Township of Warminster, PA Nonuniformed Employees Pension Plan

The average monthly salary of the employee at any time of reference computed over the final 48 months of compensation during his continuous employment by the Township prior to such date of reference. W-2 wages will be used for purposes of computing the average compensation.

BOARD

The Board of Supervisors of Warminster Township, Bucks County, Pennsylvania.

CHIEF ADMINISTRATIVE OFFICER

The person who has primary responsibility for the execution of the administrative affairs of this pension plan, or the designee of that person.

EARLY RETIREMENT DATE

For the members of the Warminster Township Employees Organization (WETO) and the nonbargaining employees, the first day of the month coincident with or next following the date on which the member attains age 55 and completes 20 years of service.

[Added by Ord. 648, 1/11/2007, § 1]

EFFECTIVE DATE

The effective date of this Part 6 shall be January 1, 2005.

EMPLOYEE

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. Such employment must be permanent; any person hired on a temporary or seasonal basis shall not be eligible for this plan.

FUND

All assets held by the trustee under the trust agreement relating to this pension plan.

MEMBER

Any employee who has satisfied the eligibility requirements established in § 1-602 hereof and who is, at the time of reference, making such contributions as may be required pursuant to § 1-603, Subsection 1, hereof.

NORMAL RETIREMENT DATE FOR DISTRICT COUNCIL 88 AND NONBARGAINING EMPLOYEES

The first day of the month coincident with or next following the date on which the member attains age 62 and completes five years of service.

NORMAL RETIREMENT DATE FOR LOCAL 1598 EMPLOYEES

The first day of the month coincident with or next following the date on which the member attains age 62 and completes five years of service or age 55 and completes 20 years of service.

PLAN

The pension plan for the nonuniformed employees of Warminster Township, as herein set forth and as the same may hereafter be amended.

PLAN YEAR

A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.

SERVICE

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 purposed of this plan, provided 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.

TOTAL DISABILITY

A physical or mental condition that prevents the employee from engaging in any remunerative employment on a full-time basis.

TOWNSHIP

The Township of Warminster, Bucks County, Pennsylvania.

TRUST AGREEMENT

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.

TRUSTEE

The Board or any other agency or person appointed by the Board to serve in that capacity.

Wherever applicable as used herein, unless the context specifically provides otherwise, the singular and plural shall be interchangeable, and the masculine or feminine shall include either sex.

§ 1-602 Eligibility.

[Ord. 632, 7/28/2005, Art. II]

All persons who are employees (as defined in this plan) as of the effective date hereof shall be a member as of the effective date.

Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.

§ 1-603 Contributions.

[Ord. 632, 7/28/2005, Art. III]

Contributions by members. Members are not required to contribute into the fund. However, the Board, at its own discretion, may require members to contribute in order to keep the fund actuarially sound. If contributions are required, members would contribute a percentage of their annual compensation. The Board, on an annual basis, will determine the percentage to be used in deducting the member's contributions. Individual records or contributions by members shall be maintained, including all interest credited to the member's contribution account. Interest to be credited shall be 5% annually.

Refund of member's contributions. Any member who for any reason shall be ineligible to receive a pension after having made contributions shall be entitled to a refund of his individual account balance; such refund is payable immediately upon the discontinuance of his employment with the Township or within a reasonable time (not more than 45 days after discontinuance). If such discontinuance is due to death, then such refund shall be paid to his designated beneficiary or, in the absence thereof, to his estate. If the retired member is receiving a benefit, then the refund payable to the beneficiary is equal to the individual account balance at the date of retirement, less any payments made to the member.

Deposits. Contributions by members (if any) shall be remitted to the trustee not less than monthly.

State aid. Payments made by the State Treasurer from the moneys received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement for members shall be used as follows:

To reduce the unfunded liability or after such liability has been fully funded.

To apply against the annual obligation of the Township for future service costs or to the extent that the payment may be in excess of such obligation.

To reduce member contributions pursuant to Subsection 1 hereof.

Township contributions. Subject to the provisions and limitations set forth in other sections of this plan, the Township shall contribute the amounts certified to be necessary by the fund's actuary to provide the benefits provided by this plan.

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 of the fund shall be subject to such directions, not inconsistent with this plan, as the donors of such funds and property may prescribe.

§ 1-604 Retirement benefits.

[Ord. 632, 7/28/2005, Art. IV]

Normal retirement. A member may retire on or at any time after his normal retirement date. Any member so retiring shall be entitled to receive a monthly pension commencing as of the first day of the month coincident with or next following his date of actual retirement and ending with the payment made as of the first day of the month in which his death occurs. The monthly pension to which such retired member shall be entitled under this plan shall be equal to 2.5% of such member's average compensation for each year of service, measured in years and completed months.

Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any member on postponed retirement shall continue to make the contributions required pursuant to § 1-603, Subsection 1, hereof.

Disability retirement. A member who has suffered a total disability after completing five years of credited service shall be eligible to receive a benefit computed in accordance with Subsection 1, with payments commencing at the onset of the member's total disability and continuing thereafter during the remainder of such period of total disability. This benefit is reduced, however, by any payment that the member is entitled to receive under any workers' compensation law or any other program of disability benefits financed in whole or in part by the Township, exclusive of benefits payable under social security. The Board, or its designee, reserves the right to require disabled members to present evidence of total disability and of the continuance of such condition from time to time and further reserves the right to require disabled members to submit to medical examinations by one or more licensed medical practitioners selected by the Board, or its designee, as a precondition to the continued payment of benefits.

Cost-of-living increase. Beginning January 1, 2000, the plan shall provide for a cost-of-living increase for the nonbargaining employees who begin receiving retirement benefits after the above date. Beginning January 1, 2004, the plan shall provide for a cost-of-living increase for the Local 1598 employees and the Warminster Township Employees Organization employees who begin receiving retirement benefits after January 1, 2004. Such cost-of-living increases shall not exceed the percentage increase as determined by the Department of Labor in the All Urban Consumers Price Index for the Philadelphia metropolitan region from the year in which the member last worked; provided, further, that in no such case shall the total pension benefits exceed 75% of the salary for computing retirement benefits; and provided further that the total cost-of-living increase shall not exceed 30%. No cost-of-living increase shall be granted which would impair the actuarial soundness of the plan. All adjustments shall be made in January and calculated on the twelve-month percentage change in the consumer price index as of the previous October.

Early retirement. A member of the Warminster Township Employees Organization (WETO) and nonbargaining employees may retire on or at any time after their early retirement date. The member's monthly benefit at his early retirement date, payable on his normal retirement date, shall be equal to 2.5% of such member's average compensation for each year of service, measured in years and completed months. In the event that the benefit payments commence prior to the normal retirement date, the monthly benefit will be reduced by 1/180 for each month of the first 60 months by which the benefit commencement date precedes the normal retirement date and by 1/360 for each month of the next 60 months by which the benefit commencement date precedes the normal retirement date.

[Added by Ord. 648, 1/11/2007, § 2]

§ 1-605 Death benefits.

[Ord. 632, 7/28/2005, Art. V]

If a member is eligible to elect a normal retirement, early retirement, or a vested benefit and dies before electing said benefit, it will be presumed that he elected the benefit the day before he died.

A member who meets the qualifications for normal retirement, early retirement, or a vested benefit may file an application for said benefit, providing that the application becomes effective only upon his death. In the event no application is filed, it will be presumed the member had elected to retire on a 50% joint and survivor actuarial equivalent basis.

Death benefit if no surviving spouse. If a member dies and is not survived by a spouse, his designated beneficiary shall be entitled to a refund of his accumulated member's contributions, with credited interest. If no beneficiary survives, then the refund is payable to the member's estate.

§ 1-606 Vesting and severance of employment.

[Ord. 632, 7/28/2005, Art. VI]

If a member leaves the employ of the Township or ceases to be a member, whether by reason of his transfer, resignation or discharge or by reason of retirement other than after becoming eligible for benefits pursuant to §§ 1-604 and 1-605 of this plan, he shall be entitled to a refund of all contributions made by him and then on deposit in the fund, plus interest thereon, computed at the rate described in § 1-603, Subsection 1. However, the member may elect to leave his contributions, plus interest, in the fund so as to receive a vested pension benefit to start at his normal retirement date. The vesting percentage is determined from the schedule below:

	Years of Vesting Service	Percentage
	0 to 4	0%
	5 or more	100%

The amount of the vested pension benefit shall be computed in accordance with § 1-604, Subsection 1, as of the date of termination, multiplied by the vesting percentage.

§ 1-607 Distribution of benefits.

[Ord. 632, 7/28/2005, Art. VII]

Refund of member contributions becoming distributable pursuant to § 1-606, Subsection 1, shall be paid in the form of a lump-sum distribution.

Options on normal, early, disability retirement, or vesting.

At the time a member elects to receive a retirement benefit allowance, the benefit is payable throughout the member's life, in which case the benefit is known as a "single life annuity." The member may alternatively elect at the time of retirement, or prior to retirement, to receive a lump-sum payment or the following actuarial equivalent value in a lesser allowance:

(1)

Single life annuity. This optional form provides a monthly annuity for the lifetime of the member. There are no death benefits provided.

(2)

Life annuity with certain period. This optional form provides a monthly annuity for the lifetime of the member. If his death occurs before the end of a specified certain period of five or 10 years, the balance of the annuity payments for the certain period will be paid to his beneficiary. The certain period must be named by the member before his retirement date and cannot be changed after such date. The member may change his beneficiary at any time.

(3)

Survivorship life annuity. This optional form provides a monthly annuity for the lifetime of the member. Upon his death, a percentage of 50% or 100% of such annuity will continue for the lifetime of his contingent annuitant. The survivorship percentage and contingent annuitant must be named by the member before his retirement date and cannot be changed after such date. If the contingent annuitant dies before the member's retirement date, this optional form is cancelled.

Should a member who has elected a single life annuity die before receiving, in annuity payments, the full amount of the total accumulated member's contribution deductions standing to his credit in the member account on the effective date of retirement, the balance shall be paid to the designated beneficiary.

§ 1-608 Management of fund.

[Ord. 632, 7/28/2005, Art. VIII]

It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 1-604, 1-605, 1-606 and 1-607, 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.

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.

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 actuary, who shall calculate the amount to be contributed to the fund by the Township with respect to each plan year in accordance with the assumptions most recently adopted by the Board for the purpose of such computations; provided, however, that the liability of the Township to make such contributions is subject to all of the conditions and limitations set forth elsewhere in this plan.

§ 1-609 Administration of plan.

[Ord. 632, 7/28/2005, Art. IX]

The plan shall be administered by the Board. The Board shall make and adopt rules and regulations for the efficient administration of the plan.

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 trustee, the actuary and any other professional whose services are employed pursuant to § 1-608, Subsection 2, of this plan.

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 or the trust agreement 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 and 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.

The Board shall serve without bond, except as may be otherwise required by law, and without compensation for its services as such.

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 judgements 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.

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.

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, and the Board shall advise the trustee of such of the foregoing facts as may be pertinent to the trustee's administration of the trust and shall give proper instructions to the trustee for the carrying out of the purposes of this plan.

The Board shall enact such rules and regulations for the conduct of its business and for the administration of the plan as it may consider desirable, provided the same shall not be in conflict with any of the provisions of the plan. All actions of the Board shall be taken at meetings at which at least three members shall be present, or by written resolution concurred in by not less three of its members. Written minutes shall be kept of the meetings and actions of the Board.

The 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.

§ 1-610 Township obligations and responsibilities.

[Ord. 632, 7/28/2005, Art. X]

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.

The Township assumes no obligation or responsibility with respect to the operation of the plan and does not guarantee the payment of the benefits therein provided for members of the plan. The Township shall have no liability with respect to the administration of the fund held by the trustee, 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.

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 judgement, its best interests so require, and such discontinuance shall be without regard to this plan.

§ 1-611 Termination or amendment of plan.

[Ord. 632, 7/28/2005, Art. XI]

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 of 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.

In the event of termination of this plan, the trustee, upon written instructions from 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 the following order of precedence:

To members and retired members in an amount equal to their respective contributions, with interest, reduced in the cases of retired members by any prior distributions made to them.

To provide benefits due retired members in the proportion that the pension earned by each such member bears to the total pensions earned for all such members.

The remaining assets, if any, to each of the remaining members in the proportion that his pension credits earned to the date of termination bears to the total pension credits so earned for all such remaining members.

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.

§ 1-612 Miscellaneous provisions.

[Ord. 632, 7/28/2005, Art. XII]

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 Section 414(p) of the Internal Revenue Code, and those other domestic relations orders permitted to be so treated by the Board under the provisions of the Retirement Equity Act of 1984. 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.

[Amended by Ord. 737, 1/19/2017]

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.

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.

Under no circumstances, 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 actuarial obligations to such member or member's beneficiaries have been met.

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 any person selected by the Board to disburse it, 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.

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.

Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.

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.

All ordinances or resolutions or portions thereof inconsistent herewith are hereby repealed.

Article B Defined Contribution Pension Plan

§ 1-621 Definitions.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

As used in this article, the following terms shall have the meanings indicated:

AFSCME EMPLOYEE

Any nonuniform AFSCME 1598 employee hired on or after January 1, 2013, in full-time employment whose customary employment by the Township is not less than 35 hours per week.

AFSCME/WTEO EMPLOYEE

Any nonuniform AFSCME 2289 employee hired on or after January 1, 2013, whose customary employment by the Township is not less than 35 hours per week.

AGE

The age attained by the employee at his or her last birthday.

ANNIVERSARY DATE

January 1 of each year after the effective date.

AT-WILL EMPLOYEE

Any nonuniform, nonbargaining personnel hired on or after January 1, 2012, whose customary employment by the Township is not less than 35 hours per week.

BOARD

The Board of Supervisors of Warminster Township, Bucks County, Pennsylvania.

COMPENSATION

All W-2 wages paid by the Township to the member during a plan year.

CUSTODIAL AGREEMENT

The contract between the Township and the custodian establishing the terms by which and under which the fund is held in-custody for the exclusive benefit of the plan participants and their beneficiaries, as the same now exists and as it may be amended.

EFFECTIVE DATE

January 1, 2018.

FORFEITURE

The nonvested portion of a member's account.

FUND

All assets held by the trustee under the trust agreement and related insurance and investment contracts relating to this plan.

INVESTMENTS

The list of investment menu options provided by the trustee to the members.

LATE RETIREMENT DATE

Any date later than normal retirement at which a member retires.

MEMBER

Any employee who has satisfied the eligibility requirements established in § 1-622 hereof.

MEMBER ACCOUNT

Each member's individual account maintained within the fund to custody the member's account balance.

NORMAL RETIREMENT DATE

The first day of the month coincident with or next following the date on which the member completes five years of service or on the date which the member attains the age of 62.

PAY PERIOD

The period of time at which an employee is compensated for his/her services to the Township.

PLAN

The defined contribution plan for the nonuniform employees of Warminster Township, as herein set forth and as the same may hereafter be amended.

PLAN YEAR

A period of 12 consecutive months commencing on January 1 and ending on the following December 31.

RECORDKEEPER

The firm that keeps participant level records of the participant's account balance, processes any change requests, and communicates to the participant information on their account.

RECORDKEEPING AGREEMENT

The contract between the Township and the recordkeeper establishing the terms by which and under which the fund is invested, distributed, accounted for and communicated to plan participants.

SERVICE

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/she 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 such member returns to service with the Township within six months after his/her 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 the period of peacetime shall not be included as service for the purpose of this plan.

TOWNSHIP

Warminster Township, Bucks County, Pennsylvania.

TRUSTEE

The Board of Supervisors of Warminster Township or any other agency or person appointed to the Board to serve in that capacity as set forth in the custodian agreement.

VESTED INTEREST

The nonforfeitable right to any immediate or deferred benefit in the amount which is equal to the sum of Subsections 1 and 2 below:

The value on that date of that portion of the participant's account that is attributable to and derived from a participant's own contributions, if any.

The value on that date of that portion of the participant's account that is attributable to and derived from employer contributions multiplied by his vesting percentage determined on the date applicable.

VESTING PERCENTAGE

The member's nonforfeitable interest to his account plus earnings thereon computed in accordance with the following schedule:

[Amended by Ord. No. 759, 11/21/2019]

AFSCME EMPLOYEE
Years of Service	Percent Vested
Less than 5 years	0%
5 or more years	100%

AFSCME/WTEO EMPLOYEE
Years of Service	Percent Vested
1 year	20%
2 years	40%
3 years	60%
4 years	80%
5 years	100%

AT-WILL EMPLOYEE
Years of Service	Percent Vested
1 year	20%
2 years	40%
3 years	60%
4 years	80%
5 years	100%

The Township Manager shall be 100% vested upon date of hire unless other otherwise stated in the employment agreement with the Township.

§ 1-622 Eligibility.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

All persons who are at-will employees, AFSCME employees, AFSCME/WTEO employees, and the Township Manager (as defined above by this plan) are eligible to participate in the plan.

Any person who becomes an employee after the effective date January 1, 2018, hereof shall become a member at the date of their full-time hire and shall vest according to the appropriate vesting percentage.

§ 1-623 Contributions.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

Township contributions:

The Township shall contribute, on behalf of each member, an amount equal to the fixed percentage of his/her compensation for that month's pay, 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 Part 6B is reflected in the schedule below.

AFSCME employee	5%
At-will employee	5%
AFSMCE/WTEO employee	5%

The Township Manager contribution shall be set forth in an approved employment agreement.

Should the Township, for any reason, fail to make a contribution as provided herein, then such deficiency shall be made up in subsequent years. The Township, at its own discretion, may contribute more than the fixed percentage. However, any additional contributions would be distributed on an equal basis.

Member contributions: Members shall not be required to contribute into this plan.

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 therefor received by such member from a pension or profit sharing plan meeting the requirements of Internal Revenue Code Section 401(a).

State aid: The portion of the payments made by the State Treasurer to the Township and designated by the Board to be allocated to the nonuniformed employee's pension fund from money received from taxes paid upon premiums by foreign causality insurance companies shall be used to reduce or eliminate the Township's contribution pursuant to Subsection 1 hereof and offset the payment of any administrative expenses.

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.

Forfeiture: Forfeiture will remain assets of the Trust and at the Township's discretion, be used to reduce or eliminate future Township contributions pursuant to Subsection 1 and/or to be reallocated to the member's account in the proportion that an individual member's account balance (excluding rollover account balances) bears to the total of all member's accounts.

Accounting and allocations:

The recordkeeper shall establish and maintain an account in the name of each member.

The Township shall provide the recordkeeper with all information required by the recordkeeper to make proper allocation of the Township's contribution. The recordkeeper shall allocate the contribution to each member's account daily based upon the direction of the member.

The recordkeeper shall calculate the value of the member's account daily and give access to the member to self-direct the assets of the member's account.

§ 1-624 Retirement benefits.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

Normal retirement: A member who attains their normal retirement date shall be considered fully vested. If a member retires on his/her normal retirement date he/she shall receive a distribution of the vested value of his/her member account.

Late retirement: A member may continue in the service of the Township after his/her normal retirement date, and in such event, shall retire on their 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 determined by § 1-621 hereof and shall receive a distribution of the vested value of his/her member account.

§ 1-625 Death benefits.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

Death prior to retirement: If a member dies prior to the commencement of pension benefits, his/her designated beneficiary shall be entitled to the vested interest of the member's account determined pursuant to § 1-621 hereof and valued as of the prior anniversary date. If no such beneficiary survives, the account will be paid to the member's estate.

Death after retirement: If a member dies after distribution has commenced, the remaining portion of such interest will continue to be distributed in accordance with the method of distribution elected pursuant to § 1-626 hereof.

§ 1-626 Method of distribution of benefits.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

Settlement options:

After a member terminates employment with the Township, they may select from the following settlement options:

(1)

Paid to the member as a lump sum benefit.

(2)

Rollover into an IRS qualified account.

(3)

Remain in the fund until a distribution method is selected.

Distribution selection shall be made in writing. In the event that the member is deceased, the designated beneficiary shall elect a settlement option as listed above.

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 50% joint and survivor annuity.

§ 1-627 Termination of employment.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

Distribution: As of a member's termination of employment, he/she shall receive a distribution of his/her entire vested interest.

Reemployment rights: If the terminated member is rehired by the Township and re-enrolls in the plan within 12 consecutive months of termination, he/she shall continue to participate in the plan as if such termination had not occurred.

§ 1-628 Management of fund.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 1-624, 1-625, 1-626 and 1-627, 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.

The trustee will provide investment options to the members. The member shall have the ability to self-direct their individual account investments from a list of predetermined investment options provided by the trustee. The trustee is not responsible for any investment earnings or losses.

§ 1-629 The Board.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 737, 1/19/2017; and by Ord. No. 746, 6/21/2018]

The plan shall be administered by the Board. The Board shall make and adopt rules and regulations for the efficient administration of the plan.

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 § 1-628, Subsection 2, of this plan.

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.

The Board shall serve without bond except as may be otherwise required by law and without compensation for its services as such.

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.

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.

The Board shall enact such rules and regulations for the conduct of its business and for the administration of the plan as it may consider desirable, provided the same shall not be in conflict with any of the provisions of the plan. All actions of the Board shall be taken at meetings at which at least four members shall be present, or by written resolution and any resolutions concurred in by not less than four of its members shall be the action of the entire Board. Written minutes shall be kept of the meetings and actions of the Board.

The Chief Administrative Officer and approved authorized signer(s), 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.

§ 1-630 Provisions relating to Township.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

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.

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 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. In addition, the Township shall not have or assume any liability for investment or other loss and/or tax consequences associated with the decision of members to utilize self-directed options and/or the selection of particular investment vehicles. Members will be advised to seek their own investment and/or tax advice from professionals regarding participation in the self-directed options available under the plan.

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.

§ 1-631 Termination or amendment of plan.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 746, 6/21/2018]

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 termination of 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.

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.

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.

§ 1-632 Miscellaneous provisions.

[Ord. No. 709, 7/19/2012; as amended by Ord. No. 737, 1/19/2017; and by Ord. No. 746, 6/21/2018]

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 members 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.

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.

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.

Under no circumstances, 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 obligations to such member or member's beneficiaries have been met.

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.

Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.

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.

All ordinances or resolutions or portions thereof inconsistent herewith are hereby repealed.