(a) As used herein, the masculine gender shall include the feminine gender, and the singular shall include the plural, in all cases where such meaning would be appropriate. Headings of sections and subsections are inserted only for convenience of reference and are not to be considered in the construction of the Plan.
(b) The following words and phrases, as used herein, shall have the meanings set forth in this subsection, unless a different meaning is plainly required by the context:
(1) "Accrued benefit" means, as of any given computation date, a participant's monthly normal retirement benefit determined in accordance with Section 292.04(a), which amount shall be based upon the participant's final monthly average compensation and credited service determined as of such computation date and which shall represent the monthly benefit which would be payable in the normal form as of the participant's attainment of normal retirement age, provided that the participant shall satisfy all requirements pursuant to the terms of the Plan for entitlement to receive such benefit.
In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under Section 292.04(j). All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the Plan prior to the actual payment thereof.
(2) "Accumulated contributions" means the total amount contributed by a participant to this Plan or its predecessor by way of payroll deduction or otherwise, plus simple interest credited at the rate of three and one-half percent per annum, from the midpoint of the Plan year when paid into the Pension Fund until the first day of the month in which a distribution of accumulated contributions occurs or the payment of retirement benefits commences.
(3) "Act" means the Municipal Pension Plan Funding Standard and Recovery Act, which was enacted as Act 205 of 1984, as amended, 53 P.S. 895.101 et seq.
(4) "Actuarial equivalent" means two forms of payment of equal actuarial present value on a specified date. The actuarial present value shall be determined by use of the 1984 Group Annuity Mortality Table and seven percent interest, unless otherwise expressly provided herein.
(5) "Actuary" means the person, partnership, association or corporation which, at any given time, is serving as actuary, provided that such actuary must be an "approved actuary," as defined in the Act.
(6) "Anniversary date" means January 1 of a given Plan year.
(7) "Authorized leave of absence" means any leave of absence granted in writing by the employer for reasons, including, but not limited to, accident, sickness, pregnancy or temporary disability, education, training, jury duty or such other reasons as may necessitate authorized leave from active employment. "Authorized leave of absence" shall also include a period of time for active service with the Armed Forces of the United States of America, provided that such service shall commence after the participant has completed at least six months of credited service and the participant returns to employment within the applicable time prescribed by law following separation from such military service.
(8) "Beneficiary" means the person or persons validly designated in writing by a participant to receive such benefits as may be due hereunder upon the participant's death. A designation shall become effective only upon the participant's death and shall be valid only if delivered prior to such participant's death to the Plan Administrator in such form as the Plan Administrator shall specify. If there is no validly designated beneficiary that survives the participant or that is legally able to take the benefits provided as beneficiary, then the beneficiary shall be the surviving spouse, or, if there is no surviving spouse, the issue, per stirpes, or, if there is no surviving issue, the estate of the participant. If no personal representative has been appointed, the beneficiary shall be those persons who would be entitled to the estate under the intestacy laws of the Commonwealth if the participant had died intestate and a resident of the Commonwealth.
(9) "Chief Administrative Officer" means the person, designated by the Municipality, who has the primary responsibility for the execution of the administrative affairs for the Plan.
(10) "Code" means the Internal Revenue Code of 1986, as amended.
(11) "Commonwealth" means the Commonwealth of Pennsylvania.
(12) "Compensation" means the total salary or wages paid to an employee by the employer for active services rendered in employment and shall exclude extra or additional forms of remuneration, including, but not necessarily limited to, amounts paid as allowance or reimbursement for expenses or payments made to an employee welfare or benefit plan on behalf of the employee. Compensation shall be limited on an annual basis, for the purposes of this Plan, to the amount specified in accordance with Code Section 401(a)(17), as adjusted under Code Section 415(d).
(13) "Council" means the Council of the Borough.
(14) "Credited service" means a participant's total years of service accumulated as an employee in employment. "Credited service" shall include each period of active employment and each period of time during which an employee is on an authorized leave of absence. "Credited service" shall not include any period of time during which an employee failed or refused to make required employee contributions pursuant to Section 292.03(a).
A. The Plan shall provide, to participants retiring on/after January 1, 2003, full service credit for each year of military service or fraction thereof, not to exceed five years, to any member of the Plan who was not employed by the political subdivision prior to such military service. The amount due for the purchase of credit for military service other than intervening military service shall be computed by applying five per centum (5%), to the member's average annual rate of compensation over the first three years of municipal service and multiplying the result by the number of years and fractional part of a year of creditable nonintervening military service being purchased together with interest at the rate of four and three-quarters per centum (4.75%) compounded annually from the date of payment.
B. The Plan shall provide, to participants retiring on/after October 1, 2019, the option to purchase full service credit for the period(s) when a participant is on an authorized leave of absence. The amount due for the purchase of such time shall be computed by using the participant's base hourly rate, and an 8 hour day (40 hour work week). The result will then be divided by the rate of employee contributions times the number of days/weeks the participant was on such authorized leave of absence.
(Ord. 2138. Passed 3-15-93; Ord. 2318. Passed 2-17-03; Ord. 2565. Passed 9-17-19.)
(15) "Early retirement age" means the date a participant completes at least twenty years of credited service.
(Ord. 2224. Passed 12-29-97.)
(16) "Employee" means any individual employed by the employer as a regular, full-time employee who is entitled to receive a regular stated salary or wage, excluding any pension, retainer or fee under contract. Any police officer, fire-fighter or individual covered under another retirement plan or program sponsored by the employer shall be excluded as an employee under this Plan.
(17) "Employer" means the Borough.
(18) "Employment" means any period of time in which an employee renders services for the employer for which the employee is entitled to receive compensation. "Employment" shall exclude any period of time in which services are performed as an independent contractor paid on a contractual or fee basis.
(Ord. 2138. Passed 3-15-93.)
(19) "Final monthly average compensation" means for participants retiring after December 29, 2001,the average monthly compensation earned by the participant during the highest 36-month period of employment. Only full months of active service shall be included in the averaging period. Payments made to the participant which are directly attributable to active employment during the averaging period (i.e., payment of unused/earned vacation, longevity, and unused personal days), shall be included for the purpose of determining the participant’s final monthly average compensation.
(Ord. 2253. Passed 9-2-99; Ord. 2290. Passed 12-29-01; Ord. 2321. Passed 3-17-03; Ord. 2356. Passed 9-20-04; Ord. 2538. Passed 8-21-17.)
(20) "Minimum Municipal obligation" means the minimum obligation of the Municipality as determined by the actuary pursuant to the provisions of the Act.
(21) "Non-union member" means an employee whose terms and conditions of employment are not subject to the provisions of a collective bargaining agreement.
(22) "Normal form" means the usual and customary form of payment of a normal retirement benefit, as further described in Section 292.05(a).
(Ord. 2138. Passed 3-15-93.)
(23) "Normal retirement age" means, for any employee hired after December 29, 1997, age sixty-five or completion of twenty years of credited service. For any employee hired prior to December 29, 1997, "normal retirement age" shall mean either age sixty-five or the completion of twenty years, or, in the case of a non-Union employee, the date a participant obtains sixty years of age and completes at least fifteen years of credited service. In the case of a Union employee, the date a participant obtains sixty-five years of age or completes at least twenty years of credited service shall be deemed to be "normal retirement age." Those employees employed prior to December 29, 1997, shall have the option of these definitions for normal retirement age. In the case of a Union employee, during the period January 31, 2009 through March 31, 2009 the date a participant obtains either sixty-five years of age or completes at least seventeen years of credited service shall be deemed to be "normal retirement age". (Ord. 2246. Passed 11-16-98; Ord. 2438. Passed 2-16-09.)
(24) "Notice" or "election" means a written document prepared in the form specified by the Plan Administrator and delivered as follows: if such notice or election is to be provided by the employer or the Plan Administrator, it shall be mailed in a properly addressed envelope, postage prepaid, to the last known address of the person entitled thereto, on or before the last day of the specified notice or election period, or, if such notice or election is to be provided to the employer or the Plan Administrator, it must be received by the recipient on or before the last day of the specified notice or election period.
(25) "Participant" means any employee who has commenced participation in the Plan in accordance with Section 292.02 and who has not, for any reason, ceased to participate hereunder.
(26) "Pension Fund" means the assets of the Plan, which shall be accounted for separately from the assets of any other plans maintained by the employer, whether actually held separately or commingled with the assets of another plan, and which shall be administered under the supervision of the employer in accordance with the terms of the Plan and applicable law.
(27) "Pension Plan Committee" or "Committee" means the Committee appointed by Council, pursuant to the provisions of Section 292.08(b), which shall be responsible for the administration of the Plan.
(28) "Plan" means the Borough of Ellwood City Municipal Employees' Pension Plan, as set forth in this chapter and as may be amended from time to time hereafter.
(29) "Plan Administrator" means the person or persons appointed by Council for the purpose of supervising and administering the Plan. If no person is so appointed, the Plan Administrator shall be Council.
(30) "Plan year" means the consecutive twelve-month period beginning on January 1 and ending on December 31 of each year.
(31) "Restatement date" means January 1, 1993, the effective date of the Plan, as hereby amended and restated.
(32) "Total and permanent disability" means a condition of physical or mental impairment which renders a participant unable to perform a duty of gainful employment for which the participant is suited by training, education or experience, which is expected to last until the death of the participant and which occurs after the participant has attained age fifty and completed at least fifteen years of credited service. Total and permanent disability shall be determined by the Plan Administrator, based upon such evidence as the Plan Administrator shall deem appropriate in his or her or its sole discretion.
(33) "Union member" means an employee whose terms and conditions of employment are governed by the provisions of a collective bargaining agreement.
(34) "Year of service" means each completed twelve-month period of employment as calculated from the employee's anniversary date and pro-rated for each completed full month from anniversary date of service thereafter. (Ord. 2138. Passed 3-15-93; Ord. 2296. Passed 3-18-02.)