[HISTORY: Adopted by the Borough Council of the Borough of
Zelienople as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Police Department — See Ch. 62.
[Adopted 2-25-2002 by Ord. No. 745 (Ch. 1, Part 5B, of the
1995 Code)]
The following words and phrases as used herein shall have the
meanings set forth in this section, unless a different meaning is
plainly required by the context:
As of any given computation date, a participant's monthly normal retirement benefit determined in accordance with § 48-4B of this article, which amount shall be based upon the participant's credited service determined as of such computation date and which shall represent the monthly benefit which would be payable in the normal form as of the participant's attainment of normal retirement age, provided that the participant shall satisfy all requirements pursuant to the terms of the plan for entitlement to receive such benefit.
In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 48-4L of this article. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof.
The total amount contributed by any participant to this fund
or its predecessor by way of payroll deduction or otherwise, plus
interest credited at 3% per annum. Interest shall be credited annually
in the form of a compound annual interest rate from the first day
of the plan year following deposit to the first day of the month in
which the participant's employment terminates.
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the UP-1984 Mortality Table and 6% interest unless otherwise
specifically provided herein.
The person, partnership, association or corporation which
at any given time is serving as actuary, provided that such actuary
must be an approved actuary as defined in the Act.
A leave of absence granted in writing by the employer for
reasons including, but not limited to, accident, sickness, pregnancy,
temporary disability, education, training, jury duty or such other
reasons as may necessitate authorized leave from active employment.
Authorized leave of absence shall include a period of time for active
service with the armed forces of the United States of America, provided
that such participant shall return to employment within the time prescribed
by law following separation from such military service during which
the participant's reemployment rights are protected.
The person or entity designated by the participant to receive
such benefits as may be due hereunder upon the death of the participant.
In the event that a participant does not designate a beneficiary or
the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse, or if there is no surviving spouse,
the issue, per stripes, or if there is no surviving issue, the estate;
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.
The person designated by the Borough who has the primary
responsibility for the execution of the administrative affairs for
the plan.
The Internal Revenue Code of 1986, as amended.
The pension committee which may be appointed by the Council
to administer the terms of the plan.
The basic remuneration of the employee, whether salary or
hourly wages, paid by the employer to the employee for employment
excluding therefrom any extra or additional forms of remuneration
such as overtime, expense reimbursements, bonuses or other items of
extra income. Compensation shall also include fixed periodic amounts
paid for periods during which the participant is not actively employed
as a regular full-time employee, which amounts are paid directly by
the employer or through a program to which the employer has made contributions
on behalf of the employee, other than to this plan. Compensation shall
be limited on an annual basis for the purposes of this plan to the
amount specified pursuant to Code § 401(a)(17), as adjusted
under Code § 415(d).
The total period or periods of the participant's employment
with the employer whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment
or fail or refuse to pay required employee contributions for a period
of employment, such period of employment shall not be included in
aggregate service thereafter. At the commencement of the next period
of employment, a participant may repay to the fund the amount of a
distribution of accumulated contributions with interest and thereafter
receive credit for such aggregate service. For purposes of this definition
of "continuous employment," interest shall accrue as of the date the
employee receives a distribution of accumulated contributions and
shall be computed at the same rate and in the same manner as described
in "accumulated contributions" above.
Shall also include any period of qualified military service
as determined under the requirements of Chapter 43 of Title 38, United
States Code, provided that the participant returns to employment following
such period of qualified military service, and the participant makes
payment to the plan in an amount equal to the participant contributions
that would otherwise have been paid to the plan during such period
of qualified military service. The amount of participant contributions
shall be based upon an estimate of the compensation that would have
been paid to the participant during such period of qualified military
service as determined by the average compensation paid to the participant
during the 12 months immediately preceding the period of qualified
military service. The amount of participant contributions so calculated
must be paid into the plan before the end of the period that begins
on the date of reemployment and ends on the earlier of the date that
ends the period that has a duration of three times the period of qualified
military service or the date that is five years after the date of
reemployment.
The Borough Council of the Borough of Zelienople.
A participant who has completed at least 10 years of service, who has separated from employment for reasons other than retirement, death or disability, and who has elected to receive a vested retirement benefit pursuant to § 48-8B of this article to commence at a later date.
The date when a participant is determined by the plan administrator
to be incapacitated due to total and permanent disability or the date
when the participant's employment terminates due to such total and
permanent disability, if later.
The date on which the participant has completed 10 years
of service with the employer and has attained age 55.
The first day of the month coincident with or next following
the date on which a participant who has attained early retirement
age ceases employment and chooses to commence receipt of retirement
benefits prior to the normal retirement date.
Any individual employed by the employer on a regular, full-time
basis exclusive of any and all police officers of the employer's police
force.
The Borough of Zelienople, Butler County, Pennsylvania.
Any period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as an employee, including any period of authorized leave
of absence. Employment shall exclude any period of time during which
services are performed as an independent contractor on a contractual
or fee basis.
The average monthly compensation paid by the employer during
the final 60 months of employment prior to retirement or any other
severance. Compensation shall also include fixed periodic amounts
paid for periods during which the participant is not actively employed
as a regular full-time employee, which amounts are paid directly by
the employer or through a program to which the employer has made contributions
on behalf of the employee, other than to this plan.
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The first day of the month coincident with or next following
the date on which a participant shall retire from employment which
occurs after the normal retirement date.
The minimum obligation of the municipality as determined
pursuant to provisions of the Act.
The date on which the participant has attained age 65 and
completes 10 years of service.
The first day of the month coincident with or next following
the attainment of normal retirement age.
A written document prepared in the form specified by the
plan administrator and delivered as follows: if such notice or election
is to be provided by the employer or the plan administrator, it shall
be mailed in a properly addressed envelope, postage prepaid, to the
last known address of the person entitled thereto, on or before the
last day of the specified notice or election period; or, if such notice
or election is to be provided to the employer or the plan administrator,
it must be received by the recipient on or before the last day of
the specified notice or election period.
An employee who has met the eligibility requirements to participate in the plan as provided in § 48-2A of this article and who has not for any reason ceased to be a participant hereunder.
The pension fund administered under the terms of this plan
and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time,
and designated as the Borough of Zelienople Non-Police Pension Plan.
The committee or individual appointed by the Council for
the purpose of supervising and administering the provisions of the
plan. In the event that no such appointment is made, the plan administrator
shall be the Council.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
January 1, 2001, the date upon which this amendment and restatement
of the plan becomes effective.
A condition of physical or mental impairment due to which a participant, who has completed at least 10 years of service with the employer, is unable to perform the usual and customary duties of employment, which condition continues for at least six months, which is reasonably expected to continue to be permanent for the remainder of the participant's lifetime. For purposes of this definition of "total and permanent disability" and § 48-6 of this article, a condition shall not be treated as a total and permanent disability if such condition is a result of willfully self-inflicted injuries, chronic alcoholism or addiction to narcotics, the perpetration of any criminal activity or any injury or condition incurred while in the armed forces of any country.
The period of continuous employment with the employer, calculated
in whole years and completed months of continuous employment.
Each completed period of 12 months of continuous employment.
A.
Eligibility requirements. Each employee who is employed by the employer shall participate herein as of the day on which the employee completes an hour of service for the employer, provided that all prerequisites to participation under this plan shall have been fulfilled, including, but not limited to, completion of any enrollment or application forms as required by the plan administrator and authorization of payroll deductions for any employee contributions that may be required pursuant to § 48-3A.
[Amended 3-26-2018 by Ord. No. 859-18]
B.
Notification of plan administrator. The Council shall furnish the
plan administrator with written notification of the appointment of
any new full-time permanent employee who is eligible for participation
hereunder within 60 days of the date of such appointment.
C.
Designation of beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice which designates
the beneficiary or beneficiaries to the plan administrator at the
time participation commences. The participant's election of any such
beneficiary or beneficiaries may be rescinded or changed, without
the consent of the beneficiary or beneficiaries, at any time, provided
the participant provides the plan administrator with written notice
of the changed designation and such election is not contrary to applicable
law.
D.
Reemployment. Each person who shall have previously been an employee in employment and who is a participant hereunder and has not received a distribution of accumulated contributions shall be eligible to resume accumulation of credit for years of credited service immediately upon the date of reemployment with the employer if all other conditions precedent to participation, such as payment of employee contributions, are satisfied. Each person who shall have previously been an employee in employment and who shall have ceased to participate hereunder due to receipt of a distribution of accumulated contributions shall only be eligible to participate hereunder as a new employee in accord with Subsection A of this section and shall not receive any credit for such prior years of credited service unless such person shall repay to the fund the amount of such distribution with interest computed at the same rate and in the same manner as described in the definition of "accumulated contributions" above from the date of distribution to the date of repayment.
E.
Change in status. A participant who shall remain in the service of the employer but ceases to be eligible to participate hereunder shall not accrue any additional benefits until such participant again becomes eligible to participate in the plan. Such a participant shall immediately commence the accrual of additional benefits hereunder upon again becoming eligible to participate unless such person received a distribution of accumulated contributions, in which case the person shall be treated as a new employee in accord with Subsection A of this section and shall not receive any credit for prior years of credited service unless such person shall repay to the fund the amount of such distribution with interest computed at the same rate and in the same manner as described in the definition of "accumulated contributions" above from the date of distribution to the date of repayment.
A.
Employee contributions. Employees hired on or after January 1, 2018,
shall, as a requirement of participation, pay regular contributions
to the pension fund in an amount equal to 5.0% of the participant's
compensation. Employees hired prior to January 1, 2018, are not required
to contribute to the plan as a requirement of participation. Effective
as of May 1, 2010, mandatory employee contributions are designated
as "pick-up" contributions in accordance with Internal Revenue Code
§ 414(h)(2).
[Amended 4-26-2010 by Ord. No. 802-10; 3-26-2018 by Ord. No. 859-18]
B.
Employer contributions. The actuary, in accordance with the Act,
shall determine the minimum municipal obligation of the employer.
The employer shall pay into the pension fund, by annual appropriations
or otherwise, the contributions necessary to satisfy the minimum municipal
obligation.
C.
State aid. general municipal pension system state aid, or any other
amount of state aid received by the employer from the commonwealth
in accordance with the Act, may be deposited into the pension fund
governed by this plan and shall be used to reduce the amount of the
minimum municipal obligation of the employer.
D.
Gifts, grants, etc. The Council is authorized to take by gift, grant,
devise or otherwise any money or property, real or personal, for the
benefit of the plan and cause the same to be held as a part of the
pension fund. The care, management, investment and disposal of such
amounts shall be vested in the Council or its delegate, the plan administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.
E.
Employer reversion. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, including payment of any reasonable plan expenses. Notwithstanding the foregoing, any contributions made by the employer may be returned to the employer if the contribution was made due to a mistake and the contribution is returned within one year of the date on which the discovery of the mistaken payment of the contribution was made or reasonably should have been made or the plan is terminated, as provided in § 48-11.
[Amended 12-9-2002 by Ord. No. 751]
A.
Normal retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after attainment of normal
retirement age.
B.
Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection A of this section shall receive a benefit commencing on the normal retirement date paid monthly in an amount equal to 1.5% of the participant's final average monthly compensation multiplied by the participant's total years of credited service to a maximum of 30 years of credited service. In no event shall the participant's normal retirement benefit exceed 45% of the participant's final average monthly compensation.
C.
Late retirement. A participant may continue to work beyond the normal retirement date subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of Subsection A of this section continues to work beyond the normal retirement date, there shall be no retirement benefits paid until employment ceases and retirement begins. A participant who retires pursuant to this subsection shall be eligible to receive a benefit calculated in accordance with Subsection B of this section on the basis of final average monthly compensation and years of credited service as of such participant's actual retirement date, not to exceed 30 years of credited service.
D.
Early retirement. Each participant shall be entitled to an early
retirement benefit after retirement on or after attainment of early
retirement age.
E.
Early retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection D of this section may retire from employment and receive a benefit in an amount equal to the participant's accrued benefit at the date of actual retirement payable at normal retirement age. The participant's early retirement benefit shall be determined by actuarially reducing the accrued benefit to reflect that it will commence on the effective date of the participant's early retirement date. Such reduction for early commencement shall be in an amount equal to 0.556% for each month of early commencement of benefit payment prior to normal retirement age.
F.
Application for benefit. A participant must complete and execute
an application for benefit on a form and in the manner prescribed
by the plan administrator and deliver the application to the plan
administrator at least 30 days prior to the date on which benefit
payments are to commence. Notwithstanding anything contained herein
to the contrary, no retirement benefit payments or any other benefit
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 benefit.
G.
Nonduplication of benefit. A participant who shall be receiving a
monthly retirement benefit under this plan and who shall resume employment
as an employee shall have benefit payments suspended until the first
day of the month coincident with or next following the date such employment
shall cease. Such benefit payments shall, upon resumption, be adjusted
to reflect any change in final average monthly compensation and years
of credited service caused by such additional period of employment;
provided, however, that such adjustment shall not result in a decrease
in such participant's retirement benefit.
H.
Small amounts. If the plan administrator determines that the value
of a participant's accrued benefit is so small as to make monthly
pension payments administratively impractical, the plan administrator
may cause such payments to be made at such other periodic intervals
as are administratively practical, but no less frequently than annually,
or may make a single lump-sum payment equal to the commuted value
of such accrued benefit to the extent permitted under applicable law.
I.
Cessation of benefit payments. Any pension benefit payable hereunder
shall be payable through and including the later of the month in which
such participant's death occurs or the month in which any period certain
payments due on or after the participant's death have been paid. Any
survivor annuity payable on or after the participant's death in accordance
with the form of pension benefit elected shall be paid through the
month in which such surviving annuitant's death occurs.
J.
Limitation of liability. Nothing herein contained shall be deemed
to obligate the employer, the Council, the committee, the plan administrator
or any fiduciary to provide any pension or other benefit to any participant,
joint annuitant or beneficiary which cannot be provided from the assets
available in the pension fund, whether such benefits are in pay status
or otherwise payable under the terms of the plan. The Council retains
the right to amend or terminate this plan at any time, with or without
cause and whether or not such action directly or indirectly results
in the suspension, reduction or termination of any benefit payable
under the plan or in pay status, and without liability to any person
for any such action.
K.
Special provision for restated plans. The benefit amount of any participant
who may have retired prior to the restatement date shall not be in
any way altered by the provisions of this plan, except where otherwise
expressly provided herein, and shall continue to be determined on
the basis of the terms of the plan in effect on the day preceding
the restatement date.
L.
Defined benefit dollar limitation.
[Amended 4-26-2010 by Ord. No. 802-10]
(1)
Incorporation of Internal Revenue Code § 415 by reference.
Notwithstanding anything contained in this subsection to the contrary,
the limitations, adjustments and other requirements prescribed in
this subsection shall at all times comply with the provisions of Code
§ 415 and the regulations thereunder (as such apply to governmental
plans), the terms of which are specifically incorporated herein by
reference. Effective for limitation years beginning on and after July
1, 2007, the plan shall comply with the final regulations issued under
Code § 415.
(2)
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 amount specified in Code § 415(b)(1)(A), as adjusted pursuant to Code § 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this Subsection L shall be governed by the following conditions and definitions:
(a)
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 in accordance with applicable regulations
to determine the limitation contained herein;
(b)
In the case of a benefit which commences prior to the attainment
of age 62 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis in accordance with applicable regulations
to the amount determined pursuant to this section commencing at age
62; however, in the case of a qualified participant (a participant
with respect to whom a period of at least 15 years of service, as
a full-time employee of a police or fire department or as a member
of the armed forces of the United States, is taken into account in
determining the amount of benefit), the limitation contained herein
shall not apply;
(c)
In the case of a benefit which commences after attainment of
age 65 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis in accordance with applicable regulations
to the amount determined commencing at age 65;
(d)
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 who is not receiving a disability retirement benefit pursuant to § 48-6B or a survivor benefit pursuant to § 48-7 with fewer than 10 years of participation, the limitation expressed in this Subsection L(2)(d) 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;
(e)
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 § 415 and regulations thereunder as applicable
to government plans in general and this plan in particular;
(g)
For mandatory employee contributions, the rules set forth in
Treasury Regulation 1.415(b)-1(b)(2)(iii) shall apply; and
(h)
Effective for distributions with annuity starting dates beginning
on or after December 31, 2002, notwithstanding any other plan provisions
to the contrary, the applicable mortality table used solely for purposes
of adjusting any benefit or limitation under § 415(b)(2)(B),
(C), or (D) of the Internal Revenue Code as set forth in the applicable
maximum benefit limitations section of the plan is the applicable
mortality table under Code § 417(e)(3)(B).
M.
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 unless
the subject of a domestic relations order, mandated by a court of
competent jurisdiction, that clearly provides for proper distribution
of a portion of the pension benefit payments to an alternate payee
(former spouse of the participant), and does not require any benefit
to paid in excess of the available earned and accrued under the plan.
[Amended 4-26-2010 by Ord. No. 802-10]
N.
Incorporation of Code § 415 by reference. Notwithstanding anything contained in Subsection L to the contrary, the limitations, adjustments and other requirements prescribed in Subsection L shall at all times comply with the provisions of Code § 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference.
A.
Normal form. The normal form for payment of retirement benefits shall
be a monthly annuity for the life of the participant; provided, however,
that if the death of the retired participant shall occur after the
payments commence but prior to the date on which the total amount
paid to the participant exceeds the value of the participant's accumulated
contributions determined as of the retirement date, the beneficiary
shall be eligible to receive a distribution in an amount equal to
the participant's accumulated contributions as of the retirement date,
less the total amount paid to the participant. If the total amount
paid to the participant exceeds the value of the participant's accumulated
contributions determined as of the retirement date, there shall be
no other amounts due and payable upon the occurrence of the death
of the participant.
B.
Optional form. A participant may receive payment of retirement benefits
in an optional form which shall be the actuarial equivalent of the
normal form. The optional form of payment hereunder shall be as follows:
(1)
Joint and fifty-percent survivor annuity. This form shall be paid
as a reduced monthly payment to the participant for life, and thereafter
monthly payments shall be made in an amount equal to 50% of the amount
the participant was receiving to the beneficiary. If the beneficiary
predeceases the participant, then upon the occurrence of the death
of the participant no additional amounts shall be payable hereunder.
C.
Commencement of benefits. A participant may elect to commence receiving distribution of retirement benefits as of the early, normal or late retirement date, whichever is applicable, or may defer such payments to a date not later than the required date for commencement of benefits determined under Subsection D of this section.
D.
Required distributions.
(1)
Distribution prior to death.
(a)
Notwithstanding any other provision of this plan, the entire
benefit of any participant who becomes entitled to benefits prior
to death shall be distributed either:
[1]
Not later than the required beginning date.
[2]
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).
(b)
If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of benefits has begun in accordance with Subsection D(1)(a)[2] above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection D(1)(a)[2] as of the date of death.
(2)
If a participant who is entitled to benefits under this plan dies before distribution of the 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, if the surviving spouse dies before the distributions to such spouse begin, this Subsection D(2) shall be applied as if the surviving spouse were the employee.
(3)
For purposes of this Subsection D, the following definitions and procedures shall apply:
(a)
"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.
(b)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this plan according to its rules.
(c)
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).
(d)
For purposes of this Subsection D, "Required distributions," the life expectancy of an employee and/or the employee's spouse (other than in the case of a life annuity) may be redetermined, but not more frequently than annually.
(e)
General rules. The requirements of this § 48-5D will take precedence over any inconsistent provisions of the plan. All distributions required under this § 48-5D will be determined and made in accordance with § 401(a)(9) of the Internal Revenue Code and the Treasury regulations thereunder and the employer's good faith interpretation of such Code and regulations.
[Amended 4-26-2010 by Ord. No. 802-10]
E.
Change of benefit election. Any election permitted hereunder may
be revoked or a new election may be made within any applicable election
period on a form and in a manner prescribed by the plan administrator
and without the knowledge or consent of any applicable beneficiary.
F.
Personal right of participant. Each participant's right to receive
any benefits hereunder is personal and shall expire upon the death
of the participant. No heir, legatee, devisee, beneficiary, assignee
or other person claiming by or through a participant shall have any
interest in any benefits hereunder unless clearly and expressly so
provided by the terms of this plan. A participant's election, failure
to make an election, or revocation of an election hereunder shall
be final and binding on all persons.
G.
Direct rollovers.
[Amended 4-26-2010 by Ord. No. 802-10]
(1)
DIRECT ROLLOVER
This subsection applies to distributions made on or after December
31, 2001. Notwithstanding any provision of the plan to the contrary
that would otherwise limit a distributee's election under this subsection,
a distributee may elect, at the time and in the manner prescribed
by the plan administrator, to have any portion of an eligible rollover
distribution that is equal to at least $500 paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
For purposes of this subsection, the following definitions shall apply:
A payment by the plan to the eligible retirement plan specified
by the distributee.
(2)
Effective January 1, 2008, direct rollovers may be made to a Roth
IRA described in § 408A of the Internal Revenue Code to
the extent that the applicable requirements of Code § 408A
are satisfied with respect to any direct rollover to such Roth IRA.
(3)
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(a)
(b)
This subsection applies to distributions made on or after January
1, 2010. Notwithstanding any provision of the plan to the contrary
that would otherwise limit a nonspouse beneficiary's election under
this subsection, a nonspouse beneficiary may elect to have any portion
of a plan distribution (that is payable to such nonspouse beneficiary
due to a participant's death) paid in a direct trustee-to-trustee
transfer to an individual retirement account described in Code § 408(a)
or to an individual retirement annuity described in § 408(b)
(other than an endowment contract) that has been established for the
purposes of receiving the distribution on behalf of such nonspouse
beneficiary. For these purposes, a "nonspouse beneficiary" is an individual
who is a "designated beneficiary" [as defined by § 401(a)(9)(E)
of the Internal Revenue Code] of a participant and who is not the
surviving spouse of such participant.
Includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
§ 414(p), are distributees with regard to the interest of
the spouse or former spouse.
A qualified trust described in Code § 401(a), an
individual retirement account described in Code § 408(a),
an individual retirement annuity described in Code § 408(b),
an annuity plan described in Code § 403(a), an annuity contract
described in Code § 403(b), an eligible plan under § 457(b)
of the Code which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this plan.
Any distribution of all or any portion of the balance to the
credit of the distributee, except that an eligible rollover distribution
does not include; any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of 10 years or more;
any distribution to the extent such distribution is required under
Code § 401(a)(9); and the portion of any distribution that
is not includible in gross income (determined without regard to the
exclusion for net unrealized appreciation with respect to employer
securities).
For purposes of the direct rollover provisions in this section
of the plan, a portion of a distribution shall not fail to be an eligible
rollover distribution merely because the portion consists of after-tax
employee contributions that are not includible in gross income. However,
such portion may be paid only to an individual retirement account
or annuity described in § 408(a) or (b) of the Code, or
to a qualified defined contribution plan [effective for distributions
on or after January 1, 2007, any qualified trust or Code § 403(b)
plan] that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution
which is includible in gross income and the portion of such distribution
which is not so includible.
A.
Disability retirement. A participant who shall incur a total and
permanent disability before attaining normal retirement age shall
be entitled to a disability retirement benefit as of the disability
date.
B.
Disability retirement benefit. A participant who shall have completed
at least 10 years of service and who shall incur a total and permanent
disability shall be entitled to a disability retirement benefit which
shall be a monthly benefit equal to the participant's accrued benefit
determined as of the first day of the month immediately preceding
the last day on which the participant was actively employed by the
employer.
C.
Payment of disability benefits. Disability payments shall be made
monthly as of the first day of each month, commencing as of the disability
date and shall continue until the earliest of the death of the participant,
cessation of total and permanent disability or attainment of normal
retirement age (such a participant who shall attain normal retirement
age shall thereafter receive a normal retirement benefit).
D.
Verification of disability. The plan administrator shall in its sole
discretion determine whether a participant shall have incurred a total
and permanent disability. The plan administrator shall rely on the
report of a physician acceptable to the plan administrator. If the
plan administrator shall determine that a participant who is totally
and permanently disabled has recovered sufficiently to resume active
employment or if a participant refuses to undergo a medical examination
as directed by the plan administrator (such a medical examination
may not be required more frequently than once in any given twelve-month
period), the payment of disability retirement benefits shall cease.
E.
Cessation of disability.
(1)
A participant who is receiving payment of disability retirement benefits
under this plan must notify the plan administrator of any change which
may cause a cessation of entitlement to receipt of such benefits hereunder.
If a participant fails to provide immediate notice to the plan administrator
of any such change in status and continues to receive payment of benefits
hereunder to which the participant is not entitled, then the plan
may take whatever action is necessary to recover any amount of improperly
paid amounts, including legal action or offsetting such amounts against
any future payments of retirement or other benefits under the plan,
including the costs of such actions.
(2)
A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, shall not be entitled to any distribution of accumulated contributions pursuant to § 48-8E of this article unless the amount of accumulated contributions determined as of the disability date exceeds the total amount of disability benefits paid under the plan, and shall not be entitled to any other benefits under the plan on account of any aggregate service as of the disability date. If the amount of accumulated contributions determined as of the disability date exceeds the total amount of disability benefits paid to the participant, the participant shall be entitled to receive a distribution in an amount equal to the accumulated contributions determined as of the disability date minus the total amount of disability benefits paid under the plan.
A.
Death benefit. Except as hereinafter set forth, no benefit shall
be payable hereunder upon or by reason of the death of any participant.
B.
Death of participant prior to retirement. In the event that a participant
shall die prior to the receipt of any benefits under the plan, the
beneficiary shall be entitled to the amount of the accumulated contributions
of the participant as of the first day of the month during which the
death shall occur.
C.
Death of participant after retirement. In the event that a participant
shall die after the receipt of any benefit payments under the plan,
the beneficiary shall be entitled to a benefit only to the extent
and in the manner consistent with the provisions of the form of payment
of benefits selected by the participant pursuant to the provisions
of this plan.
D.
Veterans' survivor benefits. Notwithstanding anything else in the
plan to the contrary, in the case of the death of a participant who
dies on or after January 1, 2007, while performing qualified military
service [as defined in Code § 414(u)], the survivors of
the participant are entitled to any additional benefits under the
plan (if any) had the participant resumed and then terminated employment
on account of death.
[Added 4-26-2010 by Ord. No. 802-10]
A.
Rights of terminated employees. A participant who shall cease to
be an employee, except as otherwise hereinbefore provided, shall have
all interest and rights under this plan limited to those contained
in the following subsections of this section.
B.
Vested benefits upon termination. A participant who shall have completed 10 years of service with the employer and who ceases to be an employee of the employer for any reason other than death, retirement or total and permanent disability shall be entitled to a deferred vested benefit equal to the participant's accrued benefit as of the date when employment terminates. A participant shall be eligible to receive benefit payments upon attainment of what would have been the participant's normal retirement date or early retirement date, pursuant to § 48-4B and E, determined as of the date on which employment ceased.
C.
Forfeiture upon death. A participant who terminates employment with
the employer at a time when such participant is not vested in any
portion of the accrued benefit derived from employer contributions
shall cease to be a participant hereunder and shall not be entitled
to any benefits under the plan derived from employer contributions.
Payment of a participant's vested retirement benefit depends upon
the participant's continued survival to the date of actual retirement
on either an early retirement date or normal retirement date hereunder,
or such participant's attainment of his normal retirement age.
D.
Application of forfeitures. Amounts forfeited by any participant
may not be used to increase the benefits which other participants
would otherwise receive under the plan, but they shall be used only
to reduce the employer's contributions to the plan.
E.
Refund of accumulated contributions. A participant whose employment with the employer has been terminated for any reason other than retirement, death or total and permanent disability and who is not entitled to a deferred vested benefit pursuant to Subsection B of this section, or the participant's beneficiary if the participant died prior to receiving payment of his deferred vested benefit, shall be entitled to receive a refund of the participant's accumulated contributions payable in one cash lump-sum payment as soon as practicable following the participant's termination of employment, or in the case of payment to a beneficiary, as soon as practicable following the participant's death.
A.
Plan administrator. The Council may appoint a pension plan committee
or an individual to administer the provisions of the plan. The plan
administrator shall have the power and authority to do all acts and
to execute, acknowledge and deliver all instruments necessary to implement
and effectuate the purpose of this plan. The plan administrator may
delegate authority to act on its behalf to any persons it deems appropriate.
If the Council does not appoint a plan administrator, the Council
shall be the plan administrator.
B.
Pension committee. If a pension plan committee shall be appointed,
it shall consist of at least three members chosen by the Council.
Each member may resign by delivering written notice to the Council
and to other members of the committee. Vacancies on the committee
shall be filled by the Council; provided, however, that the remaining
members of the committee shall have full power to act pending the
filling of such vacancies.
C.
Authority and duties of the plan administrator.
(1)
The plan administrator shall have full power and authority to do
whatever shall, in its judgment, be reasonably necessary for the proper
administration and operation of the plan. The interpretation or construction
placed upon any term or provision of the plan by the plan administrator
or any action of the plan administrator taken in good faith shall,
upon the Board's review and approval thereof, be final and conclusive
upon all parties hereto, whether employees, participants or other
persons concerned. By way of specification and not limitation and
except as specifically limited hereafter, the plan administrator is
authorized:
(a)
To construe this plan.
(b)
To determine all questions affecting the eligibility of any
employee to participate herein.
(c)
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary.
(d)
To authorize any and all disbursements.
(e)
To prescribe any procedure to be followed by any participant
and/or other person in filing any application or election.
(f)
To prepare and distribute, in such manner as may be required
by law or as the plan administrator deems appropriate, information
explaining the plan.
(g)
To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan.
(h)
To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws.
(2)
The plan administrator shall have no power to add to, subtract from
or modify the terms of the plan or change or add to any benefits provided
by the plan, or to waive or fail to apply any requirements of eligibility
for benefits under the plan. Further, the plan administrator shall
have no power to adopt, amend or terminate the plan, to select or
appoint any trustee, or to determine or require any contributions
to the plan, said powers being exclusively reserved to the Council.
D.
Pension plan committee organization. The committee, if one is appointed,
may organize itself in any manner deemed appropriate to effectuate
its purposes hereunder, subject to the following:
(1)
The committee shall act by a majority of its members at the time
in office, and such action may be taken either by vote at a meeting
or in writing without a meeting.
(2)
The committee shall, from time to time, appoint a chairman, a secretary
who may, but need not, be a committee member and such other agents
as it may deem advisable.
(3)
The committee may, from time to time, authorize any one or more of
its members to execute any document or documents, including any application,
request, certificate, notice, consent, waiver or direction, and shall
notify the Council in writing of the name or names of the member or
members so authorized. In the absence of a designation, the chairman
shall be deemed to be so authorized. Any trustee or other fiduciary
appointed hereunder shall accept and be fully protected in relying
upon any document executed by the designated member or members (or
the chairman in the absence of a designation) as representing a valid
action by the committee until the committee shall file with such fiduciary
a written revocation of such designation.
(4)
The committee or its delegate shall maintain and keep such records
as are necessary for the efficient operation of the plan or as may
be required by any applicable law, regulation or ruling and shall
provide for the preparation and filing of such forms or reports as
may be required to be filed with any governmental agency or department
and with the participants and/or other persons entitled to benefits
under the plan.
E.
Plan administrator costs. The plan administrator shall serve without
compensation for services unless otherwise agreed by the Council in
writing. All reasonable expenses incident to the functioning of the
plan administrator, including, but not limited to, fees of accountants,
counsel, actuaries and other specialists, and other costs of administering
the plan, may be paid from the pension fund upon approval by the Council
to the extent permitted under applicable law and not otherwise paid
by the employer.
F.
Hold harmless. No member of the Council nor the plan administrator
nor the enrolled actuary nor any other person involved in the administration
of the plan shall be liable to any person on account of any act or
failure to act which is taken or omitted to be taken in good faith
in performing their respective duties under the terms of this plan.
To the extent permitted by law, the employer shall, and hereby does
agree to, indemnify and hold harmless each person and each successor
and each of any such individual's heirs, executors and administrators,
and the plan administrator's delegates and appointees (other than
any person, bank, firm or corporation which is independent of the
employer and which renders services to the plan for a fee) from any
and all liability and expenses, including counsel fees, reasonably
incurred in any action, suit or proceeding to which he is or may be
made a party by reason of being or having been a member, delegate
or appointee of the plan administrator, except in matters involving
criminal liability, intentional or willful misconduct. If the employer
purchases insurance to cover claims of a nature described above, then
there shall be no right of indemnification except to the extent of
any deductible amount under the insurance coverage or to the extent
of the amount the claims exceed the insured amount.
G.
Approval of benefits. The plan administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
H.
Appeal procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the plan ("claimant"), shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
(1)
Any claimant shall file a notice of the claim with the plan administrator
which shall fully describe the nature of the claim. The plan administrator
shall review the claim and make an initial determination approving
or denying the claim.
(2)
If the claim is denied in whole or in part, the plan administrator
shall, within 90 days (or such other period as may be established
by applicable law) from the time the application is received, mail
notice of such denial to the claimant. Such ninety-day period may
be extended by the plan administrator if special circumstances so
require for up to 90 additional days by the plan administrator's delivering
notice of such extension to the claimant within the first ninety-day
period. Any notice hereunder shall be written in a manner calculated
to be understood by the claimant and, if a notice of denial, shall
set forth: (i) the specific plan provisions on which the denial is
based; (ii) an explanation of additional material or information,
if any, necessary to perfect such claim and a statement of why such
material or information is necessary; and (iii) an explanation of
the review procedure.
(3)
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Council of the
initial determination. Such request for review must be made by notice
to the Council within 60 days of receipt of such notice of denial.
During such review, the claimant or a duly authorized representative
shall have the right to review any pertinent documents and to submit
any issues or comments in writing. The Council shall, within 60 days
after receipt of the notice requesting such review (or in special
circumstances, such as where the Council in its sole discretion holds
a hearing, within 120 days of receipt of such notice), submit its
decision in writing to the person or persons whose claim has been
denied. The decision shall be final, conclusive and binding on all
parties, shall be written in a manner calculated to be understood
by the claimant and shall contain specific references to the pertinent
plan provisions on which the decision is based.
(4)
Any notice of a claim questioning the amount of a benefit in pay
status shall be filed within 90 days following the date of the first
payment which would be adjusted if the claim is granted unless the
plan administrator allows a later filing for good cause shown.
(5)
A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
A.
Operation of the pension fund.
(1)
The Council is hereby authorized to hold and supervise the investment
of the assets of the pension fund, subject to the provisions of the
laws of the Commonwealth of Pennsylvania and of this plan and any
amendment thereto.
(2)
The pension fund shall be used to pay benefits as provided in the
plan and, to the extent not paid directly by the employer, to pay
the expenses of administering the plan pursuant to authorization by
the employer.
(3)
The employer intends the plan to be permanent and for the exclusive
benefit of its employees. It expects to make the contributions to
the pension fund required under the plan. The employer shall not be
liable in any manner for any insufficiency in the pension fund; benefits
are payable only from the pension fund, and only to the extent that
there are monies available therein.
(4)
The pension fund will consist of all funds held by the employer under
the plan, including contributions made pursuant to the provisions
hereof and the investments, reinvestments and proceeds thereof. The
pension fund shall be held, managed and administered pursuant to the
terms of the plan. Except as otherwise expressly provided in the plan,
the employer has exclusive authority and discretion to manage and
control the pension fund assets. The employer may, however, appoint
a trustee, custodian and/or investment manager, at its sole discretion.
B.
Powers and duties of employer. With respect to the pension fund,
the employer shall have the following powers, rights and duties, in
addition to those vested in it elsewhere in the plan or by law, unless
such duties are delegated:
(1)
To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), without liability for interest thereon.
(2)
To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time legal investments for fiduciaries
under the Pennsylvania Fiduciaries Investment Act, or as the same
may be subsequently modified or amended.
(3)
To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
(4)
To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)
To exercise all voting rights with respect to property held in the
fund and, in connection therewith, to grant proxies, discretionary
or otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this plan no matter where situated, including
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
(8)
In addition to the foregoing powers, the employer shall also have
all of the powers, rights and privileges conferred upon trustees by
the Pennsylvania Fiduciaries Investment Act, or as the same may be
subsequently modified or amended, and the power to do all acts, take
all proceedings and execute all rights and privileges, although not
specifically mentioned herein, as the employer may deem necessary
to administer the pension fund.
(9)
To maintain and invest the assets of this plan on a collective and
co-mingled basis with the assets of other pension plans maintained
by the employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
(10)
To invest the assets of the pension fund in any collective co-mingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder. In this connection,
the co-mingling of the assets of this plan with assets of other eligible
participating plans through such a medium is hereby specifically authorized.
Any assets of the plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
plan to the extent of the participation in such collective or co-mingled
trust fund by the plan.
(11)
To make any payment or distribution required or advisable to
carry out the provisions of the plan, provided that, if a trustee
is appointed by the employer, such trustee shall make such distribution
only at the direction of the employer.
(12)
To compromise, contest, arbitrate, enforce or abandon claims
and demands with respect to the plan.
(13)
To retain any funds or property subject to any dispute without
liability for the payment of interest thereon, and to decline to make
payment or delivery thereof until final adjudication is made by a
court of competent jurisdiction.
(14)
To pay, and to deduct from and charge against the pension fund,
any taxes which may be imposed thereon, whether with respect to the
income, property or transfer thereof, or upon or with respect to the
interest of any person therein, which the fund is required to pay;
to contest, in its discretion, the validity or amount of any tax,
assessment, claim or demand which may be levied or made against or
in respect of the pension fund, the income, property or transfer thereof,
or in any matter or thing connected therewith.
(15)
To appoint any persons or firms (including, but not limited
to, accountants, investment advisors, counsel, actuaries, physicians,
appraisers, consultants, professional plan administrators and other
specialists) or otherwise act to secure specialized advice or assistance,
as it deems necessary or desirable in connection with the management
of the fund; to the extent not prohibited by applicable law, the employer
shall be entitled to rely conclusively upon and shall be fully protected
in any action or omission taken by it in good faith reliance upon
the advice or opinion of such persons or firms, provided such persons
or firms were prudently chosen by the employer, taking into account
the interests of the participants and beneficiaries and with due regard
to the ability of the persons or firms to perform their assigned functions.
(16)
To retain the services of one or more persons or firms for the
management of (including the power to acquire and dispose of) all
or any part of the fund assets, provided that each of such persons
or firms is registered as an investment advisor under the Investment
Advisors Act of 1940; is a bank (as defined in that act); or is an
insurance company qualified to manage, acquire or dispose of pension
trust assets under the laws of more than one state; in such event,
the employer shall follow the directions of such investment manager
or managers with respect to the acquisition and disposition of fund
assets but shall not be liable for the acts or omissions of such investment
managers, nor shall it be under any obligation to review or otherwise
manage any fund assets which are subject to the management of such
investment manager or managers. If the employer appoints a trustee,
the trustee shall not be permitted to retain such an investment manager
except with the express written consent of the employer.
C.
Common investments. The employer shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account, but may invest contributions and any
profits or gains therefrom in common investments.
D.
Compensation and expenses of appointed trustee. If a trustee is appointed,
the trustee shall be entitled to such reasonable compensation as shall
from time to time be agreed upon by the employer and the trustee,
unless such compensation is prohibited by law. Such compensation,
and all expenses reasonably incurred by the trustee in carrying out
its functions, shall constitute a charge upon the employer or the
pension fund, which may be executed at any time after 30 days' written
notice to the employer. The employer shall be under no obligation
to pay such costs and expenses, and in the event of its failure to
do so, the trustee shall be entitled to pay the same or to reimburse
itself for the payment thereof from the pension fund.
E.
Periodic accounting. If a trustee is appointed, the pension fund
shall be evaluated annually or at more frequent intervals by the trustee
and a written accounting rendered as of each fiscal year end of the
fund, and as of the effective date of any removal or resignation of
the trustee, and such additional dates as requested by the employer,
showing the condition of the fund and all receipts, disbursements
and other transactions effected by the trustee during the period covered
by the accounting, based on fair market values prevailing as of such
date.
F.
Value of the pension fund. All determinations as to the value of
the assets of the pension fund and as to the amount of the liabilities
thereof shall be made by the employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the participants and beneficiaries and their estates. In making
any such determination, the employer or trustee shall be entitled
to seek and rely upon the opinion of or any information furnished
by brokers, appraisers and other experts and shall also be entitled
to rely upon reports as to sales and quotations, both on security
exchanges and otherwise as contained in newspapers and in financial
publications.
A.
Amendment of the plan. The employer may amend this plan at any time
or from time to time by an instrument in writing executed in the name
of the employer under its municipal seal by officers duly authorized
to execute such instrument and delivered to the Council; provided,
however:
(1)
No amendment shall deprive any participant or any beneficiary of
a deceased participant of any of the benefits to which each is entitled
under this plan with respect to contributions previously made.
B.
Termination of the plan. The employer shall have the power to terminate
this plan in its entirety at any time by an instrument in writing
executed in the name of the employer.
C.
Automatic termination of contributions. Subject to the provisions
of the applicable law governing financially distressed municipalities,
the liability of the employer to make contributions to the pension
fund shall automatically terminate upon liquidation or dissolution
of the employer, upon its adjudication as a bankrupt, or upon the
making of a general assignment for the benefit of its creditors.
D.
Distribution upon termination.
(1)
In the event of the termination of the plan, all amounts of vested
benefits accrued by the affected participants as of the date of such
termination, to the extent funded on such date, shall be nonforfeitable
hereunder. In the event of termination of the plan, the employer shall
direct either: (i) that the plan administrator continue to hold the
vested accrued benefits of participants in the pension fund in accordance
with the provisions of the plan (other than those provisions related
to forfeitures) without regard to such termination until all funds
have been distributed in accordance with the provisions; or (ii) that
the plan administrator immediately distribute to each participant
an amount equal to the vested accrued benefit to the date.
(2)
If there are insufficient assets in the pension fund to provide for
all vested accrued benefits as of the date of plan termination, priority
shall first be given to the distribution of any amounts attributable
to mandatory or voluntary employee contributions before assets are
applied to the distribution of any vested benefits attributable to
other sources hereunder.
(3)
All other assets attributable to the terminated plan shall be distributed
and disposed of in accordance with the provisions of applicable law
and the terms of any instrument adopted by the employer which effects
such termination.
E.
Residual assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the employer
insofar as such return does not contravene any provision of law, and
any remaining balance in excess of employer contributions shall be
returned to the Commonwealth of Pennsylvania.
F.
Exclusive benefit rule. In the event of the discontinuance and termination
of the plan as provided herein, the employer shall dispose of the
pension fund in accordance with the terms of the plan and applicable
law; at no time prior to the satisfaction of all liabilities under
the plan shall any part of the corpus or income of the pension fund,
after deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
A.
Actuarial valuations.
(1)
The plan's actuary shall perform an actuarial valuation at least
biennially unless the employer is applying or has applied for supplemental
state assistance pursuant to § 603 of the Act,[1] whereupon actuarial valuation reports shall be made annually.
Such biennial actuarial valuation report shall be made as of the beginning
of each plan year occurring in an odd-numbered calendar year, beginning
with the year 1985. Any such actuarial valuation shall be prepared
and certified by an approved actuary, as such term is defined in the
Act.
[1]
Editor's Note: See 53 P.S. § 895.603.
(2)
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by the Act or any other expense which
is permissible under the terms of the Act and which are directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the pension fund. Such allowable expenses
shall include, but not be limited to, the following:
(a)
Investment costs associated with obtaining authorized investments
and investment management fees.
(b)
Accounting expenses.
(c)
Premiums for insurance coverage on fund assets.
(d)
Reasonable and necessary counsel fees incurred for advice or
to defend the fund.
(e)
Legitimate travel and education expenses for plan officials;
provided, however, that the municipal officials of the employer, in
their fiduciary role, shall monitor the services provided to the plan
to ensure that the expenses are necessary, reasonable and benefit
the plan; and, further provided, that the plan administrator shall
document all such expenses item by item and, where necessary, hour
by hour.
B.
Duties of chief administrative officer. Such actuarial reports shall
be prepared and filed under the supervision of the chief administrative
officer. The chief administrative officer shall determine the financial
requirements of the plan on the basis of the most recent actuarial
report and shall determine the minimum municipal obligation of the
employer with respect to funding the plan for any given plan year.
The chief administrative officer shall submit the financial requirements
of the plan and the minimum municipal obligation of the employer to
the Council annually and shall certify the accuracy of such calculations
and their conformance with the Act.
C.
Benefit plan modifications. Prior to the adoption of any benefit
plan modification by the employer, the chief administrative officer
shall provide to the Council a cost estimate of the proposed benefit
plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Council the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum municipal obligation of the employer
with respect to the plan.
A.
Plan not a contract of employment. No employee of the employer nor
anyone else shall have any rights whatsoever against the employer
or the plan administrator as a result of this plan except those expressly
granted hereunder. Nothing herein shall be construed to give any employee
the right to remain in the employ of the employer.
B.
Masculine/feminine; singular/plural. For purposes of this plan, the
masculine shall be read for the feminine and the singular shall be
read for the plural, and vice versa, wherever the person or context
shall plainly so require.
C.
Construction of document. This plan may be executed and/or conformed
in any number of counterparts, each of which shall be deemed an original
and shall be construed and enforced according to the laws of the Commonwealth
of Pennsylvania, excepting such commonwealth's choice of law rules.
D.
Headings. The headings of articles are included solely for convenience
of reference, and if there be any conflict between such headings and
the text of the plan, the text shall control.
E.
Severability of provisions. In case any provisions of this plan shall
be held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this plan, and the plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted therein.
F.
Incapacity of participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of pension benefits hereunder, the plan administrator, upon
the receipt of satisfactory evidence that such participant is so incapacitated
and that another person or institution is maintaining him, may provide
for such payment of pension benefits hereunder to such person or institution
so maintaining him, and any such payments so made shall be deemed
for every purpose to have been made to such participant.
G.
Liability of officers of the plan administrator and/or employer.
Subject to the provisions of the Act and unless otherwise specifically
required by other applicable laws, no past, present or future officer
of the employer shall be personally liable to any participant, beneficiary
or other person under any provision of the plan.
H.
Assets of the fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
I.
Pension fund for sole benefit of participants. The income and principal
of the pension fund are for the sole use and benefit of the participants
covered hereunder and, to the extent permitted by law, shall be free,
clear and discharged from and are not to be in any way liable for
debts, contracts or agreements, now contracted or which may hereafter
be contracted, and from all claims and liabilities now or hereafter
incurred by any participant or beneficiary.
[Adopted 4-26-2010 by Ord. No. 803-10]
The following words and phrases as used in this article shall
have the meaning set forth in this section, unless a different meaning
is otherwise clearly required by the context:
As of any given date, the benefit determined under § 48-17B, calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one.
The accrued benefit shall include any service increment benefit determined pursuant to § 48-17D attributable to the participant's aggregate service as of the determination date. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation, provided under § 48-17F. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided pursuant to the terms of the plan prior to the actual payment thereof.
The total amount contributed by any participant to this fund
or its predecessor by way of payroll deduction or otherwise, plus
interest credited at 4% per annum. Interest shall be credited in the
form of a compound interest rate from the midpoint of the plan year
during which the contributions were paid to the first day of the month
preceding the date on which a participant's employment terminates.
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the UP-1984 Mortality Table and 6% interest unless otherwise
specifically provided herein.
The person, partnership, association or corporation which
at any given time is serving as actuary, provided that such actuary
must be an "approved actuary" as defined in the Act.
The total period or periods of the participant's employment
with the employer whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment
for which employee contributions are required, such period of employment
shall not be included in aggregate service thereafter unless, at the
commencement of the next period of employment, the participant repays
to the fund the amount of such distribution with interest. For purposes
of this definition, interest shall accrue as of the date the employee
receives a distribution of accumulated contributions and shall be
computed at the same rate and in the same manner as described in the
definition of "accumulated contributions." Aggregate service shall
be calculated in completed years and shall not include any period
of a voluntary leave of absence without pay.
The eligible children are registered at an accredited institution
of higher learning and are carrying a minimum course load of seven
credit hours per semester.
The person or entity designated by the participant to receive
a distribution of the participant's accumulated contributions should
the participant die prior to becoming entitled to a retirement benefit.
In the event that a participant does not designate a beneficiary or
the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse, or if there is no surviving spouse,
the issue, per stirpes, or if there is no surviving issue, the estate;
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.
The person designated by the Borough who has the primary
responsibility for the execution of the administrative affairs for
the plan.
The Internal Revenue Code of 1986, as amended.
The Police Pension Committee as determined pursuant to § 48-21B.
The Commonwealth of Pennsylvania.
[Amended 10-14-2013 by Ord. No. 831-13; 6-12-2017 by Ord. No. 854-17; 3-26-2018 by Ord. No. 860-18]
The total remuneration of the employee, whether salary or hourly
wages, including overtime pay, holiday pay, longevity pay and any
other form of compensation paid by the employer for police services
rendered, such as workers' compensation or Pennsylvania Heart and
Lung Act benefits. Compensation shall be limited on an annual basis
to the amount specified for government plans pursuant to Code § 401(a)(17),
as adjusted under Code § 415(d).
Effective January 1, 2005, compensation shall mean the total
remuneration of the employee, whether salary or hourly wages, including
overtime pay, holiday pay, longevity pay and any other form of compensation
paid by the employer for police services rendered, such as workers'
compensation or Pennsylvania Heart and Lung Act benefits, excluding
any stipends paid to the employee by the employer and any pay generated
from participation in the Butler County Joint Drug Task Force.
Compensation shall only include for participants hired after
January 1, 2005, base pay, shift pay, vacation pay, sick pay, sick
day buy-back pay, personal day pay, and workers' compensation or Pennsylvania
Heart and Lung Act benefits. Overtime pay and any pay generated from
participation in the Butler County Joint Drug Task Force shall not
be included in compensation for participants hired after January 1,
2005.
Compensation shall only include for participants hired on or
after January 1, 2017, base pay, shift pay, vacation pay, sick pay,
personal day pay, and workers' compensation or Pennsylvania Heart
and Lung Act benefits. Sick day buy-back shall be excluded. Overtime
pay and any pay generated from participation in the Butler County
Joint Drug Task Force shall not be included in compensation for participants
hired after January 1, 2017.
The Council of the Borough of Zelienople.
The date when a participant is determined by the plan administrator
to be incapacitated due to total and permanent disability, or the
date when the participant's employment terminates due to such total
and permanent disability, if later.
Shall be effective January 1, 2017, continuing through November
30, 2020, and shall mean the date on which the participant has completed
20 years of aggregate service and reached the age of 60.
[Added 6-12-2017 by Ord.
No. 854-17]
Any individual employed by the employer on a regular, full-time
basis as a police officer of the employer's police force.
Borough of Zelienople, Butler County, Pennsylvania.
For the purpose of determining aggregate service:
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer;
Any period of time for which an employee is paid, either directly
by the employer or through a program to which the employer has made
contributions on behalf of the employee, a fixed, periodic amount
in the nature of salary continuation payments for reasons other than
the performance of duties (such as vacation, holidays, sickness, entitlement
to benefits under workers' compensation or similar laws);
Any period during which an employee is entitled to disability
benefits under this plan, provided that the employee returns to employment
within three months of the date on which it is determined that the
employee is no longer totally and permanently disabled if such determination
occurs prior to the date a participant attains normal retirement age;
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that the
participant has been employed as a regular full-time member of the
employer's police force for a period of at least six months immediately
prior to the period of military service and the participant returns
to employment within six months following discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer; and
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, not to exceed a
total of five years, which occurred prior to the date on which a participant
first became employed as an employee of the employer, provided that
the participant shall purchase such credit and that such participant
is not entitled to receive, eligible to receive or is receiving retirement
benefits for such military service under a retirement system administered
and wholly or partially paid for by any other governmental agency,
except military retirement pay earned by a combination of active and
nonactive duty with a reserve or national guard component of the armed
forces which is payable upon the attainment of a specified age and
period of service under 10 U.S.C. Ch. 67 (relating to retired pay
for nonregular service). The purchase price for such service shall
be computed by multiplying the average normal cost rate for the plan
as certified by the Public Employee Retirement Commission and not
to exceed 10% times the participant's average annual rate of compensation
during the first three years of employment as an employee of the employer
and multiplying the result times the number of years and fractions
thereof being purchased. Interest shall be paid at a rate of 4.75%
compounded annually from the first date of employment as an employee
of the employer to the date of payment.
Any period of qualified military service as determined under
the requirements of Chapter 43 of Title 38, United States Code, provided
that the participant returns to employment following such period of
qualified military service and the participant makes payment to the
plan in an amount equal to the participant contributions that would
otherwise have been paid to the plan during such period of qualified
military service. The amount of participant contributions shall be
based upon an estimate of the compensation that would have been paid
to the participant during such period of qualified military service
as determined by the average compensation paid to the participant
during the 12 months immediately preceding the period of qualified
military service. The amount of participant contributions calculated
must be paid into the plan before the end of the period that begins
on the date of reemployment and ends on the earlier of the date that
ends the period that has a duration of three times the period of qualified
military service or the date that is five years after the date of
reemployment.
For the purpose of determining aggregate service, "employment"
shall not mean any period of disability for a participant who was
disabled as a result of a non-service-related disability.
[Amended 6-27-2011 by Ord. No. 812-11; 10-14-2013 by Ord. No. 831-13; 6-12-2017 by Ord. No. 854-17; 3-26-2018 by Ord. No. 860-18]
The average monthly "compensation," as defined in this section
and as set forth in this definition, earned by the participant and
paid by the employer during the final 48 months of active employment,
as "employment" is defined in this section. Active employment shall
include time spent at work, time spent away from work on paid leave,
and time spent receiving workers' compensation or Pennsylvania Heart
and Lung Act benefits, but shall not include periods of time spent
on non-work-related disability. Compensation shall include the regular
gross pay of the employee, whether salary or hourly wages, including,
overtime pay, holiday pay, longevity pay and any other types of additions
to compensation by the employer for police services rendered. For
years of service which have been completed, the employee's Internal
Revenue Service Form W-2 will be deemed to reflect the entire compensation
paid to that employee during the calendar year, excluding any stipends
paid to the employee by the employer and any pay generated from participation
in the Butler County Joint Drug Task Force. Compensation shall also
include fixed periodic payments made to the employee under the provisions
of workers' compensation laws or the Pennsylvania Heart and Lung Act.
To the extent that these fixed periodic payments made to the employee
are not reflected in the employee's Internal Revenue Service Form
W-2, said payments shall be added thereto for the purposes of computing
final monthly average salary.
For participants hired after January 1, 2005, final monthly
average salary shall mean the average monthly compensation earned
by the participant and paid by the employer during the final 48 months
of active employment. Compensation shall only include the "compensation"
of the participant as that term is defined in this section for participants
hired after January 1, 2005, or January 1, 2017, as applicable.
Final monthly average salary shall be calculated by taking into
account only those periods during which an employee receives "compensation",
as that term is defined in this definition. Therefore, for example,
the final monthly average salary for a participant who receives disability
benefits from this plan or who is voluntarily or involuntarily serving
in the United States Armed Forces during the final 48 months of aggregate
service shall be based on the period during which the employee last
received "compensation" (as defined in the preceding subsections)
from the employer.
Compensation used to determine final monthly average salary
shall be limited on an annual basis to the amount specified for government
plans in accordance with Code § 401(a)(17), as adjusted
under Code § 415(d).
Effective January 1, 2009, final monthly average salary shall
also include any amounts of salary continuation payments made by the
employer (if any) to an individual during periods in which the individual
does not perform services due to qualified military service (as defined
in § 414(u)(1) of the Internal Revenue Code) to the extent
the payments do not exceed the amounts the individual would have received
if the individual would have continued performing services.
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The first day of the month coincident with or next following
the date on which the participant retires from employment on which
the payment of retirement benefits pursuant to this plan shall commence.
The "final monthly average salary," as defined above; however,
the averaging period shall be determined by substituting "final 12
months" wherever "final 48 months" shall appear in the said definition.
The minimum obligation of the municipality as determined
pursuant to the provisions of the Act.
The date on which the participant has completed 25 years
of aggregate service with the employer and has attained age 50. For
participants hired on or after January 1, 2017, the normal retirement
age shall mean the date on which the participant has completed 25
years of aggregate service with the employer and has attained age
55.
[Amended 6-12-2017 by Ord. No. 854-17]
The first day of the month coincident with or next following
the date on which the participant retires from employment which is
subsequent to the date on which the participant attains normal retirement
age.
A written document prepared in the form specified by the
plan administrator. If such notice or election is to be provided by
the employer or the plan administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the plan administrator, it must be received by
the intended recipient on or before the last day of the specified
notice or election period.
An employee who has met the eligibility requirements to participate in the plan as provided in § 48-15 and who has not for any reason ceased to be a participant hereunder.
The police pension fund administered under the terms of this
plan and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time,
and designated as the "Borough of Zelienople Police Pension Plan."
The committee or the individual appointed for the purpose
of supervising and administering the provisions of the plan. In the
event that no such appointment is made, the plan administrator shall
be the Council.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
January 1, 2010, the date upon which this amendment and restatement
of the plan becomes effective, except as otherwise set forth herein.
The amount calculated pursuant to § 48-17D on behalf of a participant for each completed year of service in excess of 25 years, not to exceed $100.
A condition of physical or mental impairment due to which a participant is unable to perform the usual and customary duties of employment and which is reasonably expected to continue to be permanent for the remainder of the participant's lifetime. For purposes of this definition and § 48-18, a condition shall not be treated as a total and permanent disability unless such condition is a direct result of and occurs in the line of duty of employment. Therefore, an employee whose physical or mental impairment does not occur in the line of duty or which is the result of alcoholism, addiction to narcotics, perpetration of a felonious criminal activity or is willfully self-inflicted is not entitled to receive disability benefits under the plan.
A.
Eligibility requirements. Each employee who is employed as a regular,
full-time permanent member of the police department of the employer
shall participate herein as of the date on which such employee's employment
first commences or recommences provided all prerequisites to participation
under this plan shall have been fulfilled, including, but not limited
to, completion of all forms required by the plan administrator. Each
employee who was a participant in the plan on the day prior to the
restatement date shall continue to be a participant on and after the
restatement date subject to the terms and conditions of the plan as
set forth herein.
B.
Participation requirements. The Council shall furnish the plan administrator with written notification of the appointment of any new full-time permanent employee who is eligible for participation hereunder. Each participant hereunder shall be required to make contributions to the plan, as provided in § 48-16A hereof, and shall execute and complete any enrollment or application forms as required by the plan administrator.
C.
Designation of beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the plan administrator which designates a beneficiary
at the time participation commences. The participant's election of
any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time, provided the participant provides
the written notice of the changed designation to the plan administrator
in the manner prescribed by the plan administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
plan administrator shall be null and void and have no effect under
the terms of this plan.
D.
Change in status. A participant who remains in the service of the
employer but ceases to be an employee eligible for participation hereunder,
or ceases or fails to make any contributions which are required as
a condition of participation hereunder, shall have no further benefit
accruals occur until the individual again qualifies as a participant
hereunder eligible to resume such accrual of benefits.
E.
Recordkeeping. The employer shall furnish the plan administrator
with such information as will aid the plan administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this plan.
A.
Participant contributions.
[Amended 12-10-2012 by Ord. No. 826-12]
(1)
Each participant shall as a requirement of participation pay regular
contributions to the pension fund in an amount equal to 8% of the
participant's compensation. Each participant shall complete the necessary
forms to authorize the payment of participant contributions by way
of payroll deductions.
(2)
Effective as of May 1, 2010, participant contributions, although
designated as such, are "picked up" and paid by the employer in accordance
with the requirements of the Code.
B.
Reduction of participant contributions.
[Amended 12-10-2012 by Ord. No. 826-12]
(1)
Notwithstanding the preceding Subsection A, payments into the pension fund by participants may be reduced below the minimum percentages prescribed in Subsection A, or may be eliminated, and that if such payments are reduced or eliminated, contributions by the employer will not be required to keep the pension fund actuarially sound, the employer may, by ordinance or resolution, reduce or eliminate payments into the pension fund by participants.
(2)
Effective January 1, 2013, and continuing through and including December
31, 2013, the amount of participant contributions due shall be 6%
of compensation.
(3)
Effective January 1, 2014, and continuing through and including December
31, 2014, the amount of participant contributions due shall be 7%
of compensation.
(4)
Effective January 1, 2015, and continuing through and including December
31, 2015, the amount of participant contributions due shall be 7%
of compensation.
(5)
Effective January 1, 2016, and continuing through and including December
31, 2016, the amount of participant contributions due shall be 8%
of compensation.
(6)
The obligation to pay participant contributions pursuant to Act 600 in the amount specified therein and as provided in Subsection A herein shall resume effective as of January 1, 2017.
(7)
Effective January 1, 2017, and continuing through and including December
31, 2017, the amount of participant contributions due shall be 8%
of compensation. The obligation to pay participant contributions pursuant
to Act 600 in the amount specified therein shall resume effective
as of January 1, 2018.
[Added 12-23-2016 by Res.
No. 345-16]
(8)
Effective January 1, 2018, and continuing through and including December
31, 2018, the amount of participant contributions due shall be 8%
of compensation. The obligation to pay participant contributions pursuant
to Act 600 in the amount specified therein shall resume effective
as of January 1, 2019.
[Added 10-9-2017 by Res.
No. 372-17]
(9)
Effective
January 1, 2020, and continuing through and including December 31,
2020, the amount of participant contributions due shall be 8% of compensation.
The obligation to pay participant contributions pursuant to Act 600
in the amount specified therein shall resume effective as of January
1, 2020.
[Added 9-30-2019 by Res.
No. 415-19]
(10)
Effective
January 1, 2021, and continuing through and including December 31,
2021, the amount of participant contributions due shall be 8% of compensation.
[Added 10-12-2020 by Res.
No. 442-20]
(11)
Effective
January 1, 2022, and continuing through and including December 31,
2022, the amount of participant contributions due shall be 8% of compensation.
[Added 11-29-2021 by Res.
No. 461-21]
(12)
Effective
January 1, 2023, and continuing through and including December 31,
2023, the amount of participant contributions due shall be 8% of compensation.
[Added 10-10-2022 by Res.
No. 479-22]
C.
Employer contributions. The actuary, in accordance with the Act,
shall determine the minimum municipal obligation of the employer.
The employer shall pay into the pension fund, by annual appropriations
or otherwise, the contributions necessary to satisfy the minimum municipal
obligation. Notwithstanding the foregoing, nothing contained herein
shall preclude the employer from contributing an amount in excess
of the minimum municipal obligation.
D.
State aid. General Municipal Pension System State Aid, or any other
amount of state aid received by the employer in accordance with the
Act from the commonwealth may be deposited into the pension fund governed
by this plan in amounts determined by the Council, and shall be used
to reduce the amount of the minimum municipal obligation of the employer.
E.
Gifts. The Council is authorized to take by gift, grant, devise or
otherwise any money or property, real or personal, for the benefit
of the plan and cause the same to be held as a part of the pension
fund. The care, management, investment and disposal of such amounts
shall be vested in the Council or its delegate, the plan administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.
F.
Employer reversion. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, including payment of any reasonable plan expenses. Notwithstanding the foregoing, any contributions made by the employer may be returned to the employer if the contribution was made due to a mistake and the contribution is returned within one year of the date on which the discovery of the mistaken payment of the contribution was made or reasonably should have been made or the plan is terminated, as provided in § 48-23.
A.
Normal retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after the participant has
attained normal retirement age.
B.
Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to § 48-17A shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average salary as determined herein.
C.
Late retirement. A participant may continue in employment 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 § 48-17A continues in employment beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and the participant's retirement actually begins. The retirement benefit of a participant who continues employment after attainment of normal retirement age shall be calculated in accordance with § 48-17B on the basis of the final monthly average salary as of such participant's actual retirement and shall commence on the participant's late retirement date.
D.
Service increment benefit. Notwithstanding anything contained herein to the contrary, each participant who shall retire upon completion of the 26th year of aggregate service or thereafter, may be entitled to receive a monthly service increment benefit. Such service increment benefit shall only be available to a participant who shall retire on a retirement date after attainment of normal retirement age and whose aggregate service for purposes of this § 48-17D shall only include periods of time when the participant actively renders service in employment and shall not include any period of time during which the participant received a disability benefit under the terms of this plan or was not otherwise in active employment. Such service increment benefit shall be an amount equal to $100 and shall be paid monthly in addition to the amount of normal retirement benefit calculated pursuant to § 48-17B.
E.
Payment of benefits. Retirement benefit payments shall be payable
as of 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 nor any other payments
shall be due or payable on or before 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.
F.
Defined benefit dollar limitation.
(1)
Incorporation of Code § 415 by reference. Notwithstanding anything contained in this § 48-17F to the contrary, the limitations, adjustments, and other requirements prescribed in § 48-17F shall at all times comply with the provisions of Code § 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference. Effective for limitation years beginning on and after July 1, 2007, the plan shall comply with the final regulations issued under Code § 415.
(2)
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 amount specified in Code § 415(b)(1)(A) as adjusted pursuant to Code § 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this Subsection F shall be governed by the following conditions and definitions:
(a)
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 in accordance with applicable regulations
to determine the limitation contained herein;
(b)
In the case of a benefit which commences prior to the attainment
of age 62 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis in accordance with applicable regulations
to the amount determined pursuant to this section commencing at age
62; however, in the case of a qualified participant (a participant
with respect to whom a period of at least 15 years of service, as
a full-time employee of a police or fire department or as a member
of the armed forces of the United States is taken into account in
determining the amount of benefit), the limitation contained herein
shall not apply;
(c)
In the case of a benefit which commences after attainment of
age 65 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis in accordance with applicable regulations
to the amount determined commencing at age 65;
(d)
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 who is not receiving a disability retirement benefit pursuant to § 48-18B or a survivor benefit pursuant to § 48-19B or E, with fewer than 10 years of participation, the limitation expressed in this Subsection F(2)(d) 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;
(e)
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 § 415 and regulations thereunder as applicable
to government plans in general and this plan in particular;
(g)
For mandatory employee contributions, the rules set forth in
Treasury Regulation 1.415(b)-1(b)(2)(iii) shall apply; and
(h)
Effective for distributions with annuity starting dates beginning
on or after December 31, 2002, notwithstanding any other plan provisions
to the contrary, the applicable mortality table used solely for purposes
of adjusting any benefit or limitation under § 415(b)(2)(B),
(C) or (D) of the Internal Revenue Code as set forth in the applicable
maximum benefit limitations section of the plan is the applicable
mortality table under Code § 417(e)(3)(B).
G.
Required distributions.
(1)
Distribution prior to death.
(a)
Notwithstanding any other provision of this plan, the entire
benefit of any participant who becomes entitled to benefits prior
to death shall be distributed either:
[1]
Not later than the required beginning date; or
[2]
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).
(b)
If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of the benefits has begun in accordance with Subsection G(1)(a)[2] above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection G(1)(a)[2] as of the date of the death.
(2)
If a participant who is entitled to benefits under this plan dies
before distribution of the 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, if the surviving spouse dies
before the distributions to such spouse begin, this subparagraph shall
be applied as if the surviving spouse were the employee.
(3)
For purposes of this section, the following definitions and procedures
shall apply:
(a)
"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.
(b)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this plan according to its rules.
(c)
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).
(d)
For purposes of this section, the life expectancy of an employee
and/or the employee's spouse (other than in the case of a life annuity)
may be redetermined, but not more frequently than annually.
(4)
General rules. The requirements of this § 48-17G will take precedence over any inconsistent provisions of the plan. All distributions required under this § 48-17G will be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the Treasury regulations thereunder and the employer's good faith interpretation of such Code and regulations.
H.
Assignment. The pension benefit payments prescribed herein shall
not be subject to the 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
unless the subject of a domestic relations order, mandated by a court
of competent jurisdiction, that clearly provides for proper distribution
of a portion of the pension benefit payments to an alternate payee
(former spouse of the participant) and does not require any benefit
to paid in excess of the available earned and accrued under the plan.
I.
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. Any participant who shall have terminated employment and elected to receive a deferred retirement benefit under § 48-20C shall have such benefit determined based upon the provisions of the plan in effect as of the date of such termination of employment and shall not have the benefit altered by the provisions of this amended and restated plan.
J.
Limitation of liability. Nothing contained herein shall obligate
the employer, the plan administrator, any fiduciary or any agent or
representative of any of the foregoing to provide any retirement or
other benefit to any participant or beneficiary which cannot be provided
from the assets available in the pension fund, whether such benefits
are in pay status or otherwise payable under the terms of the plan.
The Council retains the right to amend or terminate this plan consistent
with applicable law at any time, with or without cause and whether
or not such action directly or indirectly results in the suspension,
reduction or termination of any benefit payable under the plan or
in pay status, and without liability to any person for any such action.
K.
Personal right of participant. The right to receive any benefits
under this plan is a personal right of the participant and shall expire
upon the death of the participant. No heir, legatee, devisee, beneficiary,
assignee or other person claiming by or through a participant shall
have any interest in any benefits hereunder unless clearly and expressly
so provided by the terms of this plan or the provisions of applicable
law. A participant's election, failure to make an election or revocation
of an election hereunder shall be final and binding on all persons.
L.
Nonduplication of benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under the plan
and who shall resume employment shall have benefit payments suspended
until the first day of the month coincident with or next following
the date such employment shall cease. Upon resumption of benefit payments,
such participant shall receive the greater of the amount of the suspended
benefit or the amount of benefit based upon final monthly average
salary and aggregate service as of the date that such period of resumed
employment shall cease.
M.
Direct rollovers.
(1)
Notwithstanding any provision of the plan to the contrary that would
otherwise limit a distributee's election under this section, a distributee
may elect, at the time and in the manner prescribed by the plan administrator,
to have any portion of an eligible rollover distribution that is equal
to at least $500 paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
(2)
This § 48-17M(2) shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, if a distribution in excess of $1,000 is made and the distributee does not make an election under § 48-17M(1) and does not elect to receive the distribution directly, the plan administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to § 48-21C(1)(i). The plan administrator shall notify the distributee in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
(3)
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(a)
(b)
For purposes of this section, the following definitions shall apply:
Is a payment by the plan to the eligible retirement plan
specified by the distributee or the plan administrator, if the distributee
does not make an election.
Includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
§ 414(p), are distributees with regard to the interest of
the spouse or former spouse.
Is a qualified trust described in Code § 401(a),
an individual retirement account described in Code § 408(a),
an individual retirement annuity described in Code § 408(b),
an annuity plan described in Code § 403(a), an annuity contract
described in Code § 403(b), an eligible deferred compensation
plan described in Code § 457(b), which is maintained by
a state, political subdivision of a state, and any agency or instrumentality
of a state or a political subdivision of a state and which agrees
to separately account for amounts transferred into such plan from
this plan.
Any distribution of all or any portion of the balance to the
credit of the distributee, except that an eligible rollover distribution
does not include: any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life or (life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of 10 years or more;
any distribution to the extent such distribution is required under
Code § 401(a)(9); and the portion of any distribution that
is not includible in gross income (determined without regard to the
exclusion for net unrealized appreciation with respect to employer
securities).
For purposes of the direct rollover provisions in this section
of the plan, a portion of the distribution shall not fail to be an
eligible rollover distribution merely because the portion consists
of after-tax employee contributions that are not includible in gross
income. However, such portion may only be paid to an individual retirement
account or annuity described in § 408(a) or (b) of the Code,
or to a qualified defined contribution plan [effective for distributions
on or after January 1, 2007, any qualified trust or Code § 403(b)
plan] that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution
which is includible in gross income and the portion which is not includible.
(4)
Effective January 1, 2008, direct rollovers may be made to a Roth
IRA described in § 408A of the Internal Revenue Code to
the extent that the applicable requirements of Code § 408A
are satisfied with respect to any direct rollover to such Roth IRA.
(5)
EARLY RETIREMENT
EARLY RETIREMENT BENEFIT
This section applies to distributions made on or after January 1,
2010. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a nonspouse beneficiary's election under this
section, a nonspouse beneficiary may elect to have any portion of
a plan distribution (that is payable to such nonspouse beneficiary
due to a participant's death) paid in a direct trustee-to-trustee
transfer to an individual retirement account described in Code § 408(a)
or to an individual retirement annuity described in § 408(b)
(other than an endowment contract) that has been established for the
purposes of receiving the distribution on behalf of such nonspouse
beneficiary. For these purposes, a "nonspouse beneficiary" is an individual
who is a designated beneficiary [as defined by § 401(a)(9)(E)
of the Internal Revenue Code] of a participant and who is not the
surviving spouse of such participant.
A participant shall be entitled to an early retirement benefit
after retirement on or after attainment of early retirement age. The
early retirement benefit will only be available to be elected from
January 1, 2017, through November 30, 2020.
[Added 6-12-2017 by Ord.
No. 854-17]
Each participant who shall become entitled to a benefit pursuant
to Subsection N and who shall make written application to commence
such early retirement benefit shall receive a benefit paid monthly
in an amount equal to the actuarial equivalent of the participant's
accrued benefit. The actuarial equivalent calculation shall be completed
using the applicable factors contained in the last actuarial valuation
report filed with the Public Employee Retirement Commission under
the Act and for the purpose of adjusting the amount of benefit to
recognize the early commencement of benefit payments prior to attainment
of normal retirement age.
[Added 6-12-2017 by Ord.
No. 854-17]
A.
Disability retirement. A participant who shall incur a total and
permanent disability before attaining normal retirement age shall
be entitled to a disability retirement benefit as of the disability
date.
B.
Disability retirement. A participant who shall be entitled to a disability retirement benefit under Subsection A shall receive a monthly benefit in an amount equal to 50% of the member's salary at the time the disability was incurred, as defined pursuant to § 48-14, determined as of the disability date, provided that any member who receives benefits for the same injuries under social security disability shall have the participant's disability benefits offset or reduced by the amount of such benefits.
C.
Payment of disability benefits.
(1)
Disability payments shall be made monthly, commencing as of the first
day of the month coincident with or immediately following the participant's
disability date and continuing until the earliest of the death of
the participant or cessation of total and permanent disability, (such
a participant who attains normal retirement age while disabled shall
continue to receive a disability retirement benefit until death).
(2)
A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, shall not be entitled to any distribution of accumulated contributions pursuant to § 48-20B to the extent that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date, and shall not be entitled to any other benefits under the plan on account of any aggregate service as of the disability date.
D.
Verification of disability. The plan administrator shall in its sole
discretion determine whether a participant shall have incurred a total
and permanent disability. The plan administrator shall rely on the
report of a physician acceptable to the plan administrator. If the
plan administrator shall determine that a participant who is totally
and permanently disabled has recovered sufficiently to resume active
employment as a police officer or if a participant refuses to undergo
a medical examination as directed by the plan administrator (such
a medical examination may not be required more frequently than once
in any given twelve-month period), the payment of disability retirement
benefits shall cease.
E.
Cessation of disability. A participant who is receiving payment of
disability retirement benefits under this plan must notify the plan
administrator of any change which may cause a cessation of entitlement
to receipt of such benefits hereunder. If a participant fails to provide
immediate notice to the plan administrator of any such change in status
and continues to receive payment of benefits hereunder to which the
participant is not entitled, then the plan may take whatever action
is necessary to recover any amount of improperly paid amounts, including
legal action or offsetting such amounts against any future payments
of retirement or other benefits under the plan, including the costs
of such actions.
A.
Death of participant. Upon the occurrence of the death of a participant, there shall be benefits payable in accord with the following subsections of this § 48-19.
B.
Survivor benefit. If a participant shall die after commencement of benefit payments or after participant is eligible to retire under § 48-17A, a survivor benefit shall be paid pursuant to § 48-19C in an amount equal to 50% of the benefit the participant was receiving or was eligible to receive as of the date of death.
C.
Payment of survivor benefit. The survivor benefit shall be paid to
the surviving spouse, if any, until the date of death of the surviving
spouse. Upon the death of the surviving spouse, the survivor benefit
shall be paid monthly in equal shares to the surviving dependent children
of deceased participant until attainment of age 18 or, if attending
college, under or attaining the age of 23.
D.
Death of participant prior to retirement. If a participant shall die before payment of a benefit has commenced and without eligibility for payment of a survivor benefit under § 48-19B, the beneficiary shall be eligible to receive a distribution in an amount equal to the accumulated contributions of the participant as of the date of death of the participant. If the participant has received disability retirement benefits hereunder, the amount of distribution of accumulated contributions shall be reduced by the amount of disability retirement benefits which have been paid hereunder.
E.
Veterans' survivor benefits. Notwithstanding anything else in the
plan to the contrary, in the case of the death of a participant who
dies on or after January 1, 2007, while performing qualified military
service [as defined in Code § 414(u)], the survivors of
the participant are entitled to any additional benefits under the
plan (if any) had the participant resumed and then terminated employment
on account of death.
A.
Rights of terminated employees. A participant who shall cease to
be an employee except as otherwise hereinbefore provided shall have
all interest and rights under this plan limited to those contained
in the following subsections of this section.
B.
Distribution of accumulated contributions. A participant whose employment
with the employer shall terminate for any reason other than death
or total and permanent disability prior to attainment of normal retirement
age shall be entitled to receive a distribution of accumulated contributions.
Upon receipt of such accumulated contributions, said participant and
beneficiary shall not be entitled to any further payments from the
plan.
C.
Deferred retirement benefit. A participant who shall have completed at least 12 years of aggregate service and whose employment shall terminate for any reason other than due to death or total and permanent disability prior to attainment of normal retirement age shall be entitled to elect, by filing a written notice of the intention to vest with the plan administrator within 90 days of the date employment ceases, to receive a deferred retirement benefit in lieu of a distribution of accumulated contributions under § 48-20B. Such a deferred retirement benefit shall be equal to the participant's accrued benefit as of the date employment terminates and shall commence after application pursuant to § 48-17E and not earlier than the date which would be the participant's normal retirement date under the plan if the participant remained in employment until such date.
A.
Plan administrator. The plan administrator shall be the committee
or the individual appointed by the Council who shall have the power
and authority to do all acts and to execute, acknowledge and deliver
all instruments necessary to implement and effectuate the purpose
of this plan. The plan administrator may delegate authority to act
on its behalf to any persons it deems appropriate. If a plan administrator
is not appointed, the Council shall be the plan administrator.
B.
Police pension committee. The Council may appoint a police pension
committee to administer the affairs of the plan. The Council shall
delegate such authority as it shall deem appropriate to the committee.
The committee, if one is appointed, shall consist of not more than
five members. Each member of the committee shall serve in that capacity
until death, resignation, removal or otherwise. Each member may resign
by delivering written notice to the Council and other members of the
committee. Vacancies on the committee shall be filled in the same
manner as the position was originally filled by the Council; provided,
however, that the remaining members of the committee shall have full
power to act pending the filling of such vacancies.
C.
Authority and duties of the plan administrator.
(1)
The plan administrator shall have full power and authority to do
whatever shall, in its judgment, be reasonably necessary for the proper
administration and operation of the plan. The interpretation or construction
placed upon any term or provision of the plan by the plan administrator
or any action of the plan administrator taken in good faith shall,
upon the Council's review and approval thereof, be final and conclusive
upon all parties hereto, whether employees, participants or other
persons concerned. By way of specification and not limitation and
except as specifically limited hereafter, the plan administrator is
authorized:
(a)
To construe this plan;
(b)
To determine all questions affecting the eligibility of any
employee to participate herein;
(c)
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary;
(d)
To authorize any and all disbursements;
(e)
To prescribe any procedure to be followed by any participant
or other person in filing any application or election;
(f)
To prepare and distribute, in such manner as may be required
by law or as the plan administrator deems appropriate, information
explaining the plan;
(g)
To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan;
(h)
To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws; and
(2)
The plan administrator shall have no power to add to, subtract from
or modify the terms of the plan, or change or add to any benefits
provided by the plan, or to waive or fail to apply any requirements
of eligibility for benefits under the plan. Further, the plan administrator
shall have no power to adopt, amend or terminate the plan, to select
or appoint any trustee or to determine or require any contributions
to the plan, said powers being exclusively reserved to the Council.
D.
Police pension committee organization. The committee may organize
itself in any manner deemed appropriate to effectuate its purposes
hereunder provided that it shall operate and act by a majority of
its members at the time in office either by vote at a meeting or in
writing without a meeting. The committee shall appoint a chairman,
a secretary who may, but need not be a committee member, and such
other agents as it may deem advisable. The committee may authorize
any one or more of its members to execute any document or documents,
including any application, request, certificate, notice, consent,
waiver or direction, and shall notify the Council, in writing, of
each such member so authorized; however, if no such member is so authorized,
the chairman shall be deemed to be so authorized. Any trustee or other
fiduciary appointed hereunder shall accept and be fully protected
in relying upon any document executed by the designated members (or
the chairman in the absence of a designation) as representing a valid
action by the committee until the committee shall file with such fiduciary
a written revocation of such designation. The committee shall meet
at least one time in each plan year, and it shall maintain and keep
such records as are necessary for the efficient operation of the plan
or as may be required by any applicable law, regulation or ruling,
and shall provide for the preparation and filing of such forms, reports
or documents as may be required to be filed with any governmental
agency or department and with the participants or other persons entitled
to benefits under the plan.
E.
Plan administrator costs. The plan administrator shall serve without
compensation for services unless otherwise agreed by the Council in
writing. All reasonable expenses incident to the functioning of the
plan administrator, including, but not limited to, fees of accountants,
counsel, actuaries and other specialists, and other costs of administering
the plan, may be paid from the pension fund upon approval by the Council
to the extent permitted under applicable law and not otherwise paid
by the employer.
F.
Hold harmless. No member of the Council, the plan administrator,
nor any other person involved in the administration of the plan shall
be liable to any person on account of any act or failure to act which
is taken or omitted to be taken in good faith in performing their
respective duties under the terms of this plan. To the extent permitted
by law, the employer shall, and hereby does agree to, indemnify and
hold harmless the plan administrator and each successor and each of
any such individual's heirs, executors and administrators, and the
delegates and appointees (other than any person, bank, firm or corporation
which is independent of the employer and which renders services to
the plan for a fee) from any and all liability and expenses, including
counsel fees, reasonably incurred in any action, suit or proceeding
to which he is or may be made a party by reason of being or having
been a member, delegate or appointee of the plan administrator, except
in matters involving criminal liability, intentional or willful misconduct.
If the employer purchases insurance to cover claims of a nature described
above, then there shall be no right of indemnification except to the
extent of any deductible amount under the insurance coverage or to
the extent of the amount the claims exceed the insured amount.
G.
Approval of benefits. The plan administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
H.
Appeal procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the plan ("claimant") shall first seek
a resolution of such claim under the procedure hereinafter set forth.
(1)
Any claimant shall file a notice of the claim with the plan administrator
which shall fully describe the nature of the claim. The plan administrator
shall review the claim and make an initial determination approving
or denying the claim.
(2)
If the claim is denied in whole or in part, the plan administrator
shall, within 90 days (or such other period as may be established
by applicable law) from the time the application is received, mail
notice of such denial to the claimant. Such ninety-day period may
be extended by the plan administrator if special circumstances so
require for up to 90 additional days by the plan administrator's delivering
notice of such extension to the claimant within the first ninety-day
period. Any notice hereunder shall be written in a manner calculated
to be understood by the claimant and, if a notice of denial, shall
set forth:
(3)
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Council of the
initial determination. Such request for review must be made by notice
to the Council within 60 days of receipt of such notice of denial.
During such review, the claimant or a duly authorized representative
shall have the right to review any pertinent documents and to submit
any issues or comments in writing. The Council shall, within 60 days
after receipt of the notice requesting such review (or in special
circumstances, such as where the Council in its sole discretion holds
a hearing, within 120 days of receipt of such notice), submit its
decision in writing to the person or persons whose claim has been
denied. The decision shall be final, conclusive and binding on all
parties, shall be written in a manner calculated to be understood
by the claimant and shall contain specific references to the pertinent
plan provisions on which the decision is based.
(4)
Any notice of a claim questioning the amount of a benefit in pay
status shall be filed within 90 days following the date of the first
payment which would be adjusted if the claim is granted unless the
plan administrator allows a later filing for good cause shown.
(5)
A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
(6)
Nothing contained herein is intended to abridge any right of a claimant to appeal any final decision hereunder to a court of competent jurisdiction under 2 Pa.C.S.A. § 752. No decision hereunder is a final decision from which such an appeal may be taken until the entire appeal procedure of this § 48-21H of the plan has been exhausted.
A.
Operation of the pension fund.
(1)
The Council is hereby authorized to hold and supervise the investment
of the assets of the pension fund, subject to the provisions of the
laws of the commonwealth and of this plan and any amendment thereto.
(2)
The pension fund shall be used to pay benefits as provided in the
plan and, to the extent not paid directly by the employer, to pay
the expenses of administering the plan pursuant to authorization by
the employer.
(3)
The employer intends the plan to be permanent and for the exclusive
benefit of its employees. It expects to make the contributions to
the pension fund required under the plan. The employer shall not be
liable in any manner for any insufficiency in the pension fund; benefits
are payable only from the pension fund, and only to the extent that
there are monies available therein. The pension fund will consist
of all funds held by the employer under the plan, including contributions
made pursuant to the provisions hereof and the investments, reinvestments
and proceeds thereof. The pension fund shall be held, managed and
administered pursuant to the terms of the plan. Except as otherwise
expressly provided in the plan, the employer has exclusive authority
and discretion to manage and control the pension fund assets. The
employer may, however, appoint a trustee, custodian or investment
manager, at its sole discretion.
B.
Powers and duties of employer. With respect to the pension fund,
the employer shall have the following powers, rights and duties, in
addition to those vested in it elsewhere in the plan or by law, unless
such duties are delegated:
(1)
To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), without liability for interest thereon.
(2)
To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time legal investments for fiduciaries
under the Pennsylvania Fiduciaries Investment Act, or as the same
may be subsequently modified or amended.
(3)
To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
(4)
To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)
To exercise all voting rights with respect to property held in the
fund and, in connection therewith, to grant proxies, discretionary
or otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this plan, no matter where situated, including
in those cases where a bank has been appointed to serve as trustee
hereunder the savings department of its own commercial bank.
(8)
In addition to the foregoing powers, the employer shall also have
all of the powers, rights and privileges conferred upon trustees by
the Pennsylvania Fiduciaries Investment Act, or as the same may be
subsequently modified or amended, and the power to do all acts, take
all proceedings and execute all rights and privileges, although not
specifically mentioned herein, as the employer may deem necessary
to administer the pension fund.
(9)
To maintain and invest the assets of this plan on a collective and
co-mingled basis with the assets of other pension plans maintained
by the employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
(10)
To invest the assets of the pension fund in any collective co-mingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder. In this connection,
the co-mingling of the assets of this plan with assets of other eligible
participating plans through such a medium is hereby specifically authorized.
Any assets of the plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
plan to the extent of the participation in such collective or co-mingled
trust fund by the Plan.
(11)
To make any payment or distribution required or advisable to
carry out the provisions of the plan, provided that, if a trustee
is appointed by the employer, such trustee shall make such distribution
only at the direction of the employer.
(12)
To compromise, contest; arbitrate, enforce or abandon claims
and demands with respect to the plan.
(13)
To retain any funds or property subject to any dispute without
liability for the payment of interest thereon, and to decline to make
payment or delivery thereof until final adjudication is made by a
court of competent jurisdiction.
(14)
To pay and to deduct from and charge against the pension fund
any taxes which may be imposed thereon, whether with respect to the
income, property or transfer thereof, or upon or with respect to the
interest of any person therein, which the fund is required to pay;
to contest, in its discretion, the validity or amount of any tax,
assessment, claim or demand which may be levied or made against or
in respect of the pension fund, the income, property or transfer thereof,
or in any matter or thing connected therewith.
(15)
To appoint any persons or firms (including, but not limited
to, accountants, investment advisors, counsel, actuaries, physicians,
appraisers, consultants professional plan administrators and other
specialists) or otherwise act to secure specialized advice or assistance,
as it deems necessary or desirable in connection with the management
of the fund; to the extent not prohibited by applicable law, the employer
shall be entitled to rely conclusively upon and shall be fully protected
in any action or omission taken by it in good faith reliance upon
the advice or opinion of such persons or firms, provided such persons
or firms were prudently chosen by the employer, taking into account
the interests of the participants and beneficiaries and with due regard
to the ability of the persons or firms to perform their assigned functions.
(16)
To retain the services of one or more persons or firms for the
management of (including the power to acquire and dispose of) all
or any part of the fund assets, provided that each of such persons
or firms is registered as an investment advisor under the Investment
Advisors Act of 1940, is a bank (as defined in that Act), or is an
insurance company qualified to manage, acquire or dispose of pension
trust assets under the laws of more than one state; in such event,
the employer shall follow the directions of such investment manager
or managers with respect to the acquisition and disposition of fund
assets, but shall not be liable for the acts or omissions of such
investment manager or managers, nor shall it be under any obligation
to review or otherwise manage any fund assets which are subject to
the management of such investment manager or managers. If the employer
appoints a trustee, the trustee shall not be permitted to retain such
an investment manager except with the express written consent of the
employer.
C.
Common investments. The employer shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account but may invest contributions and any
profits or gains therefrom in common investments.
D.
Compensation and expenses of appointed trustee.
(1)
If a trustee is appointed, the trustee shall be entitled to such
reasonable compensation as shall from time to time be agreed upon
by the employer and the trustee, unless such compensation is prohibited
by law.
(2)
Such compensation, and all expenses reasonably incurred by the trustee
in carrying out its functions, shall constitute a charge upon the
employer or the pension fund which may be executed at any time after
30 days' written notice to the employer. The employer shall be under
no obligation to pay such costs and expenses, and in the event of
its failure to do so, the trustee shall be entitled to pay the same
or to be reimbursed for the payment thereof from the pension fund.
E.
Periodic accounting. If a trustee is appointed, the pension fund
shall be evaluated annually or at more frequent intervals by the trustee
and a written accounting rendered as of each fiscal year end of the
fund and as of the effective date of any removal or resignation of
the trustee and such additional dates as requested by the employer,
showing the condition of the fund and all receipts, disbursements
and other transactions effected by the trustee during the period covered
by the accounting, based on fair market values prevailing as of such
date.
F.
Value of the pension fund. All determinations as to the value of
the assets of the pension fund and as to the amount of the liabilities
thereof shall be made by the employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the participants and beneficiaries and their estates. In making
any such determination, the employer or trustee shall be entitled
to seek and rely upon the opinion of or any information furnished
by brokers, appraisers and other experts and shall also be entitled
to rely upon reports as to sales and quotations, both on security
exchanges and otherwise as contained in newspapers and in financial
publications.
A.
Amendment of the plan. The employer may amend this plan at any time
or from time to time by an instrument in writing executed in the name
of the employer under its municipal seal by officers duly authorized
to execute such instrument and delivered to the Council; provided,
however:
(1)
That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which each is
entitled under this plan with respect to contributions previously
made;
B.
Termination of the plan. The employer shall have the power to terminate
this plan in its entirety at any time by an instrument in writing
executed in the name of the employer.
C.
Automatic termination of contributions. Subject to the provisions
of the act governing financially distressed municipalities, the liability
of the employer to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
D.
Distribution upon termination.
(1)
In the event of the termination of the plan, all amounts of vested
benefits accrued by the affected participants as of the date of such
termination, to the extent funded on such date, shall be nonforfeitable
hereunder. In the event of termination of the plan, the employer shall
direct either:
(a)
That the plan administrator continue to hold the vested accrued
benefits of participants in the pension fund in accordance with the
provisions of the plan (other than those provisions related to forfeitures)
without regard to such termination until all funds have been distributed
in accordance with the provisions; or
(b)
That the plan administrator immediately distribute to each participant
an amount equal to the vested accrued benefit to the date.
(2)
If there are insufficient assets in the pension fund to provide for
all vested accrued benefits as of the date of plan termination, priority
shall first be given to the distribution of any amounts attributable
to mandatory or voluntary employee contributions before assets are
applied to the distribution of any vested benefits attributable to
other sources hereunder.
(3)
All other assets attributable to the terminated plan shall be distributed
and disposed of in accordance with the provisions of applicable law
and the terms of any instrument adopted by the employer which effects
such termination.
E.
Residual assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the employer
insofar as such return does not contravene any provision of law, and
any remaining balance, in excess of employer contributions, shall
be returned to the commonwealth.
F.
Exclusive benefit rule. In the event of the discontinuance and termination
of the plan as provided herein, the employer shall dispose of the
pension fund in accordance with the terms of the plan and applicable
law; at no time prior to the satisfaction of all liabilities under
the plan shall any part of the corpus or income of the pension fund,
after deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
A.
Actuarial valuations.
(1)
The plan's actuary shall perform an actuarial valuation at least
biennially unless the employer is applying or has applied for supplemental
state assistance pursuant to Section 603 of the Act,[1] whereupon actuarial valuation reports shall be made annually.
[1]
Editor's Note: See the Municipal Pension Plan Funding Standard
and Recovery Act of 1984, 53 P.S. § 895.603.
(2)
Such biennial actuarial valuation report shall be made as of the
beginning of each plan year occurring in an odd-numbered calendar
year beginning with the year 1985.
(3)
Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in the Act.
(4)
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by the Act or any other expense which
is permissible under the terms of the Act and which are directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the pension fund. Such allowable expenses
shall include but not be limited to the following:
(a)
Investment costs associated with obtaining authorized investments
and investment management fees;
(b)
Accounting expenses;
(c)
Premiums for insurance coverage on fund assets;
(d)
Reasonable and necessary counsel fees incurred for advice or
to defend the fund; and
(e)
Legitimate travel and education expenses for plan officials;
provided, however, that the municipal officials of the employer in
their fiduciary role shall monitor the services provided to the plan
to ensure that the expenses are necessary, reasonable and benefit
the plan; and further provided, that the plan administrator shall
document all such expenses item by item and, where necessary, hour
by hour.
B.
Duties of chief administrative officer.
(1)
Such actuarial reports shall be prepared and filed under the supervision
of the chief administrative officer.
(2)
The chief administrative officer of the plan shall determine the
financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum municipal obligation
of the employer with respect to funding the plan for any given plan
year. The chief administrative officer shall submit the financial
requirements of the plan and the minimum municipal obligation of the
employer to the Council annually and shall certify the accuracy of
such calculations and their conformance with the Act.
C.
Benefit plan modifications. Prior to the adoption of any benefit
plan modification by the employer, the chief administrative officer
of the plan shall provide to the Council a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Council the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum municipal obligation of the employer
with respect to the plan.
A.
Employment rights. No employee of the employer nor anyone else shall
have any rights whatsoever against the employer or the plan administrator
as a result of this plan except those expressly granted hereunder.
Participation in this plan shall not give any right to any employee
to be retained in the employ of the employer, nor shall it interfere
with the right of the employer to discharge any employee and to deal
with such employee without regard to the effect such treatment might
have upon participation in this plan.
B.
Meaning of certain words. For purposes of this plan, the masculine
gender shall include the feminine gender and the singular shall include
the plural, and vice versa, in all cases wherever the person or context
shall plainly so require. Headings of sections and subsections are
inserted only for convenience of reference and are not to be considered
in the construction of the plan.
C.
Information to be furnished by the employer. The employer shall furnish
to the plan administrator (and, where applicable, the trustee) information
in the employer's possession as the plan administrator and the trustee
shall require from time to time to perform their duties under the
plan.
D.
Severability of provisions. Should any provisions of this plan be
held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this plan, and the plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted herein.
E.
Incapacity of participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of pension benefits hereunder, the plan administrator, upon
the receipt of satisfactory evidence that such participant is so incapacitated
and that another person or institution is maintaining the participant
and that no guardian or committee has been appointed for the participant,
may provide for such payment of pension benefits hereunder to such
person or institution so maintaining the participant, and any such
payments so made shall be deemed for every purpose to have been made
to such participant.
F.
Pension fund for sole benefit of participants. The income and principal
of the pension fund are for the sole use and benefit of the participants
covered hereunder and, to the extent permitted by law, shall be free,
clear and discharged from and are not to be in any way liable for
debts, contracts or agreements, now contracted or which may hereafter
be contracted, and from all claims and liabilities now or hereafter
incurred by any participant or beneficiary.
G.
Benefits for a deceased participant. If any benefit shall be payable
under the plan to or on behalf of a participant who has died, if the
plan provides that the payment of such benefits shall be made to the
participant's estate, and if no administration of such participant's
estate is pending in the court of proper jurisdiction, then the plan
administrator, at its sole option, may pay such benefits to the surviving
spouse of such deceased participant, or if there is no surviving spouse,
to such participant's then living issue, per stirpes; provided, however,
that nothing contained herein shall prevent the plan administrator
from insisting upon the commencement of estate administration proceedings
and the delivery of any such benefits to a duly appointed executor
or administrator.
H.
Assets of the fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
I.
Personal liability. Subject to the provisions of the Act and unless
otherwise specifically required by other applicable laws, no past,
present or future officer or agent of the employer or plan administrator
shall be personally liable to any participant, beneficiary or other
person under any provision of the plan.
J.
Construction of document. This plan may be executed and/or confirmed
in any number of counterparts, each of which shall be deemed an original,
and shall be construed and enforced according to the laws of the commonwealth,
excepting such commonwealth's choice of law rules.
A.
DROP
DROP PARTICIPANT
DROP PARTICIPANT ACCOUNT
NORMAL RETIREMENT BENEFIT
Definitions.
The following words and phrases, when used in this section, shall
have the meanings given to them in this subsection only, unless the
context clearly indicates otherwise:
A deferred retirement option plan established as an optional
form of benefit under the plan and being operated by the Borough of
Zelienople.
The separate DROP participant account established by the DROP participant under Subsection E(2).
The retirement benefit payable to a participant of a defined
benefit pension plan at the point in time when the participant satisfies
the age and service requirements for full, unreduced retirement benefits.
B.
Eligibility
and participation.
(1)
Eligibility of employee to participate in DROP.
(a)
An employee who is eligible for a Normal Retirement Benefit
under the pension Plan or will be eligible for a Normal Retirement
Benefit under the pension Plan prior to participation in the DROP
is eligible to participate in the DROP by filing a written application
with the retirement plan administrator at least 30 days before the
employee's effective date of retirement.
(b)
For purposes of determining eligibility pursuant to this Subsection B(1), only participants who have satisfied the above criteria (by accruing the age and service requirements for normal retirement benefits) as of December 31, 2012, shall be eligible to participate in the DROP plan, which eligibility shall continue for the duration of such officers' employment.
(2)
Participation in DROP.
(a)
An eligible participant may elect to participate in this DROP
for a period not to exceed three years, or four years for participant
elections on or after January 1, 2009. Upon deciding to participate
in a DROP, a participant must submit, on forms provided by the Borough,
all of the following:
[1]
A binding and irrevocable letter of resignation from regular
employment with the Borough of Zelienople which discloses the participant's
intent to retire and specifies the participant's retirement date.
[2]
An irrevocable written election to participate in the DROP, which must specify the effective date of DROP participation that shall be one day after the participant's specified retirement date, specify the DROP termination date which satisfies the limitation in Subsection B(4), detail a DROP participant's rights and obligations under the DROP and include an agreement to forgo:
[3]
A signed delayed retirement option plan release agreement approved
by the Borough of Zelienople.
(b)
The DROP participant shall be required to provide any other
information required by the Borough.
(3)
Effective dates of DROP participation. A retired participant's effective
date of participation in a DROP shall begin on the day following the
effective date of the participant's regular retirement and a retired
participant's in a DROP shall end on the last day of the participation
period specified in the ordinance establishing the DROP, based on
the effective date of the retired participant's participation in the
DROP.
(4)
DROP participation termination.
(a)
A DROP participant may change the DROP termination date to an earlier date within the limitations of Subsection B(2) but may not change it to a later date than elected at the time of initial DROP participation. No penalty shall be imposed for early termination of DROP participation. Upon either early or regular termination of DROP participation, the DROP participant shall be separated from employment with the Borough of Zelienople and shall receive the balance in the DROP participant's DROP participant account as provided in Subsection C(3). The DROP participant shall be ineligible to reenroll in the DROP thereafter even if the former DROP participant is reemployed by the Borough of Zelienople with renewed active membership in the Borough of Zelienople Police Pension Plan.
(5)
DROP participant contributions. DROP participants shall neither be
required nor permitted to pay contributions into the plan during the
DROP participation period.
C.
DROP benefits.
(1)
Fixed retirement benefits, retirement date and DROP dates. Effective with the date of retirement, which must be the day before the effective date of DROP participation, the participant's monthly normal retirement benefit as calculated under § 48-17B of this article, the participant's effective date of retirement and the participant's effective dates of beginning and terminating participation in the DROP shall be fixed. There shall be no further retirement benefit accruals after the participant's effective date of retirement.
(2)
Normal retirement benefit payments and accruals. The retired participant's monthly retirement benefit, including any applicable service increment benefit pursuant to § 48-17D shall be credited to the DROP participant's DROP participant account.
(3)
Payment of DROP benefits. On the effective date of a DROP participant's
termination of employment with the Borough as a DROP participant,
participation in the DROP shall cease, and the accumulated DROP benefits
in the DROP participant's DROP participant account shall be payable
subject to the following provisions:
(a)
The terminating DROP participant or, if the participant is deceased,
the participant's named beneficiary shall elect on a form provided
by the plan administrator to receive payment of the DROP benefits
in accordance with one of the following options:
[1]
The balance in the DROP participant's DROP participant account,
less withholding taxes, if any, remitted to the Internal Revenue Service,
shall be paid within 45 days of the receipt of the election form by
the plan from the account to the DROP participant or surviving beneficiary.
[2]
The balance in the DROP participant's DROP participant account
shall be paid within 45 days of the receipt of the election form by
the plan from the account directly to the custodian of an eligible
retirement plan, as defined in § 402(c)(8)(B) of the Internal
Revenue Code of 1986, or in the case of an eligible rollover distribution
to the surviving spouse of a deceased participant, to an eligible
retirement plan which is an individual retirement account or an individual
retirement annuity as described in § 402(c)(9) of the Internal
Revenue Code of 1986.
[3]
The balance in the DROP participant's DROP participant account
shall be used to purchase an annuity.
[4]
The balance in the DROP participant's DROP participant account
shall remain in the DROP participant account, if permitted by the
Internal Revenue Code of 1986 and the custodian of such account.
[5]
If the DROP participant or beneficiary fails to elect a method of payment within 60 days after the participant's termination date, the plan shall pay the balance directly to the custodian of an eligible retirement plan as provided in Subsection C(3)(a)[2].
(b)
The form of payment selected by the DROP participant or surviving
beneficiary shall comply with the minimum distribution requirements
of the Internal Revenue Code of 1986.
(c)
The terminating DROP participant shall commence receipt of the
monthly retirement benefit directly starting with the first day of
the month coincident with or next following termination of employment
with the Borough.
(4)
Preretirement benefits. Except for those benefits specified in Subsection B(2)(a)[2] as forgone by the member, a DROP participant shall be eligible for any employee benefits provided to active employees before retirement by the Borough of Zelienople and those otherwise provided by law, including but not limited to, benefits under the act of June 2, 1915 (P.L. 736, No. 338), known as the Workers' Compensation Act; the act of June 28, 1935 (P.L. 477, No. 193), referred to as the Enforcement Officer Disability Benefits Law; the act of December 5, 1936 (2nd Sp. Sess., 1937, P.L. 2897, No. 1), known as the Unemployment Compensation Law; the act of June 24, 1976 (P.L. 424, No. 101), referred to as the Emergency and Law Enforcement Personnel Death Benefits Act; and the Public Safety Officers' Benefit Act of 1976 (Public Law 94-430, 42 U.S.C. § 3796 et seq.).
D.
DROP death
benefits.
(1)
DROP benefits for designated beneficiary. If a DROP participant dies, the participant's designated beneficiary shall be entitled to apply for and receive the benefits accrued in the DROP participant's DROP participant account as provided in Subsection C(3).
(2)
Final credited monthly retirement benefit. The monthly retirement
benefit accrued in the DROP participant's DROP participant account
during the month of a DROP participant's death shall be the final
monthly retirement benefit credited for DROP participation.
(3)
DROP eligibility terminates upon participant's death. A DROP participant's
eligibility to participate in the DROP terminates upon the death of
the DROP participant. If a DROP participant dies on or after the effective
date of participation in the DROP but before the initial monthly retirement
benefit of the participant accruable for the month has accrued in
the DROP participant's DROP participant account, the Borough of Zelienople
shall pay the monthly retirement benefit as though the participant
had not elected DROP participation and had died after the employee's
effective date of retirement but before receipt of the retired participant's
first normal retirement benefit.
(4)
Survivors ineligible for active employee's death benefit. The survivors
of a DROP participant who dies shall not be eligible to receive retirement
death benefits payable in the event of the death of an active employee.
E.
Administrative
provisions.
(1)
Subsequent employment and renewal of active membership. After both the termination of the participant's employment as a DROP participant with the Borough of Zelienople and the expiration of the DROP participation period, a former DROP participant shall be subject to such reemployment limitations as other retired employees and shall be eligible for renewed membership as an active participant in the plan and the DROP participant shall be ineligible to reenroll in the DROP pursuant to Subsection B(4).
(2)
DROP participant account.
(a)
As the Borough of Zelienople establishes a DROP, each DROP participant shall establish a separate account to receive his DROP benefits. When a DROP participant terminates employment with the Borough of Zelienople as a DROP participant, the participant's total accumulated benefits shall be distributed as elected under Subsection C(3).
(b)
The balance in the DROP participant's account shall be excluded from actuarial valuation reports of the plan prepared and filed under this legislation. The DROP participant's account shall be held for the exclusive benefit of DROP retired participants who are or were DROP participants and for the beneficiaries of these participants or an alternate payee pursuant to Subsection C(3).
[1]
Editor's Note: This section was effective as of 1-1-2008.