[Ord. No. 667, §§ 3.01, 3.02; Ord. No. 676, § 1, 8-13-1973; Ord. No. 1375, § 1, 2-11-2002; Ord. No. 1418, § 3, 3-8-2004]
(a)
Each member who remains in employment until his normal retirement
date shall be entitled to receive a monthly pension, payable during
his lifetime on the first day of each month following his termination
of employment, equal to his accrued monthly pension.
(b)
If a member, retiring on or after his normal retirement date, who
has begun to receive a pension under the plan, dies prior to the time
he has received one hundred twenty (120) monthly pension payments,
the monthly payments will be continued to the beneficiary named by
the member until the number of monthly payments made to such former
member and his beneficiary total one hundred twenty (120). If a member
who has remained in the employment of the Township beyond his normal
retirement date dies prior to the date his pension payments have commenced,
one hundred twenty (120) monthly payments equal to the member's accrued
monthly pension will be paid to the beneficiary named by the member.
If no beneficiary designated by the member is alive to receive such
payments, or if the beneficiary designated by the member dies prior
to receiving all payments due, the remaining payments will be commuted
at four percent (4%) interest compounded annually, and the commuted
value paid in a single sum to the estate of the member or such beneficiary,
whichever is the last to die.
(c)
At the conclusion of the one-hundred-twenty-month certain payment period provided for in § 19-44(b) above, the surviving spouse of a member of the police force or a member who retires on pension who dies or, if no spouse survives or if such spouse survives and subsequently dies, then the child or children under the age of eighteen years or, if a student, under or attaining the age of twenty-three (23) years, of a member who dies, shall, during such spouse's lifetime, or until reaching the age of eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years, in the case of a child or children, be entitled to receive a pension calculated at the rate of fifty percent (50%) of the pension the member was receiving or would have been receiving had he been retired at the time of his death.
(d)
Notwithstanding anything to the contrary contained herein, the survivor benefits referred to in § 19-44(b) and (c) shall apply only to officers who began full-time employment before January 24, 2001. For officers who began full-time employment on or after January 24, 2001, the survivor benefits shall be as follows: The surviving spouse of a member of the police force or a member who retires on pension who dies or, if no spouse survives or if he or she survives and subsequently dies, then the child or children under the age of eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years, may, during his or her lifetime in the case of a spouse or until reaching the age of eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years, in the case of a child or children, be entitled to receive a pension calculated at the rate of fifty percent (50%) of the pension the member was receiving or would have been receiving had he or she been retired at the time of his or her death.
[Ord. No. 667,
§ 3.04, 12-11-1972; Ord. No. 676, § 1, 8-13-1973; Ord.
No. 810, § 2, 3-12-1979; Ord. No. 1090, § 2, 12-9-1991; Ord.
No. 1104, § 2, 6-8-1992; Ord. No. 1296, § 1, 7-19-1999; Ord.
No. 1297, § 1, 7-19-1999; Ord. No. 1308, § 1, 11-22-1999; Ord. No. 1326, § 2, 4-26-2000; Ord. No. 1375, §§ 2, 3, 2-11-2002; Ord. No. 1418, § 4, 3-8-2004; Ord.
No. 1529, § 1, 9-14-2009]
(a)
Job-related disability pension.
(1)
Effective January 1, 1995, commencing with the first day of
employment on the police force, if the service of a member employed
as a police officer is discontinued prior to his/her normal retirement
date because of a disability which was caused by the member's service
as a police officer for the Township ("job-related permanent disability"),
that member shall be entitled to receive a lifetime monthly pension
commencing on the first day of the month following termination of
employment. The amount of pension payment shall be 75% of the member's
monthly salary rate reduced by any workers' compensation payments
that the member received that are not endorsed to the Township in
accordance with the collective bargaining agreement. In the event
that the member received workers' compensation payments that are subsequently
settled in a lump sum payment to the member, future disability payments
will be reduced by the actuarial equivalent value of such lump sum
payment.
(2)
Upon the death of a member who is then receiving a job-related
disability pension prior to the time he/she has received 120 monthly
pension payments, the monthly payments that would otherwise have been
payable will continue to the beneficiary named by the member until
the number of monthly payments to such former member and his/her beneficiary
total 120. If no beneficiary designated by the member is alive to
receive such payments, or if the beneficiary designated by the member
dies prior to receiving all payments due, the remaining payments will
be commuted at 4% interest compounded annually, and the commuted value
paid in a single sum to the estate of the member or such beneficiary,
whomever is the last to die.
(3)
Notwithstanding the above, effective July 1, 2000, the fixed
benefit rate of each disabled police officer who retired on a job-related
disability retirement prior to January 1, 2000, at the fifty-percent
level will be set at 57% of the member's monthly salary rate. Each
disabled police officer who retired on a job-related disability retirement
prior to January 1, 2000, at the seventy-five-percent level will be
set at 103% of the member's monthly salary rate.
(4)
Notwithstanding anything to the contrary contained in sec. 19-45(a)(2),
the survivor benefits referred to in sec. 19-45(a)(2) shall apply
only to Officers who begin full-time employment before January 24,
2001. For Officers who begin full-time employment on or after January
24, 2001, the survivor benefits shall be as follows: The widow or
widower of a member of the police force or a member who retires on
pension who dies or if no widow or widower survives or if he or she
survives and subsequently dies or remarries, then the child or children
under the age of eighteen (18) years of a member of the police force,
or a member who retires on pension who dies may, during his or her
lifetime or so long as he or she does not remarry in the case of a
widow or widower or until reaching the age of eighteen (18) years
in the case of a child or children, be entitled to receive a pension
calculated at the rate of fifty percent (50%) of the pension the member
was receiving or would have been receiving had he or she been retired
at the time of his or her death.
(5)
In the case of the payment of pensions for permanent injuries
incurred in service, the amount and commencement of the payments shall
be fixed by Township Council and shall be calculated at a rate no
less than fifty per centum of the member's salary at the time the
disability was incurred, provided that any member who receives benefits
for the same injuries under the Social Security Act (49 Stat. 620,
42 U.S.C. § 301 et seq.) shall have his or her disability
benefits offset or reduced by the amount of such benefits.
(6)
In the event that Act 600 is amended by the General Assembly of Pennsylvania and signed by the Governor to authorize and permit the benefits as reduced herein for Police Officers hired on or after January 24, 2001, then Police Officers hired on or after January 24, 2001, shall receive the same benefits as officers who began full-time employment before January 24, 2001, under § 19-44 and 19-45 of this plan as set forth herein.
[Ord. No. 667,
§ 3.05, 12-11-1972; Ord. No. 676, § 2, 8-13-1973; Ord.
No. 688, § 1, 11-26-1973; Ord. No. 810, § 3, 3-12-1979; Ord.
No. 945, § 1, 3-10-1986; Ord. No. 1090, § 3, 12-9-1991; Ord.
No. 1297, § 2, 7-19-1999; Ord. No. 1301, § 1, 9-13-1999; Ord.
No. 1304, § 1, 10-11-1999; Ord. No. 1308, § 2, 11-22-1999; Ord. No. 1375, § 4, 2-11-2002; Ord. No. 1418, § 5, 3-8-2004]
(a)
Upon the death of a retired member receiving a disability pension,
where the aggregate pension payments received prior to the death are
less than the member's aggregate contribution, if any, to the plan
together with credited interest, the excess of such contributions
plus interest over and above pension payments will be paid to the
member's designated beneficiary. If no beneficiary designation is
effective at death, payment will be made to the member's estate.
(b)
For any member who retired prior to January 1, 2000, upon the death
of such retired member of the plan, there shall be paid to his/her
designated beneficiary (or to his/her estate if no designation is
effective at his/her death) in addition to any benefits payable under
sec. 19-44(b), sec. 19-45(a) or sec. 19-45(b) hereof, a lump sum of
$3,000.
(c)
At the conclusion of the one-hundred-twenty-month certain payment period provided for under § 19-44(b) above for retirement, and § 1945(a)(2) above for a member who retires with a job-related permanent disability under § 19-45(a) above, the surviving spouse of such member or of such member who retires on pension who dies, or if no spouse survives, then the child or children under age eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years, of a member who dies shall during such spouse's lifetime, or until reaching the age of eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years in the case of a child or children, be entitled to receive a pension calculated at the rate of fifty percent (50%) of the pension such member was receiving or would have been receiving had he/she been retired at the time of his/her death.
[Ord. No. 667,
§ 6.02, 12-11-1972]
If any member or beneficiary shall be physically or mentally
incapable of receiving or acknowledging receipt of any payment due
under the terms of the plan and no legal representative shall have
been appointed for him, the Council may direct that any such payment
due him be paid to any person or institution maintaining such member
or beneficiary and the release of such person or institution shall
be a valid and complete discharge for such payment.
[Ord. No. 667,
§ 6.03, 12-11-1972]
If the beneficiary of any member shall be a minor and no guardian
shall have been appointed for him, the Council may direct that any
payment due under the plan for his benefit be retained until he attains
majority. Such amount, as authorized by the Council, may be held in
cash, deposited in bank or savings accounts, or invested and reinvested
in direct obligations of the United States, and the income thereon
may be accumulated and invested or the income and principal may be
expended and applied directly for the maintenance, education and support
of such minor without the intervention of any guardian and without
application to any court.
[Ord. No. 1147, § 3, 2-14-1994]
Notwithstanding anything herein to the contrary, the amount
of the monthly pension payable to each retired officer or the beneficiary
of each retired officer who retired prior to January 1, 1989, shall
be increased by 10% effective with the payment as of January 1, 1994.
[Ord. No. 1220, § 2, 3-10-1997]
Notwithstanding anything herein to the contrary, each retirement
pension that first becomes payable on or after January 1, 1997 shall
include a service increment of $100 per month if the police officer
has 26 or more years of continuous service at the time of retirement.
[Ord. No. 1220, § 3, 3-10-1997; Ord. No. 1263, § 2, 6-22-1998]
(a)
Each retirement pension that first becomes payable on or after January 1, 1997, under section 19-44 above, or on or after August 1, 1998, under section 19-53, shall be annually adjusted. Such adjustment shall be made as of each January 1 to reflect the cost of living change in the preceding year, based on 1/2 of the increase in the CPI-W Consumer Price Index of the United States Department of Labor for Philadelphia (urban wage earners and clerical workers) for the twelve-month period ending on the October 31st preceding each such January 1.
(b)
Notwithstanding the above, the following limitations shall be applicable
to all cost-of-living adjustments:
(1)
No cost-of-living adjustment shall be made in the first year
of retirement unless the member was retired for at least six months
prior to January 1.
(2)
The cost-of-living increase shall not exceed 1/2 of the percentage
increase in the Consumer Price Index from the year the member last
worked.
(3)
In no case shall the total police pension benefits (including
all service increments and automatic cost-of-living adjustments) exceed
75% of the member's monthly plan compensation used for computing retirement
benefits.
(4)
The total aggregate of the cost-of-living increases for all
years shall not exceed 15%.
(5)
No cost-of-living increase shall be granted which shall impair
the actuarial soundness of the pension fund.
[Ord. No. 1346, § 1, 3-12-2001]
(a)
Each retirement pension that first becomes payable on or after January
1, 2000, under Sec. 19-44 or 19-53 shall be annually adjusted. Such
adjustment shall be made as of January 1 to reflect the cost of living
change in the preceding year, based on the increase in the CPI-W Consumer
Price Index of the U.S. Department of Labor for Philadelphia (urban
wage earners and clerical workers) for the twelve-month period ending
on October 31 preceding each such January 1.
(b)
Notwithstanding the above, the following limitations shall be applicable
to all such cost of living adjustments:
(1)
No cost of living adjustment shall be made in the first year
of retirement unless the member was retired for at least six months
prior to January 1;
(2)
The cost of living increase shall not exceed the percentage
increase of the Consumer Price Index for Urban Wage Earners from the
year the member last worked;
(3)
In no case shall the total police pension benefits (including
all service increments and automatic cost of living adjustments) exceed
75% of the member's final average earnings based on the last 36 months
of service to the Township.
(4)
The total aggregate of the cost of living increase for all years
shall not exceed 30%.
(5)
No cost of living increase shall be granted which shall impair
the actuarial soundness of the pension fund.
[Ord. No. 1375, § 5, 2-11-2002; Ord. No. 1418, § 6, 3-8-2004]
In the event of the death of a member whose employment commenced prior to January 24, 2001, who is entitled to receive an automatic cost-of-living adjustment under § 19-51 or § 19-51.1, any benefits that become payable pursuant to § 19-46 on behalf of such member shall include the automatic cost-of-living adjustment.
[Ord. No. 1248, § 1, 12-8-1997]
Effective January 1, 1998, each retirement pension that first
became payable prior to January 1, 1975, shall be increased by an
ad hoc cost-of-living increase. This increase shall be equal to 30%
of the initial monthly benefit that the eligible pensioner received
at the time of retirement less any subsequent ad hoc increases granted
prior to January 1, 1998, and shall be payable thereafter for his
remaining lifetime.
[Ord. No. 1263, § 3, 6-22-1998]
(a)
If a member's employment with the Township is terminated after at
least 20 years of continuous service but before his normal retirement
date (other than for death or for permanent disability), he shall
be eligible for an early retirement pension, provided that he files
with the board a written application for an early retirement benefit.
The early retirement benefit shall become effective as of the date
the application is filed with the board or the date designated on
the application, whichever is later, and shall be the actuarial equivalent
of his deferred vested pension as of the date his employment terminated.
(b)
The actual equivalent of the deferred vested pension shall be determined
by actuarially reducing the deferred vested pension to reflect that
it will commence on the effective date of his early retirement rather
than on his normal retirement date. The actuarial reduction shall
be actuarial assumptions reported in the last actuarial 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.
[Ord. No. 1418, § 8, 3-8-2004]
(a)
Effective date. Effective January 1, 2004, members who have not retired
prior to the implementation of the DROP program may enter into DROP
following completion of twenty-five (25) years of credited service
and attaining the age of fifty-two (52.)
(b)
Written election. A member electing to participate in the DROP must
complete and execute a "drop option form" prepared by the Township,
which shall evidence the member's participation in the DROP. The form
must be signed by the member and notarized and submitted to the Township
prior to the date on which the member wishes the DROP option to be
effective. The DROP option notice shall include an irrevocable notice
to the Township, by the member, that the member shall resign from
employment with the Plymouth Township Police Department effective
on a specific date (the "resignation date"). In no event shall the
resignation date be shorter than twelve (12) months or longer than
sixty (60) months from the execution of the DROP option form. An officer
shall cease to work as a Township Police Officer on the officer's
resignation date, unless the Township terminates or honorably discharges
the officer prior to the resignation date. In addition, all retirement
documents required by the board must be filed and presented to the
board for approval of retirement and payment of pension. Once a retirement
application has been approved by the board, it is irrevocable.
(c)
Limitation on pension accrual. After the effective date of the DROP
option, the member shall no longer earn or accrue additional years
of continuous service for pension purposes. The member shall no longer
be required to make contributions to the plan.
(d)
Benefit calculation. For all retirement fund purposes, continuous
service of a member participating in the DROP shall remain as it existed
on the effective date of commencement of participation in the DROP.
Service thereafter shall not be recognized or used for the calculation
or determination of any benefits payable under the plan. The average
applicable compensation of the member for pension calculation purposes
shall remain as it existed on the effective date of commencement of
participation in the DROP. Earnings or increases in earnings thereafter
shall not be recognized or used for the calculation or determination
of any benefits payable under the plan. The pension benefit payable
to the members shall increase only as a result of cost-of-living adjustments
in effect on the effective date of the member's participation in the
DROP or by applicable cost-of-living adjustments granted thereafter.
(e)
Payments to the DROP account. The monthly retirement benefits that
would have been payable had the member elected to cease employment
and receive a normal retirement benefit, shall, upon the member commencing
participation in DROP, be paid into the separate account established
to receive the participant's monthly pension payments. This account
shall be designated the DROP account.
(f)
Accrual of non-pension benefits. After an officer elects to participate
in the DROP program, all other contractual benefits shall continue
to accrue with the exception of those provisions relating to the plan.
An officer may utilize leave time during the DROP period.
(g)
Payout. Upon the resignation date set forth in the member's drop
option notice or such date as the Township separates the member from
employment, the retirement benefits payable to the member or member's
beneficiary, if applicable, shall be paid to the member or beneficiary
and shall no longer be paid to the member's deferred retirement option
account. Within thirty (30) days following termination of a member's
employment pursuant to their participating in the DROP program, the
balance in the member's DROP account shall be paid to the member in
a single lump-sum payment or at the member's option, in any fashion
permitted by law.
(h)
Disability during DROP. If a member becomes temporarily incapacitated
during his participation in DROP, that member shall continue to participate
in the DROP program as if fully employed, and his participation freezes
and the time period while on disability does not count towards the
sixty-month participation limit. Upon return to duty, membership in
DROP shall resume, continuing with the remaining time left in the
sixty-month membership period. The member shall receive disability
pay in the same amount as disabled members that are not participating
in DROP. In no event shall a member on temporary disability have the
ability to draw from his DROP account. However, notwithstanding any
other provision in this paragraph, if a member is disabled and has
not returned to work as of the date of his required resignation, then
such resignation shall take precedence over all other provisions herein
and said officer shall be required to resign. Nothing contained in
this plan shall be construed as conferring any legal rights upon any
police employee, member or other person to a continuation of employment
nor shall participation in the DROP program supercede or limit in
any way the right of the Township to honorably discharge a member
based upon an inability to perform his or her full duties as a member.
An member participating in the DROP program agrees to waive the right
to receive any disability pension benefit under the terms of the plan.
(i)
Death. If a DROP member dies before the DROP account balances are
paid, the participant member's legal beneficiary shall have the same
rights as the member to withdraw the account balance.
(j)
Account manager. The Township and the members will mutually agree
upon an investment manager to administer the DROP accounts. The Township
and the members further agree that the Township shall not be responsible
for any investment loss incurred in the plan or for the failure of
an investment to earn a specific or expected return or to earn as
much as any other opportunity, whether or not such other investment
opportunity was offered or available to participants in the plan.
(k)
Cost of management for DROP program. The members and the Township
agree that any costs or fees associated with the management of the
DROP accounts shall be paid directly from the plan and not by the
Township.
(l)
Amendment. Any amendments to the DROP shall be consistent with the
provisions covering deferred retirement option plans set forth in
any applicable collective bargaining agreement and shall be binding
upon all future DROP participants and upon all DROP participants who
have balances in their deferred retirement option accounts. The DROP
plan may only be amended by a written instrument, not by any oral
agreement or past practice.
(m)
Construal of provisions. A member's election to participate in the
DROP program shall in no way be construed as a limitation on the Township's
right to promote or to suspend or terminate a member for just cause
or to grant the member an honorable discharge based upon a physical
or mental inability to perform his or her duties.
(n)
Severability. The provisions of the DROP plan shall be severable,
and if any of its provisions shall be held to be unconstitutional
or illegal, the validity of any of the remaining provisions of the
ordinance shall not be affected thereby. It is hereby expressly declared
as the intent of the Plymouth Township Council that the DROP plan
would have been adopted had such unconstitutional or illegal provision
or provisions not been included herein.
[Ord. No. 1494, 3-10-2008]
Effective July 1, 2008, each retirement pension of a retired police officer who retired prior to June 30, 1993, under § 19-44 (normal retirement) or § 19-53 (early retirement) (eligible pensioner) shall be increased by an ad hoc cost of living increase. This increase shall be equal to 7.5% of the monthly benefit that the eligible pensioner received for the month of June 2008, and shall be payable thereafter for his remaining lifetime.
[Added 7-10-2023 by Ord. No. 1692]
Officers may purchase service credit for up to five (5) years of active military service with the United States Armed Forces that occurred prior to their employment as Township police officers, provided that the officer is not entitled or eligible to receive and is not currently receiving retirement benefits for such service from any retirement system administered and wholly or partially paid for by any other governmental agency. The amount due for the purchase of credit for military service other than intervening military service shall be computed in accordance with Section 4 of Act 600, 53 P.S. § 770. The amount due shall be calculated by applying the average normal cost rate for borough, town, township and regional police pension plans as certified by the Public Employee Retirement Commission, but not to exceed ten percent (10%), to the officer's average annual rate of compensation over the first three (3) years of Township service and multiplying the result by the number of years and fractional part of a year of creditable non-intervening military service being purchased together with interest at the rate of four and three-quarters (4.75%) compounded annually from the date of initial entry into Township service to the date of payment.
