The following words and phrases as used in this plan shall have the meaning set below unless a different meaning is otherwise clearly required by the context:
(a) "Accrued benefit" means the amount of retirement benefit credited to the participant determined in accordance with Section 287.04 calculated on the basis of the participant's final monthly average salary determined as of such date and multiplied by a fraction, the numerator of which shall be the participant's completed years of service as of such date and the denominator of which shall be the number of years of service which are required to be completed by the participant to attain normal retirement age under the plan. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one (1.0). In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under Section 286.12(d). All accrued benefits are subject to all applicable limitations, reductions, offsets, and actuarial adjustments provided by the plan prior to the actual payment thereof and no accrued benefits shall be paid unless the participant satisfies all requirements hereunder for entitlement to receive such benefit.
(b) "Act" means the Municipal Pension Plan Funding Standard and Recovery Act, enacted as P.L. 1005 (Act 205 of 1984), as the same may be amended from time to time.
(c) "Actuarial equivalent" shall mean a form of benefit differing in time, period, or manner of payment from a specific benefit provided under the plan, but having the same value when computed using the applicable mortality table with interest computed at 7.5 percent. The applicable mortality table is the mortality table described in Revenue Ruling 2001-62.
(d) "Actuarially sound" means a plan which is being funded annually at a level not lower than the financial requirements of the plan pursuant to the Act.
(e) "Actuary" means the person, partnership, association or corporation which at any given time services as actuary to the plan; provided that such actuary must be an "approved actuary" as defined in the Act.
(f) "Age" means the age of a Participant computed as of his or her last birthday.
(g) "Anniversary date" means January 1 of each year following the effective date of the plan.
(i) "Chief Administrative Officer" means the person who has primary responsibility for the execution of the administrative affairs of the plan, subject to the limitations and qualifications of Act 205.
(j) "City Council" or "Council" means the governing body of the employer.
(k) "Code" means the Internal Revenue Code of 1986, as amended or replaced from time to time.
(l) "Commission" means the Police Pension Fund Commission which shall be composed of an official of the City that is designated by the City, the Director of Accounts and Finance, the City Treasurer and three members of the police force (one of whom shall be the Chief of Police and the others shall be selected by the police force) and one citizen selected by Council.
(m) "Compensation" means the fixed monthly rate of remuneration paid at regular, periodic intervals to an employee by the employer with respect to his or her personal services as an employee and from which pension contributions have been deducted, which includes base pay and longevity pay but excludes court pay, overtime and any other remunerations.
(n) The "effective date" of this amendment and restatement of the plan is January 1, 2008.
(o) "Employee" means any full time member of the Police Department of the employer hired on or after January 1, 2008.
(p) "Employer" means the City of Sharon.
(q) "Entry date" means the date on which an employee first completes an hour of service.
(r) "Fiduciary" or named fiduciary means any person who, with respect to this plan:
(1) Exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets,
(2) Renders investment advice for a fee or other compensation direct or indirect, with respect to any monies or other property of such plan, or has any authority or responsibility to do so; or
(3) Has any discretionary authority or discretionary responsibility in the administration of the plan.
(s) "Final monthly average salary" means the greater of:
(1) The rate of the participant's monthly compensation as of the date of retirement, death or termination of employment; or
(2) The sum of the compensation received by a participant during the five highest years as an active participant prior to his or her retirement date, death, or termination of employment with the employer divided by sixty.
(t) "Former participant" means a person who has been a participant, but has ceased to be a participant for any reason. Any participant with a vested interest who is no longer employed by the employer shall also be considered a former participant.
(u) "Married participant" means a participant who is married when a benefit is payable.
(v) "Normal retirement age" means the later of: twenty years of continuous service and age fifty. A participant shall have a 100% nonforfeitable vested interest in his accrued benefit upon attainment of his normal retirement age. Normal retirement date shall mean retirement after reaching normal retirement age.
(w) "Participant" means any employee who has met any eligibility requirements to participate in the plan and who has not for any reason ceased to be a participant hereunder.
(x) "Pension fund" shall mean the assets of this plan administered under the terms, rules and regulations of the Commission as set forth in Section 287.09 and Act 205, and which shall include all money, property, investments, policies and contracts that are a part of the plan.
(y) "Pick-up contribution account" means an account established pursuant to Section 287.03b of the plan. Pick-up contributions shall be made pursuant to Section 414(h)(2) of the Code and shall be made on a pre-tax basis for Federal Income Tax purposes.
(z) "Plan" means the defined benefit pension plan set forth herein (including any trust forming a part hereof), as amended and supplemented from time to time, all of which shall be known as the City of Sharon Police Pension Plan—New Hires Addendum.
(aa) "Plan year" means each twelve month period beginning on January 1 and ending on the following December 31 (also applicable prior to the effective date of the plan).
(bb) "Regulations" means U.S. treasury regulations issued pursuant to the Code.
(cc) "Retirement date" means the date of actual retirement of a participant which may be his or her normal, late or disability retirement date, whichever is applicable to him or her pursuant to Section 287.05 of the plan.
(dd) "Service" means the total period or periods the participant is an employee of employer excluding any leave of absence granted by Council, but including time spent in any state or federal government agency pursuant to legislative regulations requiring said police officer's service. Any participant who actively served in the armed forces of the United States subsequent to September 1, 1940, and who was not a participant prior to such military service, may be entitled to have full credit for each year or fraction thereof, not to exceed five years of such service upon his or her payment to the pension fund of an amount equal to that which he or she would have paid had he or she been a participant during the period for which he or she desires credit, and his or her payment to the pension fund of an additional amount as the equivalent of the contributions of the employer on account of such military service.
(ee) "Vested interest" means a member of the association who has attained twelve or more years of service shall obtain a vested interest in the plan.
(Ord. 07-09. Passed 4-16-09.)