[HISTORY: Adopted by the Borough Council of the Borough of Prospect Park 5-14-1958 by Ord. No. 742, approved 5-14-1958; amended in its entirety 4-8-1997 by Ord. No. 1187, approved 4-8-1997. Subsequent amendments noted where applicable.]
GENERAL REFERENCES
Firemen's relief association — See Ch. 13.
Police Department — See Ch. 27.
Retirement system — See Ch. 35.
Social security — See Ch. 40.
Pursuant to the requirement of the Act of the General Assembly in such case made and provided, there is hereby established a Police Pension Plan and Fund.
The following terms, whenever used or referred to in this chapter, shall have the following meanings, except in those instances where the context indicates otherwise:
ANNUITANT
A former contributor in receipt of a superannuation retirement allowance or other benefit provided by this act.
BENEFICIARY
A person designated by a contributor or an annuitant to receive benefits after the death of such contributor or annuitant.
BOARD
The seven-member Pension Board appointed by the Borough Council to assist in the administration of and oversee the pension plan.
BOROUGH
The Borough of Prospect Park, in the County of Delaware and Commonwealth of Pennsylvania, and any municipality into which said borough may be merged or consolidated or by which it may be succeeded and which may adopt this plan.
COMPENSATION
The average monthly salary earned by the participant during the last 36 months of employment prior to retirement. Overtime pay, bonuses, premiums or other nonrecurring compensation shall be excluded in determining such average salary.
EMPLOYEE
A full-time officer and full-time member of the police force of the Borough of Prospect Park, not including probationary status police officers.
EXCESS INTEREST
The investment earnings on the fund in excess of that required for allocation to regular interest and expenses.
FUND
The Police Pension Fund established pursuant to this chapter.
INSURER
Any insurance company or companies from which there is purchased any insurance or annuity contract or policy to provide in whole or in part benefits contemplated by this plan.
PARTICIPANT
Any employee who has qualified under this agreement and the terms of the contract between the Borough and the Fraternal Order of Police.
PLAN
The Police Pension Plan of the Borough of Prospect Park.
SURVIVOR ANNUITANT
Any person who has been named by a member under a joint and survivor annuity option to receive an annuity upon the death of such member.
The fund herein established shall be maintained by contributions made by payroll deduction against compensation payable to each member of the police force; by annual appropriations made by the Borough of Prospect Park; by payments made by the State Treasurer to the Borough Treasurer from the moneys received from taxes paid upon premiums by foreign casualty insurance companies for the purpose of pension retirement; and by gifts, grants, devises or bequests granted to the pension fund pursuant to law.
The fund will be maintained under the direction of the Borough Council and administered by the Police Pension Board under such regulations as the Council may from time to time by ordinance or resolution prescribe for the benefit of such members of the police force as shall receive honorable discharge therefrom by reason of age, service, death or disability.
All full-time police officers of the Borough employed on January 1, 1957, shall immediately become members of this plan. All future full-time police officers who are subject to the provisions of civil service shall become members of the plan following the completion of any probationary status and one month of regular service.
Except as provided elsewhere in this chapter, any officer, whether a member or not, who leaves the service of the Borough before retirement under this plan must qualify as a member upon reentering its service as if he had not previously been an officer.
For all purposes of this plan, service of the Borough shall include leaves of absence granted by the Borough Council; absence due to illness, disability and vacation leaves; and service in the armed forces of the United States during a period of national emergency, provided that the employee returns to the employ of the Borough within six months from the date of his eligibility for honorable discharge or upon release from said armed forces.
[Added 8-14-2018 by Ord. No. 1345; approved 8-14-2018 by Ord. No. 1345]
A. 
A participant may receive full credit for each year, or fraction thereof, of service in the military of the United States of America, not to exceed five years, if such participant was not employed by the Borough prior to such military service, upon making such contributions as set forth below.
B. 
The contribution due by the participant in order to receive the full credit provided for in the subsection above shall be computed by applying the average normal cost rate for the Borough Police Pension Plan as certified by the Public Employee Retirement Commission, but not to exceed 10% to the participant's average annual rate of compensation over the first three years of Borough service and multiplying the result by the number of years and fractional part of a year creditable nonintervening military service being purchased together with interest at the rate of 4 3/4% compounded annually from the date of initial entry into Borough service as a full-time officer to the date of payment.
A participant eligible to retire at (55) years of age may continue in the employ of the Borough after his normal retirement date upon request made to Borough Council and approved. Such extended service shall be allowed on an annual basis only. No retirement benefits shall be paid until actual retirement.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004]
A. 
Normal retirement date: Participants shall be eligible for normal retirement benefits upon the "later" of the attainment of age 50 and the completion of 25 years of service.
B. 
Normal retirement benefits: The amount of retirement benefits shall be computed at 50% of the participant's average monthly compensation earned during the final 36 months of employment with no social security offset.
C. 
Cost-of-living adjustment: There shall be a cost-of-living increase for all police officers after retirement (whether for service or disability); provided, however, that such cost-of-living increase shall not exceed the percentage increase in the Urban Wage Earners and Clerical Workers CPI for the Philadelphia area from the year in which the police member (participant) last worked; provided, further, that in no case shall the total police pension benefits exceed 75% of the salary for computing retirement benefits and no more than a 5% increase in any one year; and provided, further, that the total cost-of-living increase shall not exceed 30% of the retired member's initial pension benefit. Furthermore, no cost-of-living increase shall be granted which would impair the actuarial soundness of the pension plan.
D. 
Service increment benefit: An additional service increment retirement benefit shall be provided to a retired participant if such participant has completed 26 or more years of service. Service for purposes of this section shall only include periods of time when the participant actively renders service in employment with the Borough or was receiving workers' compensation benefits as a result of employment with the Borough and shall not include any period of time during which the participant received a disability benefit under the team of the plan or was not otherwise in active employment with the Borough. Such service increment benefit shall be in an amount equal to $100 per month.
E. 
Vested benefits upon termination: In lieu of receiving a refund of accumulated contributions, a participant who has completed at least 12 years of total service with the Borough and who ceases to be an employee of the Borough for any reason other than death, retirement or disability shall vest, at the option of the participant. Such vesting option must be exercised by the participant by filing a written notice of his/her intention to vest within 90 days of the date he/she ceases to be an employee of the Borough. A participant who exercises such an option shall be eligible, upon attainment of what would have been his/her normal retirement date (based on the terms of the plan in effect upon termination of employment), had he/she continued to be an employee of the Borough, to a vested retirement benefit. The amount of partial retirement benefits shall be determined by applying the percentage his/her actual years of service bear to the years of service which he/she would have rendered had he/she continued to work until the normal retirement date to the gross pension, using, however, the monthly average compensation earned during the appropriate period prior to termination of employment. If a participant elects to vest his benefit but dies prior to the commencement thereof, the participant's survivor will be paid a survivor benefit equal to 50% of the vested pension benefit that would have been paid to the deceased participant upon the date that payments would have been made to the deceased participant. If no survivor exists, the beneficiary of such deceased participant shall be entitled to a refund of the participant's accumulated contributions, with interest.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004; 7-12-2005 by Ord. No. 1266, approved 7-12-2005]
A. 
"Total and permanent service-connected disability" shall mean a condition of physical or mental impairment due to which a participant is unable to perform the usual and customary duties of an employee and which, in the opinion of a physician acceptable to the Borough, is reasonably expected to continue to be permanent. A condition shall not be treated as a total and permanent disability unless such condition is a direct result of and occurs in the line of duty as an Employee. 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. A participant must submit satisfactory evidence and other proof of such disability as may be required by the Borough. Determination by the Social Security Administration that such participant is entitled to disability benefits under the Federal Social Security Act may also be considered by the employer as evidence of total and permanent disability, although such entitlement is not conclusive.
B. 
Disability retirement benefits: In the case of a total and permanent service-connected disability of any participant, such participant shall be deemed to have retired as of the date of such disability. The disability retirement benefit shall be a monthly amount equal to 70% of the participant’s salary at the time the disability was incurred.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004]
A. 
If a participant shall die after the commencement of retirement benefits hereunder (including disability), or after the participant is eligible to retire but before retirement benefit payments commence, or after eligibility for a deferred vested benefit, a survivor benefit shall be paid to the surviving spouse, if any, of the participant in an amount equal to 50% of the participant's retirement benefit or deferred vested benefit as of the date of death.
B. 
In the event a participant dies as a result of the performance of his duties, the participant's survivors shall receive those benefits provided for and subject to the terms of Pennsylvania Act 51 of 2009, approved October 9, 2009, codified at 53 P.S. § 891, and as such may be amended from time to time, which benefits are paid exclusively by the Commonwealth of Pennsylvania with the exception of any pension benefit to which the participant was entitled prior to the participant's death, solely by virtue of the participant's service as a Borough police officer.
[Amended 12-11-2012 by Ord. No. 1321, approved 12-11-2012]
C. 
The survivor benefit shall commence as of the first day of the month coincident with or immediately following the date of death of the participant (except for deceased participant entitled to a deferred vested benefit) and shall be paid monthly to the surviving spouse until the date of death of the surviving spouse. In the case of a death of a participant who is eligible for a deferred vested benefit prior to commencement of payments, payments to the surviving spouse shall commence upon the date the deceased participant would have begun receiving the deferred vested benefit. Upon the death of the surviving spouse, or if no spouse survives, the survivor benefit shall be paid monthly in equal shares to the surviving dependent children of the deceased participant. Dependent children shall include the children of the deceased participant who have not attained at least 18 years of age, or if attending college, under or attaining the age of 23 years. 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. 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.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004]
If a participant shall die before eligibility for retirement benefits hereunder, the participant's designated beneficiary shall be eligible to receive a distribution of the participant's accumulated contributions, with interest at the rate of 4% compounded annually, as of the date of death of the participant.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004]
A. 
Participant contributions: Each participant as a requirement of participation pays regular contributions to the plan in an amount equal to 5% of the participant's compensation (subject to reduction pursuant to Subsection B hereof). Each participant should complete the necessary forms to authorize the payment of participant contributions by way of payroll deduction.
B. 
Reduction of participant contributions: The Borough may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the plan by participants. Such reduction or elimination is usually subject to the terms and conditions, or limitations, if any, contained in any bargaining agreements between the Borough and the employees. The reduction or elimination of participant contributions shall not permit the return of contributions or any interest or plan earnings to be made to participants while an active employee.
C. 
Return of accumulated contributions: If a participant whose employment with the Borough has been terminated for any reason and he/she is neither eligible for a pension under the plan nor has he/she elected to vest his/her benefit, such participant or the designated beneficiary shall be entitled to receive a refund of the participant's accumulated contributions to the plan, plus interest credited at 4%, compounded annually. Upon receipt of such accumulated contributions, said participant and his or her beneficiary shall not be entitled to any further payments from the plan.
The fund shall be created and maintained in the following manner:
A. 
All funds on deposit and held for pension or retirement benefits of the Prospect Park police officers shall be transferred to and held by the fund created herein.
B. 
The allocation, by the Borough Council, of payments made by the Treasurer of the Commonwealth from the moneys received from the General Pension System State Aid Program shall be paid into the fund. At a minimum, moneys received for the equivalent of two units per officer shall be paid into the fund.
C. 
Payments made by the contributions of the police officers in accordance with the plan, as may be in effect from time to time, and subject to the applicable collective bargaining agreement shall be paid into the fund. Members' contributions shall be made through payroll deductions on all compensation received by the officers in the frequency that those compensations occur. These deducted contributions shall be paid into the fund on the day they are deducted.
D. 
Payments made by other gifts, grants, devises or bequests made to the fund.
E. 
Such other payments as may, from time to time, be made by the Borough Council to the fund from the general revenue of the Borough.
F. 
All such payments received shall be deemed to be a part of the fund and shall not be applied to any other pension fund or account or disbursed in any manner, except as provided herein.
G. 
Payments required under the plan shall be a charge only upon the fund and not upon any other moneys or funds of the Borough.
A. 
The Board shall have full power and authority to make all decisions in accordance with the terms of this plan, including but not limited to the following:
(1) 
To determine all questions relating to the eligibility of police officers to become members of the plan.
(2) 
To compute and certify to the Plan Administrator the amount and nature of benefits payable to participants.
(3) 
To make and publish such rules and regulations for the administration of the plan as are not inconsistent with the terms of the plan or the applicable statutes and ordinances.
(4) 
The Borough Council shall supply complete and timely information to the Board on all matters relating to the compensation of all members of the police force, the contracts between the Borough and the police force, retirement death or disability and all other causes for termination of employment as. well as all such other pertinent data as the Board may require to carry out its duties and responsibilities hereunder. The Board shall be responsible to transmit to the plan administrator and to the money manager and investment consultant such information as each requires to properly discharge his or her responsibilities for the Borough and the Police Pension Fund.
A. 
Payments shall be applied, first, to pay expenses properly incurred for the administration of the pension fund.
B. 
Next, the payments made by the State Treasurer to the Borough from the moneys received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension, retirement or disability benefits for municipal policemen shall be used as follows:
(1) 
To reduce the unfunded liability of the Borough and after such liability has been funded;
(2) 
To apply against the annual obligation of the Borough for future service and disability reserve costs and to the extent that the payment is in excess of such obligations;
(3) 
To reduce members' contributions.
C. 
All other moneys paid into the fund shall be applied to reduce equally the member and the Borough obligations for future service costs.
D. 
The Borough shall apply all moneys received from the commonwealth only in accordance with the applicable statutes, as amended.
The pension payments herein provided for shall not, so far as consistent with state law, be subject to attachments, execution, levy, garnishment or other legal process, shall be payable only to the participant or his designated beneficiary and shall not be subject to assignment or transfer.
The expense of the administration of this chapter, including all duly incurred administration expenses, shall be paid out of the moneys of the Police Pension Fund.
The Borough reserves the right to amend this plan without the consent of any participant or beneficiary; provided, however, that no amendment to this plan shall deprive any participant of any vested equitable interest herein.
A. 
The Police Pension Board is hereby established for the purpose of administering the Prospect Park Police Department Pension Fund, and which Board shall be known as the "Prospect Park Police Department Pension Board" (hereinafter "Board").
B. 
The Board shall consist of seven members, two of whom shall be members of the Borough Council, including the member serving as the Borough Council Chairman of Police, the Chief of Police or his designee, one full-time, active police officer and three members of the community who possess special skills or backgrounds in finance or investment. Vacancies to the Board shall be filled by a majority vote of the Prospect Park Borough Council.
C. 
Members of the Board shall serve without compensation but will be covered by a fiduciary insurance policy.
D. 
Each member of the Board shall be appointed to serve a two-year term, provided that any member of the Board who is a police officer shall cease to be a member of the Board on the last day of his/her employment as a police officer. Any member of the Board who is a member of the Borough Council shall cease to be a member on the last day he/she holds elected office. For the first year, four members shall be appointed for two-year terms and three members shall be appointed for three-year terms. Members of the Board may succeed themselves for the appointed terms. Every year at the January meeting the Board shall elect a Chairman, Vice Chairman and Secretary of the Prospect Park Police Pension/Investment Board.
E. 
No member of the Board shall be liable for any act or omission of any other member of the Board nor for any act or omission on his own part excepting only his willful misconduct. The Borough shall indemnify and save harmless members of the Board from all claims or liabilities arising out of his/her membership on the Board, except for those claims, expenses and liabilities arising out of the Board member's own willful misconduct.
F. 
No member of this Board shall vote on any matter in which he/she has a direct personal interest.
G. 
The action of the Board shall be determined by the vote or other affirmative expression of a majority of its members. All actions of the Board shall be certified by the Chairman and attested to by its Secretary. The Board shall keep a record of all its proceedings which will be open to inspection by the public.
H. 
The Board shall meet at least quarterly and at other times at the call of the Chairman or the request of a majority of the Board.
The powers and duties of the Board shall be as follows:
A. 
The members of the Board shall be trustees of the fund and shall have the right, as fiduciaries, to administer the plan in accordance with an agreement of trust entered into with the Borough Council of Prospect Park and the money manager, which agreement of trust shall permit the money manager to administer the fund and to receive, hold, invest, reinvest, sell, assign, transfer and dispose of any securities and investments and disperse any sum or sums as may be necessary to carry out the plan and comply with all other applicable statutes, ordinances and regulations.
B. 
To provide guidance to the money manager of the fund through an investment consultant for the investment of all moneys deposited in such fund and the reinvestment of all earnings of the funds.
C. 
To promulgate and adopt, from time to time, such rules and regulations as may be required for the proper administration of the Police Pension Plan and of the fund and for the transaction of the business of the Board.
D. 
To contract for, with the advice and approval of the Borough Council, professional services, including but not limited to actuaries, accountants, auditors, attorneys, money managers and an investment consultant as it may deem advisable in order to carry out its duties hereunder. The expenses of the administration of the fund and the plan shall be paid from the assets of the fund on requisition signed by the Chairman and Secretary of the Board.
E. 
To contract for, with the advice and approval of the Borough Council, a plan administrator, who shall be the Chief Administrative Officer of the pension fund, who shall be responsible for ensuring the day to day compliance by the fund with the requirements of the plan and fund to meet Act 205 and Act 195 mandates as well as those duties and responsibilities established by the Board. The Chief Administrative Officer's duties and responsibilities shall include, but are not limited to:
(1) 
Filing actuarial reports with the Public Employee Retirement Study Commission by the dates so required.
(2) 
Annual certification of the Borough's minimum financial obligation not later than the last business day of September each year for the following budget year. At a minimum, the amount certified shall be budgeted in the annual Borough budget.
(3) 
Annually certify to the Department of Auditor General regarding the number of employee units applicable to the Police Department. Officers must have been employed full time a minimum of six months prior to December 31 proceeding the date of each certification to qualify for certification. Employee units for police officers shall be two each.
(4) 
The Chief Administrative Officer will annually certify to the Commission that all Act 205 and Act 195 mandates were met.
F. 
To designate the fund custodian for the depository of all moneys to be contributed to the pension fund.
G. 
The Board shall, when requested by Borough Council during times of contract negotiations, explore the possibility of increasing pension benefits of members and shall authorize actuarial studies for such inquiries. The party requesting such studies shall pay the costs of all such studies.
A. 
The fund shall be deposited with, managed and invested by a bonded and insured money manager which shall carry out its responsibilities in accordance with the terms of the trust agreement; and, further, subject to such investment policy and guidance as the Board shall, from time to time, provide to the money manager directly or through an investment consultant.
B. 
The pension plan shall be administered on a day to day basis by the plan administrator, who shall be the Chief Administrative Officer of the pension fund, who shall receive and act as the custodian for all notices required to be sent to the Pension Fund Board.
[Added 7-11-2017 by Ord. No. 1341; approved 7-11-2017 by Ord. No. 1341]
A. 
Title. This Section shall be known as the "Prospect Park Borough Police Act 44 Retirement Program."
B. 
Definitions. When used in this section, the below words shall have the meaning indicated.
ACT 44 PROGRAM
The ACT 44 DEFERRED RETIREMENT OPTION PROGRAM referred to in the collective bargaining agreement between the Prospect Park Borough Police, represented by the Delaware County Fraternal Order of Police, Lodge #27 and the Borough of Prospect Park.
ACT 44 PROGRAM ACCOUNT
Separate ledger account created to accept Act 44 Program participants' monthly pension benefit while an Act 44 Program participant, as well as any interest thereon.
BOROUGH
Borough of Prospect Park, Delaware County, Pennsylvania.
DROP
Deferred Retirement Option Program.
FUND or PLAN
The Police Pension Plan.
PARTICIPANT
A police officer who meets the eligibility for and has executed the proper documents for participation in the Act 44 Program and has had such application approved by the Borough.
POLICE OFFICERS
Police officers of the Police Department.
C. 
Eligibility. Eligibility for the Act 44 Program shall be determined as follows: police officers who have not retired prior to the implementation of the Act 44 Program may enter into the Act 44 Program on the first day of the month following completion of 25 years of credited service and attaining the age of 50, i.e., superannuation date.
D. 
Written election. Eligible officers who wish to be participants in the Act 44 Program must signify that intention in writing as follows:
(1) 
A police officer electing to participate in the Act 44 Program must complete and execute an Act 44 Program participation election form prepared by the Borough, which shall evidence the member's election to participate in the Act 44 Program. The form must be signed by the police officer and be notarized and submitted to the Borough Secretary. The Act 44 Program participation election form shall include an irrevocable notice to the Borough, by the police officer member, that the police officer shall resign from employment with the Police Department effective on a specific date (the "resignation date") that is no later than 60 months from the effective date of Act 44 Program election form. A police officer shall cease to work as and may no longer be employed as a police officer on the officer's resignation date, unless the Borough properly terminates or honorably discharges the officer prior to the resignation date. A participant may resign from employment while in Act 44 Program status, which shall terminate his/her participation in the Act 44 Program.
(2) 
In addition to the above information, the Act 44 Program participation election form shall also advise the employee of the following: (1) an explanation of the participant's rights and obligations while in Act 44 Program; (2) that, as a condition of Act 44 Program participation, the participant foregoes active participation in the Police Pension Plan and foregoes any recalculation of pension benefits to include salary increases occurring after Act 44 Program participation commences; and (3) that the Act 44 Program participant's service while in Act 44 Program will not count as pension service nor will it entitle a participant to any service increment benefits to which the participant was not entitled prior to commencing Act 44 Program participation. An Act 44 Program participant must also complete any and all retirement documents required by the Police Pension Plan Administrator, and such documents must be filed and presented to the Borough for approval of retirement and payment of pension. Once an Act 44 Program participation election form has been approved by the Borough, it is irrevocable. Likewise, once an Act 44 Program participant enters the Act 44 Program, the participant may not subsequently leave and then re-enter the Act 44 Program, even if the employee separates from employment and subsequently begins employment with the Borough again.
(3) 
Any officer who shall have been eligible to be a participant in this program on January 1, 2016, (the effective date of the Collective Bargaining Agreement) through to the effective date of this section may, within 45 days after the effective date of this section, make the written election to participate in the program and may designate an effective date on or after January 1, 2016, when that officer desires his participation in the program to commence (the "look-back period"). After 45 days from the effective date of this section, officers shall not be eligible to designate a prior effective date during the look-back period.
E. 
Benefit calculation. For all Pension Plan purposes, continuous service of a police officer participating in the Act 44 Program shall remain as it existed on the effective date of commencement of participation in the Act 44 Program. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Borough Police Pension Plan. The average monthly compensation of the police officer for pension calculation purposes shall remain as it existed on the effective date of commencement of participation in the Act 44 Program. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Pension Plan. The pension benefit payable to the members shall increase only as a result of cost of living adjustments in effect on the effective date of the member's participation in the Act 44 Program or by applicable cost of living adjustments granted thereafter.
F. 
Accumulation of the Act 44 Program account. The monthly retirement benefits that would have been payable had the police officer elected to cease employment and receive a normal retirement benefit, shall, upon the police officer commencing participation in Act 44 Program, accumulate to the benefit of that Officer and be accounted for on that police officer's Act 44 Program Account. Participants shall not have the option of self-directed investment of their individual Act 44 Program account while in the Act 44 Program. Instead, the monies shall be invested in a fund to be identified and selected solely by the Borough in accordance with applicable law so as to generate a rate of return of no less than 0% and no more than 4.5%.
G. 
Accrual of nonpension benefits. After a police officer elects to participate in the Act 44 Program, all other contractual benefits shall continue to accrue with the exception of those provisions relating to the Police Pension Plan.
H. 
Payout. Upon separation from employment, the Act 44 Program payout options available to the Act 44 Program participant shall be as follows:
(1) 
The balance of the Act 44 Program participant's account, less withholding taxes, if any, remitted to the Internal Revenue Service, shall be paid to the participant or the participant's surviving beneficiary.
(2) 
The balance of the Act 44 Program participant's account shall be paid directly to the custodian of an eligible retirement plan as defined by Internal Revenue Code § 402(c)(8)(b), or in the case of an eligible rollover distribution to the surviving spouse of a deceased Act 44 Program participant, an eligible retirement plan that is an individual retirement account or an individual retirement annuity as defined by Internal Revenue Code § 402(c)(9).
(3) 
If the Act 44 Program participant or beneficiary fails to make an election within 60 days following the date of termination of Act 44 Program participation, then the Chief Administrative Officer of the pension plan shall implement Subsection H(1) above.
I. 
Service-connected disability during Act 44 Program. If an Act 44 Program participant becomes temporarily incapacitated due to a service-connected injury during his participation in the Act 44 Program, that police officer shall continue to participate in the Act 44 Program as if fully employed. The police officer shall receive disability pay in the same amount as disabled police officers who are not participating in Act 44 Program. In no event shall a police officer on temporary disability have the ability to draw from his Act 44 Program account. However, notwithstanding any other provision in this subsection, if a police officer is disabled and has not returned to work as of the date of his required resignation, then such resignation shall take precedence over all other provisions herein and said officer shall be required to resign. Nothing contained in this Plan shall be construed as conferring any legal rights upon any police officer or other person to a continuation of employment nor shall participation in the Act 44 Program supersede or limit in any way the right of the Borough to honorably discharge a police officer based upon an inability to perform his or her full duties as a police officer. If an Act 44 Program participant becomes eligible for a service-connected disability pension and his employment is terminated due to an inability to continue in service on grounds that render him eligible for a service-connected disability pension, the monthly normal retirement benefit of the Act 44 Program participant shall be reclassified as being on account of a service-connected disability. In no event shall an Act 44 participant's monthly retirement benefit be recalculated. The Act 44 participant's monthly retirement benefit shall remain 50% as calculated at the time of entry into the Act 44 Program subject to applicable cost-of-living adjustments.
J. 
Death. If an Act 44 Program participant dies, the participant's eligibility for Act 44 Program shall terminate upon the date of death. In such case, if the Act 44 Program account balances have not yet been paid out, the participant's legal beneficiary shall have the same rights and options as the participant to withdraw/roll over the account balance.
K. 
Forfeiture of benefits. Notwithstanding a police officer's status as an Act 44 Program participant, a current or former participant who is convicted or pleads guilty to engaging in criminal misconduct which constitutes a "crime related to public office or public employment," as that phrase is defined in Pennsylvania's Pension Forfeiture Act, 43 P.S. §§ 1311 through 1314, shall forfeit his right to receive a pension, including any amounts currently deposited in the Act 44 Program Account. In such a case, the participant shall only be entitled to receive the contributions, if any, made by the participant to the Police Pension Fund, without interest.
L. 
Cost of management for Act 44 Program. The police officers and the Borough agree that any costs or fees associated with the management of the Act 44 Program accounts shall be paid directly by the participants and each participant's Act 44 retirement account is subject to an annual charge of $40, plus 0.60% annual asset charge, payable out of said account. Should the Borough assert the need to increase such charge, the parties shall negotiate.
M. 
Amendment. Any amendments to this Act 44 Program section shall be consistent with the provisions covering individual retirement option plans set forth in any applicable collective bargaining agreement and shall be binding upon all future Act 44 Program participants and upon all Act 44 Program participants who have balances in their Individual Retirement option accounts. The Act 44 Program may only be amended by a written instrument, not by any oral agreement or past practice.
N. 
Construal of provisions. A police officer's election to participate in the Act 44 Program shall in no way be construed as a limitation on the Borough's right to suspend or to terminate a police officer for just cause or to grant the police officer an honorable discharge based upon a physical or mental inability to perform his or her duties.
O. 
Severability. The provisions of the Act 44 Program 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 the Act 44 Program shall not be affected thereby. It is hereby expressly declared as the intent of the Borough that the Act 44 Program would have been adopted had such unconstitutional or illegal provision or provisions not been included herein.
P. 
Effective date. The effective date of the Act 44 Program shall be January 1, 2016.
Should any section or provision of this chapter be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of this chapter as a whole, or of any part thereof.