[Adopted 9-23-1987 by Ord. No. 2907 (Art.
150 of the 1965 Codified Ordinances)]
A.
There is established an aggregated pension trust fund
consisting of all City-administered uniformed and nonuniformed pension
fund assets, but shall specifically exclude any funds administered
by the Pennsylvania Municipal Retirement Board, in the manner and
under the conditions and subject to the provisions of the Municipal
Pension Plan Funding Standard and Recovery Act, Act 1984-205, and
subject to future amendment; such pension trust fund to be subject
to all the definitions as set forth in the aforesaid Act of Assembly.
B.
Transfer of funds. All pension fund assets now in the custody of the Employees' Retirement and Pension System as set forth in Article III, the Police Pension Association as set forth in Articles I and II, and the Firemen's Pension Fund as set forth in Article V, but specifically excluding any funds administered by the Pennsylvania Municipal Retirement Board, shall, on January 1, 1988, be transferred to the Aggregated Pension Trust Fund hereby created, together with all financial records pertaining thereto.
[Amended 2-24-1988 by Ord. No. 2936; 8-23-1995 by Ord. No.
3381; 1-26-2000 by Ord. No. 3760]
The Board of Trustees shall be composed of the
following:
A.
Mayor, or his designee;
B.
Director of Finance, or his designee;
[Amended 2-11-2009 by Ord. No. 5156]
C.
Chief of Police, or his designee from the Police Department;
D.
Chief of Fire, or his designee from the Fire Department;
E.
Chairperson of the Administration and Finance Committee
of Council, or his designee from City Council;
F.
Chairperson of the Public Safety Committee of Council,
or his designee from City Council;
G.
One member each, elected from the active membership
of each pension plan included in the Aggregated Pension Trust Fund,
or an alternate, also to be elected from the active membership; and
H.
City Controller.
[Amended 2-24-1988 by Ord. No. 2936]
A.
The Mayor shall serve as President of the Board of
Trustees.
B.
At the first meeting annually of the full Board of
Trustees, the Board shall elect a Vice President from among its members.
The Director of Finance shall serve as the Secretary/Treasurer of
the Board of Trustees.
[Amended 2-11-2009 by Ord. No. 5156]
An active member from each of the pension plans
included in the Aggregated Pension Trust Fund shall be qualified and
elected for terms as follows:
A.
Qualifications. The employee member shall be actively
contributing to the applicable pension fund.
B.
Terms.
(1)
The employee member on the Board of Trustees shall
serve a three-year term beginning on the first Monday of February,
except for the first term of this article. The first terms of the
employee members shall be as follows:
(a)
Member representing Fire Pension Fund membership,
date of election to first Monday of February 1989;
(b)
Member representing Police Relief and Pension
Association membership, date of election to first Monday of February
1990; and
(c)
Member representing Employees' Retirement and
Pension System membership, date of election to first Monday of February
1991.
(2)
Board memberships shall be held until the successors
are elected and enter upon their duties.
C.
Elections. The full active membership of each of the
pension plans included in the aggregation shall conduct an election
for each vacancy during the January immediately preceding the expiration
of any term. On the second Monday of January the membership shall
conduct a meeting at a time and place specified by the Board of Trustees
for the purposes of receiving nominations for the employee memberships
on the Board. At such meeting the Board shall determine and announce
the date and hours for receiving of election ballots. The Board shall
promptly, upon conclusion of the nomination meeting, post notices
in conspicuous places in City Hall stating the date and hours fixed
for the election and the names of all employees placed in nomination
at such meeting. The Chairman or Acting Chairman of the Board shall
appoint and assign judges for the election. The nominee receiving
the highest number of votes shall be elected as the Board member.
D.
Election of initial Board members. Within 14 days following the effective date of this article, the active membership of each of the pension plans included in the aggregation shall conduct a meeting at a time and place specified by the present governing bodies of such pension plans for the purpose of receiving nominations for employee memberships on the Board. At such meeting, the interim Board of Trustees, those members designated in § 110-39, shall determine and announce the date and hours for receiving election ballots. Thereafter, an election in accordance with the procedures set forth in Subsection C hereof.
E.
Vacancy. Any employee membership on the Board which
becomes vacant for any reason shall be filled for the unexpired term
by an election to be conducted promptly by the Board consistent with
the provisions for regular elections herein stated.
Legal title to assets in the Aggregated Pension
Trust Fund shall be in the Board of Trustees, subject to the rights
of any person having a beneficial interest in a particular pension
plan which is associated with the pension trust fund.
A.
The standard of prudence to be applied by the Board
of Trustees in the investment of the aggregated pension funds shall
be the "prudent investor rule," which states, "Investments shall be
made with judgment and care, under circumstances then prevailing,
which persons of prudence, discretion and intelligence exercise in
the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well
as the probable income to be derived." The prudent investor rule shall
be applied in the context of managing the overall portfolio. The Board
acting in accordance with written procedures and exercising due diligence
shall be relieved of personal responsibility for an individual security's
credit risk or market price changes, provided deviation from expectations
are reported in a timely fashion and appropriate action is taken to
control adverse developments.
B.
The assets of the Aggregated Pension Trust Fund shall
be invested in investment securities and/or other instruments which
are authorized investments pursuant to any applicable law for any
of the associated pension plans.
C.
The Board shall routinely monitor the contents of
the portfolio, the available markets and the relative values of competing
instruments, and shall adjust the portfolio accordingly.
D.
Investments shall be diversified to preclude large
losses from a single position.
E.
The Board may employ a professional money manager
or portfolio manager or other consultants or professionals as deemed
necessary to aid in the investment and/or administration of pension
fund assets.
F.
Investment earnings shall be allocated to each associated
pension plan in proportion to the most recently determined participation
value.
A.
The Board of Trustees shall annually appoint an actuary
or firm of actuaries to complete such reports and provide such advice
as are necessary for the proper administration of the Aggregated Pension
Trust Fund.
B.
An actuarial valuation of assets shall be annually
prepared pursuant to the provisions of the Municipal Pension Plan
Funding Standard and Recovery Act, Act 1984-205,[1] and any applicable rules and regulation issued by the
Public Employee Retirement Study Commission.
[1]
Editor's Note: See 53 P.S. § 895-101
et seq.
C.
An actuarial valuation of the plan shall be prepared
pursuant to the provisions of the Municipal Pension Plan Funding and
Standard Recovery Act, Act 1984-205, and any applicable rules and
regulations issued by the Public Employee Retirement Study Commission.
D.
An annual audit shall be made by a certified public
accountant or firm of certified public accounts appointed by Council.
For accounting purposes, the audit shall include a calculation of
the value of participation by each plan.
E.
The accrual basis of accounting shall be used in conformance
with generally accepted accounting principles for the Aggregated Pension
Trust Fund.
F.
Value of participation by each plan to the Aggregated
Pension Trust Fund shall be calculated annually in accordance with
the requirement of the Municipal Pension Plan Funding Standard and
Recovery Act, Act 1984-205, Section 607(b)(1).
[Amended 7-22-1992 by Ord. No. 3219]
A.
The existing managing boards of the pension funds
aggregated hereunder, to wit, the Easton Officers' and Employees'
Retirement Board, the Police Pension Commission and the Board of Managers
of the Firemen's Pension Fund shall, following the effective date
of this article, continue to have the responsibility for determining
the eligibility for pension of any applicant under their respective
pension plan and for the certifying of such determinations of eligibility
to the Board of Trustees created hereunder; such Boards, however,
shall, after January 1, 1988, no longer have any authority, right
or responsibility for the investment, accounting, auditing or administration
of any of the funds aggregated hereunder.
B.
The Aggregated Pension Fund Board of Trustees shall
not permit any pension payment to any potential retiree without having
first secured from the appropriate pension board a certification as
to the retiree's eligibility for pension and calculation as to pensionable
amount. Such documentation shall be delivered to the Secretary of
the aggregated board, accompanied by minutes of the appropriate pension
board, as to that board's vote regarding each individual pension.
C.
The Aggregated Pension Fund Board of Trustees shall,
no later than March 1 of each year, present to Council:
(1)
A report on the performance of the investments and
of the investment manager(s) for the prior calendar year; and
(2)
A report summarizing by pension fund the name of each
new pensioner, the date on which retirement benefits began and the
date on which the appropriate board certified the pensioner's eligibility
for pension.
D.
The Aggregated Pension Fund Board of Trustees shall
submit to Council with the administration's annual submission of the
Budget a Board-approved operating budget for the forthcoming calendar
year.
