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 289.04 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 Subsection 289.04(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 interest computed at 7.5 percent. The Applicable Mortality Table shall be utilized. The Applicable Mortality Table is the mortality table described in Revenue Ruling 95-6,1955-1 C.B. 80.
(d) "Actuarially sound" means a plan that 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 that at any given time serves 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) "Board" means a Board of Managers which shall be known and designated as the "Firefighters' Pension Fund Board" and shall be composed of the following:
(1) Mayor of Sharon.
(2) Director of Accounts and Finance.
(3) Director of Public Safety.
(4) Two members of the Department of Fire-Rescue, to be chosen by the Department of Fire-Rescue.
(5) The Chief of the Department of Fire-Rescue shall be ex officio member of the Board.
(j) "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.
(k) "City Council" or "Council” means the governing body of the employer.
(l) "Code" means the Internal Revenue Code of 1986, as amended or replaced from time to time.
(m) “Department of Fire-Rescue” means the City of Sharon Department of Fire-Rescue.
(n) The "Effective Date" of this amendment and restatement of the plan is January 1, 2008.
(o) "Employee" means a full-time member of the bureau of fire of the employer. Any member of the bureau of fire of the employer who is classified as a part-time employee shall not be an employee for the purposes of this plan and is ineligible to participate in this plan.
(p) "Employer" means the City of Sharon.
(q) "Entry Date" means the date on which an employee becomes a member of the Department of Fire-Rescue.
(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 (a) the rate of the participant's monthly salary as of the date of retirement, death or termination of employment or (b) the sum of the salary 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.
(u) "Married participant" means a participant who is married when a benefit is payable.
(v) Normal retirement age" means twenty years of service. For participants hired on or after January 1, 2008, normal retirement age shall be age fifty with twenty years of service. A participant shall have a 100% nonforfeitable vested interest in his accrued benefit upon attainment of his normal retirement age.
(w) "Participant" means any employee or former employee who is eligible to receive benefits pursuant to this plan.
(x) "Pension fund" shall mean the assets of this plan administered under the terms, rules and regulations of the Board as set forth in Section 289.09 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 289.03(b) 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 Firefighters's Pension Plan.
(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 289.05 of the plan.
(dd) "Salary" means the fixed amount of compensation paid at regular, periodic intervals by the City to the member and from which pension contributions have been deducted which includes base pay and longevity pay but excludes court pay, overtime and any other remunerations.
(ee) "Service" means the total period or periods the participant is an employee of employer and is a member of the Department of Fire-Rescue.
(ff) "Third Class City Code" means the Third Class City Code (enacted as P.L 932), as amended.
(Ord. 05-09. Passed 4-16-09; Ord. 02-15. Passed 4-16-15.)