[Adopted 2-11-2002 by Ord. No. 1670 (Ch. 1, Part 4C, of the
1997 Code of Ordinances); amended in its entirety 10-17-2016 by Ord. No.
1880]
A.
Pursuant to Chapter 1, Part 8, Section D, of the City of Warren (hereinafter referred to as the "employer") Code of Ordinances (hereinafter referred to as "prior plan"), the City has maintained a pension plan for the benefit of employees other than policemen and firemen.
B.
Effective October 17, 2016, except to the extent a different date
is indicated in the text herein, the City desires to amend and restate
the prior plan, in its entirety, the terms of which are hereinafter
set forth. This document shall continue to be known as the City of
Warren Municipal employee Pension Plan (hereinafter referred to as
the "plan").
C.
The purpose of this plan continues to be to provide retirement income
for the benefit of its eligible employees and their beneficiaries,
but limited to those who qualify in accordance with the terms and
conditions of the plan as set forth herein.
D.
The City intends that this plan, together with any related trust
agreement, shall meet all the pertinent requirements for qualification
of a governmental plan under the Internal Revenue Code of 1986, as
amended, and the plan and trust agreement shall be interpreted, wherever
possible, to comply with the applicable terms of said Code and all
formal regulations and rulings pertinent to the plan and trust agreement
issued thereunder. The City, as a home rule municipality, specifically
elects not to be governed by the Third Class City Code, Act 317 of
1931, 53 P.S § 39340 et seq.[1]
[1]
Editor's Note: Said 53 P.S. § 39340 et seq. was
repealed 11-24-2015 by P.L. 242, No. 67, § 2(2), effective
1-25-2016. See now 11 Pa.C.S.A. § 14339 et seq.
E.
Each retired participant who was receiving monthly benefit on October
16, 2016, under the prior plan shall receive payments on or after
October 17, 2016, in accordance with the terms of prior plan.
F.
Each terminated participant who terminated employment prior to October
17, 2016, with a vested interest in his accrued benefit under the
prior plan and who had not commenced receiving his retirement benefit
on such date will be eligible to receive retirement benefit on such
benefit commencement date as set forth in the prior plan.
G.
The provisions of this plan shall apply only to any participant who
terminates employment on and after October 17, 2016.
As used in this article, the following terms shall have the
meanings indicated:
A fraction, the numerator of which represents the participant's years of continuous service earned to the date of determination, and the denominator of which represents the years of continuous service he could earn from his date of hire to his normal retirement date. A participant's accrued benefit percentage may never exceed the number one. The "accrued benefit" shall be the accrued benefit percentage multiplied by the participant's monthly normal retirement benefit, determined in accordance with § 81-17B. In no event shall the benefit be less than a benefit equal to the amount of the member contribution account or the actuarial equivalent thereof. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to actual payment thereof.
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 seven-percent interest unless
otherwise provided herein.
Each January 1 subsequent to October 17, 2016.
The person specified by each participant on becoming a participant
by way of written notice which designates his beneficiary or beneficiaries
to the Plan Administrator. 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 complies with any procedures established
by the Plan Administrator.
The City of Warren, located in Warren County, Pennsylvania.
The base salary of a participant, received or receivable
during the participant's employment with the City as an eligible employee
that shall be considered under the plan for purposes of calculating
benefits and contributions and in applying any applicable limitations
to such benefits or contributions. Base salary for this purpose includes
pay received for an upgraded classification as well as shift premium.
Base salary includes any nonqualified deferred compensation taxable
under IRC § 457(f), but not § 457(a), in the year
that the amount is taxable. For eligible deferred compensation plans
as defined in IRC § 457(b), any deferral made with respect
to an employee's compensation shall be considered compensation in
the year of the deferral. Except as is specifically provided for with
respect in the IRC § 457 plans above,[1] base salary shall exclude all overtime, bonuses, and other
remuneration not paid in a fixed amount at periodic intervals. Where
a participant continues to accrue continuous service pursuant to Subsection
A(1), (2), (3) or (4) of the definition of "continuous service," "compensation"
means the base salary that the participant would have received during
his or her leave or absence.
For service rendered prior to October 17, 2016, shall be determined
pursuant to the prior plan. "Continuous service" for service rendered
on or after October 17, 2016, shall mean an employee's period of continuous,
uninterrupted employment, which shall be calculated to the nearest
month, with the employer. For purposes of this subsection, an employee's
continuous service shall begin on such employee's entry date and shall
not be deemed to have been interrupted by any of the following periods,
but such continuous service shall not accrue during such periods:
An authorized leave of absence expressly granted by the employer,
not exceeding six months;
An absence of an employee due to layoff, not exceeding three
months;
An absence of an employee for a period in excess of six months
due to nonoccupational disability;
An absence of an employee for a period in excess of six months
due to occupational injury or disease.
Continuous service shall not be broken and shall continue to
accumulate during any period of absence during which an employee serves
in the Armed Forces of the United States of America, during a period
of national emergency or through the operation or by reason of compulsory
military service law of the United States of America, provided no
reenlistment has occurred, shall be considered continuous service
and shall not be deemed as interrupted, provided the employee returns
to his employment with the employer at the time and under the circumstances
required to give him reemployment rights under any federal or state
law.
An employee's continuous service shall no longer continue to
accrue if one or more of the following events occur:
Voluntary termination;
Discharge;
A layoff for a period of three months;
Failure to report for work upon the expiration of an authorized
leave of absence;
Failure to report to work for three consecutive work days without
the employer's permission, unless the employee can furnish reasons
satisfactory to the employer for his absence;
Failure to report for work from layoff within five work days
after being notified by the employer; or
Absence due to nonoccupational disability for a period 24 months;
provided, however, that an employee who is receiving a disability
retirement benefit under this plan shall not break his continuous
service, but his continuous service shall cease to accumulate during
the period of his disability.
Any natural-born child, any legally adopted child, any stepchild,
or any foster child of a participant which child is unmarried, has
not yet attained age 18, and, in the case of a foster child, resides
in such participant's household.
A condition of physical or mental impairment caused by bodily injury or disease which prevents a participant from engaging in any occupation or employment for remuneration or profit, which continues for a period of at least five consecutive months and shall be deemed to be permanent and continuous during the remainder of the participant's lifetime in the opinion of a physician selected by the City pursuant to the procedure described in § 81-18B. No participant shall be deemed to be disabled for the purpose of this plan if his incapacity results from chronic alcoholism or addiction to narcotics, engagement in a felonious criminal enterprise, or resulted from an intentionally self-inflicted injury, or if such disability was incurred in the armed services of any country.
The date when a participant retires or terminates employment
with the employer if such date is prior to the participant's normal
retirement date but on or after either:
October 17, 2016.
A regularly scheduled, full-time person employed by the City
and who is not eligible to be an active participant under any other
retirement plan of the City or for whom the City or the commonwealth
makes contributions to produce retirement benefits under another retirement
plan. Any employee employed as a temporary, probationary, special
or part-time employee of the City shall not be considered an eligible
employee for purposes of this plan.
The spouse to whom a participant is married.
The date of the employee's satisfaction of the eligibility requirements set forth in § 81-16.
The compensation of a participant related to and averaged
over the participant's final 60 months of service.
A person who had become a participant but who subsequently
ceased to be an eligible employee on account of death or other termination
of employment with the City.
Former participant(s) who are entitled to current or future
benefits from the plan and participant(s).
Other than incurring a disability, the date on which a participant
attains age 62 or completes 10 years of continuous service, whichever
is later.
An eligible employee who has commenced participation in this plan in accordance with § 81-16 and who has not for any reason ceased to participate hereunder and who shall make such participant contributions as are required by the City.
The Municipal employee Pension Plan 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.
Twelve calendar months of service where service at any time
during a calendar month constitutes one whole month.
[1]
Editor's Note: See 26 U.S.C. § 457.
A.
Eligibility for participation. Each eligible employee shall be eligible to participate after completion of the application procedure described in Subsection B below and following completion of the probationary employment period.
B.
Application for participation.
(1)
Upon completion of the requirements for eligibility provided in Subsection A above, each eligible employee of the employer shall be notified by the Plan Administrator as to his eligibility and, as a prerequisite to participation, shall make written application on the form or forms provided by the Plan Administrator for that purpose within 30 days after such notice, and shall execute any application, take any physical examination and answer truthfully and fully all questions required by the Plan Administrator as to his eligibility at least 10 days before such eligibility date and, as a prerequisite to participation, shall properly complete the form or forms provided by the Plan Administrator.
(2)
If a participant withdraws from the plan while an employee of the
City, such former participant may reenter the plan at a later date,
but may do so only once during his lifetime. If a participant reenters
the plan, his pension benefits shall be based on his reentry date.
C.
Reemployment. Upon the reemployment of any employee who had previously been employed by the employer and who has incurred a break in service, his prior continuous service shall be disregarded, and such employee shall be deemed a new employee for all purposes under the plan and in accordance with the definition of "continuous service" in § 81-15.
D.
Late application. If the application of an eligible employee to whom notice of eligibility was given is not received by the Plan Administrator within the time specified in Subsection B, the employee's right to become a participant shall be suspended until the first of the month next following receipt of such application.
A.
Entitlement. A former participant who has reached normal retirement date (a participant attains age 62 or completes 10 years of continuous service, whichever is later) on or before the date on which he became a former participant shall become entitled to the retirement benefit described in Subsection B below.
B.
Retirement benefit. A former participant who satisfies the conditions
for entitlement described in the foregoing subsection shall be entitled
to a monthly amount payable for his life, which amount (referred to
hereinafter as the "retirement benefit" or "normal retirement benefit")
is derived from the following formula:
|
[(a x b) + (c x d)] x e
|
|
Where, with respect to said former participant:
| ||||
|
a
|
=
|
accrual rate of 1.2%
| ||
|
b
|
=
|
final average monthly compensation
| ||
|
c
|
=
|
accrual rate of 1%
| ||
|
d
|
=
|
final average monthly compensation in excess of $550
| ||
|
e
|
=
| |||
C.
Normal form. The normal form of retirement benefit hereunder shall
be a single life annuity.
D.
Early retirement. If a participant shall retire on an early retirement
date with completion of 12 or more years of continuous service, he
shall be entitled to receive, upon making an election therefor, either:
(1)
A deferred retirement benefit commencing at normal retirement date
equal to the participant's accrued benefit determined as of his early
retirement date; or
(2)
An immediate retirement benefit commencing on his early retirement
date equal to an immediate benefit of the participant's accrued benefit
at the time of early retirement reduced 6.7% for each year that early
retirement date precedes normal retirement. If the period between
the early retirement date and normal retirement date is not an integral
number of years, the percentage to be applied shall be the percentage
for the next higher integral number of years increased by proportionate
part (of the nearest fully completed day based upon a three-hundred-sixty-five-day
year) of the difference between that percentage and the percentage
for the next lower integral number of years.
E.
Late Retirement. Any participant may continue to work after his normal retirement date, but in such case the participant shall be entitled to receive, in lieu of his normal monthly retirement benefit, a late monthly retirement benefit payable under normal form of payment described in Subsection B and commencing on the date of his actual retirement. The amount of such participant's late monthly benefit shall be the greater of:
(1)
The amount of the participant's normal monthly retirement benefit
which would otherwise have been payable to the participant on his
normal retirement date but computed on his final average monthly compensation
determined as of his late retirement date and applied on the basis
of the years of continuous service he completed on his late retirement
date; or
(2)
The actuarial equivalent of the participant's normal monthly retirement
benefit which he would have received at his normal retirement date.
A.
Disability retirement.
(1)
A participant shall be eligible to retire on a disability benefit
if the City shall have determined that the participant has incurred
a disability. A participant's disability retirement benefit shall
be equal to his accrued benefit determined as of the first day of
the month immediately preceding the last day on which he was actively
employed by the employer.
(2)
The employer may require proof of continued disability but not more
frequently than once in any six-month period. If any participant shall
refuse to submit to a medical examination or furnish proof of his
continued disability upon the request of the employer, his disability
payments shall cease.
(3)
A participant who has elected to vest his pension and remains an
employee of the City shall be entitled to the disability provisions
of this section, provided the former participant has not reached his
62nd birthday. Disability benefits shall be calculated as of the date
of vesting.
B.
Commencement of benefit.
(1)
Disability benefits shall commence after the five-month waiting period specified in the definition of "disability" in § 81-15, provided the participant satisfies all necessary conditions for eligibility for disability benefits hereunder and shall continue so long as he is disabled. Such benefits shall immediately cease, however, if prior to the participant's normal retirement date, the employer determines that the participant is no longer eligible to receive such benefits. A participant who ceases to be eligible for disability retirement benefits may be eligible to receive a deferred vested benefit or an early retirement benefit, depending upon whether he had satisfied the eligibility requirements for the same. For any individual who is reemployed subsequent to receiving disability benefits hereunder, such participant's continuous service shall be determined as of the date when his employment terminated due to disability pursuant to the definition of "continuous service" in § 81-15.
(2)
In no event shall a disability benefit be payable unless the participant
is deemed to be disabled by a physician appointed by the City. In
the event that a conflict arises between the City's physician and
the employee's physician, the issue shall be submitted to an impartial
physician. The impartial physician shall be selected from a list of
three physicians whose names shall be supplied by the local medical
society. Each party shall alternately strike a name from the list
until only one remains. The flipping of a coin shall be the process
used in determining which party shall strike the first name. The physician
whose name remains shall be the impartial physician who shall render
the final and binding decision on both parties.
A.
Death benefit.
(1)
If a participant dies prior to the date when his retirement benefits
commence, a death benefit equal to a refund of the participant's member
contributions account shall be payable to the participant's beneficiary
except that if a participant dies after achieving normal retirement
date but prior to retirement and is still employed by the City, his
beneficiary shall be entitled to the benefit pursuant to the form
selected by the participant.
(2)
Upon being notified by the Plan Administrator of the death of a participant
prior to retirement, the Plan Administrator shall obtain the necessary
proofs of death and comply with all other requirements of the plan.
The death benefit will be paid to the last-named beneficiary on file
and thereupon the employer and the Plan Administrator shall be completely
discharged of all duties, obligations, responsibilities and liabilities
under this plan with respect to the rights, interests and benefits
offered to such participant and his beneficiaries under this agreement.
B.
Retirement death benefit. If a former participant dies subsequent
to the date when his retirement benefits commence, no death benefits
shall be payable under this section, and the death benefit payable,
if any, shall be limited to that which is payable pursuant to the
form of benefit payment in force for such participant at the time
his death occurs. However, in no event will the former participant
(including any amounts paid to a beneficiary) receive less than the
member contributions account.
C.
Pre-retirement death benefit. Upon the death of a participant after 10 years of service, but prior to his actual retirement date, a monthly benefit shall be payable to the participant's eligible spouse equal to half of the member's accrued benefit as of the date of his death. Death benefits payable shall commence on the first day of the month coincident or next following the member's death and shall cease with the last payment due immediately preceding the spouse's death or remarriage, whichever occurs first. A member's eligible spouse is the person married to and living within the same household with such member at his time of death. If benefits are paid under this section, no other benefits shall be paid from the plan on account of the death of the participant, including, but not limited to, a return of contributions under Subsection A.
A.
Employer contributions. The employer shall contribute an amount sufficient to maintain the Pension Fund pursuant to § 81-25F hereof.
B.
employee contributions. During each month, each participant shall
make employee contributions as may be set in advance by Council by
ordinance or resolution from time to time. Such contributions shall
be referred to as "member contributions." The employer shall deduct
the set rate from the participant's compensation at each pay period
and remit all contributions to the plan fund monthly to be held and
administered in accordance with the terms of the plan. The contribution
rate for all participants in the plan as of the effective date of
this article shall be set at 2% of the base salary. This rate shall
continue in effect until amended by ordinance or resolution of Council.
C.
Crediting of interest. Interest shall accrue to member contributions
at the rate of 3% per annum (compound interest). Such interest shall
be credited from the midpoint of the year (or part of the year) when
made through the date of the participant's termination of eligible
employment. The member contributions together with the applicable
interest shall constitute the member contribution account.
D.
No reversion to the employer. 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,
except that contributions made by the employer may be returned to
the employer if:
A.
Rights of terminated employees. If a participant shall cease to be
an employee except as otherwise hereinbefore provided, his interest
and rights under the plan shall be limited to those contained in the
following subsections of this section.
B.
Refund of accumulated contributions. If a participant whose employment
with the employer has been terminated for any reason other than death
prior to this early retirement date, and he is neither eligible for
a pension under the plan, nor has he completed at least five years
of continuous service, such participant shall be entitled to receive
a refund of his accumulated contribution account. Upon receipt of
such accumulated contribution account, said participant and his or
her beneficiary shall not be entitled to any further payments from
the plan.
C.
Vested benefits. If a participant's employment terminates for a reason
other than retirement or disability and he has completed at least
five years of continuous service, he shall be entitled to a deferred
vested benefit equal to his vested percentage of his accrued benefit
determined as of the date when his employment terminates pursuant
to the vesting schedule provided below:
|
Years of Continuous Service
|
Vested Percentage
| |
|---|---|---|
|
Less than 5
|
0%
| |
|
5 but less than 6
|
50%
| |
|
6 but less than 7
|
60%
| |
|
7 but less than 8
|
70%
| |
|
8 but less than 9
|
80%
| |
|
9 but less than 10
|
90%
| |
|
10 or more
|
100%
|
D.
Payment of vested benefits. Payment of vested benefits under § 81-21C shall be in lieu of a refund of accumulated contribution account under § 81-21B. Payments of a participant's vested benefit shall be made by the employer, at the date which would have been such participant's normal retirement date had he continued his employment. Notwithstanding the preceding, a participant with an entitlement to a vested benefit may elect to commence receiving such benefit as of the date when he would have been eligible for an early retirement benefit as provided in the definition of "early retirement date" in § 81-15 had he continued employment with the employer; provided, however, that any payment of a vested accrued benefit as of a participant's early retirement date shall be subject to the reduction for early payment set forth in § 81-17D hereof. A participant eligible to receive his vested benefit may be permitted to receive such benefit in any form of payment authorized for payment of retirement benefits under the provisions of § 81-22B hereof. The Plan Administrator shall, after consulting with the participant, and subject to the provisions of § 81-22C, determine the time and form of any distribution of vested benefits hereunder in a nondiscriminatory manner and not contrary to any laws or regulations which may govern such distributions.
E.
One-hundred-percent vesting. Notwithstanding the preceding, a participant,
who is not already one-hundred-percent vested shall become one-hundred-percent
vested (to the extent the plan is funded) upon his attaining normal
retirement date, upon the plan's termination, or upon a complete discontinuance
of contributions to the plan. A participant shall always be one-hundred-percent
vested in his accumulated contribution account.
F.
Forfeiture upon death.
(1)
A participant who terminates his employment with the employer at
a time when he is not vested in any portion of his 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.
(2)
Notwithstanding the preceding, in any case where a participant has made employee contributions to the plan, the current value of the member contribution account shall be refunded to the beneficiary of the participant, if the participant dies prior to receipt of his vested benefit, as provided under § 81-19B.
A.
Payment of benefits. No benefit shall be paid under the plan until
an application therefor shall be made to the Administrator. Each application
for a benefit shall be in writing on a form provided by the Administrator
and shall be made to the Administrator. The Administrator may require
any applicant for a benefit to furnish to it such information deemed
necessary.
B.
Forms of benefit payment.
(1)
The automatic form of payment of retirement benefits shall be a single life annuity ("normal form") unless a participant elects to receive his benefits in some other form as provided herein. If a participant who retires under § 81-17A, D or E elects not to receive his benefits in the normal form of payment, he may, by giving written notice to the Administrator at least 90 days prior to his actual retirement date, elect to receive payment of his benefit in one of the following actuarially equivalent forms of payment under the plan:
(a)
A reduced retirement benefit payable to the retired participant
during his lifetime with the guarantee that not less than 60, 120
or 180 monthly retirement benefit payments shall be continued to the
participant's designated beneficiary; or
(b)
A reduced retirement benefit payable to the retired participant
during his lifetime with benefit payments continuing in the amount
of 50%, 66 2/3%, 75%, or 100% to the participant's designated
beneficiary upon his death. If such option is elected 90 days prior
to the participant's actual retirement date, such benefit shall become
payable in the normal form in the event the participant's designated
beneficiary shall die within the ninety-day period prior to the participant's
actual retirement date. Should the beneficiary die after the participant
shall begin to receive the normal or late retirement benefit, no alternative
beneficiary may be named.
(3)
The provisions of this section shall be subject to the limitation
that no participant shall elect an interest option or an installment
distribution to be paid over a period which shall exceed the greater
of:
C.
Commencement of benefits.
(1)
A participant may elect to commence receiving distribution of his retirement benefits as of his normal retirement date, early retirement date, late retirement date or disability 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 § 81-26I hereof. If a participant elects immediate commencement of his benefit, payments shall commence as of the first of the month following his retirement date.
(2)
Unless the participant otherwise elects, payment of his benefits
under the plan shall commence not later than 60 days following the
close of the plan year in which occurs the latest of the following
dates:
(3)
If a participant dies subsequent to the date when his retirement
benefits commence, no death benefits shall be payable under this section,
and the death benefit payable, if any, shall be limited to that which
is payable pursuant to the form of benefit payment in force for such
participant at the time his death occurs.
[Added 5-21-2018 by Ord.
No. 1907; amended 3-18-2019 by Ord. No. 1916]
A.
For full-time nonuniformed, union employees hired after January 1,
2018, and nonuniformed, nonunion employees hired after January 1,
2019, pensions shall consist of the minimum required benefits under
the Third Class City Code Pension Funds for employees Other Than Policemen
and City-Paid Firemen, 53 P.S. § 39341 - 39361,[1] as reflected as follows in Subsections C through J ("New Hires Plan" or "plan").
[1]
Editor's Note: Former 53 P.S. §§ 39341 through
39361 were repealed by P.L. 242, No. 67. See now 11 Pa.C.S.A. § 14339
et seq.
B.
The benefits in the New Hires Plan shall be the exclusive pension benefits for any full-time nonuniformed, union City employees hired after January 1, 2018, and nonuniformed, nonunion City employees hired after January 1, 2019. The New Hires Plan incorporates as a part thereof the provisions of Ordinance 1880 (and any successor thereof) set forth in §§ 81-23 through 81-29 of this article, which mainly detail the administrative, tax and miscellaneous provisions of the plan.
C.
ACCRUED BENEFIT
(1)
ACCUMULATED CONTRIBUTIONS
ACTUARIAL EQUIVALENT
AUTHORIZED LEAVE OF ABSENCE
AVERAGE COMPENSATION
BENEFICIARY
BREAK IN SERVICE
COMMONWEALTH
COMPENSATION
CONTRACT or POLICY
COUNCIL
DISABILITY RETIREMENT DATE
EMPLOYEE
EMPLOYER
EMPLOYMENT
(1)
INSURER or INSURANCE COMPANY
LATE RETIREMENT DATE
MINIMUM MUNICIPAL OBLIGATION
NORMAL RETIREMENT AGE
NORMAL RETIREMENT DATE
NOTICE or ELECTION
PARTICIPANT
PENSION FUND
PLAN
RESTATEMENT DATE
TOTAL AND PERMANENT DISABILITY
YEAR OF CREDITED SERVICE
Definitions. The following words and phrases, as used in the New
Hires Plan, shall have the meaning set forth in this subsection, unless
a different meaning is otherwise clearly required by the context:
As of any given date, the participant's benefit determined under Subsection F(2), calculated on the basis of the participant's average compensation determined as of such date and multiplied by a fraction, the numerator of which shall be the participant's completed years of credited service as of such determination date and the denominator of which shall be 20. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one.
In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 81-26E. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof and no accrued benefits shall be paid unless the participant satisfies all requirements hereunder for entitlement to receive such benefit.
The total amount contributed by any participant to this plan
or its predecessor by way of payroll deduction or otherwise. There
shall be no interest credited to this amount. For purposes of this
section, participant contributions shall include contributions "picked
up" by the employer in accordance with Code Section 414(h)(2).
Two forms of payments 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 7% interest unless otherwise
provided herein.
Any leave of absence granted in writing by the employer for
reasons including, but not limited to, accident, sickness, pregnancy
or temporary disability, education, training, jury duty or such other
reasons as may necessitate authorized leave from active employment.
The average of the monthly compensation of the participant
during the last 12 months of employment immediately preceding the
date of termination of the participant's employment, or the average
of the monthly compensation of the participant during the highest
five calendar years of employment, if such average is higher.
The person or legal entity designated by the participant
to receive any applicable benefits under the plan payable upon the
occurrence of 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 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.
Any period of time after employment has commenced during
which an employee fails to maintain a continuous period of employment.
The Commonwealth of Pennsylvania.
The base salary or hourly wages paid to an employee by the
employer with respect to personal services rendered as an employee.
No extra or additional forms of remuneration shall be included in
compensation, such as overtime, bonuses, longevity, health insurance
buyouts, amounts paid as allowance or reimbursement for expenses,
payments made by the employer to this or any other employee welfare
or benefit plans on behalf of its employee, and amounts paid as lump
sums for accumulated sick time or other unused leave. Compensation
shall include the amount of any participant contributions picked up
under Code Section 414(h)(2). Compensation shall be limited on an
annual basis for purposes of this plan to the amount specified in
accordance with Code Section 401(a)(17) for government plans.
Any insurance or annuity contract issued by an insurance
company in accordance with the requirements of the plan.
The City Council of the City of Warren, Pennsylvania.
The first day of the month coincident with or next following
the date when a participant who has completed at least 10 years of
credited service terminates employment due to a total and permanent
disability.
Any person hired after January 1, 2018 who is employed by
the employer on a full-time basis, who is not a police officer or
firefighter, who is a member of the IBEW bargaining unit, and who
is not otherwise participating in a pension plan or retirement program
sponsored by the employer which recognized credit for the same period
of service to the employer. "employee" shall also mean any nonunion
person hired after January 1, 2019 who is employed by the employer
on a full-time basis, who is not a police officer or firefighter,
and who is not otherwise participating in a pension plan or retirement
program sponsored by the employer which recognized credit for the
same period of service to the employer.
The City of Warren, Pennsylvania, a political subdivision
of the commonwealth.
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 an employee. Employment may include, for the purpose
of determining years of credited service, an authorized leave of absence
to the extent it is specifically granted in writing by the Council
and permitted pursuant to applicable law.
Employment 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 employee contributions
that would otherwise have been paid to the plan during such period
of qualified military service. The amount of employee contributions
shall be based upon an estimate of the compensation that would have
been paid to the participant during such period of qualified military
services 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 employee 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.
Any legal reserve life insurance company licensed to do business
in one or more state of the United States.
The first day of the month coincident with or next following
the date when a participant retires which is subsequent to the participant's
normal retirement date.
The minimum annual obligation of the municipality as determined
and certified by the Chief Administrative Officer pursuant to the
provisions of the Act.
The later of attainment of age 60 or completion of 20 years
of credited service.
The first day of the month coincident with or next following
the date when an employee attains 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 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.
Any employee who has commenced participation in this plan in accordance with Subsection D, and has not for any reason ceased to participate hereunder.
The assets of the plan which shall be accounted for separately
from the assets of any other plans maintained by the employer and
which shall be administered under the supervision of the employer
in accordance with the terms of the plan.
The City of Warren Municipal employee Pension Plan.
January 1, 2018, the effective date of this New Hires Plan.
A condition of physical or mental impairment due to which
a participant is unable to perform any customary duties of employment
with the employer. The plan administrator shall determine whether
a participant has incurred a total and permanent disability based
upon the results of an examination and sworn statement of three physicians
designated by the plan administrator.
Any consecutive twelve-month period during which a participant
is continuously employed in employment. Each year of credited service
shall be determined from the date on which participation in the plan
shall commence and annual anniversaries thereof and/or the date that
reemployment of a participant shall commence and anniversaries thereof,
provided that the employee has authorized the payment of employee
contributions to the plan.
D.
Participation in the plan.
(1)
Eligibility for participation. Each employee shall be eligible
to participate in the plan following completion of the probationary
employment period provided that all administrative prerequisites,
such as authorizing the payment of employee contributions via payroll
deduction, have been fulfilled.
(2)
Participation requirements. Each participant hereunder shall be required to make employee contributions to the plan, as provided in Subsection E(1) hereof, and shall execute and complete any enrollment or application forms as required by the plan administrator.
(3)
Reemployment. Each employee who had previously been employed by the employer and incurred a break in service shall, upon reemployment, have prior years of credited service recredited for all purposes under the plan upon repayment to the plan of any amount of accumulated contributions, which had been distributed pursuant to Subsection J(2).
(4)
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 employee 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.
(5)
Leave of absence. During any leave of absence that is not an authorized leave of absence, a participant shall be deemed an inactive participant and shall not be given credit for years of credited service nor continue to accrue any benefits hereunder if the employee is not reemployed by the expiration of such leave of absence, participation in the plan shall cease on the date on which such leave of absence commenced. During any authorized leave of absence, a participant shall continue to receive credit for years of credited service to the extent such credit is specifically granted in writing by Council and is permitted pursuant to applicable law provided that all required employee contributions are paid to the plan as provided in Subsection E(1)(b).
(6)
Recordkeeping. The employer shall furnish the administrator
with such information as will aid the 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.
E.
Contributions.
(1)
employee contributions.
(a)
As a condition of participation hereunder, each participant
shall be required to have employee contributions deducted from the
participant's compensation and contributed to the plan at a rate of
3.5% of the participant's compensation on which social security taxes
are payable. The employee contributions shall be at a rate of 5% of
the participant's compensation in excess of that on which social security
taxes are payable.
(b)
To the extent feasible, all mandatory employee contributions
designated as such made shall be paid or "picked up" by the employer
in lieu of contributions by the employees and thereafter treated as
employer contributions for federal income taxation purposes within
the meaning of Section 414(h)(2) of the Internal Revenue Code of 1986,
as amended. The contributions may be paid or picked up by a reduction
in the cash salary, by an offset against future salary increases or
a combination of both. Affected employees shall not have the option
of choosing to receive the picked-up contributions directly in lieu
of having them paid by the employer to the plans. Notwithstanding
the foregoing, contributions so picked up shall continue to be treated
as employee contributions for all purposes of state and local law
in the same manner and to the same extent as employee contributions
made prior to the date of pickup; including, by way of illustration
and not limitation, being treated as part of the affected employee's
compensation for both Pennsylvania and local income tax laws and for
purposes of computing any benefits under the affected employee's pension
plan.
(2)
Employer contributions. The chief administrative officer, in
accordance with the Act, shall annually 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.
(3)
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 and shall be used to reduce the amount of the
minimum municipal obligation of the employer.
(4)
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.
(5)
No reversion to the employer. 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, except that contribution made by the employer may be returned to the employer if the contribution was made due to a mistake of fact and the contribution is returned within one year of the mistaken payment of the contribution or the plan is terminated, as provided in § 81-27.
F.
Retirement benefits.
(1)
Normal retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after attainment of normal
retirement age.
(2)
Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection F(1) hereof shall receive a benefit commencing on the participant's normal retirement date and paid in the normal form as provided in Subsection I(1) hereof. The monthly amount of the normal retirement benefit shall be equal to 50% of the participant's average compensation. Such benefit shall be offset by 40% of a participant's full social security old-age insurance benefit calculated in accordance with the provisions of the Federal Social Security Act in effect on the date of the participant's termination of employment, except that such amount shall be included only upon attainment of the age at which the employee would be eligible to receive full social security old-age insurance benefits, or at actual retirement if later, and, in determining such eligibility and such amounts, only compensation for services actually rendered by the employee and covered by the plan shall be included.
(3)
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 Subsection F(1) continues in employment beyond the participant's normal retirement date, there shall be no retirement benefits paid until employment has ceased and the participant's retirement actually commences. The retirement benefit of a participant described in this Subsection F(3) shall be calculated in accordance with Subsection F(2) on the basis of average compensation as of the participant's actual retirement and shall commence on the participant's late retirement date.
(4)
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 said 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.
(5)
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.
G.
Disability retirement.
(1)
Disability retirement. A participant who has completed at least
10 years of credited service and who incurs a total and permanent
disability before attaining age 60 shall be entitled to a disability
retirement benefit as of the disability retirement date.
(2)
Disability retirement benefit. A participant who shall be entitled to a disability retirement benefit under Subsection G(1) shall receive a benefit commencing on the participant's disability retirement date and paid monthly. The amount of the disability retirement benefit shall be equal to the benefit set forth in Subsection F(2) (without application of the Social Security offset) determined as of the disability retirement date.
(3)
Payment of disability benefit. Payment of a disability retirement benefit shall be made monthly commencing on the participant's disability retirement date and ending on the earlier of the date of death of the participant or the date that the participant's total and permanent disability shall cease. If the participant's total and permanent disability shall cease prior to the attainment of the participant's normal retirement age, the participant shall be deemed to have terminated employment as of the disability retirement date for purposes of this plan unless the participant shall resume active employment within three months following the date on which such total and permanent disability ceased. A participant who fails to resume active employment after total and permanent disability ceases shall not be entitled to a distribution of accumulated contributions pursuant to Subsection J(2) to the extent that the total amount of disability retirement benefits paid exceeds the value of the participant's accumulated contributions as of the disability retirement date, and shall not be entitled to any other benefits under the plan as a result of the accumulation of any years of credited service as of the disability retirement date.
(4)
Verification of disability. The plan administrator shall determine
whether a participant shall have incurred a total and permanent disability.
Proof of total and permanent disability shall consist of the sworn
statement of three practicing physicians, designated by the plan administrator,
that the participant has incurred a total and permanent disability.
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.
(5)
Cessation of disability. A participant who is receiving payment
of disability retirement benefits under this plan must notify the
plan administrator of any change in condition which may cause the
participant's entitlement to receipt of such benefits to cease. If
a participant fails to provide prompt notice to the plan administrator
of any such change in status and thereby continues to receive payment
of benefits hereunder to which the participant is not entitled, the
plan administrator may take whatever action is necessary and permitted
under applicable law to recover any amount of improper payments, including
offsetting such amounts against any future payment of retirement or
other benefits under the plan or legal action. The plan administrator
may also recover the costs of any such action.
H.
Death benefits.
(1)
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 Subsection H.
(2)
Survivor benefit. There shall be no survivor benefit payable
upon the death of a participant.
(3)
Death prior to retirement. If a participant shall die prior
to the commencement of the payment of any retirement or other benefits
under this plan, the beneficiary shall be entitled to receive a distribution
of the participant's accumulated contributions determined as of the
date of death of the participant.
(4)
Death after retirement. There shall be no benefits payable upon
the death of a participant after commencement of retirement or other
benefits under this plan, except to the extent that the total benefits
paid to the participant are less than the participant's accumulated
contributions at the time of retirement, in which case the balance
of the accumulated contributions shall be paid to the participant's
beneficiary.
I.
Payment of benefits.
(1)
Normal form. The normal form for payment of retirement benefits
shall be annuity for the life of the participant paid in equal monthly
installments.
(2)
Commencement of benefits. A participant may make an election to commence receiving distribution of retirement benefits as of the participant's normal retirement date 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 § 81-26.
(3)
Nonduplication of benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under this 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 average compensation and
years of credited service as of the date that such period of resumed
employment shall cease.
(4)
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. A participant's election, failure
to make an election or revocation of an election hereunder shall be
final and binding on all persons.
J.
Termination of employment.
(1)
Rights to 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 Subsection J.
(2)
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.
(3)
Deferred retirement benefit. A participant who shall have completed at least 20 years of credited service and who shall be dismissed, voluntarily retired, or otherwise deprived of active employment other than due to death or total and permanent disability prior to attainment of normal retirement age shall be entitled to elect to receive a deferred retirement benefit in lieu of a distribution of accumulated contributions under Subsection J(2). Such deferred retirement benefit shall be equal to the benefit determined pursuant to Subsection F(2) hereof and shall commence after application pursuant to Subsection F(4) and paid not earlier than the participant's normal retirement date and is conditioned upon the participant continuing to make participant contributions to the plan until normal retirement age. A participant who makes such an election shall agree to make contributions in the same amount that was made immediately preceding termination of employment based on the terms prescribed by the employer.
As used in this article, the following terms shall have the
meanings indicated:
The Municipal Pension Plan Funding Standard and Recovery
Act, Act of December 18, 1984, P.L. 1005, No. 205, as amended, 53
P.S. § 895.101 et seq.
A person who has at least five years of actuarial experience
with public pension plans and who is either a member of the American
Academy of Actuaries or enrolled as an actuary pursuant to the Federal
employee Retirement Income Security Act of 1974. The actuary shall
be engaged by the administrator.
The Chief Administrative Officer. If none is so appointed,
it shall mean Council. The Administrator serves pursuant to the discretion
of Council and any decision or determination of said Administrator
may be reviewed by Council with the right reserved by Council to overrule,
amend, modify, alter or change any decisions or determinations of
said Administrator in such manner and to such extent as may seem proper
to Council.
The individual, designated by Council, who shall have the
power and authority to perform all acts and to execute, acknowledge,
and deliver all instruments necessary to implement and effectuate
the purpose of the plan. Where Council fails to designate a Chief
Administrative Officer, the Chief Administrative Officer shall be
the City Manager.
The City of Warren and any successor which shall maintain
this plan, and any predecessor which has maintained this plan. The
City is situated in Warren County in the Commonwealth of Pennsylvania.
The Internal Revenue Code of 1986, as amended or replaced
from time to time.
Shall, in general, be advisory in nature and shall have such
powers as are specifically delegated by Council in writing. The Committee
shall consist of five persons who shall be as follows: one member
shall be an employee of the City covered by this plan; one member
shall be a member of Council; one member shall be a retired member
of the plan; one member shall be a registered elector of the City;
and the fifth member shall be the Finance Officer of the City. The
members of the Committee shall be appointed by Council. The members
of the Retirement Committee shall serve at the pleasure of Council
and may be removed at any time with or without cause by Council. Any
vacancies in the Retirement Committee arising by resignation, death,
removal or otherwise shall be filled by Council.
The Council of the City of Warren in which rests the responsibility
for appointing the Chief Administrative Officer and for deciding and
approving any matter of finance that affects, or could affect, the
plan, its members, or beneficiaries. All powers relative to the operation
and administration of the plan shall specifically reside with the
Council unless delegated pursuant to this plan document.
The current instrument, including all amendments hereto.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or a retirement income endowment policy
(or a combination of both), or any other form of insurance contract
or policy which shall be deemed appropriate with accordance with the
provisions of Act 205 and P.L. 1804, as amended (53 P.S. §§ 895.101
through 895.803).
The Act of June 23, 1931, P.L. 932, No. 317, 53 P.S. 39340.[1]
The legal agreement entered into between the City and a fiduciary
that shall provide specifically for all objectives, powers, and responsibilities
concerning the management of the Trust's assets.
The fund administered and established under the terms of
the plan, which fund shall include all money, property, investments,
policies, and contracts standing in the name of the plan.
[1]
Editor's Note: Said 53 P.S. § 39340 was repealed
11-24-2015 by P.L. 242, No. 67, § 2(2), effective 1-25-2016.
See now 11 Pa.C.S.A. § 14340.
A.
Authority and duties of the Administrator.
(1)
The Administrator shall have full power and authority to do whatever,
in its judgment, shall be reasonably necessary to effectuate the proper
administration and operation of the plan. The interpretation or construction
placed upon any term or provision of the plan by the Administrator,
or any action of the Administrator taken in good faith, shall be final
and conclusive upon all parties hereto. The authority of the Administrator
shall include, but shall not be limited to:
(a)
Construction of the plan;
(b)
Determination of all questions affecting the eligibility of
any employee of the City to participate herein;
(c)
Computation of the amount and the source of any benefit payable
hereunder to any participant or beneficiary, as applicable;
(d)
Authorization of any and all disbursements of benefits;
(e)
Prescription of any procedure to be followed by any participant
or other person, as applicable, in filing any application or election
hereunder;
(f)
Preparation and distribution of information explaining the plan
as may be required by law or as the Administrator deems appropriate;
(g)
Requisition of information necessary from the City or any participant
for the proper administration of the plan and to obtain the execution
of such forms helpful to protect the plan; and
(h)
Appointment and retention of any individual to assist in the
administration of the plan, including such legal, clerical, accounting,
and actuarial services as it deems desirable.
(2)
The Administrator shall have no authority to add to, subtract from,
or modify the terms of the plan or to 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 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.
B.
Hold harmless. To the full extent permitted by law, no member of
the Committee, the Council, the Chief Administrative Officer, the
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 City shall, and hereby does agree
to, indemnify and hold harmless the Administrator and each successor
and each individual's heirs, executors and administrators, and the
Administrator's delegates and appointees (other than any person or
entity independent of the City who 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 the
Administrator or a delegate or appointee of the Administrator, except
in matters involving criminal liability, or intentional or willful
misconduct. If the City purchases insurance to cover claims of a nature
described above, then no right of indemnification shall exist 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.
C.
Appeal procedure. Any person whose application for benefits is denied,
who questions the amount or timing of any benefit paid, or who has
some other claim arising under the plan (the "claimant") shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
(1)
The claimant shall first file a notice of claim with the Administrator,
which notice shall fully describe the nature of the claim. The Administrator
shall review the claim and make an initial determination approving
or denying the claim and shall mail notice of the determination within
90 days (or such other period as may be established by applicable
law) from the time the application is received. Such ninety-day period
may be extended by the Administrator, if special circumstances so
require, for up to 90 additional days by the Administrator's delivering
notice of such extension to the claimant within the first ninety-day
period. Any notice hereunder shall, if it is a notice of denial, set
forth:
(2)
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 written
notice to the Council within 60 days of mailing of the 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 and shall contain specific references to the pertinent plan
provisions on which the decision is based.
(3)
Any notice of claim questioning the amount of a benefit in pay status
shall be filed by the claimant with the Administrator within 90 days
following the date of the first payment which would be adjusted if
the claim is granted, unless the Administrator allows a later filing
for good cause shown.
(4)
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.
Actuarial valuations.
(1)
The actuary to the plan shall perform an actuarial valuation at least
biennially (unless the City is applying or has applied for supplemental
state assistance pursuant to Act 205, for purposes of this section,
whereupon actuarial valuation reports must be made annually).
(2)
Each biennial actuarial valuation report shall be made as of the
beginning of each plan year occurring in an odd-numbered calendar
year.
(3)
Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in Act 205.
(4)
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by Act 205 or any other expense which
is permissible under the terms of Act 205 and which are directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the trust. Such allowable expenses shall
include, but shall 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 officials of the
plan.
(5)
The Council, in its fiduciary role, shall monitor the services provided
to the plan to ensure that the expenses are necessary, reasonable
and benefit the plan; and provided, further, that the Administrator
shall document all such expenses item by item and, where necessary,
hour by hour.
B.
Duties of the Chief Administrative Officer.
(1)
The actuarial reports described above 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 obligation of the
City with respect to funding the plan for a given plan year. The Chief
Administrative Officer shall submit the financial requirements of
the plan and the minimum obligation of the City to the Council annually
and shall certify the accuracy of such calculations and their conformance
with Act 205.
C.
Modification of benefits. Prior to the adoption of any provision
that modifies a benefit provided hereunder, the Chief Administrative
Officer shall provide to the Council a cost estimate of the proposed
modification. Such estimate shall be prepared by an approved actuary,
as such term is defined in Act 205, which estimate shall disclose
to the Council the impact of the proposed modification on the future
financial requirements of the plan and the future minimum obligation
of the City with respect to the plan.
D.
Utilization of state aid. Payments of general municipal state aid
or any other amount of state aid received pursuant to Act 205 from
the Commonwealth of Pennsylvania which are received by the City and
deposited into the fund shall be used as follows:
F.
City contributions. The remainder of the annual contributions required
under provisions of Act 205, as determined by the actuary to the plan
in accordance with Act 205, shall become the obligation of the City
and shall be paid into the fund by annual appropriations.
A.
Explanation. In recognition of the fact that the plan must comply
in form, content, and operation with certain provisions of the Code,
and in spite of the limited applicability of such provisions to the
normal operation of the plan, the following subsections of this section
detail the limitations and parameters applicable to maintaining favorable
tax treatment of funds contributed to the plan under federal law.
B.
LEASED EMPLOYEE
LIMITATION YEAR
Definitions. The following definitions apply for purposes of this
section only:
Effective as of January 1, 1997, any person (other than an
employee of the recipient) who pursuant to an agreement between the
recipient and any other person ("leasing organization") has performed
services for the recipient [or for the recipient and related persons
determined in accordance with Code Section 414(n)(6)][1] on a substantially full-time basis for a period of at
least one year, and such services are performed under primary direction
or control by the recipient.
The plan year.
[1]
Editor's Note: For Internal Revenue Service regulations, See
26 U.S.C. § 1 et seq.
C.
Leased employees and independent contractors. Leased employees and
independent contractors are not eligible to participate in this plan.
Any person whom the employer does not regard as being an employee
shall not be eligible to participate.
D.
Limited on compensation. Compensation is subject to the limitation
under Code Section 401(a)(17), which is $230,000 for the plan year
beginning in 2008. The limit is automatically adjusted periodically,
without formal amendment, for changes in the law and cost-of-living
adjustments under Code Section 401(a)(17).
E.
Maximum annual benefit.
(1)
General rule. Except as otherwise provided, this plan shall at all
times comply with the provisions of Code Section 415 and the regulations
thereunder, the terms of which are specifically incorporated herein
by reference. If a benefit payable to a participant under this plan
would otherwise exceed the limit under Code Section 415, the benefit
will be reduced to the maximum permissible benefit.
(2)
Effective date. If there is more than one permissible effective date
for any required change in the Code Section 415(b) provisions, then
the change shall be effective as of the latest permissible effective
date; however, any adjustment in the dollar limit under Code Section
415(b)(1)(A), whether required or permissible, shall take effect automatically
as of the earliest permissible effective date. The "applicable mortality
table" in Rev. Rul. 2001-62 became effective as of December 31, 2002.
For the purposes of Code Section 415(b)(1)(A), effective as of January
1, 2008, the "applicable mortality table" and "applicable interest
rate" are found in Rev. Rul. 2007-67. The "applicable mortality table"
in Rev. Rul. 2001-62 was effective from December 31, 2002, through
December 31, 2007. The "applicable mortality table" and "applicable
interest rate" shall be automatically adjusted for changes in the
law and IRS announcements.
[Amended 5-21-2018 by Ord. No. 1907]
(3)
No reduction in accrued benefits. Notwithstanding the above, no change
in the limits under this section shall reduce the benefit of any participant.
(4)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(b) or (e),
and if the aggregated benefits would otherwise exceed the limit under
Code Section 415(b) or (e), then benefits shall be reduced first under
this plan. [Historical Note: Code Section 415(e) applied for Limitation
Years beginning prior to 2000.][2]
[2]
Editor's Note: Said 26 U.S.C. § 415(e) was repealed
Pub. L. 104-188, title I, § 1452(a), Aug. 20, 1996, 110
Stat, 1816.
(5)
Mandatory contributions. Participant contributions are annual additions,
and any benefit attributable to participant contributions is not included
in the benefit subject to the limits of Code Section 415(b) or (e).
This subsection does not apply to contributions "picked up" in accordance
with Code Section 414(h).
(6)
Permissive service credit. Effective as of January 1, 1998, if a
participant makes a purchase of permissive service credit [within
the meaning of Code Section 415(n)] under the plan, the benefit derived
from the contributions made to purchase the service credit shall be
treated as part of the benefit subject to the limitations under this
section.
(7)
To the extent applicable, the above provisions and limitations shall
be subject to Code Section 415(b)(2)(G).
F.
Limit on annual additions.
(1)
Annual additions. Except as otherwise provided, annual additions
(which include participant contributions) under this plan shall at
all times comply with the provisions of Code Section 415(c) and the
regulations thereunder, the terms of which are specifically incorporated
herein by reference. If an annual addition would otherwise exceed
the limit under Code Section 415(c), the excess annual addition will
be eliminated in accordance with methods permitted under Rev. Proc.
2008-50 (Rev. Proc. 2006-27 prior to 2009) or its successor.
(2)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(c), and
if the annual additions would otherwise exceed the limit under Code
Section 415(c), annual additions will first be reduced under the other
plan. If there is more than one other plan, annual additions will
first be reduced under the plan with the greatest amount of annual
additions.
(3)
Effective date. The limits under which Code Section 415(c) are adjusted
periodically in accordance with changes in the law or cost-of-living
adjustments without the need for a plan amendment. If there is more
than one permissible effective date for any required change relating
to Code Section 415(c), then the change shall be effective as of the
earliest permissible effective date.
(4)
415(c) compensation. For the purposes of this section, "compensation"
includes only those items specified in Treas. Reg. § 1.415(c)-2(b)1
or (2) and excludes all items listed in Treas. Reg. § 1.415(c)-2(c),
the terms of which are specifically incorporated herein by reference.
Effective as of January 1, 2009, to the extent required by the Heroes
Earning Assistance Relief Tax Act of 2008 (HEART Act), differential
wage payments shall be included in compensation for the purposes of
applying the limits on annual additions under IRC Section 415(c).
This provision shall be applied to all similarly situated individuals
in a reasonably equivalent manner.
[Amended 5-21-2018 by Ord. No. 1907; 3-18-2019 by Ord. No. 1916]
G.
Direct rollovers.
(1)
Effective as of January 1, 1993, if a participant, a spousal beneficiary,
or an alternate payee (who is a spouse or former spouse of a participant)
is entitled (under other provisions of this plan) to receive an "eligible
rollover distribution" of at least $200, the distributee may elect
that the Plan Administrator transfer all or part (provided that the
part is at least $500) to any "eligible retirement plan" capable of
accepting such a transfer.
(2)
For purposes of this section, the following definitions shall apply:
(a)
An "eligible rollover distribution" is 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 i) 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; ii) any distribution to
the extent such distribution is required under Code Section 401(a)(9);
iii) 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), and iv) effective
as of January 1, 2002, any hardship distribution. Effective as of
January 1, 2002, clause (iii) does not apply to any after-tax participant
contributions that are paid to an individual retirement account or
annuity described in Code Section 408(a) or (b) or to a qualified
defined contribution plan described in Code Section 401(a) or 403(a)
or effective January 1, 2007, a 403(b) annuity contract 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. Effective as of January 1, 2007 an "eligible rollover
distribution" shall include any eligible rollover distribution (including
distributions containing after tax contributions) that is transferred
in a direct trustee-to-trustee transfer to a 403(b) annuity contract
or a qualified trust under Code Section 401(a) 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.
(b)
An "eligible retirement plan" is an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), an annuity plan described in Code
Section 403(a), or a qualified trust described in Code Section 401(a)
that accepts the distributee's eligible rollover distribution. However,
in the case of an eligible rollover distribution to a surviving spouse,
prior to January 1, 2002, an eligible retirement plan was an individual
retirement account or individual retirement annuity. Effective as
of January 1, 2002, an "eligible retirement plan" includes an annuity
contract described in Code Section 403(b) and an eligible plan under
Code Section 457(b) 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. Effective January
1, 2008, an eligible retirement plan shall include a Roth IRA as that
term is defined in Code Section 408A(b) that agrees to separately
account for amounts transferred from this plan.
(c)
A distributee 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
Section 414(p)(11), are distributees with regard to the interest of
the spouse or former spouse.
(d)
Effective as of January 1, 2002, an employee may, in accordance
with Code Section 457(e)(17), make a trustee-to-trustee transfer from
an eligible deferred compensation plan [as defined in Code Section
457(b)] to this plan for the purpose of purchasing service credit
(to the extent that such purchases are permitted under the terms of
the plan) or repaying a cashout of contributions refunded under the
plan.
H.
Nonspouse beneficiaries. Effective as of January 1, 2007, if a beneficiary
who is not a surviving spouse is entitled to receive what would otherwise
be an "eligible rollover distribution," the beneficiary may, in accordance
with Code Section 402(c)(11), make a trustee-to-trustee transfer of
that amount to an IRA or individual retirement annuity (other than
an endowment contract), provided that:
I.
Minimum required distributions.
(1)
Notwithstanding any provision in this plan to the contrary, the distribution
of a participant's benefits shall be made in accordance with the requirements
and conditions of and shall otherwise comply with Code Section 401(a)(9).
For purposes of complying with Code Section 401(a)(9), life expectancies
shall be determined in accordance with the 1987 proposed regulations
prior to January 1, 2003, and with the final regulations [§ 1.401(a)(9)-1
through § 1.401(a)(9)-9] on or after January 1, 2003.
(2)
Effective as of January 1, 1997, distribution of a participant's
benefits shall begin not later than April 1 of the calendar year following
the later of:
(a)
The calendar year in which the participant attains age 70 1/2;
or
(b)
The calendar year in which the participant retires. Distributions
must be made over a period not exceeding the life of the participant
or the joint lives of a participant and his beneficiary.
(c)
Distributions to a participant and his beneficiaries shall only
be made in accordance with the incidental death benefit requirements
of Code Section 401(a)(9)(G) and the regulations thereunder.
(d)
This section does not authorize the payment of any benefit in
any form not permitted under another provision of the plan.
J.
Approved domestic relations orders. Upon approval by the Plan Administrator
of a domestic relations order as an "approved domestic relations order,"
all rights and benefits provided to a participant in this plan shall
be subject to the rights afforded an "alternate payee" pursuant to
an approved domestic relations order to the extent provided by the
laws of Pennsylvania. In no event shall a domestic relations order
be approved which expands the rights and benefits otherwise available
to the participant under the plan.
K.
Credit for qualified military service. Effective as of December 12,
1994, notwithstanding any provision of this plan to the contrary,
contributions, benefits and service credit with respect to qualified
military service will be provided in accordance Code Section 414(u).
L.
Vesting upon plan termination. Upon the termination of this plan,
or complete discontinuance of contributions [within the meaning of
pre-ERISA Code Section 401(a)(7)] to this plan, each employee as of
the date of such termination or discontinuance shall become vested
to the extent that the plan is funded.
M.
Consent for lump-sum distributions. Effective January 1, 2006, notwithstanding
any other provision of the plan, any distribution to a participant
made prior to the earlier of age 62 or normal retirement age of an
amount in excess of $1,000 that is an eligible rollover distribution
as set forth in the plan and the Code shall be made only upon consent
of the participant.
N.
Pickup contributions. As set forth in Resolution No. 2885 effective
April 1, 2012:
(1)
The proper officers of the City and their delegates are authorized
to take any and all steps necessary to establish and implement a "pickup"
contribution program in accordance with the requirements of Section
414(h)(2) of the Internal Revenue Code of 1986, as amended.
(2)
Any such program shall provide that all mandatory employee contributions
designated as such made on or after the effective date of this provision
shall be paid or "picked up" by the City and thereafter treated as
employer contributions for federal income taxation purposes consistent
with Section 414(h)(2) of the Internal Revenue Code of 1986, as amended.
Affected employees shall not have the option of choosing to receive
the picked-up contributions directly in lieu of having them contributed
to the plan. employee contributions made to the plan prior to the
effective date of this provision shall not be affected.
(3)
Notwithstanding the foregoing, contributions so picked up shall continue
to be treated as mandatory employee contributions for all purposes
of state and local law in the same manner and to the same extent as
mandatory employee contributions made prior to the effective date
of this provision, including, by way of illustration and not limitation,
being treated as part of the affected employee's compensation for
both Pennsylvania and local income tax laws and for purposes of computing
any benefits under the affected employee's pension plan.
(4)
The proper employees of the City are directed to take all such actions
as may be necessary or beneficial in order to implement this provision,
and all prior actions, if any, of the City in conjunction with the
414(h)(2) matter are hereby confirmed and approved.
(5)
The City's establishment and implementation of a Section 414(h) pickup
program shall not result in any increase in the City's rate of contribution
to the plan.
O.
PPA and HEART Acts:
(1)
This plan is intended to comply with the Pension Protection Act of
2006 (PPA) and the Heroes Earnings Assistance Relief Tax Act (HEART
Act). Notwithstanding anything in this plan to the contrary, this
plan shall be interpreted so as to comply with the applicable required
provisions of the PPA and the HEART Act.
(2)
Effective for participant deaths occurring while performing qualified
military service [as defined in Code Section 414(u)] on or after January
1, 2007, the plan will provide retirement benefits and service credit
to the extent required by the HEART Act.
P.
Windsor Case. Effective June 23, 2013, the terms "spouse," "husband,"
"wife," "widow" and "widower" shall include individuals married to
persons of the same sex if the individuals are legally married under
state law. Also, where the term "widow" appears, it shall be read
to include "widower."
[Added 5-21-2018 by Ord.
No. 1907; amended 3-18-2019 by Ord. No. 1916]
Q.
Full vesting at normal retirement age. A participant's normal retirement
benefit shall be 100% vested upon attainment of his normal retirement
date.
[Added 5-21-2018 by Ord.
No. 1907; amended 3-18-2019 by Ord. No. 1916]
R.
Exclusive benefit. The plan is maintained for the exclusive benefit
of its participants and beneficiaries.
[Added 5-21-2018 by Ord.
No. 1907; amended 3-18-2019 by Ord. No. 1916]
A.
Amendment. Council may amend this plan at any time or from time to
time by ordinance or resolution, provided that:
(1)
No amendment shall deprive any member or beneficiary, as applicable,
of any of the benefits to which he is entitled under this plan pursuant
to state law;
(2)
No amendment shall provide for the use of funds or assets held under
this plan other than for the benefit of members or alternate payees,
and no funds contributed to the plan or assets of the plan shall,
except as provided below, ever revert to or be used or enjoyed by
the City except as set forth below; and
(3)
No amendment to the plan which provides for a modification of one
or more benefits shall be made unless an estimate of cost has been
prepared and presented to the Council.
B.
Termination of the plan. It is the present intention of employer
to maintain this plan indefinitely. Nevertheless, Council shall have
the power to terminate this plan in its entirety at any time (subject
to any limitations or conditions contained in state law) by an instrument
in writing executed in the name of the City.
C.
Automatic termination of contributions. Subject to the provisions
of Act 205 governing financially distressed municipalities, the liability
of the City to make contributions to the Pension Fund shall automatically
terminate upon liquidation or dissolution of the City, upon its adjudication
as bankrupt or upon the making of a general assignment for the benefit
of its creditors.
D.
Distribution upon termination. All 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 City
which effects such termination.
E.
Residual assets. If all liabilities to vested members 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 City insofar
as such return does not contravene any provision of law, and any remaining
balance, in excess of employer contributions and related earnings,
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 City 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 members in the plan, their beneficiaries
or their estates.
A.
Operation of the Pension Fund.
(1)
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 City, to pay the
expenses of administering the plan pursuant to authorization by the
City.
(3)
The City 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 City 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 City under
the plan, including contributions made pursuant to the provisions
hereof and the investments, reinvestment 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 City has exclusive authority and discretion to manage and
control the Pension Fund assets. The City may, however, appoint a
trustee, custodian and/or investment manager, at its sole discretion.
B.
Powers and duties of the City. With respect to the Pension Fund,
the City 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), and shall include the right to hold
funds on a temporary basis in accounts or investments that do not
bear interest.
(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 permitted 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 City 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 City may deem necessary to administer the Pension Fund.
(9)
To maintain and invest the assets of this plan on a collective and
commingled basis with the assets of other pension plans maintained
by the City, 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 commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder or to invest
in a group contract or other funding arrangement. In this connection,
the commingling 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 commingled
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 City, such trustee shall make such distribution only
at the direction of the City.
(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 City
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 City, taking into account the
interests of the members 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 nor 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.
(17)
If the City appoints a trustee, the trustee shall not be permitted
to retain such an investment manager except with the express written
consent of the City.
C.
Common investments. The City shall not be required to make separate
investments for individual members or to maintain separate investments
for each member'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 City and the trustee, unless
such compensation is prohibited by law. Such compensation, and all
expenses reasonably incurred by the trustee in carrying out his functions,
shall constitute a charge upon the City or the Pension Fund, which
may be executed at any time after 30 days' written notice to the City.
The City 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 themselves 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 City,
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 City or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the members, spouses, children, survivors and beneficiaries
and their estates. In making any such determination, the City 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.
Plan not a contract of employment. No employee of the City, nor anyone
else, shall have any rights whatsoever against the City or the Administrator
as a result of this plan, except those rights expressly granted to
them hereunder. Nothing herein shall be construed to give any employee
the right to remain an employee of the City.
B.
Gender and number. For purposes of the plan and wherever plainly
necessitated by the person or context, the masculine shall be read
for the feminine, and the singular shall be read for the plural.
C.
Expenses. To the extent permitted by state law, all expenses related
to the operation and administration of the fund and plan shall be
paid from the assets of the fund.
D.
Construction. The validity of the plan or any of its provisions shall
be determined and construed pursuant to the laws of the Commonwealth
of Pennsylvania, the federal government, and the agencies thereof.
E.
Severability of provisions. In the event that any provision, section,
subsection, paragraph, sentence, clause, or other part of the plan
shall be held to be invalid, such invalidity shall not affect or impair
any remaining provisions, sections, subsections, paragraphs, sentences,
clauses, or other parts of the plan.
F.
Headings. The headings and subheadings employed within the current
document have been inserted for convenience of reference and are to
be ignored in the construction of the provisions hereof.
G.
Incapacity of member or beneficiary. If any member shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of benefits hereunder, the Administrator, upon the receipt
of satisfactory evidence that such member is incapacitated to the
aforesaid extent and that another person or institution maintains
him, may provide for such payment of benefits hereunder to such person
or the institution maintaining him, and any such payments so made
shall be deemed for every purpose to have been made to such member.
Any benefits that become payable hereunder to any individual that
was a minor may be paid to the spouse, or they may be paid to the
guardian or committee of the individual who the Administrator feels
will apply the benefits to the care and support of the individual.
The payment of benefits to any such guardian or committee in accordance
with the directions of the Administrator shall be a full release and
discharge of the Administrator, the City and the Trustee for the amounts
so paid.
H.
Protective clause relative to administration. Subject to the provisions
of all laws applicable hereto, and unless otherwise specifically required,
no past, present, or future officer of the City shall be personally
liable to any participant, beneficiary, or other person under any
provision of the plan.
I.
Sole benefit. The income and principal of the plan are for the sole
use and benefit of the members covered hereunder and, to the extent
permitted by law, shall be free, clear and not in any way liable for
debts, contracts or agreements and from all claims and liabilities
now or hereafter incurred by any member, beneficiary, or alternate
payee.
J.
Benefits payable from other plans. The pension or retirement benefits
payable hereunder for any month shall be reduced by any pension benefits
from pension plans heretofore established by a private organization
or association for the members, but only to the extent that the commonwealth
or the City shall have contributed to such pension plan monies raised
by taxation. If the Commonwealth or the City shall have contributed
monies raised by taxation to a pension plan established by a private
organization or association for the members, the pension benefits
shall be used to reduce or offset pension or retirement benefits paid
hereunder only by that proportion of the total pensions payable by
virtue of the assets attributable to contributions of monies raised
by taxation bears to total assets of said pension plan.
K.
Reversion of contributions. If a contribution is made by the City
by mistake of fact, the contribution may be returned to the City within
one year after the payment of the contribution.
L.
Spendthrift and assignment. The benefits under the plan shall not be subject to attachment, execution, levy, garnishment or other legal process and shall be payable only to the member, his survivors or his designated beneficiary, or alternate payee and shall not be subject to assignment or transfer except as provided in § 81-26J hereof.
M.
Heading. Any headings or subheadings in this plan are inserted for
convenience of reference only and are to be ignored in the construction
of any provisions hereunder.
N.
Errors. A misstatement in the age, sex, length of service, the date
of employment or birth, or compensation of the participant, or any
other such matter, shall be corrected when it becomes known that any
such misstatement of fact has occurred.
