HomeMy WebLinkAbout08-2375LINDA F. WITMER
Plaintiff
VS.
UPPER ALLEN TOWNSHIP,
Defendant
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION -,LAW
: 2008 - X3 7 S L u `?'e1ti.
DECLARATORY JUDGMENT ACTION
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served, by entering a written appearance personally or by
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Cumberland County Bar Association
32 South Bedford Street
Carlisle, PA 17013
Telephone: (717) 249-3166
LINDA F. WITMER : IN THE COURT OF COMMON PLEAS
Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION - LAW
VS. 2008
UPPER ALLEN TOWNSHIP, DECLARATORY JUDGMENT ACTION
Defendant
COMPLAINT
AND NOW, comes the Plaintiff, Linda F. Witmer, by her
attorney, Dale F. Shughart, Jr., Esquire, and avers as follows:
1. Plaintiff is Linda F. Witmer, an adult individual, who
resides at 110 Merrihill Drive, Carlisle, Pennsylvania 17015.
2. Defendant Upper Allen Township is a First Class Township
organized and existing under the Laws of the Commonwealth of
Pennsylvania with its office at 100 Gettysburg Pike,
Mechanicsburg, Pennsylvania 17055.
3. Plaintiff is the widow of David H. Witmer who died on
July 26, 2007 at the age of 61.
4. During his lifetime David Witmer was employed by Upper
Allen Township, and as an employee vested in a retirement benefit
under the Township's employee benefit plan. At his death
Mr. Witmer had not yet elected to receive monthly retirement
payments.
5. At the time of his termination of employment Mr. Witmer
received a "Notice of Deferred Vested Benefit", a true and
correct copy of which is attached hereto, made a part hereof, and
marked Exhibit "All.
6. During the time he was employed by Upper Allen Township,
David Witmer was provided a "Summary Plan Description" for the
"Upper Allen Township Employees' Pension Plan". On Page 2 of
this Plan regarding Death Benefits, The Plan provides as follows:
DEATH BENEFITS
If you become vested under the Plan and die before
beginning to receive benefits, your spouse will receive a
50$ survivor benefit if you have been married at least one
year. Payment of the survivor benefit would begin on the
date on which you would first have been eligible for
retirement. The amount of the survivor benefit would be the
50W survivor benefit payable under the joint and 50%-
survivor option, based upon the pension accrued at your date
of death and reduced for early commencement of benefits, if
applicable.
A true and correct copy of the Summary Plan Description is
attached hereto, made a part hereof, and marked Exhibit "B".
7. Following David Witmer's death, Plaintiff contacted
Upper Allen Township and requested confirmation of her survivor
death benefit. In response, Plaintiff received a letter dated
August 10, 2007 from Conrad Siegel Actuaries to Upper Allen
Township stating that she is not entitled to a death benefit. A
true and correct copy of this letter is attached hereto, made a
part hereof and marked Exhibit "C°.
8. David and Linda Witmer were married on November 23, 1991
and were therefore married for more than one year at the time of
Mr. Witmer's death.
9. The Township's position is that Articles IV and V of the
Plan document, dated January 1, 2001, adopted after Mr. Witmer's
termination of employment, deny benefits to spouses of vested
former employees who have not begun receiving benefits. True and
correct copies of Articles IV and V of the 2001 Pension Plan are
attached hereto, made a part hereof, and marked Exhibit ''D°.
10. Plaintiff does not know to what extent these provisions
may have been amended after Mr. Witmer terminated employment.
11. As an employee who terminated employment, David Witmer
was entitled to rely upon the Summary Plan Description which
clearly indicates that his spouse is entitled to a 50% pension
benefit in the event of his death regardless whether or not he
had begun receiving benefits.
12. The Township Summary Plan and the Plan document are
inconsistent with each other, and the Plan Document itself is
ambiguous. The Plaintiff is entitled to have the Plan construed
in the manner most favorable to her and her deceased husband.
NOW, THEREFORE, Plaintiff Linda F. Witmer, prays Your
Honorable Court to award her the following Declaratory Relief:
-3-
a. To order and direct that the Upper Allen Township
Employees' Pension Plan provides her with a 50% joint and
survivor annuity in accordance with the Notice of Deferred Vested
Benefit provided to David H. Witmer.
b. To order and direct that Upper Allen Township begin
to pay Plaintiff's pension, effective April 1, 2008, her
entitlement to be $223.585 per month.
c. To grant such other relief as is just and proper.
Respectfully ubm' d,
]),It 11
Dale F. Shugha Jr
Supreme Court I.D. 1 3 3
10 West High Street
Carlisle, PA 17013
(717) 241-4311
-4-
VERIFICATION
Linda F. Witmer hereby verifies that the facts set forth in
the foregoing Complaint are true and correct to the best of her
knowledge, information and belief, and understands that false
statements herein are made subject to the penalties of 18 Pa.
C.S. §4904 relating to unsworn falsifications.
_? t lCJ c7 G?if?
DATE: April j'?, 2008
-5-
COMMISSIONERS
RAY E. TRIMMER
President
JOHN F. ALLISON
Vice Prcaident
VIRGINIA M. ANDERSON
Assistant Secretary
WILLIAM F. KANE
Assistam Secretary
Mark E. Lewis
Assistant Secretary
COMMISSIONERS of UPPER ALLEN TOWNSHIP
CUMBERLAND COUNTY
100 GETTYSBURG PIKE
MECHAMCSBURG, PA 17055-5698
TELEPHONE (717) 766-0756
FAX (717) 790-9410
April 11, 1996
Mr. David H. Witmer
60 Garland Drive
Carlisle, PA 17013
RE: NOTICE OF DEFERRED VESTED BENEFIT
Dear Dave:
STAFF
ROBERT J. SABATINI, JR.
Tbwnship Msnapr/Soomotry
GREGORY C. MOLL, P.E.
7bwnship Engineer
WILLIAM E. MILLER, JR.
Township Solicitor
Enclosed is your NOTICE OF DEFERRED VESTED BENEFIT regarding pension benefits
accrued while employed by Upper Allen Township. Please keep this information for you
records.
Should you have any questions; please do not hesitate to contact: me. Thank you for your
consideration in this important matter.
Very truly yours,
UPPER ALLEN TOWNSHIP
=' BOAOF COMIOIISSIONER
R*bert . Sabatini, Jr.
Township Manager/S retary
EXhibit lf)?
UPPER ALLEN TOWNSHIP EMpwyns PENSION PLAN
NOTICE OF DEFERRED VESTED BENEFIT
To: David H Witmer
Social Security # 206-34-8117
In accordance with the vesting provisions of the Plan, you are entitled to a Deferred
Vested Pension bea toning at your normal retirement date April 1, 2008. The
of $ 447. 7 per month will be payable for your lifetime, with aion
120 months. You may choose another form of p yments guaranteed for
payment at retirement.
You may elect to have payments begin as early as April 1. 001 ; however, your
pension would then be reduced to reflect early payment.
Please report any change in your address to the Plan Sponsor and Administrator:
Upper Allen Township
100 Gettysburg Pike
Mechanicsburg, PA 17055
x,17 k 2-o r Y3,
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rv S M r" 2 42 H
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(Date of Notice - April 18, 1996)
U47600lDHS
SUMMARY PLAN DESCRIPTION
FOR THE
UPPER ALLEN TOWNSHIP EMPLOYEES PENSION PLAN
ExA1bj? S"
January 1, 1995
INTRODUCTION
The Upper Allen Township Employees Pension Plan was established to provide retirement
income and additional financial security for you. The benefits under the plan are designed to
supplement your Social Security benefits as well as your personal savings.
This Summary Plan Description is intended to acquaint you with the principal features of the
Plan. The actual operation of the Plan will be based on the Plan Ordinance. In the event of
any discrepancy between the Plan Ordinance and this Summary Plan Description, the Plan
Ordinance will govern.
ELIGIBILITY TO PARTICIPATE
If you are a full-time employee (excluding Police Officers) of Upper Allen Township, you
become a member of the Plan on the January 1 after your date of employment and you attain
age 21.
RETIREMENT BENEFITS
You will be eligible for normal retirement after you satisfy both of the following conditions:
(a) You attain age 62, and
(b) You complete 5 years of service.
Your normal retirement pension is payable monthly during your lifetime with payments
guaranteed for the first 120 months.
The amount of your monthly pension is equal to 50% of your average monthly compensation;
however, if you have completed less than 15 years of service at your normal retirement date,
your pension shall be multiplied by a fraction, the numerator of which is the number of your
years of service at your normal retirement date and the denominator of which is 15. The
minimum monthly pension shall be $50.
For purposes of determining your monthly pension benefit from the Plan, your average
monthly compensation is based upon your highest 3 consecutive plan years of compensation.
If you continue working after your normal retirement date, your pension will not start until
you actually retire from active employment. Your late retirement pension will be equal to the
greater of the pension accrued to your late retirement date, based upon your average monthly
compensation determined at your late retirement date, or the actuarial equivalent of your
normal retirement pension.
You are eligible for early retirement after you attain age 55 and complete 5 years of service.
Your early retirement pension is equal to the pension accrued at your early retirement date,
reduced by 5/9 of 1% for each of the first 60 months and by 5/18 of 1% for each of the next 60
months by which your early retirement date precedes your normal retirement date.
If you become totally and permanently disabled, you will be entitled to a disability pension
after you have been disabled for 6 months. Your disability pension will be equal to the
actuarial equivalent of the pension accrued at your date of disability.
DEATH BENEFITS
If you become vested under the plan and die before beginning to receive retirement benefits,
your spouse will receive a 505 survivor benefit if you had been married at least one year.
Payment of the survivor benefit would begin on the date on which you would first have been
eligible for retirement. The amount of survivor benefit would be the 50% survivor benefit
payable under the joint 4n.d 50% survivor pension option, based upon the pension accrued at
your date of death and reduced for early commencement of benefits, if applicable.
VESTING
If you terminate employment prior to meeting the eligibility requirements for normal
retirement but after you have completed 5 years of service, you will be entitled to a deferred
monthly pension beginning on your normal retirement date equal to your accrued pension at
your date of termination.
ACCRUED PENSION
The pension accrued at any date other than your normal retirement date is equal to your
projected normal retirement pension multiplied by the ratio of your number of years of
service to date to the total number of years of service you will have completed if you work
until your normal retirement date; using however your average monthly compensation as of
the date of determination. '
COST OF THE PLAN
The Township pays the full cost of the plan. Employee contributions are not required.
lk E -a J1
2
PENSION OPTIONS
Your monthly pension may be payable under one of the options listed below. The amount of
pension will be actuarially adjusted for each option:
a) Joint and S PenR;^,, _ A monthly pension payable as long as you live. If
your survivor is still living upon your death, payments will continue during your
survivor's lifetime. Pension payments to your survivor could be 100% or 50% of
the amount payable to you. You elect the percentage to be continued to your
survivor.
(b) Lifetime Pension wi .h r', Period, - A monthly pension payable as long as you
live. Upon your death, payments will continue to your beneficiary for the
remainder of the certain period if you die before a specified number of monthly
payments (60 or 180) have been made. If you live beyond the certain period,
payments will continue as long as you live.
Your choice of a pension option must be made before payments begin and can not be changed
thereafter.
ADMINISTRATION
The Plan is administered by the Township. Any questions relating to the Plan should be
directed to:
Township Manager
Upper Allen Township
100 Gettysburg Pike
Mechanicsburg, PA 17055
Phone: (717) 766-0756
3
Conrad Siegel 501 Corporate Circle • P.O. Box 5900 • Harrisburg, PA 17110-0900
A C T U A R I E S Phone (717) 652-5633
Fax (717) 540-9106
The Employee Benefits Company www.conradslegel.com
Conrad M. Siegel, F.S.A.
Harry M. Leister, Jr., F.S.A. August 10, 2007
Clyde E. Gingrich, F.S.A.
Robert J. Dolan, A.S.A. Mr. Richard S. Laskey
David F. Sliding, ASA Upper Allen Township
100 Gettysburg Pike
Robert J. Mrazik, F.S.A. Mechanicsburg, PA 17055
David H. Kiliick, F.SA
Jeffrey S. Myers, F.S.A. Re: David H. Witmer
Thomas L Zimmerman, F.SA. Dear Mich:
Glenn A Hafer, F.S.A.
Kevin A. Erb
F.s a. You have notified me that David H. Witmer, a vested former member
, under the Upper Allen Township Employees Pension Plan
died on
Frank S. Rhodes, F.S.A., aC.A.S. ,
July 26, 2007. You requested that I provide you with the amou
t
f
Hilly A. Ross, F.SA. n
o
any
benefits Mr. Witmer's spouse is entitled to receive under the plan due to
his death.
Jane( M. Leymeister, CEBS
Mark A. Bonsall, F.s A. Under the terms of the Upper Allen Township Employees Pension Plan, a
pre-retirement death benefit is provided to vested active employees. Since
Jahn W. Jeffrey, F.sA Mr. Witmer was no longer actively employed as of the date of his death,
Denise M. Pdin, F.SA
F.S.A. there are no survivor benefits payable to his spouse under the terms of the
plan.
Thomas W. Reese, ASA
Jonathan D. Cramer, F.S.A. If you have any questions, please call.
John D. Vargo, F.SA With best regards,
Robert M. Glus, A.S.A.
Yours sincerely,
Bruce A. Sent, CEBS
Laura V. Hess, A.SA. b cure
Vicki L De(ligani David H. Killick, F.S.A.
Lesley A. Bausch-Ward, A.S.A. DHK:smf Consulting Actuary
Timothy J. Patota, EA
J. Scott Gehman, CEBS
William J. Shipley, A.SA.
Joshua R. Mayhue, A.S.A.
Charles A. Ebedin, E.A.
•AUG=30-2007 THU 08:39 AM CONRAD SIEGEL ACTUARIES FAX NO. 7175409106 P. 02
Upper Allen Township Employees Pensioin Plan
A distribution under an acceptable domestic relations order will not be made to an alternate payee until the
participant is entitled to a distribution under this plan and commences such distribution. Nothing in this Section
permits the alternate payee to receive a form of payment not otherwise permitted under the plan.
The plan administrator shall establish reasonable procedures to determine the acceptability of a domestic
relations order in accordance with IRC section 414(p). Upon receiving a domestic relations order, the plan
administrator promptly will notify the participant and any alternate payee named in the order, in writing, of the
receipt of the order and the plan's procedures for determining the acceptability of the order. Within a
reasonable period of time after receiving the domestic relations order, the plan administrator shall determine
the acceptability of the order and shall notify the participant and each alternate payee, in writing, of its
determination. The plan administrator shall provide notice under this paragraph by mailing to the individual's
address specified in the domestic relations order.
If any portion of the participant's nonforfeitable accrued benefit is payable during the period the plan
administrator is making its determination of the acceptability of the domestic relations order, the plan
administrator shalt make a separate accounting of the amounts payable. If the plan administrator determines
the order is an acceptable domestic relations order within 18 months of the date amounts first are payable
following receipt of the order, it shall direct the trustee to distribute the payable amounts in accordance with
the order. If the plan administrator does not make its determination of the acceptability of the order within the
18-month determination period, it shall direct the trustee to distribute the payable amounts in the manner the
plan would distribute if the order did not exist and will apply the order prospectively if it later determines the
order is an acceptable domestic relations order.
ARTICLE IV -- DEATH BENEFITS
Section 4.1 - Preretirement Death Benefit
(a) Preretirement Survivor Annuity Benefit - If a vested participant who has been married for at least one
year dies prior to termination of employment but after the plan's earliest retirement age, the participant's
surviving spouse (if any) shall receive the same benefit that would be payable if the participant had retired
with an immediate joint and 50% survivor annuity on the day before the participant's date of death.
The surviving spouse may elect to commence payment under such annuity within a reasonable period
after the participant's death. The actuarial value of benefits that commence later than the date on which
payments would have been made to the surviving spouse under a joint and survivor annuity in accordance
with this provision shall be adjusted to reflect the delayed payment.
If a vested participant who has been married for at least one year dies prior to termination of employment
but on or before the plan's earliest retirement age as described in Section 5.2, the participant's surviving
spouse (if any) shall receive the same benefit that would be payable if the participant had:
• separated from service on the date of death,
• been vested strictly in accordance with the vesting schedule,
+ survived to the earliest retirement age,
• retired with an immediate joint and 50% survivor annuity at the earliest retirement age, and
• died on the day after the earliest retirement age.
For purposes of the preceding sentence, a surviving spouse shall begin to receive payments at the
earliest retirement age unless such surviving spouse elects a later date. Benefits commencing after the
earliest retirement age will be the actuarial equivalent of the benefit to which the surviving spouse would
have been entitled if benefits had commenced at the earliest retirement age under an immediate joint and
50% survivor annuity.
The survivor benefit set forth above shall not be payable unless the participant and spouse have been
married throughout the one-year period ending on the date of the participant's death. The participant's
spouse cannot waive receipt of this benefit.
L xhl,bl?- 'T "
_u+76.voc:,2rz4/200, Copyright 0 2001 by Conrad M. Siegel, Inc. 12
•AUG230-2007 THU 02:22 PM CONRAD SIEGEL ACTUARIES FAX NO, 7175409106 P. 02
Upper Alien Township Employees Pension Plan
If there is an acceptable domestic relations order in force with respect to the participant, the alternate
payee shall be treated as the surviving spouse to the extent provided in the order. However, no order
shall be accepted if it provides that the alternate payee shall be the surviving spouse with respect to
benefits accrued as a result of years of benefit service credited after the termination of the marriage.
Section 4.2 - Postretirement Death Benefit
Upon the death of a participant after his annuity starting date, no death benefit shall be payable, except such
benefit as is provided by the particular form of pension payment under which pension benefits. are being
distributed.
ARTICLE V -- TERMINATION OF EMPLOYMENT BENEFITS
Section 5.1 - Vesting
If a participant separates from the service of the employer other than by retirement, disability, or death, he
shall be entitled to a vested deferred pension equal to the benefit accrued to the date of termination multiplied
by the vesting percentage, based upon his years of vesting service to the date of termination. His vesting
percentage shall be determined by the vesting schedule set forth below:
Years of Service Vesting Percentage
0-4 Years 0%
5 or More Years 100%
Section 5.2 - Payment of Benefits
(a) Payment as of Normal Retirement Date - If the participant terminates his employment on or before his
normal retirement date, payment of the vested accrued pension may begin at his normal retirement date.
If payments do not commence until after his normal retirement date, distribution must begin by the
required beginning date for minimum required distributions and the amount of the benefit payable shall be
determined as provided in Section 3.4. The vested accrued pension shall be payable in the same optional
forms and in the same manner as described in Section 3.7.
(b) Payment at Early Retirement Date - Upon the request of the terminated participant, payment of the
vested accrued pension may begin after he has satisfied the plan's early retirement date requirement(s).
In the event of such earlier commencement of benefits, the benefit shall be paid pursuant to the early
retirement provisions of Section 3.5 in the same optional forms and in the same manner as described in
Section 3.7.
(c) Payment Prior to Early Retirement Date -No payment shall be made prior to early retirement, disability,
or death.
(d) Death Before Retirement - if a participant terminates employment and dies before beginning to receive
retirement benefits, a preretirement death benefit may be payable, to the extent provided under Article IV.
Section 5.3 - Forfeitures
(a) Time of Forfeiture - If a participant terminates employment before his accrued benefit derived from
employer contribution is fully vested, the nonvested portion of his accrued benefit shall be forfeited on the
last day of the vesting computation period in which the participant first incurs a one-year break in service.
(b) Disposition of Forfeiture - Forfeitures shall serve to r2duce subsequent employer contributions
hereunder.
(c) Determination of Accrued Benefit - If a distribution is made at a time when a participant has a
nonforfeitable right to less than the entire accrued benefit derived from employer contribution, the
participant may increase his nonforfeitable percentage in his accrued benefit by returning to employment
1t Z) / t1
477_U476.DOC: 121202001 Copyright 0 2001 by Conrad M. Siegel, Inc. 13
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SHERIFF'S RETURN - REGULAR
CASE NO: 2008-02375 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
WITMER LINDA F
VS
UPPER ALLEN TOWNSHIP
NOAH CLINE
Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within COMPLAINT & NOTICE was served upon
+I--„ T T "AT T/1T.TAT L1 TIT n the
DEFENDANT , at 1120:00 HOURS, on the 17th day of April 2008
at 100 GETTYSBURG PIKE
MECHANICSBURG, PA 17055
RICH LASKEY, ASST TOWNSHIP
by handing to
MANAGER, ADULT IN CHARGE
a true and attested copy of COMPLAINT & NOTICE
together with
and at the same time directing His attention to the contents thereof.
Sheriff's Costs:
Docketing
Service
Postage
Surcharge
ti/a -/c p 9-
18.00
10.00
.58
10.00
.00
38.58
Sworn and Subscibed to
before me this
day
of
So Answers:
R. Thomas Kline
04/18/2008
DALE SHUGHART
By:
eputy Sheriff
A.D r??lx
LINDA F. WITMER
Plaintiff
VS.
UPPER ALLEN TOWNSHIP,
Defendant
TO THE PROTHONOTARY:
Dear Sir:
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION - LAW
: 2008 - 2375
DECLARATORY JUDGMENT ACTION
PRAECIPE
Please mark the above captioned action settled and
discontinued.
Date: ?'1%5L_ .-240g-
5 2--<) OB7
Dale F. Shugha? t/ J
Supreme Court D 9373
10 West High Stree
Carlisle, PA 17013
(717) 241-4311
CC: William E. Miller, Jr., Esquire
Miller & Associates, P.C.
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