The following words and phrases as used herein shall have the meanings set forth in this section, unless a different meaning is plainly required by the context:
(a) “Accrued benefit” shall mean, as of any given computation date, the participant’s monthly benefit determined in accordance with Section 280.31 calculated on the basis of final monthly average compensation determined as of such date and multiplied by a fraction, the numerator of which shall be the participant’s years of aggregate service as of the determination date and the denominator of which shall be the years of aggregate service the participant would complete if the participant remained in employment until attainment of normal retirement age. In no event, however, shall the fraction exceed one. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation, provided under Section 280.41. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof.
(b) “Accumulated contributions” shall mean the total amount contributed by any participant to this plan or its predecessor by way of payroll deduction or otherwise, plus interest credited at the rate of five percent per annum. Interest shall be credited annually in the form of a compound interest rate from the first day of the plan year coincident with or next following the date on which the contributions were paid to the first day of the month preceding the date on which a distribution of accumulated contributions under Sections 280.71 or 280.81 shall be paid or payment of benefits shall commence.
(c) “Act” shall mean the Municipal Pension Plan Funding Standard and Recovery Act which was enacted as Act 205 of 1984, as amended. 53 P.S. Sec. 895.101 et seq.
(d) “Actuarial equivalent” shall mean two forms of payment of equal actuarial present value on a specified date. The actuarial present value shall be determined by use of the UP-1984 Group Annuity Mortality Table and seven percent interest unless otherwise specifically provided herein.
(e) “Actuary” shall mean the person, partnership, association, or corporation which at any given time is serving as actuary; provided that such actuary must be an “approved sanctuary” as defined in the Act.
(f) “Aggregate service” shall mean the total period or periods of the participant’s employment with the employer whether or not interrupted. Notwithstanding the preceding sentence, should any such participant receive a distribution of accumulated contributions with respect to a period of employment for which employee contributions are required under the plan, or fail or refuse to pay required employee contributions for a period of employment, such period of employment shall not be included in aggregate service thereafter. At the commencement of the next period of employment, a participant may repay to the Fund the amount of a distribution of accumulated contributions with interest and thereafter receive credit for such aggregate service. For purposes of this definition, interest shall accrue as of the date the employee receives a distribution of accumulated contributions and shall be computed at the same rate and in the same manner as described in subsection (b) hereof.
(g) “Authorized leave of absence” shall mean a leave of absence granted in writing by the employer for reasons including, but not limited to, accident, sickness, pregnancy, temporary disability, education, training, jury duty, or such other reasons as may necessitate authorized leave from active employment.
(h) “Beneficiary” shall mean the person or entity designated by the participant to receive such benefits as may be due hereunder upon the death of the participant. In the event that a participant does not designate a beneficiary or the beneficiary does not survive the participant, the beneficiary shall be the surviving spouse, or if there is no surviving spouse, the issue, per stirpes, or if there is no surviving issue, the estate; but if no personal representative has been appointed, to those persons who would be entitled to the estate under the intestacy laws of the Commonwealth of Pennsylvania if the participant had died intestate and a resident of Pennsylvania.
(i) “Board” shall mean the Board of Commissioners of the Township of Lawrence Park.
(j) “Chief Administrative Officer” shall mean the person designated by the Township who has the primary responsibility for the execution of the administrative affairs for the plan.
(k) “Code” shall mean the Internal Revenue Code of 1986, as amended.
(l) “Committee” shall mean the Pension Plan Committee as more fully described in Section 280.91 which may be appointed by the Board to administer the terms of the plan.
(m) “Compensation” shall mean the total pay of the employee, whether salary or hourly wages, paid by the employer to the employee for employment. Compensation shall be limited on an annual basis to the amount specified for government plans pursuant to Code Section 401(a)(17), as adjusted under Code Section 415(d).
(n) “Deferred vested participant” shall mean a participant who has completed at least ten years of service, who has separated from employment for reasons other than retirement, death or disability, and who has elected to receive a vested retirement benefit pursuant to Section 280.82 to commence at a later date.
(o) “Early retirement age” shall mean the date on which a participant has completed at least ten years of service with the employer and has attained age fifty-five.
(p) “Early retirement date” shall mean the first day of the month coincident with or next following the date on which a participant who has attained early retirement age ceases employment and chooses to commence receipt of retirement benefits prior to the normal retirement date.
(q) “Employee” shall mean any individual employed by the employer on a regular, full-time basis (regularly scheduled to work at least thirty-five hours per week), who is not a police officer and who is not eligible to participate under the provisions of any other pension plan sponsored by the employer.
(r) “Employer” shall mean the Township of Lawrence Park, Erie County, Pennsylvania.
(s) “Employment” shall mean any period of time for which an employee is directly or indirectly compensated or entitled to compensation by the employer for the performance of duties as an employee, including any period of authorized leave of absence. Employment shall exclude any period of time during which services are performed as an independent contractor on a contractual or fee basis. Employment shall also include any period of qualified military service as determined under the requirements of Chapter 43 of Title 38, United States Code, provided that the participant returns to employment following such period of qualified military service, and the participant makes payment to the plan in an amount equal to the participant contributions that would otherwise have been paid to the plan during such period of qualified military service. The amount of participant contributions shall be based upon an estimate of the compensation that would have been paid to the participant during such period of qualified military service as determined by the average compensation paid to the participant during the twelve months immediately preceding the period of qualified military service. The amount of participant contributions so calculated must be paid into the plan before the end of the period that begins on the date of re-employment and ends on the earlier of the date that ends the period that has a duration of three times the period of qualified military service, or the date that is five years after the date of re-employment.
(t) “Final monthly average compensation” shall mean the compensation earned by the participant for services rendered as an employee in employment during the consecutive thirty-six months preceding retirement or other termination of employment, divided by thirty-six. Final monthly average compensation shall exclude extra or additional forms of remuneration such as amounts paid as allowance or reimbursement for expenses, payments made by the employer to this or any other employee welfare or benefit plans on behalf of its employees (other than deductions from an employee’s remuneration which is reclassified as an employer payment) and amounts paid as lump sums for back pay damage awards or settlements other than to the extent that such amounts are credited to periods of time when they would otherwise have accrued or been earned such that no amounts are credited in a manner which would result in duplication of remuneration for any particular period of time.
(u) “Insurer” or “insurance company” shall mean a legal reserve life insurance company authorized to do business in the Commonwealth of Pennsylvania.
(v) “Late retirement date” shall mean the first day of the month coincident with or next following the date on which a participant shall retire from employment which occurs after the normal retirement date.
(w) “Minimum municipal obligation” shall mean the minimum obligation of the municipality as determined by the actuary pursuant to provisions of the Act.
(x) “Normal retirement age” shall mean the date on which the participant has attained age sixty. For participants hired on or after February 13, 2002, the “normal retirement age” shall be the attainment of age sixty and the completion of twenty-five years of service.
(y) “Normal retirement date” shall mean the first day of the month coincident with or next following the attainment of normal retirement age.
(z) “Notice” or “election” shall mean a written document prepared in the form specified by the Plan Administrator. If such notice or election is to be provided by the employer or the Plan Administrator, it shall be mailed in a properly addressed envelope, postage prepaid, to the last known address of the person entitled thereto, on or before the last day of the specified notice or election period. If such notice or election is to be provided to the employer or the Plan Administrator, it must be received by the recipient on or before the last day of the specified notice or election period.
(aa) “Participant” shall mean an employee who has met the eligibility requirements to participate in the plan as provided in Section 280.10 and who has not for any reason ceased to be a participant hereunder.
(bb) “Pension Fund” or “Fund” shall mean the 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.
(cc) “Plan” shall mean the plan set forth herein, as amended from time to time and designated as the Lawrence Park Township Non-Uniformed Employees’ Pension Plan.
(dd) “Plan Administrator” shall mean the Committee or individual appointed by the Board for the purpose of supervising and administering the provisions of the plan. In the event that no such appointment is made, the Plan Administrator shall be the Board.
(ee) “Plan year” shall mean the twelve-month period beginning on January 1 and ending on December 31 of each year.
(ff) “Policy” or “contract” shall mean a retirement annuity or retirement income endowment policy (or a combination of both), or any other form of insurance contract or policy which shall be deemed appropriate in accordance with the provisions of applicable law.
(gg) “Restatement date” shall mean December 31, 2002, the date upon which this amendment and restatement of the plan becomes effective.
(hh) “Total and permanent disability” shall mean a condition of physical or mental impairment due to which a participant is unable to perform any duties of employment and in the opinion of a physician acceptable to the Plan Administrator such condition is permanent for the remainder of the life of the participant.
(ii) “Year of service” shall mean each period of twelve months of aggregate service. Years of service shall be expressed as full years and completed months based upon the number of completed months.