The Board of Supervisors of Montgomery Township
is hereby authorized to execute the Delaware Valley Workers' Compensation
Trust Agreement for the participation of Montgomery Township in the
Delaware Valley Workers' Compensation Trust, which Agreement is attached
hereto as Exhibit A and is on file for inspection and review at the
offices of Montgomery Township, Montgomery County, Pennsylvania. This
Agreement may be amended after the enactment of this article to conform
to any requirements imposed by the Commonwealth of Pennsylvania and
any of its agencies, including the Department of Labor and Industry
Bureau of Workers' Compensation.
The participation of Montgomery Township in
the Delaware Valley Workers' Compensation Trust is authorized for
the purposes of enabling Montgomery Township to reduce the cost of
workers' compensation claims through the creation of a group self-insurance
fund.
As set forth in the Delaware Valley Workers'
Compensation Trust Agreement, the following conditions, among others,
apply to the participation of Montgomery Township in the Delaware
Valley Workers' Compensation Trust:
A. That the trust shall consist of at least five homogeneous
municipal participants organized as local government agencies under
Pennsylvania law.
B. That each participant satisfies all eligibility and
admission requirements for membership in the Trust.
C. That each participant pledges and agrees to appropriate
funds to pay all its annual contributions and assessments which are
required for the creation of a fund maintained at a level sufficient
to pay all workers' compensation claims and related expenses incurred
by the trust participants.
D. That each participant agrees to jointly and severally
assume and discharge the workers' compensation liabilities of each
and every other participant in accordance with the Delaware Valley
Workers' Compensation Trust Agreement when required to do so by the
Pennsylvania Department of Labor and Industry Bureau of Workers' Compensation.
E. That each participant will institute any and all loss
prevention measures or risk management procedures as may be required
for the purpose of minimizing or eliminating workplace risks to its
employees.
F. That each participant cooperate fully with the Trust's
service and fiscal agents, attorneys, claims adjusters and any other
agents or employees of the Trust with respect to the investigation,
defense and settlement of claims.
G. That each participant designate a person to be responsible
for all contacts with the Trust.
H. That each participant provide any information to the
Administrator or Board of Trustees as may be required to effect the
purposes and objectives of the Trust.
I. That each participant comply with all applicable statutes
and regulations governing the payment of workers' compensation claims,
including but not limited to the Pennsylvania Workers Compensation
Act and any regulations promulgated thereunder.
Montgomery Township agrees to participate in
the Trust for a minimum period of two years subject to the terms and
conditions of the Delaware Valley Workers' Compensation Trust Agreement.
After the expiration of that minimum two-year period, each participant
may withdraw under the following conditions, subject to the right
of arbitration as provided in the Delaware Valley Workers' Compensation
Agreement:
A. An opinion is rendered by the Trust-certified actuary
that withdrawal will not result in the number of participants falling
below the minimum required to assure the fiscal and actuarial soundness
of the Trust itself.
B. The withdrawing participant is not then in default
of its obligation to pay premiums, contributions or assessments.
C. The withdrawing participant shall pay the full amount
of a termination contribution or any additional assessments, as determined
by the Board of Trustees in accordance with the Delaware Valley Workers'
Compensation Trust Agreement and bylaws.
D. The Board of Trustees shall have received a certification
from the Trust actuary that the withdrawal of the participant will
not impair the actuarial soundness of the Trust and, if any municipal
debt has been incurred by the participants to finance any portion
of the Trust reserves, an opinion is obtained from bond counsel that
such withdrawal will not adversely affect the tax-exempt status of
any interest paid and any debt incurred by the participants or any
legal entity created for the purpose of incurring such debt. As used
herein, the term "debt" includes any municipal bonds, certificates,
letters of credit or other instruments of municipal indebtedness.
Participation of Montgomery Township in the
Delaware Valley Workers' Compensation Trust will be effective upon
final approval of the Trust permit application by the Pennsylvania
Department of Labor and Industry Bureau of Workers' Compensation or
upon any other date determined by the Department.
All contributions and assessments paid by Montgomery
Township shall be made with funds appropriated by Montgomery Township
for that purpose.
The organizational structure of the Trust shall
consist of a Board of Trustees, an administrator, a claims administration/loss
control consultant(s) and various service agents appointed by the
Board of Trustees in accordance with the Delaware Valley Workers'
Compensation Trust Agreement and any bylaws adopted pursuant thereto.
As set forth in the Delaware Valley Workers
Compensation Trust Agreement, the funds required for the creation
and operation of the Trust shall be provided by the participating
municipalities through annual appropriations.
The Delaware Valley Workers' Compensation Trust
is empowered to enter into contracts for policies of group insurance
and employee benefits, including social security, for any of its employees.
As a condition of participating in the Delaware
Valley Workers' Compensation Trust, Montgomery Township agrees to:
A. Pay all annual contributions or assessments as may
be required by the Board of Trustees.
B. Appoint a representative to sit on the Board of Trustees
and designate a contact person for the purpose of communicating with
the trust or its representatives.
C. Not withdraw from the Trust for a period of two years
following its admission to the Trust, subject to the terms and conditions
of the Delaware Valley Workers' Compensation Trust Agreement.
D. Withdraw from the Trust only upon satisfaction of
the conditions set forth in the Delaware Valley Workers' Compensation
Trust Agreement.
E. Perform all covenants contained in the Delaware Valley
Workers' Compensation Trust Agreement and delegate to the Board of
Trustees the powers and authorities enumerated in that Agreement.
F. Comply with all the conditions set forth in the Delaware
Valley Workers' Compensation Trust Agreement governing the handling
and payment of claims, including the defense and settlement thereof.
G. Appropriate the funds needed to pay all contributions
and assessments as may be required by the Board of Trustees in accordance
with the Delaware Valley Workers' Compensation Trust Agreement.
H. Cooperate with the Trust, its agents or employees
and provide the Trust with all information it needs for the operation
of the Trust, including any underwriting or claims data which may
be requested by the Board of Trustees or its designee.
This article is being enacted pursuant to the
Pennsylvania Intergovernmental Cooperation Law.