[Adopted 4-1-1936 by Ord. No. 329 (Ch. 1, Part 8C, of the
1986 Code of Ordinances); amended in its entirety 3-10-2016 by Ord. No. 1878]
The following words and phrases as used in this plan shall have
the meaning set forth in this article, unless a different meaning
is otherwise clearly required by the context:
As of any given date, the benefit determined under § 49-18B, calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one.
The accrued benefit shall include any service increment benefit determined pursuant to § 49-18C attributable to the participant's aggregate service as of the determination date. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation, provided under § 49-18F. All accrued benefits are subject to all applicable limitations, reductions, offsets, and actuarial adjustments provided pursuant to the terms of the plan prior to the actual payment thereof.
The total amount contributed by any participant to this fund
or its predecessor by way of payroll deduction or otherwise, without
interest or other accretion.
The Municipal Pension Plan Funding Standard and Recovery
Act, which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the UP-1984 Mortality Table and 7% interest unless otherwise
specifically provided herein.
The person, partnership, association or corporation, which
at any given time is serving as actuary; provided that such actuary
must be an "approved actuary" as defined in the Act.
The total period or periods of the participant's employment
with the employer whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment
for which employee contributions are required, such period of employment
shall not be included in aggregate service thereafter unless, at the
commencement of the next period of employment, the participant repays
to the fund the amount the participant received at the time the participant
terminated service with the employer. Aggregate service shall be calculated
in completed whole years.
The person or entity designated by the participant to receive
a distribution of the participant's accumulated contributions should
the participant die prior to becoming entitled to a retirement benefit.
In the event that a participant does not designate a beneficiary or
the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse, or if there is no surviving spouse,
the issue, per stirpes, or if there is no surviving issue, the estate;
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.
The Board of Directors of the Police Pension Fund as determined pursuant to § 49-22B.
The person designated by the City who has the primary responsibility
for the execution of the administrative affairs for the plan.
The Internal Revenue Code of 1986, as amended.
The Commonwealth of Pennsylvania.
The total amount of a participant's earnings, received or
receivable during the participant's employment with the City as an
employee.
Shall be limited on an annual basis to the amount specified
for government plans in accordance with code Section 401(a)(17), as
adjusted under code Section 415(d).
The Council of the City of Washington.
Any natural-born child or legally adopted child of a participant.
The date when a participant is determined by the Plan Administrator
to be incapacitated due to total and permanent disability, or the
date when the participant's employment terminates due to such total
and permanent disability, if later.
The spouse to whom a participant is legally married as of
the participant's date of death.
Any individual employed by the employer on a regular, full-time
basis as a police officer of the employer's police force. Any police
officer employed as a temporary, special, part-time or permanent part-time
officer shall not be an eligible employee under this plan.
The City of Washington, Washington County, Pennsylvania.
For the purpose of determining aggregate service:
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer;
Any period of time for which an employee is paid, either directly
by the employer or through a program to which the employer has made
contributions on behalf of the employee, a fixed, periodic amount
in the nature of salary continuation payments for reasons other than
the performance of duties (such as vacation, holidays, sickness, entitlement
to benefits under workers' compensation or similar laws); and
Any period of qualified military service as determined under
the requirements of Chapter 43 of Title 38, United States Code, provided
that the participant returns to employment following such period of
qualified military service, and the participant makes payment to the
plan in an amount equal to the participant Contributions that would
otherwise have been paid to the plan during such period of qualified
military service. The amount of participant contributions shall be
based upon an estimate of the compensation that would have been paid
to the participant during such period of qualified military service
as determined by the average compensation paid to the participant
during the 12 months immediately preceding the period of qualified
military service. The amount of participant contributions calculated
must be paid into the plan before the end of the period that begins
on the date of reemployment and ends on the earlier of the date that
ends the period that has a duration of three times the period of qualified
military service or the date that is five years after the date of
reemployment.
The rate of monthly compensation of the participant as of
the date of retirement or the highest average annual compensation
which the participant received during any five years of aggregate
service preceding his termination of active employment, whichever
is the greater amount.
The minimum obligation of the municipality as determined
by the actuary pursuant to the provisions of the Act.
For any participant hired before January 1, 1994, the date
on which the participant has attained age 50 and completed 20 years
of aggregate service with the employer. For participants hired on
or after January 1, 1994, "normal retirement age" shall mean the date
on which the participant has attained age 53 and completed 20 years
of aggregate service with the employer.
A written document prepared in the form specified by the
Plan Administrator. If such notice or election is to be provided by
the employer or the Plan Administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto, on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the Plan Administrator, it must be received by
the intended recipient on or before the last day of the specified
notice or election period.
An employee who has met the eligibility requirements to participate in the plan as provided in § 49-16A and who has not for any reason ceased to be a participant hereunder.
The Police Pension Fund, aggregated with other pension funds
maintained by the employer to create a single pension trust fund,
which shall thereafter serve as the single funding mechanism for all
pension plans connected with the aggregation. Each pension plan subject
to the aggregation shall have an undivided participation in the assets
of the combined pension trust fund. For accounting purposes, the value
of the participation by each plan shall be calculated annually, in
accordance with the requirements of Section 607 of the Act. The pension
fund shall be administered under the terms of this plan and which
shall include all money, property, investments, policies and contracts
standing in the name of the plan.
The plan set forth herein, as amended from time to time and
designated as the City of Washington Police Pension Plan.
The committee or the individual appointed for the purpose
of supervising and administering the provisions of the plan. In the
event that no such appointment is made, the Plan Administrator shall
be the Board.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
January 1, 2016, the date upon which this amendment and restatement
of the plan becomes effective.
The amount calculated pursuant to § 49-18C on behalf of a participant for each completed year of aggregate service in excess of 20 years, not to exceed $500, nor shall such increment reflect any employment after the participant has attained age 65.
A condition of physical or mental impairment due to which
a participant is unable to perform the usual and customary duties
of employment and which is reasonably expected to continue to be permanent
for the remainder of the participant's lifetime.
A.Â
Eligibility requirements.
(1)Â
Each employee who is employed as a regular, full-time permanent member
of the Police Department of the employer shall participate herein
as of the date on which such employee's employment first commences
or recommences provided all prerequisites to participation under this
plan shall have been fulfilled, including, but not limited to, completion
of all forms required by the Plan Administrator. Each employee who
was a participant in the plan on the day prior to the restatement
date shall continue to be a participant on and after the restatement
date subject to the terms and conditions of the plan as set forth
herein.
B.Â
Participation requirements. The Board shall furnish the Plan Administrator with written notification of the appointment of any new full-time permanent employee who is eligible for participation hereunder. Each participant hereunder shall be required to make contributions to the plan as provided in § 49-17 hereof, and shall execute and complete any enrollment or application forms as required by the Plan Administrator.
C.Â
Designation of beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the Plan Administrator which designates a beneficiary
at the time participation commences. The participant's election of
any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time provided the participant provides
the written notice of the changed designation to the Plan Administrator
in the manner prescribed by the Plan Administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
Plan Administrator shall be null and void and have no effect under
the terms of this plan.
D.Â
Change in status. A participant who remains in the service of the
employer but ceases to be an employee eligible for participation hereunder,
or ceases or fails to make any contributions which are required as
a condition of participation hereunder, shall have no further benefit
accruals occur until the individual again qualifies as a participant
hereunder eligible to resume such accrual of benefits.
E.Â
Recordkeeping. The employer shall furnish the Plan Administrator
with such information as will aid the Plan Administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this plan.
A.Â
Participant contributions.
(1)Â
Each participant shall as a requirement of participation pay regular
contributions to the pension fund an amount equal to 7Â 1/2% of
the participant's compensation. In addition to such contribution,
the participant shall contribute $4 per month as a service increment
contribution, but in no case, however, shall contributions that are
attributable to service increments be required after the date when
a participant has attained age 65.
(2)Â
Each participant shall complete the necessary forms to authorize
the payment of participant contributions by way of payroll deduction.
B.Â
State aid. General Municipal Pension System State Aid, or any other
amount of state aid received by the employer in accordance with the
Act from the commonwealth may be deposited into the pension fund governed
by this plan in amounts determined by the Board, and shall be used
to reduce the amount of the minimum municipal obligation of the employer.
C.Â
Gifts. The Board is authorized to take by gift, grant, devise or
otherwise any money or property, real or personal, for the benefit
of the plan and cause the same to be held as a part of the pension
fund. The care, management, investment and disposal of such amounts
shall be vested in the Board or its delegate, the Plan Administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.
D.Â
Employer reversion. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, including payment of any reasonable plan expenses. Notwithstanding the foregoing, any contributions made by the employer may be returned to the employer if the contribution was made due to a mistake and the contribution is returned within one year of the date on which the discovery of the mistaken payment of the contribution was made or reasonably should have been made or the plan is terminated, as provided in § 49-24.
A.Â
Normal retirement. Each participant shall be entitled to a normal
retirement benefit after retirement on or after the participant has
attained normal retirement age.
B.Â
Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection A shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average salary as determined herein. No applicant for a normal retirement benefit shall be received or considered unless it shall first affirmatively appear that the applicant has received an honorable discharge from the City.
C.Â
Service increment. Notwithstanding anything contained herein to the contrary, each participant who shall retire upon completion of 20 or more years of aggregate service may be entitled to receive a monthly service increment benefit. Such service increment shall be an amount equal to the number of completed years of aggregate service in excess of 20 years multiplied by 1/40 of the participant's pension benefit which he is entitled to receive, not to exceed $500, nor reflect any employment after the participant has attained age 65, and shall be paid monthly in addition to the amount of normal retirement benefit calculated pursuant to Subsection B.
D.Â
Payment of benefits. Retirement benefit payments shall be payable
as of the participant's retirement date and the first day of each
month thereafter during the participant's lifetime. A participant
must complete an application for benefit in the manner prescribed
by the Plan Administrator and deliver such application to the Plan
Administrator at least 30 days prior to the date on which benefit
payments shall commence. Notwithstanding anything contained herein
to the contrary, no retirement benefit payments nor any other payments
shall be due or payable on or before the date that is 30 days after
the date the Plan Administrator receives the application for benefits.
Payment of benefits hereunder shall cease as of the date of death
of the participant.
E.Â
Reemployment. Each employee who had previously been employed by the employer and thereafter terminated employment shall, upon reemployment, have prior years of aggregate service recredited for all purposes under the plan upon repayment to the pension fund of any amount of accumulated contributions which had been distributed pursuant to § 49-21B.
F.Â
Maximum benefit limitations. Notwithstanding any provision of this plan to the contrary, no benefit provided under this plan attributable to contributions of the employer shall exceed, as an annual amount, the amount specified in code Section 415(b)(1)(A) as adjusted pursuant to code Section 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this § 49-18F shall be governed by the following conditions and definitions:
(1)Â
Benefits paid or payable in a form other than a straight life annuity
(with no ancillary benefits) or where the employee contributes to
the plan or makes rollover contributions shall be adjusted on an actuarially
equivalent basis in accordance with applicable regulations to determine
the limitation contained herein;
(2)Â
In the case of a benefit which commences prior to the attainment
of age 62 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis to the amount determined pursuant
to this section commencing at age 62; however, in the case of a qualified
participant (a participant with respect to whom a period of at least
15 years of service, including applicable military service, as a full-time
employee of a police or fire department is taken into account in determining
the amount of benefit), the limitation contained herein shall not
apply;
(3)Â
In the case of a benefit which commences after attainment of age
65 by the participant, the limitation herein shall be adjusted on
an actuarially equivalent basis in accordance with applicable regulations
to the amount determined commencing at age 65;
(4)Â
Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this section provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability retirement benefit pursuant to § 49-19A or a survivor benefit pursuant to § 49-20B, with fewer than 10 years of participation the limitation expressed in this subsection shall be reduced by 1/10 for each year of participation less than 10 but in no event shall this limitation be less than $1,000;
(5)Â
The limitations expressed herein shall be based upon plan years for
calculation purposes, shall be applied to all defined benefit plans
maintained by the employer as one defined benefit plan and to all
defined contribution plans maintained by the employer as one defined
contribution plan, and shall be applied and interpreted consistent
with code Section 415 and regulations thereunder as applicable to
government plans in general and this plan in particular;
(7)Â
To the extent applicable, the plan will comply with the provisions
of code Section 415(n) regarding the purchase of permissive service
credits; and
(8)Â
Effective for distributions with annuity starting dates beginning
on or after December 31, 2008, notwithstanding any other plan provisions
to the contrary, the applicable mortality table used solely for purposes
of adjusting any benefit or limitation under 415(b)(2)(B), (C), or
(D) of the Internal Revenue Code as set forth in the applicable maximum
benefit limitations section of the plan is the applicable mortality
table under code Section 417(e)(3)(B).
G.Â
Required distributions.
(1)Â
Entitlement and/or distribution of benefits beginning prior to death.
(a)Â
Notwithstanding any other provision of this plan, the entire
benefit of any participant who becomes entitled to benefits prior
to death shall be distributed either:
[1]Â
Not later than the required beginning date, or
[2]Â
Over a period beginning not later than the required beginning
date and extending over the life of such participant or over the lives
of such participant and a designated beneficiary (or over a period
not extending beyond the life expectancy of such participant, or the
joint life expectancies of such participant and a designated beneficiary).
(b)Â
If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of the benefits has begun in accordance with Subsection G(1)(a)[2] above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection G(1)(a)[2] as of the date of the death.
(2)Â
If a participant who is entitled to benefits under this plan dies
before distribution of the benefit has begun, the entire interest
of such employee shall be distributed within five years of the death
of such employee, unless the following sentence is applicable. If
any portion of the employee's interest is payable to (or for the benefit
of) a designated beneficiary, such portion shall be distributed over
the life of such designated beneficiary (or over a period not extending
beyond the life expectancy of such beneficiary), and such distributions
begin not later than one year after the date of the employee's death
or such later date as provided by regulations issued by the Secretary
of the Treasury, then for purposes of the five-year rule set forth
in the preceding sentence, the benefit payable to the beneficiary
shall be treated as distributed on the date on which such distributions
begin; provided, however, that notwithstanding the preceding sentence,
if the designated beneficiary is the surviving spouse of the participant,
then the date on which distributions are required to begin shall not
be earlier than the date upon which the employee would have attained
age 70Â 1/2 and, further provided, if the surviving spouse dies
before the distributions to such spouse begin, this subsection shall
be applied as if the surviving spouse were the employee.
(3)Â
For purposes of this section, the following definitions and procedures
shall apply:
(a)Â
REQUIRED BEGINNING DATE
DESIGNATED BENEFICIARY
Definitions.
April 1 of the calendar year following the later of the calendar
year in which the employee attains age 70Â 1/2, or the calendar
year in which the employee retires.
Any individual designated by the employee under this plan
according to its rules.
(b)Â
Any amount paid to a child shall be treated as if it had been
paid to the surviving spouse if such amount will become payable to
the surviving spouse upon such child's reaching majority (or other
designated event permitted under regulations issued by the Secretary
of the Treasury).
(c)Â
For purposes of this section, the life expectancy of an employee
and/or the employee's spouse (other than in the case of a life annuity)
may be redetermined but not more frequently than annually.
(4)Â
General rules. The requirements of this Subsection G will take precedence over any inconsistent provisions of the plan. All distributions required under this Subsection G will be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the Treasury regulations thereunder, and the employer's good faith interpretation of such code and regulations.
H.Â
Assignment. The pension benefit payments prescribed herein shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant or designated
beneficiary and shall not be subject to assignment or transfer unless
the subject of a domestic relations order, mandated by a court of
competent jurisdiction, that clearly provides for proper distribution
of a portion of the pension benefit payments to an alternate payee
(former spouse of the participant) and does not require any benefit
to be paid in excess of the available earned and accrued under the
plan.
I.Â
Retired participants. Any participant who shall have retired prior
to the restatement date shall not have the benefit altered in any
way by the provisions of this amended and restated plan, except where
otherwise expressly provided herein. Such retired participants shall
continue to have their benefits governed by the terms of the plan
in effect on the day preceding the restatement date.
J.Â
Limitation of liability. Nothing contained herein shall obligate
the employer, the Plan Administrator, any fiduciary or any agent or
representative of any of the foregoing, to provide any retirement
or other benefit to any participant or beneficiary which cannot be
provided from the assets available in the pension fund, whether such
benefits are in pay status or otherwise payable under the terms of
the plan. The Board retains the right to amend or terminate this plan
consistent with applicable law at any time, with or without cause
and whether or not such action directly or indirectly results in the
suspension, reduction or termination of any benefit payable under
the plan or in pay status, and without liability to any person for
any such action.
K.Â
Personal right of participant. The right to receive any benefits
under this plan is a personal right of the participant and shall expire
upon the death of the participant. No heir, legatee, devisee, beneficiary,
assignee or other person claiming by or through a participant shall
have any interest in any benefits hereunder unless clearly and expressly
so provided by the terms of this plan or the provisions of applicable
law. A participant's election, failure to make an election or revocation
of an election hereunder shall be final and binding on all persons.
L.Â
Nonduplication of benefit. To avoid any duplication of benefits,
a participant who is receiving a retirement benefit under the plan
and who shall resume employment shall have benefit payments suspended
until the first day of the month coincident with or next following
the date such employment shall cease. Upon resumption of benefit payments,
such participant shall receive the greater of the amount of the suspended
benefit or the amount of benefit based upon final monthly average
salary and aggregate service as of the date that such period of resumed
employment shall cease.
M.Â
Direct rollovers.
(1)Â
This Subsection M(1) applies to distributions made on or after December 31, 2001. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution that is equal to at least $500 paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(2)Â
This Subsection M(2) shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, if a distribution in excess of $1,000 is made and the distributee does not make an election under Subsection M(1) and does not elect to receive the distribution directly, the Plan Administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to § 49-22C(1)(i). The Plan Administrator shall notify the distributee, in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
(3)Â
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(a)Â
(b)Â
For purposes of this section, the following definitions shall apply:
A payment by the plan to the eligible retirement plan specified
by the distributee or the Plan Administrator, if the distributee does
not make an election. Effective January 1, 2008, direct rollovers
may be made to a Roth IRA described in Section 408A of the Internal
Revenue Code to the extent that the applicable requirements of code
Section 408A are satisfied with respect to any direct rollover to
such Roth IRA.
Includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in code
Section 414(p), are distributees with regard to the interest of the
spouse or former spouse.
A qualified trust described in code Section 401(a), an individual
retirement account described in code Section 408(a), an individual
retirement annuity described in code Section 408(b), an annuity plan
described in code Section 403(a), an annuity contract described in
code Section 403(b), an eligible deferred compensation plan described
in code Section 457(b), which is maintained by a state, political
subdivision of a state, and 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.
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 or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of 10 years or more,
any distribution to the extent such distribution is required under
code Section 401(a)(9), and the portion of any distribution that is
not includible in gross income (determined without regard to the exclusion
for net unrealized appreciation with respect to employer securities).
For purposes of the direct rollover provisions in this section
of the plan, a portion of the distribution shall not fail to be an
eligible rollover distribution merely because the portion consists
of after-tax employee contributions that are not includible in gross
income. However, such portion may only be paid to an individual retirement
account or annuity described in Section 408(a) or (b) of the code,
or to a qualified defined contribution plan described in Sections
401(a) or 403(a) of the code [effective for distributions on or after
January 1, 2007, any qualified trust or code Section 403(b) plan]
that agrees to separately account for amounts so transferred, including
separately accounting for the portion of such distribution which is
includible in gross income and the portion which is not includible.
(4)Â
This section applies to distributions made on or after January 1,
2010. Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a nonspouse beneficiary's election under this
section, a nonspouse beneficiary may elect to have any portion of
a plan distribution (that is payable to such nonspouse beneficiary
due to a participant's death) paid in a direct trustee-to-trustee
transfer to an individual retirement account described in code Section
408(a) or to an individual retirement annuity described in Section
408(b) (other than an endowment contract) that has been established
for the purposes of receiving the distribution on behalf of such nonspouse
beneficiary. For these purposes, a "nonspouse beneficiary" is an individual
who is a designated beneficiary [as defined by Section 401(a)(9)(E)
of the Internal Revenue Code] of a participant and who is not the
surviving spouse of such participant.
A.Â
Disability retirement.
(1)Â
A participant who shall incur a total and permanent disability in
the line of duty before attaining normal retirement age, regardless
of the number of completed years of aggregate service, shall be eligible
for a disability retirement benefit equal to 50% of the participant's
base salary as of the disability date.
(2)Â
A participant who shall incur a total and permanent disability not
in the line of duty after completing more than 10 years of aggregate
service with the employer shall be entitled to a disability retirement
benefit equal to 50% of the participant's base salary as of his disability
date.
(3)Â
A participant who shall incur a total and permanent disability not
in the line of duty with less than 10 years of aggregate service with
the employer shall be entitled to a disability retirement benefit
equal to 25% of the participant's base salary as of his disability
date.
(4)Â
No applicant for a disability retirement benefit shall be received
or considered unless it shall first affirmatively appear that the
applicant has received an honorable discharge from the City.
B.Â
Payment of disability benefits. Disability payments shall be made
monthly as of the participant's disability date and continuing until
the earliest of the death of the participant or cessation of total
and permanent disability.
C.Â
Verification of disability. The Plan Administrator shall in its sole
discretion determine whether a participant shall have incurred a total
and permanent disability. The Plan Administrator shall rely on the
report of up to three physicians acceptable to the Plan Administrator.
If the Plan Administrator shall determine that a participant who is
totally and permanently disabled has recovered sufficiently to resume
active employment as a police officer or if a participant refuses
to undergo a medical examination as directed by the Plan Administrator
(such a medical examination may not be required more frequently than
once in any given twelve-month period), the payment of disability
retirement benefits shall cease.
D.Â
Cessation of disability.
(1)Â
A participant who is receiving payment of disability retirement benefits
under this plan must notify the Plan Administrator of any change which
may cause a cessation of entitlement to receipt of such benefits hereunder.
If a participant fails to provide immediate notice to the Plan Administrator
of any such change in status and continues to receive payment of benefits
hereunder to which the participant is not entitled, then the plan
may take whatever action is necessary to recover any amount of improperly
paid amounts, including legal action or offsetting such amounts against
any future payments of retirement or other benefits under the plan,
including the costs of such actions.
(2)Â
A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, shall not be entitled to any distribution of accumulated contributions pursuant to § 49-21B to the extent that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date, and shall not be entitled to any other benefits under the Plan on account of any aggregate service as of the disability date.
A.Â
Death of participant. Upon the occurrence of the death of a participant, there shall be benefits payable in accord with the following subsections of this § 49-20.
B.Â
Survivor benefit. If a participant shall die in the line of duty, after commencement of retirement benefit payments under §§ 49-18 or 49-19 hereunder, or after becoming eligible to receive retirement benefit payments under § 49-18A and before retirement benefits commence, a survivor benefit shall be paid to the eligible spouse or dependent child(ren) of the participant, if any, pursuant to Subsection C in an amount equal to 100% of the benefit the participant was receiving or was eligible to receive as of the date of death.
C.Â
Payment of survivor benefit. The survivor benefit commences as of
the first day of the month immediately following the date of death
of the participant. The survivor benefit shall be paid monthly to
the eligible spouse of the participant, if any, until the death of
the eligible spouse. Upon the death of the eligible spouse or if there
is no eligible spouse, the survivor benefit shall be paid monthly
in equal shares to the surviving dependent child(ren) of the deceased
participant until attainment of age 18. The shares payable to the
surviving dependent child(ren) shall be adjusted as each child ceases
to be eligible to receive a share of the benefit hereunder.
D.Â
Death of participant prior to retirement. If a participant shall die before payment of a benefit has commenced and without eligibility for payment of a survivor benefit under Subsection B, the beneficiary shall be eligible to receive a distribution in an amount equal to the accumulated contributions of the participant as of the date of death of the participant. If the participant has received disability retirement benefits hereunder, the amount of distribution of accumulated contributions shall be reduced by the amount of disability retirement benefits, which have been paid hereunder.
E.Â
Veterans' survivor benefits. Notwithstanding any other provision
of the plan to the contrary, in the case of the death of a participant
who dies on or after January 1, 2007, while performing qualified military
service [as defined in code section 414(u)], the survivors of the
participant are entitled to any additional benefits under the plan
(if any) had the participant resumed and then terminated employment
on account of death.
A.Â
Rights of terminated employees. A participant who shall cease to
be an employee except as otherwise hereinbefore provided shall have
all interest and rights under this plan limited to those contained
in the following subsections of this section. Termination shall be
by resignation dismissal or layoff in excess of 12 months.
B.Â
Distribution of accumulated contributions. A participant whose employment
with the employer shall terminate for any reason other than death
or total and permanent disability prior to attainment of normal retirement
age shall be entitled to receive a distribution of accumulated contributions.
Upon receipt of such accumulated contributions, said participant and
beneficiary shall not be entitled to any further payments from the
plan.
A.Â
Plan Administrator. The Plan Administrator shall be the Board or
the individual appointed by the Council who shall have the power and
authority to do all acts and to execute, acknowledge and deliver all
instruments necessary to implement and effectuate the purpose of this
plan. The Plan Administrator may delegate authority to act on its
behalf to any persons it deems appropriate. If a Plan Administrator
is not appointed, the Board shall be the Plan Administrator.
B.Â
Board of Directors: construction, election and term of office.
(1)Â
The Board of Directors of the Police Pension Fund shall be composed
of 12 members, and this membership shall include the Mayor, Superintendent
of Accounts and Finance, the City Controller, a member of Council
as selected by a majority of Council, Chief of Police, five active
police officers and two pensioned officers. Said five active police
officers shall be selected by a majority vote of all officers qualifying
under the Civil Service Act for membership in the Police Department.
Said pensioned officers to be recommended by majority vote of all
pensioned officers. Thereupon the said recommendation shall be approved
or disapproved by a majority vote of the Board of Directors of the
Police Pension Fund.
(2)Â
The above appointees shall be given designated terms. The terms of
the appointees by the City shall be given terms as follows: one for
a term of one year; two for a term of two years; and two for a term
of three years. The appointees of the police officers shall be given
terms as follows: two police officers receiving the highest number
of votes shall be elected for the three-year term; the two receiving
the next highest number of votes shall be elected for two-year terms;
and the police officer receiving the fifth highest number of votes
shall be elected for the one-year term. Upon expiration of the term
of any appointee, the appointee shall continue in office until reappointed
or until the appointee is replaced and the term of the replacement
shall be three years from the expiration date of the initial appointee's
term of office. Each successive term shall be three years for all
appointees.
C.Â
Authority and duties of the Plan Administrator.
(1)Â
The Plan Administrator shall have full power and authority to do
whatever shall, in its judgment, be reasonably necessary for the proper
administration and operation of the plan. The interpretation or construction
placed upon any term or provision of the plan by the Plan Administrator
or any action of the Plan Administrator taken in good faith shall,
upon the Board's review and approval thereof, be final and conclusive
upon all parties hereto, whether employees, participants or other
persons concerned. By way of specification and not limitation and
except as specifically limited hereafter, the Plan Administrator is
authorized:
(a)Â
To construe this plan;
(b)Â
To determine all questions affecting the eligibility of any
employee to participate herein;
(c)Â
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary;
(d)Â
To authorize any and all disbursements;
(e)Â
To prescribe any procedure to be followed by any participant
or other person in filing any application or election;
(f)Â
To prepare and distribute, in such manner as may be required
by law or as the Plan Administrator deems appropriate, information
explaining the plan;
(g)Â
To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan;
(h)Â
To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws; and
(2)Â
The Plan Administrator shall have no power to add to, subtract from
or modify the terms of the plan or change or add to any benefits provided
by the plan, or to waive or fail to apply any requirements of eligibility
for benefits under the plan. Further, the Plan Administrator shall
have no power to adopt, amend, or terminate the plan, to select or
appoint any trustee or to determine or require any contributions to
the plan, said powers being exclusively reserved to the Board.
D.Â
Board of Directors — purpose. The purpose of the
Board of Directors of the Police Pension Fund shall be to provide
a forum for meetings and discussions between representatives of the
City and the police employees relative to pensions. In addition, the
Board shall receive and review actuarial reports and other relevant
reports on the status and/or the condition of the Police Pension Fund
and other matters relevant to the actuarial reports and reports on
the status and condition of the Police Pension Fund. The Board shall
organize and adopt such rules and regulations as it may deem necessary
for performance of its duties. The Board shall meet as needed.
E.Â
Plan Administrator costs. The Plan Administrator shall serve without
compensation for services unless otherwise agreed by the Board in
writing. All reasonable expenses incident to the functioning of the
Plan Administrator, including, but not limited to, fees of accountants,
counsel, actuaries and other specialists, and other costs of administering
the Plan, may be paid from the pension fund upon approval by the Board
to the extent permitted under applicable law and not otherwise paid
by the employer.
F.Â
Hold harmless. No member of the Board, the Plan Administrator, nor
any other person involved in the administration of the plan (other
than any person, bank, firm or corporation which is independent of
the employer and which renders services to the plan for a fee) shall
be liable to any person on account of any act or failure to act which
is taken or omitted to be taken in good faith in performing their
respective duties under the terms of this plan. To the extent permitted
by law, the employer shall, and hereby does agree to, indemnify and
hold harmless the Plan Administrator and each successor and each of
any such individual's heirs, executors and administrators, and the
delegates and appointees (other than any person, bank, firm or corporation
which is independent of the employer and which renders services to
the plan for a fee) from any and all liability and expenses, including
counsel fees, reasonably incurred in any action, suit or proceeding
to which he is or may be made a party by reason of being or having
been a member, delegate or appointee of the Plan Administrator, except
in matters involving criminal liability, intentional or willful misconduct.
If the employer purchases insurance to cover claims of a nature described
above, then there shall be no right of indemnification except to the
extent of any deductible amount under the insurance coverage or to
the extent of the amount the claims exceed the insured amount.
G.Â
Approval of benefits. The Plan Administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
H.Â
Appeal procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the plan ("claimant"), shall first
seek a resolution of such claim under the procedure hereinafter set
forth.
(1)Â
Any claimant shall file a notice of the claim with the Plan Administrator
which shall fully describe the nature of the claim. The Plan Administrator
shall review the claim and make an initial determination approving
or denying the claim.
(2)Â
If the claim is denied in whole or in part, the Plan Administrator
shall within 90 days (or such other period as may be established by
applicable law) from the time the application is received, mail notice
of such denial to the claimant. Such ninety-day period may be extended
by the Plan Administrator if special circumstances so require for
up to 90 additional days by the Plan Administrator's delivering notice
of such extension to the claimant within the first ninety-day period.
Any notice hereunder shall be written in a manner calculated to be
understood by the claimant and, if a notice of denial, shall set forth:
(3)Â
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Board of the initial
determination. Such request for review must be made by notice to the
Board within 60 days of receipt of such notice of denial. During such
review, the claimant or a duly authorized representative shall have
the right to review any pertinent documents and to submit any issues
or comments in writing. The Board shall, within 60 days after receipt
of the notice requesting such review, (or in special circumstances,
such as where the Board in its sole discretion holds a hearing, within
120 days of receipt of such notice), submit its decision in writing
to the person or persons whose claim has been denied. The decision
shall be final, conclusive and binding on all parties, shall be written
in a manner calculated to be understood by the claimant and shall
contain specific references to the pertinent plan provisions on which
the decision is based.
(4)Â
Any notice of a claim questioning the amount of a benefit in pay
status shall be filed within 90 days following the date of the first
payment which would be adjusted if the claim is granted unless the
Plan Administrator allows a later filing for good cause shown.
(5)Â
A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
(6)Â
Nothing contained herein is intended to abridge any right of a claimant to appeal any final decision hereunder to a court of competent jurisdiction under 2 Pa.C.S.A. § 752. No decision hereunder is a final decision from which such an appeal may be taken until the entire appeal procedure of this Subsection H of the plan has been exhausted.
A.Â
Operation of the pension fund.
(1)Â
The Board is hereby authorized to hold and supervise the investment
of the assets of the pension fund, subject to the provisions of the
laws of the commonwealth and of this plan and any amendment thereto.
(2)Â
The Pension Fund shall be used to pay benefits as provided in the
plan and, to the extent not paid directly by the employer, to pay
the expenses of administering the plan pursuant to authorization by
the employer.
(3)Â
The employer intends the plan to be permanent and for the exclusive
benefit of its employees. It expects to make the contributions to
the pension fund required under the plan. The employer shall not be
liable in any manner for any insufficiency in the pension fund; benefits
are payable only from the pension fund, and only to the extent that
there are monies available therein. The Pension Fund will consist
of all funds held by the employer under the plan, including contributions
made pursuant to the provisions hereof and the investments, reinvestments
and proceeds thereof. The Pension Fund shall be held, managed, and
administered pursuant to the terms of the plan. Except as otherwise
expressly provided in the plan, the employer has exclusive authority
and discretion to manage and control the pension fund assets. The
employer may, however, appoint a trustee, custodian or investment
manager, at its sole discretion.
B.Â
Powers and duties of employer. With respect to the pension fund,
the employer shall have the following powers, rights and duties, in
addition to those vested in it elsewhere in the plan or by law, unless
such duties are delegated:
(1)Â
To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), without liability for interest thereon.
(2)Â
To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time legal investments for fiduciaries
in accordance with Chapter 73 of the Pennsylvania Probate Estates
and Fiduciaries Code,[1] or as the same may be subsequently modified or amended.
[1]
Editor's Note: See 20 Pa.C.S.A. § 101 et seq.
(3)Â
To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
(4)Â
To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
(5)Â
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)Â
To exercise all voting rights with respect to property held in the
fund and in connection therewith to grant proxies, discretionary or
otherwise.
(7)Â
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this plan no matter where situated, including
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
(8)Â
In addition to the foregoing powers, the employer shall also have
all of the powers, rights, and privileges conferred upon trustees
in accordance with Chapter 73 of the Pennsylvania Probate Estates
and Fiduciaries Code, or as the same may be subsequently modified
or amended, and the power to do all acts, take all proceedings and
execute all rights and privileges, although not specifically mentioned
herein, as the employer may deem necessary to administer the pension
fund.
(9)Â
To maintain and invest the assets of this plan on a collective and
commingled basis with the assets of other pension plans maintained
by the employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
(10)Â
To invest the assets of the pension fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder. In this connection,
the commingling of the assets of this plan with assets of other eligible,
participating plans through such a medium is hereby specifically authorized.
Any assets of the plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
plan, to the extent of the participation in such collective or commingled
trust fund by the plan.
(11)Â
To make any payment or distribution required or advisable to
carry out the provisions of the plan, provided that if a trustee is
appointed by the employer, such trustee shall make such distribution
only at the direction of the employer.
(12)Â
To compromise, contest, arbitrate, enforce or abandon claims
and demands with respect to the plan.
(13)Â
To retain any funds or property subject to any dispute without
liability for the payment of interest thereon, and to decline to make
payment or delivery thereof until final adjudication is made by a
court of competent jurisdiction.
(14)Â
To pay, and to deduct from and charge against the pension fund,
any taxes which may be imposed thereon, whether with respect to the
income, property or transfer thereof, or upon or with respect to the
interest of any person therein, which the fund is required to pay;
to contest, in its discretion, the validity or amount of any tax,
assessment, claim or demand which may be levied or made against or
in respect of the pension fund, the income, property or transfer thereof,
or in any matter or thing connected therewith.
(15)Â
To appoint any persons or firms (including, but not limited
to, accountants, investment advisors, counsel, actuaries, physicians,
appraisers, consultants, professional plan administrators and other
specialists), or otherwise act to secure specialized advice or assistance,
as it deems necessary or desirable in connection with the management
of the fund. To the extent not prohibited by applicable law, the employer
shall be entitled to rely conclusively upon and shall be fully protected
in any action or omission taken by it in good faith reliance upon,
the advice or opinion of such persons or firms, provided such persons
or firms were prudently chosen by the employer, taking into account
the interests of the participants and beneficiaries and with due regard
to the ability of the persons or firms to perform their assigned functions.
(16)Â
To retain the services of one or more persons or firms for the
management of (including the power to acquire and dispose of) all
or any part of the fund assets, provided that each of such persons
or firms is registered as an investment advisor under the Investment
Advisers Act of 1940,[2] is a bank (as defined in that act), or is an insurance
company qualified to manage, acquire or dispose of pension trust assets
under the laws of more than one state; in such event, the employer
shall follow the directions of such investment manager or managers
with respect to the acquisition and disposition of fund assets, but
shall not be liable for the acts or omissions of such investment manager
or managers, nor shall it be under any obligation to review or otherwise
manage any fund assets which are subject to the management of such
investment manager or managers. If the employer appoints a trustee,
the trustee shall not be permitted to retain such an investment manager
except with the express written consent of the employer.
[2]
Editor's Note: See 15 U.S.C. § 80b–20.
C.Â
Common investments. The employer shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account, but may invest contributions and any
profits or gains therefrom in common investments.
D.Â
Compensation and expenses of appointed trustee. If a trustee is appointed,
the trustee shall be entitled to such reasonable compensation as shall
from time to time be agreed upon by the employer and the trustee,
unless such compensation is prohibited by law. Such compensation,
and all expenses reasonably incurred by the trustee in carrying out
its functions, shall constitute a charge upon the employer or the
pension fund, which may be executed at any time after 30 days' written
notice to the employer. The employer shall be under no obligation
to pay such costs and expenses, and, in the event of its failure to
do so, the trustee shall be entitled to pay the same, or to be reimbursed
for the payment thereof, from the pension fund.
E.Â
Periodic accounting. If a trustee is appointed, the pension fund
shall be evaluated annually, or at more frequent intervals, by the
trustee and a written accounting rendered as of each fiscal year end
of the fund, and as of the effective date of any removal or resignation
of the trustee, and such additional dates as requested by the employer,
showing the condition of the fund and all receipts, disbursements
and other transactions effected by the trustee during the period covered
by the accounting, based on fair market values prevailing as of such
date.
F.Â
Value of the pension fund. All determinations as to the value of
the assets of the pension fund, and as to the amount of the liabilities
thereof, shall be made by the employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the participants and beneficiaries and their estates. In making
any such determination, the employer or trustee shall be entitled
to seek and rely upon the opinion of or any information furnished
by brokers, appraisers and other experts, and shall also be entitled
to rely upon reports as to sales and quotations, both on security
exchanges and otherwise as contained in newspapers and in financial
publications.
A.Â
Amendment of the plan. The employer may amend this plan at any time
or from time to time by an instrument, in writing, executed in the
name of the employer under its Municipal Seal by officers duly authorized
to execute such instrument and delivered to the Board; provided, however:
(1)Â
That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which each is
entitled under this plan with respect to contributions previously
made;
B.Â
Termination of the plan. The employer shall have the power to terminate
this plan in its entirety at any time by an instrument in writing
executed in the name of the employer.
C.Â
Automatic termination of contributions. Subject to the provisions
of the Act governing financially distressed municipalities, the liability
of the employer to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
D.Â
Distribution upon termination.
(1)Â
In the event of the termination of the plan, all amounts of vested
benefits accrued by the affected participants as of the date of such
termination, to the extent funded on such date, shall be nonforfeitable
hereunder. In the event of termination of the plan, the employer shall
direct either that the Plan Administrator continue to hold the vested
accrued benefits of participants in the pension fund in accordance
with the provisions of the plan (other than those provisions related
to forfeitures) without regard to such termination until all funds
have been distributed in accordance with the provisions, or that the
Plan Administrator immediately distribute to each participant an amount
equal to the vested accrued benefit to the date of plan termination.
(2)Â
If there are insufficient assets in the pension fund to provide for
all vested accrued benefits as of the date of plan termination, priority
shall first be given to the distribution of any amounts attributable
to mandatory or voluntary employee contributions before assets are
applied to the distribution of any vested benefits attributable to
other sources hereunder.
(3)Â
All other assets attributable to the terminated plan shall be distributed
and disposed of in accordance with the provisions of applicable law
and the terms of any instrument adopted by the employer which effects
such termination.
E.Â
Residual assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the employer
insofar as such return does not contravene any provision of law, and
any remaining balance, in excess of employer contributions, shall
be returned to the commonwealth.
F.Â
Exclusive benefit rule. In the event of the discontinuance and termination
of the plan as provided herein, the employer shall dispose of the
pension fund in accordance with the terms of the plan and applicable
law; at no time prior to the satisfaction of all liabilities under
the plan shall any part of the corpus or income of the pension fund,
after deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
A.Â
Actuarial valuations.
(1)Â
The plan's actuary shall perform an actuarial valuation at least
biennially. Such biennial actuarial valuation report shall be made
as of the beginning of each plan year occurring in an odd-numbered
calendar year, beginning with the year 1985 and shall be prepared
and certified by an approved actuary, as such term is defined in the
Act.
(2)Â
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by the Act or any other expense which
is permissible under the terms of the Act and which are directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the pension fund. Such allowable expenses
shall include but not be limited to the following:
(a)Â
Investment costs associated with obtaining authorized investments
and investment management fees;
(b)Â
Accounting expenses;
(c)Â
Premiums for insurance coverage on fund assets;
(d)Â
Reasonable and necessary counsel fees incurred for advice or
to defend the fund; and
(e)Â
Legitimate travel and education expenses for plan officials;
provided, however, that the municipal officials of the employer, in
their fiduciary role, shall monitor the services provided to the plan
to ensure that the expenses are necessary, reasonable and benefit
the plan; and further provided, that the Plan Administrator shall
document all such expenses item by item, and where necessary, hour
by hour.
B.Â
Duties of Chief Administrative Officer.
(1)Â
Such actuarial reports shall be prepared and filed under the supervision
of the Chief Administrative Officer.
(2)Â
The Chief Administrative Officer of the plan shall determine the
financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum municipal obligation
of the employer with respect to funding the plan for any given plan
year. The Chief Administrative Officer shall submit the financial
requirements of the plan and the Minimum Municipal Obligation of the
employer to the Board annually and shall certify the accuracy of such
calculations and their conformance with the Act.
C.Â
Benefit plan modifications. Prior to the adoption of any benefit
plan modification by the employer, the Chief Administrative Officer
of the plan shall provide to the Board a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Board the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum municipal obligation of the employer
with respect to the plan.
A.Â
Employment rights. No employee of the employer nor anyone else shall
have any rights whatsoever against the employer or the Plan Administrator
as a result of this plan except those expressly granted hereunder.
Participation in this plan shall not give any right to any employee
to be retained in the employ of the employer, nor shall interfere
with the right of the employer to discharge any employee and to deal
with such employee without regard to the effect such treatment might
have upon participation in this plan.
B.Â
Meaning of certain words. For purposes of this plan, the masculine
gender shall include the feminine gender and the singular shall include
the plural, and vice versa, in all cases wherever the person or context
shall plainly so require. Headings of sections and subsections are
inserted only for convenience of reference and are not to be considered
in the construction of the plan.
C.Â
Information to be furnished by the employer. The employer shall furnish
to the Plan Administrator (and where applicable, the trustee) information
in the employer's possession as the Plan Administrator and the trustee
shall require from time to time to perform their duties under the
plan.
D.Â
Severability of provisions. Should any provisions of this plan be
held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this plan, and the plan shall
be construed and enforced as if said illegal and invalid provisions
had never been inserted herein.
E.Â
Incapacity of participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of pension benefits hereunder, the Plan Administrator, upon
the receipt of satisfactory evidence that such participant is so incapacitated
and that another person or institution is maintaining the participant
and that no guardian or committee has been appointed for the participant,
may provide for such payment of pension benefits hereunder to such
person or institution so maintaining the participant, and any such
payments so made shall be deemed for every purpose to have been made
to such participant.
F.Â
Pension fund for sole benefit of participants. The income and principal
of the pension fund are for the sole use and benefit of the participants
covered hereunder, and to the extent permitted by law, shall be free,
clear and discharged from and are not to be in any way liable for
debts, contracts or agreements, now contracted or which may hereafter
be contracted, and from all claims and liabilities now or hereafter
incurred by any participant or beneficiary.
G.Â
Benefits for a deceased participant. If any benefit shall be payable
under the plan to or on behalf of a participant who has died, if the
plan provides that the payment of such benefits shall be made to the
participant's estate, and if no administration of such participant's
estate is pending in the court of proper jurisdiction, then the Plan
Administrator, at its sole option, may pay such benefits to the surviving
spouse of such deceased participant, or, if there is no surviving
spouse, to such participant's then living issue, per stirpes; provided,
however, that nothing contained herein shall prevent the Plan Administrator
from insisting upon the commencement of estate administration proceedings
and the delivery of any such benefits to a duly appointed executor
or administrator.
H.Â
Assets of the fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
I.Â
Personal liability. Subject to the provisions of the Act and unless
otherwise specifically required by other applicable laws, no past,
present or future officer or agent of the employer or Plan Administrator
shall be personally liable to any participant, beneficiary or other
person under any provision of the plan.
J.Â
Construction of document. This plan may be executed and/or conformed
in any number of counterparts, each of which shall be deemed an original
and shall be construed and enforced according to the laws of the commonwealth,
excepting such commonwealth's choice of law rules.