A. Construction. The masculine gender includes the feminine and the singular includes the plural, unless the context clearly indicates otherwise.
B. Governing law. The plan and fund are governed by the Third Class City Code of Pennsylvania.
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The plan is a governmental plan as defined in Section 414(d) of the Code and Section 3(32) of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, and as such is exempt from the requirements of ERISA and those requirements of the Code from which a governmental plan is specifically exempt.
C. Pre-ERISA vesting requirement. In the event of the plan's termination or the City's permanent cessation of contributions, each member shall be vested to the extent the plan is funded.
D. Reemployment rights of veterans. Notwithstanding anything in this plan to the contrary, benefits contributions, and service credit with respect to qualified military service [as defined in section 414(u)(5) of the Code] will be provided in accordance with Section 414(u) of the Code.
E. Amendments. The City Council shall have the authority to amend, freeze, or terminate the plan in its sole discretion, subject to any limitations imposed by applicable law.
F. Return of overpayments correction methods. Overpayments as a result of amounts being paid in excess of the amounts provided by the provisions of the plan may be corrected using the return of overpayment correction methods set forth as follows:
(1) The Board shall take reasonable steps to have the overpayment together with an amount equal to 5% simple interest returned by the Member (employee or former employee) to the plan and correct future benefit payments, if any, due the Member to reflect the appropriate calculations of the Member's pension. In addition, the Board shall notify the Member that the overpayment is not eligible for favorable tax treatment accorded distributions from qualified plans and specifically is not eligible for tax free roll over treatment.
(2) In addition to the return of overpayment correction method set forth above in the case of plan benefits that are being distributed in the form of periodic payments, overpayments as a result of amounts being paid in excess of the plan requirements may be corrected by reducing the future periodic payments due to the Member. The adjustment of the future periodic payments shall be made over a period not to exceed a period established by the Board to recoup the overpayments. [Amended 3-27-2017 by Ord. No. 28-2017]
6. Editor's Note: See 11 Pa.C.S. §§ 10101 et seq.