[HISTORY: Adopted by the Borough Council of the Borough of
Walnutport as indicated in article histories. Amendments noted where
applicable.]
[Adopted 12-3-1990 by Ord. No. 90-12 (Ch. 1, Part 7C, of
the 1983 Code of Ordinances)]
This plan shall be entitled the "Defined Contribution Retirement
Plan for the Secretary/Treasurer."
The effective date of this plan is April 1, 1991. The anniversary
date is the last day of a plan year.
As used in this article, the following terms shall have the
meanings indicated:
All base pay, overtime pay, night duty extra pay, vacation
pay and bonuses.
An employee hired as a permanent employee who regularly works
35 or more hours per week.
The period of 12 consecutive months which ends on each anniversary
date.
The first day of the month immediately following the month
in which the participant attains the normal retirement age or the
early retirement age.
Each full year employed by the employer from the date of
hire to the retirement date, termination date, date of death or disability.
A year of service is one in which the employee works 1,000 or more
hours during a plan year.
Each permanent full-time employee who attained age 20 and has
one year of service and is not over age 64 may participate in the
plan.
A.
A monthly retirement benefit shall be payable to each eligible participant
commencing on the retirement date or the early retirement date. The
retirement benefit shall be payable over the lifetime of the retiree
and shall be an amount which is determined actuarially based on the
amount of the participants account, the age and sex of the participant
on the retirement date and the type of annuity selected.
B.
The normal retirement annuity is a "life only" annuity providing
monthly benefits from the retirement date until the payment of the
benefit due just prior to the retiree's death. Other annuity
options which are actuarially equivalent, may be selected by the retiree
such as life income with a ten- or twenty-year period certain, life
income with a cash refund or a joint life and survivor option with
joint payees being the retiree and the retiree's spouse or another
payee designated by the retiree approved by the employer, plan administrator
or pension committee.
An eligible participant may retire after attaining the age of
62 with 10 or more years of credited service. An eligible participant
who is age 65 or older may retire after five or more years of credited
service.
An eligible employee may retire at any age after 25 years of
credited service.
An eligible participant who has not attained the normal or early
retirement age but who terminates employment, will have a vested right
to a percentage of that participant's allocated account(s) according
to completed years of service based on the following schedule:
|
Years of Service
|
Account Value Employer Contributions
|
Account Value Employee Contributions
|
|---|---|---|
|
1
|
0%
|
100%
|
|
2
|
0%
|
100%
|
|
3
|
20%
|
100%
|
|
4
|
40%
|
100%
|
|
5
|
60%
|
100%
|
|
6
|
80%
|
100%
|
|
7
|
100%
|
100%
|
|
Over 7
|
100%
|
100%
|
A.
An eligible participant who dies or becomes disabled prior to a retirement
date will receive a benefit equal to all contributions made to that
employee's account from whatever source, with earnings compounded
at 5% per annum.
B.
Disability is defined as a total disability which prevents the participant
from working in a gainful occupation resulting from a sickness or
accident that occurred while a participant was a full-time employee
and would cause the participant to be eligible for social security
disability benefits.
A.
The plan will be funded by annual contributions from the employer
of up to 6% of eligible participant's compensation.
B.
Any payments received by the employer from the State Treasurer from
monies received from taxes paid upon premiums of foreign casualty
insurance companies shall be applied to the plan and can be used to
satisfy some or all of the employer's obligation under this article
or may be deposited to the plan in addition to the employer's
contribution, as determined solely by the employer.
Eligible participants may voluntarily contribute up to 10% of
compensation per annum.
Pension funds must be deposited with a depository or an institution
empowered to conduct its business in the Commonwealth of Pennsylvania
including banks, life insurance companies and investment companies
but investments are restricted to bank accounts, certificates of deposit,
annuities, life insurance policies, group deferred annuity policies,
mutual funds and stocks and bond of investment grades which would
be selected by a prudent investor.
The Plan Administrator may incur necessary lawful expenses to
administrate the plan, including, but not limited to, actuarial fees
necessary to determine the adequacy of the plan, administrative, filing,
legal, consulting, accounting, insurance, investment and other fees
and expenses necessary for the proper administration of the plan.
The employer may appoint a Plan Administrator or pension committee
to oversee the operation of the plan.
The pension payments provided by this plan shall not be subject
to attachment, execution, levy, garnishment or other legal process
and shall be payable only to the participant, retiree or designated
beneficiary, or the estate of a lawful payee and shall not be subject
to assignment or transfer.
The employer shall have the right to amend this plan.
[Adopted 6-14-2007 by Ord. No. 2007-02]
[Amended 9-8-2011 by Ord. No. 2011-07]
A.
The Borough of Walnutport (the "employer"), on July 25, 1979, established
a retirement plan for certain of its employees known as the "Borough
of Walnutport Police Pension Plan" (the "prior plan");
B.
The employer now desires to adopt the restated master plan and trust
currently administered by the Pennsylvania State Association of Boroughs
Master Retirement Trust (the "PSAB Master Retirement Trust"), effective
as of January 1, 2011;
C.
In accordance with such purpose, the employer hereby adopts the PSAB
Master Retirement Trust and the accompanying joinder agreement, which
documents together shall constitute the retirement plan known as the
Borough of Walnutport Police Pension Plan (the "plan");
D.
Said plan shall be deemed to be a continuation of and a successor
to the prior plan; and
E.
Revisions have been made to the current joinder agreement to eliminate
the killed-in-service survivor benefit in compliance with Act 51,
which eliminated this benefit from the plan.
[Added 9-8-2011 by Ord. No. 2011-07; amended 3-9-2017 by Ord. No. 2017-02]
A.
Effective
as of January 1, 2017, the accompanying joinder agreement and the
terms of the Pennsylvania State Association of Boroughs Municipal
Retirement Trust are hereby adopted by the employer, to be known as
the "Borough of Walnutport Police Pension Plan"; and
B.
Said plan
shall be deemed to be a successor to and a continuation of the prior
plan.
The Borough of Walnutport Police Pension Plan is hereby amended
by adding the following:
A.
BENEFICIARY
BOROUGH
DROP
DROP ACCOUNT
FUND or PLAN
POLICE OFFICER
Definitions. As used in this article, the following terms shall have
the meanings indicated:
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 the period in which the officer is participating
in the DROP, but before the officer separates from employment.
The Borough of Walnutport, Northampton County, Pennsylvania.
Deferred Retirement Option Plan.
Separate account created to accept DROP participants'
monthly pension check while a DROP participant.
The Police Pension Plan for the Borough of Walnutport.
A duly appointed police officer serving as a member of the
Walnutport Borough Police Department.
B.
Eligibility. As of the effective date of this article, members of
the Walnutport Borough Police Department 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.
C.
Written election.
(1)
A member of the Police Department electing to participate in the
DROP must complete and execute a "DROP option form" prepared by the
Borough of Walnutport, 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 of Walnutport 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 Walnutport
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 48 months from the execution of the DROP option
form. An officer shall cease to work as a Borough police officer on
the officer's resignation date, unless the Borough terminates
or honorably discharges the officer prior to the resignation date.
The DROP option notice shall also provide that, as a condition of
participation in the DROP program, a participating officer holds the
Borough harmless with respect to any tax consequences or investment
performance related to a participant's DROP account or participation
in the DROP program.
(2)
In addition, all retirement documents required by the Police Pension
Board Administrator must be filed and presented to the Pension Board
for approval of retirement and payment of pension. Once a retirement
application has been approved by the Police Pension Board, it is irrevocable.
D.
Pension contributions. A police officer shall not be required to
make any contributions to the fund during his/her DROP period.
E.
Limitation on pension accrual. After the effective date of the DROP
option, the member shall no longer earn or accrue additional years
of continuous service for pension purposes.
F.
Benefit calculation. For all retirement fund purposes, continuous
service of a member 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 Walnutport Borough
Police Pension Fund. The average applicable compensation of the member
for pension calculation purposes shall remain as it existed on the
effective date of commencement of participation in the DROP in accordance
with Part I-5 of the Pension Joinder Agreement. Earnings or increases
in earnings thereafter shall not be recognized or used for the calculation
or determination of any benefits payable by the pension fund. 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 DROP or by applicable cost of living
adjustments granted thereafter.
G.
Payments to the DROP account. The monthly retirement benefits that
would have been payable had the member elected to cease employment
and receive a normal retirement benefit, shall, upon the member 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.
H.
Accrual of nonpension benefits. After an officer elects to participate
in the DROP program, all other contractual benefits shall continue
to accrue. All buyback of accrued, but unused, sick or vacation time
shall be paid at the time the officer ceases employment with the Borough.
An officer may utilize leave time during the DROP period, but the
Borough shall not be required to buy back any such unused leave time
at the end of the DROP period.
I.
Payout. Upon the termination date set forth in the member's
DROP option notice or such date as the Borough separates the member
from employment, the retirement benefits payable to the member or
member's beneficiary, if applicable, shall be paid to the member
or beneficiary and shall no longer be paid to the member's deferred
retirement option account. Within 30 days following termination of
a member's employment pursuant to their participating in the
DROP program, the balance in the members' DROP account shall
be paid to the member in a single lump sum payment or at the member's
option, in any fashion permitted by law. By participation 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.
J.
Disability during DROP. If a bargaining unit member becomes temporarily
incapacitated during his participation in DROP, that member shall
continue to participate in the DROP program as if fully employed.
The member shall receive disability pay in the same amount as disabled
Police Officers that are not participating in DROP. In no event shall
a member on temporary disability have the ability to draw from his
DROP account. However, notwithstanding any other provision in this
subsection, if an 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 employee
or other person to a continuation of employment nor shall participation
in the DROP Program supersede or limit in any way the right of the
Borough to honorably discharge a police employee based upon an inability
to perform his or her full duties as a police officer. 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.
K.
Death during DROP period. 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, but the Act 600 pension
shall be payable. 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.
L.
Forfeiture of benefits. Notwithstanding an officer's participation
in the DROP Plan, an 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,
shall forfeit his right to receive a pension, including any amounts
currently deposited in the DROP account. In such a case, the member
shall only be entitled to receive the contributions, if any, made
by the member to the fund, without interest.
M.
Account manager. The Borough and the police officers will mutually
agree upon an investment manager to administer the DROP accounts.
The Borough and the police officers further agree that the Borough
shall not be responsible for any investment loss incurred in the plan
or for the failure of an investment to earn a specific or expected
return or to earn as much as any other opportunity, whether or not
such other investment opportunity was offered or available to participants
in the plan.
N.
Cost of management for DROP program. The police officers and the
Borough agree that any costs or fees associated with the management
of the DROP accounts shall be paid directly from the Police Pension
Fund and not by the Borough.
O.
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.
P.
Construal of provisions. An 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 terminate an officer for just
cause or to grant the officer an honorable discharge based upon a
physical or mental inability to perform his or her duties.
