[Ord. 00010, 12/10/2001, Art. I[1]]
The following terms wherever used or referred to in this Part shall have the following meaning, except in those instances where the context indicates otherwise:
ANNIVERSARY DATE
The first day of each year, including the year in which this Plan is effective.
BOROUGH
The Borough of Akron, Lancaster County, Pennsylvania.
COMMITTEE
A Committee of Council members and Borough residents appointed by the Borough Council President, which shall have the responsibility to administer the terms and conditions of the Plan and this Part.
EMPLOYEE
A full time employee of the Borough of Akron except members of the police force. A "full-time employee" is an employee who customarily works an average of at least 35 hours in a week and 40 such weeks in a year.
GROSS WAGES
All compensation of an employee while they are a participant, including base wages, overtime and bonuses only, and excluding, among other things, workman's compensation, unemployment compensation, disability benefits, and the like.
NORMAL RETIREMENT DATE
The first day of the month coincident with, or following the attainment of participant's 60th birthday, or the first day coincident with or following the completion of six years of participation, whichever is later.
PARTICIPANT
Any employee as defined herein.
PAST SERVICE
Those years or months which a participant worked as an employee in service to the Borough prior to the effective date of this Part.
PLAN
The Akron Borough Nonuniformed Pension Plan.
SERVICE TO THE BOROUGH
Full-time employment by the Borough, including leaves of absence granted by Council and absences due to illness, disability and vacation leaves, provided the employee returns to the employ of the Borough within the time his employment rights are protected by law.
[1]
Editor's Note: Former Ch. 1, Part 6A, Police Pension, adopted by Ord. 314, 10/4/1982, was repealed by Ord. No. 21-00104, 4/12/2021. Former Ch. 1, Parts 6B, Nonuniformed Pension Plan, and 6C, Deferred Compensation Plan, were redesignated as Parts 6A and 6B, respectively. Former §§ 1-641 through 1-660 were renumbered as §§ 1-601 through 1-620, respectively. Former §§ 1-671 through 1-678 were renumbered as §§ 1-631 through 1-638, respectively.
[Ord. 00010, 12/10/2001, Art. II, § 2]
The effective date of the plan is January 1, 2001. The plan year is the period of 12 consecutive months beginning on a January 1 and ending on the next December 31.
[Ord. 00010, 12/10/2001, Art. II, § 3]
All present full time employees of the Borough, except police officers, employed on January 1, 2000, are eligible for membership and shall become members of the plan. All future full-time employees, except police officers, are eligible for membership and shall become members of the plan on the date they commence employment as a Borough employee.
[Ord. 00010, 12/10/2001, Art. II, § 4]
Except as provided in § 1-646, any employee who leaves the service of the Borough before retirement under this plan must qualify as a member upon reentering its service as if he/she had not previously been an employee.
[Ord. 00010, 12/10/2001, Art. II, § 5]
The plan shall be financed by periodic payments made by the Borough, as are set from time to time by resolution of the Council. The Committee shall invest and reinvest the principal and income of the fund and keep the fund invested, without distinction between principal and income, in such lawful securities, annuities, or other investments as the Committee shall deem advisable. Contributions shall be made at such time as Council shall provide, but no later than September of the year following the year in which the contribution is earned.
[Ord. 00010, 12/10/2001, Art. II, § 6; as amended by Ord. 00018, 3/10/2003, § 6; and by Ord. 00039, 11/12/2007, § 2]
At the end of each year, the Borough shall reconcile the total amount of state aid allocated and municipal contributions made to the Nonuniformed Pension Plan with the plan's defined contribution costs for that year. Any excess contributions will be transferred to the Akron Borough Police Pension Plan as soon as possible.
[Ord. 00010, 12/10/2001, Art. II, § 7]
Participants who were employees on the effective date of the plan shall receive vesting, contribution, or other credit for past service to the Borough prior to January 1, 2001.
[Ord. 00010, 12/10/2001, Art. II, § 8]
A participant shall have a vested interest in the contributions made on his behalf by the Borough according to years of qualified participation in the plan, according to the following schedule:
Full Years of Participation
Percentage of Vested Interest in Contributions
0 through 1
None
1
20
2
40
3
60
4
80
5
100
[Ord. 00010, 12/10/2001, Art. II, § 9]
Upon retirement, a participant shall receive as retirement benefits an amount equal to the total of all employer contributions to the plan together with all earnings thereon, as shown in the participant's account balance at the time of retirement, adjusted according to the vesting schedule set forth in § 1-649; provided, however, that no retirement benefits need be paid until actual retirement.
[Ord. 00010, 12/10/2001, Art. II, § 10]
1. 
If a participant dies while an employee of the Borough, his beneficiaries shall be entitled to receive the full amount of employer contributions, together with all earnings thereon, as shown in the participant's account balance at the time of death, as adjusted according to the vesting schedule set forth in § 1-649.
2. 
If a former employee whose participation has ceased under § 1-653 dies, his beneficiaries shall be entitled to receive whatever benefits said former employee would be entitled to receive under § 1-654.
3. 
Each participant may designate in writing a beneficiary or beneficiaries for any death benefits at the time he enters the plan. In the absence of the designation of beneficiary, any death benefits payable shall be paid to the participant's estate.
[Ord. 00010, 12/10/2001, Art. II, § 11]
If a participant becomes totally disabled, he shall be entitled to receive the same benefits payable under § 1-651 as if he had died while an employee of the Borough. A participant shall be deemed totally disabled for the purpose of this section only after he has been unable to perform any work for the Borough for a period of 35 consecutive weeks, and only if he submits to the Borough a certificate of disability from the Social Security Administration.
[Ord. 00010, 12/10/2001, Art. II, § 12; as amended by Ord. 00018, 3/10/2003, § 2; and by Ord. 00039, 11/12/2007, § 2]
Cessation of a participant's employment with the Borough prior to the normal retirement date for reason other than death or total disability shall terminate the participant's membership in the plan, subject, however, to the participant's vested interest. Forfeitures of any amount contributed by the Borough shall be used to reduce the Borough's current year contribution requirements in the year of the forfeiture, and shall not increase the interest of the remaining members of the Akron Borough Nonuniformed Pension Plan. Any excess contributions for the year resulting from forfeitures shall be handled in accordance with § 1-647.
[Ord. 00010, 12/10/2001, Art. II, § 13; as amended by Ord. 00018, 3/10/2003, § 3]
Former employees whose participation in the plan has ceased pursuant to § 1-653 hereof, shall be entitled to receive, upon 90 days advance written notice given by such former employee or its authorized representative to the Borough Secretary, a total of all vested employer contributions to the plan, together with all earnings thereon as shown on the participant's account balance at the time immediately prior to receipt of funds from the plan. Following said ninety-day notice, the Borough shall, as soon as can be reasonably accomplished thereafter, provide for the aforesaid distribution."
[Ord. 00010, 12/10/2001, Art. II, § 14]
A participant, eligible to retire at 60 years of age, may continue in the employ of the Borough after his normal retirement date. No benefits hereunder shall be received until actual retirement. The employer shall continue to make contributions until the time of actual retirement.
[Ord. 00010, 12/10/2001, Art. II, § 15]
It is the expectation of the Borough that it will continue the plan indefinitely and make the required payments of it's contributions hereunder, but the continuance of the plan is not assumed as a contractual obligation of the Borough and the right is reserved by the Borough at any time to reduce or discontinue its contributions hereunder.
[Ord. 00010, 12/10/2001, Art. II, § 16]
1. 
Upon termination of the plan or upon complete discontinuance of contributions by the Borough, the plan funds shall be distributed as follows:
A. 
First, all retirement, death, and disability benefits then payable shall be paid to participants entitled thereto.
B. 
Second, benefits shall be paid to all participants under § 1-650 as though they had retired with their then percentage vested benefits immediately prior to termination of the plan.
C. 
Third, all remaining funds shall be paid into the Borough General Fund.
[Ord. 00010, 12/10/2001, Art. III, § 1]
The plan is created for the exclusive benefit of the employees of the Borough and shall be interpreted in a manner consistent with their being employees' trusts.
[Ord. 00010, 12/10/2001, Art. III, § 2]
The plan is not to be construed as creating or changing any contract of employment between the Borough and its employees and the Borough retains the right to deal with its employees and to terminate their employment at any time to the same extent as though these plans had not been created. Nothing in these plans shall be construed as limiting the right of the employer to change the compensation, salary, or remuneration of any employee at any time.
[Ord. 00010, 12/10/2001, Art. III, § 3]
The costs and expenses of administering this plan shall be born solely by the Borough, and shall not be charged against plan finances.
[Ord. 06-12-95B, 6/12/1995, § 1]
There is hereby established a deferred compensation plan to be known as the "Akron Borough Nonuniformed Employees Deferred Compensation Plan," which shall be made available to all full-time nonuniformed employees of the Borough. This plan will set forth the obligations of the Borough and the rights and privileges of the participants with respect to his or her deferred compensation.
[Ord. 06-12-95B, 6/12/1995, § 2]
Eligible individuals may voluntarily elect to defer any portion of their future unearned compensation by entering into a participation (joinder) agreement, subject to the minimum and maximum amounts, as specified in this agreement.
[Ord. 06-12-95B, 6/12/1995, § 3]
This plan shall become operative on July 1, 1995, Individuals who desire to participate in the plan during the remainder of the 1995 calendar year shall elect to do so on or before the last pay period of 1995.
[Ord. 06-12-95B, 6/12/1995, § 4]
It is the intention of said plan that the remittances made to any carrier for the purchase of said contracts not to be considered as current income to the participants for federal income tax purposes. Therefore, the Borough shall have all ownership rights to such contracts which shall not be held in any way as collateral security for the purposes of fulfilling the obligations of the Borough, but shall be held as a general, unrestricted asset.
[Ord. 06-12-95B, 6/12/1995, § 5]
This plan is revocable at the discretion of Borough Council by adopting a revocation ordinance and no person shall have a vested right to the continuation of the plan at any time.
[Ord. 06-12-95B, 6/12/1995, § 6]
Borough Council hereby authorizes the execution of the deferred compensation administrative agreement set forth between the Borough of Akron and the Aetna Life Insurance and Annuity Company. Hereafter the Borough is authorized to enter into other agreements from time to time, as the Borough Council shall (by Resolution) see fit.
[Ord. 06-12-95B, 6/12/1995, § 7]
The Borough hereby authorizes the Chairman of the Personnel Committee and the Borough Secretary as the two members of the Deferred Compensation Plan Committee and to act on behalf of the Borough Council with respect to the purchase of contracts and to formulate rules and procedures necessary to carry out the terms of the plan.
[Ord. 06-12-95B, 6/12/1995, § 8]
The Borough hereby adopts the Deferred Compensation Plan pursuant to § 457 of the Internal Revenue Code of 1986, as amended.