[Ord. 92-4, 12/31/1992, Art. I; as amended by Ord. 97-10,
11/13/1997]
The equivalent value when computed on the basis of the following
actuarial tables:
|
Mortality — UP 1984 Table.
| |
|
Interest — 7%.
|
The persons appointed to administer the Nonuniformed Employees
Pension Fund established pursuant to this Part.
The amount of money paid to the Pension Fund Trust by the
employer.
All periods of service completed by a full-time employee
(whether consecutive or not) shall be aggregated in determining a
participant's service for purpose of eligibility, vesting, and benefit
accrual. Service shall be aggregated on the basis that 12 months of
service or 365 days of service equals a year of credit service, and
300 days are deemed to be a month in the case of aggregation of fractional
months.
A participant may elect to retire on his early retirement
date. In the event that a participant makes such an election, he shall
be entitled to receive an early retirement benefit equal to his accrued
benefit payable at his normal retirement date. If a participant does
elect early retirement, he may receive payment of an early retirement
benefit commencing on the first day of the month coinciding with or
next following his early retirement date which shall be the actuarial
equivalent of his present value of his normal retirement benefit.
The first day of the month following attainment of age 55
and completion of at least five years of service.
The Township of Allen, Northampton County, Pennsylvania.
A person who works for the Township at least 35 hours per
week, subject to reasonable vacation and sick leave.
The Nonuniformed Employees Pension Fund established pursuant
to this Part and previous versions of this Part.
The amount of compensation (wages) received by a participant
in any given month, including overtime, longevity pay and service
increments, if any.
The Township of Allen, Northampton County, Pennsylvania.
A lifetime monthly pension equal to 1.5% credit for each
year of credited service, applied against a participant's average
monthly compensation for the three consecutive or non-consecutive
calendar years having the highest total wage earnings of the five
most recently worked calendar years immediately preceding the Participant's
Normal Retirement Date, subject to a maximum of 30%. Such benefit
shall be subject to the vesting schedule set forth in 1-503(8) (Vesting)
and shall be payable monthly for the participant's life. A participant
must have completed at least five years of service to be eligible
for the normal retirement benefit.
The first day of the month following attainment of age 65
and completion of at least five years of service.
Every non-uniformed person duly appointed from time to time
by the Municipality as a Full-time Employee. Such person to be included
as a Participant six months after date of employment. For purposes
of determining Normal Retirement Date, the calculation of benefits
and vesting, credit for past service shall be given for all Full-time
Employees working at least 35 hours a week as of August 11, 1987,
the effective date of Ordinance 87-1 provided that the term for such
credit for past service shall be the continuous period of employment
immediately prior to their effective date.
The Pension Plan for the Nonuniformed Employees of the Township
of Allen, as authorized under this Part.
The normal form of benefit as determined by the application
of the benefit formula described above (Normal Retirement Benefit).
Such annuity shall pay the participant a monthly retirement benefit
equal to his accrued benefit beginning with the monthly installment
due as of his retirement date and ceasing with the installment due
during the month of his death.
The governing body of the Township of Allen.
The cessation of services by the participant for any reason,
including disability, death, resignation and employer termination.
Voluntary leaves of absence without pay shall not be a termination
for purposes of this Part; but no period of such leave shall be computed
in the total Service in the aggregate for pension benefit purposes.
Leaves of absence with pay shall not be considered a termination within
the meaning of this Part, and such leaves shall be computed in the
total service in the aggregate for pension benefit purposes.
A corporate trustee appointed by the employer.
[Ord. 92-4, 12/31/1992, Art. II]
1.
The Township Supervisors shall administer the Nonuniformed Employees
Pension Fund established by this Part by such regulations as shall,
from time to time, be necessary for the effective maintenance of the
Fund. Provided, that no regulation shall be contrary to the statutes
of the Commonwealth of Pennsylvania and/or applicable Federal regulations.
2.
The Township Supervisors may appoint an Advisory Committee which
shall assist the administration of the Pension Fund established by
this Part according to the regulations established pursuant to this
Section.
3.
The Committee shall consist of not less than three members, which
shall include one person chosen by a majority of the Supervisors,
one person chosen by a majority of the participants in the Fund, and
one person chosen by both a majority of the Supervisors and the majority
of the participants. All persons so designated shall serve at the
pleasure of the Supervisors (for a term of 10 years). Any member may
resign upon written notice to the Supervisors and the Committee. Any
vacancies in the Committee arising from resignation, death or removal
shall be filled by the Supervisors (by the procedure set forth herein
for the member of the Committee whose resignation, death or removal
has created the vacancy).
4.
The Committee shall act by such procedure as the Committee shall
establish. Provided that all decisions shall be by majority vote.
The Committee may authorize one of its members to execute any document
or documents on behalf of the Committee. The Committee may adopt by-laws
and regulations as it deems necessary for the conduct of its affairs
and may appoint such accountants, counsel, specialists or such other
persons as it may deem desirable for the purpose of the proper administration
of the Pension Fund. Provided that no such regulation, by-law or appointment
shall be effective until such is approved by the Supervisors. The
Committee shall be entitled to rely exclusively upon, and shall be
fully protected in any action taken by it in good faith in relying
on any opinions or reports which shall be furnished to it by any such
accountant, counsel, actuary or other consultants.
5.
The Committee shall keep a record of all its proceedings and acts,
and shall keep all such books of account, records, and other data
as may be necessary for the proper administration of the Pension Fund.
The Committee shall notify the Trustee and the Employer of any action
taken by the Committee, and, when required, shall notify any other
interested person or persons.
6.
The members of the Committee shall serve without compensation for
their services; but all such reasonable expenses incurred in the administration
of the Fund, including, but not limited to, fees for the services
of specialists, including actuaries, certified public accountants
and legal counsel, and reasonable expenses incurred by members of
the Committee in the performance of their duties in the administration
of the Pension Fund, shall be paid out of the Pension Fund if the
Township of Allen does not pay such expenses directly. Provided that:
Such expenses shall be subject to the prior approval of the Supervisors.
In estimating costs under the Pension Fund, administrative expenses
may be anticipated.
7.
The Committee shall adopt, from time to time, tables for use in all
actuarial calculations required in connection with the Plan and shall
establish, from time to time, the rate or rates of regular interest
which shall be used in all actuarial calculations required in connection
with the Plan. As an aid to the Committee in adopting tables, the
consultant appointed by the Employer shall evaluate the assets of
the Pension Fund annually at cost (except in case of bonds not in
default which shall be valued at cost or amortized value), shall make
such actuarial valuations of the contingent assets and liabilities
of the Pension Fund as the Committee may require, and shall certify
to the Committee the tables and rates of contributions which such
consultants recommend for use by the Employer.
8.
No member of the Committee shall incur any liability for any action
or failure to act excepting only liability for his own gross negligence
or willful misconduct. The Employer shall and does hereby indemnify
each member of the Committee against any and all claims, losses, damages,
expense and liability arising from any action or failure to act, except
when the same is judicially determined to be due to the gross negligence
or willful misconduct of such member. In addition, the Committee and
any member or agent thereof shall be fully protected in relying upon
the advice of any counsel, consultant, or actuary appointed by the
Committee or the Employer.
[Ord. 92-4, 12/31/1992, Art. III; as amended by Ord. 99-6,
12/9/1999]
2.
Late Retirement Benefit.
A.
By mutual consent of a Participant and the Employer, a Participant may defer his retirement and continue in service beyond his normal retirement date, but his retirement benefit shall not begin until he actually retires. The deferred retirement benefit shall be calculated as a Normal Retirement Benefit as defined in § 1-501 (Normal Retirement Date) using service and average monthly compensation to the date of termination of employment.
B.
Any Participant who elects a deferred retirement benefit and shall
thereafter retire from service shall receive a monthly retirement
benefit beginning on the first day of the month next following receipt
by the Committee of an application for retirement benefits filed by
the Participant. The deferred retirement benefits shall continue for
life, ceasing with the installment payable during the month of his
death.
4.
Disability Retirement.
A.
Any Participant in the Pension Plan upon demonstrating to the satisfaction
of the Committee that he is receiving a permanent and total disability
benefit from the United States government under the provisions of
the Federal Old Age and Survivors Insurance Act (generally called
the Social Security Act), as said Act is presently constituted and
as the same may be hereafter amended, shall be eligible to receive
a permanent and total disability benefit under the Plan.
B.
The amount of such benefit shall be the actuarial equivalent to the
Normal Retirement Benefit earned to the date of disability payable
in monthly installments as long as such Participant continues to receive
the total and permanent disability benefit under the Social Security
Act.
C.
In the event that such disabled Participant shall recover from his
disability and return to work with the Employer all disability payments
under this Plan shall cease.
5.
Benefits Upon Termination of Employment Prior to Normal Retirement Date. The accrued benefit of a Participant shall be determined in accordance with § 1-501 (Normal Retirement Benefit) using service and average monthly compensation to the date of termination of employment. Distribution of benefits to a Participant who terminated with vested benefits prior to becoming eligible for normal, early or disability retirement shall commence as soon as administratively possible on or after the Participant's Normal Retirement Date. If at the time of termination the Participant satisfied all the requirements for early retirement except the age requirement then, upon attaining such required age, the Participant shall be eligible to receive early retirement benefits.
6.
Death Benefits.
A.
Pre-Retirement. If a Participant dies prior to retirement, the Trustee
shall pay to his designated beneficiary in a single sum, or in installments
not to exceed five years, a death benefit equal to the actuarial equivalent
value of the Participant's Accrued Benefit at the date of death.
B.
Post-Retirement. Subject to the provisions of § 1-503(7), if the death of a Participant occurs prior to his receipt of his employee contributions accumulated at 5% interest compounded annually to his Annuity Starting Date, the balance of such accumulated contributions shall be paid to his beneficiary in a lump sum or in installments not to exceed five years.
7.
Optional Forms of Benefit Payment. In Lieu of the Straight Life Annuity provided for in § 1-501, a Participant may elect to receive a benefit which is the actuarial equivalent of any of the following forms:
A.
Life Annuity with 60 monthly payments guaranteed.
B.
Life Annuity with 120 monthly payments guaranteed.
C.
Joint and 50% Survivor Annuity for Participant and his spouse, and
if no spouse, the participant's beneficiary.
D.
Joint and 100% Survivor Annuity for Participant and his spouse, and
if no spouse, the Participant's beneficiary.
8.
Vesting.
A.
The vested benefit of any Participant shall be the accrued Normal
Retirement Benefit multiplied times the vested percentage below, based
on years of service to his date of termination or retirement.
|
Years of Credited Service at Date of Determination
|
Vested Percent
| |
|---|---|---|
|
Less than 5 years
|
None
| |
|
Five years or more
|
100%
|
B.
Any terminated Participant not entitled to a vested benefit shall
not be entitled to any share of the Fund which have been contributed
by the Employer for his benefit and shall have no claims to the assets
of the Plan, except for the return of his employee contributions and
interest in accordance with § 3.9(b).
9.
Commencement of Vested Benefit Payments.
A.
A Participant who terminates employment for any reason other than
retirement or death shall have a non-forfeitable right to his vested
benefit, which will be payable at the Normal Retirement Date in accordance
with § 1.11 and subject to subsections (B) and (C) below.
B.
Cashout of Employee Contributions by Participants Not Vested in Employer
Derived Benefits. If a Participant who is not vested in this accrued
benefit in accordance with subsection (8)(A) (Vesting) terminates
employment, he shall be paid in a lump sum his accumulated employee
contributions with interest credited as follows:
(1)
Interest shall be accumulated and credited to the participant's
contributions at the rate of 5% or such rate as is hereinafter set
by the resolution of the Municipality.
(2)
Interest should be computed for the full amount on deposit at
the beginning of the fiscal year of the Fund, plus 5% (or such rate
as set by resolution by the Township) of the current year's total
deposit divided by two.
C.
Cashout of Employee Contributions by Participants Vested in Employer
Derived Benefits. A Participant who terminates employment after having
become vested in his accrued benefit in accordance with subsection
(8) may elect to withdraw, in a lump sum, his accumulated employee
contributions with interest credited in accordance with subsection
(B) above. Anything to the contrary notwithstanding, upon such withdrawal
of employee contributions, the Participant shall forfeit his rights
to any other benefits under the Plan, and no further benefits shall
be payable to him under the Plan. Should such individual be subsequently
re-employed by the Employer, he shall be treated as a new employee
for all purposes of the Plan.
10.
Notice of Benefit Options. The Committee shall notify a Participant
in writing of the options that are available upon his normal or deferred
retirement dates at least 60 days prior to his normal retirement date.
[Ord. 92-4, 12/31/1992, Art. IV; as amended by Ord. 99-6,
12/9/1999]
1.
Contributions of the Employer. It shall be the obligation of the
Township to fund the past and future service liability as determined
by the actuary. The Township obligation to the Fund will be equal
to the amount determined by the actuary to fund the past and future
service liability reduced by:
2.
Allocation of Assets of Existing Pension Fund(s). Any assets of any
existing Pension Fund for the nonuniformed employees of the Employer
are hereby transferred to the Fund established by this Part and shall
be applied against the unfunded liability.
3.
Mandatory Contribution of the Participants. Effective January 1,
1999, participants shall not be required, nor permitted, to make employee
contributions to the plan.
4.
Procedure for Employee Waiver of Participation.
A.
It shall remain the right for any employee to waive his participation
in the Plan. Any decision to waive participation must be made in writing
and presented to the Employer. The decision to waive participation
shall have no effect on the employment status of the employee. Waiver
of participation by any employee shall preclude the employee from
receiving any benefits under this Plan, except for those benefits
accumulated under the provisions of this Plan up to the date of waiver
by the employee.
B.
Any time in which an employee has been eligible for participation
in this Plan, but in which the mandatory employee contributions by
payroll deduction have not been satisfied, shall not be included in
the service years for purposes of calculation of Normal Retirement
Benefits.
[Ord. 92-4, 12/31/1992, Art. V]
Any nonuniformed employee of the Township for at least six months,
who thereafter shall be drafted into the military services of the
United States, shall have credited to his employment record for the
pension benefits all of the time spent by him because of his being
drafted into such military service, if such person returns to this
employment with the Township within six months after his separation
from the services.
[Ord. 92-4, 12/31/1992, Art. VI]
1.
Upon termination of the Fund, the assets of the Fund shall be distributed
as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 1-503 for all Participants who have retired prior to termination of the Fund or who are eligible for retirement at the time of the termination of this Fund.
B.
Of the remaining funds, those which can be identified as municipality
contributions or contributions other than from Participants or from
the Commonwealth allocation, shall be distributed as the Supervisors
see fit.
2.
Termination of the Plan. Whereas, the Township intends that this
Plan shall continue in existence the Board of Supervisors may by ordinance
terminate the Plan for any reason any time. In case of termination
of the Plan, the funds of the Plan shall be used for the exclusive
benefit of Participants and contingent annuities under the Plan, except
that, if the Employer, because of erroneous actuarial calculations,
shall have contributed funds in excess of the amount required to satisfy
all liabilities of the Plan for benefits, then such excess shall be
returned to the employer.
3.
Limitations. The establishment of the Plan shall not be construed
as conferring any legal rights upon any employee or other person to
a continuation of employment nor shall it interfere with the rights
of the Employer to discharge any employee or to treat him without
regard to the effect which such treatment might have upon him as a
Participant in the Plan.
[Ord. 92-4, 12/31/1992, Art. VII]
1.
Neither the establishment of the Plan hereby created, nor any modification
thereof, nor the creation of any fund or account, nor the payment
of any benefits, shall be construed as giving to any Participant or
any other person any legal or equitable gift against the Township,
or any officer or employee thereof, or the Committee, except as herein
provided. Under no circumstances shall the Fund created hereby constitute
a contract for continuing employment for any Participant or in any
manner obligate the Municipality to continue or discontinue the services
of an employee. Notwithstanding any information that is made available
by the Employer, Committee or the Trustee to Participants of the Plan
through the distribution of description booklets, bulletin board notices,
payroll notices, or oral announcements, and Participant of the Plan
may examine the Plan Agreement, the Trust Agreement, and all amendments
thereto at the main office of the Employer at such mutually convenient
time as is arranged by the Participant and a representative of the
Employer, the Committee or the Trustee.
2.
This Plan has been established and shall be maintained by the Township
in accordance with the laws of the Commonwealth of Pennsylvania. The
Plan shall continue for such period as may be required by such laws
and should such laws provide that the Municipality may, by its own
action, discontinue the Plan, the Municipality reserves the right
to take such action in its sole and absolute discretion. Upon termination,
the Township shall have no liability hereunder other than that imposed
by law.
[Ord. 92-4, 12/31/1992, Art. VIII]
1.
The Trustee. All the funds of this Plan shall be held by a corporate trustee appointed by the Employer, in trust, under a Trust Agreement which shall be a part of this Plan for use in providing the benefits of this Plan and paying any expenses not paid directly by the Employer. No part of the corpus or income of the trust shall be used for or diverted to purposes other than the exclusive benefit of the Participants and contingent annuities of this Plan prior to the satisfaction of all liabilities under this Plan with respect to such persons, with the exception that the funds of this Plan may be used for payment of normal expenses as noted in § 1-502(6) of this Part. No person shall have any interest in or right to any part of the earnings of the trust or any part of the assets thereof, except as and to the extent expressly provided in this Plan and in the Trust Agreement. Neither the Employer, the Committee, nor the Board of Supervisors shall have any responsibility for the administration of the trust funds or any liability for any loss with respect thereto.
2.
The Trust. The Trust Fund to be created pursuant to this Plan is designed to be and shall be the sole source of the benefits provided under the Plan. The Employer does not guarantee such benefits or payments or assume any obligation with respect thereto other than to pay into the trust fund the contributions provided for in § 1-504, subject to the limitations set forth in said Section.
3.
All investments by the Trustee of the assets of this Fund shall comply
with the Pennsylvania Fiduciaries Investment Act of 1949, as amended,
and such regulations as the Supervisors shall establish for the purpose
of investing such funds.
[Ord. 92-4, 12/31/1992, Art. IX]
1.
Amendments.
A.
The Supervisors reserve the right to amend at any time, in whole or in part, any or all of the provisions of this Part. However, no such amendment shall authorize or permit any part of the Fund to be used or diverted to purposes other than for the exclusive benefit of the Participants, their beneficiaries or their estates. Nor shall any amendment divest a Participant of benefits vested by § 1-503(8) (Vesting). All such amendments shall comply with the applicable statutes of the Commonwealth.
B.
Subject to the provisions hereinafter set forth, the Board of Supervisors
may by ordinance at any time, from time to time, modify or amend,
in whole or in part, any or all of the provisions of the Plan and/or
Trust Agreement, including the method of financing the Plan provided
that:
(1)
No modification of amendment may be made which would have the
effect of depriving any retired Participant or contingent annuitant
receiving a retirement benefit of any benefits under the Plan to which
he would otherwise be entitled by reason of the accumulated funds
held under the Plan at any time, unless such Participant or contingent
annuitant consents thereto; and
(2)
No such modification or amendment shall make it possible for
any part of the funds of the Plan to be used for or diverted to purposes
other than for the exclusive benefit of Participants and contingent
annuitants under the Plan prior to the satisfaction of all liabilities
with respect to them.
(3)
No such modification or amendment shall make it possible for
the Employer to appoint to the position of Trustee anyone other than
a corporate trustee.
C.
Notwithstanding the foregoing, any modification or amendments of
the Plan may be made by ordinance, retroactively if necessary, which
the Board of Supervisors may deem necessary or appropriate to make
the Plan conform to the requirements of any law or governmental regulation
now or hereafter enacted or promulgated or to qualify such Plan and
the Trust forming a part thereof as exempt under existing or future
Federal, State or local income tax or estate tax laws and regulations.
[Ord. 92-4, 12/31/1992, Art. X]
Spendthrift Provisions. No benefit under the Plan shall be subject
in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, or charge, and any attempt so to do shall be
void, except as specifically provided in the Plan, nor shall any such
benefits be in any manner liable for or subject to garnishment, attachment,
execution, levy, or other legal process for the collection of debts
or liable for or subject to the debts, contracts, liabilities, engagements,
or torts of the person entitled to such benefit. In the event the
Committee shall find that any Participant or contingent annuitant
under the Plan has become incompetent, bankrupt, or insolvent or that
any attempt has been made to anticipate, alienate, sell, transfer,
assign, pledge, encumber, or charge any of his benefits under the
Plan, except as specifically provided in the Plan, then such benefit
shall cease and terminate and in such event the Trustee shall hold
or apply the same to or for the benefit of such Participant or contingent
annuitant, his spouse, children, or other dependents, or any of them,
in such manner as the Committee may find proper, from time to time.
[Ord. 92-4, 12/31/1992, Art. XI]
1.
This Plan shall be construed according to the laws of the Commonwealth
of Pennsylvania and all provisions shall be administered according
to the laws of such Commonwealth.
2.
Whenever any words are used herein in the masculine gender, they
shall be construed as though they were also used in the feminine gender
in all cases where they would so apply, and whenever any words are
used herein in the singular form, they shall be construed as though
they were also used in the plural form in all cases where they would
so apply.
3.
Headings of Sections and paragraphs of this instrument are inserted
for convenience of reference. They constitute no part of this Plan
and are not to be considered in the construction hereof.
