[1]
Editor's Note: Ord. 573, adopted 12/9/2015, provided for the
restatement of the Police Employee Pension Plan in its entirety, with
no changes to the existing Plan text, per the directive of the Township.
[Ord. 464, 12/8/1999, Art. 1; amended by Ord. 536, 7/15/2009;
and by Ord. 560, 9/12/2012]
As used in this subpart, the following terms shall have the
meanings indicated:
The age attained by the employee on his last birthday.
The average actual monthly earnings of the employee, at any
time of reference, computed over the last 36 months (or the member's
total period of continuous employment by the Township prior to such
date of reference, if shorter).
The Board of Supervisors, Lower Southampton Township.
Any child of a member, whether natural or adopted, including
any stepchild residing in such member's household at the time of his
death. Any child of a member conceived prior to such member's death
and thereafter born to the member's spouse shall be considered a dependent
child from his date of birth.
For employees hired before January 1, 1990, actual earnings,
including overtime, longevity increments, sick leave redemption payments
and other direct monetary compensation, but excluding reimbursed expenses
or payments in lieu of expenses, nonsalary compensation (including,
but not limited to, fringe benefits provided by the Township) or any
other payments or allowances (such as uniform allowances). For employees
hired after January 1, 1990, "sick leave redemption payments" shall
be excluded from the calculation of earnings.
The forgoing notwithstanding, for plan years beginning on
and after January 1, 1989, and prior to January 1, 1994, earnings
in excess of $200,000 [as adjusted pursuant to § 401(a)(17)
of the Internal Revenue Code, as amended] shall be disregarded. For
plan years beginning on and after January 1, 1994, earnings in excess
of $150,000 [as adjusted pursuant to § 401(a)(17) of the
Code] shall be disregarded. For plan years beginning on and after
January 1, 2002, the earnings shall not exceed $200,000 [as adjusted
pursuant to § 401(a)(17) of the Code].
December 8, 1999.
Any person in the employ of the Township Police Department
who is classified as a police officer and whose customary employment
by the Township is for at least five months per year.
All assets held by the trustee under the trust agreement.
Any employee who has satisfied the eligibility requirements of § 1-702 hereof and who is, at the time of reference, making such contributions as required under § 1-703.1 hereof.
The date on which a member has accumulated 25 years of service
and attained age 52. Effective January 1, 1998, "normal retirement
date" shall be the date on which a member has accumulated 25 years
of service and attained age 51. "Normal retirement date" for members
who have accumulated 12 years of service as of December 31, 1989,
shall be the date on which these members have accumulated 20 years
of service and attained age 55.
The Police Employees Pension Plan of Lower Southampton Township
set forth herein, as the same may be amended from time to time.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
A member's aggregate period of employment with the Township
as an employee and shall include all time spent by an employee (subsequent
to his employment as an employee) in the armed services of the United
States on active military duty, provided he returns to the employment
of the Township as an employee within six months after his discharge
from such active duty.
The date on which a member applying for benefits under § 1-704.3
would have satisfied the age and service requirements for normal retirement.
The Board or its duly elected or appointed successors in
office.
Any condition or any service-connected injury, or any disease,
injury or impairment, excluding nonservice-connected illnesses or
injuries, which may qualify the police employee for disability pension
under the Federal Social Security Administration Program (Title II)
or its successor program. However, should either the police employee
fail to apply for such benefits, or for any reason a determination
of eligibility for federal social security pension and disability
benefits is not made, the determination as to whether the police employee
is totally disabled may then be made by the Supervisors. The determination
of the Supervisors as to whether the police employee or the permanently
disabled police employee qualifies under the terms hereof so as to
receive a disability pension may be reviewed by the Supervisors upon
cause shown. Should the Social Security Administration find no permanent
or total disability, the Supervisors can, regardless, determine that
a police employee is qualified to receive a disability pension if
he or she is unable to perform or is incapable of performing the functions
and duties of a police officer. Nonservice-connected disability benefits
are specifically excluded from this definition of "total disability."
Township of Lower Southampton.
Any person (including a corporate fiduciary) appointed by
the Board to serve in that capacity under the trust agreement.
The agreement between the Township and the trustee establishing
the terms by and under which the fund shall be invested, distributed,
accounted for and terminated, as the same now exists and may hereafter
be amended.
[Ord. 464, 12/8/1999, Art. 2]
1.
All police officers who are employees as of the effective date shall
be members as of such date, provided they make the contributions required
under § 1-723.1 hereof.
2.
Any person employed as a police officer who becomes an employee after
the effective date shall become a member on the first day of the month
coinciding with or next following the date he becomes an employee
by completing the forms and providing the data required by the Board
for application for membership, provided he makes the contributions
required under § 1-703.1.
[Ord. 464, 12/8/1999, Art. 3]
1.
Member contributions. Each member shall contribute to the fund a
portion of gross compensation to maintain the actuarial soundness
of the fund, member contributions required by this subsection shall
be offset, dollar for dollar, by funds obtained and paid into the
fund from Fraternal Order of Police or Police Benevolent Association
sponsored events or fund-raisers. The Township shall be authorized
to collect member contributions through regular payroll deductions
and shall be authorized and empowered to use such member contributions
to pay premium costs for any disability insurance plan maintained
to fund the plan or to pay benefits under the plan.
2.
Township contributions. Subject to the provisions of §§ 1-710 and 1-711, the Township shall contribute the amounts certified by the fund's actuary as necessary to provide the benefits contemplated by this plan after credit has been allowed for any state, public, police and member contributions, insurance proceeds and any other accretions or interest earned on the fund.
3.
Other contributions. Contributions made by the State Treasurer from
the proceeds of taxes paid by foreign casualty insurance companies
on policy premiums for purposes of pension retirement or disability
benefits for policemen shall be used as follows: (A) to reduce the
unfunded liability; or (B) after such liability has been fully funded,
to apply against the annual obligation of the Township for future
service costs; or (C) to the extent the payment is in excess of such
obligation, to reduce member contributions required under Subsection
1 hereof. Funds derived from sources other than as provided in Subsections
1 or 2 or as stated in this subsection shall be applied in the same
manner as the investment yield of the fund including, if determined
to be appropriate by the Board, to the reduction of Township and member
contribution thereunder.
[Ord. 464, 12/8/1999, Art. 4; as amended by Ord. 515, 5/10/2006,
§ 1; Ord. 535, 4/7/2009]
1.
Normal retirement. Each member may retire, upon 90 days' prior written
notice, on or at any time after his normal retirement date. Any member
so retiring shall be entitled to receive a monthly pension equal to
50% of his average applicable compensation, commencing, unless otherwise
required by applicable law, on the first day of the month next following
the date when a member has accumulated 25 years of service and attained
age 52 (age 51 after January 1, 1998) or his date of actual retirement,
whichever is later, and ending with the payment made as of the first
day of the month in which his death occurs. "Normal retirement date"
for members who have accumulated 12 years of service as of December
31, 1989, shall be the date on which these members have accumulated
20 years of service and attained age 55.
2.
Postponed retirement. Should a member continue as an employee beyond
his normal date, he shall remain a member of the plan and shall continue
to make the contributions required under § 1-703.1 hereof
until he actually retires or otherwise ceases to be an employee.
3.
Early retirement. Should any member cease to be an employee prior
to his normal retirement date (for any reason other than death or
total disability), but after he has completed 12 years of continuous
service, and choose to vest under § 1-706.2, he shall be
entitled to receive a partial pension benefit commencing on the first
day of the month next following his attainment of age 52 (age 51 after
January 1, 1998) or his retirement from the Department of Police,
whichever is later, and ending with the payment made as of the first
day of the month in which his death occurs. Such partial pension benefit
shall be equal to the former member's average applicable compensation,
determined at the time he ceased to be an employee, multiplied by
a fraction, the numerator of which is his actual years of service
and the denominator of which is the number of years service the former
member would have rendered had he continued to work until his superannuation
retirement date.
4.
Disability retirement.
A.
Should any member suffer total disability, he shall be entitled to
receive a monthly pension benefit equal to 50% of his average applicable
compensation, determined at the time he became so disabled, commencing
on the first day of the month next following a determination by the
Board of total disability and ending with the payment made as of the
first day of the month in which his death occurs. The Board shall
have the right to require disabled members to present evidence of
total disability and of the continuance of such condition from time
to time. As a precondition to the continued payment of disability
benefits, the Board shall also have the right to require members,
from time to time, to submit to medical examinations by one or more
licensed medical practitioners selected by it. Nonservice-connected
disability retirement benefits are specifically excluded from this
subsection.
B.
A member who qualifies for and receives a service-connected disability
pension under this subsection shall have the workers' compensation
payments that the member is eligible to receive for the same service-related
injury reduced by the amount of the monthly pension payment. In the
event the member has already received the workers' compensation payment,
the monthly pension payment shall be reduced by the amount of workers'
compensation received.
5.
Length of service increments. Any member who has completed 26 or
more years of service shall receive a length of service increment
of $100 per month. Such length of service increments shall be paid
in addition to other pension amounts payable hereunder. Effective
January 1, 2009, an additional service increment of $50 per month
shall be provided in addition to the service increment heretofore
provided in this subsection to police employees who retire and have
rendered 27 or more years of service up to a maximum of 30 years of
service.
6.
Cost of living adjustment. Effective January 1, 2008, the Township
shall implement a cost-of-living adjustment in accordance with the
consumer price index from the year in which the police member last
worked but not greater than an annual increase of 1%, and the total
cost-of-living adjustment shall not exceed 10%. All police employees
employed in active service as of January 1, 2005, shall be eligible
for this adjustment upon satisfying the requirements for receipt of
a normal pension benefit.
[Ord. 464, 12/8/1999, Art. 5; as amended by Ord. 515, 5/10/2006,
§ 2; Ord. 529, 9/5/2007, § I; Ord. 535, 4/7/2009;
and Ord. 564, 5/14/2014]
1.
Spouse's benefit. In the event of the death of a member, whether prior to or after his normal retirement date or total disability, there shall be paid to the member's surviving spouse, if any, a monthly pension benefit commencing on the first day of the month in which the member dies. The spouse's benefit provided hereunder shall be equal to 75% of the monthly benefit, including length of service increments, that was being paid to the member at the time of his death or that would have been payable to him had he qualified for benefits pursuant to § 1-704 as of his date of death.
2.
Dependent child's benefit. If a member should die without a spouse, or if the spouse survives and subsequently dies, there shall be paid to the guardian of the estate of each surviving dependent child of such member a monthly pension benefit commencing on the first day of the month next following the member's death or his spouse's death, as the case may be, and ceasing on the first day of the month in which such dependent child either attains age 18, or age 23 if the child is attending college, or dies, whichever first occurs. The benefit payable to a member's dependent children as provided hereunder shall be proportionally allocated among such dependent children and, in the aggregate, shall be equal to 75% of the monthly benefit, including length of service increments, that was being paid to the member at the time of his death or that would have been payable to him had he qualified for benefits pursuant to § 1-704 hereof as of his date of death; provided, however, that the aggregate payment of all monthly dependent child benefits hereunder shall not exceed the monthly benefit that was being paid to the member's surviving spouse or that would have been payable to such surviving spouse if one had survived the member. As each dependent child of a member ceases to be eligible for benefits hereunder, such dependent child's share shall be proportionately allocated among the member's remaining dependent children who continue to be so eligible. For purposes of this section, the phrase "attending college" shall mean being enrolled in an institution of higher learning and carrying a minimum course load of seven credits per semester.
3.
Minimum death benefit. If a member is not survived by a spouse or
dependent child, or if the total death benefits paid pursuant to Subsections
1 and 2 hereof were less than the aggregate contributions made by
the member prior to his death (plus six-percent interest thereon compounded
annually from the plan year of deposit to the plan year of the member's
death), then a death benefit equal to the excess of the member's contributions
(with interest as aforesaid) over the aggregate benefits previously
paid, if any, to the member and his spouse and dependent children
shall be paid in accordance with Subsection 4 hereof.
4.
The death benefit provided under Subsection 3 above shall be paid
to the member's beneficiary as designated by him on forms provided
by and filed with the Township. If a member failed to designate a
beneficiary or is not survived by his designated beneficiary, the
benefits payable hereunder shall be paid equally to the member's parents
or to the survivor of them; or if the member is survived by neither
of his parents then to his estate. If a member dies intestate and
without a surviving heir at law or designated beneficiary, the death
benefit otherwise payable pursuant to Subsection 3 shall remain part
of the plan and shall be used to proportionately reduce other members'
contributions required by § 1-703.1 hereof.
5.
Killed in service benefit. Killed in service benefits shall be provided
in accordance with Act 51 of 2009, 53 P.S. § 891 et seq.
6.
Cost of living adjustment. Effective January 1, 2008, the Township
shall implement a cost-of-living adjustment in accordance with the
consumer price index from the year in which the police member last
worked but not greater than an annual increase of 1%, and the total
cost-of-living adjustment shall not exceed 10%. All police employees
employed in active service as of January 1, 2005, shall be eligible
for this adjustment upon satisfying the requirements for receipt of
a normal pension benefit.
[Ord. 464, 12/8/1999, Art. 6]
1.
A member who, prior to his normal retirement date, death or total
disability, ceases to be an employee for any reason other than an
authorized leave duly approved by the Board, and who chooses not to
vest, shall be entitled to a refund of his member contributions then
on deposit in the fund, plus four-percent interest thereon, compounded
annually, but calculated so as to disregard fractional plan years
during which such member contributions were held in the fund.
2.
Any member who has 12 years of continuous service as an employee
shall have a vested right to a benefit hereunder; provided, however,
that if any such member ceases to be an employee prior to completing
25 years of service, he shall file written notice of his intention
to so vest with the Board within 90 days of the date he so ceased
to be an employee. In the absence of such written notice, the refund
of member contributions authorized by Subsection 1 above shall become
payable.
[Ord. 464, 12/8/1999, Art. 7]
1.
Refund benefits distributable pursuant to § 1-706.1 and
death benefits distributable pursuant to § 1-705.3 shall
be paid in the form of a lump sum, upon receipt of such proof forms
as may be required by the Board from time to time. Notwithstanding
any provision herein to the contrary, refund benefits distributable
pursuant to § 1-706.1 may not be withdrawn by any member
who has become vested in accordance with § 1-706.2 without
the Board's express written consent.
2.
The normal form of all other benefits payable hereunder to a member
shall be a pension for his life, commencing on the date specified
and ending with the payment made on the first day of the month in
which the member dies.
[Ord. 464, 12/8/1999, Art. 8]
1.
It shall be the duty of the trustee to pay the benefits provided in §§ 1-704, 1-705 and 1-706 to members and/or their beneficiaries in accordance with instructions received from the Board; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
2.
The Township may employ actuaries, investment advisors, counsel or
other professional consultants, from time to time, in connection with
the operation of the fund or of this plan. Costs, fees and administrative
expenses incurred under this section are to be paid from the fund.
3.
The trustee shall make a determination of the fair market value of
the fund and commission reports from the actuary as needed and as
required by applicable law.
[Ord. 464, 12/8/1999, Art. 9]
1.
The plan shall be administered by the Board. In addition to the Supervisors,
the Board shall have a secretary who may be the Secretary of the Township.
The Board may make and adopt rules and regulations for the efficient
administration of the plan.
2.
The Board shall keep all data, records and documents pertaining to
the administration of the plan and shall provide all such data, records
and documents to the trustee, the actuary and any other professional
whose services are employed pursuant to § 1-708.2 hereof.
3.
The Board shall construe the plan, determining any and all questions
of fact arising thereunder, and shall make all decisions required
of it under the plan or the trust agreement. Any such decisions made
or actions taken thereon shall be final and conclusive. The Board
may correct any defect, supply any omission or reconcile any inconsistency
in such manner and to such extent as it shall deem expedient to effectuate
the terms of the plan, and it shall be the sole judge of such expediency.
All actions taken by the Board shall be properly recorded and maintained.
4.
The Board shall serve without bond, except as may otherwise be required
by law, and without compensation for its administrative services hereunder.
5.
The Supervisors shall be free of all liability for any act or omission,
except by their willful misconduct or gross negligence, and each of
them shall be fully indemnified by the Township against all judgments
and costs, including counsel fees, incurred in the defense of actions
brought against them.
6.
The Board shall make available to all active, retired, disabled and
terminated members and their beneficiaries, for examination during
normal business hours, such records as pertain to the person examining
the plan, its income, accounts, investments and the like.
7.
To enable the Board to perform its functions, the Township shall
supply full and timely information to the Board on all matters relating
to the earnings of all members, their service, retirement, death,
disability or termination of employment and such other pertinent facts
as the Board may require; the Board shall advise the trustee of such
of the foregoing facts as may be pertinent to the trustee's administration
of the fund and shall give the trustee proper instructions for carrying
out the purposes of the plan.
8.
The Board shall enact such rules and regulations for the conduct
of its business and for the administration of the plan as it may consider
desirable, provided the same shall not be in conflict with any of
the provisions of the plan.
9.
The Secretary, acting on behalf of the Board or the Chairman of the
Board, shall have the power to execute all documents necessary to
carry out the actions of the Board, and any person, partnership, corporation
or government agency shall accept such documents over such signature
or signatures as if executed by the Board.
[Ord. 464, 12/8/1999, Art. 10]
1.
It is the expectation of the Township that it will continue this
plan indefinitely and will contribute to the fund such amounts as
may be required by law or the collective bargaining contract; The
Township shall assess each member for contributions as provided by
the collective bargaining contract, consistent with applicable law.
2.
If the Township faithfully complies with the terms and provisions
hereof and as otherwise imposed by law, it shall have no obligation
or responsibility for the payment of benefits provided hereunder.
The Township shall cooperate with the members and their duly authorized
representatives (that is, the Township Police Benevolent Association)
in an effort to maintain the quality and integrity of the plan and
to inform the members, from time to time, as to balances, income,
expenses or other financial data involving the plan or fund, as well
as any rules or regulations affecting benefits, assessments or procedures
applicable to the plan or fund.
3.
Nothing contained in the plan shall be held or construed as a contract
or guarantee of employment or as creating any liability upon the Township
to retain any person in its service. The Township reserves its full
right to discontinue the services of any person, subject to provisions
of applicable law, without any liability except for salary or wages
that may be due and unpaid, whenever in its judgment its best interests
so require.
[Ord. 464, 12/8/1999, Art. 11]
1.
The Township reserves the right to amend the plan; provided, however,
that the consent of the trustee shall be required for any amendment
affecting the duties of the trustee hereunder, and no amendment shall
reduce any benefit then vested in a member or beneficiary. The Township
may, at any time, with or without cause, terminate the trustee.
2.
In the event of termination of this plan, the trustee, upon written
instructions from the Board, shall allocate the assets then remaining
in the fund, to the extent that such assets are sufficient, to active
members and retired and disabled members in the following order of
precedence:
A.
To the active members and retired and disabled members in an amount
equal to their respective contributions, reduced in the cases of retired
and disabled members by any prior distributions made to them.
B.
To provide benefits due retired and disabled members in the same
proportion that the pension earned by each such member bears to the
total pensions earned by all such members.
C.
To provide benefits due active vested members in the same proportion
that the pension earned by each such member to the date of plan termination
bears to the total pensions earned by all such members.
D.
To each of the remaining members in the same proportion the pension
credits earned by each such member to the date of plan termination
bears to the total pension credits so earned by all such remaining
members.
3.
After allocation of the assets, the Board shall determine whether
to operate the fund as the source of whatever payments the assets
so allocated will provide.
[Ord. 464, 12/8/1999, Art. 12; as amended by Ord. 539, 1/4/2009]
1.
No benefit under this plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge or encumbrance, nor
to seizure, attachment or other legal process for the debts of any
member or his beneficiary, except as follows:
A.
All or a portion of the benefit payable to a member may be divided
pursuant to a domestic relations order determined to be a "qualified
domestic relations order (QDRO)," as defined in § 414(p)
of the Internal Revenue Code of 1986, as amended, and paid to an alternate
payee. The benefit awarded to the alternate payee pursuant to the
QDRO shall be paid at the same time and in the same manner as the
member's benefit from which it was derived.
B.
The Board shall establish procedures to determine whether an order
is a QDRO, to notify the member and alternate payee of such determination
and to administer benefit distributions pursuant to a qualified order.
C.
For purposes of this section, the term "alternate payee" means those
individuals described in § 414(p)(8) of the Internal Revenue
Code of 1986, as amended.
2.
Any person dealing with the trustee may rely upon a copy of the plan,
and any amendments thereto, certified to be true and correct by the
trustee.
3.
In no circumstance, whether upon amendment or termination of this
plan or otherwise, shall any part of the fund be used for or diverted
to any purpose other than the exclusive benefit of members and/or
their beneficiaries until all of the actuarial obligations to such
members and/or their beneficiaries have been met.
4.
If the Board deems any person incapable of receiving benefits to
which he is entitled by reason of minority, illness, infirmity or
other incapacity, it may direct the trustee to make payment directly
for the benefit of such person or to any person selected by the Board
whose receipt shall be a complete acquittance therefor. Such payment
shall, to the extent thereof, discharge the Township, the trustee
and the fund of all liability.
5.
In the case of all provisions herein, the singular shall include
the plural, and the masculine shall include the feminine.
6.
Should any provision of this plan be determined to be void by any
court, the plan shall continue to operate and, to the extent necessary,
shall be deemed not to include the provision determined to be void.
7.
Headings and captions provided herein are for convenience only and
shall not be deemed part of the plan.
8.
This plan shall be construed and applied under the laws of the Commonwealth
of Pennsylvania.
[Ord. 464, 12/8/1999; as added by Ord. 481, 9/25/2002; as
amended by Ord. 533, 2/11/2009]
Definitions. As used in this section, the following terms shall
have the meanings indicated:
Deferred retirement option program.
Separate account created to accept DROP participants' monthly
pension check while a DROP participant.
Eligibility. Effective January 1, 2002, members of the Lower
Southampton Township Police Department who have not retired prior
to the implementation of the DROP program may enter into DROP on the
first day of any month following completion of 25 years of credited
service and attaining the age of 51.
Written election. A member of the Police Department electing
to participate in the DROP must complete and execute a "DROP option
form" prepared by the Township of Lower Southampton, which shall evidence
the member's participation in the DROP. The form must be signed by
the member and notarized and submitted to the Township of Lower Southampton
prior to the date on which the member wishes the DROP option to be
effective. The DROP option notice shall include an irrevocable notice
to the Township by the member that the member shall resign from employment
with the Lower Southampton Township Police Department effective on
a specific date (the "resignation date"). In no event shall the resignation
date be shorter than 12 months or longer than 60 months from the execution
of the DROP option form. An officer shall cease to work as a Township
police officer on the officer's resignation date, unless the Township
terminates or honorably discharges the officer prior to the resignation
date. In addition, all retirement documents required by the Police
Pension Board Administrator must be filed and presented to the Pension
Board for approval of retirement and payment of pension. Once a retirement
application has been approved by the Police Pension Board, it is irrevocable.
Limitation on pension accrual. After the effective date of the
DROP option, the member shall no longer earn or accrue additional
years of continuous service for pension purposes.
Benefit calculation. For all retirement fund purposes, continuous
service of a member participating in the DROP shall remain as it existed
on the effective date of commencement of participation in the DROP.
Service thereafter shall not be recognized or used for the calculation
or determination of any benefits payable by the Lower Southampton
Township Police Pension Fund. The average applicable compensation
of the member for pension calculation purposes shall remain as it
existed on the effective date of commencement of participation in
the DROP. Earnings or increases in earnings thereafter shall not be
recognized or used for the calculation or determination of any benefits
payable by the pension fund. The pension benefit payable to the members
shall increase only as a result of cost of living adjustments in effect
on the effective date of the member's participation in the DROP or
by applicable cost of living adjustments granted thereafter.
Payments to the DROP account. The monthly retirement benefits
that would have been payable had the member elected to cease employment
and receive a normal retirement benefit shall, upon the member commencing
participation in DROP, be paid into the separate account established
to receive the participant's monthly pension payments. This account
shall be designated the "DROP account."
Accrual of nonpension benefits. After an officer elects to participate
in the DROP program, all other contractual benefits shall continue
to accrue with the exception of those provisions relating to the Police
Pension Plan and the buyback of accrued, but unused, sick or vacation
time. Prior to participating in the DROP program, an officer may request
payment for any accrued but unused sick or vacation time which the
Township would be obligated to buy back from the officer upon retirement.
An officer may utilize leave time during the DROP period, but the
Township shall not be required to buy back any such unused leave time
at the end of the DROP period.
Payout. Upon the termination date set forth in the member's
DROP option notice or such date as the Township separates the member
from employment, the retirement benefits payable to the member or
member's beneficiary, if applicable, shall be paid to the member or
beneficiary and shall no longer be paid to the member's deferred retirement
option account. Within 30 days following termination of a member's
employment pursuant to his participating in the DROP program, the
balance in the member's DROP account shall be paid to the member in
a single lump-sum payment or, at the member's option, in any fashion
permitted by law.
Disability during DROP. If a member becomes temporarily disabled
during his participation in DROP, the member shall receive disability
pay in the same amount as disabled police officers that are not participating
in DROP. In no event shall a member on temporary disability have the
ability to draw from his DROP account. However, notwithstanding any
other provision in this subsection, if an officer is disabled and
has not returned to work as of the date of his required resignation,
then such resignation shall take precedence over all other provisions
herein, and said officer shall be required to resign. Nothing contained
in this plan shall be construed as conferring any legal rights upon
any police employee or other person to a continuation of employment
nor shall participation in the DROP program supersede or limit in
any way the right of the Township to honorably discharge a police
employee based upon an inability to perform his or her full duties
as a police officer.
Death. If a DROP member dies before the DROP account balances
are paid, the participant member's legal beneficiary shall have the
same rights as the member to withdraw the account balance.
Forfeiture of benefits. Notwithstanding an officer's participation
in the DROP plan, an officer who is convicted or pleads guilty to
engaging in criminal misconduct which constitutes a "crime related
to public office or public employment," as that phrase is defined
in Pennsylvania's Pension Forfeiture Act, 43 P.S. §§ 1311
to 1314, shall forfeit his right to receive a pension, including any
amounts currently deposited in the DROP account. In such a case, the
member shall only be entitled to receive the contributions, if any,
made by the member to the fund, without interest.
Account manager. The Township and the Association will mutually
agree upon an investment manager to administer the DROP accounts.
The Township and the Association further agree that the Township shall
not be responsible for any investment loss incurred in the plan or
for the failure of an investment to earn a specific or expected return
or to earn as much as any other opportunity, whether or not such other
investment opportunity was offered or available to participants in
the plan.
Cost of management for DROP program. The Association and the
Township agree that any costs or fees associated with the management
of the DROP accounts shall be paid directly from the Police Pension
Fund and not by the Township.
Amendment. Any amendments to this section shall be consistent
with the provisions covering deferred retirement option plans set
forth in any applicable collective bargaining agreement and shall
be binding upon all future DROP participants and upon all DROP participants
who have balances in their deferred retirement option accounts. The
DROP plan may only be amended by a written instrument, not by any
oral agreement or past practice.
Effective date. The effective date of the changes in this section
is January 1, 2002; however, the implementation of the DROP program
will be provided as in this section.
Construal of provisions. An officer's election to participate
in the DROP program shall in no way be construed as a limitation on
the Township's right to suspend or terminate an officer for just cause
or to grant the officer an honorable discharge based upon a physical
or mental inability to perform his or her duties.
[Ord. 464, 12/8/1999; as added by Ord. 529, 9/5/2007, § I;
as amended by Ord. 536, 7/15/2009; and by Ord. 560, 9/12/2012]
1.
Tax qualification. The Township intends the pension fund to be a
qualified plan under § 401 of the Internal Revenue Code,
as amended, and that the trust be an exempt organization under § 501
of the Internal Revenue Code. The Trustees shall administer the pension
fund so as to fulfill this intent, including, but not limited to,
the provisions set forth in this subpart.
2.
Termination. In the event the pension fund should terminate, or if
there were to be a complete discontinuance of contributions to the
fund, the rights of all employees to benefits accrued to the date
of such termination or discontinuance, to the extent then funded,
shall be nonforfeitable.
3.
No benefit increase from forfeitures. In the event any forfeitures
arise, they shall not be used to increase benefits payable under the
plan.
4.
Minimum required distributions. Distributions from the pension fund
will comply with the requirements of § 401(a)(9) of the
Internal Revenue Code and the regulations thereunder, including the
following specific requirements:
A.
Distribution of a member's benefits will begin not later than the
later of April 1 of the calendar year following the calendar year
in which the employee attains age 70 1/2 or April 1 of the calendar
year following the calendar year in which the member retires.
B.
If distribution of a member's benefits commenced prior to the member's
death, any remaining benefits will be distributed at least as rapidly
as under the method of distribution used as of the date of the member's
death.
C.
If distribution of a member's benefits had not commenced prior to
the member's death, any portion of his or her benefits payable after
the member's death shall:
(1)
If payable to the member's surviving spouse, begin no later
than the end of the calendar year following the calendar year in which
the member would have attained age 70 1/2.
(2)
If payable to the member's dependent child or designated beneficiary
(as defined under the plan), begin no later than the end of the calendar
year following the calendar year in which the member died and extend
over a period not extending beyond the life expectancy of the beneficiary.
(3)
Otherwise, be distributed within five years of the member's
death.
5.
Maximum pension benefits. Notwithstanding any other provision in
this plan, all benefits distributed from the pension fund shall comply
with the limitations set forth in § 415 of the Internal
Revenue Code and applicable regulations thereunder. For this purpose,
earnings shall be determined in accordance with Internal Revenue Code
§ 415(c)(3). In the event it should become necessary to
reduce or restrict a benefit in order to comply with § 415(e),
the employer-provided portion of the benefit payable under this plan
shall be reduced or restricted to the extent necessary.
6.
Rollovers. This paragraph applies to distributions made on or after
January 1, 1993. Notwithstanding any provision of the plan to the
contrary that would otherwise limit a distributee's election under
this section, a distribute may elect, at the time and in the manner
prescribed by the trustees, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified
by the distributee in a direct rollover. If the plan makes a mandatory
distribution on or after March 28, 2005, greater than $1,000, and
the participant does not elect to have such distribution paid directly
to an eligible retirement plan specified by the participant in a direct
rollover or to receive the distribution directly, then the plan administrator
will pay the distribution in a direct rollover to an individual retirement
plan designated by the plan administrator. The following definitions
shall apply with regard to this subsection.
A.
"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 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 and the distributee's designated beneficiary or
for a specified period of 10 years or more; any distribution to the
extent such distribution is required under § 401(a)(9) of
the Internal Revenue Code; and the portion of any distribution that
is not includable in gross income.
B.
"Eligible retirement plan" is an individual retirement account described
in Code § 408(a); an individual retirement annuity described
in Code § 408(b); an annuity plan described in Code § 403(a);
a qualified plan described in Code § 401(a); an annuity
contract (or custodial agreement) described in Code § 403(b);
or an eligible deferred compensation plan described in Code § 457(b)
and maintained by an employer described in Code § 457(e)(1)(A),
which accepts the participant's, the participant's spouse or alternate
payee's eligible rollover distribution.
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 § 414(p)
of the Code, are distributees with regard to the interest of the spouse
or former spouse.
D.
"Direct rollover" is a payment by the plan to the eligible retirement
plan specified by the distributee.
[Ord. 442, 10/9/1996, § 1; as amended by Ord. 522,
3/14/2007, § 1]
For the purposes of this subpart, the following definitions
shall apply:
The account maintained for each participant with respect
to his total interest in the plan resulting from contributions made
on his behalf and any investment income.
Total compensation with the employer during a calendar year.
The individual who is designated as the beneficiary under
§ 1.5 p. 2 of the plan and is the designated beneficiary
under Code §§ 401(a)(9) and 1.401(a)(9)-1, Q&A-4,
of the Treasury regulations.
A calendar year for which a minimum distribution is required.
For distributions beginning before the participant's death, the first
distribution calendar year is the calendar year immediately preceding
the calendar year which contains the participant's required beginning
date. For distributions beginning after the participant's death, the
first distribution calendar year is the calendar year in which distributions
are required to begin under § 1-727.2B. The required minimum
distribution for the participant's first distribution calendar year
will be made on or before the participant's required beginning date.
The required minimum distribution for other distribution calendar
years, including the required minimum distribution for the distribution
calendar year in which the participant's required beginning date occurs,
will be made on or before December 31 of that distribution calendar
year.
The original effective date of the plan is January 1, 1986.
Lower Southampton Township, Bucks County, Commonwealth of
Pennsylvania.
The first day of January or the first day of July coincident
with or next following the completion of one year of service in which
an employee is working at least 35 hours per week. Notwithstanding
the preceding sentence, any employee hired prior to January 1, 1997,
will continue to be subject to the 1,000 hours of service during one
year of service eligibility requirement that was in effect prior to
this amendment.
Lower Southampton Township Nonuniformed Employees' Pension
Plan Fund.
Life expectancy as computed by use of the single life table
in § 1.401(a)(9)-9 of the Treasury regulations.
Any employee who meets the requirements set forth in § 1-724 of this subpart.
The account balance as of the last valuation date in the
calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions
made and allocated or forfeitures allocated to the account balance
as of dates in the valuation calendar year after the valuation date
and decreased by distributions made in the valuation calendar year
after the valuation date. The account balance for the valuation calendar
year includes any amounts rolled over or transferred to the plan either
in the valuation calendar year or in the distribution calendar year
if distributed or transferred in the valuation calendar year.
Lower Southampton Township Nonuniformed Employees' Pension
Plan.
January 1 to December 31.
The date specified in §§ 6.5(b) p. 44 and
6.6(b) p. 25 of the plan.
The inability to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment
that can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12 months.
The disability of a participant shall be determined by a licensed
physician chosen by the employer. The determination shall be applied
uniformly to all participants.
Continuous employment with the employer. Absence from employment
on account of leave of absence authorized by the employer pursuant
to the employer's established leave policy will be counted as continuous
employment with the employer.
[Ord. 442, 10/9/1996, § 2]
This plan is to be funded and maintained by any of the following
methods or combination of each:
A.
State aid. Funds which are received from the Commonwealth of Pennsylvania
pursuant to Act 205 of 1984 which are directed to this plan as approved
by the Board of Supervisors.
B.
Township contributions. Contributions from Lower Southampton Township,
as necessary, with appropriate approval by the Board of Supervisors.
C.
Gifts, grants, devisees or bequests. The sums which may be received
by Lower Southampton Township in the form of gifts, grants, devises
or bequests may, to the extent authorized by law, be contributed to
said fund with the approval of the Board of Supervisors.
D.
Any other sums received or contributed to Lower Southampton Township
to the extent authorized by law and with prior approval of the Board
of Supervisors.
[Ord. 442, 10/9/1996, § 3]
1.
The Board of Supervisors shall have full responsibility for administration
of the plan and fund. The Board shall hold, invest, reinvest and distribute
all funds and property received pursuant hereto in trust for the purposes
of this subpart. The Board may receive at any time gifts, grants,
devises or bequests to the fund of any money or property, real or
personal or mixed, to be held by the Board in trust for the benefit
of this fund and in accordance with the provisions hereof. The Board
shall also be subject to such rules and regulations as may from time
to time be adopted by the Board of Supervisors through ordinance or
resolution.
2.
The Board of Supervisors shall have full power and authority by a
majority action of its members, either directly or through their designated
representatives, to do all acts, execute, acknowledge and deliver
all instruments, and to exercise for the sole benefit of the participants
hereunder any and all powers and discretions necessary to implement
and effectuate the purposes of this subpart, including, for purposes
of illustration, but not limited to, any of the following:
A.
To hold, invest and reinvest all funds received pursuant to this
subpart and such investments as may be authorized as legal investments
under the laws of the Commonwealth of Pennsylvania.
B.
To retain any property which may, at any time, become an asset of
the fund as long as the Board may deem it advisable.
C.
To make distribution of the monies in the fund in accordance with
the terms of this subpart.
D.
To appoint a trustee or custodian to hold, invest and reinvest plan
funds in accordance with this subpart. Such trustee or custodian may
be removed or resign by giving 60 days' written notice to the other
party. The Board shall maintain the authority to oversee and review
the performance of the trustee or custodian both on an investment
and administrative basis. Plan funds may be invested in pooled funds
designated for employee benefit trust funds.
3.
Any administrative expense which is an allowable administrative expense
under Act 205 of 1984 of the Commonwealth of Pennsylvania will be
payable from the assets of the fund. If administrative expenses are
not or cannot be paid from the fund, the expenses will be paid by
Lower Southampton Township.
[Ord. 442, 10/9/1996, § 4; as amended by Ord. 571, 9/23/2015]
1.
Each nonuniformed employee of Lower Southampton Township who works
at least 35 hours per week will be eligible to participate on the
entry date following the completion of one year of service. Notwithstanding
the preceding sentence, any nonuniformed employee hired prior to January
1, 1997, will continue to be subject to the 1,000 hours of service
during one year of service eligibility required that was in effect
prior to this amendment. No police officer shall be eligible for this
plan. Anyone who is a participant who terminates his employment and
is then rehired will immediately reenter the plan upon rehire.
2.
In addition to the foregoing, part-time clerical employees who work a minimum of 1,000 hours during any plan year shall be eligible to participate on the entry date following completion of the first year for which the part-time employee meets the minimum required hours. Part-time employees must work a minimum of 1,000 hours in each plan year to be credited with a year of service for vesting as provided under § 1-733.
[Ord. 442, 10/9/1996, § 5]
The normal retirement date to receive benefits from the fund
shall be the first day of the month coinciding with or next following
the 65th birthday. If a participant is continuing in the employ of
the employer after the normal retirement date, benefit payments will
be postponed to the first day of the month next following the actual
date of retirement and will be in an amount equal to the account balance
as of the actual date of retirement.
[Ord. 442, 10/9/1996, § 6]
1.
Every participant may terminate employment with the employer and retire on the normal retirement date set forth in § 1-725. Upon the normal retirement date, or as soon thereafter as is practicable, the Board of Supervisors shall distribute all amounts credited to the participant's account balance.
2.
Such pension or retirement benefit shall be payable from the assets
of the fund established pursuant to this subpart.
3.
Upon retirement, each participant may elect an option to receive
their account balance in a periodic lifetime pension payment. In the
event that a periodic lifetime pension payment is not chosen by the
participant, the account balance will be distributed in a single lump-sum
payment.
[Ord. 442, 10/9/1996; as added by Ord. 522, 3/14/2007, § 1]
1.
General rules.
A.
Effective date. The provision of this section will apply for purposes
of determining required minimum distributions for calendar years beginning
with the 2003 calendar year, as well as required minimum distributions
for the 2002 distribution calendar year that are made on or after
January 1, 2002.
B.
Coordination with minimum distribution requirements previously in
effect. If the total amount of 2002 required minimum distributions
under the plan made to the distributee prior to the effective date
of this section equals or exceeds the required minimum distributions
determined under this section, then no additional distribution will
be required to be made for 2002 on or after such date to the distributee.
If the total amount of 2002 required minimum distributions under the
plan made to the distributee prior to the effective date of this section
is less than the amount determined under this section, then required
minimum distributions for 2002 on and after such date will be determined
so that the total amount of required minimum distributions for 2002
made to the distributee will be the amount determined under this section.
C.
Precedence. The requirements of this section will take precedence
over any inconsistent provisions of the plan.
D.
Requirements of Treasury regulations incorporated. All distributions
required under this section will be determined and made in accordance
with the Treasury regulations under Internal Revenue Code § 401(a)(9).
2.
Time and manner of distribution.
A.
Required beginning date. The participant's entire interest will be
distributed or begin to be distributed to the participant no later
than the participant's required beginning date.
B.
Death of participant before distributions begin. If the participant
dies before distributions begin, the participant's entire interest
will be distributed, or begin to be distributed, no later than as
follows:
(1)
If the participant's surviving spouse is the participant's sole
designated beneficiary, then, except as provided in § 1-727.2B(3),
distributions to the surviving spouse will begin by December 31 of
the calendar year immediately following the calendar year in which
the participant died or by December 31 of the calendar year in which
the participant would have attained age 70 1/2, if later.
(2)
If the participant's surviving spouse is not the participant's
sole designated beneficiary, then, except as provided in § 1-727.2B(3),
distributions to the designated beneficiary will begin by December
31 of the calendar year immediately following the calendar year in
which the participant died.
(3)
Participants or beneficiaries may elect on an individual basis
whether the five-year rule or the life expectancy rule in §§ 1-727.2B
and 1-728 applies to distributions after the death of a participant
who has a designated beneficiary. The election must be made no later
than the earlier of September 30 of the calendar year in which distribution
would be required to begin under § 1-727.2B or by September
30 of the calendar year which contains the fifth anniversary of the
participant's (or, if applicable, surviving spouse's) death. If neither
the participant nor beneficiary makes an election under this subparagraph,
distributions will be made in accordance with §§ 1-727.2B
and 1-728.
(4)
A designated beneficiary who is receiving payments under the
five-year rule may make a new election to receive payments under the
life expectancy rule until December 31, 2003, provided that all amounts
that would have been required to be distributed under the life expectancy
rule for all distribution calendar years before 2004 are distributed
by the earlier of December 31, 2003, or the end of the five-year period.
(5)
If there is no designated beneficiary as of September 30 of
the year following the year of the participant's death, the participant's
entire interest will be distributed by December 31 of the calendar
year containing the fifth anniversary of the participant's death.
(6)
If the participant's surviving spouse is the participant's sole
designated beneficiary and the surviving spouse dies after the participant
but before distributions to the surviving spouse begin, § 1-727.2B,
other than § 1-727.2B(1), will apply as if the surviving
spouse were the participant.
|
For purposes of §§ 1-727.2B and 1-728, unless
§ 1-727.2B(6) applies, distributions are considered to begin
on the participant's required beginning date. If § 1-727.2B(6)
applies, distributions are considered to begin on the date distributions
are required to begin to the surviving spouse under § 1-727.2B(1).
If distributions under an annuity purchased from an insurance company
irrevocably commence to the participant before the participant's required
beginning date (or to the participant's surviving spouse before the
date distributions are required to begin to the surviving spouse under
§ 1-727.2B(1), the date distributions are considered to
begin is the date distributions actually commence.
|
C.
Form of distribution. Unless the participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year, distributions will be made in accordance with Subsection 3 of this section and Subsection 2 of § 1-728. If the participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code § 401(a)(9) and the Treasury regulations.
3.
Required minimum distributions during participant's lifetime.
A.
Amount of required minimum distribution for each distribution calendar
year. During the participant's lifetime, the minimum amount that will
be distributed for each distribution calendar year is the lesser of:
(1)
The quotient obtained by dividing the participant's account
balance by the distribution period in the Uniform Lifetime Table set
forth in § 1.401(a)(9)-9 of the Treasury regulations, using
the participant's age as of the participant's birthday in the distribution
calendar year.
(2)
If the participant's sole designated beneficiary for the distribution
calendar year is the participant's spouse, the quotient obtained by
dividing the participant's account balance by the number in the Joint
and Last Survivor Table set forth in § 1.401(a)(9)-9 of
the Treasury regulations, using the participant's and spouse's attained
ages as of the participant's and spouse's birthdays in the distribution
calendar year.
B.
Lifetime required minimum distributions continued through year of
participant's death. Required minimum distributions will be determined
under this Subsection 3 beginning with the first distribution calendar
year and up to and including the distribution calendar year that includes
the participant's date of death.
[Ord. 442, 10/9/1996, § 7; as amended by Ord. 522,
3/14/2007, § 1]
1.
Death on or after date distributions begin.
A.
Participant survived by designated beneficiary. If the participant
dies on or after the date distributions begin and there is a designated
beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the participant's death
is the quotient obtained by dividing the participant's account balance
by the longer of the remaining life expectancy of the participant
or the remaining life expectancy of the participant's designated beneficiary,
determined as follows:
(1)
The participant's remaining life expectancy is calculated using
the age of the participant in the year of death, reduced by one for
each subsequent year.
(2)
If the participant's surviving spouse is the participant's sole
designated beneficiary, the remaining life expectancy of the surviving
spouse is calculated for each distribution calendar year after the
year of the participant's death using the surviving spouse's age as
of the spouse's birthday in that year. For distribution calendar years
after the year of the surviving spouse's death, the remaining life
expectancy of the surviving spouse is calculated using the age of
the surviving spouse as of the spouse's birthday in the calendar year
of the spouse's death, reduced by one for each subsequent calendar
year.
(3)
If the participant's surviving spouse is not the participant's
sole designated beneficiary, the designated beneficiary's remaining
life expectancy is calculated using the age of the beneficiary in
the year following the year of the participant's death, reduced by
one for each subsequent year.
B.
No designated beneficiary. If the participant dies on or after the
date distributions begin and there is no designated beneficiary as
of September 30 of the year after the year of the participant's death,
the minimum amount that will be distributed for each distribution
calendar year after the year of the participant's death is the quotient
obtained by dividing the participant's account balance by the participant's
remaining life expectancy calculated using the age of the participant
in the year of death, reduced by one for each subsequent year.
2.
Death before distributions begin.
A.
Participant survived by designated beneficiary. Except as provided
in § 1-728.2B, if the participant dies before the date distributions
begin and there is a designated beneficiary, the minimum amount that
will be distributed for each distribution calendar year after the
year of the participant's death is the quotient obtained by dividing
the participant's account balance by the remaining life expectancy
of the participant's designated beneficiary, determined as provided
in § 1-728.1A.
B.
Participants or beneficiaries may elect on an individual basis whether
the five-year rule or the life expectancy rule in §§ 1-727.2B
and 1-728 applies to distributions after the death of a participant
who has a designated beneficiary. The election must be made no later
than the earlier of September 30 of the calendar year in which distribution
would be required to begin under § 1-727.2B or by September
30 of the calendar year which contains the fifth anniversary of the
participant's (or, if applicable, surviving spouse's) death. If neither
the participant nor beneficiary makes an election under this paragraph,
distributions will be made in accordance with §§ 1-727.2B
and 1-728.2.
C.
No designated beneficiary. If the participant dies before the date
distributions begin and there is no designated beneficiary as of September
30 of the year following the year of the participant's death, distribution
of the participant's entire interest will be completed by December
31 of the calendar year containing the fifth anniversary of the participant's
death.
D.
Death of surviving spouse before distributions to surviving spouse
are required to begin. If the participant dies before the date distributions
begin, the participant's surviving spouse is the participant's sole
designated beneficiary, and the surviving spouse dies before distributions
are required to begin to the surviving spouse under § 1-727.2B(1),
§ 1-728.2 will apply as if the surviving spouse were the
participant.
[Ord. 442, 10/9/1996, § 8]
In the event of a participant's total and permanent disability
prior to retirement or termination of employment, all amounts credited
to such participant's account balance shall become fully vested. Upon
total and permanent disability, a benefit shall be paid to the participant
equal to the full value of the account balance as though the participant
had retired.
[Ord. 442, 10/9/1996, § 9]
1.
Employer
contributions.
A.
The employer
shall make contributions on behalf of each participant who works at
least 35 hours per week in an amount of 5% of annual compensation
plus 5.7% of total annual compensation in excess of $20,000, who shall
be eligible to share in the allocation of contributions for the plan
year. Notwithstanding the preceding sentence, any employee hired prior
to January 1, 1997, who subsequently becomes a participant shall continue
to be eligible to receive a contribution allocation based on the 1,000
hours of service during one year of service requirement that was in
effect prior to this amendment. If, however, any participant terminates
during the year for reason of death, total and permanent disability
or retirement, he shall be eligible to share in the allocation of
contributions for that plan year.
B.
The employer shall make contributions on behalf of each qualifying
part-time clerical participant who works a minimum of 1,000 hours
in any plan year, in an amount of 5% of the part-time employee's annual
compensation, plus 5.7% of total annual compensation in excess of
$20,000, who shall be eligible to share in the allocation of contributions
for that plan year. Part-time clerical employees who do not work a
minimum of 1,000 hours in any plan year are not eligible for employer
contributions and are not eligible to share in the allocation of contributions
for that plan year.
[Added by Ord. 571, 9/23/2015]
2.
The plan shall be valued each year as the last day of the plan year.
Any forfeitures as a result of a termination of employment shall be
used to reduce employer contributions.
3.
As to the last day of each plan year, before the current valuation
period allocation of employer contributions, any earning or losses
(net appreciation or net depreciation) of the fund shall be allocated
in the same proportion that each participant's and former participant's
accounts bear to the total of all participants' and former participants'
accounts as of such date.
[Ord. 442, 10/9/1996; as added by Ord. 522, 3/14/2007, § 1]
1.
Effective date. This Subpart 7B shall be effective for "limitation
years" beginning after December 31, 2004.
2.
Maximum annual addition. The annual addition that may be contributed
or allocated to a participant's account under the plan for any limitation
year shall not exceed the lesser of:
A.
Forty thousand dollars, as adjusted for increases in the cost-of-living
under Code § 415(d).
B.
One hundred percent of the participant's "415 Compensation" for the
"limitation year."
|
The "415 Compensation" limit referred to in Subsection 2B shall
not apply to any contribution for medical benefits after separation
from service [within the meaning of Code § 401(h) or Code
§ 419A(f)(2) which is otherwise treated as an "annual addition"].
|
[Ord. 442, 10/9/1996; as added by Ord. 522, 3/14/2007, § 1]
The annual compensation of each participant taken into account
in determining allocations for any plan year beginning after December
31, 2001, shall not exceed $200,000, as adjusted for cost-of-living
increases in accordance with Code § 401(a)(17)(B).
[Ord. 442, 10/9/1996, § 10]
1.
Upon termination of employment, the participant shall vest in his
account balance in accordance with the following schedule:
|
Years of Service
|
Vested Percentage
| |
|---|---|---|
|
0 to 1
|
0%
| |
|
2
|
20%
| |
|
3
|
40%
| |
|
4
|
60%
| |
|
5
|
80%
| |
|
6
|
100%
|
2.
All years of service with the employer shall be counted in determining
the vested percentage. For vesting purposes only, a year of service
is defined as completing 1,000 hours of service during the plan year.
3.
Upon termination of employment with the employer, a vested participant
shall be eligible to receive his account balance based upon the last
valuation of the plan.
[Ord. 442, 10/9/1996, § 11]
1.
The benefit payments herein provided for shall not be subject to
attachment, execution, levy, garnishment or other legal process and
shall be payable only to the participant or the designated beneficiary.
2.
No participant or his beneficiary shall have any right to alienate,
encumber or assign any assets of the fund on his behalf or any of
the benefits or proceeds of any contract or agreement purchased or
acquired hereunder.
[Ord. 442, 10/9/1996, § 12]
Participants are prohibited from borrowing or withdrawing any
mandatory contributions, if any, prior to retirement.
[Ord. 442, 10/9/1996; as added by Ord. 522, 3/14/2007, § 1]
1.
Effective date. This section shall apply to distributions made after
December 31, 2004.
2.
Modification of definition of eligible retirement plan. For purposes
of the direct rollover provisions in § 7.11 p. 34 of the
plan, an eligible retirement plan shall also mean an annuity contract
described in Code § 403(b) and an eligible plan under Code
§ 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. The definition
of eligible retirement plan shall also apply in the case of a distribution
to a surviving spouse, or to a spouse or former spouse who is the
alternate payee under a qualified domestic relation order, as defined
in Internal Revenue Code § 414(p).
3.
Modification of definition of eligible rollover distribution to include
after-tax employee contributions. For purposes of the direct rollover
provision in § 7.11 p. 34 of the plan, a portion of a distribution
shall not fail to be an eligible rollover distribution merely because
the portion consists of after-tax employee contributions which are
not includable in gross income. However, such portion may be transferred
only to an individual retirement account or annuity described in Code
§ 408(a) or (b), or to a qualified defined contribution
plan described in Code § 401(a) or 403(a) that agrees to
separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includable
in gross income and the portion of such distribution which is not
so includable.
[Ord. 442, 10/9/1996; as added by Ord. 522, 3/14/2007, § 1]
1.
Effective date. This section shall be effective with respect to distributions
made on and after January 1, 2006.
2.
Applicability. The provisions of the plan that provide for mandatory
distribution of the vested accrued benefit of the participant without
the participant's consent are hereby modified to provide that, if
the participant does not elect to have such distribution paid directly
to an eligible retirement plan specified by the participant in a direct
rollover (in accordance with the direct rollover provisions of the
plan) or to receive the distribution directly, the administrator shall
pay the distribution in a direct rollover to an individual retirement
plan designated by the administrator. The provisions of this section
do not affect the other provisions of the plan relating to the form
or timing of a distribution nor the consent rules that are applicable
with respect to individuals other than participants.
3.
Maximum mandatory distribution. Notwithstanding anything to the contrary
in the plan, for distributions prior to January 1, 2007, the maximum
mandatory distribution without the participant's consent was zero.
