[Ord. 1679, 8/12/1991, § 2]
The mandatory police pension fund of the Borough of Pottstown,
hereinafter referred to as the "pension fund," shall become effective
as of July 8, 1991, on which date it shall replace the former police
pension fund of the Borough of Pottstown enacted by an ordinance approved
August 11, 1958, as amended, which former fund is hereinafter referred
to as the "prior fund"; and the existing PMRS plan, approved January
14, 1982, as amended, and referred to as the "PMRS fund."
[Ord. 1679, 8/12/1991, § 3]
Pursuant to the terms and conditions of the Act of May 29, 1956,
53 P.S. 1767 et seq., there is hereby established in the Borough of
Pottstown a police pension plan and police pension fund for the benefit
of full-time police officers of the Borough. The pension plan shall
be known as the "Borough of Pottstown Police Pension Plan," (hereinafter
"plan"). The pension fund shall be known as the "Borough of Pottstown
Police Pension Fund," (herein-after "fund").
[Ord. 1679, 8/12/1991, § 4]
As of the effective date of the pension fund, all assets and
liabilities of the former police pension fund of the Borough of Pottstown,
and those as withdrawn from the Pennsylvania Municipal Retirement
System, shall be transferred to the pension fund; thereafter, all
payments of pensions and other benefits shall be made from the Pension
Fund, and all contributions by the members, by the Borough of Pottstown
and from all other sources shall be paid into the pension fund.
[Ord. 1679, 8/12/1991, § 5]
All regular full-time members of the Pottstown Police Department
of the Borough, as of the effective date who are subject to the provisions
of Civil Service, shall become members of the pension fund. Those
who have been members of the former "prior fund" shall be referred
to hereinafter as "original members." Members of the PMRS fund shall
be referred to hereinafter as "PMRS members." New members of the Police
Department, after the effective date, shall become members of the
pension fund upon becoming regular members of the Police Department.
[Ord. 1679, 8/12/1991, § 6]
In recognition of the vested contract rights acquired and held
by the "original members" and the "PMRS members" under the prior fund,
it is the intent of this Part, as authorized and permitted by existing
law, to preserve, continue and guarantee all such rights and benefits
in every instance where those benefits under the "prior fund" and
the "PMRS fund" may be more beneficial and advantageous to the "original
members" than the regulations and benefits herein mandatorily imposed.
[Ord. 1679, 8/12/1991, § 7; as amended by Ord.
1936, 4/8/2002]
A Pension/Investment Board is hereby established for the purpose
of administering the Borough of Pottstown's Police Pension Plan and
Pension Fund, and which Board shall be known as the Borough of Pottstown's
Police Pension/Investment Board, (hereinafter "Board").
A.
The Board shall consist of seven members, three of whom shall be
police officers of the active employment of the Borough of Pottstown,
elected by the Pottstown Police Officers' Association; one of whom
shall be an elected council member appointed by the Pottstown Borough
Council; one of whom shall be the Mayor of the Borough of Pottstown;
and one of whom shall be the duly appointed Borough Manager of the
Borough of Pottstown; and one of whom shall be the duly appointed
Finance Director of the Borough of Pottstown. The Board shall elect
a Chairman and Vice Chairman of the Board and vacancies of the Board
shall be filled in the same fashion and manner as the previous occupant
was selected.
B.
Members of the Board shall serve as such without compensation.
C.
The term of office for members of the Board shall be two years; 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 of the Borough of Pottstown; and, provided, further,
that any member of the Board who shall cease to be a member of the
Borough government shall cease to be a member of the Board on the
day he/she ceases to hold office as a Borough Council member and/or
Mayor. Members may be reappointed or reelected.
D.
The duly appointed Manager of the Borough of Pottstown shall appoint
an Executive Secretary as the non-voting Secretary of the Board, and
who shall keep minutes of the Board's proceedings and all dates, records
and documents pertaining to the Board's administration of the Pension
Plan.
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/her
own part, excepting only his/her own willful misconduct. The Borough
shall indemnify and save harmless each and every member of the Board
against any and all expense, claims, or liabilities arising from his
or her membership on the Board, excepting those arising out of the
Board member's own willful misconduct. Members of the Board shall
serve without bond.
F.
No member of the 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 its Chairman and attested to by its
Secretary.
H.
The Board shall meet at least quarterly and at other times at the
call of the Chairman or the request of the majority of the Board.
[Ord. 1679, 8/12/1991, § 8]
The Board shall have the following powers and duties:
A.
To administer the Borough of Pottstown Police Pension Plan in accordance
with an agreement of trust entered into by the Borough Council of
the Borough of Pottstown and a corporate fiduciary, which agreement
of trust shall permit the fiduciary to manage and operate the fund
and to receive, hold, invest and disburse any sum or sums as may be
necessary to carry out the plan and all other applicable statutes,
ordinances and regulations; or in accordance with an agreement of
trust entered into by the Borough Council of the Borough of Pottstown
and a private fiduciary commonly known as money managers of the Board's
selection, as recommended through an investment consultant, which
agreement of trust shall permit the money managers to operate the
fund and to receive, hold, invest and disburse any sum or sums as
may be necessary to carry out the plan and all other applicable statutes,
ordinances and regulations.
B.
To provide guidance to the Trustee of the Borough of Pottstown Police
Pension Fund, or its financial consultant, for the investment of all
moneys deposited in such fund.
C.
To make rules and regulations for the governance of the affairs of
the Board to better enable it to carry out its powers and duties imposed
hereunder.
D.
To employ, upon approval of the Borough Council, retain and compensate
approved actuaries, accountants, attorneys, money managers and an
investment consultant, as it may deem necessary, to carry out its
duties hereunder. The expense of the administration of the fund and
the plan shall be paid from the assets of the fund.
E.
To make all decisions pertinent to the award of any pension to any
applicant or participant or for the return of any individual contributions
to any person who may be entitled to the same under the plan.
F.
To designate the depository of the pension funds received through
the Borough.
[Ord. 1679, 8/12/1991, § 9]
The Borough of Pottstown Police Pension Fund shall be created
and administer the following resources:
A.
All funds, including those funds withdrawn from the Pennsylvania
Municipal Retirement System and all funds on deposit and held for
pension and retirement benefits of the police officers of the Borough
of Pottstown, shall be transferred to the fund created hereby, subject
to any liabilities which may exist against such fund.
B.
The allocation determined by Borough Council of the payments made
by the Treasurer of the Commonwealth of Pennsylvania from the moneys
received from the General Municipal Pension System State Aid Program.
C.
Payments made by contributions of the police officers in accordance
with the Borough of Pottstown Police Pension Plan as may be in effect
from time to time.
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 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 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 other moneys or funds of the Borough.
[Ord. 1679, 8/12/1991, § 10]
The amounts of the payments made by the Treasurer of the Commonwealth
of Pennsylvania from the moneys received from the General Municipal
Pension System State Aid Program, which are determined by the Council
to be deposited in the fund, shall be used and applied as follows:
A.
To pay expenses incurred for the administration of the fund and the
plan;
B.
To reduce any unfunded liability, defined as the present value of
liability of the fund on account of retirement benefits payable under
this Part to police officers of the Borough of Pottstown for service
prior to the date upon which they first made contributions to the
plan, offset by the value of any assets in the fund; or after such
liability has been funded;
C.
To apply against the annual obligation of the Borough for future
service cost, defined as the amount of money required to be contributed
annually into the fund on account of benefits payable under the plan
to police officers of the Borough of Pottstown for service subsequent
to the date of the establishment of the plan; or to the extent that
the payment made be in excess of such obligation;
D.
To reduce member contributions;
E.
Any other moneys paid into the fund shall be applied equally against
the member and Borough obligations for future service cost.
[Ord. 1679, 8/12/1991, § 11]
The fund shall be deposited with, managed and invested by the
designated money manager(s) and investment consultant who shall carry
out their responsibilities in accordance with the terms of a trust
agreement; and, further subject to such investment policy and guidance
as the Board shall, from time to time, give to the money manager(s)
and/or investment consultant.
[Ord. 1679, 8/12/1991, § 12]
The Board shall have full power and authority to make all decisions
in accordance with the terms of this Part including, but not limited
to, the following:
A.
To determine all questions relating to the eligibility of police
officers to become participants in the plan.
B.
To compute and certify to the corporate fiduciary the amount and
kind of benefits payable to participants.
C.
To make and publish such rules and regulations for the administration
of the plan as are not inconsistent with the terms of this Part.
D.
The Council shall supply full and timely information to the Board
on all matters relating to the pay of all police officers of the Borough
of Pottstown, their retirement, death or other cause for termination
of employment and 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 corporate fiduciary of the
fund such information as the corporate fiduciary requires to carry
out its responsibilities under its agreement with the Borough.
[Ord. 1679, 8/12/1991, § 13]
This agreement shall cover all full-time police officers of
the Borough of Pottstown, hereinafter referred to as "member." Every
full-time police officer employed by the Borough shall, upon the commencement
of his or her employment, be a member covered under this agreement
and entitled to the benefits provided hereunder.
[Ord. 1679, 8/12/1991, § 14]
The superannuation retirement date shall be the date on which
the member has attained 50 years of age and has completed 25 years
of service.
[Ord. 1679, 8/12/1991, § 15]
The basic monthly pension benefit shall be 1/2 of the monthly
average salary of such member during the last 36 months of employment.
[Ord. 1679, 8/12/1991, § 16]
In addition to the basic monthly pension benefit, those members
eligible shall receive a monthly service increment to be determined
by computing the number of whole years of service in excess of 25
years and before attainment of age 65, and multiplying this number
by an amount equal to 1/40 of the amount of the basic monthly pension
benefit. This service increment shall not, however, exceed $100 per
month.
[Ord. 1679, 8/12/1991, § 17]
Upon the death of a retired member, or upon the death of an
active member who was eligible for retirement at the time of death,
the surviving spouse (or the surviving minor children in the absence
of a spouse or upon the remarriage of the surviving spouse) will receive
a monthly pension equal to 1/2 of the pension which such retired member
was receiving or which such active member was eligible to receive
if he/she had been retired at the time of death.
[Ord. 1679, 8/12/1991, § 18; as amended by Ord. 1777,
10/10/1994]
1.
If a member who was employed before the effective date of this Part
has had 10 or more years of total service as a police officer, he/she
may, upon application or on application of one acting in his/her behalf,
be retired by the Board on a disability allowance prior to his/her
superannuation retirement date if the physician designated by the
Board, after medical examination of the member made at the place of
residence of the member or at a place mutually agreed upon, shall
certify to the Board that the member is unable to perform the duties
of a police officer. The disability benefits shall be equal to 30%
of the member's monthly average salary during the last 36 months of
employment. When the disability of a member is determined to be service
connected, no minimum period of service shall be required for eligibility.
2.
Where the disability of a member is determined to be service-connected,
permanent, and results in honorable discharge from service, the disability
benefits shall be equal to 75% of the member's monthly average salary
during the last 36 months of employment. The disability benefits shall
not be reduced by the amount of any payments for which the member
shall be eligible under the Act of June 2, 1915 (P.L. 736, No. 338),
known as the Pennsylvania Workmen's Compensation Act, or the Act of
June 21, 1939, (P.L. 566, No. 284), known as the Pennsylvania Occupational
Disease Act.
3.
Should a disability annuitant die before the total disability retirement
allowance received is at least equal to the amount of his/her accumulated
deductions at the time of disability retirement, then the Board shall
pay to the named beneficiary, if living, or if the named beneficiary
predeceased the annuitant, or no beneficiary was named, then to the
annuitant's estate, an amount equal to the difference between such
total retirement allowance received and the annuitant's accumulated
deductions, including interest and excess interest earnings. If such
difference is less than $100 and no letters have been taken out on
the estate within six months after death, then such difference may
be paid to the undertaker or to any person or municipality who or
which shall have paid the claim of the undertaker.
4.
A monthly pension benefit of 75% of the member’s average monthly
compensation during the last 36 months of employment shall be paid
to the survivor annuitant of officers dying in the line of service.
[Amended by Ord. 2083, 12/13/2010, § 2]
5.
Killed-in-Service Benefit. Any officer who is killed in the line of service shall be entitled to the benefits provided under Act 51 of 2009. In accordance with the terms of that statute, such benefits are payable by the Commonwealth of Pennsylvania and not by the Borough from its Police Pension Fund or other Borough fund. If such benefits are payable by the Commonwealth, the Borough and/or the Police Pension Plan shall not be required to pay benefits described in Subsection 4 above.
[Added by Ord. 2083, 12/13/2010, §3]
[Ord. 1679, 8/12/1991, § 19; as amended by Ord.
1777, 10/10/1994, § 3]
1.
Any police officer of the Borough of Pottstown who has been a full-time
officer and a member under this plan for a period of at least six
months, and who shall enter into the military service of the United
States, shall have credited to his/her employment record for pension
or retirement benefits all of the time spent by him/her in such military
service, if such person returns or has heretofore returned to his/her
employment within six months after his/her separation from the service.
2.
An active member may be provided full service credit for each year
of military service or fraction thereof, not to exceed five years
for military service prior to employment by the Borough at the option
of Borough Council.
3.
Should the Borough decline to purchase the military time for the
intended member, the member will have the option of purchasing the
military time. Should the member purchase the time, he may use one
of the following payment methods:
4.
The amount due for purchase of credit for nonintervening military
service shall be computed by applying the average normal cost rate
for Borough pension plans as certified by the Public Employee's Retirement
Study Commission, but not to exceed 10% to the member's average annual
rate of compensation over the first three years of municipal service
and multiplying the result by the number of years and fractional part
of a year of creditable nonintervening military service being purchased
together with interest at the rate of 4 3/4% compounded annually
from the date of initial entry into municipal service to the date
of payment.
5.
Any member shall be eligible to receive service credit for intervening
or nonintervening military service provided that he/she is not entitled
to receive, eligible to receive now or in the future or is receiving
retirement benefits for such service under a retirement system administered
and wholly or partially paid for by any other governmental agency
with the exception of a member eligible to receive or receiving military
retirement pay earned by a combination of active duty and nonactive
duty with a Reserve or National Guard component of the Armed Forces,
which retirement pay is payable only upon the attainment of a specified
age and period of service under 10 U.S.C., Ch. 67 (relating to retired
pay for nonregular service).
[Ord. 1679, 8/12/1991, § 20]
All active members of the plan shall pay into the fund, monthly,
an amount as set annually by resolution of the Pottstown Borough Council,
not to exceed 8% of their gross monthly compensation. Said payments
shall be made by each active member of the plan during such periods
of time as required by the Pottstown Borough Council.
[Ord. 1679, 8/12/1991, § 21]
If an actuarial study shows that the condition of the fund is
such that payments into the fund by members may be reduced below the
8% prescribed in 3719 hereof or eliminated, and that if such payments
are reduced or eliminated, contributions from the General Fund of
the Borough will not be required to keep the fund actuarially sound,
the Council may, by resolution, on an annual basis, reduce or eliminate
payments into the fund by members.
[Ord. 1679, 8/12/1991, § 22]
If a member, before reaching his/her superannuation retirement
date and after having completed 12 years of total service, for any
reason, ceases to be a police officer of the Borough of Pottstown,
he shall be entitled to vest his/her retirement benefits until his/her
superannuation retirement date by filing with the Board a written
notice of his/her intention to vest within 90 days of the date of
his/her termination. Upon reaching his/her superannuation retirement
date, he shall be paid a partial retirement benefit determined by
applying the percentage his/her years of service bear to the years
of service which he/she would have rendered had he/she continued to
work until his/her superannuation retirement date to the gross pension,
which he/she would have earned had he/she continued as a full-time
police officer to his/her superannuation retirement date, using, however,
the monthly average salary during the appropriate period prior to
his/her termination of employment.
[Ord. 1679, 8/12/1991, § 23]
Upon termination of full-time employment before completion of
12 years of service or upon the death of a police officer before commencement
of monthly pension benefits, a refund shall be made of any moneys
paid by such police officer, with interest. The rate of interest shall
be 6.5% per annum on and after January 1, 1991, until a new rate by
the Board shall be established. In the case of death, such refund
shall be paid to his/her designated beneficiary or, in the absence
of such designation, to his/her estate,
[Ord. 1679, 8/12/1991, § 24]
All moneys previously allocated to a member due to excess investment
earnings under the Pennsylvania Municipal Retirement System shall
remain to the credit of such member, and shall be accumulated with
interest of 6.5% per annum to provide additional benefits to the member
at retirement or termination. No future excess investment earnings
shall be allocated to any member of the plan after the allocations
are made upon the return of all moneys from PMRS withdrawals.
[Ord. 1679, 8/12/1991, § 25]
A member employed before the effective date of this Part who
is involuntarily terminated after having completed eight years of
total service or who voluntarily terminates after having completed
24 years of total service, before reaching his/her superannuation
retirement date, shall be eligible for an early retirement benefit.
Such benefit shall be equal to 1/2 of the monthly average salary of
such member during the last 36 months of employment, multiplied by
the percentage his/her years of service bear to the years of service
which he/she would have rendered had he/she continued to work until
his/her superannuation retirement date, actuarially reduced for each
year that such member's early retirement date precedes his/her superannuation
retirement date.
[Ord. 1679, 8/12/1991, § 26]
All payments under the plan shall be, to the fullest extent
permitted by law, free and clear of any debts, contracts, engagements,
anticipations or liability to levy, attachment, execution or sequestration
against the recipient, and shall not be subject to sale, assignment,
transfer, claim, judgment or bankruptcy proceedings against the recipient
of such payments, whether voluntary or involuntary.
[Ord. 1679, 8/12/1991, § 27]
Any member of the plan shall have the right to:
A.
Inquire of the Board as to his or her status or condition in the
plan, including prospective benefits to which such member may be entitled
in the future.
B.
To examine records of the Board pertaining to his or her pension
records.
C.
To appear personally before the Board with or without counsel and
to be heard on any matter pertaining to his or her rights under the
plan.
[Ord. 1679, 8/12/1991, § 28]
The retirement benefits provided herein shall not be reduced
by any social security payments received by a member or to which said
member is entitled.
[Ord. 1679, 8/12/1991, § 29]
The plan and fund established by this Part may be discontinued,
modified, altered, terminated or repealed according to law by ordinance.
[Ord. 1679, 8/12/1991; as added by Ord. 1777, 10/10/1994;
§ 3; as amended by Ord. 1854, 8/11/1997, § 1,
2]
1.
Any member retiring on or after January 1, 1995, under the terms
and conditions of a superannuated retirement, shall be eligible to
receive annual cost of living adjustments. These adjustments shall
be effective on February first each year using the previous year's
nonclerical Consumer Price Index for the greater Philadelphia area.
2.
The total authorized cost of living allowance shall be a percentage
of the final average monthly compensation (excluding length of service
increment).
3.
The annual cost of living allowance adjustments shall be based on
the total monthly pension benefit the retiree was receiving the previous
year.
4.
In no case shall the monthly pension benefit exceed 75% of the final
monthly average of the compensations used to compute retirement benefits
minus $100, excepting State allocated, mandated or provided cost of
living allowances.
5.
The total cost of living allowance shall not exceed 30% of the final
monthly average of the compensations used to compute retirement benefits.
6.
No increase in the presently authorized cost of living allowances
shall be granted which would impair the actuarial soundness of the
pension fund.
7.
Cost of living adjustments are as follows:
A.
For officers retiring on or after January 1, 1995, the cost of living
allowance shall be capped at seven and 1/2% of the final monthly average
of the compensations used to compute retirement benefits.
B.
For officers retiring on or after the effective date of this Part,
the cost of living allowance shall be capped at 15% of the final monthly
average of the compensations used to compute retirement benefits.
