Township of Paw Paw, MI Article III Pension Plan

[Adopted 11-14-1974 by Ord. No. 128; amended 4-13-1978 by Ord. No. 143; 3-14-1985 by Ord. No. 174]

§ 28-45 Created; established.

Pursuant to Act #27 of the Public Acts of 1960, as amended, the Township of Paw Paw hereby creates and establishes an annuity or pension plan and program for the pensioning of its officers and employees, and for such purposes, also hereby authorizes the Township supervisor and the Township Clerk to contract, in the name of the Township Board, with any company authorized to transact such business within the State of Michigan for annuities and pensions.

§ 28-46 Coverage.

[Amended 6-10-1993 by Ord. No. 201; 5-13-1999 by Ord. No. 231]

(a) The annuity or pension plan created, established and contracted for under this article shall cover such person or persons within the following classes of officers and employees:

(1) All members of the Township Board;

(2) The deputy clerk and deputy treasurer.

§ 28-47 Township annual contribution.

(a) The Township of Paw Paw shall annually contribute 100% of the premium or charges arising under such annuity or pension contract on behalf of each person within the class of officers and employees enumerated in § 28-46. Such premium or charges shall be computed as 14% of the annual compensation of each eligible person covered. Such contributions shall be paid from the general fund of the Township. Any eligible officer or employee may voluntarily contribute additional funds to such annuity or pension contract as may be allowable by the terms of the annuity or pension and the applicable law.

(b) Each employee who is employed on the effective date of the annuity or pension plan shall be eligible for coverage on that day provided he or she then meets the following requirements, otherwise to be eligible on the first policy anniversary on which he or she meets them:

(1) He or she has completed at least zero years of continuous employment.

(2) His or her age (nearest birthday) is at least 18 years and not more than 75 years. An employee's normal retirement date shall be the policy anniversary of the annuity or pension plan nearest his or her birthday.

(c) Any person desiring not to be covered shall give written notice to the Township Clerk that he or she desires not to be covered, and if the notice is received before the person has become covered under the contract, he or she shall not be covered thereunder. If the notice is received after the individual has become covered, his or her coverage under the contract shall cease as provided for in the contract.

§ 28-48 Vesting.

Each person so covered under the annuity or pension plan shall have a vested right or interest in such plan immediately from the date the plan becomes effective for such person.