[HISTORY: Adopted by the Borough Council
of the Borough of Sayre as indicated in article histories. Amendments
noted where applicable.]
GENERAL REFERENCES
Civil Service Commission Rules and Regulations — See Ch. A181.
[Adopted 1-9-1967 by Ord. No. 429 as Ch.
33, Art I, of the 1967 Code]
[Amended 10-21-1991 by Ord. No. 686]
The Police Department of Sayre Borough is established
and may consist of a Chief, Lieutenant, Sergeant and patrolmen.
[Adopted 6-27-1985 by Ord. No. 607]
A Police Pension Fund is hereby established
pursuant to and in compliance with the Act of May 29, 1956, P.L. 1804,
as amended.[1] Such fund shall be applied under such regulations as the
Council may prescribe.
[1]
Editor's Note: See 53 P.S. § 767
et seq.
A.
COMMITTEE
COMPENSATION
CONTRIBUTION
COUNCIL
EMPLOYER
FUND
FUTURE SERVICE LIABILITY
PARTICIPANT
SERVICE IN THE AGGREGATE
TERMINATION
UNFUNDED LIABILITY
As used in this article, the following terms shall
have the meanings indicated:
The persons appointed to administer the Police Pension Fund
established pursuant to this article.[1]
The amount of moneys received by a participant in each and
every month, including longevity pay, service increments and shift
differential and also including overtime. Payments made for unused
vacation time will be also used for computation of retirement benefits.
Payments made for unused sick time will not be included for computation
of retirement benefits.
[Amended 7-6-1987 by Ord. No. 627]
The payroll deductions made monthly from the compensation of the participants and paid to the pension fund, except that "contributions" in § 27-7 shall mean the total contributions accumulated during the period of employment and participation in this fund.
[Amended 7-6-1987 by Ord. No. 627]
The governing body of the Borough of Sayre.
The Borough of Sayre.
The Police Pension Fund established pursuant to this article.
The value of any participant's benefits which shall accrue
by virtue of service in the aggregate rendered subsequent to the enactment
of this article.
Every person duly appointed from time to time by the municipality
as a full-time paid policeman working at least 40 hours per week at
a definite compensation, subject to reasonable vacation and sick leave.
[Amended 7-6-1987 by Ord. No. 627]
Total service, not necessarily continuous.
The cessation of services by the participant for any reason,
including disability, death, resignation and employer termination.
Voluntary leaves of absence without pay shall not be a "termination"
for purposes of this article, but no period of such leave shall be
computed in the total service in the aggregate for pension benefit
purposes. Leaves of absence with pay shall not be considered a "termination"
within the meaning of this article, and such leaves may be computed
in the total service in the aggregate for pension benefit purposes,
provided that the municipality is able to certify to the Department
of the Auditor General that such participant on a leave of absence
with pay is within the definition of "participant" herein.
The present value of any participant's benefits accrued prior
to the enactment of this article by virtue of his/her prior service
in the aggregate.
[1]
Editor's Note: The former definition of "actuarial
equivalent," which immediately preceded this definition, was repealed
10-27-1997 by Ord. No. 753.
B.
Whenever any words are used herein in the masculine
gender, they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply; and wherever
any words are used herein in the singular form, they shall be construed
as though they were also used in the plural form in all cases where
they would so apply.
A.
The Borough Council shall administer the Police Pension
Fund established by this article by such regulations as shall from
time to time be necessary for the effective maintenance of the fund,
provided that no regulation shall be contrary to the statutes of the
commonwealth pursuant to which this fund is established.
B.
The Borough Council shall appoint a Committee which
shall administer the pension fund established by this article according
to the regulations established pursuant to this section.
C.
The Committee shall consist of not fewer than five
members, which number shall include three Councilmen and two persons
chosen from and by the participants in the fund. All persons so designated
shall serve at the pleasure of the Council for terms of five years,
one to be appointed and replaced each year. 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 member of the Committee
whose resignation, death or removal has created the vacancy.
D.
The Committee shall act by such procedure as the Committee
shall establish, provided that all decisions 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 bylaws and regulations as it deems necessary for the conduct
of its affairs and may appoint such accountants, counsel, specialists
or such other persons as it may deem desirable for the proper administration
of the pension fund, provided that no such regulation, bylaw or appointment
shall be effective until such is approved by the Council.
E.
The Committee shall keep a record of all of its 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 pension
fund. All actions of the Committee shall be communicated to the Council.
F.
The members of the Committee shall serve without compensation
for their services; but all such reasonable expenses incurred in the
administration of the fund, including but not limited to fees for
the services of specialists, including actuaries accountants and legal
counsel, may be reimbursed, provided that such expenses shall be subject
to the prior approval of the Council.
[Amended 10-21-1991 by Ord. No. 686]
G.
No member of the Committee shall incur any liability
for any action or failure to act, except only liability for his own
gross negligence or willful misconduct. The employer shall indemnify
each member of the Committee 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 member.
A.
Eligibility for normal retirement.
(1)
Every participant in the pension fund may retire from
active duty, provided that he/she has completed 25 years of service
in the aggregate with the employer and that he/she has attained the
age of 50 years.
[Amended 7-19-1993 by Ord. No. 702]
(2)
If there is any participant in the fund who was a
member of the police force of the employer prior to December 21, 1965,
he/she may retire at his/her option, provided that he/she has completed
20 years of service in the aggregate with the employer and that he/she
has attained the age of 60 years. But if the municipality had a Police
Pension Fund Ordinance or Resolution providing for an age of 55 years
and 20 years of service in the aggregate with the employer, then such
age shall be that which is required for a member hired prior to that
date.
[Amended 10-21-1991 by Ord. No. 686]
B.
Normal retirement benefits.
(1)
Each participant who shall complete the age and service eligibility requirements as set out in Subsection A shall receive a pension for life payable in equal monthly installments in an amount equal to 1/2 of the participant's average monthly compensation, based on his/her last 36 months of employment, or that percentage and based on that number of months as shall be prescribed by statute of the commonwealth subsequent to the adoption of this article.
[Amended 7-6-1987 by Ord. No. 627]
(2)
Such pension shall be payable from the assets of the
fund established pursuant to this article.
C.
Death prior to retirement or retirement eligibility. The beneficiaries designated by the participant pursuant to Subsection I herein shall be entitled to the death benefit incidental to a policy of insurance purchased primarily to fund the pension of the participant, provided that the participant at the time of his/her death is not retired or eligible to retire according to the terms in Subsection B.
D.
Death after retirement or retirement eligibility.
[Amended 12-16-2002 by Ord. No. 816]
(1)
The surviving spouse of a member of the police force
or a member who retires on pension who dies, or if no spouse survives,
or if he or she survives and subsequently dies, then the child or
children under the age of 18 years or if attending college, under
or attaining the age of 23 years, of a member of the police force
of a member who retires on pension who dies, shall, during his or
her lifetime, in the case of a surviving spouse, or until reaching
the age of 18 years, or if attending college, under or attaining the
age of 23 years, in the case of a child or children, be entitled to
receive a pension calculated at no less than 50% of the pension the
member was receiving or would have been receiving had he or she been
retired at the time of death.
(2)
The surviving spouse of a member of the police force
who dies before his or her pension has vested, or if no spouse survives,
or if he or she survives and subsequently dies, the child or children
under the age of 18 years, or if attending college, under of attaining
the age of 23 years, of the member of the police force shall be entitled
to receive repayment of all money which the member invested in the
pension fund plus interest or other increases in value of the member's
investment in the pension fund, unless the member has designated another
beneficiary for this purpose provided the officer's death was on or
after April 17, 2002.
(3)
The surviving spouse of a member of the police force
who is killed in service in the line of service, or if no spouse survives,
or if he or she survives and subsequently dies, the child or children
under the age of 18 years, or if attending college, under or attaining
the age of 23 years, of the member of the police force shall be entitled
to receive a pension calculated at 100% of the member's salary at
the time of death. Pursuant to Act 51 of 2009, such pension benefit
shall be the sole responsibility of and shall be paid by the Commonwealth
of Pennsylvania from its General Fund and shall not be the responsibility
of the Plan.
[Amended 12-18-2012 by Ord. No. 895]
(4)
For purposes of this subsection, the phrase "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.
(5)
Insofar as these amendments affect the benefits available
to surviving spouses, the amendments shall apply to surviving spouses
whose spouse died on or before April 17, 2002, and who were not remarried
as of that date.
E.
Additional pension credits. A service increment pension
of $100 per month shall be provided to retired participants for one
year completed service in excess of 25 years. This monthly retirement
benefit shall be a minimum of $100 per month or the maximum allowed
by law and shall be for only one year additional service past the
retirement date.
[Amended 7-6-1987 by Ord. No. 627; 7-19-1993 by Ord. No.
702]
F.
Disability benefits.
[Amended 7-6-1987 by Ord. No. 627; 10-27-1997 by Ord. No.
753]
(1)
In the event of a participant's permanent disability,
such participant may become eligible for a monthly disability pension.
The Council shall designate a physician to represent and certify to
the Council such disability as permanent and service connected. Such
disability pension shall commence when the participant has been declared
permanently disabled. "Disability" shall mean a physical or mental
condition of a participant which qualifies a participant for disability
benefits under the federal social security and/or workmen's compensation
programs.
(2)
Monthly permanent disability pension payments for
a service connected disability shall be in an amount equal to 75%
of the participant's monthly compensation, based on the participant's
last 36 months of compensation.
(3)
Any member of the police force on or after April 17,
2002, who suffers a permanent injury incurred in service shall receive
a pension calculated at a rate of no less than 50% of the member's
salary at the time the disability was incurred, provided that any
member who receives benefits for the same injuries under the Social
Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall
have his or her disability benefit offset or reduced by the amount
of such benefit.
[Added 12-16-2002 by Ord. No. 816]
G.
Cost-of-living adjustment. A cost-of-living increase
shall be granted to current and future retirees, provided that four
requirements are met:
(1)
The cost-of-living increase shall not exceed the percentage
increase in the consumer price index from the year in which the participant
last worked.
(2)
In no case may the total police pension benefits exceed
75% of the participant's compensation for computing retirement benefits.
[Amended 7-6-1987 by Ord. No. 627]
(3)
The retired participant's total cost-of-living increase
shall not exceed 30%.
(4)
No cost-of-living increase shall be granted which
would impair the actuarial soundness of the pension fund.
H.
Vested benefit.
(1)
Should a participant, before reaching superannuation
retirement age and service requirements but after having completed
12 years of total service, for any reason cease to be employed as
a full-time police officer by the Borough of Sayre in whose pension
fund he/she has been a participant, he/she shall be entitled to vest
his/her retirement benefits by filing with the Council within 90 days
of the date he/she ceases to be a full-time police officer a written
notice of his/her intention to vest.
(2)
Upon reaching the date which would have been his/her
superannuation retirement date if he/she had continued to be employed
as a full-time police officer, he/she shall be paid a partial superannuation
retirement allowance determined by applying the percentage that his/her
years of service bears to the years of service which he/she would
have rendered had he/she continued to work until his/her superannuation
retirement date to the gross pension, using, however, the monthly
average compensation during the appropriate period prior to his/her
termination of employment.
[Amended 7-6-1987 by Ord. No. 627]
I.
Designation of beneficiaries.
(1)
Each participant shall have the right to name the
beneficiary or beneficiaries for preretirement death benefits incidental
to policies of insurance purchased primarily to fund the participant's
pension, provided that the ownership of such policies shall remain
in the municipality's governing body and shall be endorsed to prevent
the assignment of ownership to the insured. If the participant shall
fail to name a beneficiary, such benefits as would have accrued to
his/her beneficiaries shall be paid to the participant's estate.
(2)
Each participant may from time to time change the
beneficiary or beneficiaries in such form and manner as shall be prescribed
by the Committee.[2]
[2]
Editor's Note: Former Subsection J, Actuarially
equivalent benefits, which immediately followed this subsection, was
repealed 10-27-1997 by Ord. No. 753.
J.
Nonalienation of benefits and vesting.
(1)
No benefit under the plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, nor shall any such benefits be in any manner
liable for or subject to garnishment, attachment, execution, levy
or other legal process.
(2)
Further, all benefits granted herein shall vest in
the participant upon completion of the requirements for eligibility,
and his/her benefits shall continue in the amount and in the form
in which he/she first became entitled to them.
A.
Contributions of participants (positions not covered
by social security). Where positions covered by the fund are not included
in an agreement under the Federal Social Security Act, the amount
of the participant's contributions monthly shall be not less than
5% nor more than 8% of monthly compensation.
[Amended 12-29-1986 by Ord. No. 618; 10-21-1991 by Ord. No.
686]
B.
Reduction or elimination of participant's contributions.
The governing body of the Borough of Sayre may, on an annual basis,
by ordinance or resolution, reduce or eliminate payments into the
fund by members without the necessity of conducting an actuarial study.
[Amended 10-21-1991 by Ord. No. 686; 12-16-2002 by Ord. No.
816]
C.
Contributions of the municipality.
(1)
Past service liability. It shall be the obligation
of the municipality to fund the past service liability as determined
by the actuary, provided that such liability may be funded over a
period not to exceed 25 years. The 25 years commences with the passage
of this article.
(2)
Future service cost. The municipality shall have no
liability for the future service costs of the pension fund unless
such costs are not met by the allocation of commonwealth funds and
the participants' contributions. The maintenance of the actuarial
soundness shall be the responsibility of the municipality.
(3)
Administrative expenses. It shall be the liability
of the municipality to pay the administrative expenses incurred in
the management of the fund. No funds paid for the purposes of funding
pensions shall be used to pay administrative costs except as permitted
under Act 205 of December 18, 1984.[1]
[1]
Editor's Note: See 53 P.S. § 895.101
et seq.
D.
Allocation of commonwealth funds. The payments made
by the State Treasurer to the municipality from the moneys received
from the taxes paid on the premiums of foreign casualty insurance
companies for purposes of pension retirement or disability benefits
for policemen shall be used as follows: to reduce the unfunded liability
or, after such liability is funded, to apply against the annual obligation
of the municipality for future service cost or, to the extent that
payments may be in excess of such obligation, to reduce participants'
contributions.
E.
Gifts, requests and grants. All other moneys and property
received by the Committee, including gifts, bequests, devises and
grants, shall, unless otherwise specifically provided, be applied
equally against the participant and the municipality portions of the
future service cost.
F.
Allocation of assets of existing pension fund(s).
Any assets of any existing pension fund for the members of the municipality's
Police Department are hereby transferred to the fund established by
this article and shall be applied against the unfunded liability.
A.
If for any reason a member of the police force of
the municipality shall terminate service with the municipality, that
member shall be entitled to a refund of contributions plus interest
at a rate of 5% per annum. Such interest shall be uniform for all
participants.
B.
If a member shall subsequently return to service and return the contributions to the fund which were refunded to him/her upon termination, he/she shall be entitled to credit for the prior years of service to the extent of the return of contributions. Nothing in this section shall be construed to allow credit for service not actually given to the municipality except as specifically provided in § 27-8.
Any member of the police force of the municipality
for at least six months who thereafter shall enter the military service
of the United States shall have credited to his/her employment record
for pension benefits all of the time spent by him/her in such military
service, if such person returns to his/her employment with the municipality
within six months after his/her separation from the military service.
Upon termination of the fund, the assets shall
be distributed as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 27-5B for all participants who have retired prior to termination of the fund or who are eligible for retirement at the time of the termination of this fund.
B.
Contributions with interest at a rate established by the Committee as provided in § 27-7 shall be refunded to any and all participants who terminate service at the time of the termination of this fund.
C.
Of the remaining funds, those which can be identified
as municipality contributions or contributions other than from participants
or from the commonwealth allocation shall be distributed as the Council
sees fit.
A.
Neither the establishment of the plan hereby created
nor any modification thereof nor the creation of any fund or account
nor the payment of any benefits shall be construed as giving any participant
or other person any legal or equitable right against the municipality
or any officer or employee thereof or the Committee, except as herein
provided. Under no circumstances shall the fund created hereby constitute
a contract for continuing employment for any participant or in any
manner obligate the municipality to continue or discontinue the services
of an employee.
B.
This plan has been established and shall be maintained
by the municipality in accordance with the law of the Commonwealth
of Pennsylvania. The plan shall, in accordance with the law, continue
for such period as may be required by such law, and should such law
provide that the municipality may, by its own action, discontinue
this plan, the municipality reserves the right to take such action
in its sole and absolute discretion. Upon termination, the municipality
shall have no liability hereunder other than that imposed by law.
A.
All investments by the Committee of the assets of
this fund shall comply with the Fiduciaries Investment Act of 1949,
as amended, and such regulations as the Council shall establish for
the purpose of investing such funds. Notwithstanding, all investments
made by the Committee are subject to approval by the Council.
B.
The Committee may also purchase annuities or other
contracts or insurance which provide a cash value with which to fund
pensions, provided that the Council shall determine the value of any
policies purchased, the company with which the contracts shall be
made and the time to purchase such policies. The Council shall also
have the obligation to ensure that the policies purchased provide
benefits on a uniform scale and that such policies are endorsed to
the ownership of the municipality.
The Council reserves the right to amend at any
time, in whole or in part, any or all of the provisions of this fund.
However, no such amendment shall authorize or permit any part of the
fund to be used or diverted to purposes other than for the exclusive
benefit of the participants, their beneficiaries or their estates,
nor shall any amendment divest a participant of benefits vested by
§ 27-5K. All such amendments shall comply with the applicable
statutes of the commonwealth, including but not limited to the Act
of May 29, 1956, P.L. (1955) 1804, as amended, 53 P.S. § 767
et seq.
A.
This plan shall be constructed according to the laws
of the Commonwealth of Pennsylvania, and all provisions hereof shall
be administered according to the laws of such commonwealth.
B.
Headings of sections and paragraphs of this instrument
are inserted for convenience of reference. They constitute no part
of this plan and are not to be considered in the construction thereof.
[Added 10-16-2000 by Ord. No. 789]
The early retirement benefit shall be provided
to a member of the police force with 20 or more years of service who
terminates employment prior to the completion of superannuation retirement
age and service requirements and who files a written application for
an early retirement benefit with the governing body of the municipality
or regional police department. The early retirement benefit shall
become effective as of the date the application is filed with the
governing body or the date designed on the application, whichever
is later, and shall be the actuarial equivalent of a partial superannuation
retirement benefit calculated as follows:
A.
A partial superannuation retirement benefit shall
be determined by applying the percentage that the member's years of
service bear to the years of service that the member would have rendered
had the member continued to be employed until his superannuation retirement
date to the gross pension amount calculated using the monthly average
salary during the appropriate period prior to his termination of employment.
B.
The actuarial equivalent of the partial superannuation
retirement benefit shall be determined by actuarially reducing the
partial superannuation retirement benefit to reflect that it will
commence on the effective date of the early retirement rather than
on the date on which the member would have completed superannuation
age and service requirements. The actuarial reduction shall be calculated
using the actuarial assumptions reported in the last actuarial valuation
report filed with the Public Employee Retirement Commission under
the Act of December 18, 1984 (P.L. 1005, No. 205), known as the "Municipal
Pension Plan Funding Standard and Recovery Act."[1]
[1]
Editor's Note: See 53 P.S. § 895.101
et seq.
[Added 8-28-2019 by Ord.
No. 959]
A.
DROP
DROP PARTICIPANT ACCOUNT
MEMBER
PARTICIPANT
PLAN
Definitions. As used in this section, the following terms shall have
the meanings indicated:
The Deferred Retirement Option Plan created as an optional
form of benefit under the existing Sayre Borough Police Pension Plan.
A separate ledger account created to accumulate the DROP
pension benefit for a DROP participant.
A full-time Sayre Borough police officer covered by the Plan.
A member who is eligible for normal retirement and who has
elected to participate in the DROP program.
The Sayre Borough Police Pension Plan adopted pursuant to
Act 600.
B.
DROP provisions.
(1)
Eligibility. Effective January 1, 2020, members of the Sayre Borough
Police Department who have not yet retired prior to the implementation
of the DROP program, may enter into the DROP on the first day of any
month following the attainment of age 50 and the completion of 25
or more years of credited service with Sayre Borough.
(2)
Written election. An eligible member of the Plan electing to participate
in the DROP program must complete and execute a "DROP election form"
prepared by Sayre Borough and/or the pension plan administrator, which
shall evidence the member's participation in the DROP program,
and document the participant's rights and obligations under the
DROP. The form must be signed by the member and the Chief Administrative
Officer of the Plan and submitted to Sayre Borough, Bradford County,
Pennsylvania, at least 30 days prior to the member's effective
date of retirement. The DROP election form shall include an irrevocable
notice to the Sayre Borough by the member that the member shall terminate
from employment with the Sayre Borough Police Department effective
on a specific date not less than one year nor more than five years
from the effective date of the DROP election. In addition, all retirement
documents required by the Sayre Borough Police Pension Plan Administrator
must be filed and presented to the Sayre Borough Council for approval
of retirement and commencement of the monthly pension benefit. Once
the retirement application has been approved by the Borough Council,
it shall become irrevocable.
(a)
After a member enters the DROP program, contributions to the
pension plan by the participant and the Borough will cease, and the
amount of monthly benefits will be frozen except for any applicable
cost-of-living adjustment (COLA) increases awarded to all pension
recipients.
(b)
Members shall be advised to consult a tax advisor, of their
choice, prior to considering the DROP program, as there may be serious
tax implications and/or consequences to participating in the DROP
program.
(3)
Limitation on pension accrual. After the effective date of the DROP
election, the participant shall no longer earn or accrue additional
years of continuous service for pension purposes.
(4)
Benefit calculation. For all Plan purposes, continuous service of
a member participating in the DROP program shall remain as it existed
on the effective date of commencement of participation in the DROP
program. Service thereafter shall not be recognized or used for the
calculation or determination of any benefits payable by the Sayre
Borough Police Pension Plan. The average monthly pay of the member
for pension calculation purposes shall remain as it existed on the
effective date of commencement of participation in the DROP program.
Earnings or increases in earnings thereafter shall not be recognized
or used for the calculation or determination of any benefits payable
by the Plan. The pension benefit payable to the participants shall
increase only as a result of cost-of-living adjustments (COLAs), which
are effective on or after the date of the member's participation
in the DROP program.
(5)
Payments to DROP participant account. The monthly retirement benefits
that would have been payable had the member elected to cease employment
and receive a normal retirement benefit shall, upon the member commencing
participation in the DROP program, be credited on the first day of
each month into a separate ledger account established by the Plan
Administrator to track and accumulate the participant's monthly
pension benefits. This account shall be designated the DROP participant
account. Interest shall be compounded and credited monthly at an annual
rate of 2%. All interest credited to the DROP participant account
shall be included in the final cash settlement.
(6)
Early termination. A participant may withdraw from the DROP program
at any time and no penalty shall be imposed for early termination
of DROP participation. However, the participant shall not be permitted
to make any withdrawals from the DROP participant Account until DROP
participation has ended.
(7)
Payout. Upon the termination date set forth in the DROP election
form or on such date as the participant withdraws or is terminated
from the DROP program, if earlier, the normal retirement benefits
payable to the participant or the participant's beneficiary,
if applicable, shall be paid directly to the participant or beneficiary
and shall no longer be credited to the DROP participant account. Within
45 days following the actual termination of a participant's employment
with Sayre Borough, the accumulated balance in the DROP participant
account shall be paid to the participant in a single lump-sum payment.
Such payment shall be made either in cash, subject to any federal
withholding as may be required, or as a direct rollover to an Individual
Retirement Account (IRA). If the participant or beneficiary fails
to elect a method of payment within 60 days after the participant's
termination date, the retirement system shall pay the balance as a
lump sum.
(8)
Disability during DROP. If a participant becomes temporarily disabled
during the DROP period, the participation freezes and the time period
while on temporary disability does not count towards the selected
DROP participation period. Upon return to duty, the DROP period shall
resume, continuing with the remaining time left in the DROP period.
The participant shall receive disability pay in the same manner as
disabled police officers that are NOT participating in DROP. In no
event shall a participant on temporary disability have the ability
to draw from the DROP participant account. However, notwithstanding
any other provision in this subsection, if an officer is disabled
and has not returned to work as of the date of the required resignation,
then such resignation shall take precedence over all other provisions
herein, and said officer shall be required to resign. If a DROP participant
becomes eligible for a disability pension benefit due to a permanent,
service-related disability under Act 600 and terminates employment,
the monthly normal retirement benefit shall cease.
(9)
Death. If a participant dies before the DROP participant account
balance is paid, the participants' beneficiary under Act 600
shall have the same rights as the participant to withdraw the DROP
participant account balance. The monthly benefit credited to the participant's
DROP participant Account during the month of the participant's
death shall be the final monthly benefit for DROP participation.
(10)
Killed-in-service survivor benefit. If a participant is killed
in service, the participant's beneficiaries under Act 600 shall
be entitled to apply to the Commonwealth of Pennsylvania and receive
a recalculation for payment of survivor benefits at 100% of the participant's
salary at the time of death.
(11)
Amendment. Any amendments to this DROP Ordinance shall be consistent
with the provisions covering deferred retirement option plans set
forth in any applicable collective bargaining agreement or state or
federal law, and shall be binding upon all future participants and
upon all participants who have balances in their DROP participant
accounts.
C.
Effective date. The effective date of the changes described in this
section is January 1, 2020; however, the implementation of the DROP
program will be as provided in this section.
D.
Severability: The provisions of this section 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 this
section shall not be affected thereby. It is hereby expressly declared
as the intent of Sayre Borough, Bradford County, Pennsylvania that
this section has been adopted as if such unconstitutional or illegal
provision or provisions had not been included herein.
E.
Pending legislation: In the event that the DROP provision is declared invalid or illegal by a court of competent jurisdiction or through an administrative determination of the Office of the Auditor General, the police officers shall have the right to bargain in accordance with Act 111 over deletion of this benefit. It is expressly understood that this shall not involve bargaining over a replacement provision. The provisions of this section are written to comply with Chapter 11 of Act 44 of 2009.
