[Adopted 1-12-1998 by Ord. No. 1063-98]
[1]
Editor's Note: The title of this plan was changed from "Retirement
Income Plan" to "Nonuniformed Pension Plan" 10-27-2014 by Ord. No.
1438-2014.
The City of Coatesville shall pay the full cost
of the plan. Employee contributions shall not be required.
The City Council of the City of Coatesville
shall annually set aside, apportion and appropriate to the plan such
amount as by law and actuarial standards and recommendations shall
be proper.
All employees (excluding police officers) of
the City of Coatesville who work 1,000 or more hours per year in the
City's employ shall become participants of the plan on the date of
employment.
A.
Normal retirement.
(1)
An employee shall be eligible for normal retirement
after the employee attains the age of 65.
(2)
Normal retirement pension is payable monthly during
lifetime with payments ceasing upon death; however, if the retired
employee dies before receiving 60 monthly payments from the plan,
payments will continue to the employee's named beneficiary until the
end of the sixty-month period.
(3)
Monthly pension.
[Amended 2-28-2000 by Ord. No. 1126-2000]
(a)
The amount of the monthly pension originally
equal to $25 per year of the retirement employee's accredited service
shall be modified as follows:
[1]
Effective January 1, 2000, the City shall increase
the pension benefit by $5 per month to $30 per month per year of service
as a City employee.
[2]
Effective January 1, 2001, the City shall increase
the pension benefit by $5 per month to $35 per month per year of service
as a City employee.
[3]
Effective January 1, 2002, the City shall increase
the pension benefit by $5 per month to $40 per month per year of service
as a City employee.
[4]
Effective January 1, 2003, the City shall increase
the pension benefit by $5 per month to $45 per month per year of service
as a City employee.
[5]
Effective January 1, 2004, the City shall increase
the pension benefit by $5 per month to $50 per month per year of service
as a City employee.
[6]
Effective January 1, 2014, the City shall increase the pension
benefit for nonuniformed members of the bargaining unit represented
by the union hired prior to January 1, 2001 (and all nonunion, nonuniform
employees of the City) by $5 per month to $55 per month per year of
service as a City employee.
[Added 10-27-2014 by Ord. No. 1439-2014]
[7]
Effective January 1, 2015, the City shall increase the pension
benefit for nonuniformed members hired prior to January 1, 2001 (and
all nonunion, nonuniformed employees of the City) by $5 per month
to $60 per month per year of service as a City employee.
[Added 10-27-2014 by Ord. No. 1439-2014]
[8]
Effective January 1, 2016, the City shall increase the pension
benefit for nonuniformed members of the bargaining unit represented
by the union hired prior to January 1, 2001 (and all nonunion, nonuniformed
employees of the City) by $5 per month to $65 per month per year of
service as a City employee.
[Added 10-27-2014 by Ord. No. 1439-2014]
[9]
Effective January 1, 2017, the City shall increase the pension
benefit for nonuniformed members of the bargaining unit represented
by the union hired prior to January 1, 2001 (and all nonunion, nonuniformed
employees of the City) by $5 per month to $70 per month per year of
service as a City employee.
[Added 10-27-2014 by Ord. No. 1439-2014]
(b)
Each employee shall vest, for purposes of qualifying
for the pension, after five years of service with the City of Coatesville.
(c)
Credited service is calculated in whole years
and in completed months.
B.
Late retirement. If an employee continues working
after the normal retirement date, the employee's pension will not
start until the employee actually retires from active employment.
Such late retirement pension shall be equal to the pension accrued
to the employee's late retirement date, based upon the employee's
credited service determined at the employee's late retirement date.
C.
Early retirement. An employee is eligible to retire
prior to the normal retirement date after such employee attains age
55 and completes 10 years of service. Such early retirement pension
shall be equal to the pension accrued to the employee's early retirement
date, reduced to reflect payments made to the employee over a longer
period of time.
[Amended 1-24-2000 by Ord. No. 1118-2000; 3-24-2003 by Ord. No. 1216-2003]
If any employee dies prior to retirement but
after meeting the eligibility requirements for early retirement, a
death benefit shall be payable to said employee's surviving spouse,
provided said deceased employee has been married for at least one
year as of the date of the employee's death. The death benefit shall
be a monthly pension equal to 50% of the pension the deceased employee
would have been entitled to receive if the employee had retired on
the date of death.
If an employee terminates employment prior to
meeting the eligibility requirements for normal retirement but after
the employee has completed five years of service, the employee shall
be entitled to a vested deferred monthly pension beginning on the
employee's normal retirement date equal to the employee's accrued
pension at the date of the employee's termination.
The pension accrued at any date other than the
employee's normal retirement date is equal to the pension determined
according to the normal retirement benefit formula, but based upon
the employee's credited service at the date of determination.
A.
An employee's monthly pension may be payable under one of the options listed in Subsection A(1) through (3) below. The amount of pension will be actuarially adjusted for each option:
(1)
Lifetime pension: a monthly pension payable as long
as the retired employee lives, with payments ceasing upon the retired
employee's death.
(2)
Joint and survivor pension: a monthly pension payable
as long as the retired employee lives. If the employee's named survivor
is still living upon the retired employee's death, payments shall
continue during the survivor's lifetime. Pension payments to the survivor
could be 100%, 75%, 66 2/3% or 50%, in accordance with the percentage
election made at the time of this pension option election.
(3)
Lifetime pension with certain period: a monthly pension
payable as long as the retired employee lives. Upon the retired employee's
death, payments shall continue to the employee's designated beneficiary
for the remainder of the certain period if the retired employee dies
before a specified number of monthly payments (120 or 180) have been
made. If the retired employee lives beyond the certain period, payments
shall continue as long as the retired employee lives.
B.
The employee's choice of a pension option shall be
made before payments begin and cannot be changed thereafter.
[Amended 10-27-2014 by Ord. No. 1438-2014]
The Pension Plan Administrator, designated by the Council of
the City, shall administer the plan.
[Added 2-22-1999 by Ord. No. 1097-99]
A.
The Nonuniform Pension Fund shall, at all times, be under the direction and control of the Council and shall be committed to the custody and management of a Nonuniform Pension Commission, consisting of the President of Council, City Manager and the Director of Finance, whose membership on said Commission shall be concurrent with their tenure in office, one member of the Public Works Department, which member shall be selected by a majority of Public Works Department at an election to be held on the second Monday of January of each year at a time to be fixed by the Director of Public Works, who shall preside at such election, one member of the Administrative staff to be selected at an election to be held on the second Monday of January of each year at a time to be fixed by the Director of Finance, who shall preside at such election, and one resident of the City, who shall serve for two-year terms and be appointed by the Council pursuant to § 2-504 of the Coatesville Home Rule Charter.
B.
The members of said Commission shall receive no additional
compensation for the services thus performed. The President of Council
or his or her designee on Council shall be the President, the City
Manager the Secretary, and the Director of Finance the Treasurer of
said Commission, respectively. The Commission shall keep full and
accurate accounts of all its transactions. It shall have full power
to make rules for the transaction of its business and application
of its funds, its time and place of meeting and all other matters
necessary for the conduct of business, subject to the special provisions
and regulations contained in this chapter or such ordinances as may
hereafter be passed relating thereto. The Commission shall meet at
least once every three months at a stated time or at such times as
it may by resolution designate or upon the call of the President for
the transaction of such business as may properly come before it. A
quorum shall consist of three members for the transaction of business.
All incidental expenditures necessary to the transaction of the business
of the Commission shall be separately provided for by the City. No
money shall be paid out of the pension fund except for the purpose
of pensions as contemplated in this chapter. The Treasurer, if required
by the Commission, shall give a surety bond to the City, in a sum
not less than double the probable amount of money that shall come
into his or her hands, for the faithful performance of his or her
duties, the premium on which bond shall be paid by the City. The Commission
shall make an annual report to the City Council on the first Monday
of January in each year of all receipts and disbursements of the fund
and such other matters as should be properly embodied in such report.
C.
The Nonuniform Pension Commission shall appoint a
qualified and reputable banking or investment institution to serve
as custodian of the Nonuniform Pension Fund investment account. The
Nonuniform Pension Fund investment account shall consist of all moneys
in the hands of the Commission not needed for the payment of pensions,
plus a reasonable amount to be retained by the Commission for withdrawals.
Said custodian shall invest and reinvest said funds and the accruals
thereon in such investments as are commonly called "legal investments
for trust funds" as said Commission may direct. All custodial fees
shall be paid by the Nonuniform Pension Fund. All warrants on said
fund shall be drawn by the individuals authorized to sign checks for
said fund.
D.
Attendance.
[Added 4-22-2013 by Ord. No. 1404-2013]
(1)
Any
member of the Nonuniform Pension Commission absent from three or more
consecutive regular meetings of the Nonuniform Pension Commission
without an approved leave of absence granted by the City Council after
public hearing and prior written notice thereof shall be removed from
the Nonuniform Pension Commission by the City Council of the City
of Coatesville.
(2)
Any
member of the Nonuniform Pension Commission absent from 20% or more
of the regularly scheduled meetings of the Nonuniform Pension Commission
within any one-year period shall be notified in writing by the City
Manager acting on behalf of the City Council of the attendance requirements
of this subsection. Any member of the Nonuniform Pension Commission
who is absent from 20% or more of the regularly scheduled meetings
within a one-year period shall thereafter be removed for cause from
such position by the City Council with prior written notice after
public hearing unless such member resigns in writing or waives the
public hearing in writing.
(3)
Any
member of the Nonuniform Pension Commission may be removed for cause
as determined by the City Council after public hearing and prior written
notice thereof.
(4)
The
provisions of this subsection shall not preclude the removal of any
member of the Nonuniform Pension Commission without cause by the City
Council when authorized by state law, City Charter or City ordinance.
[Added 10-27-2014 by Ord. No. 1438-2014]
A.
Applicability.
(1)
As of the effective date of this section, the provisions of this § 38-18.1 shall apply to any member of the bargaining unit represented by the union hired as a full-time employee by the City on or after January 1, 2001, who is regularly scheduled to work and actually works 1,000 or more hours per year, and shall supersede any otherwise contradictory or contrary provision of this Article II (each, a "covered employee").
(2)
Notwithstanding the foregoing, the provisions of this Article II shall remain in full force and effect, unless otherwise contrary to the provisions of this § 38-18.1, in which case the provisions of this § 38-18.1 shall control. Any period of "service" referred in this section with respect to employment by the City shall be computed from the first date of employment with the City and need not be continuous; periods of layoff, suspension or leave of absence do not interrupt service. A "year of service," for purposes of this section, means a full year during which a covered employee was an employee of the City and/or made required contributions to the Nonuniformed Pension Plan for military service time prior to participating in the Nonuniformed Pension Plan or for uniformed service after initial participation in the Nonuniformed Pension Plan.
B.
Retirement benefits; amount of pension. Every covered employee who shall have attained the age of 60 years and upwards and who shall have served as an employee for a period of 20 years or more shall, upon the date of his or her retirement and upon application to the Pension Plan Administrator, during the remainder of his or her life, receive the pension fixed by the provisions of the Nonuniformed Pension Plan, as applicable, Act 317, approved June 23, 1931 (P.L. 932), as amended, and this § 38-18.1.
(1)
Full pension. During the lifetime of any covered employee, he
or she shall be entitled to receive a pension annually from the fund
set aside for such purpose under the Nonuniformed Pension Plan (the
"fund"), of 50% of the amount which would constitute the highest average
annual salary or wages which he or she earned during any five years
of service for the City or which would be determined by the rate of
the monthly pay of such person at his or her date of retirement, whichever
is higher, reduced by an amount equal to 40% of the primary insurance
amount of social security paid or payable to the covered employee
(the "full pension"). Such pension shall be paid in monthly payments.
(2)
Entitlement to full pension. A covered employee is entitled
to his or her full pension when:
(a)
Such covered employee has served the City for 20 years of service
and is terminated on or after the date on which such covered employee
has attained the age of 60 years. In such case, the covered employee
is entitled to his or her full pension during the remainder of his
or her life after the later of:
(b)
Such covered employee has served the City for 20 years of service
and is terminated before the date on which such covered employee has
attained the age of 60 years, provided that he or she continues his
or her contributions into the fund at the same rate as when he or
she left employment until he or she attains the age of 60 years. In
such case, the covered employee is entitled to his or her full pension
during the remainder of his or her life after his or her attainment
of age 60; or
(3)
Entitlement to reduced pension. A covered employee is entitled
to a reduced pension when such covered employee has served the City
for at least 12 years and is terminated before reaching age 60 with
20 years of service. Such covered employee shall be entitled to receive
such portion of the full pension as the period of his or her service
up to the date of his or her termination with the City bears to the
total period of service (including the period of service up to the
date of his or her termination with the City) necessary to reach age
60 with 20 years of service (the "reduced pension"). In such case,
the covered employee is entitled to the portion of his or her full
pension calculated pursuant to the preceding sentence during the remainder
of his or her life after the later of:
(4)
Refund of contributions.
(a)
A covered employee who has contributed to the fund shall be entitled to a refund of the total amount of contributions, including any military service buy-back payment(s) paid into the fund by him or her and any payments for intervening military service, without interest, if such covered employee is not entitled to a full pension pursuant to Subsection B(2) of this section or a reduced pension pursuant to Subsection B(3) of this section and such covered employee has served less than 12 years and ceases to be in the employ of the City.
(b)
If any such covered employee has had returned to him or her the amount contributed, as aforesaid, and shall afterwards reenter the service of the City, he or she shall not be entitled to any pension under the terms of the Nonuniformed Pension Plan, unless he or she shall return to the fund the amount withdrawn, including any prior military service time buy-back payment(s), in which event the required period of service under this § 38-18.1 shall be computed from the date he or she first entered the service of the City. Otherwise, the date of his or her period of service shall commence upon reentry to City service. In the event of the death of any covered employee after he or she becomes entitled to a pension under this § 38-18.1 and has not elected to retire, the total amount of contributions, including any military service buy-back payment(s) paid into the fund by him or her, shall be paid over to his or her estate, without interest. In the event of the death of a covered employee before he or she becomes entitled to a pension under this § 38-18.1, the total amount of contributions, including any military service buy-back payment(s) paid into the fund by him or her, shall be paid over to his or her estate, without interest. In the event of the death of a covered employee before he or she receives in pension an amount equal to the covered employee's own contributions to the fund, then the balance of the covered employee's own contributions, including any military service buy-back payment(s), shall be paid over to his or her estate, without interest.
(5)
Forfeitures. To the extent applicable, upon the forfeiture of
any nonvested portion of a covered employee's accrued pension,
or of any other amount payable hereunder, the amount of such forfeiture
shall be credited against the future contribution obligations of the
City with respect to the Nonuniformed Pension Plan.
C.
Pension options.
(1)
A covered employee's monthly pension may be payable under one of the options listed in Subsection C(1)(a) through (c) of this section. The amount of pension will be actuarially adjusted for each option:
(a)
Lifetime pension: a monthly pension payable as long as the covered
employee lives, with payments ceasing upon the covered employee's
death.
(b)
Joint and survivor pension: a monthly pension payable as long
as the covered employee lives. If the covered employee's named
survivor is still living upon the covered employee's death, payments
shall continue during the survivor's lifetime. Pension payments
to the survivor may be 100%, 75%, 66 2/3% or 50%, in accordance
with the percentage election made at the time of the pension option
election.
(c)
Lifetime pension with certain period: a monthly pension payable
as long as the covered employee lives. Upon the covered employee's
death, payments shall continue to the covered employee's designated
beneficiary for the remainder of the certain period if the covered
employee dies before a specified number of monthly payments (120 or
180) have been made. If the covered employee lives beyond the certain
period, payments shall continue as long as the covered employee lives.
(2)
The covered employee's choice of a pension option shall
be made before payments begin and cannot be changed thereafter.
(3)
The normal form of retirement benefit for each covered employee shall be a lifetime pension in accordance with Subsection C(1)(a) of this section.
(4)
For purposes of this § 38-18.1, "actuarial equivalence" and "actuarial adjustment" mean any aggregate amounts, all equal in value, which are expected to be received under different forms of payment computed using the actuarial assumptions certified to the Public Employee Retirement Commission on its most-recent Act 205 Actuarial Valuation Report.
D.
Intervening military service.
(1)
Upon reemployment of a covered employee following the completion
of a period of active-duty military service in the uniformed services
of the United States, within the meaning of the Uniformed Services
Employment and Reemployment Act of 1994 (Pub. L. 103-353) ("USERRA"),
such covered employee shall have the right to: repay any amount previously
paid to him from the Nonuniformed Pension Plan; and make up any missed
required contributions with respect to such covered employee. The
rate of pay and required covered employee contributions shall be determined
using such rates that would have been in effect had such covered employee
not been absent due to active duty military service. For purposes
of the immediately preceding sentence, "active duty military service"
shall include any report-back period applicable under USERRA.
(2)
The maximum repayment period and other rights regarding a pension
not otherwise set forth in detail herein with respect to any covered
employee shall be determined in accordance with USERRA and 51 Pa.
C.S.A. § 7306(a)-(c), to the extent applicable.
E.
Retirement due to illness or disability. Should a covered employee become so permanently disabled as to render him or her unable to perform the duties of his or her position after 20 years of service with the City, he or she shall be entitled to a full pension calculated under this § 38-18.1 during such period of disability. Should a covered employee become so permanently disabled as to render he or she unable to perform the duties of his or her position after 10 years of service with the City but before the expiration of 20 years of service, such covered employee shall be entitled to a reduced pension, which shall equal such portion of the full pension as the period of his or her service up to the date of his or her permanent disability bears to the full twenty-year period of service. Such full pension or reduced pension shall begin as of the date of permanent disability. Proof of such disability shall consist of the sworn statement of three practicing physicians, designated by the Pension Plan Administrator, that the employee is in a condition of health which would permanently disable him from performing the duties of his or her position.
F.
Amount of contributions. All the aforesaid covered employees shall
pay into the fund monthly an amount equal to 5% of his or her gross
earnings in excess of the social security taxable wage base then in
effect and 3 1/2% of earnings equal to or less than the social
security taxable wage base then in effect.
G.
Missed contributions. While in City service, to the extent any covered employee who would otherwise have been obligated to make employee contributions pursuant to this § 38-18.1 fails to do so, he or she may purchase "past service credit" to cover the period of time during which no such contributions were made with respect to this § 38-18.1. Such past service credit may be purchased by making a payment to the City of Coatesville in a check delivered to the City Finance Department in an amount equal to the aggregate amount of each missed contribution plus interest calculated from the date such person became a covered employee until the date on which he or she submits an application to the Pension Plan Administrator, on the form it provides, to purchase such past service credit. For purposes of the preceding sentence, "interest" shall be based upon the aggregate investment experience of the Nonuniformed Pension Plan during the period of missed contributions.
H.
Method of payment. Any pensioner under this § 38-18.1 shall have the right to choose whether he or she wants to receive payment by check, mailed to him or her, or direct deposit. If direct deposit is elected by the pensioner, the pensioner is required to provide information about his or her bank account on a form provided by the Pension Plan Administrator. Any change to a direct deposit instruction must be provided to the Pension Plan Administrator at least 15 business days in advance of the effective date of such change on a form provided by the Pension Plan Administrator.
I.
Conflicts with statutory provisions. In all matters that are regulated
by the laws of the Commonwealth of Pennsylvania or by regulations
of departments or agencies of the commonwealth promulgated by authority
of law, such laws or regulations shall control.
J.
Continuation of existing regulations. The provisions of this § 38-18.1, as far as they are the same as those of ordinances and/or codes in force immediately prior to the enactment of this section, are intended as a continuation of such ordinances and codes and not as new enactments. The provisions of this § 38-18.1 shall not affect any act done or liability incurred, nor shall they affect any suit or prosecution pending or to be instituted to enforce any right or penalty or to punish any offense under the authority of any of the repealed ordinances.
K.
Any portion of section found to be unconstitutional, illegal or unenforceable
is severed. If any portion of this section shall be determined to
be unconstitutional, illegal or unenforceable, then the portion and
only that portion of this section which is deemed to be unconstitutional,
illegal or unenforceable shall be severed from the remainder of this
section, and all other terms thereof shall remain in full force and
effect.
L.
Effective date of section. This section shall be effective 30 days
after publication following final adoption in accordance with the
City Home Rule Charter and the Third-Class City Code.
M.
Savings clause. Notwithstanding anything to the contrary contained
in this section, the provisions of this section shall be construed
in accordance with 53 P.S. §§ 39340 — 39353 and
those provisions of the Internal Revenue Code of 1986, as amended,
and the Treasury regulations and other Internal Revenue Service and
Treasury Department guidance promulgated thereunder that relate to
tax-qualified governmental pension plans, including, but not limited
to, the provisions of Sections 401(a)(2), 401(a)(9), 401(a)(31), 401(a)(37),
402(c)(11), 414(u) and 415(b) of the Internal Revenue Code of 1986,
as amended.