[Adopted 8-11-1983 by Ord. No. 475]
Editor's Note: This ordinance repealed former Art. II, Employees' Pension Plan, adopted 8-16-1973 by Ord. No. 281, as amended.
As used in this article, the following terms shall have the meanings indicated:
- The person, persons or estate designated by the member to receive any plan benefits payable on account of the member's death.
- BENEFIT COMMENCEMENT DATE
- A member, upon retirement or other termination of service, may elect to receive his disbursement under § 24-11, 24-12 or 24-13A immediately upon his termination, or § 24-13B after the end of the calendar year in which he terminates his employment. If he elects immediate payment, the member will receive his vested account balance as of the end of the prior year plus his own contributions and his vested share of Township contributions for the year of his termination, but with no investment earnings credited for the year of termination to either his employee contribution account or his Township contribution account. If the member elects to receive his disbursement after the end of the year during which he retired or terminated service, he will receive the balance in his employee contribution account and his vested share of the Township contribution account as of the end of the year of termination, including investment earnings to the end of the year credited to both accounts.
- A person in full-time employment (35 or more hours per week) with the Township, in any capacity other than as a sworn member of the Township's Police Department.
- EMPLOYEE CONTRIBUTION ACCOUNT
- The total amount of member contributions to the plan, together with rollover contributions and investment earnings on such contributions. Also, the account within which such contributions are held.
- INVESTMENT EARNINGS
- Such interest, dividend, capital gains or other income as accrues on the plan assets.
- The Employees' Pension Plan of Whitemarsh Township, as established July 1, 1983. The "plan" is a defined contribution plan with contributions from both members and the Township.
- PLAN TRUST
- The trust fund established for the purpose of carrying out the provisions of the plan.
- Termination of employment with the Township under circumstances which entitles the member to normal, disability or vested retirement benefits under the provisions of § 24-11, 24-12 or 24-13, respectively, hereof.
- An employee's total period of employment with the Township from the date of employment to retirement or prior termination.
- The Township of Whitemarsh, Montgomery County, Pennsylvania.
- TOWNSHIP CONTRIBUTION ACCOUNT
- The total amount of Township contributions to this pension plan, together with investment earnings on such contributions. Also, the account within which such contributions are held.
- A. A member will be 100% vested in the total amount in his employee contribution account at all times. A member will become vested in the total amount in his Township contribution account in accordance with the following schedule:
- B. In addition, a member will be 100% vested in the value in his Township contribution account if he reaches age 65, becomes disabled or dies before completion of five years of service with the Township.
[Amended 12-14-2006 by Ord. No. 824]
Effective date. The effective date of this plan shall be July 1, 1983.
Applicability. Benefits established hereunder which did not exist previously under the plan prior to the effective date shall not have retroactive application and shall be payable only to members who qualify for such benefits after the effective date of this article.
Fiscal year. The fiscal year of the plan shall be the calendar year.
Employees hired on or after July 1, 1981, will be required to become members of the plan as a condition of employment.
Employees hired prior to July 1, 1981, may waive membership in the plan. Alternatively, such employees may elect plan membership as of July 1, 1983, or any later date, but must continue membership once it is elected.
[Amended 4-13-1989 by Ord. No. 578]
Member mandatory contributions. Each member shall be required to contribute to the plan 3% of his annual salary or compensation. Member contributions shall be collected by the Township through payroll deductions and paid into the plan trust at such times as the Township, by rule or regulation, shall determine.
Member optional contributions. Each member may elect to make optional contributions to the plan in addition to his mandatory contributions. Such optional contributions shall be a percent of his annual salary or compensation ranging from 1% to 12%. A member's total contribution for mandatory and optional contributions shall not exceed 15%.
Township contributions. Township contributions shall be equal to 100% of the members' mandatory contributions plus 100% of the first 3% of the members' optional contribution to a maximum contribution of 6%. Township contributions shall be paid into the plan trust monthly.
Changes and optional contributions. A member may increase or decrease the rate of optional contributions effective as of the first of any calendar year by submitting a new election form to the Township Manager 30 days prior to the beginning of the year. A member may suspend optional contributions at any time by submitting a new election form to the Township Manager. Suspension shall be effective as soon as practicable after the election is filed with the Township Manager. A member who has suspended optional contributions may recommence contributions effective as of the first of any subsequent calendar year by submitting a new election form to the Township Manager 30 days prior to the beginning of the calendar year. For 1989, the election shall be made within 30 days of the date of the adoption of this article.
Rollover contributions. Each member who was a participant in the Township plan prior to July 1, 1983, will receive, as a transfer to his employee contribution account on July 1, 1983, the greater of:
The accumulated value of his member contributions with interest as provided under the pension plan in effect prior to July 1, 1983; or
The present value based on actuarial assumptions chosen for that purpose by the actuary of his accrued benefit as of June 30, 1983, under the pension plan in effect prior to July 1, 1983.
Eligibility requirements. Termination of Township employment by a member on or after his 65th birthday.
Amount of benefit. The total value of the member's employee contribution account and the member's Township contribution account, including all member contributions, Township contributions and investment earnings thereon.
Form of payment. Benefits will be paid in a single lump sum payment unless the member elects to receive monthly payments. If monthly payments are elected, the member shall elect any monthly dollar amount in excess of 1% of his account balance. Monthly installments of this amount will be withdrawn from the member's account as paid, and the unpaid balance will continue to share in investment results. Benefits will continue until the account balance is depleted, or the remainder of the account will be paid as a lump sum if the member dies or elects a full settlement at any time subsequent to termination. This monthly amount may not be changed more than once in any calendar year.
Eligibility requirements. A member who becomes eligible for long-term disability benefits under the Township's health and welfare plan shall be eligible for disability retirement benefits under this plan. A member who dies while an employee of the Township shall be eligible for death benefits under the plan.
Amount of benefit: the total value of the member's employee contribution account and the member's Township contribution account, including all member's contributions, Township contributions, rollover contributions and investment earnings thereon.
Form of payment. Disability retirement benefits will be paid in a single lump sum payment unless the member elects to receive monthly payments. If monthly payments are elected, they will be paid in the same manner as normal retirement disbursements, in accordance with § 24-11. Death benefits will be paid in a single lump sum to the member's designated beneficiary.
Eligibility requirements: termination of Township employment after a member has completed at least 10 years of service but before the member's 65th birthday.
Amount of benefit: the total value of the member's employee contributions account and the member's Township contribution account, including all member's contributions, Township contributions, rollover contributions and investment earnings thereon.
An employee who terminates employment with the Township prior to the completion of 10 years of eligibility service shall receive the balance in his employee contribution account. No other plan benefits are payable. Any nonvested balance in the member's Township contribution account shall be used to reduce the required Township contribution to the plan.
Editor’s Note: Former § 24-15, Return to Township employment, was repealed 12-14-2006 by Ord. No. 824.
Gifts, grants, devises or bequests of any money or other property for the benefit of this plan shall be added to the funds of the plan trust as Township contribution in addition to Township's contribution under § 24-10B and administered in accordance with the terms thereof, provided that there is no restriction on the use of such property which is inconsistent with the provisions of this plan and any amendment thereto.
The income (including increases or decreases in value of principal as well as interest, dividends, etc., earned thereon) of the trust fund for each year shall be allocated to accounts of members, former members and beneficiaries who had unpaid balances in their accounts on December 31 (the valuation date) in proportion to balances in such accounts at the beginning of the year but after first reducing each such account balance by any distribution from the account during the year and after increasing the balance in each member's contribution account at the beginning of the year by 1/2 of any member's contribution for such year. The account of a member whose participation is terminated on other than a valuation date may at the option of the Township be valued at the close of the month of such termination (interim valuation date) for the purpose of distribution only in order to account for any substantial changes in value of trust fund assets. Each valuation shall be based on the fair market value of assets in the trust fund on the valuation date of any interim valuation date.
All contributions of the Township and members to the plan, all assets held in the plan trust and any retirement allowance payable hereunder shall be assignable except as otherwise provided under the terms of this plan and any amendment hereto and shall be free from any levy, sale, garnishment, attachment or other process.
Any member of the plan or an individual who has become a beneficiary under the plan who is dissatisfied with any ruling or decision of the Committee in reference to the rights of such person may, after notice and at a time fixed by the Committee, personally appear before it for the purpose of having the Committee hear his complaint.
The Board of Supervisors of Whitemarsh Township may amend this plan at any time, provided that no such amendment shall reduce accrued benefits for any member. Any amendment needed to initially qualify this plan with the Internal Revenue Service may be made retroeffective to July 1, 1983.
[Added 1-8-1987 by Ord. No. 543]
The expenses of administering this article, including the compensation of an actuary and the custodian of the fund, exclusive of the payments of retirement allowances, shall be paid from plan assets.