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(a) Normal Retirement. A participant who retires upon attainment of normal retirement age shall be entitled to receive a monthly retirement benefit, in an amount equal to 1.3 percent of the participant's final monthly average compensation multiplied by the participant's credited service paid in the normal form, commencing on the first day of the month coincident with or next following the date of retirement.
(Ord. 2224. Passed 12-29-97.)
(b) Early Retirement. A participant who terminates employment after attaining early retirement age, but prior to attainment of normal retirement age, shall be entitled to a monthly retirement benefit, commencing on the first day of any month prior to the date on which attainment of normal retirement age would occur if the participant continued in employment until such date, in an amount equal to the participant's accrued benefit at the date of termination of employment, paid in the normal form actuarially reduced for early commencement. Such actuarial reduction for early commencement shall be in an amount equal to one-half of one percent for each month that the payment commencement date precedes the date the participant would attain normal retirement age.
(c) Late Retirement. A participant who retires after the first day of the month coincident with or next following the date on which normal retirement age has been attained shall receive a retirement benefit pursuant to subsection (a) hereof in an amount equal to the amount calculated as of the date on which actual retirement occurs.
(d) Disability Retirement. A participant who has incurred a total and permanent disability, which causes such participant to cease active employment with the employer before the attainment of normal or early retirement age, shall be eligible to receive a disability retirement benefit under this Plan. The disability retirement benefit shall be in an amount equal to the participant's accrued benefit determined as of the date of disability. The disability retirement benefit shall be paid monthly until the earliest of the death of the participant or cessation of total and permanent disability.
The employer may require proof of continued disability, but not more frequently than once in any twelve-month period. Any participant who refuses to submit to a medical examination or furnish proof of continued disability upon the request of the employer shall cease to be eligible for receipt of a disability retirement benefit. A participant who does not resume employment upon cessation of total and permanent disability shall be deemed to have terminated employment as of the date the total and permanent disability commenced, and any benefits due pursuant to Section 292.06 shall be reduced by the value of the benefits received hereunder.
(e) Application for Benefit. A participant must complete and execute an application for benefit, on a form and in the manner prescribed by the Plan Administrator, and deliver the said application to the Plan Administrator at least thirty days prior to the date on which benefit payments are to commence. Notwithstanding anything contained herein to the contrary, no retirement benefit payments or any other benefit payments shall be due or payable on or before the first day of the month coincident with or next following the date that is thirty days after the date the Plan Administrator receives the application for benefit.
(f) Non-Duplication of Benefit. A participant who shall be receiving a monthly retirement benefit under this Plan, and who shall resume employment as an employee, shall have benefit payments suspended until the first day of the month coincident with or next following the date such employment shall cease. Such benefit payments shall be adjusted to reflect any additional years of credited service which may have accrued prior to the resumption of payment of benefits.
(g) Small Amounts. If the Plan Administrator determines that the value of a participant's accrued benefit is so small as to make monthly pension payments administratively impractical, the Plan Administrator may cause such payments to be made at such other periodic intervals as are administratively practical, but no less frequently than annually, or may make a single lump sum payment equal to the commuted value of such accrued benefit to the extent permitted under applicable law.
(h) Cessation of Benefit Payments. Any pension benefit payable hereunder shall be payable through and including the later of the month in which such participant's death occurs or the month in which any period certain payments due on or after the participant's death have been paid. Any survivor annuity payable on or after the participant's death, in accordance with the form of pension benefit elected, shall be paid through the month in which such surviving annuitant's death occurs.
(i) Special Provision for Restated Plans. The benefit amount of any participant who may have retired prior to the restatement date shall not be in any way altered by the provisions of this Plan, except where otherwise expressly indicated herein, and shall continue to be determined on the basis of the terms of the Plan in effect on the day preceding the restatement date.
(j) Maximum Benefit Limitations.
(1) Notwithstanding any provision of this Plan to the contrary, no benefit provided under this Plan attributable to contributions of the employer shall exceed, as an annual amount, the lesser of:
A. The amount specified in Code Section 415(b)(1)(A), as adjusted pursuant to Code Section 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits); or
B. One hundred percent of the participant's average compensation for the participant's high three years.
(2) The limitations described in paragraph (j)(1) hereof shall be governed by the following conditions and definitions:
A. "Compensation" shall include the participant's wages, salaries and fees for personal services actually rendered in employment, to the extent that the amounts are includable in gross income, and shall exclude contributions made by the employer to a plan of deferred compensation, to the extent that, before the application of Code Section 415 limitations to that plan, the contributions are not includable in the gross income of the employee for the taxable year in which contributed; exclude distributions from a qualified plan of deferred compensation; and exclude other amounts which receive special tax benefits, such as premiums for group term life insurance, to the extent not includable in the gross income of the employee, or contributions made by the employer (whether made under a salary reduction agreement or not) to the purchase of an annuity contract pursuant to Code Section 403(b).
B. Benefits paid or payable in a form other than a straight life annuity (with no ancillary benefits), or where the employee contributes to the Plan or makes rollover contributions, shall be adjusted on an actuarially equivalent basis to determine the limitation contained herein.
C. In the case of a benefit which commences prior to the attainment of age sixty-two by the participant, the limitation set forth in paragraph (j)(1)A. hereof shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to paragraph (j)(1)A. hereof commencing at age sixty-two. However, the reduction shall not reduce the limitation below seventy-five thousand dollars ($75,000) for a benefit commencing at or after age fifty-five, or, if the benefit commences prior to the attainment of age fifty-five, the amount which is actuarially equivalent to a benefit of seventy-five thousand dollars ($75,000) commencing at age fifty-five.
D. In the case of a benefit which commences after the attainment of age sixty-five by the participant, the limitation set forth in paragraph (j)(1)A. hereof shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to paragraph (j)(1)A. hereof commencing at age sixty-five.
E. Benefits paid to a participant which total less than ten thousand dollars ($10,000) from all defined benefit plans maintained by the employer, expressed as an annual benefit, shall be deemed not to exceed the limitation of this section, provided that the employer has not, at any time, maintained a defined contribution plan in which the participant has participated. However, in the case of a participant with fewer than ten years of participation, the limitation expressed in this paragraph shall be reduced by one-tenth for each year of participation less than ten, but in no event shall this limitation be less than one thousand dollars ($1,000).
F. The limitations expressed herein shall be based upon Plan years for calculation purposes, shall be applied to all defined benefit plans maintained by the employer as one defined benefit plan and to all defined contribution plans maintained by the employer as one defined contribution plan, and shall be applied and interpreted, consistent with Code Section 415 and regulations thereunder, as applicable to government plans in general and this Plan in particular.
(Ord. 2138. Passed 3-15-93.)
(k) Additional Benefits for Qualified Participants. A "participant" who attains a normal retirement, early retirement, late retirement, disability retirement or a payable death benefit, or terminates on or after January 1, 2000, shall be entitled to receive an additional monthly retirement benefit provided that they had contributed an extra one percent from gross earnings from their date of hire until January 5, 1998, at which time an ordinance was changed that authorized all members to contribute the same percentage and further granted retirement eligibility upon completion of twenty years of credited service. Furthermore, only those qualifying participants who retire after January 1, 2000, shall be entitled to an additional benefit to be determined by accumulating the excess employee contributions with interest until the date of retirement and calculating the actuarial equivalent annuity benefit in accordance with Section 292.01 of the Plan.
(Ord. 2323. Passed 3-17-03; Ord. 2336. Passed 10-20-03.)
(a) Normal Form of Benefit Payment. The normal form for payment of retirement benefits shall be a monthly annuity for the life of the participant.
(b) Commencement of Benefits. A participant may elect to commence receiving distribution of retirement benefits as of the first day of the month coincident with or next following the date on which retirement occurs with an eligibility to receive benefits, or may defer such payments to a date not later than the required date for commencement of benefits determined under subsection (c) hereof.
Unless the participant otherwise elects, payment of benefits under the Plan shall commence not later than sixty days following the close of the Plan year, in which occurs the latest of the following dates:
(1) The date when the participant attains normal retirement age;
(2) The tenth anniversary of the year in which the participant commenced participation in the Plan; or
(3) The date when the participant terminates service with the employer.
(c) Required Distributions.
(1) Notwithstanding any other provision of this Plan, the entire benefit of any participant who becomes entitled to benefits prior to his or her death shall be distributed either:
A. Not later than the required beginning date; or
B. Over a period beginning not later than the required beginning date and extending over the life of such participant or over the lives of such participant and a designated beneficiary (or over a period not extending beyond the life expectancy of such participant, or the joint life expectancies of such participant and a designated beneficiary).
If a participant who is entitled to benefits under this Plan dies prior to the date when his or her entire interest has been distributed to him or her after distribution of his or her benefits has begun in accordance with paragraph (c)(1)B. hereof, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under paragraph (c)(1)B. hereof as of the date of his or her death.
(2) If a participant who is entitled to benefits under this Plan dies before distribution of his or her benefit has begun, the entire interest of such employee shall be distributed within five years of the death of such employee, unless the following sentence is applicable: If any portion of the employee's interest is payable to (or for the benefit of) a designated beneficiary, such portion shall be distributed over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and such distributions begin not later than one year after the date of the employee's death or such later date as provided by regulations issued by the Secretary of the Treasury, then for purposes of the five-year rule set forth in the preceding sentence, the benefit payable to the beneficiary shall be treated as distributed on the date on which such distributions begin. However, notwithstanding the preceding sentence, if the designated beneficiary is the surviving spouse of the participant, then the date on which distributions are required to begin shall not be earlier than the date upon which the employee would have attained age seventy and one-half. Further, if the surviving spouse dies before the distributions to such spouse begin, this paragraph shall be applied as if the surviving spouse were the employee.
(3) For purposes of this subsection, the following definitions and procedures shall apply:
A. "Required beginning date" means April 1 of the calendar year following the later of the calendar year in which the employee attains age seventy and one-half or the calendar year in which the employee retires.
B. "Designated beneficiary" means any individual designated by the employee under this Plan according to its rules.
C. Any amount paid to a child shall be treated as if it had been paid to the surviving spouse if such amount will become payable to the surviving spouse upon such child's reaching majority (or other designated event permitted under regulations issued by the Secretary of the Treasury).
D. The life expectancy of an employee and/or an employee's spouse (other than in the case of a life annuity) may be redetermined, but not more frequently than annually.
(d) Personal Right of Participant. Each participant's right to receive any benefits hereunder is personal and expires on such participant's death. No heir, legatee, devisee, beneficiary, assignee or other person claiming by or through a participant shall have any interest in any benefits hereunder unless clearly and expressly so provided by the terms of this Plan. A participant's election, failure to file an election hereunder or revocation of an election shall be final and binding on all persons.
(Ord. 2138. Passed 3-15-93.)
(a) Rights of Terminated Employees. A participant who ceases to be an employee, except as otherwise hereinbefore provided, shall be limited to those rights under the Plan contained in this section.
(b) Distribution of Accumulated Contributions. A nonvested participant whose employment with the employer ceased for any reason other than death or disability prior to the attainment of an early or normal retirement age shall only be entitled to receive a distribution of accumulated contributions. Upon receipt of such accumulated contributions, said participant and his or her beneficiary shall not be entitled to any further payments from the Plan.
(c) Forfeiture. A participant who terminates employment with the employer, at a time when not vested in any portion of the accrued benefit derived from employer contributions, shall cease to be a participant hereunder and shall not be entitled to any benefits under the Plan derived from employer contributions.
A terminated participant who made employee contributions to the Plan shall have the accumulated contributions distributed to the beneficiary of the participant if the participant dies prior to receipt of the accumulated contributions.
(d) Vested Benefits. A participant who has completed at least ten years of service shall become vested in his or he accrued benefits. If the participant should terminate employment before becoming eligible for normal or early retirement, he or she will be eligible to receive his or her accrued benefit beginning at normal retirement date or at early retirement date, if he or she has twenty years of service (fifteen years of service for non-union employees).
(Ord. 2138. Passed 3-15-93; Ord. 2177. Passed 10-16-95.)
(a) In General. Except as hereinafter set forth, no benefit shall be payable hereunder upon or by reason of the death of any participant.
(b) Death Prior to Retirement. A benefit shall be payable to the beneficiary of a participant who dies prior to retirement, in a single payment, in an amount equal to the accumulated contributions as of the date of death of the participant.
(c) Death After Retirement. A benefit shall be payable to the beneficiary of a participant who dies after the payment of monthly retirement benefits has commenced or the participant is eligible to commence the receipt of a retirement benefit as of the date of death of the participant. The benefit shall be payable in an amount equal to the amount payment to the participant as of the date of death and shall continue to the beneficiary until death. Notwithstanding anything contained herein to the contrary, the benefit payable pursuant to this subsection shall only be payable for a maximum of ninety-six monthly payments made in total to the participant and beneficiary. If the participant received at least ninety-six monthly payments prior to death, there shall be no additional payments made hereunder.
(Ord. 2138. Passed 3-15-93; Ord. 2432. Passed 10-20-08.)
(a) Appointment and Authority of Plan Administrator. Council shall appoint a Plan Administrator, which shall be the Pension Plan Committee. The Plan Administrator shall have the power and authority to do all acts and to execute, acknowledge and deliver all instruments necessary to implement and effectuate the purpose of this Plan. The Plan Administrator may delegate authority to act on its behalf to any persons it deems appropriate. If the Council does not appoint a Plan Administrator, the employer shall be the Plan Administrator.
(Ord. 2138. Passed 3-15-93.)
(b) Membership of Pension Plan Committee. If Council appoints a Pension Plan Committee, such Committee shall consist of the President of Council, the Manager, the Chairperson of the Administration Committee of Council, the Public Works Director, the Electric Department Director and three employees (two from the Laborer's Union and one from the Clerical Union) chosen by the participants. Each member of the Pension Plan Committee shall serve in that capacity until the earliest of resignation, death, removal or otherwise. Each member may resign by delivering written notice to Council and the other members of the Pension Plan Committee. Vacancies on the Pension Plan Committee shall be filled in the same manner as the original appointment was made, provided, however, that the remaining members of the Pension Plan Committee shall have full power to act pending the filling of such vacancies.
(Ord. 2154. Passed 12-19-94; Ord. 2322. Passed 3-17-03.)
(c) Powers and Duties of Plan Administrator. The Plan Administrator shall have full power and authority to do whatever shall, in its judgment, be reasonably necessary for the proper administration and operation of the Plan. The interpretation or construction placed upon any term or provision of the Plan by the Plan Administrator or any action of the Plan Administrator taken in good faith shall, upon the Council's review and approval thereof, be final and conclusive upon all parties thereto, whether employees, participants or other persons concerned. By way of specification and not limitation, and except as specifically limited hereafter, the Plan Administrator is hereby authorized:
(1) To construe this Plan;
(2) To determine all questions affecting the eligibility of any employee to participate herein;
(3) To compute the amount and source of any benefit payable hereunder to any participant or beneficiary;
(4) To authorize any and all disbursements;
(5) To prescribe any procedure to be followed by any participant and/or other person in filing any application or election;
(6) To prepare and distribute, in such manner as may be required by law or as the Administrator deems appropriate, information explaining the Plan;
(7) To require from the employer or any participant such information as shall be necessary for the proper administration of the Plan; and
(8) To appoint and retain any individual to assist in the administration of the Plan, including such legal, clerical, accounting and actuarial services as may be required by any applicable law or laws.
The Plan Administrator shall have no power to add to, subtract from or modify the terms of the Plan or to change or add to any benefits provided by the Plan, or to waive or fail to apply any requirements of eligibility for benefits under the Plan. Further, the Plan Administrator shall have no power to adopt, amend or terminate the Plan, to select or appoint any trustee or to determine or require any contributions to the Plan, said powers being exclusively reserved to Council.
(d) Organization of Pension Plan Committee. The Pension Plan Committee, if one is appointed, may organize itself in any manner deemed appropriate to effectuate its purposes hereunder, subject to the following:
(1) The Committee shall act by a majority of its members at the time in office and such action may be taken either by vote at a meeting or in writing without a meeting.
(2) The Committee shall, from time to time, appoint a Chairperson, a Secretary, who may be, but need not be, a Committee member, and such other agents as it may deem advisable.
(3) The Committee may, from time to time, authorize any one or more of its members to execute any document or documents, including any application, request, certificate, notice, consent, waiver or direction, and shall notify Council, in writing, of the name or names of the member or members so authorized. In the absence of a designation, the Chairperson shall be deemed to be so authorized. Any trustee or other fiduciary appointed hereunder shall accept and be fully protected in relying upon any document executed by the designated member or members (or the Chairperson in the absence of a designation) as representing a valid action by the Committee until the Committee files with such fiduciary a written revocation of such designation.
(4) The Committee or its delegate shall maintain and keep such records as are necessary for the efficient operation of the Plan or as may be required by any applicable law, regulation or ruling and shall provide for the preparation and filing of such forms or reports as may be required to be filed with any governmental agency or department and with the participants and/or other persons entitled to benefits under the Plan.
(e) Compensation and Expenses of Committee Members. The Committee members shall each serve without compensation for services, unless otherwise agreed by Council in writing. All reasonable expenses incident to the functioning of the Committee, including, but not limited to, fees of accountants, counsel, actuaries and other specialists, and other costs of administering the Plan, may be paid from the Pension Fund upon approval by Council, to the extent permitted under applicable law and not otherwise paid by the employer.
(f) Liability. No member of Council, nor the Plan Administrator, the enrolled actuary or any other person involved in the administration of the Plan, shall be liable to any person on account of any act or failure to act, which is taken or omitted to be taken in good faith, in performing their respective duties under the terms of this Plan. To the extent permitted by law, the Borough shall, and hereby does agree to, indemnify and hold harmless each present member of the Committee and each successor thereof and each of any such member's heirs, executors and administrators, and the Committee's delegates and appointees (other than any person, bank, firm or corporation which is independent of the Borough and which renders services to the Plan for a fee), from any and all liability and expenses, including counsel fees, reasonably incurred in any action, suit or proceeding to which he or she is or may be made a party by reason of being or having been a member, delegate or appointee of the Committee, except in matters involving criminal liability or intentional or willful misconduct. If the Borough purchases insurance to cover claims of a nature described above, then there shall be no right of indemnification, except to the extent of any deductible amount under the insurance coverage or to the extent of the amount the claims exceed the insured amount.
(g) Approval of Benefits. The Plan Administrator shall review and approve or deny any application for retirement benefits within thirty days following receipt thereof or within such longer time as may be necessary under the circumstances. Any denial of an application for retirement benefits shall be in writing and shall specify the reason for such denial.
(h) Appeals. Any person whose application for retirement benefits is denied, who questions the amount of benefit paid, who believes a benefit should have commenced which did not so commence, or who has some other claim arising under the Plan ("claimant"), shall first seek a resolution of such claim under the procedure hereinafter set forth.
(1) Any claimant shall file a notice of the claim with the Plan Administrator, which notice shall fully describe the nature of the claim. The Plan Administrator shall review the claim and make an initial determination approving or denying the claim.
(2) If the claim is denied, in whole or in part, the Plan Administrator shall, within ninety days (or such other period as may be established by applicable law) from the time the application is received, mail notice of such denial to the claimant. Such ninety-day period may be extended by the Plan Administrator, if special circumstances so require, for up to ninety additional days, by the Plan Administrator's delivering notice of such extension to the claimant within the first ninety-day period. Any notice hereunder shall be written in a matter calculated to be understood by the claimant and, if it is a notice of denial, shall set forth the specific Plan provisions on which the denial is based, an explanation of additional material or information, if any, necessary to perfect such claim and a statement of why such material or information is necessary, and an explanation of the review procedure.
(3) Upon receipt of notice denying the claim, the claimant shall have the right to request a full and fair review by Council of the initial determination. Such request for review must be made by notice to Council within sixty days of receipt of such notice of denial. During such review, the claimant or a duly authorized representative shall have the right to review any pertinent documents and to submit any issues or comments in writing. Council shall, within sixty days after the receipt of the notice requesting such review (or in special circumstances, such as where Council in its sole discretion holds a hearing, within 120 days of receipt of such notice), submit its decision, in writing, to the person or persons whose claim has been denied. The decision shall be final, conclusive and binding on all parties, shall be written in a manner calculated to be understood by the claimant and shall contain specific references to the pertinent Plan provisions on which the decision is based.
(4) Any notice of a claim questioning the amount of a benefit in pay status shall be filed within ninety days following the date of the first payment which would be adjusted if the claim is granted, unless the Plan Administrator allows a later filing for good cause shown.
(5) A claimant who does not submit a notice of a claim or a notice requesting a review of a denial of a claim within the time limitations specified above shall be deemed to have waived such claim or right to review.
(Ord. 2138. Passed 3-15-93.)
(a) Operation. Council is hereby authorized to hold and supervise the investment of the assets of the Pension Fund, subject to the provisions of the laws of the Commonwealth and of this Plan and any amendment thereto.
The Pension Fund shall be used to pay benefits as provided in the Plan and, to the extent not paid directly by the employer, to pay the expenses of administering the Plan pursuant to authorization by the employer.
The employer intends the Plan to be permanent and for the exclusive benefit of its employees. It expects to make the contributions to the trust required under the Plan. The employer shall not be liable in any manner for any insufficiency in the Pension Fund. Benefits shall be payable only from the Pension Fund and only to the extent that there are monies available therein.
The Pension Fund shall consist of all funds held by the employer under the Plan, including contributions made pursuant to the provisions hereof and the investments, reinvestments and proceeds thereof. The Pension Fund shall be held, managed and administered pursuant to the terms of the Plan. Except as otherwise expressly provided in the Plan, the employer has exclusive authority and discretion to manage and control the Pension Fund assets. The employer may, however, appoint a trustee, custodian and/or investment manager, at its sole discretion.
(b) Powers and Duties of Employer. With respect to the Pension Fund, the employer shall have the following powers, rights and duties, in addition to those vested in it elsewhere in the Plan or by law, unless such duties are delegated:
(1) To retain, in cash, so much of the Pension Fund as it deems advisable and to deposit any cash so retained in any bank or similar financial institution (including any such institution which may be appointed to serve as trustee hereunder), without liability for interest thereon.
(2) To invest and reinvest the principal and income of the Fund and to keep said Fund invested, without distinction between principal and income, in securities which are, at the time, legal investments for fiduciaries under the Pennsylvania Fiduciaries Investment Act, or as the same may be subsequently modified or amended.
(3) To sell property held in the Fund, at either public or private sale, for cash or on credit, at such times as it may deem appropriate; to exchange such property; and to grant options for the purchase or exchange thereof.
(4) To consent to and participate in any plan of reorganization, consolidation, merger, extension or other similar plan affecting property held in the Fund and to consent to any contract, lease, mortgage, purchase, sale or other action by any corporation pursuant to any such plan.
(5) To exercise all conversion and subscription rights pertaining to property held in the Fund.
(6) To exercise all voting rights with respect to property held in the Fund and, in connection therewith, to grant proxies, discretionary or otherwise.
(7) To place money, at any time, in a deposit bank deemed to be appropriate for the purposes of this Plan, no matter where situated, including, in those cases where a bank has been appointed to serve as trustee hereunder, the savings department of its own commercial bank.
(8) To maintain and invest the assets of this Plan, on a collective and commingled basis, with the assets of other pension plans maintained by the employer, provided that the assets of each respective plan shall be accounted for and administered separately.
(9) To invest the assets of the Pension Fund in any collective commingled trust fund maintained by a bank or trust company, including any bank or trust company which may act as a trustee hereunder. In this connection, the commingling of the assets of this Plan with assets of other eligible, participating plans through such a medium is hereby specifically authorized. Any assets of the Plan which may be so added to such collective trusts shall be subject to all of the provisions of the applicable declaration of trust, as amended from time to time, which declaration, if required by its terms or by applicable law, is hereby adopted as part of the Plan, to the extent of the participation in such collective or commingled trust fund by the Plan.
(10) To make any payment or distribution required or advisable to carry out the provisions of the Plan, provided that if a trustee is appointed by the employer, such trustee shall make such distribution only at the direction of the employer.
(11) To compromise, contest, arbitrate, enforce or abandon claims and demands with respect to the Plan.
(12) To retain any funds or property subject to any dispute, without liability for the payment of interest thereon, and to decline to make payment or delivery thereof until final adjudication is made by a court of competent jurisdiction.
(13) To pay, and to deduct from and charge against the Pension Fund, any taxes which may be imposed thereon, whether with respect to the income, property or transfer thereof, or upon or with respect to the interest of any person therein, which the Fund is required to pay, and to contest, in its discretion, the validity or amount of any tax, assessment, claim or demand which may be levied or made against or in respect of the Pension Fund, the income, property or transfer thereof, or in any matter or thing connected therewith.
(14) To appoint any persons or firms (including, but not limited to, accountants, investment advisors, counsel, actuaries, physicians, appraisers, consultants, professional plan administrators and other specialists), or otherwise act to secure specialized advise or assistance, as it deems necessary or desirable in connection with the management of the Fund. To the extent not prohibited by applicable law, the employer shall be entitled to rely conclusively upon, and shall be fully protected in any action or omission taken by it in good faith reliance upon, the advice or opinion of such persons or firms, provided that such persons or firms were prudently chosen by the employer, taking into account the interests of the participants and beneficiaries and with due regard to the ability of the persons or firms to perform their assigned functions.
(15) To retain the services of one or more persons or firms for the management of (including power to acquire and dispose of) all or any part of the Fund assets, provided that each of such persons or firms is registered as an investment advisor under the Investment Advisors Act of 1940, is a bank (as defined in that Act), or is an insurance company qualified to manage, acquire or dispose of pension trust assets under the law of more than one state. In such event, the employee shall follow the directions of such investment manager or managers, with respect to the acquisition and disposition of fund assets, but shall not be liable for the acts or omissions of such investment manager or managers, nor shall it be under any obligation to review or otherwise manage any Fund assets which are subject to the management of such investment manager or managers. If the employer appoints a trustee, the trustee shall not be permitted to retain such an investment manager, except with the express written consent of the employer.
In addition to the foregoing powers, the employer shall also have all of the powers, rights and privileges conferred upon trustees by the Pennsylvania Fiduciaries Investment Act, or as the same may be subsequently modified or amended, and the power to do all acts, take all proceedings and execute all rights and privileges, although not specifically mentioned herein, as the employer may deem necessary to administer the Pension Fund.
(c) Investment of Funds. The employer shall not be required to make separate investments for individual participants or to maintain separate investments for each participant's account, but may invest contributions and any profits or gains therefrom in common investments.
(d) Compensation and Expenses of Appointed Trustee. If a trustee is appointed, the trustee shall be entitled to such reasonable compensation as shall from time to time be agreed upon by the employer and the trustee, unless such compensation is prohibited by law. Such compensation, and all expenses reasonably incurred by the trustee in carrying out his or her functions, shall constitute a charge upon the employer or the Pension Fund, which may be executed at any time after thirty days written notice to the employer. The employer shall be under no obligation to pay such costs and expenses, and, in the event of its failure to do so, the trustee shall be entitled to pay the same, or to be reimbursed for the payment thereof, from the Pension Fund.
(e) Periodic Accounting of Fund. If a trustee is appointed, the Pension Fund shall be evaluated annually, or at more frequent intervals, by the trustee, and a written accounting rendered as of each fiscal year end of the Fund, and as of the effective date of any removal or resignation of the trustee, and at such additional dates as requested by the employer, showing the condition of the Fund and all receipts, disbursements and other transactions effected by the trustee during the period covered by the accounting, based on fair market values prevailing as of such date.
(f) Value. All determinations as to the value of the assets of the Pension Fund, and as to the amount of the liabilities thereof, shall be made by the employer or its appointed trustee, whose decisions shall be final and conclusive and binding on all parties thereto, the participants and beneficiaries and their estates. In making any such determination, the employer or trustee shall be entitled to seek and rely upon the opinion of or any information furnished by brokers, appraisers and other experts, and shall also be entitled to rely upon reports as to sales and quotations, both on security exchanges and otherwise as contained in newspapers and in financial publications.
(Ord. 2138. Passed 3-15-93.)
The employer shall have the right to amend the Plan, at any time, by adoption of the appropriate resolution or ordinance, and with respect to any provisions thereof, and all parties thereto or claiming any interest thereunder, shall be bound thereby, provided, however, that no amendment shall revise the accrued benefit of a participant determined as of the later of the date such amendment is adopted or the date such amendment becomes effective, if such revised vested accrued benefit is less than that computed under the Plan without regard to such amendment.
No amendment to the Pension Plan, which provides for a benefit modification, shall be made, unless the cost estimate described in Section 292.12(c) has been prepared and presented to the employer in accordance with the Act.
(Ord. 2138. Passed 3-15-93.)
(a) Right to Terminate. It is the present intention of the employer to maintain the Plan indefinitely. Nevertheless, the employer reserves the right, at any time, to permanently discontinue further contributions to the Plan or to terminate the entire Plan consistent with the provisions of applicable law.
(b) Distribution Upon Termination. In the event of the termination or partial termination of the Plan, all amounts of benefits accrued by the affected participants to the date of such termination, to the extent funded on such date, shall immediately become fully vested and nonforfeitable. In the event of termination of the Plan, the employer shall direct either that the accrued benefits of participants in the Plan continue to be held in the Pension Fund in accordance with the provisions of the Plan (other than those provisions relating to forfeitures), without regard to such termination, until all funds have been distributed in accordance with such provisions, or that distribution be made to each participant, in an amount equal to his or her accrued benefit as of such date, in the form of a lump sum or such other form as may be approved by the employer.
If there are insufficient assets in the Pension Fund to provide for all vested accrued benefits as of the date of Plan termination, priority shall first be given to the distribution of any amounts attributable to participant contributions before assets are applied to the distribution of vested benefits attributable to other sources hereunder.
(c) Residual Assets. If all liabilities under the Plan to participants and others entitled to receive a benefit have been satisfied, and there remain any residual assets in the Pension Fund, the residual assets shall be returned to the employer, insofar as such return does not contravene any provision of law, and any remaining balance, in excess of employer contributions, shall be returned to the Commonwealth.
(Ord. 2138. Passed 3-15-93.)
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