[Adopted 7-14-2005 by Ord. No. 2005-9]
Caln Township, being a member municipality of the Pennsylvania Municipal Retirement System, hereby elects to change its member benefits in that system as authorized by the Pennsylvania Municipal Retirement Law, Act 15 of 1974, as amended, and does hereby agree to be bound by all the requirements and provisions of said Law, and to assume all obligations, financial and otherwise, placed upon member municipalities. All references hereafter shall be based on benefits negotiated between the Board and the municipality under the provisions of Article IV of the Pennsylvania Municipal Retirement Law.
Editor's Note: See 53 P.S. § 881.101 et seq.
Membership in the Pennsylvania Municipal Retirement System shall be mandatory for all full-time municipal employees of the Township. Membership for elected officials and employees hired on a temporary or seasonal basis is optional. The election by elected officials, temporary or seasonal employees to join the system must be made within one year after the official or the employee first enters the service of the Township. Membership for part-time employees and individuals paid only on a fee basis is prohibited.
All existing part-time employees who are members of the Township plan in the system shall remain members of the Township plan in the system unless the employee elects to withdraw from the pension plan. A member election to withdraw from the plan must be made in writing and received by the Township before July 1, 2005, and shall be irrevocable.
All existing part-time employees who are not enrolled in the Township plan in the system may join the Township plan in the system if the employee: 1) makes a written election to join the Township plan in the system, which must be received by the Township before July 1, 2005; and 2) makes the required payment of all member contributions plus regular interest that would have been credited to those contributions had they participated in the system from their date of hire. The election, once made, is irrevocable. Failure of the part-time employee to make the required contributions and regular interest payments as determined by the system shall be considered the same as if the part-time employee had chosen not to participate in the system.
Credit for prior service for original members is granted for each year or partial year thereof that the member was employed by the Township from original date of hire or the expiration of the member's probationary period if one so existed. Benefits provided to members in the agreement dated July 14, 2005, shall accrue based on all credited service granted and earned in accordance with this section.
Payment for any obligation established by the adoption of this article and Ordinance No. 2005-7 and the agreement between the Board and Caln Township shall be made by the Township in accordance with the Pennsylvania Municipal Retirement Law and Act 205 of 1984, the Municipal Pension Plan Funding Standard and Recovery Act.
As part of this article and Ordinance No. 2005-7, the Township agrees that the system shall provide the benefits set forth in the agreement between the Board and Caln Township, dated July 14, 2005. The passage and adoption of this article by Caln Township is an official acceptance of said agreement and the financial obligations resulting from the administration of said benefit package. Caln Township hereby assumes all liability for any unfundedness created due to the acceptance of the benefit structure outlined in the above-referenced agreement.
Caln Township intends this article and Ordinance No. 2005-7 to be the complete authorization of the Township's municipal pension plan and it shall become effective and specifically repeal Ordinance Nos. 1986-1 and 1990-8 either immediately or on May 26, 2005, which is the effective date of the agreement dated July 14, 2005, between the Pennsylvania Municipal Retirement System and Caln Township, whichever is later.
A duly certified copy of this ordinance and the referenced agreement shall be filed with the Pennsylvania Municipal Retirement System of the Commonwealth of Pennsylvania. Membership for the municipal employees of Caln Township in the Pennsylvania Municipal Retirement System shall be effective the first day of January, 1966, with the revised plan structure reflected in the agreement dated July 14, 2005, effective the twenty-sixth day of May, 2005.