[1]
Editor's Note: This ordinance also provided for an effective
date of 1-1-2006.
The following words and phrases as used in this plan shall have
the meaning set forth in this article, unless a different meaning
is otherwise clearly required by the context:
As of any given date, the benefit determined under § 93-4B, calculated on the basis of final monthly average wage 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 participant's projected aggregate service, provided that the participant is assumed to continue in active employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one. In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 93-6. 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 accrued benefit shall include any service increment determined pursuant to § 93-4D attributable to the participant's aggregate service as of the date of determination.
The total amount contributed by any participant to this fund or its predecessor by way of payroll deduction or otherwise, plus interest credited at 5.5% per annum. Interest shall be credited in the form of a compound interest rate compounded quarterly from the date on which the contributions were made to the date that a distribution of accumulated contributions under §§ 93-11D and 93-12B 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 UP-1984 Mortality Table and 7% interest unless otherwise
specifically provided herein.
The person, partnership, association or corporation which
at any given time is serving as actuary, provided that such actuary
must be an "approved actuary," as defined in the Act.
The total period or periods of the participant's employment
with the employer whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment,
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"
in this section. Aggregate service shall be calculated in whole years
and completed months.
The eligible dependent 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 person designated by the Municipality who has the primary
responsibility for the execution of the administrative affairs for
the plan.
The Internal Revenue Code of 1986, as amended.
The Police Pension Committee, as determined pursuant to § 93-14.
The Commonwealth of Pennsylvania.
The total remuneration of the employee, whether salary or
hourly wages, including but not limited to overtime pay, holiday pay,
longevity pay, shift differential, premium pay, any single sum or
lump-sum payments, payments received under the Pennsylvania Heart
and Lung Act and any other form of remuneration paid by the employer
for police services rendered.
For participants hired after January 24, 2001, compensation
shall not include any single sum or end of career one-time lump-sum
payments, except to the extent that said payments are for benefits
which were earned during the calculation period, pursuant to the Pennsylvania
Auditor General Bulletin No. 2001-01, as amended.
Compensation shall be limited on an annual basis for purposes
of the plan to the amount specified for government plans pursuant
to Code Section 401(a)(17), as adjusted under Code Section 415(d).
The Council of the Municipality of Monroeville.
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 at least
20 years of aggregate service.
Any individual employed by the employer on a regular, full-time
basis as a member of the employer's police force.
The Municipality of Monroeville, Allegheny County, Pennsylvania.
For the purpose of determining aggregate service shall mean:
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 granted an authorized
leave of absence, provided that the participant shall pay participant
contributions to the plan in an amount equal to the amount which would
have been paid if the participant continued in active employment,
unless Council shall waive the payment of such participant contributions.
Such an authorized leave of absence may be granted for a period of
time for which an employee is paid 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), either directly
by the employer or through a program to which the employer has made
contributions on behalf of the employee; or a 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; or for any other
reason acceptable to the Council;
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that the
participant has been employed as a regular, full-time member of the
employer's police force for a period of at least six months immediately
prior to the period of military service; and the participant returns
to employment within six months following discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer;
Any period of voluntary or involuntary military service with
the armed forces of the United States of America not to exceed a total
of 24 months which occurred prior to the date on which a participant
first became employed as an employee of the employer, provided that
the participant shall pay into the plan the required sum as determined
herein for the purchase of such service credit under the plan. The
participant may make application for such purchase of military service
credit at any time prior to retirement or other termination of employment
as an employee of the employer. The participant shall pay an amount
as determined by the actuary based upon the cost to provide the service
credit requested under applicable law;
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 required participant contributions that would otherwise have been paid to the plan during such period of qualified military service to pay 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 reemployment and ends on the earlier of the date that ends the period that has a duration of three times the period of qualified military service or the date that is five years after the date of reemployment; and
Any period of voluntary or involuntary military service with
the armed forces of the United States of America not to exceed a total
of two years which occurred prior to the date on which a participant
first became employed as an employee of the employer, provided that
the participant shall purchase such credit and that such participant
is not entitled to receive, eligible to receive or is receiving retirement
benefits for such military service under a retirement system administered
and wholly or partially paid for by any other governmental agency
except military retirement pay earned by a combination of active and
nonactive duty with a reserve or national guard component of the armed
forces which is payable upon the attainment of specified age and period
of service under 10 U.S.C. Chapter 67 (relating to retired pay for
nonregular service). The purchase price for such service shall be
computed by multiplying the average normal cost rate for the plan
as certified by the Public Employee Retirement Commission and not
to exceed 10% times the participant's average annual rate of compensation
during the first three years of employment and multiplying the result
times the number of years and fractions thereof being purchased. Interest
shall be paid at a rate of 4.75% compounded annually from the first
date of employment to the date of payment.
Employment shall not mean for purposes of determining aggregate
service: Any period of disability for a participant who was disabled
as a result of a nonservice related disability.
For participants hired prior to January 24, 2001, the average
monthly wages earned by the participant and paid by the employer during
the highest 36 months of the last 60 months of active employment.
(The applicable 36 months do not need to be consecutive months of
active employment.) Wage shall include the employee's compensation
to which the employee is entitled for the rendering of services in
employment, including but not limited to overtime, longevity, shift
differential, holiday pay, premium pay, any single sum or lump-sum
payments and payments received under the Pennsylvania Heart and Lung
Act.[1]
For participants hired after January 24, 2001, "final monthly
average wage" shall mean the average monthly wages earned by the participant
and paid by the employer during the final 36 months immediately preceding
termination of employment as an employee of the employer. Wage shall
include the employee's compensation to which the employee is entitled
for the rendering of services in employment, including but not limited
to overtime, longevity, shift differential, holiday pay and premium
pay. However, wage shall exclude any single sum or end of career one-time
lump sum payments, except to the extent that said payments are for
benefits which were earned during the calculation period, pursuant
to the Pennsylvania Auditor General Bulletin No. 2001-01, as amended.
Final monthly average wage shall be calculated by taking into
account only those periods during which an employee receives wages,
as that term is defined in this definition. Compensation used to determine
final monthly average wage shall be limited on an annual basis for
the purpose of the plan 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.[2]
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 minimum obligation of the Municipality as determined
by the actuary pursuant to the provisions of the Act.
The date on which the participant has completed 25 years
of aggregate service with the employer and has attained age 55.
A written document prepared in the form specified by the
Plan Administrator and delivered as follows: 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; or, 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.
An employee who has met the eligibility requirements to participate in the plan as provided in § 93-2A and who has not for any reason ceased to be a participant hereunder.
The Police Pension Fund administered under the terms of this
plan and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time and
designated as the Municipality of Monroeville 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 Council.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
January 1, 2006, the date upon which this amendment and restatement
of the plan becomes effective.
The first day of the month coincident with or next following
the date on which the participant retires from employment or the first
day of any month thereafter on which the payment of retirement benefits
pursuant to this plan shall commence.
The amount calculated pursuant to § 93-4D on behalf of a participant for each completed year of service in excess of 25 years, not to exceed $100.
A condition of physical or mental impairment due to which
a participant is unable to perform the usual and customary duties
of a Monroeville police officer, which condition is reasonably expected
to continue to be permanent for the remainder of the participant's
lifetime. Whether a participant is totally and permanently disabled
shall be determined by a medical examiner appointed by or acceptable
to the Municipality.
A.
Eligibility requirements. Each employee who is employed as a regular,
full-time permanent member of the Police Department of the employer
shall participate herein as of the date on which such employee's employment
first commences or recommences, provided all prerequisites to participation
under this plan shall have been fulfilled, including but not limited
to completion of all forms required by the Plan Administrator.
B.
Notification of Plan Administrator. The Council shall furnish the
Plan Administrator with written notification of the appointment of
any new full-time permanent employee who is eligible for participation
hereunder.
C.
Designation of beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the Plan Administrator which designates a beneficiary
at the time participation commences. The participant's election of
any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time, provided the participant provides
the written notice of the changed designation to the Plan Administrator
in the manner prescribed by the Plan Administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
Plan Administrator shall be null and void and have no effect under
the terms of this plan.
D.
Change in status. A participant who remains in the service of the
employer but ceases to be an employee eligible for participation hereunder,
or ceases or fails to make any contributions which are required as
a condition of participation hereunder, shall have no further benefit
accruals occur until the individual again qualifies as a participant
hereunder eligible to resume such accrual of benefits.
E.
Recordkeeping. The employer shall furnish the Plan Administrator
with such information as will aid the Plan Administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this plan.
A.
Participant contributions. Each participant shall, as a requirement
of participation pay regular contributions to the pension fund in
an amount equal to 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.
B.
Reduction of participant contributions. Notwithstanding the preceding Subsection A, 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 A, or may be eliminated, and that if such payments are reduced or eliminated, contributions by the employer will not be required to keep the pension fund actuarially sound, the employer may, by ordinance, reduce or eliminate payments into the pension fund by participants on an annual basis.
C.
Employer contributions. The Chief Administrative Officer, 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.
D.
State aid. General Municipal pension system state aid, or any other
amount of state aid received by the employer from the commonwealth
in accordance with the Act, may be deposited into the pension fund
governed by this plan and shall be used to reduce the amount of the
minimum Municipal obligation of the employer.
E.
Gifts. The Council 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 Council or its delegate, the Plan Administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.
F.
Employer reversion. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, including payment of any reasonable plan expenses. Notwithstanding the foregoing, any contributions made by the employer may be returned to the employer if the contribution was made due to a mistake and the contribution is returned within one year of the date on which the discovery of the mistaken payment of the contribution was made or reasonably should have been made or the plan is terminated, as provided in § 93-24.
A.
Normal retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after the participant has
attained normal retirement age.
B.
Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection A shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average wage as determined herein.
C.
Late retirement. A participant may continue to work beyond the attainment of normal retirement age subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of Subsection A continues to work beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and retirement begins. The retirement benefit of a participant who retires after attainment of normal retirement age shall be calculated in accordance with Subsection B on the basis of the final monthly average wage as of such participant's actual retirement date.
D.
Service increment. A participant who shall retire after completion of at least 26 years of aggregate service may be eligible to receive a service increment in addition to the normal retirement benefit under Subsection B. The monthly amount of the service increment shall be equal to $50 for each year of completed service in excess of 25 years of service, not to exceed $100. The calculation of such service increment shall be determined and only include periods of time when the participant actively renders service in employment.
E.
Early retirement. Each participant shall be entitled to an early
retirement benefit after retirement on or after the participant has
attained early retirement age and prior to attainment of normal retirement
age.
F.
Early retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection E and who shall make written application to commence such early retirement benefit shall receive a benefit paid monthly in an amount equal to the amount that is the actuarial equivalent of the participant's accrued benefit. The actuarial equivalent calculation shall be completed using the applicable factors contained in the last actuarial valuation report filed with the Public Employee Retirement Commission under the Act and for the purpose of adjusting the amount of benefit to recognize the early commencement of benefit payments prior to attainment of normal retirement age.
G.
Window benefit. Upon completion of an actuarial study annually, the
employer may establish an election period known as an open window
during which any employee who shall have attained at least 50 years
of age and completed at least 25 years of aggregate service shall
have the option to retire and commence receipt of a normal retirement
benefit without any adjustment for early commencement.
H.
Normal form. The normal form for payment of retirement benefits shall
be a monthly annuity payable for the life of the participant.
I.
Payment of benefits. Retirement benefit payments shall be prorated
from the date of retirement to the first day of the following month,
payable in the normal form as of the first day of the month coincident
with or next following the participant's 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 nor any other payments
shall be due or payable on or before the first day of the month coincident
with or next following the date that is 30 days after the date the
Plan Administrator receives the application for benefits.
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 § 93-12C 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.
A.
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 § 93-6 shall be governed by the following conditions and definitions:
(1)
Benefits paid or payable in a form other than a straight life annuity
(with no ancillary benefits) or where the employee contributes to
the plan or makes rollover contributions shall be adjusted on an actuarially
equivalent basis in accordance with applicable regulations to determine
the limitation contained herein;
(2)
In the case of a benefit which commences prior to the attainment
of age 62 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis to the amount determined pursuant
to this section commencing at age 62; however, 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 department is taken into account in determining
the amount of benefit), the limitation contained herein shall not
apply.
(3)
In the case of a benefit which commences after attainment of age
65 by the participant, the limitation herein shall be adjusted on
an actuarially equivalent basis in accordance with applicable regulations
to the amount determined herein commencing at age 65;
(4)
Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this section, provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability retirement benefit pursuant to § 93-10B or a survivor benefit pursuant to §§ 93-11B or C, with fewer than 10 years of participation, the limitation expressed in this Subsection A(4) shall be reduced by 1/10 for each year of participation less than 10, but in no event shall this limitation be less than $1,000;
(5)
The limitations expressed herein shall be based upon plan years for
calculation purposes, shall be applied to all defined benefit plans
maintained by the employer as one defined benefit plan and to all
defined contribution plans maintained by the employer as one defined
contribution plan, and shall be applied and interpreted consistent
with Code Section 415 and regulations thereunder as applicable to
government plans in general and this plan in particular; and
B.
Notwithstanding anything contained in this section to the contrary,
the limitations, adjustments, and other requirements prescribed in
this section shall at all times comply with the provisions of Code
Section 415 and the regulations thereunder (as such apply to governmental
plans), the terms of which are specifically incorporated herein by
reference.
A.
Notwithstanding any other provision of this plan, the entire benefit
of any participant who becomes entitled to benefits prior to death
shall be distributed either:
(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 benefits has begun in accordance with Subsection A(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 A(2) as of the date of death.
B.
If a participant who is entitled to benefits under this plan dies
before distribution of benefits 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" 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.
A.
This Subsection A 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 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 B 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 § 93-8A 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 § 93-15A(9). 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.
For purposes of this section, the following definitions shall apply:
(1)
ELIGIBLE ROLLOVER DISTRIBUTION — Any distribution of all or
any portion of the balance to the credit of the distributee, except
that an eligible rollover distribution does not include: any distribution
that is one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy)
of the distributee or the joint lives (or joint life expectancies)
of the distributee and the distributee's designated beneficiary, or
for a specified period of 10 years or more; any distribution to the
extent such distribution is required under Code Section 401(a)(9);
and the portion of any distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities). For purposes of
the direct rollover provisions in this section of the plan, a portion
of a distribution shall not fail to be an eligible rollover distribution
merely because the portion consists of after-tax employee contributions
that are not includible in gross income. However, such portion may
be paid only to an individual retirement account or annuity described
in Section 408(a) or (b) of the Code, or to a qualified defined contribution
plan described in Section 401(a) or 403(a) of the Code that agrees
to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible
in gross income and the portion of such distribution which is not
so includible.
(2)
ELIGIBLE RETIREMENT PLAN — A qualified trust described in Code
Section 401(a), an individual retirement account described in Code
Section 408(a), an individual retirement annuity described in Code
Section 408(b), an annuity plan described in Code Section 403(a),
an annuity contract described in Code Section 403(b), an eligible
plan under Section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality
of a state, or political subdivision of a state and which agrees to
separately account for amounts transferred into such plan from this
plan.
(3)
DISTRIBUTEE — 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.
(4)
DIRECT ROLLOVER — 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.
A.
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
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 funds earned and accrued under
the plan.
B.
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.
C.
Nonduplication of benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under the plan
and who shall resume employment shall have benefit payments suspended
until the first day of the month coincident with or next following
the date such employment shall cease. Upon resumption of benefit payments,
such participant shall receive the greater of the amount of the suspended
benefit or the amount of benefit based upon final monthly average
wage and aggregate service as of the date that such period of resumed
employment shall cease.
D.
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 Council 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.
A.
Disability retirement. A participant who shall incur a total and
permanent disability shall be entitled to a disability retirement
benefit as of the disability date.
B.
Disability retirement benefit. A participant who shall be entitled to a disability retirement benefit under Subsection A, whose total and permanent disability is the direct result of injuries incurred in the line of duty of employment shall be entitled to an employment-related disability benefit, which shall be a monthly benefit in an amount equal to 50% of the participant's final monthly average wage, reduced dollar for dollar by the monthly amount of any short-term disability payments, workmen's compensation benefits, federal social security disability payments or any other benefits provided by the employer, to the extent and only to the extent that a plan participant shall not receive more than 100% of the participant's annual wage at the time participant is declared disabled. However, a participant's disability retirement benefit shall be no less than 50% of the member's salary at the time the disability was incurred, as defined in § 93-1, determined as of the disability date, provided that 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.
C.
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 or cessation of total and permanent disability. A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, and shall not be entitled to any distribution of accumulated contributions pursuant to § 93-12B to the extent that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date.
D.
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
retirement benefits shall cease. A participant, upon attainment of
normal retirement age, shall thereafter not be required to undergo
any medical examinations directed by the Plan Administrator.
E.
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.
A.
Death benefit. Except as hereinafter set forth, no benefit shall
be payable hereunder upon or by reason of the death of any participant
unless such benefit is payable under the form of benefit payment chosen
by the participant.
B.
Survivor benefit.
(1)
If a participant shall die after commencement of retirement or disability benefit payments or after the participant is eligible to retire under § 93-4A and before retirement benefit payments commence, a survivor benefit shall be paid to the surviving spouse of the participant, or, if no spouse survives or the spouse survives and subsequently dies, then the child or children of the participant under the age of 18, or if attending college, under or attaining the age of 23 in an amount equal to 50% of the participant's retirement benefit which the participant was receiving or would have been receiving had the participant been retired at the time of death.
(2)
The survivor benefit shall be paid to the surviving spouse until
the date of death of the surviving spouse. Upon the death of the surviving
spouse, the survivor benefit shall be paid monthly in equal shares
to the surviving child or children of the deceased participant until
the death or attainment of age 18 of each child, or if attending college,
under or attaining the age of 23. The shares payable to the surviving
children shall be adjusted as each child ceases to be eligible to
receive a share of the benefit hereunder.
(3)
Such survivor benefit shall be paid in lieu of any distribution of
accumulated contributions to which the deceased participant may have
been entitled; provided, however, that in the event the amount of
the participant's accumulated contributions exceeds the amount of
survivor benefit payable in accordance with the preceding, then such
participant's death benefit shall be equal to the amount of the participant's
accumulated contributions.
D.
Death of participant prior to survivor benefit eligibility. If a participant shall die before payment of a benefit has commenced and without eligibility for payment of a survivor benefit under Subsection B, 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 benefits hereunder, the amount of the distribution of accumulated contributions shall be reduced by the amount of disability retirement benefits which have been paid hereunder.
[Amended 2-14-2012 by Ord. No. 2543[2]]
[2]
Editor's Note: This ordinance also provided for an effective
date of 1-1-2012.
A.
Rights of terminated employees. A participant who shall cease to
be an employee except as otherwise hereinbefore provided shall have
all interest and rights under this plan limited to those contained
in the following subsections of this section.
B.
Distribution of accumulated contributions. A participant whose employment
with the employer shall terminate for any reason other than retirement,
death or total and permanent disability, 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.
C.
Deferred vested benefit. A participant who has completed at least 12 years of aggregate service and whose employment with the employer shall terminate for any reason other than retirement, death or total and permanent disability prior to attainment of normal retirement age shall be entitled to elect to receive a deferred vested benefit in lieu of a distribution of accumulated contributions under Subsection B. 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 B shall occur. Such a deferred vested benefit shall be in an amount equal to the participant's accrued benefit as of the date employment terminates and shall commence after application pursuant to § 93-41 as of the day of the month on which the participant's normal retirement age would be attained if the participant continued in employment until such date.
The Plan Administrator shall be the Committee which 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 Council shall be the Plan Administrator.
The Police Pension Committee shall be the Plan Administrator
and the Council shall delegate such authority as it shall deem appropriate
to the Committee to permit the Committee to act as the Plan Administrator.
The Committee shall consist of five members, two of whom shall be
police officers selected by the police officers of the Municipality,
one member shall be a member of Council selected by the Council and
two of whom shall be individuals acceptable to both the police officers
and Council and shall be appointed by the Deputy Mayor. Each member
of the Committee shall serve in that capacity until the earliest of
resignation, death, removal or otherwise.
A.
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:
(1)
To construe this plan;
(2)
To determine all questions affecting the eligibility of any employee
to participate herein;
(3)
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary;
(4)
To authorize any and all disbursements;
(5)
To prescribe any procedure to be followed by any participant and/or
other person in filing any application or election;
(6)
To prepare and distribute, in such manner as may be required by law
or as the Plan Administrator deems appropriate, information explaining
the plan;
(7)
To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan;
(8)
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; and
B.
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 Council.
The Committee may organize itself in any manner deemed appropriate
to effectuate its purposes hereunder, subject to the following:
A.
The Committee shall act by a majority of its members at the time
in office and such action may be taken either by vote at a meeting
or in writing without a meeting.
B.
The Committee shall, from time to time, appoint such agents as it
may deem advisable.
C.
The Committee may, from time to time, 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 Council, in writing, of the name or names of the member
or members so authorized. In the absence of a designation, the Chief
Administrative Officer 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 member or
members (or the Chief Administrative Officer 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.
D.
The Committee or its delegate, 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 or reports as
may be required to be filed with any governmental agency or department
and with the participants and/or other persons entitled to benefits
under the plan but only to the extent that the Council shall delegate
such duties and responsibilities to the Committee.
A.
Plan Administrator costs. The ordinary expense of the administration
of this plan, including the compensation of an actuary for computing
retiree benefits, payment of annual custodian fees and associated
costs, and payments of retirement allowances, shall be paid by the
fund. Any extraordinary expenses, such as the cost of annual actuarial
studies or cost of litigation involving the plan or its officers in
performance of their duties, shall be paid by the Municipality of
Monroeville.
B.
Hold harmless. No member of the Council, the Plan Administrator,
the enrolled actuary, nor any other person involved in the administration
of the plan shall be liable to any person on account of any act or
failure to act which is taken or omitted to be taken in good faith
in performing their respective duties under the terms of this plan.
To the extent permitted by law, the employer shall, and hereby does
agree to, indemnify and hold harmless the Plan Administrator and each
successor and each of any such individual's heirs, executors and administrators,
and the delegates and appointees (other than any person, bank, firm
or corporation which is independent of the employer and which renders
services to the plan for a fee) from any and all liability and expenses,
including counsel fees, reasonably incurred in any action, suit or
proceeding to which 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.
The Committee 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.
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: 1) the specific plan provisions on which the denial is
based; 2) 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 3) 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 Council of the
initial determination. Such request for review must be made by notice
to the Council 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 Council shall, within 60 days
after receipt of the notice requesting such review, (or in special
circumstances, such as where the Council 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 § 93-19 of the plan has been exhausted.
A.
The Committee 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.
B.
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.
C.
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.
D.
The pension fund will consist of all funds held by the employer under
the plan, including contributions made pursuant to the provisions
hereof and the investments, reinvestments and proceeds thereof. The
pension fund shall be held, managed, and administered pursuant to
the terms of the plan. Except as otherwise expressly provided in the
plan, the employer has exclusive authority and discretion to manage
and control the pension fund assets. The employer may, however, appoint
a trustee, custodian and/or investment manager, at its sole discretion.
A.
With respect to the pension fund, the employer shall have the following
powers, rights and duties, in addition to those vested in it elsewhere
in the plan or by law, unless such duties are delegated.
(1)
To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), without liability for interest thereon.
(2)
To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time legal investments for fiduciaries
under the Pennsylvania Fiduciaries Investment Act, or as the same
may be subsequently modified or amended.
(3)
To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
(4)
To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)
To exercise all voting rights with respect to property held in the
fund and in connection therewith to grant proxies, discretionary or
otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this plan no matter where situated, including
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
(8)
In addition to the foregoing powers, the employer shall also have
all of the powers, rights, and privileges conferred upon trustees
by the Pennsylvania Fiduciaries Investment Act, or as the same may
be subsequently modified or amended, and the power to do all acts,
take all proceedings and execute all rights and privileges, although
not specifically mentioned herein, as the employer may deem necessary
to administer the pension fund.
(9)
To maintain and invest the assets of this plan on a collective and
commingled basis with the assets of other pension plans maintained
by the employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
(10)
To invest the assets of the pension fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder. In this connection,
the commingling of the assets of this plan with assets of other eligible,
participating plans through such a medium is hereby specifically authorized.
Any assets of the plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
plan, to the extent of the participation in such collective or commingled
trust fund by the plan.
(11)
To make any payment or distribution required or advisable to
carry out the provisions of the plan, provided that if a trustee is
appointed by the employer, such trustee shall make such distribution
only at the direction of the employer.
(12)
To compromise, contest, arbitrate, enforce or abandon claims
and demands with respect to the plan.
(13)
To retain any funds or property subject to any dispute without
liability for the payment of interest thereon, and to decline to make
payment or delivery thereof until final adjudication is made by a
court of competent jurisdiction.
(14)
To pay, and to deduct from and charge against the pension fund,
any taxes which may be imposed thereon, whether with respect to the
income, property or transfer thereof, or upon or with respect to the
interest of any person therein, which the fund is required to pay;
to contest, in its discretion, the validity or amount of any tax,
assessment, claim or demand which may be levied or made against or
in respect of the pension fund, the income, property or transfer thereof,
or in any matter or thing connected therewith.
(15)
To appoint any persons or firms (including but not limited to,
accountants, investment advisors, counsel, actuaries, physicians,
appraisers, consultants, professional plan administrators and other
specialists), or otherwise act to secure specialized advice or assistance,
as it deems necessary or desirable in connection with the management
of the fund; to the extent not prohibited by applicable law, the employer
shall be entitled to rely conclusively upon and shall be fully protected
in any action or omission taken by it in good faith reliance upon,
the advice or opinion of such persons or firms, provided such persons
or firms were prudently chosen by the employer, taking into account
the interests of the participants and beneficiaries and with due regard
to the ability of the persons or firms to perform their assigned functions.
(16)
To retain the services of one or more persons or firms for the
management of (including the power to acquire and dispose of) all
or any part of the fund assets, provided that each of such persons
or firms is registered as an investment advisor under the Investment
Advisors Act of 1940, is a bank (as defined in that Act), or is an
insurance company qualified to manage, acquire or dispose of pension
trust assets under the laws of more than one state; in such event,
the employer shall follow the directions of such investment manager
or managers with respect to the acquisition and disposition of fund
assets, but shall not be liable for the acts or omissions of such
investment manager or managers, nor shall it be under any obligation
to review or otherwise manage any fund assets which are subject to
the management of such investment manager or managers. If the employer
appoints a trustee, the trustee shall not be permitted to retain such
an investment manager except with the express written consent of the
employer.
B.
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.
A.
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.
B.
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.
All determinations as to the value of the assets of the pension
fund, and as to the amount of the liabilities thereof, shall be made
by the employer or its appointed trustee, whose decisions shall be
final and conclusive and binding on all parties hereto, the participants
and beneficiaries and their estates. In making any such determination,
the employer or trustee shall be entitled to seek and rely upon the
opinion of or any information furnished by brokers, appraisers and
other experts, and shall also be entitled to rely upon reports as
to sales and quotations, both on security exchanges and otherwise,
as contained in newspapers and in financial publications.
A.
Amendment of the plan. The employer may amend this plan at any time
or from time to time by an instrument in writing executed in the name
of the employer under its Municipal seal by officers duly authorized
to execute such instrument and delivered to the Council; provided,
however:
(1)
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;
B.
Termination of the plan. The employer shall have the power to terminate
this plan in its entirety at any time by an instrument in writing
executed in the name of the employer.
C.
Automatic termination of contributions. Subject to the provisions
of the Act governing financially distressed municipalities, the liability
of the employer to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
D.
Distribution upon termination.
(1)
In the event of the termination of the plan, all amounts of vested
benefits accrued by the affected participants as of the date of such
termination, to the extent funded on such date, shall be nonforfeitable
hereunder. In the event of termination of the plan, the employer shall
direct either: a) that the Plan Administrator continue to hold the
vested accrued benefits of participants in the pension fund in accordance
with the provisions of the plan (other than those provisions related
to forfeitures) without regard to such termination until all funds
have been distributed in accordance with the provisions; or b) that
the Plan Administrator immediately distribute to each participant
an amount equal to the vested accrued benefit to the date.
(2)
If there are insufficient assets in the pension fund to provide for
all vested accrued benefits as of the date of plan termination, priority
shall first be given to the distribution of any amounts attributable
to mandatory or voluntary employee contributions before assets are
applied to the distribution of any vested benefits attributable to
other sources hereunder.
(3)
All other assets attributable to the terminated plan shall be distributed
and disposed of in accordance with the provisions of applicable law
and the terms of any instrument adopted by the employer which effects
such termination.
E.
Residual assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the employer
insofar as such return does not contravene any provision of law, and
any remaining balance, in excess of employer contributions, shall
be returned to the commonwealth.
F.
Exclusive benefit rule. In the event of the discontinuance and termination
of the plan as provided herein, the employer shall dispose of the
pension fund in accordance with the terms of the plan and applicable
law; at no time prior to the satisfaction of all liabilities under
the plan shall any part of the corpus or income of the pension fund,
after deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
A.
Actuarial valuations. The plan's actuary shall perform an actuarial
valuation at least biennially. 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.
(1)
Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in the Act.
(2)
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 is directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the pension fund. Such allowable expenses
shall include but not be limited to the following:
(a)
Investment costs associated with obtaining authorized investments
and investment management fees;
(b)
Accounting expenses;
(c)
Premiums for insurance coverage on fund assets;
(d)
Reasonable and necessary counsel fees incurred for advice or
to defend the fund; and
(e)
Legitimate travel and education expenses for plan officials;
provided, however, that the Municipal officials of the employer, in
their fiduciary role, shall monitor the services provided to the plan
to ensure that the expenses are necessary, reasonable and benefit
the plan; and further provided, that the Plan Administrator shall
document all such expenses item by item, and where necessary, hour
by hour.
B.
Duties of Chief Administrative Officer. 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 Council annually and shall certify the accuracy of
such calculations and their conformance with the Act.
C.
Benefit plan modifications. Prior to the adoption of any benefit
plan modification by the employer, the Chief Administrative Officer
of the plan shall provide to the Council a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Council the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum Municipal obligation of the employer
with respect to the plan.
A.
Plan not a contract of employment. 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.
B.
Meaning of certain words. For purposes of this plan, the masculine
gender shall include the feminine gender and the singular shall include
the plural, and vice versa, in all cases wherever the person or context
shall plainly so require. Headings of articles and sections are included
solely for convenience of reference and are not to be considered in
the construction of the plan.
C.
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.
D.
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.
E.
Severability of provisions. In case any provisions of this plan shall
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 therein.
F.
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.
G.
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.
H.
Assets of the fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
I.
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.
J.
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 of participant's then living issue, per stirpes; provided,
however, that nothing contained herein shall prevent the Plan Administrator
from insisting upon the commencement of estate administration proceedings
and the delivery of any such benefits to a duly appointed executor
or administrator.
