Part I-1 (1.02)
ACCUMULATED CONTRIBUTIONS
The interest rate to be credited on a Participant's contributions to the Plan in accordance with section 1.02 of Chapter II of the Master Plan and Trust shall be:
(A) _____ percent per annum. Such interest shall be credited annually in the form of
_____ simple interest
_____ compound interest
(B) __x__ Actual interest rate earned under the Trust
(Check one of the above)
Part I-2 (1.03)
ACTUARIAL EQUIVALENT shall be defined in section 1.03 of Chapter II of the Master Plan and Trust unless alternate factors are indicated below:
Mortality Table: UP-1984
Interest Rate: 7.0 percent
Part I-3 (1.04)
AGGREGATE SERVICE shall be rounded:
_____ to the completed year _____ actual service (completed day)
__x__ to the completed month _____ other: _________________
_____ to the nearest month
Part I-4 (1.05)
BOARD shall mean the:
__x__ Borough Council
_____ Board of Supervisors
_____ Board of Commissioners
_____ Board of Directors
_____ Other: _______________
Part I-5 (1.06)
COMPENSATION shall include: (Check all that apply.)
__x__ All forms of compensation paid by the Employer and reportable on form W-2
_____ Base pay plus:
_____ Overtime pay
_____ Longevity pay
_____ Bonuses
_____ Holiday pay
_____ Court time pay
_____ Unused sick pay
_____ Unused vacation pay
_____ Unused personal leave
_____ Other: _______________
Compensation shall specifically exclude:
__x__ All payments made in a Lump sum at retirement or termination for unused time off
_____ Payments made in a Lump sum at retirement or termination for unused time off that were not earned during the averaging period
_____ Other: _______________
Part I-6 (1.10)
EFFECTIVE DATE shall mean: March 15, 2015
_____ the original effective date of the Plan
__x__ the effective date of this Plan amendment which will be the date of passage of a new amending ordinance and the date of signing of this revised joinder agreement.
Part I-7 (1.11)
EMPLOYEE
For the purposes of further defining the term "full-time" or "Employee", the following additional conditions or restrictions shall be inserted as if they were a part of section 1.11 of Chapter II of the Master Plan and Trust:
__x__ Full-time basis means regularly scheduled to work at least 40 hours per week
_____ Other: _______________
Part I-8 (1.12)
EMPLOYER
In accordance with section 1.12 of Chapter II of the Master Plan and Trust, the "Employer" shall be specified as follows:
Borough of Cleona
Located in Lebanon County.
_____ Regional Police Plan with the following participating municipalities: N/A
Part I-9 (1.13) Non-Intervening Military Service Purchase
EMPLOYMENT (Optional)
In accordance with section 1.13 of Chapter II of the Master Plan and Trust, Employment for purposes of determining Aggregate Service:
_____ shall include the purchase of up to _____ (not to exceed 5) years of non-intervening military service pursuant to section 1.13(f) of Chapter II of the Master Plan and Trust.
__x__ shall not include the purchase of non-intervening military service pursuant to section 1.13(f) of Chapter II of the Master Plan and Trust.
Part I-10 (1.14)
FINAL MONTHLY AVERAGE SALARY
The averaging period for determining a Participant's "Final Monthly Average Salary" in accordance with section 1.14 of Chapter II of the Master Plan and Trust shall be:
__x__ final 60 months prior to termination (shall not be less than 36, nor greater than 60) of Employment
_____ highest 36 consecutive months of the last 60 consecutive months
_____ final _____ months (shall not be less than 36, nor greater than 60) of active Employment
Salary shall include the same element of pay as Compensation (1.06).
Part I-11 (1.20)
NAME OF PLAN
For purposes of section 1.20 of Chapter II of the Master Plan and Trust, the name of the "Plan" shall be:
Borough of Cleona Police Pension Plan
Part I-12 (1.24)
TOTAL AND PERMANENT DISABILITY (Service Connected Only)
(A) "Totally and Permanently Disabled" or "Total and Permanent Disability" shall mean:
__x__ a condition of physical or mental impairment due to which a Participant is unable to perform the usual and customary duties of Employment with the Employer and which is reasonably expected to continue to be permanent for the remainder of the Participant's lifetime.
_____ a condition of physical or mental impairment due to which a Participant is unable to perform any and every duty of a gainful occupation for which the Participant is reasonably suited through training, education and experience, which continues for a period of at least six months, which will be permanent and continuous for the remainder of the Participant's lifetime and due to which a Participant is certified by the Social Security Administration as being eligible for Social Security disability benefits.
(B) _____ Other:
(Check one of the above, if applicable)
PART II PARTICIPATION IN THE PLAN
Part II-1 (2.01)
ELIGIBILITY REQUIREMENTS
An Employee shall be eligible to become a Participant in the Plan upon:
__x__ Commencement of Employment
_____ Completion of a probationary period of
_____ Other:
Exceptions:
(Complete any of the above which are applicable)
PART III CONTRIBUTIONS
Part III-1 (3.01)
PARTICIPANT CONTRIBUTIONS
The rate of Participant contributions shall be:
(A) __x__ Where positions covered by the Plan are included under the Federal Social Security Act:
__x__ Five percent (5%) of the Participant's Compensation (for Plans with no Social Security Offset), or
_____ _____ percent of the Participant's Compensation on which Social Security taxes are payable, plus five percent (5%) of the Participant's Compensation in excess of that on which Social Security taxes are payable; or
(B) _____ Where positions covered by the Plan are not included under the Federal Social Security Act:
_____ _____ percent of the Participant's Compensation (rate shall not be less than five percent (5%) nor greater than eight percent (8%)).
(C) _____ Effective __________ the Participant Contributions required under this section 3.01 shall be "picked up" by the Employer and shall be treated as Employer contributions pursuant to Code section 414(h)(2).
Part III-2 (3.03)
REDUCTION OF PARTICIPANT CONTRIBUTIONS
Annual reduction or elimination of Participant contributions pursuant to section 3.03 of Chapter II of the Master Plan and Trust shall be subject to the following prerequisites or limitations:
_____ an actuarial study performed by the Actuary shows that the condition of the Trust Fund is such that Participant Contributions may be reduced below the minimum percentages prescribed in section 3.01 of Chapter II of the Master Plan and Trust, or may be eliminated, and that contributions by the Employer will not be required to keep the Trust Fund actuarially sound.
_____ Other:
(Check one or more of the above, if applicable)
PART IV RETIREMENT BENEFITS
The Master Plan and Trust shall provide the following benefits:
Part IV-1 (4.01)
NORMAL RETIREMENT AGE
Section 4.01 of Chapter II of the Master Plan and Trust, Normal Retirement Age shall be the later of the date set forth in (A) or (B):
(A) the date when the Participant has completed 25 years of Aggregate Service; and
(B) the Participant has attained age 55.
Part IV-2 (4.02)
NORMAL RETIREMENT BENEFIT
Normal Retirement Benefits shall be offset, as provided in section 4.02 of Chapter II of the Master Plan and Trust, by the following percentage of applicable old-age Social Security benefits:
_____ _________ percent (_____%)
__x__ No Social Security offset applies.
(Check one of the above.)
Part IV-3 (4.03)
EARLY RETIREMENT (Optional)
(A) This Plan:
__x__ shall
_____ shall not
include an Early Retirement Benefit provision pursuant to Act 24 of 1998 which shall only be effective from March 15, 2015 through August 31, 2015. To be eligible for an Early Retirement Benefit, a participant must have a minimum of twenty (20) years of Aggregate Service and apply for retirement during the "window" period with an effective date of retirement of no later than August 31, 2015. After such date, Early Retirement shall no longer be available.
Part IV-4 (4.06)
SERVICE INCREMENT BENEFIT (Optional)
(A) This Plan:
_____ shall
__x__ shall not
provide for a Service Increment Benefit as set forth in section 4.06 of Chapter II of the Master Plan and Trust.
(B) The amount of the monthly Service Increment Benefit shall be:
_____ (i) $ _____ per month upon completion of service in excess of 25 years of service (not to exceed $500 per month); or
_____ (ii)
Years of Aggregate Service | Amount of Service Increment Benefit |
__________ | __________ |
__________ | __________ |
__________ | __________ |
__________ | __________ |
__________ | __________ |
__________ | __________ |
_____ (iii) Other:
(C) _____ Only service by a Participant retiring on or after __________ shall be considered for such Service Increment Benefit.
Part IV-5 (4.07)
COST-OF-LIVING INCREASE (Optional)
(A) This Plan:
_____ shall
__x__ shall not
provide for an annual cost-of-living increase as set forth in section 4.07 of Chapter II of the Master Plan and Trust.
(B) The annual cost of living adjustment shall be payable as of the:
_____ Anniversary date of such Participant's retirement
_____ January 1st of each Plan Year
_____ Other:
(C) If an annual cost-of-living increase is elected, such increase shall be equal to
CPI index to be used in calculating increases is __________ .
(D) The following special restrictions shall apply to the cost-of- living increase:
_____ It shall apply only to Participants hired on or after _________ (date).
_____ It shall apply only to Participants who retired on or after __________ (date).
_____ It shall apply only to Participants in pay status as of __________ (date).
_____ It shall apply to all current and future retirees.
_____ It shall apply to all disability retirees who have attained Normal Retirement Age.
_____ Other:
(E) Such cost-of-living increases shall not exceed any of the following limitations:
(a) the percentage increase in the Consumer Price Index from the year in which the Participant was last employed by the Employer; or
(b) 75 percent of the Participant's Final Monthly Average Salary; or
(c) the total cumulative increases shall not exceed 30 percent of the Participant's original retirement benefits; and
(d) such cost-of-living adjustments shall not impair the actuarial soundness of the Plan.
(F) _____ The limitations described in (E) above, do not apply to retirees retired for over twenty (20) years, so long as the plan assets exceed the present value of future benefits.
Part IV-6 (4.08)
PAYMENT OF BENEFITS
Benefit payments shall be paid monthly as of:
_____ The first day of each month
__x__ The last day of each month
_____ Other:
PART V DISABILITY RETIREMENT
Part V-l (5.02)
DISABILITY RETIREMENT BENEFITS
(A) Amount of Disability Benefit
The amount of the Disability Retirement Benefit shall be equal to:
_____ (1) 50% of the member's salary at the time the disability was incurred (no less than 50%)
_____ (2) 50% of Final Monthly Average Salary
__x__ the greater of (1) or (2)
_____ Other:
In no event may the benefit be less than fifty percent (50%) of the Member's salary at the time the disability was incurred.
(B) Such Disability Retirement Benefit amount shall be offset by:
__x__ Social Security disability benefits
(Check one of the above, if applicable)
Member's salary at the time the disability was incurred shall mean:
_____ Fixed periodic payments for the:
_____ final completed calendar month of active employment
_____ final completed twelve months of active employment divided by 12
__x__ Other: The officer's annualized base salary at the time of disablement, divided by 12.
This definition is subject to future interpretation by the state courts or state legislature, at which time this definition shall comply with the court or legislative interpretation.
(C) Crediting of Service Upon Re-Employment
If a Participant who has been receiving disability benefits is later re-employed by the Employer, Aggregate Service shall be determined as follows:
_____ the period of disability for which payments were made shall be considered as periods of Employment in computing the Participant's Aggregate Service;
__x__ the Participant's period of Aggregate Service prior to the date when the Participant terminated due to Total and Permanent Disability shall be aggregated with the Participant's period of Aggregate Service credited subsequent to the Participant's date of re-employment.
_____ Other:
(Check one of the above, if applicable)
PART VI DEATH BENEFITS
Part VI-1 (6.02)
KILLED IN SERVICE SURVIVOR BENEFIT
_____ 100% of the Member's salary at the time of death.
Member's salary at the time of death shall mean:
_____ Fixed periodic payments for the:
_____ final completed calendar month of active employment
_____ final completed twelve months of active employment
_____ Other: The officer's annualized base salary at the time of death, divided by 12.
This definition is subject to future interpretation by the state courts or state legislature, at which time this definition shall comply with the court or legislative interpretation.
Part VI-2 (6.03)
SURVIVING SPOUSE BENEFIT shall equal:
__x__ 50% of the monthly retirement benefit the Participant was receiving or was eligible to receive at the time of death.
_____ _____% of the monthly retirement benefit the Participant was receiving or was eligible to receive at the time of death (no less than 50%)
_____ Other:
(Check all that applies)
PART VII TERMINATION OF EMPLOYMENT
Part VII-1 (7.03)
DEFERRED VESTED BENEFITS
This Plan:
__x__ shall
_____ shall not
provide for vesting of retirement benefits after twelve (12) years of Aggregate Service with the Employer.
(Ord. 253, 2/3/1997, Joinder Agreement, §I; as amended by Ord. 307, 3/2/2015)