(A) The borough, being a member municipality of the Pennsylvania Municipal Retirement System (the System), hereby elects to change its member benefits in that System as authorized by the Pennsylvania Municipal Retirement Law, being 53 P.S. § 881.101, as amended, and does hereby agree to be bound by all the requirements and provisions of said article and the law, as the case may be, and to assume all obligations, financial and otherwise, placed upon member municipalities by said amendment, as the case may be. All references hereafter shall be based on benefits negotiated between the Pennsylvania Municipal Retirement Board (the Board) and the borough under the provisions of Article IV of the Pennsylvania Municipal Retirement Law, being 53 P.S. § 881.101.
(B) Membership in the System shall be mandatory for all full-time municipal employees of the borough. Membership for elected officials, part-time employees not currently members and employees hired on a temporary or seasonal basis is prohibited, as is membership for individuals paid only on a fee basis.
(C) Credit for prior service for original members is granted for each year or partial year thereof that the member was employed by the borough from original date of hire as long as there is continuous, uninterrupted employment to the borough. Benefits provided to members in the agreement dated August 10, 2009 (the “agreement”), shall accrue based on all credited service granted and earned in accordance with this section.
(D) Payment for any obligation established by the adoption of this section and the agreement between the Board and the Borough Council shall be made by the Borough Council in accordance with the Pennsylvania Municipal Retirement Law and Act 205 of 1984, being 53 P.S. § 881.101, the Municipal Pension Plan Funding Standard and Recovery Act, being 53 P.S. § 895.101.
(E) As part of this section, the borough agrees that the System shall provide the benefits set forth in the agreement. The passage and adoption of this section by the borough is an official acceptance of said agreement and the financial obligations resulting from the administration of said benefit package. The borough hereby assumes all liability for any unfundedness created or which may be created due to the acceptance of the benefit structure outlined in the above-referenced agreement.
(F) The borough intends this section to be the complete authorization of the borough’s municipal pension plan and it shall become effective and specifically repeal Ord. 1-1995 either immediately or on July 1, 2009, which is the effective date of the agreement, whichever is later.
(Ord. 6-2009, passed 8-10-2009)