[Adopted 11-1-2021 by Ord. No. 2021-05]
Pursuant to the provisions of the Acts of Assembly of the legislature in the Commonwealth of Pennsylvania and those of the Internal Revenue Code of the United States of America, and regulations pursuant thereto, the Borough of East Greenville, Montgomery County, Pennsylvania, hereby establishes an Employees' Deferred Compensation Plan pursuant to Section 457 of the Internal Revenue Code.
The Deferred Compensation Plan shall be under the direction and supervision of the Borough Council of the Borough of East Greenville and shall be applied under such regulations and direction as the Borough Council of the Borough of East Greenville, by ordinance or resolution, may prescribe for the benefit of the regular, full-time employees of the Borough of East Greenville.
The Borough of East Greenville hereby empowers the proper officers of the Borough to enter into an agreement for an Internal Revenue Code, Section 457 plan, with any bank, insurance company or brokerage firm, as the proper officers of the Borough shall deem appropriate and advisable, which plan shall be presented to and subject to the approval of Borough Council. The proper officers shall also have the right and duty to accept any arrangement for such plan that the Commonwealth of Pennsylvania may have available for employees of various municipalities within the commonwealth and which has been previously arranged for and authorized by the Commonwealth of Pennsylvania, subject to the approval of Borough Council.
The Borough of East Greenville hereby authorizes and delegates any or all duties as coordinator or administrator of said plan to the Borough Manager, or such other official of the borough as the Borough Council may from time to time designate. The Administrator shall have all reasonable powers and duties necessary to maintain the Section 457 Deferred Compensation Plan including those enumerated under any plan agreement.
The Borough of East Greenville, subject to authorization from any employee, shall deduct from that employee's salary as previously established, an amount pursuant to the requirements of Internal Revenue Code, section 457, deferred compensation provisions and deposit those with the Administrator or such designee as said Administrator shall so name.
Any amounts deposited and invested pursuant to this plan shall be held in the name of Borough of East Greenville for the benefit of the employee until such employee has terminated his employment or retires from the Borough. Until such time, the entire distribution of the funds so set aside, titled to the holdings invested hereunder, shall remain in the name of the Borough of East Greenville. In addition, the employee by his participation in said plan acknowledges the terms, conditions and regulations as set forth in the Section 457, Deferred Compensation Plan provisions, of the Internal Revenue Code of 1986, and any such deposit indicates acceptance of those terms and conditions.
The proper officers of the Borough of East Greenville are directed to establish a bank account, with said account to be known as the "Borough of East Greenville Section 457 Deferred Compensation Plan Account," and to deposit in said account all the moneys withheld and received and set forth by the Borough's employees pursuant to said section of the Internal Revenue Code.
The Borough Council of the Borough of East Greenville hereby authorizes and directs the Plan Administrator or his designee to perform all functions, to make and deliver all reports that may be necessary to gain an acceptance and approval of said plan by the appropriate regulating body. Any costs or expenses therewith shall be borne by the borough to the extent that those costs are not covered by the plan itself.
The Borough Council hereby incorporates by reference the terms and provisions of any plan selected by Borough Council and/or its designee (i.e. the plan administrator if authorized) and they are made a part hereof.