Borough of Edgeworth, PA Retirement Benefits

Each participant who shall become entitled to a benefit pursuant to § 23-10 shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average salary as determined herein. Each participant who shall commence receipt of a primary federal social security benefit which is attributable to the participant's employment, as defined herein, shall have the benefit paid pursuant to this plan reduced by an amount equal to 50% of the said primary social security benefit.

The foregoing reduction is eliminated and shall not apply to participants who retire on or after January 1, 1995 and their beneficiaries. All persons retiring on or before December 31, 1994, shall continue to be subject to the reduction, and shall not be affected by or benefit under this elimination of the reduction, even for benefits received after January 1, 1995.

§ 23-12 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 § 23-10 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 § 23-11 on the basis of the final monthly average salary as of such participant's actual retirement date.

§ 23-13 Payment of benefits.

Retirement benefit payments shall be payable as of the first day of the month coincident with or next following the participant's retirement date and the first day of each month thereafter during the participant's lifetime. A participant must complete an application for benefit 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 or 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. Payment of benefits hereunder shall cease as of the date of death of the participant.

§ 23-14 Maximum benefit limitations.

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 lesser of:

(1)

The amount specified in Code Section 415(b)(1)(A) as adjusted pursuant to Code Section 415(d), which amount shall be $112,221 as of the restatement date of this plan, assuming the form of benefit shall be a straight life annuity (with no ancillary benefits); or

(2)

One hundred percent of the participant's average compensation for the participant's high three years.

The limitations described in this section shall be governed by the following conditions and definitions:

(1)

Compensation shall include the participant's wages, salaries, fees for personal services actually rendered in employment to the extent the amounts are includable in gross income and shall exclude contributions made by the employer to a plan of deferred compensation to the extent that, before the application of Code Section 415 limitations to that plan, the contributions are not includable in the gross income of the employee for the taxable year in which contributed; exclude distributions from a qualified plan of deferred compensation; and exclude other amounts which receive special tax benefits, such as premiums for group term life insurance to the extent not includable in the gross income of the employee or contributions made by the employer (whether made under a salary reduction agreement or not) to the purchase of an annuity contract pursuant to Code Section 403(b).

(2)

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 to determine the limitation contained herein.

(3)

In the case of a benefit which commences prior to the attainment of age 62 by the participant, the limitation of Subsection A(1) shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to Subsection A(1) commencing at age 62; however, the reduction shall not reduce the limitation below $75,000 for a benefit commencing at or after age 55, or, if the benefit commences prior to attainment of age 55, the amount which is actuarially equivalent to a benefit of $75,000 commencing at age 55; 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 or fire department is taken into account in determining the amount of benefit], the limitation contained herein shall not reduce the limitation of Subsection A(1) to an amount less than $62,345 as of the restatement date of this plan, and such amount shall be adjusted pursuant to Code Section 415(d).

(4)

In the case of a benefit which commences after attainment of age 65 by the participant, the limitation of Subsection A(1) shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to Subsection A(1) commencing at age 65.

(5)

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 with fewer than 10 years of participation, the limitation expressed in this subsection 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.

(6)

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.

§ 23-15 Required distributions.

Distribution.

(1)

Notwithstanding any other provision of this plan, the entire benefit of any participant who becomes entitled to benefits prior to his death shall be distributed either:

(a)

Not later than the required beginning date; or

(b)

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).

(2)

If a participant who is entitled to benefits under this plan dies prior to the date when his entire interest has been distributed to him/her, after distribution of his benefits has begun in accordance with Subsection A(1)(b) 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(1)(b) as of the date of his death.

If a participant who is entitled to benefits under this plan dies before distribution of his benefit 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 that, 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.

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 employee's spouse (other than in the case of a life annuity) may be redetermined but not more frequently than annually.

§ 23-16 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.

§ 23-17 Retired participants.

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.

§ 23-17.1 Early retirement.

[Added 6-15-2021 by Ord. No. 554]

A participant who has completed 20 years of service may voluntarily retire after attaining age 55 and receive his or her accrued benefit on such participant's early retirement date. This early retirement date will be the date selected by the participant; provided, however, that the plan must receive 90 days' advance written notice of this date for the date to be effective, and the date must be the first day of a month. In the event of an early retirement, the participant will receive a reduced benefit. The early retirement benefit shall become effective as of the date the application is filed with the governing body or the date designated on the application, whichever is later, and shall be the actuarial equivalent of a partial superannuation retirement benefit calculated as follows:

(1)

A partial superannuation retirement benefit shall be determined by applying the percentage that the member's years of service bear to the years of service that the member would have rendered had the member continued to be employed until his superannuation retirement date to the gross pension amount calculated using the monthly average salary during the appropriate period prior to his termination of employment.

(2)

The actuarial equivalent of the partial superannuation retirement benefit shall be determined by actuarially reducing the partial superannuation retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the date on which the member would have completed superannuation age and service requirements. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission under the act of December 18, 1984 (P.L.1005, No. 205),[1] known as the "Municipal Pension Plan Funding Standard and Recovery Act."

[1]

Editor's Note: See 53 P.S. § 895.101 et seq.