The following words and phrases, as used in
this Plan, shall have the meanings set forth in this article, unless
a different meaning is otherwise clearly required by the context:
ACCRUED BENEFIT
As of any given date, the benefit determined under §
36-8B, 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 projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation, provided under §
36-8H. All accrued benefits are subject to all applicable limitations, reductions, offsets, and actuarial adjustments provided pursuant to the terms of the Plan prior to the actual payment thereof.
ACCUMULATED CONTRIBUTIONS
The total amount contributed by any participant to this fund or its predecessor by way of payroll deduction or otherwise, plus interest credited at 2.5% per annum. Interest shall be credited in the form of a compound interest rate from the midpoint of the plan year during which the contributions were paid to the first day of the month preceding the date that a distribution of accumulated contributions under §
36-10E or §
36-11B shall be paid or payment of benefits shall commence.
ACT
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
ACTUARIAL EQUIVALENT
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the UP-1984 Mortality Table and 7% interest unless otherwise
specifically provided herein.
ACTUARY
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.
AGGREGATE SERVICE
The total period or periods of the participant's employment
with the employer, whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment
for which employee contributions are required, such period of employment
shall not be included in aggregate service thereafter unless, at the
commencement of the next period of employment, the participant repays
to the fund the amount of such distribution with interest. For purposes
of this definition, interest shall accrue as of the date the employee
receives a distribution of accumulated contributions and shall be
computed at the same rate and in the same manner as described in the
definition of "accumulated contributions." Aggregate service shall
be calculated in completed years and months, and shall not include
any period of a voluntary leave of absence without pay.
BENEFICIARY
The person or entity designated by the participant to receive
a distribution 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
the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse, or if there is no surviving spouse,
the issue, per stirpes, or if there is no surviving issue, the estate;
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.
BOROUGH
The Borough of Honesdale, Wayne County, Pennsylvania.
BOROUGH COUNCIL
The Council of the Borough of Honesdale, and also referred
to herein as the "Board."
CHIEF ADMINISTRATIVE OFFICER
The person designated by the Borough who has the primary
responsibility for the execution of the administrative affairs for
the plan.
CODE
The Internal Revenue Code of 1986, as amended.
COMPENSATION
The total remuneration of the employee, whether salary or
hourly wages, including overtime pay, ranking officer pay, and longevity
pay. Compensation 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).
COUNCIL
The Council of the Borough of Honesdale.
DISABILITY DATE
The date when a participant is determined by the Plan Administrator
to be incapacitated due to total and permanent disability, or the
date when the participant's employment terminates due to such total
and permanent disability, if later.
EARLY RETIREMENT AGE
The date on which the participant has completed 20 years
of aggregate service with the employer.
EARLY RETIREMENT DATE
The first day of the month coincident with or next following
the date on which a participant who has attained early retirement
age ceases employment and chooses to commence receipt of retirement
benefits prior to the normal retirement date.
EMPLOYEE
Any individual employed by the employer on a regular, full-time
basis as a police officer of the employer's police force.
EMPLOYER
Borough of Honesdale, Wayne County, Pennsylvania.
EMPLOYMENT
For the purpose of determining "aggregate service:"
A.
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;
B.
Any period of time for which an employee is
paid, either directly by the employer or through a program to which
the employer has made contributions on behalf of the employee, 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 or similar
laws);
C.
Any period during which an employee is entitled
to disability benefits under this plan, provided that the employee
returns to employment within three months of the date on which it
is determined that the employee is no longer totally and permanently
disabled if such determination occurs prior to the date a participant
attains normal retirement age;
D.
Any period of voluntary or involuntary military
service with the Armed Forces of the United States of America, provided
that the participant has 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 discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer;
E.
Any period of voluntary or involuntary military
service with the armed forces of the United States not to exceed a
total of five years which occurred prior to the date on which a participant
first became employed as an employee of the employer, provided that
the participant shall purchase such credit in accordance with the
terms of the collective bargaining agreement with the employer and
that such participant is not entitled to receive or is receiving retirement
benefits for such military service under a retirement system administered
and wholly or partially paid for by any other governmental agency
except military retirement pay earned by a combination of active and
nonactive duty with a reserve or national guard component of the armed
forces which is payable upon the attainment of a specified age and
period of service under 10 U.S.C. Ch. 67. The purchase price for such
service shall be computed by multiplying the average normal cost rate
as certified by the Public Employee Retirement Commission and not
to exceed 10% times the participant's average annual rate of compensation
during the first three years of employment and multiplying the result
by the number of years and fractions thereof being purchased. Interest
shall be paid at a rate of 4.75% compounded annually from the first
date of employment to the date of payment.
F.
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 participant contributions
that would otherwise have been paid to the plan during such period
of qualified military service. The amount of participant 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 participant contributions 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.
FINAL MONTHLY AVERAGE SALARY
The compensation earned by the participant and paid by the
employer averaged over the final 36 months immediately preceding termination
of active employment.
A.
Compensation shall exclude for this purpose
any single sum or extraordinary payments made which are not directly
attributable to active employment during the averaging period, including
but not limited to payment of a back-pay damage award and payment
of sick leave buyback.
B.
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 definition. Therefore,
for example, the final monthly average salary for a participant who
receives disability benefits from this plan or who is voluntarily
or involuntarily serving in the United States Armed Forces during
the final 36 months of aggregate service shall be based on the period
during which the employee last received salary (as defined in the
preceding subsection) from the employer.
C.
Salary used to determine final monthly average
salary shall be limited on an annual basis to the amount specified
for government plans in accordance with Code Section 401(a)(17), as
adjusted under Code Section 415(d).
LATE RETIREMENT DATE
The first day of the month coincident with or next following
the date on which the participant retires from employment on which
the payment of retirement benefits pursuant to this plan shall commence.
NORMAL RETIREMENT AGE
The date on which the participant has completed 25 years
of aggregate service with the employer and has attained age 50.
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following
the date on which the participant attains normal retirement age.
NOTICE or ELECTION
A written document prepared in the form specified by the
Plan Administrator. If such notice or election is to be provided by
the employer or the Plan Administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto, on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the Plan Administrator, it must be received by
the intended recipient on or before the last day of the specified
notice or election period.
PARTICIPANT
An employee who has met the eligibility requirements to participate in the plan as provided in §
36-6A and who has not for any reason ceased to be a participant hereunder.
PENSION FUND
The police pension fund administered under the terms of this
plan and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
PLAN
The plan set forth herein, as amended from time to time and
designated as the Borough of Honesdale Police Pension Plan.
PLAN ADMINISTRATOR
The committee or the individual appointed for the purpose
of supervising and administering the provisions of the plan. In the
event that no such appointment is made, the Plan Administrator shall
be the Board.
PLAN YEAR
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
POLICY or CONTRACT
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 applicable law.
RESTATEMENT DATE
January 1, 2015, the date upon which this amendment and restatement
of the plan becomes effective.
TOTAL AND PERMANENT DISABILITY
A condition of physical or mental impairment due to which a participant is unable to perform the usual and customary duties of employment and which is reasonably expected to continue to be permanent for the remainder of the participant's lifetime. For purposes of this definition and §
36-9, a condition shall not be treated as a total and permanent disability unless such condition is a direct result of or occurs in the line of duty of employment. Therefore, an employee whose physical or mental impairment does not occur in the line of duty or which is the result of alcoholism, addiction to narcotics, perpetration of a felonious criminal activity or is willfully self-inflicted is not entitled to receive disability benefits under the plan.