[Ord. 988, 4/7/1993]
Pursuant to the provisions of Act 600 of 1956, the Borough of Quakertown hereby establishes and reenacts a Police Pension Fund (originally passed as Ordinance 591 of 1957, as amended) (hereinafter referred to as the "fund") for the benefit of all full time police officers in the Quakertown Police Department.
[Ord. 988, 4/7/1993]
The fund shall be under the super vision of the Borough Council of Quakertown. However, Borough Council may appoint the Borough Manager or a Pension Fund Committee who shall supervise the activities of the fund and who shall report to Borough Council. In addition, Borough Council may appoint a trustee who shall manage the fund, and report directly to the Borough Manager, Pension Police Fund Committee and/or Borough Council.
[Ord. 988, 4/7/1993]
Any full time police officer shall become a member of the fund by completing a form provided by the Borough. In joining the fund, the member agrees to be bound by the provisions of this Part and amendments thereto, and by applicable State statutes including Act 600 of 1956, as amended. For purpose of this Part, a full-time police officer is one appointed by Borough Council in conformance with any/all state laws and Borough ordinances. A member's actual beginning date for purposes of calculating benefits shall be his first day of full-time employment in the Quakertown Police Department.
[Ord. 988, 4/7/1993; as amended by Ord. 1083, 5/7/2003, § 404]
Each member shall pay into the fund an amount equal to but not less than 5% nor more than 8% of salary as deducted from each paycheck. For purposes of this section, "salary" shall be defined as W-2 wages (including base pay, overtime, longevity and holiday pay). However, Borough Council shall review annually the financial condition of the fund and may, by annual resolution, reduce or eliminate contributions by members.
[Ord. 988, 4/7/1993; as amended by Ord. 1001, 9/1/1993, § 1; and by Ord. 1167, 2/3/2010]
A member of the fund who shall have attained the age of 50 years and who shall have served an aggregate of at least 25 years in the Quakertown Police Department may retire from active duty. The monthly pension or retirement benefits shall be computed at 1/2 the average monthly salary of such member during the last 36 months of employment. For purposes of computing this pension benefit, "salary" shall be defined as W-2 wages (including base pay, overtime, longevity and holiday pay). In addition, the pension benefit will be increased by a service increment of $100 per month for each year of service in excess of 25, up to a maximum service increment of $500 per month.
[Ord. 988, 4/7/1993]
Any member who dies, is discharged or voluntarily withdraws, or retires on disability with less than 12 years of service or membership in the fund and has not acquired vested rights shall be paid all of his contributions to the fund, plus 5% interest that has accrued.
[Ord. 988, 4/7/1993]
All members in the fund shall have the right to vested pension benefits following a minimum of 12 years of membership in the Fund. Any member who wishes to vest his pension must file his intent to do so in writing to Borough Council within 90 days of the date he ceases to be a full-time policeman in Quakertown. The pension shall be payable starting after a projected retirement date, that is, the date the member would have retired had he remained in the fund. Upon reaching this projected retirement date, he shall be paid a monthly retirement benefit determined by applying the percentage his years of service to the years he would have rendered had he continued to work until actual retirement, to the monthly pension. The monthly pension shall be 1/2 the average monthly salary the member was paid during his last 60 months of employment in the fund.
Monthly Pension =
One-half the member's average age monthly salary during his last 60 months of employment
X
Actual number of years employed in Quakertown Police Department
Total number of years member would have worked to be eligible for a pension.
[Ord. 988, 4/7/1993; as amended by Ord. 1045, 8/5/1998, § 1; by Ord. 1049, 11/4/1998, § 1; and by Ord. 1083, 5/7/2003, § 408]
1. 
A member may, upon written application and approval by Borough Council, be retired on disability allowance. However, before approval by Borough Council, the member must submit to a physical examination by a physician designated by Council, and this physician must certify that the policeman is physically or mentally incapacitated for the performance of his duties such that he ought to be retired, and that such incapacity was caused by an incident that occurred while being employed on duty in the Quakertown Police Department.
2. 
Once every year Council may require any disability annuitant to undergo a medical examination by a physician designated by Council. Should the physician report and certify to Council that such disabled annuitant is no longer physically or mentally incapacitated for the performance of his duties associated with the normal occupational requirements of any position with the Police Department, then his disability benefits hereunder shall be discontinued. Should a disability annuitant refuse to submit to at least one medical examination in any year by a physician designated by Council, his disability benefits hereunder shall be discontinued until withdrawal of such refusal, and should such refusal continue for one year, then all his rights in and to any municipal annuity for disability or for retirement not voluntarily provided for by this act shall be forfeited.
3. 
In the event a member is killed in service and his widow and/or children are not eligible for any benefits under § 409 of the plan, the member's designated beneficiary shall be paid all of his contributions to the fund, plus 5% interest that has accrued.
[Amended by Ord. 1167, 2/3/2010]
4. 
If a member retires because of a "total and permanent disability," he shall be entitled to receive a pension benefit equal to 50% of his base salary at the time the disability was incurred, offset by Social Security. This benefit shall continue until his death. "Total and permanent disability" shall mean any condition arising from service-connected illness or injury which precludes an employee from performing the duties associated with the normal occupational requirements of any position with the Police Department as certified by a physician designated by the Borough.
[Ord. 988, 4/7/1993; as amended by Ord. 1083, 5/7/2003, § 409]
1. 
If a member dies, survived by a spouse or dependent children, after having become eligible to receive a pension benefit [i.e., he was eligible because (i) he was already receiving a pension (ii) he met the age and service requirements but he had not yet retired], then a monthly pension benefit shall be provided.
2. 
The amount of the monthly pension benefit shall be 50% of the pension the member was receiving or would have been entitled to receive if he had been retired at the time of his death.
3. 
In the event the member dies after completing 12 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in § 407. If a vested benefit is selected, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following the member's normal retirement date.
4. 
In the event a member dies after completing 20 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in § 413. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit commencing on the first day of the month following the election of this benefit.
5. 
The monthly pension benefit is payable to the surviving spouse until death, then to surviving dependent children under the age of 18 years or if attending college, under or attaining the age of 23 years. 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. Dependent children shall include step-children, adopted children and any child conceived at the time of the member's death.
6. 
In the event the member dies (and is not killed in service) before completing 12 years of service, his surviving spouse or, if no spouse survives or if he or she survives and subsequently dies, the child or children under the age of 18 years or, if attending college, under or attaining the age of 23 years, of the member of the police force shall be entitled to receive payment of all money which the member invested in the pension fund plus interest or other increases in the value of the member’s investment in the pension fund, unless the member has designated another beneficiary for this purpose.
[Added by Ord. 1191, 4/4/2012]
[Ord. 988, 4/7/1993]
The expenses of administering or managing this fund, including the cost of a Trustee or actuary shall be paid out of the Police Pension Fund.
[Ord. 988, 4/7/1993]
Each member shall be entitled to a cost-of-living increase to commence on the first January 1 from the commencement of his pension and on each January 1 thereafter. Such cost-of-living increases shall not exceed the percentage increase as determined by the Department of Labor in the All Urban Consumers Price Index for the Philadelphia Metropolitan Region from the year in which the member last worked; provided further, that in no such case shall the total police pension benefits exceed 75% of the salary for computing retirement benefits; and, provided further, that the total cost-of-living increase shall not exceed 30%. No cost-of-living increase shall be granted which would impair the actuarial soundness of the pension plan.
[Ord. 988, 4/7/1993]
It is the intention of Borough Council of the Borough of Quakertown to establish this pension plan and fund in accordance with Pennsylvania Laws and Act 600 and Act 205 and any other applicable laws of the Commonwealth of Pennsylvania.
[Ord. 1065, 4/9/20001, § 1]
Each member may retire on or at any time after his early retirement date. (For purposes of this section, early retirement date shall mean the first day following the date on which the member completes 20 years of service.) Upon termination, the member must file with the Manager of the Borough a written notice of his intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit. The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation filed with the Public Employee Retirement Commission.
[Ord. 1065, 4/9/2001, § 1]
1. 
The police pension plan may provide full service credit for each year of military service or fraction thereof, not to exceed five years, to any member of the police force who was not employed by the Borough prior to such military service. The amount due for the purchase of credit for military service other than intervening military service shall be computed by applying average normal cost rate for the police pension plan as certified by the Public Employee 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 member 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. Any member of the police force shall be eligible to receive service credit for nonintervening military service, provided that he 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. Chapter 67 (relating to retired pay for nonregular service).
[Amended by Ord. 1191, 4/4/2012]
2. 
Any member of the Borough of Quakertown Police Department who has been employed as such for at least six months and who enters active military service for the United States shall have credited to his employment record for pension or retirement benefits all of the time spent by him in such military service, provided that he return to employment within six months after his separation from such military service and be ineligible to receive military retirement pay as a result of that service.
[Added by Ord. 1191, 4/4/2012]
[Ord. 1126, 12/6/2006, § 1]
1. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
BENEFICIARY
The individual identified by a police officer to receive the contents of an officer's DROP account in the event of the death of an officer during period in which the officer is participating in the DROP, but before the officer separates from employment.
DROP
Deferred retirement option plan.
DROP ACCOUNT
Separate account created to accept DROP participants' monthly pension check while a DROP participant.
FUND OR PLAN
The Police Pension Plan for the Borough of Quakertown.
POLICE OFFICERS
Police officers of the Borough of Quakertown.
2. 
Eligibility. As of the effective date of this section, police officers who have not retired prior to the implementation of the DROP program, may enter into DROP on the first day of any month following completion of 25 years of credited service and attaining the age of 50.
3. 
Written Election.
A. 
A police officer electing to participate in the DROP must complete and file with the Borough Manager a "drop option form" prepared by the Borough which shall evidence the member's participation in the DROP. The form must be signed by the member and notarized and submitted to the Borough prior to the date on which the member wishes the DROP option to be effective. The DROP option notice shall include an irrevocable notice to the Borough, by the member, that the member shall resign from employment with the Borough Police Department effective on a specific date (the "resignation date"). In no event shall the resignation date be shorter than 12 months or longer than 60 months from the execution of the DROP option form. An officer shall cease to work as a police officer on the officer's resignation date, unless the Borough terminates or honorably discharges the officer prior to the resignation date.
B. 
In addition, all retirement documents required by the Police Pension Plan Administrator must be filed and presented to the Borough for approval of retirement and payment of pension. Once a retirement application has been approved by the Borough, it is irrevocable.
4. 
Pension Contributions. A police officer shall not be required to make any contributions to the fund during his/her DROP period.
5. 
Limitation on Pension Accrual. After the effective date of the DROP option, the police officer shall no longer earn or accrue additional years of continuous service for pension purposes.
6. 
Benefit Calculation. For all retirement fund purposes, continuous service of a police officer participating in the DROP shall remain as it existed on the effective date of commencement of participation in the DROP. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Police Pension Plan of the Borough. 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 DROP. 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.
7. 
Payments to the DROP 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 DROP, be paid into the separate account established to receive the participant's monthly pension payments. This account shall be designated the DROP account. An individual officer's DROP account shall be a self-directed investment vehicle with the officer having exclusive control over the investment of his or her DROP account monies. The Borough accepts no responsibility and makes no guarantee for the performance of any investments made by the officer, nor shall the Borough guarantee or be required to guarantee that an officer's DROP account generate a specific amount of earnings or income or any earnings or income at all. Any investment losses occurring in an officer's DROP account shall be solely the responsibility of the officer, and the Borough assumes no liability or responsibility for the same. Likewise, the Borough's establishment of a DROP shall not be construed to endorse any retirement vehicle, investment manager, nor shall the DROP be construed as providing tax advice or other information to retirees. By entering into the DROP, each participating officer holds the Borough harmless for any tax, financial or other consequences of the DROP program or the officer's participation therein.
8. 
Accrual of Non-Pension Benefits. After a police officer elects to participate in the DROP program, all other contractual benefits shall continue to accrue with the exception of those provisions relating to the Police Pension Plan and the buyback of accrued, but unused, sick or vacation time. A police officer may utilize leave time during the DROP period, but the Borough shall not be required to buyback any such unused leave time at the end of the DROP period.
9. 
Payout. Upon the resignation date set forth in the police officer's drop option notice or such date as the Borough separates the member from employment, the retirement benefits payable to the police officer or the police officer's designated beneficiary, if applicable, shall be paid to the police officer or beneficiary and shall no longer be paid to the police officer's deferred retirement option account. Within 30 days following termination of a police officer's employment pursuant to their participating in the DROP program, the balance in the police officer's DROP account shall be paid to the police officer in a single lump sum payment or at the police officer's option, in any manner permitted by law. By participating in the DROP, each officer agrees to hold the Borough harmless for any tax or other consequences flowing from the officer's disposition of the payout under this section.
10. 
Disability During DROP. If a police officer becomes temporarily incapacitated during his participation in DROP, that police officer shall continue to participate in the DROP program as if fully employed. The police officer shall receive disability pay in the same amount as disabled police officers that are not participating in DROP. In no event shall a police officer on temporary disability have the ability to draw from his DROP account. However, notwithstanding any other provision in this paragraph, if a police officer is disabled and has not returned to work as of his required resignation date then such resignation shall take precedence over all other provisions herein and said officer shall be required to resign. If a police officer becomes permanently disabled during the DROP period, the officer shall be honorably discharged from employment, on the date that the police officer may obtain the contents of his DROP account and, thereafter, commence receiving his normal pension benefit.
11. 
Death. If a DROP participant dies before the DROP account balances are paid, the participant member's designated beneficiary shall have the same rights as the police officer to withdraw the account balance. However, if a DROP participant dies during the DROP period and the Act 600 killed-in-service death benefit is payable to the deceased DROP participant, then the DROP election shall be revoked and the DROP account shall not be payable to any designated beneficiary of the deceased DROP participant. If death occurs during the DROP period but the Act 600 killed-in-service death benefit is not payable, then the DROP participant's designated beneficiary shall be entitled to a lump sum payment of the DROP account balance and any applicable survivor benefit shall be paid by the Fund.
12. 
Forfeiture of Benefits. Notwithstanding a police officer's participation in the DROP Plan, a police officer 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. §§ 1311-1314, and interpreted thereunder, shall forfeit his right to receive a pension, including any amounts currently deposited in the DROP account. In such a case, the police officer shall only be entitled to receive the contributions, if any, made by the police officer to the Fund, without interest.
13. 
Amendment. Any amendments to the DROP ordinance shall be consistent with the provisions covering deferred retirement option plans set forth in any applicable collective bargaining agreement and shall be binding upon all future DROP participants and upon all DROP participants who have balances in their deferred retirement option accounts. The DROP plan may only be amended by a written instrument, not by any oral agreement or past practice.
14. 
Effect of Provisions. A police officer's election to participate in the DROP 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.
15. 
Change in Law. In the event that the DROP provision is declared invalid or illegal by a court of competent jurisdiction or through an administrative determination of the Office of the Auditor General, the police officers shall not have the right to bargain in accordance with Act 111 over deletion of this benefit.
[1]
Editor's Note: Ord. 1166, adopted 2/3/2010, provided that the Borough Pension Plan for full-time employees hired after January 1, 2008, heretofore known as the “Governmental Money Purchase Plan and Trust,” is hereby adopted Borough of Quakertown Governmental Money Purchase Plan and Trust. A copy of said plan and trust is on file in the Borough offices.
[Ord. 1006, 11/2/1994, § 1]
It is the purpose of this Part to create rules and regulations for the pension plan for nonuniformed employees of the Borough of Quakertown.
[Ord. 1006, 11/2/1994, § 1; as amended by Ord. 1068, 10/3/2001, § 1]
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any January 1 after the effective date.
AVERAGE COMPENSATION
The average monthly salary of the employee at any time of reference computed over the final 36 months of active employment (not including any kind of reduced, long-term illness pay) during his continuous employment by the Borough prior to such date of reference.
BOROUGH
The Borough of Quakertown, Bucks County, Commonwealth of Pennsylvania.
CHIEF ADMINISTRATIVE OFFICER
The Quakertown Borough Manager who has primary responsibility for the execution of the administrative affairs of this pension plan.
COUNCIL
The Borough Council, Borough of Quakertown.
EARLY RETIREMENT DATE
The date upon reaching the age of 55.
EFFECTIVE DATE OF THIS PART
The date that the Borough Council passes this Part.
EMPLOYEE
Any person in the full-time employ of the Borough whose customary employment by the Borough is not less than 35 hours a week. Such employment must be permanent; any person hired on a temporary or seasonal basis shall not be eligible for this plan.
FUND
All assets held by the trustee under the trust agreement relating to this pension plan.
MEMBER
Any employee who has satisfied the eligibility requirements established in this Part and who is, at the time of reference, making such contributions as may be required pursuant to § 424, Subsection 1, hereof.
NORMAL RETIREMENT DATE
The first day of the month coincident with or following the date on which the member attains age 65.
PLAN
The Pension Plan for Nonuniformed Employees of the Borough of Quakertown, as herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending the following December 31.
SERVICE
The aggregate of a member's total periods of employment as a full-time employee of the Borough. If a member enters military service, either voluntarily or by conscription, after he has been employed for at least six months, such time spent in the armed forces of the United States during a period of national emergency shall be counted as service for the purposes of this plan, provided such member returns to service with the Borough within six months after his discharge or release from such active military duty in the armed forces of the United States. The time spent in military service due to voluntary extension of such military service during a period of peace time shall not be included as service for the purpose of this plan. Time spent on Reserve or National Guard training shall be included as service for the purposes of this plan.
TRUST AGREEMENT
The contract between the Borough and the trustees establishing the terms by which and under which the fund is invested, distributed, accounted for and terminated, as the same now exists and as it may hereafter be amended.
TRUSTEE
The Council or any other agency or person appointed by the Council to serve in that capacity.
Wherever applicable as used herein, unless the contest specifically provides otherwise, the singular and the plural shall be interchangeable, and the masculine or feminine pronoun shall include either sex.
[Ord. 1006, 11/2/1994, § 1]
1. 
All persons who are employees (as defined in this plan) as of the effective date hereof shall be a member as of the effective date.
2. 
Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.
[Ord. 1006, 11/2/1994, § 1]
1. 
Contributions by Members. Members are not required to contribute into the fund. However, the Council, at its own discretion, may require members to contribute in order to keep the fund actuarially sound. If contributions are required, members would contribute a percentage of their annual compensation. The Council, on a annual basis, by ordinance or resolution, will determine the percentage to be used in deducting member's contributions. Individual records of contributions by members shall be maintained including all interest credited to the member's contribution account. Interest to be credited shall be 5% annually.
2. 
Refund of Member's Contributions. Any member who for any reason shall be ineligible to receive a pension after having made contributions shall be entitled to a refund of his individual account balance; such refund is payable immediately upon discontinuance of his employment with the Borough or within a reasonable time (not more than 45 days after discontinuance). If such discontinuance is due to death, then such refund shall be paid to his designated beneficiary or, in the absence thereof, to his estate. If the disabled or retired member is receiving a benefit by reason of disability or retirement, then the refund payable to the beneficiary is equal to the individual account balance at the date of disability or retirement, less any payments made to the member.
3. 
Deposits. Contributions by members (if any) shall be remitted to the trustee not less than monthly.
4. 
State Aid. Payments made by the State Treasurer from the monies received from taxes upon premiums by foreign casualty insurance companies for purposes of pension retirement or disability benefits for members shall be used as follows: (i) to reduce the unfunded liability, or, after such liability has been fully funded; (ii) to apply against the annual obligation of the Borough for future service costs, or to the extent that the payment may be in excess of such obligation; (iii) to reduce member contributions pursuant to § 424, Subsection 1, hereof.
5. 
Borough Contributions. Subject to the provisions and limitations set forth in other sections of this Part, the Borough shall contribute the amounts certified to be necessary by the fund's actuary to provide the benefits provided by the plan.
6. 
Other Contributions. The fund shall be authorized to receive by gift, grant, devise or bequest, any money or property, real, personal or mixed, in trust for the benefit of the fund. The trustee of the fund shall be subject to such directions not inconsistent with this plan as the donors of such funds and property may prescribe.
[Ord. 1006, 11/2/1994, § 1]
1. 
Normal Retirement. Each member may retire on or at any time after his normal retirement date. Any member so retiring shall be entitled to receive a monthly pension commencing as of the first day of the month coincident with or next following his date of actual retirement and ending with the payment made as of the first day of the month in which his death occurs. The monthly pension to which such retired member shall be entitled under this plan shall be equal to 1.7% average compensation for each year of service, measured in years and completed months, subject to a maximum of 25 years. Notwithstanding the above, if an employee retires in January of 2010 and is within five years of his normal retirement date, the monthly pension to which such retired member shall be entitled under this plan shall be equal to 1.7% average compensation for each year of service, including all service through his or her normal retirement date, measured in years and completed months, subject to a maximum of 25 years.
[Amended by Ord. 1168, 3/1/2010]
2. 
Postponed Retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any member on postponed retirement shall continue to make contributions required pursuant to § 424, Subsection 1.
3. 
Early Retirement. Each member may retire on or after his early retirement date. The benefit payable at the early retirement date shall be the benefit described in Subsection 1 reduced by 6 2/3% for each year up to five, and 3 1/3% for each year between five and 10, that the early retirement date precedes normal retirement.
[Amended by Ord. 1168, 3/1/2010; by Ord. 1204, 8/6/2014; by Ord. No. 1220, 9/6/2017; and by Ord. No. 1221, 10/4/2017]
A. 
Notwithstanding the above, if an employee retires in January of 2010 and is within five years of his or her normal retirement date, the benefit payable at the early retirement date shall be the benefit described in Subsection 1, unreduced by the number of years that early retirement proceeds normal retirement.
B. 
Notwithstanding the above, if an employee retired in June of 2012 and was within five years of his normal retirement date, the benefit payable at the early retirement date shall be the benefit described in Subsection 1, unreduced by the number of years that early retirement precedes normal retirement.
C. 
Notwithstanding the above, if any employee retires in September 2017, was between four and five years from his or her normal retirement date and has completed 23 or more years of service, the benefit payable at the early retirement date shall be the benefit described in Subsection 1, based on the maximum 25 years of service under the pension formula and reduced for early commencement by the number of years that January 1, 2019, precedes normal retirement.
D. 
Notwithstanding the above, if the Borough's Director of Services retires after age 60 but prior to July 1, 2028 (his normal retirement date), the benefit payable at the early retirement date shall be the benefit described in Subsection 1, unreduced for early commencement.
4. 
Cost-of-Living Increases. Retired members shall be eligible for cost-of-living increases commencing on the initial January 1 from the commencement of his pension and on each January 1 thereafter. As of each January 1, the percentage increase shall be equal to the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) as it applies to Philadelphia consumers; however, not to exceed 3% in any such year; and, provided further, that the overall benefit limit does not exceed 150% of the normal retirement benefits.
[Ord. 1006, 11/2/1994, § 1; as amended by Ord. 1068, 10/3/2001, § 1; by Ord. 1069, 12/5/2001, § 1; and by Ord. 1181, 7/6/2011]
1. 
If a member who is partially or totally vested in his accrued pension or who is eligible for early or normal retirement dies, his spouse shall receive a monthly pension, payable at the member’s earliest retirement date and for the remainder of the spouse’s lifetime, equal to 50% of the pension the member would have received if he had terminated employment on the date of his death, survived until his earliest retirement date, elected the 50% survivor life annuity form of pension and then died. If the deceased member’s spouse is not alive, this death benefit shall be payable, in equal shares, to the member’s dependent children under age 18, if any.
2. 
In lieu of receiving the monthly survivor’s pension, the survivors may elect to receive a refund of the accumulated member’s contributions with interest.
3. 
If a member dies before vesting or retirement eligibility, his designated beneficiary shall receive a refund of the accumulated member’s contributions with interest.
4. 
If a member dies after retirement, any death benefits will be determined by the form of payment of his retirement benefit chosen at retirement.
[Ord. 1006, 11/2/1994, § 1; as amended by Ord. 1009, 4/5/1995, § 1]
1. 
If a member leaves the employ of the Borough or ceases to be a member whether by reason of his transfer, resignation, discharge or death or by reason of retirement other than becoming eligible for benefits pursuant to §§ 425 or 426 of this plan, he shall be entitled to a refund of all contributions made by him and then on deposit in the fund, plus interest thereon, computed at the rate described in § 424, Subsection 1. However, the member may elect to leave his contributions, plus interest, in the fund so as to receive a vested pension benefit to start his normal retirement date if he has at least six years of service. The vesting percentage is determined from the schedule below:
Years of Service
Vesting Percentage
6
60%
7
70%
8
80%
9
90%
10
100%
2. 
The amount of vested pension benefit shall be computed in accordance with § 425 as of the date of termination multiplied by the vesting percentage. No member shall be eligible for vesting without at least six years of service.
[Ord. 1006, 11/2/1994, § 1]
1. 
Refund of member's contributions becoming distributable pursuant to § 427 shall be paid in the form of lump-sum distribution.
2. 
Options on Normal, Early Retirement or Vesting. At the time a member elects to receive a retirement benefit allowance, the benefit is payable throughout the member's life, in which case the benefit is known as a single life annuity. The member may alternatively elect at the time of retirement, or prior to retirement, to receive the following actuarial equivalent value in a lessor allowance:
A. 
Straight Life Annuity. This optional form provides a monthly annuity for the life time of the member. There are no death benefits provided. This form must have spousal consent.
B. 
Life Annuity With Certain Period. This optional form provides a monthly annuity for the lifetime of the member. If his death occurs before the end of a specified certain period of five, 10 or 15 years, the balance of the annuity payments for the certain period will be paid to the beneficiary. The certain period must be named by the member before his retirement date and cannot be changed after such date. The member may change his beneficiary at any time.
C. 
Survivorship Life Annuity. This optional form provides a monthly annuity for the lifetime of the member. Upon his death, a percentage of 50%, 66 2/3% or 100% will continue for the lifetime of his contingent annuitant. The survivorship percentage and contingent annuitant must be named by the member before his retirement date and cannot be changed after such date. If the contingent annuitant dies before the member's retirement date, this optional form is canceled.
3. 
For options in Subsection 2B and C above, the actual amounts shall be determined by use of an actuarial equivalent table with proper interest percentage that is in effect at the time of retirement. Should a member who has elected a single life annuity die before receiving in annuity payments the full amount of the total accumulated member's contribution deductions standing to his credit in the member account on the effective date of retirement, the balance shall be paid to the designated beneficiary.
[Ord. 1006, 11/2/1994, § 1]
1. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 425, 426, 427 and 428 in accordance with the instructions received from the Council; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
2. 
The Borough may employ as actuary, investment advisors, counsel or other professional consultants from time to time in connection with the operation of the fund or of this plan. Such persons or entities shall be compensated by the Borough at such rates may be agreed upon by the Council. Such compensation may be paid from the fund.
3. 
The trustee shall make an annual determination of the fair market value of the fund as of the anniversary date and as of such additional dates as the Council may direct. The fair market value of the fund shall be reported to the actuary who shall calculate the amount to be contributed to the fund by the Borough with respect to each plan year in accordance with the assumptions most recently adopted by the Council for the purpose of such computations; provided, however, that the liability of the Borough to make such contributions is subject to all of the conditions and limitations set forth elsewhere in this plan.
[Ord. 1006, 11/2/1994, § 1]
1. 
The plan shall be administered by the Council and the Borough Manager. The Council shall make and adopt rules and regulations for the efficient administration of the plan.
2. 
The Council shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provisions of the plan, and shall provide all such data, records and documents to the trustee, the actuary and any other professional whose services are employed pursuant to § 429, Subsection 1, of this Part.
3. 
The Council shall construe the plan, shall determine any questions of fact arising under the plan and shall make all decisions required of it under the plan or the trust agreement and its construction thereof, and decisions and actions taken thereon in good faith shall be final and conclusive. It may correct any defect or supply any omission or reconcile any inconsistency in such manner and to such extent as it shall deem expedient to carry the plan into effect, and it shall be the sole judge of such expediency. The Council shall act uniformly with respect to matters coming before it concerning employees in similar circumstances.
4. 
The Council shall serve without bond except as otherwise required by law and without compensation for its services as such.
5. 
The members of Council, and each of them, shall be free of all liability for any act or omission except by willful misconduct or gross negligence, and each of them shall be fully indemnified by the Borough against all judgments not involving findings of their respective personal or collective willful misconduct or gross negligence and against all costs, including counsel fees, incurred in defense of actions brought against them.
6. 
The Council shall make available to members, retired members and terminated members and to their beneficiaries, for examination during business hours, such records as pertain to the person examining.
7. 
To enable the Council to perform its functions, the Borough shall supply full and timely information to it on all matters relating to the pay of all members, their retirement, death, termination of employment and such other pertinent facts as the Council may require; and the Council shall advise the trustee of such of the foregoing facts as may be pertinent to the trustee's administration of the trust and shall give proper instructions to the trustee for the carrying out of the purposes of this plan.
8. 
The Council shall enact such rules and regulations for the conduct of its business and for the administration of the plan as it may consider desirable; provided, the same shall not be in conflict with any of the provisions of the plan. All actions of the Council shall be taken at meetings at which a quorum shall be present.
9. 
The Borough Manager, acting on behalf of the Council, shall have the power to execute all documents necessary to carry out the actions of the Council, and any person, partnership, corporation or government agency shall accept such documents over such signature as if executed by the Council.
10. 
The Council shall have the right to appoint the Borough Manager to administer and perform its responsibilities as it pertains to rules and regulations and disseminating information to members.
[Ord. 1006, 11/2/1994, § 1]
1. 
It is the expectation of the Borough that it will continue this pension plan indefinitely and will from time to time contribute to the fund such amounts as may be needed to provide the benefits set forth in the plan; but continuance of the plan is not assumed as an obligation of the Borough and the right is reserved by the Borough at any time to reduce, suspend or discontinue its contributions hereunder.
2. 
The Borough assumes no obligation or responsibility with respect to the operation of the plan and does not guarantee the payment of the benefits therein provided for members of the plan. The Borough shall have no liability with respect to the administration of the fund held by the trustee, and payments made under the provisions of this part establishing, amending or maintaining the plan shall not be a charge on any other fund in the treasury of the Borough or under its control, save the Nonuniformed Employee's Pension Fund herein provided for.
3. 
Nothing contained in the plan shall be held or construed as a contract or guarantee of employment nor to create any liability upon the Borough to retain any person in its service. The Borough reserves the full right to discontinue the service of any person without any liability except for salary or wages that may be due and unpaid, whenever in its judgment its best interests so require, and such discontinuance shall be without regard to this plan.
[Ord. 1006, 11/2/1994, § 1]
1. 
The Borough may amend, curtail or terminate this plan at any time; provided, however, that no amendment affecting the trustee shall be made without its consent (other than an amendment having the effect of terminating the plan); nor shall any amendment be made which will, in any manner, divert any part of the fund to any purpose other than the exclusive benefit of members of their, beneficiaries (except upon termination such diversion may be made after all of the fixed and contingent liabilities to members and their beneficiaries have been met); nor shall any amendment be made at any time which will, in any manner, divest any benefit then vested in a member.
2. 
In the event of termination of this plan, the trustee, upon written instructions from Council, shall allocate the assets then remaining in the fund, to the extent that such assets are sufficient, to members and retired members in the following order of precedence:
A. 
To members and retired members in an amount equal to their respective contributions with interest, reduced in the case of retired members by any prior distributions made to them.
B. 
To provide benefits due members in the proportion that the pension earned by each member bears to the total pensions earned for all such members.
C. 
The remaining assets, if any, to each of the remaining members in the proportion that his pension credits earned to the date of termination bears to the total pension credits so earned for all such remaining members.
3. 
After allocation of the fund, the Council shall determine whether to operate the fund as the source of whatever payments the money so allocated will provide.
[Ord. 1006, 11/2/1994, § 1]
1. 
No benefit under this plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance, nor to seizure, attachment or other legal process for the debts of any member or member's beneficiary. This provision shall not apply to a "qualified domestic relations order" defined in IRS Code Section 414(p), and those other domestic relations orders permitted to be so treated by the Council under the provisions of the Retirement Equity Act of 1984.
2. 
Any person dealing with the trustee may rely upon a copy of this plan and any amendments thereto certified to be a true and correct copy by the trustee.
3. 
Anything heretofore contained in this plan to the contrary notwithstanding, it is the intention of the Borough that any action herein provided to be taken by the trustee shall be taken only in accordance with written instructions of the Council given in such detail as to preclude the exercise by the trustee of discretion in the performance thereof.
4. 
In no circumstance, whether upon amendment or termination of this plan or otherwise, shall any part of the fund be used or diverted to any purpose other than the exclusive benefit of members or their beneficiaries until all of the actuarial obligations to such member or member's beneficiaries have been met.
5. 
If the Council deems any person incapable of receiving benefits to which he is entitled by reason of minority, illness, infirmity or other incapacity, it may direct the trustee to make payment directly for the benefit of such person, or to any person selected by the Council to disburse it, whose receipt shall be a complete acquittance thereof. Such payment shall, to the extent therefor, discharge any liability of the Borough, the trustee and the fund.
6. 
Should any provision of this plan be determined to be void by any court, the plan will continue to operate and, to the extent necessary, will be deemed not to include the provision deemed void.
7. 
Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.
8. 
This plan shall be construed and applied under the laws of the Commonwealth of Pennsylvania where not in conflict with federal laws which shall prevail.
9. 
All ordinances or resolutions or portions thereof inconsistent herewith are hereby repealed.