Township of Lower Southampton, PA
Bucks County
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Table of Contents
Table of Contents
[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:
AGE
The age attained by the employee on his last birthday.
AVERAGE APPLICABLE COMPENSATION
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).
BOARD
The Board of Supervisors, Lower Southampton Township.
DEPENDENT CHILD
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.
EARNINGS
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].
EFFECTIVE DATE
December 8, 1999.
EMPLOYEE
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.
FUND
All assets held by the trustee under the trust agreement.
MEMBER
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.
NORMAL RETIREMENT DATE
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.
PLAN
The Police Employees Pension Plan of Lower Southampton Township set forth herein, as the same may be amended from time to time.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.
SERVICE
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.
SUPERANNUATION RETIREMENT DATE
The date on which a member applying for benefits under § 1-704.3 would have satisfied the age and service requirements for normal retirement.
SUPERVISORS
The Board or its duly elected or appointed successors in office.
TOTAL DISABILITY
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
Township of Lower Southampton.
TRUSTEE
Any person (including a corporate fiduciary) appointed by the Board to serve in that capacity under the trust agreement.
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:
DROP
Deferred retirement option program.
DROP ACCOUNT
Separate account created to accept DROP participants' monthly pension check while a DROP participant.
(1) 
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.
(2) 
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.
(3) 
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.
(4) 
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.
(5) 
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."
(6) 
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.
(7) 
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.
(8) 
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.
(9) 
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.
(10) 
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.
(11) 
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.
(12) 
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.
(13) 
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.
(14) 
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.
(15) 
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:
ACCOUNT BALANCE
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.
COMPENSATION
Total compensation with the employer during a calendar year.
DESIGNATED BENEFICIARY
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.
DISTRIBUTION CALENDAR YEAR
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.
EFFECTIVE DATE
The original effective date of the plan is January 1, 1986.
EMPLOYER
Lower Southampton Township, Bucks County, Commonwealth of Pennsylvania.
ENTRY DATE
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.
FUND
Lower Southampton Township Nonuniformed Employees' Pension Plan Fund.
LIFE EXPECTANCY
Life expectancy as computed by use of the single life table in § 1.401(a)(9)-9 of the Treasury regulations.
PARTICIPANT
Any employee who meets the requirements set forth in § 1-724 of this subpart.
PARTICIPANT'S ACCOUNT BALANCE
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.
PLAN
Lower Southampton Township Nonuniformed Employees' Pension Plan.
PLAN YEAR
January 1 to December 31.
REQUIRED BEGINNING DATE
The date specified in §§ 6.5(b) p. 44 and 6.6(b) p. 25 of the plan.
TOTAL AND PERMANENT DISABILITY
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.
SERVICE
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.