[Adopted 10-28-1991 by Ord. No. 91-45;
amended in its entirety 10-18-1999 by Ord. No. 99-28]
As used in this article, the following terms
shall have the meanings indicated:
As of any given date, the benefit determined under § 62-18B, calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the aggregate service which would be credited to the participant as of his/her normal retirement date if s/he were to continue to be employed as an employee until such date. In no event shall this fraction exceed 1.0.
The total amount contributed by any participant to this fund
or its predecessor by way of payroll deduction, plus interest credited
at 2% per annum. Such interest shall be credited annually in the form
of a compound interest rate from the last day of the plan year in
which the contribution is deposited up to the first day of the month
in which the participant's employment is terminated.
The Municipal Pension Plan Funding Standard and Recovery
Act, enacted as P.L. 1005 (Act 205 of 1984), as amended.[1]
For a participant who has not attained his/her normal retirement
date, the date on which the participant has completed 20 years of
service, regardless of age, pursuant to Act 24 of 1998,[2] as may be amended from time to time.
[Added 6-17-2002 by Ord. No. 2002-21; amended 11-12-2018 by Ord. No.
2018-12]
Two forms of payment of equal actuarial present value on
a specified date based on mortality according to the UP-1984 Mortality
Table and an interest rate of 7%.
The person, partnership, association or corporation which
at any given time is serving as Actuary, provided that such Actuary
must be an Approved Actuary as defined in the Act.
The total period or periods of the participant's employment as a sworn police officer with the employer, whether or not interrupted; provided, however, that for purposes only of qualifying for service increment benefits under § 62-18C of the Township Code, aggregate service shall be the total period or periods of the participant's employment as a sworn police officer plus as an employee as defined in § 62-1 of the Township Code. Notwithstanding the preceding sentence, should any such participant receive a distribution of his/her accumulated contributions with respect to a period of employment, such period of employment shall not be included in his/her aggregate service thereafter unless, at the commencement of his/her next period of employment, he repays to the fund the amount of such withdrawal with interest. For purposes of this definition, interest shall accrue as of the date the employee receives a refund of his/her accumulated contributions and shall be computed at an interest rate of 7% and in the same manner as described in the definition of "accumulated contributions."
[Amended 3-8-2004 by Ord. No. 2004-4]
The total compensation of the employee, whether salary or
hourly wages, including overtime pay, holiday pay, longevity pay and
any other form of compensation paid by the employer for police services
rendered, but shall exclude extra duty pay and uniform allowances.
Basic monthly earnings shall also include fixed, periodic amounts
paid for periods during which the participant is not actively employed
as a member of the employer's regular full-time police force, which
amounts are paid directly by the employer or through a program to
which the employer has made contributions on behalf of the employee,
other than under this plan (including, without limitation, workers'
compensation and payments made under or pursuant to the Pennsylvania
Heart and Lung Act, the Family and Medical Leave Act of 1993 and other
applicable laws). The compensation used in determining an employee's
basic monthly earnings shall be limited on an annual basis to the
amount specified for government plans pursuant to Code Section 401(a)(17),
as adjusted under Code Section 415(d).
[Amended 3-8-2004 by Ord. No. 2004-4]
The person or entity designated by the participant to receive
a refund of the participant's accumulated contributions should the
participant die prior to becoming entitled to a retirement benefit.
In the event that a participant does not designate a beneficiary or
his/her beneficiary does not survive him, his/her beneficiary shall
be his/her surviving spouse; or if there is no surviving spouse, his/her
issue, per stirpes; or if there is no surviving spouse or surviving
issue, his/her parents, if then surviving, or if there is no surviving
spouse, issue or parents, his/her brothers and sisters, if then surviving,
or if there is no surviving spouse, issue, parents or brothers or
sisters, his/her estate; but if no personal representative has been
appointed, to those persons who would be entitled to his/her estate
under the intestacy laws of the Commonwealth of Pennsylvania if s/he
had died intestate and a resident of Pennsylvania.
The Board of Commissioners of the Township of Radnor.
The Township Manager (Manager) appointed by the Board.
The Internal Revenue Code of 1986, as amended.
The date on which a participant is determined by the Plan
Administrator to be incapacitated due to total and permanent disability
or, if later, the date on which the participant's employment terminates
because of such total and permanent disability.
Any individual employed by the employer on a regular, full-time,
nonseasonal basis as a sworn officer of the employer's police force.
For purposes of this definition, "employed on a full-time basis" means
that the individual is regularly scheduled to work a minimum of 40
hours per week.
Radnor Township, a home rule municipality located in Delaware
County, Pennsylvania.
For purposes of determining aggregate service, shall mean:
[Amended 6-17-2012 by Ord. No. 2002-21; 11-12-2018 by Ord. No. 2018-12]
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer;
Any period of time for which an employee is paid a fixed, periodic
amount in the nature of salary continuation payments for reasons other
than the performance of duties (such as vacation, holidays, sickness,
entitlement to benefits under workers' compensation and the Heart
and Lung Act, the Family and Medical Leave Act of 1993 or other laws),
either directly by the employer or through a program to which the
employer has made contributions on behalf of the employee, excepting
any time during which the employee is entitled to benefits under this
plan; and
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that:
The participant had been employed as a regular, full-time member
of the employer's police force for a period of at least six months
immediately prior to the period of military service; and
The participant returns to employment within six months following
his/her discharge from military service or within such longer period
during which his/her employment rights are guaranteed by applicable
law or under the terms of a collective bargaining agreement with the
employer.
For plan years beginning January 1, 2001, any period of qualified
military service as determined under the requirements of Chapter 43
of Title 38, United States Code, provided that the participant returns
to employment following such period of qualified military service,
and the participant makes payment to the plan in an amount equal to
the employee contributions that would otherwise have been paid to
the plan during such period of qualified military service. The amount
of employee contributions shall be based upon an estimate of the compensation
that would have been paid to the participant during such period of
qualified military service as determined by the average compensation
paid to the participant during the 12 months immediately preceding
the period of qualified military service. The amount of employee contributions
so calculated must be paid into the plan before the end of the period
that begins on the date of reemployment and ends on the earlier of
the date that ends the period that has a duration of three times the
period of qualified military service or the date that is five years
after the date of reemployment.
The average monthly salary as defined in this
section earned by the participant and paid by the employer during
the final 36 months immediately preceding retirement. Any single sum
payments for accumulated but unused sick time or back pay awards shall
not be included in the calculation of final monthly average salary.
Final monthly average salary shall be calculated
by taking into account only those periods during which an employee
receives salary, as that term is defined in this section. Therefore,
for example, the final monthly average salary for a participant who
is voluntarily or involuntarily serving in the United States Armed
Forces during the final 36 months of his/her aggregate service shall
be based on the thirty-six-month period during which the employee
last received salary (as defined in the preceding subsection) from
the employer.
A legal reserve life insurance company that may issue a policy
under this plan.
[Amended 3-8-2004 by Ord.
No. 2004-4; 11-12-2018 by Ord. No. 2018-12]
For participants who began employment prior to January 1, 2007,
the earlier of the:
For participants who began employment on or after January 1,
2007, the date on which the participant has both completed 25 years
of aggregate service with the employer and has attained age 50 while
an employee.
An employee who has met the participation requirements of the plan as provided in § 62-16A and who has not for any reason ceased to be a participant hereunder.
The fund or funds administered under the terms of this plan,
which shall include all money, property, investments, policies and
contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time,
and designated as the "Radnor Township Police Pension Plan."
The Police Pension Board appointed by the Board of Commissioners to administer the provisions of the plan pursuant to § 62-15B. In the event that no appointment of such Pension Board is made, the Plan Administrator shall consist of the Township Manager, the Finance Director and the Assistant Finance Director or another management official selected by the Manager.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of the Act.
January 1, 1998, the date upon which this amendment and restatement
of the plan becomes effective.
The employee's regular base salary or hourly wages and the
following additional forms of compensation: fixed amounts that are
paid at periodic intervals such as longevity pay, holiday pay, and
night differential pay and any irregular or extra forms of compensation,
such as overtime or court pay. Salary, as used herein, shall not include
extra duty pay and uniform allowances. Salary used to calculate benefits
hereunder shall be limited on an annual basis to the amount specified
for government plans pursuant to Code Section 401(a)(17), as adjusted
under Code Section 415(d).
[Amended 3-8-2004 by Ord. No. 2004-4]
Whether a service-connected disability or non-service-connected disability (pursuant to § 62-19A), a condition of physical or mental impairment due to which a participant is permanently unable to perform the usual and customary duties of his/her employment as a uniformed police officer with the employer, as approved by the Plan Administrator in consultation with one or more qualified health care providers.
A.
Plan operated under supervision of the Board of Commissioners.
(1)
The operation of the plan shall be supervised by the
Board. The Board shall have the power and authority, either directly
or through the Plan Administrator, to do all acts and to execute,
acknowledge and deliver all instruments necessary to implement and
effectuate the purpose of this plan. The Plan Administrator shall
keep such records as may be necessary for the determination of the
status of each participant and the presumptive share of each participant
in the fund as determined by the actuary.
(2)
The Board shall have the authority and shall be charged
with the performance of the duties set forth in this plan, but shall
have the authority, by general rule or special decision, to determine
and make provisions for such items necessary for the proper carrying
out and enforcement thereof that are not specifically provided by
this plan at all times, subject to change by proper ordinance or resolution.
B.
Police Pension Board.
(1)
The Board of Commissioners, at its sole discretion, may appoint or direct the Township Manager to convene a Police Pension Board to act as Plan Administrator pursuant to Subsection A. The Police Pension Board shall be composed of the following nine individuals, each having one vote on related matters:
(a)
The President of the Board of Commissioners,
who shall serve as chair of this Pension Board;
(b)
Another member of the Board of Commissioners,
appointed by the President of the Board;
(c)
The Township Manager, who shall serve as the
Chief Administrative Officer of the plan and as vice chair of this
Pension Board;
(d)
The Finance Director, who shall serve as the
Chief Financial Officer of the plan;
(e)
The Assistant Finance Director or another management
official selected by the Manager;
(f)
The Superintendent of Police;
(g)
Two active plan participants selected by the
Township's Police Department's representative to the Fraternal Order
of Police (FOP) or any successor organization designated to represent
police officers in collective bargaining; and
(h)
One retired employee who is receiving a monthly
pension from the plan, selected by the Manager in consultation with
the Pension Board and the FOP representative.
(2)
The Police Pension Board shall meet at least once
each quarter to discuss the allocation of plan assets, investment
performance and other business related to the plan. Certain information
about plan participants and retirees (such as pension benefits, beneficiaries,
etc.) shall be kept confidential by all Pension Board members.
C.
Acceptance of gifts, grants and bequests. The Plan
Administrator is hereby authorized to take by gift, grant, devise
or bequest any money or property, real or personal, in trust for the
benefit of the plan and to cause the same to be held as a part of
the pension fund. The care, management, investment and disposal of
said fund is hereby vested in the Plan Administrator, subject to the
provisions of the laws of the Commonwealth of Pennsylvania and of
this plan and any amendment thereto and subject to such direction
not inconsistent therewith as the donors of such funds and property
may prescribe.
D.
Investment policies. The Plan Administrator shall
develop policies and procedures governing the allocation and investment
of all plan assets. It is the intent of the Board that all assets
of the plan shall be invested in a prudent manner, subject to applicable
laws and regulations of the Commonwealth of Pennsylvania, designed
to meet the actuarially determined funding needs of the plan. If it
so elects, the Plan Administrator may elect to invest all or a portion
of the pension fund's assets in policies issued by an insurer.
A.
Eligibility requirements. As a condition of employment,
each employee shall participate herein as of the date on which such
employee's employment first commences or recommences.
B.
Designation of beneficiary. Any new, full-time employee who becomes a participant hereunder shall provide a written notice which designates his/her beneficiary or beneficiaries to the Plan Administrator at the time his/her participation commences. (The beneficiary shall receive a refund of accumulated contributions if such refund is payable pursuant to § 62-20A.) The participant's election of any such beneficiary or beneficiaries may be rescinded or changed, without the consent of the beneficiary or beneficiaries, at any time, provided that the participant provides the employer with written notice of the changed designation.
A.
Participant contributions. Each participant hired
prior to January 1, 2013, shall make regular biweekly contributions
to the plan at a rate of 3% of his/her basic monthly earnings. Each
participant hired on or after January 1, 2013, shall make regular
biweekly contributions to the plan at a rate of 5% of his/her basic
monthly earnings.
[Amended 6-17-2002 by Ord. No. 2002-21; 3-8-2004 by Ord. No. 2004-4; 11-12-2018 by Ord. No. 2018-12]
B.
Payment of participant contributions. A participant's
contributions shall be deducted from his/her basic monthly earnings
in each month, or other periodic increments thereof, of his/her aggregate
service during which s/he receives payments of basic monthly earnings.
C.
Reduction of participant contributions. Notwithstanding the preceding Subsections A and B, if an actuarial study performed by the Actuary shows that the condition of the pension fund is such that payments into the pension fund by participants may be reduced below the minimum percentages prescribed in Subsection A, or may be eliminated, and that if such payments are reduced or eliminated, contributions by the employer will not be required to keep the pension fund actuarially sound, the Board of Commissioners may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the pension fund by participants.
D.
Payments of state aid. Payments of general municipal
pension system state aid, or any other amount of state aid received
in accordance with the Act from the Commonwealth of Pennsylvania,
which are received by the employer and deposited into the pension
fund governed by this plan shall be used as follows:
E.
Employer contributions. The remainder of the annual
contributions required under the provisions of the Act, as determined
by the Actuary in accordance with the Act, shall become the obligation
of the employer and shall be paid into the pension fund by annual
appropriations enacted by the Board.
F.
No reversion to the employer. At no time shall plan
assets be used for or diverted to any purpose other than for the exclusive
benefit of the participants and their beneficiaries, except that contributions
made by the employer may be returned to the employer if:
A.
Normal retirement. Each participant shall be entitled
to normal retirement benefits, provided that s/he retires from employment
on or after his/her normal retirement date.
B.
Normal retirement benefit. Each participant entitled to normal retirement benefits pursuant to Subsection A shall receive during his/her lifetime a monthly benefit equal to the greater of:
[Amended 6-17-2002 by Ord. No. 2002-21; 3-8-2004 by Ord. No. 2004-4]
C.
Act 24 retirement benefit. Each participant, regardless of age, who elects to retire after the Act 24 retirement date but before the normal retirement date pursuant to § 62-14 hereinabove shall receive a benefit equal to the accrued benefit that is reduced actuarially in accordance with Act 24 of 1998, as may be amended from time to time.
D.
Payment of retirement benefits provided in accordance with this § 62-18 shall be conditioned upon a participant's being subject to service from time to time as a police reserve in cases of riot, tumult, or preservation of the public peace until unfitted for such service, at which time such participant shall be finally discharged by reason of age or disability upon written notice from the Board, the Manager, or the Superintendent of Police.
E.
Service increment benefits. In addition to the pension benefit provided in Subsection B or C, a service increment benefit of $100 per month (or $1,200 per annum) shall be payable to a participant who has retired under this § 62-18, if such participant has completed 26 or more years of aggregate service as of his/her normal retirement date, provided that a participant retiring on or after January 1, 2008, shall receive a service increment benefit of $200 per month ($2,400 per annum) with 27 or more years of aggregate service; $300 per month ($3,600 per annum) with 28 or more years of aggregate service; $400 per month ($4,800 per annum) with 29 or more years of aggregate service; and $500 per month ($6,000 per annum) with 30 years or more years of aggregate service.
[Amended 2-26-2007 by Ord. No. 2007-19]
F.
Late retirement. A participant may continue to work beyond his/her normal retirement date subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of Subsection A continues to work beyond his/her normal retirement date, there shall be no retirement benefits paid until employment with the employer ceases and retirement begins. The retirement benefit of a participant who retires after his/her normal retirement date shall be calculated on the basis of his/her final monthly average salary as of such participant's actual date of retirement.
G.
Payment of benefits. Retirement payments shall be
payable as of the first day of the month coincident with or next following
the participant's retirement date and the first day of each month
thereafter during the participant's lifetime.
H.
Special provision for restated plans. The benefit
amount of any participant who may have retired prior to the restatement
date shall not be in any way altered by the provisions of this plan,
except where otherwise expressly indicated herein, and shall continue
to be determined on the basis of the terms of the plan in effect on
the day preceding the restatement date.
I.
Maximum benefit limitations. Notwithstanding any provision of this plan to the contrary, for plan years beginning January 1, 2001, no benefit provided under this plan attributable to contributions of the employer shall exceed, as an annual amount, the amount specified in Code Section 415(b)(1)(A) as adjusted pursuant to Code Section 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this Subsection I shall be governed by the following conditions and definitions:
[Amended 6-17-2002 by Ord. No. 2002-21; 3-8-2004 by Ord. No. 2004-4]
(1)
Benefits paid or payable in a form other than a straight
life annuity (with no ancillary benefits) or where the employee contributes
to the plan or makes rollover contributions shall be adjusted on an
actuarially equivalent basis to determine the limitation contained
herein;
(2)
In the case of a benefit which commences prior to
the attainment of age 62 by the participant, the limitation herein
shall be adjusted on an actuarially equivalent basis to the amount
determined pursuant to this section commencing at age 62; however,
in the case of a qualified participant (a participant with respect
to whom a period of at least 15 years of service, including applicable
military service, as a full-time employee of a police or fire department
is taken into account in determining the amount of benefit), the limitation
contained herein shall not apply;
[Amended 3-8-2004 by Ord. No. 2004-4]
(3)
In the case of a benefit which commences after attainment
of age 65 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis to the amount determined commencing
at age 65;
(4)
Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this section provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability retirement benefit pursuant to § 62-19A, with fewer than 10 years of participation the limitation expressed in this Subsection I(4) shall be reduced by 1/10 for each year of participation less than 10 but in no event shall this limitation be less than $1,000;
[Amended 3-8-2004 by Ord. No. 2004-4]
(5)
The limitations expressed herein shall be based upon
plan years for calculation purposes, shall be applied to all defined
benefit plans maintained by the employer as one defined benefit plan
and to all defined contribution plans maintained by the employer as
one defined contribution plan, and shall be applied and interpreted
consistent with Code Section 415 and regulations thereunder as applicable
to government plans in general and this plan in particular; and
(6)
In the case of a disability retirement benefit under § 62-19A or a survivor benefit under § 62-20B, the adjustment under Subsection I(2) hereof shall not apply and the applicable limitation shall be the limitation contained herein without regard to the age or years of service of the benefit recipient.
[Amended 3-8-2004 by Ord. No. 2004-4]
J.
Required distributions.
(1)
Notwithstanding any provision of the plan to contrary,
distributions shall not commence later than the later of April 1 following
the calendar year in which the participant attains age 70 1/2
or April 1 following the calendar year in which the employee retires.
(2)
Distributions beginning before death. Notwithstanding
any provision of the plan to the contrary, if the participant dies
after distribution of his/her interest has begun, the remaining portion
of his/her interest shall continue to be distributed at least as rapidly
as under the method of distribution in effect prior to the participant's
death.
(3)
Distribution beginning after death.
(a)
If the participant dies before distribution of his/her interest in the plan commences, distribution of the participant's entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the participant's death, unless Subsection J(3)(b) applies.
(b)
If the designated beneficiary is the participant's surviving spouse, the date distributions are required to begin shall not be earlier than the later of December 31 of the calendar year immediately following the calendar year in which the participant died; or December 31 of the calendar year in which the participant would have attained age 70 1/2. For purposes of this Subsection J, if the surviving spouse dies after the participant but before benefit payments to such spouse commence, the provisions of this Subsection J [excepting Subsection J(3)(b)] shall be applied as if the surviving spouse were the participant.
K.
Direct rollovers. This Section applies to distributions
made on or after December 31, 2001. Notwithstanding any provision
of the plan to the contrary that would otherwise limit a distributee's
election under this section, a distributee may elect, at the time
and in the manner prescribed by the Plan Administrator, to have any
portion of an eligible rollover distribution that is equal to at least
$500 paid directly to an eligible retirement plan specified by the
distributee in a direct rollover. For purposes of this section, the
following definitions shall apply:
[Added 3-8-2004 by Ord. No. 2004-4[2]]
(1)
DIRECT ROLLOVER — A payment by the plan to the
eligible retirement plan specified by the distributee.
(2)
DISTRIBUTEE — Includes an employee or former
employee. In addition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse or former spouse,
who is the alternate payee under a qualified domestic relations order,
as defined in Code Section 414(p), are distributees with regard to
the interest of the spouse or former spouse.
(3)
ELIGIBLE RETIREMENT PLAN — A qualified trust
described in Code Section 401(a), an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), an annuity plan described in Code
Section 403(a), an annuity contract described in Code Section 403(b),
an eligible plan under Section 457(b) of the Code which is maintained
by a state, political subdivision of a state. or any agency or instrumentality
of a state or political subdivision of a state and which agrees to
separately account for amounts transferred into such plan from this
plan.
(4)
ELIGIBLE ROLLOVER DISTRIBUTION —
(a)
Any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible
rollover distribution does not include: any distribution that is one
of a series of substantially equal periodic payments (not less frequently
than annually) made for the life (or life expectancy) of the distributee
or the joint lives (or joint life expectancies) of the distributee
and the distributee's designated beneficiary, or for a specified period
often years or more; any distribution to the extent such distribution
is required under Code Section 401(a)(9); and the portion of any distribution
that is not includible in gross income (determined without regard
to the exclusion for net unrealized appreciation with respect to employer
securities).
(b)
For purposes of the direct rollover provisions
in this section of the plan, a portion of a distribution shall not
fail to be an eligible rollover distribution merely because the portion
consists of after-tax employee contributions that are not includible
in gross income. However, such portion may be paid only to an individual
retirement account or annuity described in Section 408(a) or (b) of
the Code, or to a qualified defined contribution plan described, in
Section 401(a) or 403(a) of the Code that agrees to separately account
for amounts so transferred, including separately accounting for the
portion of such distribution which is includible in gross income and
the portion of such distribution which is not so includible.
[2]
Editor's Note: This ordinance also renumbered
former Subsection I as L.
L.
Deferred Retirement Option Plan ("DROP"). Effective January 1, 2020, a DROP benefit will be available to officers who have completed the age and service requirements of Subsection A of this section with the following provisions:
[Added 5-24-2021 by Ord. No. 2021-04[3]]
(1)
The DROP participation period will be four years.
(2)
Except as provided for in Article 14 of the CBA, there will be no
inclusion of the payout for accrued leave time in DROP pension calculations.
An officer participating in DROP will receive a payout for accrued
leave time at the time he/she separates from employment.
(3)
Once an officer enters DROP, his/her pension benefit will not be
recalculated.
(4)
As to an officer who enters DROP, upon separation from employment,
the officer shall receive the retiree medical and life insurance benefits
as provided by the CBA at the time the officer entered DROP.
(5)
Investment returns on an officer's DROP benefits will be based
on the cap of 4.5% and floor of 0.0% as required by Act 44.
(6)
An officer's election to enter DROP is irrevocable and becomes
effective on the later of the date the officer submits completed documentation
as required by the Township or the date to enter DROP selected by
the officer.
[3]
Editor's Note: This ordinance also renumbered former Subsection
L as Subsection M.
M.
Assignment. The pension payments herein provided shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant, his/her
survivors or his/her designated beneficiary and shall not be subject
to assignment or transfer.
A.
Disability benefits. A participant who is totally
and permanently disabled shall be entitled to a monthly disability
benefit equal to:
(1)
Service-connected disability: 70% of the participant's
average monthly salary paid by the employer for the 12 months ending
on the participant's disability date, provided that said disability
results from the participant's performance in the line of the employee's
active duty as a member of the employer's police force.
(2)
Nonservice-connected disability (applicable only to
participants hired before January 1, 2001): 50% of the participant's
average monthly salary paid by the employer for the 12 months ending
on the participant's disability date, provided that said disability
does not result from the participant's performance in the line of
the employee's active duty as a member of the employer's police force
and does not result from the participant's employment with another
employer or as a result of being self-employed.
[Amended 3-8-2004 by Ord. No. 2004-4]
B.
Payment of disability benefits. Disability payments
shall be made monthly as of the first day of each month, commencing
as of the first day of the month coincident with or immediately following
the later of 30 days following the participant's disability date;
or the expiration of the period for which the participant is entitled
to receive accumulated sick pay benefits from the employer.
C.
Verification of disability benefits. A participant's
total and permanent disability shall be deemed to be terminated:
(1)
If the employer determines, on the basis of a medical
examination by a health care provider acceptable to the employer,
that the participant, prior to his/her normal retirement date, has
sufficiently recovered to return to regular work as a police officer;
(2)
If the participant refuses to undergo a medical examination
prior to his/her normal retirement date, which may be ordered by the
employer or the plan administrator, provided that the participant
may not be required to undergo a medical examination more often than
once every 12 months; or
(3)
If the participant is employed in any capacity as
a full-time or part-time police officer prior to his/her normal retirement
date.
D.
Termination of disability benefits. Disability benefits payable under this § 62-19 shall cease as of the first of the month coincident with or next following the earliest of Subsection D(1), (2) or (3) below:
(1)
The date on which a participant fails to return to his/her position as an employee of the employer within a reasonable time following the cessation of his/her total and permanent disability prior to his/her normal retirement date (as determined under Subsection C above). In such an event, the participant's date of termination shall be his/her disability date and his/her interest in the plan (if any) shall be determined pursuant to § 62-21.
(2)
The date on which a participant:
(a)
Receiving service-connected disability benefits reaches his/her normal retirement date. In such an event, the participant shall be deemed to be retired and shall be entitled to a monthly normal retirement benefit equal in amount to the monthly disability benefit to which he was formerly entitled under this § 62-19. The benefit provided under this Subsection D(2) shall be in lieu of the normal retirement benefit described in § 62-18B and shall not include the service increment benefit described in § 62-18C.
(b)
Receiving non-service-connected disability benefits
attains age 65.
A.
Participant without surviving spouse or surviving
children.
(1)
Preretirement. If a participant who has not attained entitlement to normal retirement benefits dies during employment; while receiving disability benefits from the plan pursuant to § 62-19; or after termination of employment but prior to receiving a refund of accumulated contributions, and no survivor benefit is payable under Subsection B, the designated beneficiary of the participant shall be entitled to receive a refund of the participant's accumulated contributions to the plan.
(2)
Postretirement. No death benefit is payable with respect
to a participant who has commenced receiving normal retirement benefits
and who dies without a surviving spouse or surviving children under
the age of 18.
B.
Survivor benefits.
(1)
Postretirement. A postretirement survivor benefit equal to 1 00 percent of the monthly retirement benefit which a participant was receiving or would have been receiving had he been retired at the time of his/her death [determined under § 62-18B or C and E or 62-19D(2), as applicable] shall be payable to the deceased participant's survivor as provided under this Subsection B(1) and C. The postretirement survivor benefit provided in this Subsection B(1) shall be payable to the surviving spouse or surviving minor children of:
[Amended 3-8-2004 by Ord. No. 2004-4]
(2)
Preretirement.
[Amended 6-17-2002 by Ord. No. 2002-21]
(a)
A preretirement survivor benefit equal to 100% of the deceased participant's accrued Benefit (determined as of the participant's date of death or, if earlier, the date on which s/he terminated employment) shall be payable to the deceased participant's survivor as provided under this Subsection B(2) and Subsection C. The preretirement survivor benefit provided in this Subsection B(2) shall be payable to the surviving spouse or surviving minor children of:
[1]
A participant who died during employment (irrespective of whether his/her death was service-related; provided that survivor benefits shall be paid for a participant who was killed while working on active duty in accordance with this Subsection B(2)(c);
[2]
A former employee who separated from employment
with a vested deferred benefit and who has not received either a refund
of accumulated contributions or commenced to receive retirement benefits
from the plan;
[3]
A participant who is receiving service-connected
disability benefits from the plan and who has not reached his/her
normal retirement date;
[4]
A participant who is receiving nonservice-connected
disability benefits from the plan and who has not attained age 65.
Such preretirement survivor benefit for the spouse or minor children
of a deceased participant who had been receiving nonservice-connected
disability benefits upon the date on which the deceased participant
would have attained age 65, and no further survivor benefits shall
thereafter be payable.
(b)
Pursuant to Act 30 of 2002, if a participant dies prior to vesting his or her pension, the surviving spouse or, if the spouse is deceased, any children under the age of 18, or under 23 if attending college, shall be entitled to 100% of the participant's contributions made to this plan pursuant to § 62-17, plus interest or other increases in value of the member's investment in the pension fund, unless the participant has designated another beneficiary for this purpose.
[Added 3-8-2004 by Ord. No. 2004-4]
(c)
Killed in service. In the event a participant
is killed in service, the participant's surviving spouse or eligible
dependents (if any, as defined by Act 51 of 2009) 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 Township police officer (i.e., either a normal, early,
or vested pension benefit).
C.
Payment of survivor benefits. Survivor benefits payable under § 62-20B shall commence as of the first day of the month immediately following the date of death of the participant. The survivor benefit shall be paid monthly to the surviving spouse of the participant, if any, until the date of death of the surviving spouse. Upon the death of the surviving spouse, or if there is no surviving spouse, the Survivor Benefit shall be paid monthly in equal shares to the surviving dependent children of the deceased participant until attainment of age 18 or, if attending college, under or attainment of age 23. The shares payable to the surviving dependent children shall be adjusted as each child ceases to be eligible to receive a share of the benefit hereunder. For purposes of this Subsection C, "attending college" shall mean that the eligible dependents are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester.
[Amended 3-8-2004 by Ord. No. 2004-4]
A.
Rights of terminated employees. If a participant ceases
to be an employee except as otherwise hereinbefore provided, his/her
interest and rights under this plan shall be limited to those contained
in the following sections of this article.
B.
Payment of accumulated contributions.
(1)
If a participant whose employment with the employer
has been terminated for any reason other than death prior to his/her
normal retirement date and s/he is neither eligible for a pension
under the plan nor has s/he elected to vest his/her benefit, such
participant shall be entitled to receive a refund of his/her accumulated
contributions to the plan.
(2)
At the former employee's election, his/her accumulated
contributions may be paid under either of the following options:
(a)
A single cash payment, payable as soon as practical
following the participant's termination of employment with the employer.
Upon receipt of such accumulated contributions, neither the participant,
his/her beneficiary, his/her surviving spouse, nor his/her surviving
children shall be entitled to any further payments from the plan.
(b)
A retirement income payable at what would have
been the participant's normal retirement date had s/he remained employed.
Such retirement income shall be paid monthly, and shall be equal to
the participant's accumulated contributions.
C.
Vested benefits upon termination. In lieu of receiving a refund of his/her accumulated contributions, a participant who has completed 12 years of aggregate service with the employer and who ceases to be an employee of the employer for any reason other than death, retirement or total and permanent disability may elect to vest his/her retirement benefits under the plan by filing a written notice of his/her intention to vest with the plan administrator within 90 days of the date he ceases to be an employee. A participant who exercises such an option shall be eligible, upon attainment of what would have been his/her normal retirement date had s/he continued to be an employee, for a vested retirement benefit equal to his/her accrued benefit, determined as of the date on which s/he terminated employment. If a participant elects to vest his/her benefit but dies prior to the commencement thereof, the death benefit (if any) payable to him/her shall be determined in accordance with § 62-20.
A.
The plan's actuary shall perform an actuarial valuation
at least once every two years, unless the employer is applying or
has applied for supplemental state assistance pursuant to Section
603 of the Act, whereupon actuarial valuation reports shall be made
annually or otherwise in accordance with the Act.
B.
Such biennial actuarial valuation report shall be
made as of the beginning of each plan year occurring in an odd-numbered
calendar year. Such actuarial valuation shall be prepared and certified
by an approved Actuary, as such term is defined in the Act.
C.
The expenses attributable to the preparation of any
actuarial valuation report or investigation required by the Act or
any other expense which is permissible under the terms of the Act
and which are directly associated with administering the plan shall
be an allowable administrative expense payable from the assets of
the pension fund. Such allowable expenses shall include, but not be
limited to, the following:
(1)
Investment costs associated with obtaining authorized
investments and investment advisory and management fees;
(2)
Accounting expenses;
(3)
Premiums for insurance coverage on fund assets;
(4)
Reasonable and necessary counsel fees incurred for
advice or to defend the fund; and
(5)
Legitimate travel and education expenses for plan
officials; provided, however, that the municipal officials of the
employer, in their fiduciary role, shall monitor the services provided
to the plan to ensure that the expenses are necessary, reasonable
and benefit the plan; and further provided that the Plan Administrator
shall document all such expenses item by item and, where necessary,
hour by hour.
Such actuarial reports shall be prepared and
filed under the supervision of the Chief Administrative Officer ("CAO").
The CAO shall determine the financial requirements of the plan on
the basis of the most recent actuarial report and shall determine
the minimum obligation of the employer with respect to funding the
plan for any given plan year. The CAO shall submit the financial requirements
of the plan and the minimum obligation of the employer to the Board
annually and shall certify the accuracy of such calculations in conformance
with the Act.
Prior to the adoption of any benefit plan modification
by the employer, the CAO shall provide to the Board a cost estimate
of the proposed benefit plan modification. Such estimate shall be
prepared by an approved actuary and shall disclose to the Board the
impact of the proposed benefit plan modification on the future financial
requirements of the plan and the future minimum obligation of the
employer with respect to the plan.
A.
Amendment of the plan. The employer may amend his/her
plan at any time or from time to time by an instrument, in writing,
executed in the name of the employer under its municipal seal by officers
duly authorized to execute such instrument and delivered to the Board;
provided, however, that:
(1)
No amendment shall deprive any participant or any
beneficiary of a deceased participant of any of the benefits to which
he is entitled under this plan with respect to contributions previously
made;
B.
Termination of the plan. The employer shall have the
power to terminate this plan in its entirety at any time by an instrument,
in writing, executed in the name of the employer, in accordance with
collective bargaining agreements and applicable laws and regulations.
C.
Automatic termination of contributions. Subject to
the provisions of the Act governing financially distressed municipalities,
the liability of the employer to make contributions to the pension
fund shall automatically terminate upon liquidation or dissolution
of the employer upon its adjudication as a bankrupt or upon the making
of a general assignment for the benefit of its creditors.
D.
Distribution upon termination.
(1)
In the event of the termination of the plan, all amounts
of vested benefits accrued by the affected participants as of the
date of such termination, to the extent funded on such date, shall
be nonforfeitable hereunder. In the event of termination of the plan,
the employer shall direct either that the Plan Administrator continue
to hold the vested Accrued Benefits of participants in the pension
fund in accordance with the provisions of the plan (other than those
provisions related to forfeitures) without regard to such termination
until all funds have been distributed in accordance with the provisions;
or that the Plan Administrator immediately distribute to each participant
an amount equal to his/her vested accrued benefit to the date.
(2)
If there are insufficient assets in the pension fund
to provide for all vested accrued benefits as of the date of plan
termination, priority shall first be given to the distribution of
any amounts attributable to mandatory or voluntary employee contributions
before assets are applied to the distribution of any vested benefits
attributable to other sources hereunder.
(3)
All other assets attributable to the terminated plan
shall be distributed and disposed of in accordance with the provisions
of applicable law and the terms of any instrument adopted by the employer
which effects such termination.
E.
Residual assets. If all liabilities to vested participants
and any others entitled to receive a benefit under the terms of the
plan have been satisfied and there remain any residual assets in the
pension fund, such residual assets remaining shall be returned to
the employer insofar as such return does not contravene any provision
of law, and any remaining balance, in excess of employer contributions,
shall be returned to the commonwealth.
F.
Exclusive benefit rule. In the event of the discontinuance
and termination of the plan as provided herein, the employer shall
dispose of the pension fund in accordance with the terms of the plan
and applicable law; at no time prior to the satisfaction of all liabilities
under the plan shall any part of the corpus or income of the pension
fund, after deducting any administrative or other expenses properly
chargeable to the pension fund, be used for or diverted to purposes
other than for the exclusive benefit of the participants in the plan,
their beneficiaries or their estates.
A.
Plan not a contract of employment. No police officer
of the employer nor anyone else shall have any rights whatsoever against
the employer or the plan administrator as a result of this plan except
those expressly granted to them hereunder. Nothing herein shall be
construed to give any police officer the right to remain on the police
force of the employer.
B.
Masculine/feminine; singular/plural. For purposes
of this plan, the masculine shall be read for the feminine and the
singular shall be read for the plural, wherever the person or context
shall plainly so require.
C.
Construction of document. This plan may be executed
and/or conformed in any number of counterparts, each of which shall
be deemed an original and shall be construed and enforced according
to the laws of the Commonwealth of Pennsylvania, excepting such commonwealth's
choice of law rules.
D.
Headings. The headings of articles are included solely
for convenience of reference, and if there be any conflict between
such headings and the text of the plan, the text shall control.
E.
Severability of provisions. In case any provisions
of this plan shall be held illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining parts of this
plan, and the plan shall be construed and enforced as if said illegal
and invalid provisions had never been inserted therein.
F.
Incapacity of pensioner. If any pensioner shall be
physically or mentally incapable of receiving or acknowledging receipt
of any payment of pension benefits hereunder, the Plan Administrator,
upon the receipt of satisfactory evidence that such pensioner is so
incapacitated and that another person or institution is maintaining
him/her, may provide for such payment of pension benefits hereunder
to such person or institution so maintaining him/her, and any such
payments so made shall be deemed for every purpose to have been made
to such pensioner.
G.
Liability of officers of the plan administrator and/or
employer. Subject to the provisions of the Act and unless otherwise
specifically required by other applicable laws, no past, present or
future police officer of the employer shall be personally liable to
any participant, beneficiary, or other person under any provision
of the plan.
H.
Assets of the fund. Nothing contained herein shall
be deemed to give any participant or his/her beneficiary any interest
in any specific property of the pension fund or any right except to
receive such distributions as are expressly provided for under the
plan.
I.
Pension fund for sole benefit of participants. The
income and principal of the pension fund are for the sole use and
benefit of the participants covered hereunder, and to the extent permitted
by law, shall be free, clear and discharged from and are not to be
in any way liable for debts, contracts or agreements, now contracted
or which may hereafter be contracted, and from all claims and liabilities
now or hereafter incurred by any participant or beneficiary.
