[Adopted 9-12-1995 by Ord. No. 6-1995[1]]
As used in this article, the following terms
shall have the meanings indicated:
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
The Board of Supervisors of Willistown Township, Chester
County, Pennsylvania.
The earnings paid by the township to the member during the
plan year as reported to the federal government for income tax purposes
to include member pretax contributions to deferred compensation plans.
The first day of the month on or after the member has completed
10 years of service.
The effective date of this article shall be January 1, 1985.
Any person in the full-time employ of the Township whose
customary employment by the Township is for not less than 35 hours
per week and who is not a current, contributing member of the Township's
Police Pension Plan. In addition, any salaried person in the employ
of the Township whose customary employment by the Township is for
not less than 20 hours per week and who is not a current, contributing
member of the Township's Police Pension Plan.
[Amended 11-27-2006 by Ord. No. 7-2006]
The nonvested portion of a member's account.
All assets held by the trustee under the trust agreement
and related insurance and investment contracts relating to this plan.
Any date later than normal retirement date at which a member
retires.
Any employee who has satisfied the eligibility requirements established in § 35-9 hereof.
Each member's individual account maintained within the fund
to include the prorated share of investment earnings or losses.
The first day of the month coincident with or next following
the date on which the member completes 10 years of service or the
date on which the member attains age 65, whichever is later to occur.
The period of time at which end an employee is compensated
for his services to the township.
The pension plan for the nonuniformed employees of Willistown
Township, as herein set forth and as the same may hereafter be amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
The distribution amount transferred to the plan by a member
from a qualified pension or profit sharing plan.
The aggregate of a member's total periods of employment as
a full-time employee of the township. If a member enters military
service, either voluntarily or by conscription, after he has been
employed for at least six months, such time spent in the Armed Forces
of the United States during a period of national emergency shall be
counted as service for purposes of this plan, provided that such member
returns to service with the township within six months after his discharge
or release from such active duty in the Armed Forces of the United
States. The time spent in military service due to voluntary extension
of such military service during a period of peacetime shall not be
included as service for the purpose of this plan. Time spent on Reserve
or National Guard training shall be included as service for purposes
of this plan.
Any condition arising from illness or injury which precludes
an employee from performing the duties associated with the normal
occupation requirements of any position with the township as certified
by a physician designated by the township.
Willistown Township, Chester County, Pennsylvania.
The contract between the township and the trustee establishing
the terms by which and under which the fund is invested, distributed,
accounted for and terminated, as the same now exists and as it may
hereafter be amended.
The Board of Supervisors of Willistown Township or any other
agency or person appointed by the township to serve in that capacity
as set forth in the trust agreement.
The nonforfeitable right to any immediate or deferred benefit
in the amount which is equal to the sum of Subsections A and B below:
The value on that date of that portion of the
member's account that is attributable to and derived from a member's
own contributions, if any.
The value on that date of that portion of the
member's account that is attributable to and derived from employer
contributions multiplied by his vesting percentage determined on the
date applicable.
The member's nonforfeitable interest to his account plus
the earnings thereon computed as of the date of determining such percentage
because of the occurrence of some event. Vesting will occur upon completion
of years of service as follows:
[Amended 10-12-2004 by Ord. No. 10-2004]
|
Years of Service
|
Vesting Percentage
|
|---|---|
|
Less than 5
|
0%
|
|
5 or more
|
100%
|
A plan year during which an employee has completed at least
1,000 hours of work for compensation or compensation entitlement.
[Amended 10-12-2004 by Ord. No. 10-2004]
A.
Township contributions. The township shall contribute
on behalf of each member who was a member on the last day of the pay
period an amount equal to the fixed percentage of his compensation
for such pay period as has been established by the Board and which
may from time to time be changed by the Board. The current level as
of the effective date of this article is 6%. The township shall remit
the contributions to the trustee not less than monthly.
B.
Rollovers and transfers. The trustee may receive on
behalf of a member all or part of the entire amount of any distribution
from a terminated pension or profit sharing plan or any lump-sum distribution
theretofore received by such member from a pension or profit sharing
plan meeting the requirements of Internal Revenue Code Section 401(a).
C.
State aid. The portion of the payments made by the State Treasurer to the township and designated by the Board to be allocated to this plan's fund from money received from taxes paid upon premiums by foreign casualty insurance companies shall be used to reduce or eliminate the township's contributions pursuant to Subsection A hereof.
D.
Other contributions. The fund shall be authorized
to receive by gift, grant, devise or bequest any money or property,
real, personal or mixed, in trust for the benefit of the fund. The
trustee shall be subject to such directions not inconsistent with
this plan as the donors of such funds and property may prescribe.
E.
Forfeitures. Forfeitures will remain assets of the
trust to be allocated to each member on a pro rata basis.
F.
Member contributions. Members may elect to make voluntary
contributions to the plan. Such voluntary contributions may not exceed
10% of the member's compensation and will be subject to federal, state
and local income taxes, social security and other payroll overhead
expenses. Such contributions will be by payroll deduction on the last
day of each pay period.
A.
Normal retirement. A member who attains his normal
retirement date shall be considered fully vested. If a member retires
on his normal retirement date, he shall receive a distribution of
the vested value of his member account valued as of his normal retirement
date.
B.
Early retirement. A member who retires on his early retirement date shall have a vesting percentage as defined by § 35-8 hereof and shall receive a distribution of the vested value of his member account valued as of his early retirement date plus vested contributions made after that date.
C.
Late retirement. A member may continue in the service of the township after his normal retirement date, and in such event shall retire on his late retirement date. Such member shall continue as a member under this plan until such late retirement date. The member shall have a vesting percentage as defined by § 35-8 hereof and shall receive a distribution of the vested value of his member account valued as of his late retirement date.
D.
Disability retirement. A member who retires from the
service of the township due to a total disability shall have a vesting
percentage of 100% and shall receive a distribution of the entire
value of his member's account as of his disability retirement date.
A.
Death prior to retirement. If a member dies prior
to the commencement of pension benefits, his designated beneficiary
shall be entitled to 100% of the member's account valued as of the
end of the month during which death occurred. If no such beneficiary
survives, the amount will be paid to the member's estate.
A.
Settlement options. Distributions may be made in a
lump sum; however, if not made in a lump-sum distribution, they may
be made over one of the following periods (or a combination thereof):
B.
Joint and survivor annuity. Unless an optional form
of benefit is selected by a member and agreed to by the member's spouse,
the member's vested member account balance will be paid in the form
of a fifty-percent joint and survivor annuity.
A.
Distribution. As of a member's termination of employment,
he shall receive a distribution of his entire vested interest valued
at the end of the semiannual period during which termination occurred.
B.
Reemployment rights. If the terminated member is rehired by the township and reenrolls in the plan within 12 consecutive months of termination, he shall continue to participate in the plan as if such termination had not occurred. If a terminated member is rehired by the township and reenrolls in the plan after a one-year break in service has occurred, years of service prior to the one-year break in service will be credited toward vesting percentage calculations as defined by § 35-8 hereof, provided that the terminated member under the plan did not have a nonforfeitable right to any interest in the plan resulting from employer contribution, and his consecutive one-year breaks in service did not equal or exceed the greater of five or the aggregate number of his pre-break years of service. If a terminated member receives a distribution pursuant to this subsection and is subsequently rehired and resumes employment covered under this plan, prior to five consecutive one-year breaks in service, his employer-derived forfeited account balance will be restored only if he repays the full amount distributed to him before the earlier of five years after the first date on which the member is reemployed by the township or the close of the first period of five consecutive one-year breaks in service commencing after distribution.
A.
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 35-11, 35-12, 35-13 and 35-14, in accordance with the instructions received from the Board; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
B.
The township may employ an actuary, investment advisors,
counsel or other professional consultants from time to time in connection
with the operation of the fund or of this plan. Such persons or entities
shall be compensated by the township at such rates as may be agreed
upon by the Board. Such compensation may be paid from the fund.
C.
The trustee shall make an annual determination of
the fair market value of the fund as of the anniversary date and as
of such additional dates as the Board may direct. The fair market
value of the fund shall be reported to the members at least annually.
A.
The plan shall be administered by the Board. The Board
shall have the power and authority to make and adopt by resolution
rules and regulations for the efficient administration of the plan,
as it may deem desirable, provided that the same shall not be in conflict
with any of the provisions of the plan.
B.
The Board shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provisions of the plan and shall provide all such data, records and documents to the trustees and any other professional whose services are employed pursuant to § 35-15B of this plan.
C.
The Board shall construe the plan, shall determine
any questions of fact arising under the plan and shall make all decisions
required of it under the plan and its construction thereof, and decisions
and actions taken thereon in good faith shall be final and conclusive.
It may correct any defect or supply any omission or reconcile any
inconsistency in such manner to such extent as it shall deem expedient
to carry the plan into effect, and it shall be the sole judge of such
expediency. The Board shall act uniformly with respect to matters
coming before it concerning employees in similar circumstances.
D.
The Board shall serve without bond except as may be
otherwise required by law and without compensation for its services
as such.
E.
The members of the Board, and each of them, shall
be free of all liability for any act or omission except by willful
misconduct or gross negligence, and each of them shall be fully indemnified
by the township against all judgments not involving findings of their
respective personal or collective willful misconduct or gross negligence
and against all costs, including counsel fees, incurred in defense
of actions brought against them.
F.
The Board shall make available to members, retired
members and terminated members and to their beneficiaries, for examination
during business hours, such records as pertain to the person examining.
G.
To enable the Board to perform its functions, the
township shall supply full and timely information to it on all matters
relating to the pay of all members, their retirement, death, termination
of employment and such other pertinent facts as the Board may require.
H.
The Chairman and Secretary, acting on behalf of the
Board, shall have the power to execute all documents necessary to
carry out the actions of the Board, and any person, partnership, corporation
or government agency shall accept such documents over such signature
or signatures as if executed by the Board.
A.
It is the expectation of the township that it will
continue this pension plan indefinitely and will from time to time
contribute to the fund such amounts as may be needed to provide the
benefits set forth in the plan; but continuance of the plan is not
assumed as an obligation of the township, and the right is reserved
by the township at any time to reduce, suspend or discontinue its
contributions hereunder.
B.
The township assumes no obligation or responsibility
with respect to the operation of the plan and does not guarantee the
payment of the benefits provided for members of the plan. The township
shall have no liability with respect to the administration of the
fund, and payments made under the provisions of any ordinance establishing,
amending or maintaining the plan shall not be a charge on any other
fund in the treasury of the township or under its control, save the
nonuniformed employees' pension fund herein provided for.
C.
Nothing contained in the plan shall be held or construed
as a contract or guarantee of employment nor to create any liability
upon the township to retain any person in its service. The township
reserves the full right to discontinue the service of any person without
any liability except for salary or wages that may be due and unpaid
whenever, in its judgment, its best interests so require, and such
discontinuance shall be without regard to this plan.
A.
The township may amend, curtail or terminate this
plan at any time; provided, however, that no amendment affecting the
trustee shall be made without its consent (other than an amendment
having the effect of terminating the plan); nor shall any amendment
be made which will in any manner divert any part of the fund to any
purpose other than the exclusive benefit of members or their beneficiaries
(except upon termination such diversion may be made after all of the
fixed and contingent liabilities to members and their beneficiaries
have been met); nor shall any amendment be made at any time which
will in any manner divest any benefit then vested in a member.
B.
In the event of termination of this plan, the Board
shall allocate the assets then remaining in the fund, to the extent
that such assets are sufficient, to members and retired members in
an amount equal to their respective member account balance reduced
in the cases of retired members by any prior distributions made to
them.
C.
After allocation of the funds, the Board shall determine
whether to operate the fund as the source of whatever payments the
money so allocated will provide.
A.
No benefit under this plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge
or encumbrance, nor to seizure, attachment or other legal process
for the debts of any member or member's beneficiary. This provision
shall not apply to a "qualified domestic relations order" defined
in Code Section 414(p), and those other domestic relations orders
permitted to be so treated by the Board under the provisions of the
Retirement Equity Act of 1984. The Board shall establish a written
procedure to determine the qualified status of domestic relations
orders and to administer distributions under such qualified orders.
Further, to the extent provided under a qualified domestic relations
order, a former spouse of a member shall be treated as the spouse
or surviving spouse for all purposes under this plan.
B.
Any person dealing with the trustee may rely upon
a copy of this plan and any amendments thereto certified to be a true
and correct copy by the trustee.
C.
Anything heretofore contained in this plan to the
contrary notwithstanding, it is the intention of the township that
any action herein provided to be taken by the trustee shall be taken
only in accordance with written instructions of the Board given in
such detail as to preclude the exercise by the trustee of discretion
in the performance thereof.
D.
Under no circumstance, whether upon amendment or termination
of this plan or otherwise, shall any part of the fund be used for
or diverted to any purpose other than the exclusive benefit of members
or their beneficiaries until all of the financial obligations to such
member or member's beneficiaries have been met.
E.
If the Board deems any person incapable of receiving
benefits to which he is entitled by reason of minority, illness, infirmity
or other incapacity, it may direct the trustee to make payment directly
for the benefit of such person to the guardian or trustee of such
person, whose receipt shall be a complete acquittance therefor. Such
payment shall, to the extent therefor, discharge all liability of
the township, the trustee and the fund.
F.
Should any provision of this plan be determined to
be void by any court, the plan will continue to operate and, to the
extent necessary, will be deemed not to include the provision determined
to be void.
G.
Headings and captions provided herein are for convenience
only and shall not be deemed part of the plan.
H.
This plan shall be construed and applied under the
laws of the Commonwealth of Pennsylvania where not in conflict with
federal laws which shall prevail.
I.
Ordinance No. 5-1985 is hereby repealed. All ordinances
or portions thereof inconsistent herewith are hereby repealed.
