(A) Repeal of service-connected death benefit and survivor benefit.
(1) Currently § 4.2(a) of the Cressona Borough Police Pension Plan provides:
(a) Service-connected death benefit. If an active participant dies while performing police services for the employer, the participant’s surviving spouse (if any) shall receive a benefit equal to 50% of the average monthly compensation of the active participant on the date of death.
Payment shall be in the form of a pension (without actuarial adjustment with respect to the age of the beneficiary) and shall commence as of the first day of the month following the date of death. Payment to the surviving spouse shall cease upon the death or remarriage of the surviving spouse.
If there is no surviving spouse or if the surviving spouse dies or remarries (thereby ceasing to be the widow or widower of the participant), then the benefit shall be payable to any child (or children) of the participant who is under the age of 18. In the case of multiple eligible children, the benefit payable shall be divided equally among the children. Payment shall cease upon the earlier of death or the attainment of age 18. Child shall include adopted child of the participant.
The participant’s spouse cannot waive receipt of this benefit. In the case of an unmarried participant who has no children under the age of 18, no death benefit shall be payable under this § 4.2, but a death benefit may be payable under § 4.1. The death benefit payable shall not be less than the benefit payable under § 4.1. In the event that there is no spouse or child eligible to receive the death benefit payable under this § 4.2, the death benefit provided under § 4.1 shall be paid as described therein. The distribution shall comply with the Distribution Requirements of § 7.2(d)(2).
If there is an acceptable domestic relations order in force with respect to the participant, the alternate payee shall receive a portion of the death benefit otherwise payable with respect to any actual surviving spouse or eligible child to the extent provided in the order, but only if the alternate payee has not died. However, no order shall be accepted if it provides that the alternate payee shall be the surviving spouse creating a right to a death benefit under this § 4.2 as the death benefit payable hereunder is only payable with respect to a widow or widower or an eligible child.
The above section is repealed in its entirety and is replaced with the following provision:
4.2 Service-Connected Death Benefit and Survivor Benefit.
(a) Service-connected death benefit. Effective with respect to death occurring on or after October 9, 2009, the service-connected death benefit shall no longer be payable under or pursuant to the terms of this plan or by the employer.
(2) Authority to execute plan amendment. The authorized agent of the borough (employer) is hereby directed to execute the attached amendment to the Plan.
(3) Effective date. The amendment to the Cressona Borough Police Pension Plan is hereby made effective as of October 9, 2009.
(4) Remaining plan provisions. All of the other provisions of the Cressona Borough Police Pension Plan are hereby ratified and restated.
(B) 2011 Heart Compliance Amendment.
(1) Authority to execute plan amendment. Sandra Brennan, as agent of the employer, is authorized and directed by the Council of the Borough to execute the attached amendment of the plan.
(2) Effective date. The amendment to the Cressona Borough Police Pension Plan is hereby made effective as of November 12, 2011.
(3) Remaining plan provisions. All of the other provisions of the Cressona Borough Police Pension Plan are hereby ratified and restated.
(Prior Code, Ch. 1, § 1-604) (Ord. 1-2010, passed 1-4-2010, §§ 1—4; Ord. 2-2011, passed 11-7-2011)
Editor’s note:
The amendment to the Police Pension Plan is on file at the Borough Hall.
See Exhibit 1-604.2, “2011 Heart Compliance Amendment to the Cressona Borough Police Pension Plan,” following.
EXHIBIT 1-604.2
2011 HEART COMPLIANCE AMENDMENT
TO THE
CRESSONA BOROUGH POLICE PENSION PLAN
As authorized by Section 9.2 of the Cressona Borough Police Pension Plan (“Plan”) as amended and restated effective January 1, 2008, the employer, Cressona Borough, hereby amends the Plan to comply with the law and regulatory changes effective as of or prior to the 2011 plan year and now required to be incorporated into the Plan. This amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this amendment. The employer hereby amends the Plan in the following manner:
FIRST: USERRA Break In Service
Section 1.10 is amended to comply with the Heroes Earning Assistance and Relief Tax Act of 2008 (HEART) with respect to deaths occuring on or after January 1,2007. As amended, Section 1.10(e) shall contain a final paragraph that shall read as follows:
Effective with respect to deaths occuring on or after January 1, 2007, in the case of a participant who dies while performing qualified military service, the beneficiary(ies) of the participant shall be entitled to any benefits payable under Sections 4.1 and 4.2 (b) and (c) that would have been payable had the participant resumed and then teminated employment on account of death. Years of vesting service shall be credited under this provision for purposes of determining the amount of any death benefit payable.
SECOND: IRC Section 402(f) Notice Period
Effective for notices issued on or after January 1, 2007, Section 6.2(d)(2) is amended to comply with the Pension Protection Act of 2006 by reflecting that a participant’s written notice of his or her eligible rollover distribution rights as required under IRC section 402(f) may be given as much as 180 days before the annuity starting date. As amended, the first paragraph of Section 6.2(d)(2) shall read as follows:
Effective for distributions made on or after January 1, 1993, for any distribution in excess of $200 that may be paid in the form of a lump sum, the plan administrator shall give the participant written notice of his or her eligible rollover distribution rights as required under IRC Section 402(f) no less than 30 days and no more than 180 days (90 days for notices issued before January 1, 2007) before the annuity starting date with respect to the distribution. Effective for distributions made on or after January 1,1994, such distribution may commence less than 30 days after the notice is given, provided that:
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THIRD: Definitions (IRC Section 415 Limitations) - Compensation
Effective for limitation years beginning on or after July 1, 2007, Section 7.1(e)(3) is amended to comply with the final regulations issued under IRC section 415 with respect to the treatment of severance compensation following a termination of employment. Effective for limitation years beginning on or after January 1, 2009, Section 7.1(e)(3) is amended to comply with IRC section 414(u)(12) as added by the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART) regarding differential wage payments. As amended, Section 7.1(e)(3) shall contain the following additional paragraphs that shall read as follows:
In order to be taken into account for a limitation year, compensation must be paid or treated as paid prior to severance from employment with the employer. Effective for limitation years beginning on or after July 1,2007, an includable payment shall be treated as paid prior to severance from employment if it is paid by the later of 234 months after severance or the last day of the calendar year that includes the severance date. For this purpose, includable payments are those that absent the severance would have been paid and are regular compensation for services during regular working hours or outside working hours (such as overtime or shift differentials), commissions, bonuses, or other similar compensation. Includable payments shall also include accrued sick, vacation, or other leave if such payments would have been included in compensation as defined in Section 1.3 if they were paid prior to the employee’s severance from employment.
For limitation years beginning after December 31, 2008, compensation for a limitation year shall include amounts paid as differential wages to a participant on qualified military service leave of more than 30 days and otherwise meeting the requirements of IRC section 3401(h)(2).
FOURTH: Effective Date of Amendment
These amendments are effective as provided herein.
FIFTH: All other provisions of the Plan remain in full force and effect.
Executed this day of 7th day of November, 2011 by the duly authorized agent of Cressona Borough.
Sandra Brennan
Title: Agent