In order for employee benefit plans to comply with Section 89 of the Internal Revenue Code, the following steps shall be taken:
(a) Ensure that each plan is in writing prior to the end of the plan year beginning on or after January 1, 1989.
(b) Ensure that employees' rights under each plan are legally enforceable.
(c) Provide employees with reasonable notification of their benefits under each plan.
(d) Maintain each plan for the exclusive benefit of employees and their dependents.
(e) Maintain each plan indefinitely, unless the Borough is forced to terminate the plan(s) for a bona fide business reason in such a case, the Borough is required to pay all claims incurred under each plan.
(f) Test the benefit plan(s) for discrimination and report any appropriate excess values to the Internal Revenue Service.
(Res. 1989-3. Passed 1-16-89.)