[Adopted 12-21-1992 by Ord. No. 370]
A pension plan is hereby established for the
full-time nonuniformed employees of Tobyhanna Township. Such plan
shall be under the direction of the Township Supervisors and shall
be applied under such regulations as the Supervisors may prescribe.
The effective date of this plan shall be December 26, 1992.
As used in this article, the following terms
shall have the meanings indicated:
A benefit determined by an actuary to be equivalent in value
to the participant's normal retirement benefit, as defined herein,[1] provided that such actuarial equivalent is within the
limitations provided herein.
The governing body of the Township of Tobyhanna acting in
the capacity of administrator of the Nonuniformed Employees Pension
Plan established pursuant to this article.
The persons who may be appointed to serve in an advisory
capacity to the Board in the administration of the plan.
The moneys received by a participant in each and every month,
including base pay, longevity pay, night differential, overtime and
any other such increments. Payments made for unused vacation time
will be included for computation of retirement benefits. Payments
made for unused sick time will not be included for computation of
retirement benefits.
The moneys paid by the employer to the plan and/or the payroll deductions made monthly from the compensation of the participants and paid to the plan; except that "contributions" in § 26-4F shall mean the participant's total contributions accumulated during the period of employment and participation in this plan.
The Township of Tobyhanna.
The value of any participant's benefits which shall accrue
by virtue of that participant's service rendered subsequent to the
enactment of this article.
Every person duly appointed from time to time by the employer
as a full-time nonuniformed employee working not less than 35 hours
per week with definite compensation, subject to reasonable vacation
and sick leave, to be included in the plan upon date of hire.
The Nonuniformed Employees Pension Plan established pursuant
to this article.
Total aggregate service with the employer, not necessarily
continuous, beginning upon the date of hire. Service of six months
or more will be counted as a full year; service of less than six months
will be disregarded.
The cessation of service by the participant for any reason,
including death, disability, resignation and employer termination.
Voluntary leaves of absence, without pay, shall not be considered
a termination for purposes of this article; but no period of such
leave shall be computed in the total service for pension benefit purposes.
Leaves of absence with pay shall not be considered a termination within
the meaning of this article (provided that the municipality is able
to certify to the Department of the Auditor General that such participant
on a leave of absence with pay is within the definition of a participant
as set forth herein); but such leaves may be computed in the total
service for pension benefit purposes.
The present value of any participant's benefits accrued prior
to the enactment of this article by virtue of that participant's prior
service.
A.
The Board
shall administer the plan by such regulations as shall from time to
time be necessary for the effective maintenance of the plan, provided
that no regulation shall be contrary to the statutes of the Commonwealth
of Pennsylvania and/or applicable federal regulations.
B.
The Board
may appoint a Committee which shall act as an advisory body to the
Board in the administration of the plan according to the regulations
established pursuant to this section.
C.
Composition
of Committee.
(1)
The
Committee shall consist of three members, which number shall include
one chosen from the Board and one chosen by a majority of the participants
in the plan. The final member of the Committee shall be neither a
member of the Board nor a participant in the plan, but shall be a
citizen-at-large, and shall be appointed by the Board.
(2)
All
persons so designated shall serve at the pleasure of the Board for
a three-year term, with one member being selected each year. Any member
may resign upon written notice to the Board and the Committee. Any
vacancies in the Committee arising from resignation, death or removal
shall be filled by the Board by the procedure set out herein for the
member of the Committee whose resignation, death or removal has created
the vacancy
(3)
The
Committee shall meet no less than annually and shall serve without
compensation for its services.
D.
The Committee
shall act by such procedure as the Committee shall establish, provided
that all decisions shall be by majority vote. The Committee may authorize
one of its members to execute any document or documents on behalf
of the Committee, may adopt bylaws and regulations as it deems necessary
for the conduct of its affairs and may appoint such accountants, counsel,
specialists or such other personnel as it may deem desirable for the
proper administration of the plan, provided that all such executions
of documents, adoptions of bylaws and regulations and appointments
shall be submitted to the Board for approval.
E.
The Committee
shall keep a record of all of its proceedings and acts which shall
relate to the plan, and shall keep all such books of accounts, records
and other data as shall be necessary for the proper administration
of the plan. All actions of the Committee shall be communicated to
the Board in a timely fashion.
F.
All such
reasonable expenses incurred in the administration of the plan, including
but not limited to fees for the services of specialists including
actuaries, accountants, consultants and legal counsel, shall be approved
by the Board and all may be paid from the plan, provided that no such
payment shall be contrary to the statutes of the Commonwealth of Pennsylvania.
G.
No member
of the Board or the Committee established pursuant to this section
shall incur any liability for any action or failure to act, excepting
only liability for its own gross negligence or willful misconduct.
The employer shall indemnify each member of the Board and the Committee
against any and all claims, loss, damages, expense and liability arising
from any action or failure to act, except for such that is the result
of gross negligence or willful misconduct of such member.
A.
Eligibility for normal retirement.
(1)
A participant in the plan may retire from active employment
on the first day of the month following the attainment of age 62,
provided that the participant has completed 10 or more years of service
with the employer.
(2)
A participant shall retire on the first day of the
month following the attainment of age 70.
B.
Early retirement. A participant may retire on the
first day of the month following the attainment of age 60, provided
that the participant has completed 20 or more years of service.
C.
Pension
benefit formula. Each eligible participant shall receive a monthly
benefit payable at his normal retirement date equal to 1.50% of average
monthly compensation for each year of benefit service credited up
to a maximum of 20 years.
[Amended 11-13-2017 by Ord. No. 540; 12-20-2021 by Ord. No. 566]
D.
Actuarially equivalent benefits. In lieu of the retirement
benefits contained herein, a participant may elect, in writing, an
actuarial equivalent as may be provided for by regulation, provided
that no such equivalent benefit may work the effect of providing a
lump sum amount of money, or provide for a pension for a period less
than life, or provide for a pension less than the amount herein established,
unless such amount is reduced to pay the cost of an additional benefit
such as a one-hundred-twenty-month certain benefit.
E.
Vesting.
[Amended 11-13-2017 by Ord. No. 540; 12-20-2021 by Ord. No. 566]
(1)
If a participant separates from the service of the employer other
than by retirement or death, he shall be entitled to a vested deferred
pension equal to the benefit accrued to the date of termination multiplied
by the vesting percentage based upon his years of vesting service
to the date of termination. His vesting percentage shall be determined
by the vesting schedule set forth below:
|
Years of Service
|
Vesting Percentage
|
|---|---|
|
0 to 4
|
0%
|
|
5 or more
|
100%
|
|
Transition rule: Notwithstanding the above vesting schedule,
the vesting provisions of the plan before January 1, 2021, shall continue
to apply to participants who do not have an hour of service on or
after such date.
|
(2)
Such vested deferred monthly benefit may be funded
through the purchase of a single premium, deferred annuity, which
shall provide for the monthly benefit to be paid to the participant
upon attainment of that participant's normal retirement age as set
forth in this section.
F.
Termination.
(1)
If for any reason a participant shall terminate service
with the employer prior to becoming vested, that participant shall
be entitled to a refund of that participant's contributions plus interest
at a rate of 6% per annum. Such interest shall be uniform for all
participants.
(2)
If a participant shall subsequently return to service
and return to the plan the contributions plus interest which were
refunded to that participant upon termination, the participant shall
be entitled to credit for the prior years of service to the extent
of the return of contributions.
G.
Nonalienation of benefits and vesting.
(1)
No benefit under the plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, nor shall any such benefits be in any manner
liable for or subject to garnishment, attachment, execution, levy
or other legal process.
(2)
Further, all benefits granted herein shall vest in
the participant upon completion of the requirements for eligibility,
and that participant's .benefits shall continue in the amount and
in the form in which that participant first became entitled to them.
H.
Ad hoc cost
of living increase. Any former employee retired on or before January
1, 2021, shall receive a one-time cost of living (COLA) increase of
5.0% to their pension payable from the plan.
[Added 12-20-2021 by Ord. No. 566]
A.
Contributions of the employer.
(1)
It shall be the liability of the employer to fund
the past service liability as determined by the actuary, provided
that such liability may be funded over a period not to exceed 21 years,
such period commencing with the passage of this article.
(2)
It shall be the liability of the employer to fund
for the future service cost of the plan.
(3)
It shall be the responsibility of the employer to
maintain the actuarial soundness of the plan.
(4)
Contributions to the plan paid by the employer shall
be at an amount determined by an annual actuarial study, which study
shall be completed on a calendar-year basis.
B.
Contributions of the participants.
(1)
Contributions to the plan paid by the participants shall be at the rate of 0% of monthly compensation. 2605 12-5-2002 TOBYHANNA CODE§ 26-7§ 26-5
(2)
Contributions to the plan paid by the participants
may be reduced or eliminated by the Board at its discretion. The reduction
or elimination of employee contributions shall be effected by resolution
and shall be effective for one calendar year only.
C.
Allocation of commonwealth funds. The payments made
by the State Treasurer to the employer from the moneys received from
the taxes paid on the premiums of foreign casualty insurance companies
for purposes of retirement or disability benefit pensions for municipal
employees shall be used as follows: to reduce the unfunded liability,
or after such liability is funded, to apply against the annual obligation
of the employer for future service cost, or to the extent that the
payments may be in excess of such obligation, to reduce or eliminate
the contributions paid by the participants.
D.
Allocation of assets of existing pension plans. Any
assets of any existing pension plans for the nonuniformed employees
of the township are hereby transferred to the plan established pursuant
to this article, and shall be applied against the unfunded liability.
E.
Gifts, bequests and grants. All other moneys and property
received by the plan, including gifts, bequests, devises and grants,
shall be applied against the employer portion of the future service
cost unless otherwise specifically provided.
Any participant in the plan with at least six
months of service with the employer who thereafter shall enter the
military service of the United States of America shall have credited
to that participant's service record for pension benefit purposes
only the initial term of military service of the participant, provided
that the participant returns to service with the employer within six
months after said participant's separation from such military service.
Upon termination of the plan, the assets shall
be distributed as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 26-4 for all participants who have retired prior to the termination of the plan or who are eligible to retire at the time of the termination of the plan.
B.
Sufficient funds shall be maintained to provide the vested pension benefits prescribed in § 26-4 for all participants who are eligible for such benefits.
C.
Of the remaining funds, those which can be identified
as contributions of the employees and employer shall be distributed
as the Board sees fit, provided that such distribution is made on
a uniform basis.
A.
Neither the establishment of the plan hereby created,
nor any modification thereof, nor the creation of any fund or account,
nor the payment of any benefits shall be construed as giving to any
participant or other person any legal or equitable right against the
employer, or any officer or employee thereof, or the Board except
as herein provided.
B.
Under no circumstances shall the plan hereby created
constitute a contract for continuing employment for any participant
or in any manner obligate the employer to continue or to discontinue
the services of an employee.
C.
This plan has been established and shall be maintained
by the employer in accordance with the laws of the Commonwealth of
Pennsylvania. The plan shall continue for such period as may be required
by such laws, provided that the employer may, by its own action, discontinue
this plan should such laws provide, and the employer reserves the
right to take such action in its sole and absolute discretion. Upon
termination, the employer shall have no liability hereunder other
than that imposed by law.
A.
All investments by the Board of the assets of this
plan shall comply with such regulations as the Board shall establish
for the purpose of investing such funds.
B.
The Board may also purchase retirement annuities or
retirement income endowment policies, or a combination of both, which
provide a cash value with which to fund pensions, provided that the
Board shall determine the value of any policies purchased, the company
with which the contracts shall be made and the time to purchase such
policies. The Board shall also have the obligation to ensure that
the policies purchased provide benefits on a uniform scale, and that
such policies are endorsed to the ownership of the plan.
The Board reserves the right to amend at any time, in whole or in part, any or all of the provisions of the plan, provided that no such amendment shall authorize or permit any part of the plan to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries or their estates, nor shall any amendment divest a participant of benefits vested by the provisions of § 26-4. All such amendments shall comply with the applicable statutes of the Commonwealth of Pennsylvania.
A.
This plan shall be constructed according to the laws
of the Commonwealth of Pennsylvania, and all provisions hereof shall
be administered according to the laws of such commonwealth.
B.
Wherever any words are used herein in the masculine
gender, they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply; and wherever
any words are used herein in the singular form, they shall be construed
as though they were also used in the plural form in all cases where
they would so apply.
C.
Headings of sections and subsections of this article
are inserted for convenience of reference. They constitute no part
of this plan, and are not to be considered in the construction thereof.
