit of the participant accruable for the month has
accrued in the DROP participant's DROP participant account, the Township
of New Britain shall pay the monthly retirement benefit as though
the participant had not elected DROP participation and had died after
the employee's effective date of retirement but before receipt of
the retired participant's first normal retirement benefit.
D.
Drop Eligibility and Death of Participant. If a DROP participant
dies during the DROP period, the participant's designated beneficiary
shall have the same rights as the member to withdraw the account balance.
The first month following the participant's death, any surviving spouse
or dependent child of the participant shall receive the survivor benefit
provided under the Plan.
E.
DROP Participant Killed in Service. If a DROP participant dies during
the DROP period, then the DROP participant's designated beneficiary
shall be entitled to a lump-sum payment of the DROP participant account
balance, whether or not that designated beneficiary is also eligible
for other Killed in Service Survivor Benefits.
F.
Subsequent Employment and Renewal of Active Membership. After both the termination of the participant's employment as a DROP participant by the Township of New Britain and the expiration of the DROP participation period, a former DROP participant shall be subject to such re-employment limitations as other retired employees and shall be eligible for renewed membership as an active participant in the Plan, and the DROP participant shall be ineligible to re-enroll in the DROP pursuant to Subsection 2D of this section.
5.
DROP Disability Benefits.
A.
Disability During DROP. If a police officer becomes temporarily incapacitated
during his/her participation in the DROP, that police officer shall
continue to participate in the DROP program as if fully employed.
The police officer shall receive disability pay in the same amount
as disabled police officers that are not participating in the DROP.
In no event shall a police officer on temporary disability have the
ability to draw from his or her DROP participant account. However,
notwithstanding any other provision in this section, if a police officer
is disabled and has not returned to work as of his required resignation
date, or if the officer is honorably discharged prior to his or her
resignation date, then such resignation shall take precedence over
all other provisions herein, and said police officer shall be required
to resign. If a police officer becomes permanently disabled during
the DROP period, the officer shall be honorably discharged from employment
on the date that the police officer may obtain the contents of his/her
DROP participant account and, thereafter, commence receiving his/her
normal retirement benefit.
6.
Administrative Provisions.
A.
DROP Participant Account.
(1)
As the Township of New Britain establishes a DROP, it shall
establish a DROP participant account as a separate ledger account
in its Pension Trust Fund for each DROP participant. The account balance
shall be accounted for separately but need not be physically segregated
from other Pension Trust Fund assets. A separate DROP participant
account that generates the same rate of return and will be credited
with the same interest rate earned as the rate of return/performance
of the overall Township Police Pension Fund shall be established for
each DROP participant.
(2)
While a retired participant is employed as a DROP participant, the participant's monthly retirement benefit, and interest credited with the same interest rate earned as the rate of return/performance of the overall Township Police Pension Fund, shall be credited to the DROP participant account under Subsection 3B of this section. When a DROP participant terminates employment with the Township of New Britain as a DROP participant, the participant's total accumulated benefits shall be calculated, charged to the DROP participant account and paid out of the Pension Trust Fund under Subsection 3D of this section.
(3)
The balance in the DROP participant's account shall be excluded from actuarial valuation reports of the Plan prepared and filed under this Subpart. The DROP participant's account shall be held in trust for the exclusive benefit of DROP retired participants who are or were DROP participants and for the beneficiaries of these participants or an alternate payee pursuant to Subsection 3D of this section.
B.
Forfeiture of Benefits. Notwithstanding a police officer's participation
in the DROP Plan, a police officer who is convicted of or pleads guilty
to engaging in criminal misconduct which constitutes a "crime related
to public office or public employment," as that phrase is defined
in Pennsylvania's Pension Forfeiture Act, 43 P.S. §§ 1311
— 1314, and interpreted thereunder, shall forfeit his/her right
to receive a pension, including any amounts currently deposited in
the DROP participant account. In such case, the police officer shall
only be entitled to receive the contributions, if any, made by the
police officer to the fund, without interest.
C.
Effect of Provisions. A police officer's election to participate
in the DROP program shall in no way be construed as a limitation on
the Township's right to suspend or to terminate a police officer for
just cause or to grant the police officer an honorable discharge based
upon a physical or mental inability to perform his/her duties.
D.
Change in Law. In the event that the DROP provision is declared invalid
or illegal by a court of competent jurisdiction or through an administrative
determination of the Office of the Auditor General, the police officers
shall have the right to bargain in accordance with Act 111 over the
impact of the deletion of this benefit, but not the decision to delete
the benefit itself. It is expressly understood that any such bargaining
shall not involve bargaining over a replacement provision.
[Ord. 02-09-04, 9/9/2002, Art I]
The following words and phrases as used in this subpart 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 § 1-724, Subsection 2, which amount shall be based upon the participant's credited service determined as of such computation date and which shall represent the monthly benefit which would be payable in the normal form as of the participant's attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall credited service exceed 40 years. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation provided under § 1-724, Subsection 6. 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 a participant to this Plan
or its predecessor by way of payroll deduction or otherwise, plus
simple interest credited at the rate of 6% per annum, from the mid-point
of the Plan year when paid into the pension fund until the first day
of the month in which a distribution of accumulated contributions
occurs or the payment of retirement benefits commences.
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.
January 1 of a given plan year.
Any leave of absence granted, in writing, by the employer
for reasons including, but not limited to, accident, sickness, pregnancy
or temporary disability, education, training, jury duty or such other
reasons as may necessitate authorized leave from active employment.
The person or entity designated, in writing, by the participant
to receive any benefits which may be due 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 Supervisors of the Township of New Britain.
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 Commonwealth of Pennsylvania.
The total salary or wages actually paid to an employee by
the employer for active services rendered in employment as reported
on Internal Revenue Service Form W-2 and shall exclude extra or additional
forms of remuneration including, but not necessarily limited to, amounts
paid as allowance or reimbursement for expenses or payments made to
an employee welfare or benefit plan on behalf of the employee and
unused leave time earned and accrued. Compensation shall be limited
on an annual basis to the amount specified for government plans pursuant
to Code § 401(a)(17), as adjusted under Code § 415(d).
A participant's total years of service calculated from the participant's date of hire. Service of six or more calendar months shall be counted as a full year and service of less than six calendar months shall be disregarded. Credited service shall include each period of active employment and each period of time during which an employee is on an authorized leave of absence. Credited service shall not include any period of time during which an employee failed or refused to make required employee contributions pursuant to § 1-723, Subsection 1.
Any individual employed by the employer as a regular, full-time
employee who is entitled to receive a regular stated salary or wage,
excluding any pension, retainer or fee under contract. Any police
officer, fireman or individual covered under another retirement plan
or program sponsored by the employer shall be excluded as an employee
under this Plan.
Township of New Britain, Bucks County, Pennsylvania.
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 an employee. Employment shall exclude any period of time
in which services are performed as an independent contractor paid
on a contractual or fee basis.
Employment shall include 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
employee of the employer 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.
Employment shall also include 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, if required, during such period of qualified military service
for benefits derived from participant contributions. The amount of
participant and/or employer 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 re-employment 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 re-employment.
The average monthly salary earned by the participant and
paid by the employer during the final 24 consecutive months of active
rendering of service in employment. Only full months of active rendering
of service shall be included in the averaging period. If any single
sum or extraordinary payments are made to the participant which are
not directly attributable to active employment during the averaging
period including, but not limited to, payment for accumulated sick
leave or payment of a back pay damage award, those payments shall
be excluded for the purpose of determining the participant's final
monthly average compensation. Final monthly average compensation shall
be calculated by taking into account only those periods during which
an employee receives a salary, as that term is defined in this section.
Therefore, for example, the final monthly average compensation for
a participant who receives disability benefits from this Plan or who
is voluntarily or involuntarily serving in the United States armed
forces during the final 24 months of service shall be based on the
period during which the employee last received salary (as defined
in this subsection) from the employer. Salary used to determine final
monthly average compensation shall be limited on an annual basis to
the amount specified for government plans in accordance with Code
§ 401(a)(17), as adjusted under Code § 415(d).
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The first day of the month coincident with or next following
the date on which the participant retires from employment on which
the payment of retirement benefits pursuant to the Plan shall commence.
The minimum obligation of the municipality as determined
by the actuary pursuant to the provisions of the Act.
The date on which the participant attains age 60 and completes
at least 10 years of credited service.
The first day of the month coincident with or next following
the date on which the participant retires from employment after attaining
normal retirement age.
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.
The employee 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 New Britain Township Non-Uniformed Employees
Pension Plan.
The committee or 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 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.
September 9, 2002, the date upon which this amendment and
restatement of the Plan becomes effective.
[Ord. 02-09-04, 9/9/2002, Art. II]
1.
Eligibility Requirements. Each employee shall become a participant
on the first day of employment; provided, the participant completes
all necessary forms authorizing payroll deduction of employee contributions
and 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.
2.
Participation Requirements. Each participant hereunder shall be required to make contributions to the Plan, as provided in § 1-723, Subsection 1, hereof, and shall execute and complete any enrollment or application forms as required by the Plan Administrator authorizing payroll deduction of such contributions. No employee shall be eligible to participate hereunder until any and all such forms are completed and delivered to the Plan Administrator.
3.
Reentry. Each person who has previously been an active participant in the plan and who shall have ceased being an active participant for any reason shall be eligible to participate pursuant to Subsection 1 as of the date such eligibility requirements are met.
4.
Designation of Beneficiary. Any 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.
5.
Change in Status. A participant who remains in the service of the
employer but ceases to be an employee eligible for 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.
6.
Leave of Absence. During any leave of absence that is not an authorized
leave of absence, a participant shall be deemed an inactive participant
and shall not be given credit for years of service for vesting, nor
shall any benefits accrue hereunder. If the employee is not re-employed
by the expiration of the leave of absence, participation in the Plan
shall cease on the date on which the leave of absence commenced.
7.
Record Keeping. 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.
[Ord. 02-09-04, 9/9/2002, Art. III]
1.
Participant Contributions. As a condition of participation in the
Plan, each employee shall contribute to the Plan, by payroll deduction.
Each participant shall contribute an amount equal to 5% of the participant's
compensation. Each employee must have executed the appropriate documents
authorizing the employer to deduct the contributions from the pay
of the employee. Such contributions shall be required until such time
as the employer, consistent with any provisions of applicable law
and the actuarial needs of the Plan, shall change or eliminate the
requirement. A participant who is on an authorized leave of absence
shall have the obligation to contribute hereunder waived during the
period of such authorized leave of absence. As of January 1, 2001,
the employer shall "pick-up" the employee contributions in accord
with § 414(h)(2) of the Internal Revenue Code.
2.
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.
3.
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.
4.
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.
5.
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 § 1-730.
[Ord. 02-09-04, 9/9/2002, Art. IV]
1.
Normal Retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after the participant has
attained normal retirement age.
2.
Normal Retirement Benefit. A participant who retires upon attainment of normal retirement age shall be entitled to receive a monthly retirement benefit in an amount equal to 1 1/4% of the participant's final monthly average compensation multiplied by the participant's credited service paid in the normal form commencing on the first day of the month coincident with or next following the date of retirement. For purposes of Subsection 1, credited service shall not exceed 40 years.
3.
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 requirement of Subsection 1 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 continues employment after attainment of normal retirement age shall be calculated in accordance with Subsection 2 on the basis of the final monthly average salary as of such participant's actual retirement and years of service accumulated as of the normal retirement date. Such benefit payments shall commence on the participant's late retirement date.
4.
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 § 415(b)(1)(A) as adjusted
pursuant to Code § 415(d), assuming the form of benefit
shall be a straight life annuity (with no ancillary benefits). The
limitations described in this subsection shall be governed by the
following conditions and definitions:
A.
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.
B.
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 § 415(b)(2)(G) and such amount shall be
adjusted pursuant to Code § 415(d).
C.
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.
D.
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 § 1-725, Subsection 2, with fewer than 10 years of participation, the limitation expressed in this subsection 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.
E.
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 § 415 and regulations thereunder as applicable
to government plans in general and this Plan in particular.
5.
Incorporation of Code § 415 by Reference. Notwithstanding anything contained in Subsection 6 to the contrary, the limitations, adjustments and other requirements prescribed in Subsection 6 shall at all times comply with the provisions of Code § 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference.
6.
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. Any participant who shall have terminated employment and elected to receive a deferred retirement benefit under § 1-728, Subsection 2, shall have such benefit determined based upon the provisions of the plan in effect as of the date of such termination of employment and shall not have the benefit altered by the provisions of this amended and restated Plan.
7.
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.
8.
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.
[Ord. 02-09-04, 9/9/2002, Art. V]
1.
Normal Form of Benefit Payment. The normal form for payment of retirement
benefits shall be a monthly annuity for the life of the participant.
2.
Optional Form. The automatic form of payment of retirement benefits shall be the normal form specified in Subsection 1, unless a participant elects to receive benefits in another form as provided herein. Each optional form of benefit payment shall be the actuarial equivalent of the normal form. A participant who retires hereunder may elect, by giving written notice to the employer at least 30 days prior to the date retirement benefit payments shall commence, to receive payment in one of the optional forms of payment hereafter set forth:
A.
Joint and Survivor Annuity. In lieu of receiving a retirement benefit
paid in the normal form, a participant may elect to receive the benefit
in the form of a joint and survivor annuity which shall provide monthly
benefit payments to the participant for life and after the death of
the participant shall occur monthly payments shall be made to the
beneficiary designated by the participant in an amount equal to 50%,
62% or 100% of the monthly amount paid to the participant, whichever
the participant shall have elected. If the beneficiary shall die before
the participant but after retirement benefit payments have commenced
hereunder, there shall be no additional payments made after the death
of the participant shall occur.
B.
Life Annuity with Period Certain. In lieu of receiving a retirement
benefit paid in the normal form, a participant may elect to receive
the benefit in the form of a life annuity with period certain which
shall provide monthly benefit payments to the participant for life,
but if the death of the participant shall occur before the period
certain payments have been paid, then the monthly payments shall continue
to the beneficiary designated by the participant until the total number
of payments made to the participant and beneficiary combined shall
be equal to the period certain. The participant may elect a period
certain of 120 months or 180 months. If the participant shall die
after receiving monthly payments equal to or greater than the period
certain there shall be no additional payments made after the death
of the participant shall occur.
3.
Commencement of Benefits. A participant may elect to commence receiving
distribution of retirement benefit payments as of the early, normal
or late retirement date. A participant must complete an application
for benefits 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.
4.
Required Distributions.
A.
Notwithstanding any other provision of this Plan, the entire benefit
of any participant who become entitled to benefits prior to death
shall be distributed either:
(1)
Not later than the required beginning date, or
(2)
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).
|
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 4A(2) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection 4A(2) as of the date of death.
|
B.
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 that 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.
C.
For purposes of this section, the following definitions and procedures
shall apply:
(1)
"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.
(2)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this Plan according to its rules.
(3)
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).
(4)
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 redetermined but not more frequently than annually.
5.
Direct Rollovers.
A.
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.
B.
For purposes of this subsection, the following definitions shall
apply:
(1)
"Eligible rollover distribution" is 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 § 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 subsection
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 § 408(a) or (b) of the Code, or
to a qualified defined contribution plan described in §§ 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 in includible in gross income and the portion
of such distribution which is not so includible.
|
(2)
"Eligible retirement date" is a qualified trust described in
Code § 401(a), an individual retirement account described
in Code § 408(a), an individual retirement annuity described
in Code § 408(b), an annuity plan described in Code § 403(a),
an annuity contract described in Code § 403(b), an eligible
plan under § 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.
(3)
"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
§ 414(p), are distributee's with regard to the interest
of the spouse or former spouse.
(4)
"Direct rollover" is a payment by the Plan to the eligible retirement
plan specified by the distributee.
6.
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.
7.
Non-Duplication 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.
[Ord. 02-09-04, 9/9/2002, Art. VI]
1.
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 subsections of this section.
2.
Distribution of Accumulated Contributions. A participant whose employment
with the employer ceased for any reason other than death or disability
prior to attainment of an early or normal retirement age shall only
be entitled to receive a distribution of accumulated contributions.
Upon receipt of such accumulated contributions, said participant and
his or her beneficiary shall not be entitled to any further payments
from the Plan.
3.
Deferred Retirement Benefit. A participant whose employment shall terminate for any reason other than due to death or total and permanent disability prior to attainment of early or normal retirement age shall be entitled to receive a deferred vested benefit in lieu of a distribution of accumulated contributions under Subsection 2 The election hereunder shall be made within 90 days of the date on which the participant's employment shall cease or shall be forever waived and a distribution pursuant to Subsection 2 shall occur. Such a deferred vested benefit shall be in an amount equal to the participant's normal retirement benefit as of the date employment terminates and multiplied by the applicable vested percentage, a schedule of which is set forth below:
|
Participant's Years of Service
|
Vested Percentage
| |
|---|---|---|
|
Less than 4 years
|
0%
| |
|
4, but less than 5 years
|
40%
| |
|
5, but less than 6 years
|
50%
| |
|
6, but less than 7 years
|
60%
| |
|
7, but less than 8 years
|
70%
| |
|
8, but less than 9 years
|
80%
| |
|
9, but less than 10 years
|
90%
| |
|
10 or more years
|
100%
|
|
Such a deferred retirement benefit shall commence as of the
first day of the month coincident with or next following the date
on which the participant's normal retirement age would be attained
if the participant continued in employment until such date, when not
vested in any portion of the accrued benefit derived from employer
contributions shall cease to be a participant hereunder and shall
not be entitled to any benefits under the Plan derived from employer
contributions.
|
4.
Forfeitures. A participant who terminates employment with the employer
at a time a terminated participant who shall have made employee contributions
to the Plan shall have the accumulated contributions distributed to
the beneficiary of the participant, if the participant dies prior
to receipt of the accumulated contributions.
[Ord. 02-09-04, 9/9/2002, Art. VII]
1.
Death of Participant. Upon the occurrence of the death of a participant,
there shall be benefits payable in accordance with the following subsections
of this section.
2.
Death Prior to Retirement Eligibility. A benefit shall be payable
to the beneficiary of a participant who shall die prior to becoming
eligible to retire hereunder or who shall die before commencing receipt
of retirement benefit payments and without eligibility for a survivor
benefit hereunder, in a single payment in an amount equal to the accumulated
contributions as of the date of death of the participant.
3.
Death of Participant After Retirement. In the event that a participant
shall die after the receipt of any benefit payments under the plan,
the beneficiary shall be entitled to a benefit only to the extent
and in the manner consistent with the provisions of the form of payment
of benefits selected by the participant pursuant to the provisions
of this Plan.
4.
Survivor Benefit. If a participant shall die after completion of
at least 10 years of credited service and prior to commencement of
retirement benefit payments hereunder, a survivor benefit shall be
paid to the surviving spouse, if any, of the participant in an amount
equal to 50% of the participant's accrued benefit as of the date of
death. The survivor benefit shall be paid monthly to the surviving
spouse until the date of death of the surviving spouse. Upon the occurrence
of the death of the surviving spouse, there shall be no other benefits
due or payable under this Plan.
[Ord. 02-09-04, 9/9/2002, Art. VIII]
1.
Plan Administrator. The Plan Administrator may 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; provided, that the Board chooses to delegate said power and
authority. 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 Committee shall be the Plan Administrator.
2.
Pension Plan Committee. If the Board shall appoint a Pension Plan
Committee, it shall consist of five Board members, one of whom shall
be an employee covered by the Plan. Each member of the Pension Plan
Committee shall serve in that capacity until the earliest of resignation,
death, removal or otherwise. 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.
3.
Authority and Duties of the Plan Administrator. 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.
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.
|
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.
|
4.
Non-Uniform 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.
5.
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 administration 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.
6.
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 render
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 he 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.
7.
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.
8.
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.
A.
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.
B.
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 the specific plan provisions on which the denial is based,
an explanation of additional material or information, if any, necessary
to perfect such claim and a statement of why such material or information
is necessary and an explanation of the review procedure.
C.
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.
D.
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.
E.
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.
F.
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 Subsection 8 of the Plan has been exhausted.
[Ord. 02-09-04, 9/9/2002, Art. IX]
1.
Operation of the Pension Fund. 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. 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. 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, re-investments 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 is sole discretion.
2.
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:
A.
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.
B.
To invest and re-invest 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 or as
the same may be subsequently modified or amended.
C.
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.
D.
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.
E.
To exercise all conversion and subscription rights pertaining to
property held in the Fund.
F.
To exercise all voting rights with respect to property held in the
fund and in connection therewith to grant proxies, discretionary or
otherwise.
G.
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 saving department of its own commercial bank.
H.
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.
I.
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.
J.
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.
K.
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.
L.
To compromise, contest, arbitrate, enforce or abandon claims and
demands with respect to the Plan.
M.
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.
N.
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.
O.
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.
P.
To retain the services of one or more person 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.
3.
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.
4.
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.
5.
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.
6.
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.
[Ord. 02-09-04, 9/9/2002, Art. X]
1.
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:
A.
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 contribution previously made.
2.
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.
3.
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.
4.
Distribution Upon Termination. 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 non-forfeitable hereunder. In the event of termination of
the Plan, the employer shall direct either 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 that the Plan Administrator immediately distribute
to each participant an amount equal to the vested accrued benefit
to the date. If there are sufficient 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. 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 affects such termination.
5.
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.
6.
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.
[Ord. 02-09-04, 9/9/2002, Art. XI]
1.
Actuarial Valuations. The Plan's actuary shall perform an actuarial
valuation at least biennially unless the employer is applying or has
applied for supplemental state assistance pursuant to § 603
of the Act, whereupon actuarial valuation reports shall be made annually.
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. Such actuarial valuation shall be prepared and
certified by an approved actuary, as such term is defined in the Act.
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.
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
by item and where necessary, hour by hour.
2.
Duties of Chief Administrative Officer. Such actuarial reports shall
be prepared and filed under the supervision of the Chief Administrative
Officer. 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.
3.
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 approve
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.
[Ord. 02-09-04, 9/9/2002, Art. XII]
1.
Employment Rights. No employee of the employer nor anyone else 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 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.
2.
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 sections and subsections are
inserted only for convenience of reference and are not to be considered
in the construction of the Plan.
3.
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.
4.
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.
5.
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.
6.
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.
7.
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 stripes; 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.
8.
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.
9.
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.
10.
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.
