[Ord. 892, 10/15/2007, § 1; as amended by Ord. 959, 12/5/2011, Part 2]
1. 
Pursuant to Chapter 1, Part 12B, of the Township of Ferguson (hereinafter referred to as the "employer"), Code of Ordinances (Ord. 828, as amended) (hereinafter referred to as "Prior Plan"), the Township has maintained a pension plan for the benefit of full-time police officers known as the Township of Ferguson Police Pension Plan.
2. 
Effective January 1, 2005, except to the extent a different date is indicated in the text herein, the Township desires to amend and restate the Prior Plan, in its entirety, the terms of which are hereinafter set forth. This document shall continue to be known as the Township of Ferguson Police Pension Plan (hereinafter referred to as the "Plan").
3. 
The purpose of this Plan continues to be to provide retirement income for the benefit of its eligible employees and their beneficiaries, but limited to those who qualify in accordance with the terms and conditions of the Plan as set forth herein.
4. 
The Township intends that this Plan, together with any related trust agreement, shall meet all the pertinent requirements for qualification under the Internal Revenue Code of 1986, as amended, and the Plan and trust agreement shall be interpreted, wherever possible, to comply with the terms of said Code and all formal regulations and rulings pertinent to the Plan and trust agreement issued thereunder. Further, the Plan is required to comply with the applicable terms of the Pension Protection Act of 2006 (PPA) and the Heroes Earnings Assistance Relief Tax Act (HEART Act), as amended.
5. 
Each retired participant who terminated employment on or before December 31, 2004, shall receive his/her benefits under the Plan as it existed prior to this restatement, except where otherwise specifically provided herein.
6. 
Each terminated participant who terminated employment prior to January 1, 2005, with a vested interest in his/her accrued benefit under the Prior Plan and who had not commenced receiving his/her retirement benefit on such date will be eligible to receive retirement benefit on such benefit commencement date as set forth in the Prior Plan. The provisions of this Plan shall apply only to any participant who terminates employment on and after January 1, 2005, except where specifically provided to the contrary.
[Ord. 892, 10/15/2007, § 1]
ACCRUED BENEFIT PERCENTAGE
 A fraction, the numerator of which represents the participant's total cumulative years of service earned to the date of determination, and the denominator of which represents the total possible years of service he/she could earn from his/her date of hire to his/her normal retirement date. In addition and notwithstanding the foregoing, a participant's accrued benefit percentage may never exceed the number one. The "accrued benefit" shall be the accrued benefit percentage times 50% of the final monthly average salary, as of the date of determination.
ACTUARIAL EQUIVALENT
Two forms of payment of equal actuarial present value on a specified date. "Actuarial value" shall be based upon 7% interest and UP-1984 Mortality Tables.
BENEFICIARY
The person specified by each participant on becoming a participant by way of written notice which designates his/her beneficiary or beneficiaries to the Plan Administrator. The participant's' election of any such beneficiary or beneficiaries may be rescinded or changed without the consent of the beneficiary or beneficiaries, at any time provided the participant provides the Plan Administrator with written notice of the changed designation and complies with any procedures established by the Plan Administrator.
BOARD
The Ferguson Township Board of Supervisors.
COMPENSATION
The base salary (not including longevity) of a participant, received or receivable during the participant's employment with the Township as an eligible employee, that shall be considered under the Plan for purposes of calculating benefits and contributions, and in applying any applicable limitations to such benefits or contributions. Base salary shall exclude all overtime, bonuses, premiums and other recuperation not paid in a fixed amount at periodic intervals.
DEPENDENT CHILD
Any natural-born child, any legally-adopted child, any stepchild, or any foster child of a participant, which child is unmarried, has not yet attained age 18, and, in the case of a foster child, resides in such participant's household.
DISABLED OR DISABILITY
A medically determined physical or mental impairment which can be expected to result in death or to last at least 12 months and which prevents a person from engaging in his/her usual duties or any other similar duties available in the Township's employ. No participant shall be found to be disabled until at least six months from the date of the commencement of the condition which ultimately results in disability. Such disability must be evidenced by a certificate of a reputable licensed physician either selected or approved by the Township. For participants hired on or after January 24, 2001, such participant shall not be considered disabled or to have a disability unless the participant's disability results from injuries incurred in the course of performance of his/her duties as a police officer for the Township.
ELIGIBLE EMPLOYEE
A regularly scheduled, full-time police officer of the Township. For the purpose of this definition, full-time shall mean regularly scheduled to work at least 40 hours per week. Any police officer employed as a temporary, special, part-time, or permanent part-time officer of the Township shall not be considered an eligible employee for purposes of this Plan.
ELIGIBLE SPOUSE
The spouse to whom a participant is married.
FINAL AVERAGE MONTHLY SALARY
The compensation of a participant related to and averaged over the participant's final 36 months of service.
FORMER PARTICIPANT
A person who had become a participant, but who subsequently ceased to be an eligible employee on account of death or other termination of employment with the Township.
MEMBER(S)
Former participant(s) who are entitled to current or future benefits from the Plan and participant(s).
NORMAL RETIREMENT DATE
For participants hired before January 24, 2001, other than incurring a disability, shall mean the date on which a participant attains age 50 or completes 20 years of service, whichever is later. For participants hired on or after January 24, 2001, "normal retirement date" shall mean the date on which the participant attains age 55 or completes 25 years of service, whichever is later.
PARTICIPANT
An eligible employee, effective as of the date on which such employee first commences or recommences service with the Township and who has not for any reason ceased to be a participant hereunder.
PENSION FUND OR FUND
The police pension fund administered under the terms of this Plan and which shall include all money, property, investments, policies and contracts standing in the name of the Plan.
SERVICE
The continuous period during which an eligible employee is directly entitled to compensation by the Township for the performance of duties as a full-time police officer of the Township or receives, or is entitled to receive, payment for:
A. 
The time actually worked for the Township as an eligible employee.
B. 
Absence due to vacation, holidays, or sickness.
C. 
An authorized leave of absence.
D. 
Any period of voluntary or involuntary military service with the armed forces of the United States of America, provided that the participant has been employed as a regular full-time member of the Township's police force for a period of at least six months immediately prior to the period of military service, and the participant returns as an eligible employee within six months following discharge from military service or within such longer period during which employment rights are guaranteed by applicable law or under the terms of the collective bargaining agreement with the Township and subject to the condition that the participant contributes to the Plan an amount equal to the sum of contributions that would have been payable had the participant remained an active member during his/her period of military service and subject to the limitations contained in Act 600.
E. 
Any period of voluntary or involuntary military service with the armed forces of the United States of America not to exceed a total of two years which occurred prior to the date on which a participant first became employed as an eligible employee of the employer, provided that the participant shall purchase such credit and that such participant is not entitled to receive, eligible to receive or is receiving retirement benefits for such military service under a retirement system administered and wholly or partially paid for by any other governmental agency except military retirement pay earned by a combination of active and nonactive duty with a reserve or national guard component of the armed forces which is payable upon the attainment of a specified age and period of service under 10 U.S.C. Ch. 67 (relating to retired pay for non-regular service). The purchase price for such service shall be computed by multiplying the average normal cost rate for the Plan as certified by the Public Employee Retirement Commission and not to exceed 10% times the participant's average annual rate of compensation during the first three years of employment and multiplying the result times the number of years and fractions thereof being purchased. Interest shall be paid at a rate of 4.75% compounded annually from the first date of employment to the date of payment.
TOWNSHIP
The Township of Ferguson located in Centre County, Pennsylvania.
YEAR OF SERVICE
Twelve complete calendar months of service.
[Ord. 892, 10/15/2007, § 1]
1. 
Entitlement. A former participant must satisfy at least one of the following requirements to become entitled to the retirement benefit described in Subsection 2 below:
A. 
Have reached normal retirement date on or before the date on which he/she became a former participant.
B. 
Have satisfied the conditions for entitlement to a deferred vested benefit as set forth in Subsection 4. Note that this benefit is available based upon the condition that it will not impair the actuarial soundness of the Plan. Note that the failure to file an election to vest will result in a payment of member contributions and associated earnings in a lump-sum to the former participant pursuant to § 1-1226.3 of the Plan.
2. 
Retirement Benefit. A former participant who satisfies the conditions for entitlement described in the foregoing subsection shall be entitled to a monthly amount payable for his/her life, which amount (referred to hereinafter as the "retirement benefit" or "normal retirement benefit") is derived from the following formula:
(a x b)
Where, with respect to said former participant,
a = 50% of final average monthly salary.
b = The accrued benefit percentage.
Provided, however, that payment of benefits upon retirement shall be conditioned upon a former participant's being subject to service from time to time as a police reserve in cases of riot, tumult or preservation of the public peace until unfitted for such service, at which time such former participant shall be finally discharged by reason of age or disability upon written notice from the Board.
3. 
Commencement. The retirement benefit of a former participant shall become payable on the first day of the calendar month coincident with or next following the later of: (A) the date the former participant would reach his/her normal retirement date if he/she continued to be an eligible employee until such date; or (B) the date on which his/her employment terminated with the Township and, thereafter, the first day of each month during the former participant's lifetime. Notwithstanding anything contained herein to the contrary, no retirement benefit payments nor any other payments shall be due or payable on or before the first day of the month coincident with or next following the date that is 30 days after the date the Administrator receives the application for benefits.
4. 
Deferred Vested Benefit.
A. 
For participants hired before January 24, 2001: A participant eligible for a deferred vested benefit according the vesting schedule set forth below shall be entitled to receive a deferred vested benefit in lieu of a return of member contributions (and interest) under § 1-1226 by filing with the Township of Ferguson, within 90 days of the date he/she ceases to be a full-time police officer, a written notice of his/her intention to vest. The benefits which a participant shall have a vested right to obtain are defined as follows:
A percentage based on years of service, as in the schedule below, multiplied by the participant's accrued benefit as of his/her date of termination of employment such as he/she is no longer accruing service.
Years of Service
Vested Percentage
0-4
0%
5
25%
6
30%
7
35%
8
40%
9
45%
10
50%
11
60%
12
70%
13
80%
14
90%
15 or more
100%
The vested benefit determined above shall become payable on the participant's normal retirement date.
B. 
Participants hired on or after January 24, 2001, who, after completing 12 years of service, cease to be an eligible employee before reaching his or her normal retirement date, shall be entitled to vest his or her retirement benefits by filing with the Township a written notice of his or her intention to vest within 90 days after he or she ceases to be an eligible employee. Upon reaching the date which would have been his or her normal retirement date if he or she had continued to be employed as an eligible employee, he or she shall be paid a retirement benefit calculated as set forth in Subsection 2 with, for the purposes of that calculation, final average salary being calculated over the final 36 months the former participant was an eligible employee.
5. 
Form of Benefit Payment. Notwithstanding anything contained herein to the contrary, a participant hired before January 24, 2001, who gives at least 30 days' written notice to the Plan Administrator before the date retirement payments shall commence, may choose to receive retirement payments in an optional form which is the actuarial equivalent of the retirement benefit as described in Subsections 2 and 4. The following options may be selected; the joint and survivor annuity option which shall pay a reduced amount monthly to the participant until death and if the participant's beneficiary is then living shall pay a monthly amount to the beneficiary until death equal to 50% or 100% of the monthly amount paid to the participant, whichever amount shall have been chosen by the participant.
[Ord. 892, 10/15/2007, § 1]
1. 
Disability Benefit.
A. 
A disabled participant shall be entitled to receive a monthly benefit equal to 100% of the present value of his or her accrued benefit. This amount shall be offset or reduced by any amounts payable pursuant to the short-term disability insurance plan funded by the employer. The disability benefit entitlement shall begin on the first day of the calendar month coincident with or next following the date on which the participant has satisfied the Plan's definition of disability and shall continue, except as noted below, until the earliest of his/her death or recovery from disability.
B. 
Notwithstanding anything to the contrary in this subsection, for disabilities incurred after April 17, 2002, which are the result of injuries incurred in the performance of the participant's duties as a police officer for the Township, the disability benefit payable to a participant who meets the requirements of § 1-1222 of the Plan is a monthly benefit calculated at 50% of the participant's salary (within the meaning of "salary" under Act 30 of 2002) at the time the disability was incurred provided that any participant who receives benefits for the same injuries under the Social Security Act (42 U.S.C. § 301 et seq.) shall have his/her disability benefits offset or reduced by the amount of such benefits. Notwithstanding anything to the contrary in this Plan, anyone receiving benefits under this paragraph shall receive no other disability benefits or retirement benefits under this Plan.
To the extent permitted by applicable law, any disability benefit payable under this Subsection 1B shall be offset or reduced by any amounts payable pursuant to the short-term disability plan funded by the employer.
2. 
Payment of Disability Benefits. Disability payments shall be made monthly as of the first day of each month, continuing until the termination of the disability benefit as provided in Subsection 3 hereof or attainment of normal retirement age (such a disabled participant who attains normal retirement age shall thereafter receive a normal retirement benefit pursuant to § 1-1223). Notwithstanding anything contained herein to the contrary, no disability benefit payments shall be required to be paid on or before the first day of the month coincident with or next following the date that is 30 days after the date that the Administrator receives the certificate of the physician evidencing the disability, although benefit entitlement shall be retroactive to the first day of the month immediately following or coincident with the participant's disability.
3. 
Termination of the Disability Benefit. The disability benefit described above shall be terminated:
A. 
If the Township shall determine, on the basis of a medical examination by a physician acceptable to the Township (and agreed to by the disabled participant) that the disabled participant, prior to his/her normal retirement date, has sufficiently recovered to return to service. If the Township and the disabled participant cannot agree on a physician, they shall each select a physician who will then select a third physician who will make a final binding decision (The physician determined pursuant to this paragraph shall be hereinafter referred to as the "selected physician").
B. 
If the disabled participant refuses to undergo a medical examination by the selected physician, if so available (if not so available, the selection process in Subsection 3A above shall be reinitiated), which may be requested by the Township or the Administrator; provided that the disabled participant may not be required to undergo a medical examination more often than once every six months.
C. 
If the disabled participant is employed in any capacity as a full-time or part-time police officer after qualifying for the disability benefit.
D. 
If the disabled participant recovers from his/her disability and does not return to service.
From time to time, the Board shall adopt uniform provisions for disability participants whose disability benefit is terminated pursuant to the above and for disabled participants who recover from disability and return to service.
4. 
Requirement of Notification. A disabled participant who is receiving benefits from the Plan on account of disability shall be required to notify the Administrator of any change which may cause a cessation of entitlement to receipt of such benefits. To the extent a disabled participant fails to provide immediate notice to the Administrator of any such change in status and who continues to receive benefits to which he/she is not entitled from the Plan on account of disability, the Administrator may take any action necessary to recover any amount improperly paid, including legal action or the offsetting of such amounts against future payments on account of retirement or death under the Plan, including the costs of such actions.
[Ord. 892, 10/15/2007, § 1; as amended by Ord. 931, 3/1/2010, § 1]
1. 
Preretirement Death Benefit. In the event that an actively employed participant shall die, his/her beneficiary shall be entitled to receive a lump sum benefit equal to the present value of the participant's accrued benefit, determined as of the date of death. If no beneficiary is selected, the death benefit shall be payable in a lump sum to his or her estate. If any benefits are paid pursuant to this subsection no participant, former participant, member, beneficiary or survivor of any of the foregoing will be entitled to any other benefits under this Plan.
2. 
Other Death Benefits. The surviving spouse of an actively employed participant who dies on or after April 17, 2002, before his/her pension has vested, and whose survivors are entitled to no benefits under any other sections of this Plan, or if no spouse survives or if he or she survives and subsequently dies, the child or children under the age of 18 years, or if attending college, under or attaining the age of 23 years, of a participant shall be entitled to receive repayment of his/her member contributions (including interest at 6% per annum) unless the participant has designated another beneficiary. Any person or entity receiving a return of contributions under this subsection will be entitled to no other benefits under this Plan.
3. 
Retirement Death Benefit. If a former participant who began to receive pension benefits under this Plan prior to April 17, 2002, dies, there shall be no death benefit payable from the Plan, except as may be provided for in the annuity option that was elected by the former participant at the time of his/her retirement pursuant to Plan § 1-1223.5.
4. 
Survivor Benefits for Members Who Die After Retiring or After They Are Eligible to Retire. Effective April 17, 2002, notwithstanding anything in Subsection 3 to the contrary, if a participant "retires on pension" (within the meaning of Act 30 of 2002) and dies, a monthly benefit shall be paid to the surviving spouse or if no spouse survives, of if he or she survives and subsequently dies, then the child or children under the age of 18 years if attending college, under or attaining the age of 23 years in the case of a child or children, in the amount of 50% of the monthly pension benefit the member was receiving or would have been receiving had he/she been retired at the time of his/her death. For the purposes of this section, a participant who has attained his/her normal retirement date and dies prior to retiring shall be treated as if he/she had retired on the day before his/her death. Notwithstanding anything to the contrary in this Plan, anyone receiving benefits under this subsection shall receive no other benefits under this Plan. The phrase "attending college" shall mean the eligible children are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester. This Subsection 4, insofar as Act 30 of 2002 affects the benefits available to surviving spouses, shall apply to surviving spouses whose spouse died on or before April 17, 2002, and who were not remarried as of April 17, 2002.
[Ord. 892, 10/15/2007, § 1]
1. 
Member Contributions, Defined. The term "member contribution" shall mean any amount deposited into the Plan by a participant. Contributions may be reduced or eliminated provided that any reduction or elimination of contributions is authorized on an annual basis by an ordinance or resolution by the Board. Note: See the applicable collective bargaining agreement for further details associated with member contributions, possible relief thereof and reductions in benefits as permitted by law. Member contributions shall be subject to the following provisions:
A. 
To the extent such monies are needed to avoid any member contributions to the Plan, the employer shall utilize state aid contributions that it receives due to the existence of the Plan.
B. 
When contributions are required to maintain the actuarial soundness of the Plan as determined by the Plan actuary, participants shall be required to contribute as follows: participants covered by Social Security may be required to contribute up to 5% of their compensation: and participants not covered by Social Security may be required to contribute up to 8% of their compensation.
Member contributions shall be "picked up" by the employer and shall be treated as employer contributions for federal income taxation purposes pursuant to § 414(h)(2) of the Internal Revenue Code. Notwithstanding the foregoing, contributions so picked up shall be treated as member contributions for all purposes of state and local law.
2. 
Crediting of Interest. Interest shall accrue to member contributions at the rate of 6% per annum. Such interest shall be credited from the midpoint of the year (or part of the year) when made through the date of participant's termination of eligible employment.
3. 
Withdrawal.
A. 
Member contributions, in addition to the interest accrued thereon, (hereinafter referred to collectively as the "member contribution account"), may be withdrawn from the Plan by or on behalf of a former participant only under the following circumstances:
(1) 
Where the former participant fails to complete the requirement of service specified in § 1-1223, Subsection 1A, and where the former participant fails to elect to vest in a retirement benefit to which he/she has become entitled, pursuant to § 1-1223, Subsection 1B.
(2) 
Where the participant dies without satisfying the requirements of entitlement to a death benefit, as detailed in § 1-1225, and where the retirement or disability benefit of such former participant has not yet commenced.
B. 
Where the above conditions for the withdrawal of the member contribution account have been satisfied, payment of the member contribution account shall be made to the former participant, or in the event of the former participant's death, to the former participant's beneficiary, or if a beneficiary does not exist, to the former participant's estate. Such payment shall commence on or after the first day of the calendar month coincident with or next following the date on which the former participant (1) became a former participant or (2) failed to elect vesting in a retirement benefit to which he/she had become entitled, whichever is later.
C. 
Upon the distribution of the member contribution account, the entitlement of the former participant, his/her spouse, survivors, children or his/her beneficiary to any future retirement benefit, disability benefit, or death benefit, shall cease and they shall be excluded from further participation in the Plan and they shall have no further rights therein.
[Ord. 892, 10/15/2007, § 1]
ACT 205
The Municipal Pension Plan Funding Standard and Recovery Act, Act of December 18, 1984, P.L. 1005, No. 205, as amended, 53 P.S. § 895.101 et seq.
ACT 600
The Police Pension Fund Act, Act of May 29, 1956, P.L. 1804, No. 600, as amended, 53 P.S. 767 et seq.
ACTUARY
A person who has at least five years of actuarial experience with public pension plans and who is either a member of the American Academy of Actuaries or enrolled as an actuary pursuant to the Federal Employee Retirement Income Security Act of 1974.
ADMINISTRATOR OR PLAN ADMINISTRATOR
The Township Manager. The Administrator serves pursuant to the discretion of the Board and any decision or determination of said Administrator may be reviewed by the Board with the right reserved by the Board to overrule, amend, modify, alter or change any decisions or determinations of said Administrator in such manner and to such extent as may seem proper to the Board.
BOARD
The Board of Supervisors of Ferguson Township in whom rests the responsibility for appointing the Chief Administrative Officer and for deciding and approving any matter of finance that affects, or could affect, the Plan, its participants, or beneficiaries. All powers relative to the operation and administration of the Plan shall specifically reside with the Board unless delegated pursuant to this Plan document.
CHIEF ADMINISTRATIVE OFFICER
The individual, designated by the Board, who shall have the power and authority to perform all acts and to execute, acknowledge, and deliver all instruments necessary to implement and effectuate the purpose of the Plan. Where the Board fails to designate a Chief Administrative Officer, the Chief Administrative Officer shall be the Township Manager.
CODE
The Internal Revenue Code of 1986, as amended or replaced from time to time.
COMMITTEE OR POLICE PENSION FUND COMMITTEE
An Advisory Committee consisting of a Township Supervisor, the Township Manager and two police officers selected Township Police Association established for the purpose of discussing pension related matters of concern to the Township and the members.
PLAN
The current instrument, including all amendments hereto.
PLAN YEAR
The twelve-month period beginning on January 1 and ending on December 31 of each year.
POLICY OR CONTRACT
A retirement annuity or a retirement income endowment policy (or a combination of both), or any other form of insurance contract or policy which shall be deemed appropriate with accordance with the provisions of Act 205 and P.L. 1804, as amended, 53 P.S. § 767.
TOWNSHIP
Ferguson Township and any successor which shall maintain this Plan; and any predecessor which has maintained this Plan. The Township is situated in Centre County in the Commonwealth of Pennsylvania.
TRUST OR FUND
The fund administered and established under the terms of the Plan, which fund shall include all money, property, investments, policies, and contracts standing in the name of the Plan.
TRUST AGREEMENT
The legal agreement entered into between the Township and any fiduciary that shall provide specifically for all objectives, powers, and responsibilities concerning the management of the trust's assets. If there is no trustee appointed, the Township Board of Supervisors shall be trustees.
[Ord. 892, 10/15/2007, § 1]
1. 
Authority and Duties of the Administrator. The Administrator shall have full power and authority to do whatever, in its judgment, shall be reasonably necessary to effectuate the proper administration and operation of the Plan. The interpretation or construction placed upon any term or provision of the Plan by the Administrator, or any action of the Administrator taken in good faith, shall be final and conclusive upon all parties hereto. The authority of the Administrator shall include, but shall not be limited to:
A. 
Construction of the Plan.
B. 
Determination of all questions affecting the eligibility of any employee of the Township to participate herein.
C. 
Computation of the amount and the source of any benefit payable hereunder to any participant or beneficiary, as applicable.
D. 
Authorization of any and all disbursements of benefits.
E. 
Prescription of any procedure to be followed by any participant or other person, as applicable, in filing any application or election hereunder.
F. 
Preparation and distribution of information explaining the Plan as may be required by law or as the Administrator deems appropriate.
G. 
Requisition of information necessary from the Township or any participant for the proper administration of the Plan.
H. 
Appointment and retention of any individual to assist in the administration of the Plan, including such legal, clerical, accounting, and actuarial services as it deems advisable or may be required by any applicable laws or law.
The Administrator shall have no authority 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 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 the Board.
2. 
Hold Harmless. To the full extent permitted by law, no member of the Committee, the Board, the Chief Administrative Officer, the Administrator, nor 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 Township shall, and hereby does agree to, indemnify and hold harmless the Administrator and each successor and each individual's heirs, executors and administrators, and the Administrator's delegates and appointees (other than any person or entity independent of the Township who 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/she is or may be made a party by reason of being or having been the Administrator or a delegate or appointee of the Administrator, except in matters involving criminal liability, or intentional or willful misconduct. If the Township purchases insurance to cover claims of a nature described above, then no right of indemnification shall exist 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.
3. 
Appeal Procedure. Any person whose application for benefits is denied, who questions the amount or timing of any benefit paid, or who has some other claim arising under the Plan (the "claimant"), shall first seek a resolution of such claim under the procedure hereinafter set forth.
A. 
The claimant shall first file a notice of claim with the Administrator which notice shall fully describe the nature of the claim. The Administrator shall review the claim and make an initial determination approving or denying the claim and shall mail notice of the determination within 90 days (or such other period as may be established by applicable law) from the time the application is received. Such ninety-day period may be extended by the Administrator, if special circumstances so require, for up to 90 additional days by the Administrator's delivering notice of such extension to the claimant within the first ninety-day period. Any notice hereunder shall, if it is a notice of denial, set forth:
(1) 
The specific provisions of the Plan on which the denial is based.
(2) 
An explanation of additional material or information, if any becomes necessary to perfect such claim, and a statement of why such material or information is necessary.
(3) 
An explanation of the review procedure.
B. 
Upon receipt of notice denying the claim, the claimant shall have the right to request a full and fair review by the Board of the initial determination. Such request for review must be made by written notice to the Board within 60 days of mailing of the 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. The Board shall, within 60 days after receipt of the notice requesting such review (or in special circumstances, such as where the Board 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, and shall contain specific references to the pertinent Plan provisions on which the decision is based.
C. 
Any notice of claim questioning the amount of a benefit in pay status shall be filed by the claimant with the Administrator within 90 days following the date of the first payment which would be adjusted if the claim is granted, unless the Administrator allows a later filing for good cause shown.
D. 
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. 892, 10/15/2007, § 1]
1. 
Actuarial Valuations. The actuary to the Plan shall perform an actuarial valuation at least biennially (unless the Township is applying or has applied for supplemental state assistance pursuant to Act 205, for purposes of this section, whereupon actuarial valuation reports must be made annually.) Each biennial actuarial valuation report shall be made as of the beginning of each Plan Year occurring in an odd-numbered calendar year, beginning with the year 1985. Such actuarial valuation shall be prepared and certified by an approved actuary, as such term is defined in Act 205. The expenses attributable to the preparation of any actuarial valuation report or investigation required by Act 205 or any other expense which is permissible under the terms of Act 205 and which are directly associated with administering the Plan shall be an allowable administrative expense payable from the assets of the trust. Such allowable expenses shall include, but shall not be limited to, the following:
A. 
Investment costs associated with obtaining authorized investments and investment management fees.
B. 
Accounting expenses.
C. 
Premiums for insurance coverage on fund assets.
D. 
Reasonable and necessary counsel fees incurred for advice or to defend the fund.
E. 
Legitimate travel and education expenses for officials of the Plan.
The Board, in its fiduciary role, shall monitor the services provided to the Plan to ensure that the expenses are necessary, reasonable and benefit the Plan; and, further provided, that the Administrator shall document all such expenses item by item, and where necessary, hour by hour.
2. 
Duties of the Chief Administrative Officer. The actuarial reports described above shall be prepared and filed under the supervision of the Chief Administrative Officer. The Chief Administrative Officer of the Plan shall determine the financial requirements of the Plan on the basis of the most recent actuarial report and shall determine the minimum obligation of the Township with respect to funding the Plan for a given plan year. The Chief Administrative Officer shall submit the financial requirements of the Plan and the minimum obligation of the Township to the Board annually and shall certify the accuracy of such calculations and their conformance with Act 205.
3. 
Modification of Benefits. Prior to the adoption of any provision that modifies a benefit provided hereunder, the Chief Administrative Officer shall provide to the Board a cost estimate of the proposed modification. Such estimate shall be prepared by an approved actuary, which estimate shall disclose to the Board the impact of the proposed modification on the future financial requirements of the Plan and the future minimum obligation of the Township with respect to the Plan.
4. 
Utilization of State Aid. Payments of general municipal state aid, or any other amount of state aid received pursuant to Act 205 from the Commonwealth of Pennsylvania which are received by the Township and deposited into the Fund shall be used as follows:
A. 
To reduce the amortization of the unfunded liability, or after such liability has been funded.
B. 
To apply against the annual obligation of the Township, or to the extent that the payments may be in excess of such obligation.
C. 
To reduce member contributions hereunder.
5. 
Member Contributions. See § 1-1226.
6. 
Township Contributions. Subject to any bargained for limitations or conditions such as increased member contributions or reduction of benefits, the remainder of the annual contributions required under provisions of Act 205, as determined by the Actuary to the Plan in accordance with Act 205, shall become the obligation of the Township and shall be paid into the Fund by annual appropriations.
[Ord. 892, 10/15/2007, § 1; as amended by Ord. 976, 2/19/2013, § 2]
1. 
Explanation. In recognition of the fact that the Plan must comply in form, content, and operation with certain provisions of the code, and in spite of the limited applicability of such provisions to the normal operation of the Plan, the following subsections of this section detail the limitations and parameters applicable to maintaining favorable tax treatment of funds contributed to the Plan under federal law. This section will apply to all participants, former participants, members and others receiving benefits under this Plan including those who terminated employment with the Township and/or began receiving benefits prior to January 1, 2001, except where this section specifically provides to the contrary.
2. 
Definitions. The following definitions apply for purposes of this section only:
LEASED EMPLOYEE
Effective as of January 1, 1997, any person (other than an employee of the recipient) who pursuant to an agreement between the recipient and any other person ("leasing organization") has performed services for the recipient [or for the recipient and related persons determined in accordance with Code § 414(n)(6)] on a substantially full-time basis for a period of at least one year, and such services are performed under primary direction or control by the recipient.
LIMITATION YEAR
The plan year.
3. 
Leased Employees and Independent Contractors. Leased employees and independent contractors are not eligible to participate in this Plan. Any person whom the Council does not regard as being an employee shall not be eligible to participate.
4. 
Limit on Compensation. Compensation is subject to the limitation under Code § 401(a)(17), which is $220,000 for the plan year beginning in 2006. The limit is automatically adjusted periodically, without formal amendment, for changes in the law and cost-of-living adjustments under Code § 401(a)(17).
5. 
Maximum Annual Benefit.
A. 
General Rule. Except as otherwise provided, this Plan shall at all times comply with the provisions of Code § 415 and the regulations thereunder, the terms of which are specifically incorporated herein by reference. If a benefit payable to a participant under this Plan would otherwise exceed the limit under Code § 415, the benefit will be reduced to the maximum permissible benefit.
B. 
Effective Date. If there is more than one permissible effective date for any required change in the Code § 415(b) provisions, then the change shall be effective as of the latest permissible effective date; however, any adjustment in the dollar limit under Code § 415(b)(1)(A), whether required or permissible, shall take effect automatically as of the earliest permissible effective date. The "applicable mortality table" in Rev. Rul. 2001-62 effective from December 31, 2002, through December 31, 2007. Effective as of January 1, 2008, the "applicable mortality table" and "applicable interest rate" are found in Rev. Rul. 2007-67.
C. 
No Reduction in Accrued Benefits. Notwithstanding the above, no change in the limits under this section shall reduce the benefit of any participant.
D. 
Multiple Plans. If a participant also participates in one or more other plans that are required to be aggregated with this Plan for purposes of determining the limits under Code § 415(b) or (e), and if the aggregated benefits would otherwise exceed the limit under Code § 415(b) or (e), then benefits shall be reduced first under this Plan. (Historical Note: Code § 415(e) applied for limitation years beginning prior to 2000.)
E. 
Mandatory Contributions. Participant contributions are annual additions, and any benefit attributable to participant contributions is not included in the benefit subject to the limits of Code § 415(b) or (e). This paragraph does not apply to contributions "picked-up" in accordance with Code § 414(h).
F. 
Permissive Service Credit. Effective as of January 1, 1998, if a participant makes a purchase of permissive service credit [within the meaning of Code § 415(n)] under the Plan, the benefit derived from the contributions made to purchase the service credit shall be treated as part of the benefit subject to the limitations under this subsection.
6. 
Limit on Annual Additions.
A. 
Annual Additions. Except as otherwise provided, annual additions (which include participant contributions) under this Plan shall at all times comply with the provisions of Code § 415(c) and the regulations thereunder, the terms of which are specifically incorporated herein by reference. If an annual addition would otherwise exceed the limit under Code § 415(c), the excess annual addition will be eliminated in accordance with methods permitted under Rev. Proc. 2008-50 (Rev. Proc. 2006-27 prior to 2009) or its successor.
B. 
Multiple Plans. If a participant also participates in one or more other plans that are required to be aggregated with this Plan for purposes of determining the limits under Code § 415(c), and if the annual additions would otherwise exceed the limit under Code § 415(c), annual additions will first be reduced under the other plan. If there is more than one other plan, annual additions will first be reduced under the Plan with the greatest amount of annual additions.
C. 
Effective Date. The limits under which Code § 415(c) are adjusted periodically in accordance with changes in the law or cost of living adjustments without the need for a plan amendment. If there is more than one permissible effective date for any required change relating to Code § 415(c), then the change shall be effective as of the earliest permissible effective date.
D. 
415(c) Compensation. For the purposes of this paragraph, "compensation" includes only those items specified in Treas. Reg. § 1.415(c)-2(b)1 or (2) and excludes all items listed in Treas. Reg. § 1.415(c)-2(c), the terms of which are specifically incorporated herein by reference. Compensation included in this definition does not fail to be "compensation" [within the meaning of Code § 415(c)(3)] merely because it is paid after the employee's severance from employment with the Township, provided the compensation is paid by the later of 2.5 months after severance from employment with the Township or the end of the limitation year that includes the date of severance from employment with the Township. Effective as of January 1, 2009, to the extent required by the Heroes Earnings Assistance Tax Relief Tax Act of 2008 (HEART Act), differential wage payments shall be included in compensation.
7. 
Direct Rollovers.
A. 
This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
B. 
For purposes of this subsection, the following definitions shall apply:
(1) 
An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: (a) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of 10 years or more; (b) any distribution to the extent such distribution is required under Code § 401(a)(9); (c) the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and (d) effective as of January 1, 2002, any hardship distribution. Effective as of January 1, 2002, clause (c) does not apply to any after-tax participant contributions that are paid to an individual retirement account or annuity described in Code § 408(a) or (b), or to a qualified defined contribution plan described in Code § 401(a) or 403(a) or effective as of January 1, 2007, any § 403(b) annuity contract that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.
(2) 
An eligible retirement plan is an individual retirement account described in Code § 408(a), an individual retirement annuity described in Code § 408(b), an annuity plan described in Code § 403(a), or a qualified trust described in Code § 401(a), that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, prior to January 1, 2002, an eligible retirement plan was an individual retirement account or individual retirement annuity. Effective as of January 1, 2002, an "eligible retirement plan" includes an annuity contract described in Code § 403(b) and an eligible plan under Code § 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan. Effective January 1, 2008, a Roth IRA is an "eligible retirement plan."
(3) 
A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code § 414(p), are distributees with regard to the interest of the spouse or former spouse.
(4) 
A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee.
C. 
Non-spouse Beneficiaries. Effective as of January 1, 2007, if a beneficiary who is not a surviving spouse is entitled to receive what would otherwise be an "eligible rollover distribution," the beneficiary may, in accordance with Code § 402(c)(11), make a trustee-to-trustee transfer of that amount to an IRA or individual retirement annuity (other than an endowment contract); provided, that:
(1) 
The transfer is made not later than the end of the fourth year after the year of the participant's death.
(2) 
The account or annuity to which the amount is transferred is treated as an inherited IRA or individual retirement annuity in accordance with Code § 408(d)(3)(C).
8. 
Minimum Required Distributions.
A. 
Notwithstanding any provision in this Plan to the contrary, the distribution of a participant's benefits shall be made in accordance with the requirements and conditions of and shall otherwise comply with Code § 401(a)(9). For purposes of complying with Code § 401(a)(9), life expectancies shall be determined in accordance with the 1987 proposed regulations prior to January 1, 2003 and with the final regulations (§§ 1.401(a)(9)-1 through 1.401(a)(9)-9) on or after January 1, 2003.
B. 
Effective as of January 1, 1997, distribution of a participant's benefits shall begin not later than April 1 of the calendar year following the later of:
(1) 
The calendar year in which the participant attains age 70 1/2.
(2) 
The calendar year in which the participant retires.
Distributions must be made over a period not exceeding the life of the participant or the joint lives a participant and his/her beneficiary.
C. 
Distributions to a participant and his/her beneficiaries shall only be made in accordance with the incidental death benefit requirements of Code § 401(a)(9)(G) and the regulations thereunder.
D. 
This subsection does not authorize the payment of any benefit in any form not permitted under another provision of the Plan.
9. 
Approved Domestic Relations Orders. Upon approval by the Plan Administrator of a domestic relations order as an "approved domestic relations order" all rights and benefits provided to a participant under this Plan shall be subject to an "approved domestic relations order" to the extent provided by the laws of the Commonwealth of Pennsylvania. In no event shall a domestic relations order be approved which expands the rights and benefits otherwise available to the participant under this Plan.
10. 
Credit for Qualified Military Service. Effective as of December 12, 1994, notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance Code § 414(u).
11. 
Vesting upon Plan Termination. Upon the termination of this Plan, or complete discontinuance of contributions [within the meaning of pre-ERISA Code § 401(a)(7)] to this Plan, each employee as of the date of such termination or discontinuance shall become vested to the extent that the Plan is funded.
12. 
Consent for Lump-Sum Distributions. Effective January 1, 2006, notwithstanding any other provision of the Plan, any distribution to a participant made prior to the earlier of age 62 or normal retirement age of an amount in excess of $1,000 that is an eligible rollover distribution as set forth in the Plan and the code shall be made only upon consent of the participant.
13. 
Heroes Earnings Assistance Tax Relief Act of 2008 (HEART Act). Effective for deaths occurring while performing qualified military service [as defined in Code § 414(u)] on or after January 1, 2007, the Plan will provide retirement benefits and service credit to the extent that the Plan is required and mandated by the Heart Act to provide said benefits and/or service credit.
[Ord. 892, 10/15/2007, § 1]
1. 
Amendment. The Board may amend this Plan at any time or from time to time by ordinance or resolution, provided that:
A. 
No amendment shall deprive any member or beneficiary, as applicable, of any of the benefits to which he/she is entitled under this Plan pursuant to state law.
B. 
No amendment shall provide for the use of funds or assets held under this Plan other than for the benefit of eligible employees or alternate payees, and no funds contributed to the Plan or assets of the Plan shall, except as provided below, ever revert to or be used or enjoyed by the Township except as set forth below.
C. 
No amendment to the Plan which provides for a modification of one or more benefits shall be made unless an estimate of cost has been prepared and presented to the Board.
2. 
Termination of the Plan. It is the present intention of the employer to maintain this Plan indefinitely. Nevertheless, the Board shall have the power to terminate this Plan in its entirety at any time by an instrument in writing executed in the name of the Township.
3. 
Automatic Termination of Contributions. Subject to the provisions of Act 205 governing financially distressed municipalities, the liability of the Township to make contributions to the pension fund shall automatically terminate upon liquidation or dissolution of the Township, upon its adjudication as a bankrupt or upon the making of a general assignment for the benefit of its creditors.
4. 
Distribution upon Termination. All assets attributable to the terminated Plan shall be distributed and disposed of in accordance with the provisions of applicable law and the terms of any instrument adopted by the Township which effects such termination.
5. 
Residual Assets. If all liabilities to vested members and any others entitled to receive a benefit under the terms of the Plan have been satisfied and there remain any residual assets in the pension fund, such residual assets remaining shall be returned to the Township insofar as such return does not contravene any provision of law, and any remaining balance, in excess of employer contributions and related earnings, shall be returned to the commonwealth.
6. 
Exclusive Benefit Rule. In the event of the discontinuance and termination of the Plan as provided herein, the Township shall dispose of the pension fund in accordance with the terms of the Plan and applicable law; at no time prior to the satisfaction of all liabilities under the Plan shall any part of the corpus or income of the pension fund, after deducting any administrative or other expenses properly chargeable to the pension fund, be used for or diverted to purposes other than for the exclusive benefit of the members in the Plan, their beneficiaries or their estates.
[Ord. 892, 10/15/2007, § 1]
1. 
Operation of the Pension Fund. The Board 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 of Pennsylvania 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 Township, to pay the expenses of administering the Plan pursuant to authorization by the Township. The Township intends the Plan to be permanent and for the exclusive benefit of its employees. It expects to make the contributions to the pension fund required under the Plan. The Township shall not be liable in any manner for any insufficiency in the pension fund; benefits are payable only from the pension fund, and only to the extent that there are monies available therein. The pension fund will consist of all funds held by the Township under the Plan, including contributions made pursuant to the provisions hereof and the investments, reinvestment 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 Township has exclusive authority and discretion to manage and control the pension fund assets. The Township may, however, appoint a trustee, custodian and/or investment manager, at its sole discretion.
2. 
Powers and Duties of the Township. With respect to the pension fund, the Township 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.
A. 
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), and shall include the right to hold funds on a temporary basis in accounts or investments that do not bear interest.
B. 
To invest and reinvest the principal and income of the fund and keep said fund invested, without distinction between principal and income, in securities which are at the time permitted investments for fiduciaries under the Pennsylvania Fiduciaries Investment Act, or as the same may be subsequently modified or amended.
C. 
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; to grant options for the purchase or exchange thereof.
D. 
To consent to and participate in any plan of reorganization, consolidation, merger, extension or other similar plan affecting property held in the fund; to consent to any contract, lease, mortgage, purchase, sale or other action by any corporation pursuant to any such plan.
E. 
To exercise all conversion and subscription rights pertaining to property held in the fund.
F. 
To exercise all voting rights with respect to property held in the fund and in connection therewith to grant proxies, discretionary or otherwise.
G. 
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.
H. 
In addition to the foregoing powers, the Township 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 Township may deem necessary to administer the pension fund.
I. 
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 Township, provided that the assets of each respective plan shall be accounted for and administered separately.
J. 
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 or to invest in a group contract or other funding arrangement. 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.
K. 
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 Township, such trustee shall make such distribution only at the direction of the Township.
L. 
To compromise, contest, arbitrate, enforce or abandon claims and demands with respect to the Plan.
M. 
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.
N. 
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; 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.
O. 
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 advice 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 Township 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 such persons or firms were prudently chosen by the Township, taking into account the interests of the members and beneficiaries and with due regard to the ability of the persons or firms to perform their assigned functions.
P. 
To retain the services of one or more persons or firms for the management of (including the 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 laws of more than one state; in such event, the employer 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 nor 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 Township appoints a trustee, the trustee shall not be permitted to retain such an investment manager except with the express written consent of the Township.
3. 
Common Investments. The Township shall not be required to make separate investments for individual members or to maintain separate investments for each member's account, but may invest contributions and any profits or gains therefrom in common investments.
4. 
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 Township and the trustee, unless such compensation is prohibited by law. Such compensation, and all expenses reasonably incurred by the trustee in carrying out his/her functions, shall constitute a charge upon the Township or the pension fund, which may be executed at any time after 30 days' written notice to the Township. The Township 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 reimburse themselves for the payment thereof, from the pension fund.
5. 
Periodic Accounting. 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 such additional dates as requested by the Township, 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.
6. 
Value of the Pension Fund. 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 Township or its appointed trustee, whose decisions shall be final and conclusive and binding on all parties hereto, the members, spouses, children, survivors and beneficiaries and their estates. In making any such determination, the Township 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. 892, 10/15/2007, § 1]
1. 
Plan Not a Contract of Employment. No employee of the Township, nor anyone else, shall have any rights whatsoever against the Township or the Administrator as a result of this Plan, except those rights expressly granted to them hereunder. Nothing herein shall be construed to give any employee the right to remain an employee of the Township.
2. 
Gender and Number. For purposes of the Plan and wherever plainly necessitated by the person or context, the masculine shall be read for the feminine, and the singular shall be read for the plural.
3. 
Expenses. To the extent permitted by state law, all expenses related to the operation and administration of the fund and Plan shall be paid from the assets of the fund.
4. 
Construction. The validity of the Plan or any of its provisions shall be determined and construed pursuant to the laws of the Commonwealth of Pennsylvania, the federal government, and the agencies thereof.
5. 
Severability of Provisions. In the event that any provision, section, subsection, paragraph, sentence, clause, or other part of the Plan shall be held to be invalid, such invalidity shall not affect or impair any remaining provisions, sections, subsections, paragraphs, sentences, clauses, or other parts of the Plan.
6. 
Headings. The headings and subheadings employed within the current document have been inserted for convenience of reference and are to be ignored in the construction of the provisions hereof.
7. 
Incapacity of Member. If any member shall be physically or mentally incapable of receiving or acknowledging receipt of any payment of benefits hereunder, the Administrator, upon the receipt of satisfactory evidence that such member is incapacitated to the aforesaid extent and that another person or institution maintains him/her, may provide for such payment of benefits hereunder to such person or the institution maintaining him/her, and any such payments so made shall be deemed for every purpose to have been made to such member.
8. 
Protective Clause Relative to Administration. Subject to the provisions of all laws applicable hereto, and unless otherwise specifically required, no past, present, or future officer of the Township shall be personally liable to any participant, beneficiary, or other person under any provision of the Plan.
9. 
Sole Benefit. The income and principal of the Plan are for the sole use and benefit of the members covered hereunder and, to the extent permitted by law, shall be free, clear and not in any way liable for debts, contracts or agreements and from all claims and liabilities now or hereafter incurred by any member, beneficiary, or alternate payee.
10. 
Benefits Payable from Other Plans. The pension or retirement benefits payable hereunder for any month shall be reduced by any pension benefits from pension plans heretofore established by a private organization or association for the members, but only to the extent that the commonwealth or the Township shall have contributed to such pension plan monies raised by taxation. If the commonwealth or the Township shall have contributed monies raised by taxation to a pension plan established by a private organization or association for the members, the pension benefits shall be used to reduce or offset pension or retirement benefits paid hereunder only by that proportion of the total pensions payable by virtue of the assets attributable to contributions of monies raised by taxation bears to total assets of said pension plan.
11. 
Reversion of Contributions. If a contribution is made by the Township by mistake of fact, the contribution may be returned to the Township within one year after the payment of the contribution.
12. 
Spendthrift and Assignment. The pension payments herein provided for shall not be subject to attachment, execution, levy, garnishment or other legal process, and shall be payable only to the member, his/her survivors or his/her designated beneficiary, or alternate payee and shall not be subject to assignment or transfer except as provided in Subsection 10 hereof.
13. 
Headings. Any headings or subheadings in this Plan are inserted for convenience of reference only and are to be ignored in the construction of any provisions hereunder.
[Added by Ord. 1025, 12/5/2016]
1. 
A participant with 20 or more years of service who terminates employment prior to reaching normal retirement date and who files written application for an early retirement benefit with the Plan Administrator is eligible for the early retirement benefit. The early retirement benefit shall become effective as of the date the application is filed with the Plan Administrator or the date designated on the application, whichever is later, and shall be the actuarial equivalent of a partial superannuation retirement benefit calculated as follows:
A. 
A partial superannuation retirement benefit shall be determined by applying the percentage that the member's years of service bear to the years of service that the member would have rendered had the member continued to be employed until his/her superannuation retirement date to the gross pension amount calculated using the gross pension amount calculated using the monthly average during the appropriate period prior to his/her termination of employment.
B. 
The actuarial equivalent of the partial superannuation retirement benefit shall be determined by actuarially reducing the partial superannuation retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the date on which the member would have completed superannuation age and service requirements. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission under the Act of December 18, 1984 (P.L. 1005, No. 205), known as the "Municipal Pension Plan Funding Standard and Recovery Act."[2]
[2]
Editor's Note: See 53 P.S. § 895.101 et seq.
2. 
The entire provisions of Sections 1 and 2 of Act 24 of 1998[3] are hereby incorporated by reference thereto, as though fully set forth at length herein in this § 1-1234.
[3]
Editor's Note: See 53 P.S. § 771.
[1]
Editor's Note: This section is effective for employment terminations on or after 1-1-2017.