[HISTORY: Adopted by the Council of the Borough of Darby as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Officers and employees — See Ch. 19.
Police Department — See Ch. 24.
[Adopted 5-5-1982 by Ord. No. 609, approved 5-5-1982; amended in its entirety 11-3-2004 by Ord. No. 712A]
A. 
As used in this article, the following terms shall have the meanings indicated:
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any January 1 after the effective date.
AVERAGE APPLICABLE COMPENSATION
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 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.
BOROUGH
The Borough of Darby, Delaware County, Commonwealth of Pennsylvania.
CHIEF ADMINISTRATIVE OFFICER
The person who has primary responsibility for the execution of the administrative affairs of this pension plan, or the designee of that person.
COMPENSATION
Based on W-2 earnings in which all forms of earnings are derived from the terms and conditions of the employee's employment.
COUNCIL
The Council of the Borough of Darby.
EARLY RETIREMENT DATE
The first day following the date on which the member completes 20 years of service.
EFFECTIVE DATE
January 1, 2004.
EMPLOYEE
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.
FUND
All assets held by the trust under the trust agreement relating to this police pension plan.
MEMBER
Any sworn police officer in the full-time employ of the Borough Police Department who has satisfied the eligibility requirements established in § 26-2 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 § 26-3A hereof.
NORMAL RETIREMENT DATE
The first day following the date on which the member completes 25 years of service, and the date on which the member attains age 50.
PLAN
The police pension plan for the Borough of Darby, as herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.
SERVICE
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 wartime of general military conflict 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 or peacetime shall not be included as service for the purposes of this plan. Time spent on Reserve or National Guard Training shall be included as service for purposes of this plan.
TOTAL AND PERMANENT DISABILITY
Any condition arising from service-connected illness or injury which precludes an employee from performing the duties associated with the normal occupational requirements of a police officer as certified by a physician designated by the Borough.
TRUSTEE
The Council of the Borough of Darby 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 pronoun shall include either sex.
A. 
All persons who are employees (as defined in this plan) as of the effective date hereof shall be a member as of the effective date.
B. 
Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.
A. 
Contributions by members. Member shall pay into the fund at a rate of 5% of compensation. Compensation for this purpose shall be as defined in § 26-1. 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 his individual account. Interest to be credited shall be 4% compounded annually. Interest shall be credited from the end of the plan year in which paid to the last day 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:
(1) 
To reduce the unfunded liability, or, after such liability has been fully funded;
(2) 
To apply against the annual obligation of the Borough for future service costs, or to the extent that the payment may be in excess of such obligations;
(3) 
To reduce member contributions pursuant to Subsection A hereof.
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 plan.
F. 
Nonintervening military buyback.
(1) 
The plan provides full-service credit for each year of military service or fraction thereof, not to exceed five years, to a member who was not employed by the Borough prior to such military service, payable by the member.
(2) 
The member shall pay the amount for the purchase of credit for military service other than intervening military service shall be computed by applying the average normal cost rate for the plan as certified by the Public Employee Retirement Study Commission, but not to exceed 10%, to the member's average annual rate of compensation over the first three years of service and multiplying the result by the number of years and fractional part of a year of creditable nonintervening military service being purchased, together with interest at the rate of 4 3/4% compounded annually from the date of initial entry into service to the date of payment.
(3) 
A member of the plan shall be eligible to receive service credit for intervening or nonintervening military service, provided that he is not entitled to receive, eligible to receive then or in the future, or is receiving retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other governmental agency, with the exception of a member eligible to receive or is receiving military retirement pay earned by a combination of active duty and nonactive duty with a reserve or national guard component of the armed forces, which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Ch. 67 (relating to retired pay for nonregular service).
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 plan as the donors of such funds and property may prescribe.
A. 
Normal retirement.
(1) 
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 in which his death occurs. The monthly pension to which such retired member shall be entitled to under this plan shall be equal to 50% of such member's average applicable compensation.
(2) 
In addition to the monthly retirement benefit described above, each member who has completed 26 years of service shall receive an additional monthly pension benefit equal to a maximum of $100 per month.
B. 
Early retirement benefit. Each member may retire on or at any time after his early retirement date. Upon termination, the member must file with the Secretary of the Borough a written notice of his intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit as computed in § 26-6B. The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission.
C. 
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 § 26-3A hereof shall continue.
D. 
Disability benefit. If a member retires because of a total and permanent disability, he shall be entitled to receive a pension benefit equal to 70% of his salary at the time the disability was incurred, offset by any social security disability benefits received by the member for the same injury. "Salary" shall mean base, longevity, and night differential. The benefit will commence on the first day of the month following the month in which he retires. Council reserves the right to require disabled member to present evidence of total and permanent disability and of the continuance of such condition from time to time and either reserves the right to require members to submit to medical examinations by practitioner(s) selected by the Council as a precondition to the continued payment of benefits.
E. 
Cost of living adjustment. There shall be a cost of living adjustment provided to all members who retire. The annual cost of living adjustment shall not exceed 4% or the percentage increase for the calendar year in the All Urban Consumers CPI for the Philadelphia Metropolitan area, whichever is less. The adjustments shall be applicable each year; provided, however, in no case shall the total police pension benefits exceed 75% of the salary for computing retirement benefits and shall not cause the total cost of living adjustment to exceed 30%. No cost of living adjustment shall be granted which would impair the actuarial soundness of the pension fund. All adjustments shall be made in January and calculated on the twelve-month-percentage change in the consumer price index as of the previous October.
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.
(1) 
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: he was already receiving a pension; he met the age and service requirements, but he had not yet retired), then a monthly pension benefit shall be provided.
(2) 
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.
(3) 
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 § 26-6A. 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.
(4) 
In the event a member dies after completing 20 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 § 26-4B. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit commencing on the first day of the month following the election of this benefit.
(5) 
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 date 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 a pension calculated at 100% of the member's salary at the time of death. It is understood that family shall refer to the surviving spouse and dependent children and that salary shall mean base wage. 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 term "dependent children" and "attending college" shall be consistent with that of Subsection B.
A. 
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 § 26-4 or 26-5 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 § 26-3B.
B. 
However, a member who has completed 12 or more years of service may elect either Subsection B(1) or (2) as described below:
(1) 
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 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 § 26-4A. Years of service shall be measured in years and completed months.
(2) 
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 § 26-3B. If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit outlined in Subsection B(1).
A. 
Refund benefits becoming distributable pursuant to § 26-6A and death benefits becoming distributable pursuant to the provision of § 26-5A shall be paid in the form of a lump-sum distribution.
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 § 26-5B.
A. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 26-4, 26-5, and 26-6, 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 Council 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. 
Investment manager.
(1) 
The Council may, by an instrument in writing, appoint one or more persons as an investment manager and may delegate to an investment manager, from time to time the power to manage and control the investment of any plan asset. Each person appointed shall be:
(a) 
An investment advisor registered under the Investment Advisors Act of 1940;[1]
[1]
Editor's Note: See 15 U.S.C. § 80b-3.
(b) 
A bank as defined in that Act; or
(c) 
An insurance company qualified to manage, acquire or dispose of any asset of the plan under the laws of more than one state.
(2) 
Each investment manager shall acknowledge in writing that it is a fiduciary with respect to the plan. The Council shall enter into an agreement with each investment manager specifying the duties and compensation of such investment manager and other terms and conditions under which such investment manager shall be retained. The Council shall not be liable for any act or omission of any investment manager, and shall not be liable for following the advise of any investment manager, with respect to any duties delegated to the investment manager.
(3) 
The Council shall have the power to determine the amount of fund assets to be invested pursuant to the direction of a designated investment manager and to set investment objectives and guidelines for the investment manager.
D. 
Fair market value.
(1) 
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.
(2) 
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 plan.
A. 
The plan shall be administered by the Council of the Borough of Darby. 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 provision of the plan, and shall provide all such data, records and documents to the professionals whose services are employed pursuant to § 26-8B 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 to 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 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. 
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 employee's 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 plan.
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 § 26-3 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 § 26-5 shall be refunded to any and all members who terminate service at the time of the termination of the fund.
(3) 
Of the remaining funds, those which can be identified as municipality contributions or contributions other than from members or from the commonwealth allocation shall be distributed as the Council sees fit, provided that such distribution is in compliance with § 26-8.
(4) 
All funds in excess of the funds described in Subsection B(1), (2), and (3) above shall be returned to the commonwealth as unused funds pursuant to the Act of May 12, 1943, P.L. 259, as amended, 72 P.S. § 2263.1 et seq.
A. 
Benefits not to be encumbered.
(1) 
No benefit under this plan 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.
(2) 
This provision shall not apply to a "qualified domestic relations order" defined in 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 plan.
B. 
Any person dealing with the Borough may rely upon a copy of this plan 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 therefore, discharge all liability of the Borough, or the fund.
E. 
Should any provision of this plan 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 plan 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.
[Adopted 11-3-2004 by Ord. No. 712B, approved 11-3-2004]
A. 
As used in this article, the following terms shall have the meanings indicated:
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any January 1 after the effective date.
AVERAGE COMPENSATION
The average monthly salary of the employee at any time of reference computed over the final 60 months of compensation during his continuous employment by the Borough prior to such date of reference. W-2 wages will be used for purposes of computing the average compensation.
CHIEF ADMINISTRATIVE OFFICER
The person who has primary responsibility for the execution of the administrative affairs of this pension plan, or the designee of that person.
BOROUGH
The Borough of Darby, Delaware County, Commonwealth of Pennsylvania.
COUNCIL
The Council of the Borough of Darby, Delaware County, Commonwealth of Pennsylvania.
EARLY RETIREMENT DATE
The date upon reaching the age of 55 and the completion of 10 years of service.
EFFECTIVE DATE
January 1, 2004.
EMPLOYEE
Any person in the full-time employ of the Borough whose customary employment by the Borough is for not less than 35 hours a week. Such employment must be permanent; any person hired on a temporary or seasonal basis shall not be eligible for this plan.
FUND
All assets held by the trustee under the trust agreement relating to this pension plan.
MEMBER
Any employee who has satisfied the eligibility requirements established in § 26-14 hereof and who is, at the time of reference, making such contributions as may be required pursuant to § 26-15A hereof.
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following the date on which the member attains age 65.
PLAN
The Pension Plan for Nonuniformed Employees of the Borough of Darby, as herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.
SERVICE
The aggregate of a 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 this plan, provided such member returns to 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 purpose of this plan. Time spent on Reserve or National Guard Training shall be included as service for purposes of this plan.
TOTAL AND PERMANENT DISABILITY
Any condition arising from illness or injury (health, mental, or physical) which precludes the member from performing any gainful employment as certified by a physician designated by the Borough.
TRUST AGREEMENT
The contract between the Borough and the trustees establishing the terms by which and under which the fund is invested, distributed, accounted for and terminated, as the same now exists and as it may hereafter be amended.
TRUSTEE
The Council or any other agency or person appointed by the Council to serve in that capacity.
B. 
Wherever applicable as used herein, unless the context specifically provides otherwise, the singular and plural shall be interchangeable, and the masculine or feminine pronoun shall include either sex.
A. 
All persons who are employees (as defined in this plan) as of the effective date hereof shall be a member as of the effective date.
B. 
Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.
A. 
Contributions by members. Members are not required to contribute into the fund. However, the Council, at its own discretion, may require members to contribute in order to keep the fund actuarially sound. If contributions are required, members would contribute a percentage of their annual compensation. The Council, on an annual basis, will determine the percentage to be used in deducting members' contributions. Individual records of contributions by members shall be maintained, including all interest credited to the member's contribution account, interest to be credited shall be 3% annually.
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 the discontinuance of his employment with the Borough 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 retired member is receiving a benefit, then the refund payable to the beneficiary is equal to the individual account balance at the date of retirement, less any payments made to the member.
C. 
Deposits. Contributions by members (if any) shall be remitted to the trustee not less than monthly.
D. 
State aid. Payments made by the State Treasurer from the moneys received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement for members shall be used as follows:
(1) 
To reduce the unfunded liability, or, after such liability has been fully funded;
(2) 
To apply against the annual obligation of the Borough for future service costs, or to the extent that the payment may be in excess of such obligation;
(3) 
To reduce member contributions pursuant to § 26-15A hereof.
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 plan.
F. 
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 plan as the donors of such funds and property may prescribe.
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 of the month coincident with or next following his date of actual retirement and ending with the payment made as of the first day of the month in which his death occurs. The monthly pension to which such retired member shall be entitled under this plan shall be equal to 1.5% of such member's average compensation for each year of service, measured in years and completed months.
B. 
Early retirement. Each member may retire on or after his early retirement date. The benefit payable at the early retirement date shall be the benefit described in Subsection A reduced by the following for each year that the early retirement age precedes the normal retirement age:
Age
Reduction Factor
64
0.9333
63
0.8667
62
0.8000
61
0.7333
60
0.6667
59
0.6333
58
0.6000
57
0.5667
56
0.5333
55
0.5000
C. 
Late retirement.
(1) 
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 member on postponed retirement shall continue to make the contributions required pursuant to § 26-15A hereof. The benefit payable to the member as a result of choosing a late retirement shall be equal to the greater of the benefit described in Subsection A or his average compensation computed at his normal retirement date multiplied by his years of service measured in years and completed months, at his normal retirement date, multiplied by the factor shown below corresponding to the number of years his late retirement follows his normal retirement date.
Years
Factor
1
1.06
2
1.12
3
1.19
4
1.26
5
1.34
6
1.42
7
1.50
8
1.59
9
1.69
10
1.79
(2) 
The factor is adjusted for partially completed years of service.
D. 
Disability retirement. If a member retires because of a total and permanent disability, the benefit will be computed in the same manner as a normal retirement as described in Subsection A. In no event shall the disability benefit be less than $20 per month.
A. 
If a member is eligible to elect a normal retirement or an early retirement benefit and dies before electing said benefit, it will be presumed that he elected the benefit the day before he died.
B. 
A member who meets the qualifications for normal retirement or early retirement may file an application for said benefit, providing that the application becomes effective only upon his death. In the event no application is filed, it will be presumed the member had elected to retire on a 50% joint and survivor actuarial equivalent basis.
C. 
Death benefit if no surviving spouse. If a member dies and is not survived by a spouse, 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.
A. 
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 retirement other than after becoming eligible for benefits pursuant to § 26-16 or 26-17 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 § 26-15A. However, the member 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. The vesting percentage is determined from the schedule below:
Years of Vesting Service
Percentage
Less than 3
0%
3
20%
4
40%
5
60%
6
80%
7 or more
100%
B. 
The amount of the vested pension benefit shall be computed in accordance with § 26-16A as of the date of termination multiplied by the vesting percentage.
A. 
Refund of member contributions becoming distributable pursuant to § 26-18A shall be paid in the form of a lump sum distribution.
B. 
Options; death before receiving annuity.
(1) 
Options on normal, early, late retirement, disability or vesting. At the time a member elects to receive a retirement benefit allowance, the benefit is payable throughout the member's life, in which case the benefit is known as a single life annuity. The member may alternatively elect at the time of retirement, or prior to retirement, to receive a lump sum payment or the following actuarial equivalent value in a lesser allowance:
(a) 
Single life annuity. This is the normal form of benefit payment which provides a monthly annuity for the lifetime of the member. There are no death benefits provided. This form must have spousal consent.
(b) 
Life annuity with certain period. This optional form provides a monthly annuity for the lifetime of the member. If his death occurs before the end of a specified certain period of five, 10 or 15 years, the balance of the annuity payments for the certain period will be paid to his beneficiary. The certain period must be named by the member before his retirement date and cannot be changed after such date. The member may change his beneficiary at any time.
(c) 
Survivorship life annuity. This optional form provides a monthly annuity for the lifetime of the member. Upon his death, a percentage of 50%, 66 2/3%, or 100% of such annuity will continue for the lifetime of his contingent annuitant. The survivorship percentage and contingent annuitant must be named by the member before his retirement date and cannot be changed after such date. If the contingent annuitant dies before the member's retirement date, this optional form is canceled.
(2) 
Should a member who has elected a single life annuity die before receiving in annuity payments the full amount of the total accumulated member's contribution deductions standing to his credit in the member account on the effective date of retirement, the balance shall be paid to the designated beneficiary.
A. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 26-16, 26-17, 26-18, and 26-19 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 purpose.
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 plan.
A. 
The plan shall be administered by the Council. 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 trustee, the actuary and any other professional whose services are employed pursuant to § 26-20B of this article.
C. 
The Council shall construe the plan, shall determine any questions of fact arising under the plan and shall make all decisions required of it under the plan or the trust agreement and its construction thereof, and 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 deem expedient to carry the plan into effect, and it shall be the sole judge of such expediency. The Council shall act uniformly with respect to matter coming before it concerning employees in similar circumstances.
D. 
The Council shall serve without bond except as may be otherwise required by law and without compensation for its services as such.
E. 
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 judgements not involving findings of their respective personal or collective willful misconduct or gross negligence and against all costs, including counsel fees, incurred in defense of actions brought against them.
F. 
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.
G. 
To enable the Council to perform its functions, the Borough 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; and the Council shall advise the trustee of such of the foregoing facts as may be pertinent to the trustee's administration of the trust and shall give proper instructions to the trustee for the carrying out of the purposes of this plan.
H. 
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 two members shall be present, or by written resolution and any resolutions concurred in by not less than two of its members shall be the action of the entire Council. Written minutes shall be kept of the meetings and actions of the Council.
I. 
The Secretary, acting on behalf of the Council, or any two members 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. 
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; but continuance of the plan is not assumed as an obligation of the Borough, and the right is reserved by the Borough at any time to reduce, suspend or discontinue its contributions hereunder.
B. 
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 unpaid, whenever in its judgement its best interests so require, and such discontinuance shall be without regard to this plan.
A. 
The Borough may amend, curtail or terminate this plan at any time; provided, however, that no amendment affecting the trustee shall be made without its consent (other than an amendment having the effect of terminating the plan); nor shall any amendment 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, 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.
B. 
In the event of termination of this plan, the trustee, upon written instructions from the Council, shall allocate the assets then remaining in the fund, to the extent that such assets are sufficient, to members and retired members in the following order of precedence:
(1) 
To members and retired members in an amount equal to their respective contributions with interest, reduced in the cases of retired members by any prior distributions made to them.
(2) 
To provide benefits due retired members in the proportion that the pension earned by each such member bears to the total pensions earned for all such members.
(3) 
The remaining assets, if any, to each of the remaining members in the proportion that his pension credits earned to the date of termination bears to the total pension credits so earned for all such remaining members.
C. 
After allocation of the funds, the Council shall determine whether to operate the fund as the source of whatever payments the money so allocated will provide.
A. 
Benefits not to be encumbered.
(1) 
No benefit under this plan 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 members or member's beneficiary.
(2) 
This provision shall not apply to a "qualified domestic relations order" defined in 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. 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 plan.
B. 
Any person dealing with the trustee may rely upon a copy of this plan and any amendments thereto certified to be a true and correct copy by the trustee.
C. 
Anything heretofore contained in this plan to the contrary notwithstanding, it is the intention of the Borough that any action herein provided to be taken by the trustee shall be taken only in accordance with written instructions of the Council given in such detail as to preclude the exercise by the trustee of discretion in the performance thereof.
D. 
In no circumstances, whether upon amendment or termination of this plan or otherwise, shall any part of the fund be used for 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.
E. 
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 direct the trustee to make payment directly for the benefit of such person, or to any person selected by the Council to disburse it, whose receipt shall be a complete acquittance therefor. Such payment shall, to the extent therefor, discharge all liability of the Borough, the trustee and the fund.
F. 
Should any provision of this plan 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.
G. 
Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.
H. 
This plan shall be construed and applied under the laws of the Commonwealth of Pennsylvania where not in conflict with federal laws, which shall prevail.
I. 
All ordinances or resolutions or portions thereof inconsistent herewith are hereby repealed.