Borough of Sharon Hill, PA
Delaware County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Council of the Borough of Sharon Hill as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Life insurance for civil employees — See Ch. 27.
[Adopted 4-8-1958 by Ord. No. 794 (Ch. 15, Art. I, of the 1972 Code)]

§ 40-1 Establishment of fund.

A police pension fund for the police force of the Borough of Sharon Hill, established under the provisions of Act No. 600 of the General Assembly of the Commonwealth of Pennsylvania, approved May 29, 1956, Session of 1955, P.L. 1804,[1] shall be known as the "Police Pension Fund." Such fund shall be under the direction of Borough Council and applied under such regulations as it may prescribe or designate by resolution from time to time.
[1]
Editor's Note: See 53 P.S. § 761 et seq.

§ 40-2 Transfer from existing fund.

The existing Police Pension Fund established under resolution dated November 12, 1945 by the Borough of Sharon Hill is hereby transferred to the fund established under the provisions of this article.

§ 40-3 Maintenance of fund.

The Police Pension Fund shall be maintained:
A. 
By a charge against each member of the police force.
B. 
By annual contributions made by the Borough.
C. 
By payments made by the State Treasurer to the Municipal Treasurer from the moneys received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement.
D. 
By gifts, grants, devises or bequests granted to the Police Pension Fund pursuant to Section 2 of Act No. 600, Session of 1955, P.L. 1804.[1]
[1]
Editor's Note:

§ 40-4 Designation of trustee.

[Amended 12-28-1972 by Ord. No. 1019; 6-23-1994 by Ord. No. 1237]
The trustee, Southeast National Bank, is changed to First Fidelity Bank or any other established institution as may be designated from time to time by Borough Council.

§ 40-5 Establishment of Police Pension Committee.

A Police Pension Committee is hereby established, which shall consist of four members, all of whom shall be appointed by Sharon Hill Borough Council. They shall consist of one member selected from Borough Council, one representative recommended by the Police Department, one citizen of the Borough of Sharon Hill, and the Borough Treasurer. The Committee members shall serve without compensation for a period of three years or until their successors are duly designated and appointed by Borough Council.

§ 40-6 Designation of actuary.

[Amended 6-23-1994 by Ord. No. 1237]
The actuary, Huggins & Company, is changed to Hay/Huggins Company, Inc., or any other established institution as may be designated from time to time by Borough Council.

§ 40-7 Implementation of provisions.

A written police pension plan shall be adopted by resolution. This shall implement this article and shall incorporate therein all the requirements of Act No. 600, Session of 1955, P.L. 1804, and also include the continuance, for members of the fund created under resolution dated November 12, 1945, of their vested rights acquired in that fund.

§ 40-8 Committee to determine contributions and payments.

The Police Pension Committee, with the aid of the actuary and/or the trustee, when necessary, shall make the necessary determinations as to what contributions are to be made to the fund and also what payments are to be made out of the fund in accordance with the pension plan and the Act of Assembly No. 600, Session of 1955, P.L. 1804, and written instructions as to such payments shall be given by the Police Pension Committee to the persons affected.

§ 40-9 Act 44 Retirement Program.

[Added 3-27-2014 by Ord. No. 1364]
A. 
Title. This section shall be known as the "Sharon Hill Police Act 44 Retirement Program."
B. 
Definitions. When used in this section, the following words shall have the meanings indicated:
ACT 44 PROGRAM
The Act 44 Deferred Retirement Option Program referred to in the collective bargaining agreement between Delaware County Lodge No. 27 of the Fraternal Order of Police and the Borough of Sharon Hill.
ACT 44 PROGRAM ACCOUNT
Separate ledger account created to accept Act 44 Program participants' monthly pension benefit while an Act 44 Program participant, as well as any interest thereon.
BOROUGH
Borough of Sharon Hill, Delaware County, Pennsylvania.
FUND or PLAN
The Police Pension Plan.
PARTICIPANT
A police officer who meets the eligibility for and has executed the proper documents for participation in the Act 44 Program and has had such application approved by the Borough.
POLICE OFFICERS
Police officers of the Police Department.
C. 
Eligibility. Eligibility for the Act 44 Program shall be determined as follows:
(1) 
Police officers who have not retired prior to the implementation of the Act 44 Program may enter into the Act 44 Program on the first day of any month following completion of 25 years of credited service and attaining the age of 50.
D. 
Written election. Eligible officers who wish to be participants in the Act 44 Program must signify that intention in writing, as follows:
(1) 
A police officer electing to participate in the Act 44 Program must complete and execute an "Act 44 Program Participation Election Form" prepared by the Borough, which shall evidence the member's election to participate in the Act 44 Program. The form must be signed by the police officer and be notarized and submitted prior to the date on which the member wishes Act 44 Program participation to commence. The Act 44 Program participation election form shall include an irrevocable notice to the Borough by the police officer member that the police officer shall resign from employment with the Police Department effective on a specific date (the "resignation date") that is no later than three years from the effective date of the Act 44 Program election form. For all police officers, except for the individual holding the position of Chief of Police on January 1, 2014, in no event shall the resignation date be longer than 84 months after the date of normal retirement that is provided for in the Sharon Hill Police Pension Plan. A police officer shall cease to work as and may no longer be employed as a police officer on the officer's resignation date, unless the Borough properly terminates or honorably discharges the officer prior to the resignation date. The individual holding the position of Chief of Police on January 1, 2014, shall be permitted three years of participation in the Act 44 Program, effective January 1, 2014, such that, if he enters the Act 44 Program, he shall terminate employment not later than December 31, 2016. A participant may resign from employment while in Act 44 Program status, which shall terminate her/his participation in the Act 44 Program.
(2) 
In addition to the above information, the Act 44 Program participation election form shall also advise the employee of the following: 1) an explanation of the participant's rights and obligations while in the Act 44 Program; 2) that, as a condition of Act 44 Program participation, the participant foregoes active participation in the Police Pension Plan and foregoes any recalculation of pension benefits to include salary increases occurring after Act 44 Program participation commences; and 3) that the Act 44 Program participant's service while in the Act 44 Program will not count as pension service nor will it entitle a participant to any service increment benefits to which the participant was not entitled prior to commencing Act 44 Program participation. An Act 44 Program participant must also complete any and all retirement documents required by the Police Pension Plan Administrator, and such documents must be filed and presented to the Borough for approval of retirement and payment of pension. Once an Act 44 Program participation election form has been approved by the Borough, it is irrevocable. Likewise, once an Act 44 Program participant enters the Act 44 Program, the participant may not subsequently leave and then reenter the Act 44 Program, even if the employee separates from employment and subsequently begins employment with the Borough again.
E. 
Benefit calculation. For all pension plan purposes, continuous service of a police officer participating in the Act 44 Program shall remain as it existed on the effective date of commencement of participation in the Act 44 Program. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Borough Police Pension Plan. The average monthly compensation of the police officer for pension calculation purposes shall remain as it existed on the effective date of commencement of participation in the Act 44 Program. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the pension 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 Act 44 Program or by applicable cost of living adjustments granted thereafter.
F. 
Accumulation of the Act 44 Program account. The monthly retirement benefits that would have been payable had the police officer elected to cease employment and receive a normal retirement benefit shall, upon the police officer commencing participation in the Act 44 Program, accumulate to the benefit of that officer and be accounted for on that police officer's Act 44 Program account. Participants shall not have the option of self-directed investment of their individual Act 44 Program account while in the Act 44 Program. Instead, the monies shall be invested in a fund to be identified and selected solely by the Borough in accordance with applicable law so as to generate a rate of return of no less than 0% and no more than 4.5%.
G. 
Accrual of nonpension benefits. After a police officer elects to participate in the Act 44 Program, all other contractual benefits shall continue to accrue, with the exception of those provisions relating to the Police Pension Plan.
H. 
Payout. Upon separation from employment, the Act 44 Program payout options available to the Act 44 Program participant shall be as follows:
(1) 
The balance of the Act 44 Program participant's account, less withholding taxes, if any, remitted to the Internal Revenue Service, shall be paid to the participant or the participant's surviving beneficiary.
(2) 
The balance of the Act 44 Program participant's account shall be paid directly to the custodian of an eligible retirement plan as defined by Internal Revenue Code Section 402(c)(8)(b), or in the case of an eligible rollover distribution to the surviving spouse of a deceased Act 44 Program participant, an eligible retirement plan that is an individual retirement account or an individual retirement annuity as defined by Internal Revenue Code Section 402(c)(9).
(3) 
If the Act 44 Program participant or beneficiary fails to make an election within 60 days following the date of termination of Act 44 Program participation, then the Borough shall implement Subsection H(1) above.
I. 
Disability during Act 44 Program. If an Act 44 Program participant becomes temporarily incapacitated during his participation in the Act 44 Program, that police officer shall continue to participate in the Act 44 Program as if fully employed. The police officer shall receive disability pay in the same amount as disabled police officers that are not participating in the Act 44 Program. In no event shall a police officer on temporary disability have the ability to draw from his Act 44 Program account. However, notwithstanding any other provision in this paragraph, if a police officer 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 officer or other person to a continuation of employment, nor shall participation in the Act 44 Program supersede or limit in any way the right of the Borough to honorably discharge a police officer based upon an inability to perform his or her full duties as a police officer. If a Act 44 Program participant becomes eligible for a disability pension and his employment is terminated due to an inability to continue in service on grounds that render him eligible for a disability pension, the monthly normal retirement benefit of the Act 44 Program participant shall end. Instead, the police officer shall receive a service-connected disability pension, the monthly payment being equal to the amount which was payable in accordance with the Act 44 Program benefit calculation and payments.
J. 
Death. If an Act 44 Program participant dies, the participant's eligibility for the Act 44 Program shall terminate upon the date of death. In such case, if the Act 44 Program account balances have not yet been paid out, the participant's legal beneficiary shall have the same rights and options as the participant to withdraw/rollover the account balance.
K. 
Forfeiture of benefits. Notwithstanding a police officer's status as an Act 44 Program participant, a current or former participant who is convicted or pleads guilty to engaging in criminal misconduct which constitutes a "crime related to public office or public employment," as that phrase is defined in Pennsylvania's Public Employee Pension Forfeiture Act, 43 P.S. §§ 1311 to 1314, shall forfeit his right to receive a pension, including any amounts currently deposited in the Act 44 Program account. In such a case, the participant shall only be entitled to receive the contributions, if any, made by the participant to the Police Pension Fund, without interest.
L. 
Cost of management for Act 44 Program. The police officers and the Borough agree that any costs or fees associated with the management of the Act 44 Program accounts shall be paid directly from the pension fund and not by the Borough.
M. 
Amendment. Any amendments to this Act 44 Program section shall be consistent with the provisions covering individual retirement option plans set forth in any applicable collective bargaining agreement and shall be binding upon all future Act 44 Program participants and upon all Act 44 Program participants who have balances in their individual retirement option accounts. The Act 44 Program may only be amended by a written instrument, not by any oral agreement or past practice.
N. 
Construal of provisions. A police officer's election to participate in the Act 44 Program shall in no way be construed as a limitation on the Borough's right to suspend or to terminate a police officer for just cause or to grant the police officer an honorable discharge based upon a physical or mental inability to perform his or her duties.
O. 
Severability. The provisions of the Act 44 Program 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 Act 44 Program shall not be affected thereby. It is hereby expressly declared as the intent of the Borough that the Act 44 Program would have been adopted had such unconstitutional or illegal provision or provisions not been included herein.
P. 
Effective date. The effective date of the Act 44 Program shall be the date the Borough approves the collective bargaining agreement which references the creation of this Act 44 Program.

§ 40-10 Effective date; supersession of existing fund.

This article shall become effective May 1, 1958, on which date it shall supersede the Police Pension Fund created under resolution dated November 12, 1945. Beginning May 1, 1958, all payments shall be made from the Police Pension Fund created under this article.
[Adopted 4-8-1958 by Ord. No. 795 (Ch. 15, Art. II, of the 1972 Code)]

§ 40-11 Establishment of fund.

A civil employees' pension fund for regular employees (other than members of the police force) of the Borough of Sharon Hill is hereby established and shall be known as the "Civil Employees Pension Fund." Such fund shall be under the direction of Borough Council and applied under such regulations as it may prescribe or designate by resolution from time to time.

§ 40-12 Maintenance of fund.

The Civil Employees Pension Fund shall be maintained:
A. 
By a charge against each regular employee (other than a member of the police force).
B. 
By annual contributions made by the Borough.
C. 
By gifts, grants, devises or bequests granted to the Civil Employees Pension Fund.

§ 40-13 Designation of trustee.

[Amended 12-28-1972 by Ord. No. 1019; 6-23-1994 by Ord. No. 1237]
The trustee, Southeast National Bank, is changed to First Fidelity Bank or any other established institution as may be designated from time to time by Borough Council.

§ 40-14 Establishment of Civil Employees Pension Committee.

A Civil Employees Pension Committee is hereby established, which shall consist of four members, all of whom shall be appointed by Sharon Hill Borough Council. They shall consist of one member selected from Borough Council, one representative recommended by the regular employees (other than members of the police force) of the Borough, one citizen of the Borough of Sharon Hill, and the Borough Treasurer. The Committee members shall serve without compensation for a period of three years or until their successors are duly designated and appointed by Borough Council.

§ 40-15 Designation of actuary.

Huggins & Company, consulting actuaries, is designated as the actuary until its services are no longer required or its designation as such is terminated by action of Borough Council.

§ 40-16 Implementation of provisions.

A written civil employees pension plan shall be adopted by resolution. This shall implement this article.

§ 40-17 Committee to determine contributions and payments.

The Civil Employees Pension Committee, with the aid of the actuary and/or the trustee, when necessary, shall make the necessary determinations as to what contributions are to be made to the fund and also what payments are to be made out of the fund in accordance with the pension plan, and written instructions as to such payments shall be given by the Civil Employees Pension Committee to the persons affected.