[Adopted 12-2-1996 by Ord. No. 608 (Ch. 1, Part 4, of the
1987 Code of Ordinances)]
A.
AGE
ANNIVERSARY DATE
AVERAGE APPLICABLE COMPENSATION
BOROUGH
CHIEF ADMINISTRATIVE OFFICER
COMMITTEE
COMPENSATION
COUNCIL
EARLY RETIREMENT DATE
EFFECTIVE DATE
EMPLOYEE
FUND
MEMBER
NORMAL RETIREMENT DATE
(1)
(2)
PLAN
PLAN YEAR
SERVICE
TOTAL AND PERMANENT DISABILITY
TRUSTEE
As used in this article, the following terms shall have the meanings
indicated:
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
The average monthly earnings of the member at any time of
reference computed over the last 36 months (or such shorter period
as represents the member's total period of continuous employment
by the Borough) of his continuous employment by the Borough prior
to such date of reference; for purposes of computing average applicable
compensation, actual monthly earnings shall be based on W-2 earnings
in which all forms of earnings are derived from the terms and conditions
of the employee's employment.
The Borough of Collingdale, Delaware County, Commonwealth
of Pennsylvania.
The person who has primary responsibility for the execution
of the administrative affairs of this pension plan, or the designee
of that person.
Shall consist of not less than five members, who shall be
the Borough Secretary/Manager, the Chairman of Council's Financial
Committee, the President of Council, the Borough Treasurer and one
participant who is a member of the police force and who shall be chosen
by a majority vote of the participants in the plan.
Shall be based on W-2 earnings in which all forms of earnings
are derived from the terms and conditions of the employee's employment.
The Council of the Borough of Collingdale.
This plan does not provide for a retirement date prior to
normal retirement date.
Of this plan, shall be November 11, 1996.
Any sworn police officer in the full-time employ of the Borough
Police Department whose customary employment is for not less than
40 hours a week.
All assets held by the trust under the trust agreement relating
to this Police Pension Plan.
Any sworn police officer in the full-time employ of the Borough Police Department who has satisfied the eligibility requirements established in § 63-2 hereof and who is, at the time of reference, or has, prior to their elimination, been making such contributions as may be required pursuant to § 63-3A hereof.
[Amended 5-2-2016 by Ord. No. 711]
For those members hired prior to December 31, 2015, the first
day following the date on which the member completes 25 years of service
and the date on which the member attains age 53.
For members hired after December 31, 2015, the first day following
the date on which the member completes 25 years of service and the
date on which the member attains 55 years of age.
The Police Pension Plan for the Borough of Collingdale, as
herein set forth and as the same may hereafter be amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
The aggregate of member's total periods of employment
as a full-time employee of the Borough. If a member enters military
service, either voluntarily or by conscription, after he has been
employed for at least six months, such time spent in the armed forces
of the United States during a period of national emergency shall be
counted as service for purposes of the plan, provided that such member
returns to police service with the Borough within six months after
his discharge or release from such active duty in the armed forces
of the United States. The time spent in military service due to voluntary
extension of such military service during a period of peacetime shall
not be included as service for the purposes of this article. Time
spent on reserve or National Guard training shall be included as service
for purposes of this plan.
Any condition arising from service-connected illness or injury
which precludes an employee from performing the duties associated
with the normal occupational requirements of any position with the
Police Department, as certified by a physician designated by the Borough.
The Council of the Borough of Collingdale or any other agency
or person appointed by such to serve in that capacity as set forth
in the trust agreement.
B.
Wherever applicable as used herein, unless the context specifically
provides otherwise, the singular and plural shall be interchangeable,
and the masculine and feminine pronouns shall include either sex.
[Amended 7-7-2003 by Ord. No. 635]
A.
Contributions by members. Member shall pay into the fund at a rate of 5.0% of compensation. "Compensation" for this purpose shall be as defined in § 63-1 of the article. The Council may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members. Individual records of contributions by members shall be maintained, including all interest credited to an individual account. Interest to be credited shall be 6.0% compounded annually. Interest shall be credited from the end of the plan year in which paid to the end of the month after which a refund becomes payable.
B.
Refund of member's contributions. Any member who for any reason
shall be ineligible to receive a pension after having made contributions
shall be entitled to a refund of his individual account balance; such
refund is payable immediately upon discontinuance of his employment
with the police force or within a reasonable time (not more than 45
days after discontinuance). If such discontinuance is due to death,
then such refund shall be paid to his designated beneficiary or, in
the absence thereof, to his estate. If the disabled or retired member
is receiving a benefit by reason of disability or retirement, then
the refund payable to the beneficiary is equal to the individual account
balance at the date of disability or retirement, less any pension
payments made to the member.
C.
Deposits. Contributions by members shall be remitted to the trustee
monthly.
D.
State aid. The portion of the payments made by the State Treasurer
to the Borough and designated by the Council to be allocated to the
Police Pension Fund from money received from taxes paid upon premiums
by foreign casualty insurance companies for purposes of pension retirement
or disability benefits for policemen shall be used as follows:
E.
Borough contributions. Subject to the provisions and limitations
set forth in other sections of this article, the Borough shall contribute
the amounts certified to be necessary by the fund's actuary to
provide the benefits provided by this article.
F.
Contributions by members while on military service. A member who enters the military service during a time of national emergency either voluntarily or by conscription shall continue to make contributions to the plan as outlined in § 63-3A based on the compensation in effect on the last day of service with the Borough's Police Department. These contributions will continue throughout the length of his military service. During military service, the trustee shall continue to contribute to the fund for the officer's benefit. However, no contributions will be made either by or on behalf of a member who voluntarily extends his military service during peacetime.
G.
Other contributions. The fund shall be authorized to receive, by
gift, grant, devise or bequest, any money or property, real, personal
or mixed, in trust for the benefit of the fund. The trustee of the
fund shall be subject to such directions not inconsistent with this
article as the donors of such funds and property may prescribe.
[Amended 7-7-2003 by Ord. No. 635]
A.
Normal retirement. Each member may retire on or at any time after
his normal retirement date. Any member so retiring shall be entitled
to receive a monthly pension commencing as of the first day following
his date of actual retirement and ending with the payment made as
of the first day of the month which his death occurs. The monthly
pension to which such retired member shall be entitled to under this
article shall be equal to 50% of such member's average applicable
compensation. In addition to the monthly retirement benefit described
above, each member who has completed in excess of 25 years of service
shall receive an additional monthly pension benefit for each completed
year of service after 25 years of service as follows:
[Amended 4-2-2007 by Ord. No. 656]
(1)
For members who retire between January 1, 2007 and December 31, 2008,
the benefits shall be $100 per month for each completed year of service
in excess of 25 years, up to a maximum of $500 per month after five
completed years of service in excess of 25 years. This amount may
be paid in addition to the individual's normal retirement benefits.
(2)
For members who retire between January 1, 2009 and December 31, 2011,
the benefit shall be $100 per month for each completed year of service
in excess of 25 years up to a maximum of $300 per month after three
completed years of service in excess of 25 years. This amount may
be paid in addition to the individual's normal retirement benefits.
(3)
For members who retire after December 31, 2011, the benefit shall
be $100 per month for each completed year of service in excess of
25 years up to a maximum of $100 per month after one completed year
of service in excess of 25 years. This amount may be paid in addition
to the individual's normal retirement benefits.
(4)
Members who retire after December 31, 2015, shall receive a monthly
increase of $100 per month for completing a 26th year of service,
and an additional increase of $100 per month for members who complete
a 27th year of service. In no event should the maximum service increment
exceed $200 per month. This amount may be paid in addition to the
individual's normal retirement benefits.
[Added 5-2-2016 by Ord.
No. 711]
B.
Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any contributions required pursuant to § 63-3A hereof shall continue.
C.
Disability benefits. Effective January 1, 2016, if a member retires
because of a total and permanent disability, they shall be entitled
to receive 100% of their salary at the rate in effect at the time
the disability was incurred, if the member receives social security
disability (SSD) benefits for the same injury. The disability pension
shall be offset by the SSD received by the member.
[Amended 5-2-2016 by Ord.
No. 711]
(1)
If a member retires because of a total and permanent disability,
they shall receive 70% of the member's salary at the rate in
effect at the time the disability was incurred if the member does
not receive social security disability (SSD) benefits for the same
injury.
(2)
There shall be no offset for workers' compensation benefits
received by a member receiving a disability pension.
D.
Cost-of-living adjustment. There shall be a cost-of-living increase
provided to all members who retire; provided, however, that such cost-of-living
increase shall not exceed the percentage increase in the All Urban
Consumers CPI for the Philadelphia area for the year in which the
police officer last worked, whichever is less; provided, further,
that in no case shall the total police pension benefits exceed 75%
of the salary for computing retirement benefits; provided, further,
that the total cost-of-living increase shall not exceed 30%. No cost-of-living
increase(s) shall be granted which would impair the actuarial soundness
of the plan.
[Amended 7-7-2003 by Ord. No. 635]
A.
Death benefit if no surviving spouse nor dependent children. If a
member dies prior to the commencement of pension benefits, then his
designated beneficiary shall be entitled to a refund of his accumulated
member's contributions with credited interest. If no beneficiary
survives, then the refund is payable to the member's estate.
B.
Pension benefit to surviving spouse and dependent children. If a member dies survived by a spouse or dependent children after having become eligible to receive a pension benefit (i.e., he was eligible because 1) he was already receiving a pension; 2) he met the age and service requirements, but he had not yet retired), then a monthly pension benefit shall be provided. The amount of the monthly pension benefit shall be 50% of the pension the member was receiving or would have been entitled to receive if he had been retired at the time of his death. In the event a member dies after completing 12 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in § 63-6A. If a vested benefit is selected, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following the member's normal retirement date. The monthly pension benefit is payable to the surviving spouse until death, then to surviving dependent children under the age of 18 years or, if attending college, under or attaining the age of 23 years. "Attending college" shall mean the eligible children are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester. "Dependent children" shall include, stepchildren, adopted children, and any child conceived before the time of the member's death and thereafter born to the member's spouse.
C.
Preretirement survivor benefit. In the event a member is killed in service, the member's family shall receive the benefits provided for and subject to the terms of Act 51 of 2009, which benefits are paid exclusively by the Commonwealth of Pennsylvania, with the exception of any pension benefit to which the member was entitled prior to the member's death, solely by virtue of the member's service as a Borough police officer (i.e., either a normal, early or vested pension benefit). It is understood that "family" shall refer to the surviving spouse and dependent children. The benefit is payable to the surviving spouse until death, then to the surviving dependent children under the age of 18 years or, if attending college, under or attaining the age of 23 years. The terms "dependent children" and "attending college" shall be consistent with § 63-5B.
[Amended 5-6-2013 by Ord. No. 691]
If a member leaves the employ of the Borough or ceases to be a member, whether by reason of his transfer, resignation or discharge, or by reason of disability or retirement other than after becoming eligible for benefits pursuant to § 63-4 or 63-5 of this article, he shall be entitled to a refund of all contributions made by him and then on deposit in the fund, plus interest thereon, computed at the rate described in § 63-3A. However, a member who has completed 12 or more years of service may elect either Subsection A or B as described below:
A.
He may elect to leave his contributions, plus interest, in the fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Secretary of the Borough of Collingdale within 90 days of the date he ceases to be a full-time police officer, a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y), where (x) is the number of years of service at the date of termination and (y) is the number of years of service which the member would have had if he worked until normal retirement date, multiplied by the benefits described in § 63-4A. Years of service shall be measured in years and completed months.
B.
He may elect to receive a refund of all contributions made by him and then on deposit in the trust fund, plus interest thereon, computed at the rate described in § 63-3A. If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit outlined in Subsection A.
B.
The normal form of all benefits payable hereunder shall be a pension for the life of the member commencing on the date specified and ending with a payment made on the first day of the month in which the member dies, subject, however, to the payment of a death benefit calculated pursuant to § 63-5B.
A.
It is the duty of the trustee to pay the benefits to members and their beneficiaries as provided in §§ 63-4, 63-5 and 63-6 in accordance with the instructions received from the Council; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes.
B.
The Borough may employ an actuary, investment advisors, counsel or
other professional consultants from time to time in connection with
the operation of the fund or of this plan. Such persons or entities
shall be compensated by the Borough at such rates as may be agreed
upon by the Council. Such compensation may be paid from the fund.
C.
The trustee shall make an annual determination of the fair market
value of the fund as of the anniversary date and as of such additional
dates as the Council may direct. The fair market value of the fund
shall be reported to the actuary, who shall calculate the amount to
be contributed to the fund by the Borough with respect to each plan
year in accordance with the assumptions most recently adopted by the
Council for the purpose of such computations; provided, however, that
the liability of the Borough to make such contributions is subject
to all of the conditions and limitations set forth elsewhere in this
article.
A.
The plan shall be administered by the Council of the Borough of Collingdale.
The Council shall make and adopt rules and regulations for the efficient
administration of the plan.
B.
The Council shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provisions of the plan, and shall provide all such data, records and documents to the professionals whose services are employed pursuant to § 63-8B of this article.
C.
The Council shall construe the plan, shall determine any questions
or fact arising under the plan and shall make all decisions required
of it under the plan. Decisions and actions taken thereon in good
faith shall be final and conclusive. It may correct any defect or
supply any omission or reconcile any inconsistency in such manner
and to such extent as it shall be the sole judge of such expediency.
The Council shall act uniformly with respect to matters coming before
it concerning employees in similar circumstances.
D.
The members of the Council, and each of them, shall be free of all
liability for any act or omission except by willful misconduct or
gross negligence, and each of them shall be fully indemnified by the
Borough against all judgments not involving findings of their respective
personal or collective willful misconduct or gross negligence and
against all cost, including counsel fees, incurred in defense of actions
brought against them.
E.
The Council shall make available to members, retired members and
terminated members, and to their beneficiaries, for examination during
business hours, such records as pertain to the person examining.
F.
To enable the Council to perform its function, the Borough administration
shall supply full and timely information to it on all matters relating
to the pay of all members, their retirement, death, termination of
employment and such other pertinent facts as the Council may require.
G.
The Council shall enact such rules and regulations for the conduct
of its business and for the administration of the plan as it may consider
desirable, provided the same shall not be in conflict with any of
the provisions of the plan. All actions of the Council shall be taken
at meetings at which at least four members shall be present, or by
written resolutions concurred in by not less than four of its members,
and shall be the action of the entire Council. Written minutes shall
be kept of the meetings and action of the Council.
H.
The Secretary, acting on behalf of the Council, shall have the power
to execute all documents necessary to carry out the actions of the
Council, and any person, partnership, corporation or government agency
shall accept such documents over such signature or signatures as if
executed by the Council.
A.
The Council may appoint a committee, which shall be created to monitor
the operation of the fund and plan and to advise the Borough Manager
and Council on matters concerning the administration of the fund and
plan. The Committee shall review and supervise the investment and
expenditures of moneys in the fund and plan.
B.
The Committee so designated shall serve until death, resignation,
removal or disqualification. Any committee member may resign upon
written notice to the Council and the Committee. Any vacancies in
the Committee arising from resignation, death or removal shall be
filled by the Council (by the procedure set out herein for the committee
whose resignation, death or removal has created the vacancy).
C.
The Committee shall act by such procedure as the Committee shall
establish. All decisions of the Committee shall be by majority vote.
The Committee may authorize one of its members to execute any document
or documents on behalf of the Committee. The Committee may adopt such
bylaws and regulations as it deems necessary for the conduct of its
affairs and may appoint such accountants, counsel, actuaries, specialists
or such other person as it may deem advisable for the proper administration
of the plan. No such regulation, bylaw or appointment shall be effective
until such is approved by the Council, and the expenses incurred by
the retention of such professionals shall be subject to the prior
approval of the Council.
D.
The Committee shall keep a record of all proceedings and acts and
shall keep all such books of accounts, records and other data as shall
be necessary for the proper administration of the plan. All actions
of the Committee shall be communicated to the Council.
E.
All books, records, accounts, ledgers, transcripts, bank records,
assets and tangible property of value shall be kept and in the custody
of employer or any person designated by the President of the Council.
F.
The Committee members shall serve without compensation for their
services but shall be reimbursed for all reasonable expenses incurred
in the administration of the plan. Such expenses shall be subject
to the prior approval of the Council.
G.
No Committee member shall incur any liability for any action or failure
to act, accepting only liability for his/her own gross negligence
or willful misconduct. The employer shall indemnify each Committee
member against any and all claims, loss, damages, expense and liability
arising from any action or failure to act, except for such that is
the result of gross negligence or willful misconduct of such Committee.
H.
All checks, drafts, order to pay money, deposits of money and all
transactions concerning the receipt or disbursement of any money shall
be prepared by employer or any person designated by the President
of the Council.
A.
It is the expectation of the Borough that it will continue this pension
plan indefinitely, and will, from time to time, contribute to the
fund such amounts as may be needed to provide the benefits set forth
in the plan.
B.
The provisions of any ordinance establishing, amending or maintaining
the plan shall not be a charge on any other fund in the treasury of
the Borough or under its control, save the uniformed employees pension
fund herein provided for.
C.
Nothing contained in the plan shall be held or construed as a contract
or guarantee of employment nor to create any liability upon the Borough
to retain any person in its service. The Borough reserves the full
right to discontinue the service of any person without any liability
except for salary or wages that may be due and paid, whenever in its
judgment its best interests so require, and such discontinuance shall
be without regard to this article.
A.
The Borough may amend this plan from time to time as is necessary
to maintain its actuarial soundness and to incorporate changes in
plan benefits or entitlements. However, no amendment shall be made
which will, in any manner, divert any part of the fund to any purpose
other than the exclusive benefit of members or their beneficiaries
(except that, upon termination, such diversion may be made after all
of the fixed and contingent liabilities to members and their beneficiaries
have been met); nor shall any amendment be made at any time which
will in any manner divest any benefit then vested in a member or reduce
or eliminate a benefit to which a member has been given an expectation
by virtue of pension ordinance or pension calculations for retiring
officers who retired during the member's participation in this plan.
B.
In the event of termination of this plan, the Council shall allocate
the assets then remaining in the fund as follows:
(1)
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 63-3 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.
(2)
Contributions with interest at a rate established by the Council as provided in § 63-5 shall be refunded to any and all members who terminate service at the time of the termination of the fund.
A.
No benefit under this article shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge or encumbrance, nor
to seizure, attachment or other legal process for the debts of any
member or member's beneficiary. This provision shall not apply
to a "qualified domestic relations order" defined in Internal Revenue
Code Section 414(p), and those other domestic relations orders permitted
to be so treated by the Council under the provisions of the Retirement
Equity Act of 1984. The Borough shall establish a written procedure
to determine the qualified status of domestic relations orders to
administer distributions under such qualified orders. Further, to
the extent provided under a qualified domestic relations order, a
former spouse of a member shall be treated as the spouse or surviving
spouse for all purposes under this article.
B.
Any person dealing with the Borough may rely upon a copy of this
article and any amendments thereto certified to be true and correct
by the trustee.
C.
In no circumstances, whether upon amendment or termination of this
plan or otherwise, shall any part of the fund be used or diverted
to any purpose other than the exclusive benefit of members or their
beneficiaries until all of the actuarial obligations to such member
or member's beneficiaries have been met.
D.
If the Council deems any person incapable of receiving benefits to
which he is entitled by reason of minority, illness, infirmity or
other incapacity, it may make payment directly for the benefit of
such person to the guardian or trustee for said person, whose receipt
shall be complete acquittance therefor. Such payment shall, to the
extent therefor, discharge all liability of the Borough or the fund.
E.
Should any provision of this article be determined to be void by
any court, the plan will continue to operate and, to the extent necessary,
will be deemed not to include the provision determined to be void.
F.
Headings and captions provided herein are for convenience only and
shall not be deemed part of the plan.
G.
This article shall be construed and applied under the laws of the
Commonwealth of Pennsylvania where not in conflict with federal laws
which shall prevail.
H.
This article repeals all other ordinances prior to the date of its
enactment.