[HISTORY: Adopted by the Borough Council of the Borough of
New Britain as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Officers and employees — See Ch. 40.
[Adopted 12-8-1992 by Ord. No. 256]
A pension plan is hereby established for the full-time police
employees pursuant to and in compliance with the Act of May 29, 1956,
P.L. 1804, as amended.[1] Such plan shall be under the direction of the Borough
Council and shall be applied under such regulations as Council may
prescribe. The effective date of this plan shall be January 1, 1993.
[1]
Editor's Note: See 53 P.S. § 767 et seq.
As used in this article, the following terms shall have the
meanings indicated:
The governing body of the Borough of New Britain acting in
the capacity of administrator of the Police Employees Pension Plan
established pursuant to this article.
The persons which may be appointed to serve in an advisory
capacity to the Council in the administration of the plan.
The monies received by a participant in each and every month,
including base pay, longevity pay, night differential, overtime, and
any other such increments. Payments made for unused vacation time
will be included for computation of retirement benefits. Payments
made for unused "sick time" will not be included for computation of
retirement benefits.
The monies paid by the employer to the plan and/or the payroll deductions made monthly from the compensation of the participants and paid to the plan, except that "contributions" in § 46-5B shall mean the participant's total contributions accumulated during the period of employment and participation in this plan.
The Borough of New Britain.
The value of any participant's benefits which shall
accrue by virtue of that participant's service rendered subsequent
to the enactment of this article.
Every person duly appointed from time to time by the employer
as a full-time police employee working not less than 40 hours per
week with a definite compensation subject to reasonable vacation and
sick leave, to be included in the plan upon date of hire.
The Police Employees Pension Plan established pursuant to
this article.
Total aggregate service with the employer, not necessarily
continuous, beginning upon date of hire.
The cessation of service by the participant for any reason
including disability, resignation, and employer termination. Death
shall not be considered a termination within the meaning of this article.
Voluntary leaves of absence without pay shall not be considered a
termination for purposes of this article; but no period of such leave
shall be computed in the total service for pension benefit purposes.
The present value of any participant's benefits accrued
prior to the enactment of this article by virtue of that participant's
prior service.
A.
The Council shall administer the plan by such regulations as shall
from time to time be necessary for the effective maintenance of the
plan; provided that no regulation shall be contrary to the statutes
of the Commonwealth of Pennsylvania and/or applicable federal regulations.
B.
The Council may appoint a Committee which shall act as an advisory
body to the Council in the administration of the Plan according to
the regulations established pursuant to this article.
C.
Membership; meetings.
(1)
The Committee shall consist of three members, which number shall
include the Borough Manager, the Chairman of the Police Committee,
and the third shall be chosen by a majority of the participants in
the plan.
(2)
All persons so designated shall serve at the pleasure of the Council.
Any member may resign upon written notice to the Council and the Committee.
Any vacancies in the Committee arising from resignation, death, or
removal shall be filled by the Council by the procedure set out herein
for the member of the Committee whose resignation, death, or removal
has created the vacancy.
(3)
The Committee shall meet no less than annually, and shall serve without
compensation for their services.
D.
Procedures; records.
(1)
The Committee shall act by such procedure as the Committee shall
establish; provided that all decisions shall be by majority vote.
The Committee may authorize one of its members to execute any document
or documents on behalf of the Committee, may adopt by-laws and regulations
as it deems necessary for the conduct of its affairs, and may appoint
such accountants, counsel, specialists or such other personnel as
it may deem desirable for the proper administration of the plan; provided
that all such executions of documents, adoptions of by-laws and regulations,
and appointments shall be submitted to the Council for approval.
(2)
The Committee shall keep a record of all its proceedings and acts
which shall relate to the plan, and shall keep all such books of accounts,
records and other data as shall be necessary for the proper administration
of the plan. All actions of the Committee shall be communicated to
the Council in a timely fashion.
E.
All such reasonable expenses incurred in the administration of the
plan, including but not limited to fees for the services of specialists
including actuaries, accountants, consultants, and legal counsel shall
be approved by the Council and all may be paid from the plan; provided
that no such payment shall be contrary to the statutes of the Commonwealth
of Pennsylvania.
F.
No member of the Council or the Committee established pursuant to
this article shall incur any liability for any action or failure to
act, excepting only liability for its own gross negligence or willful
misconduct. The employer shall indemnify each member of the Council
and the Committee against any and all claims, loss, damages, expense,
and liability arising from any action or failure to act, except for
such that is the result of gross negligence or willful misconduct
of such member.
A.
Eligibility for normal retirement.
(1)
A participant in the plan may retire from active employment on the
first day of the month following the attainment of age 50; provided
that the participant has completed 25 or more years of service with
the employer.
[Amended 12-10-2013 by Ord. No. 356]
(2)
If there is any participant in the plan who was a member of the police
force of the employer prior to December 21, 1965, that participant
may retire following the attainment of age 60, provided that the participant
has completed 20 or more years of service with the employer.
(3)
A participant shall retire on the first day of the month following
the attainment of age 70.
(4)
In order to become entitled to benefits, a member shall have a maximum
period of total police service not less than an aggregate of 25 years
part-time and full-time service in New Britain Borough and shall have
attained the age of 50 years, after which he may retire from active
duty, except that any full-time officer employed by New Britain Borough
on the date this article becomes effective has an aggregate of 18
years service in New Britain Borough shall be entitled to benefits.
[Added 6-13-1995 by Ord. No. 264; amended 4-14-2015 by Ord. No. 361]
B.
Normal retirement benefit.
(1)
A participant who shall complete the age and service requirements
as set forth in this article shall receive a pension for life in an
amount equal to 1/2 of the participant's average monthly compensation,
based on the participant's last 36 months of compensation, or
that percentage and based on that number of months as shall be prescribed
by statute of the Commonwealth of Pennsylvania subsequent to the adoption
of this article.
(2)
Such pension shall be payable from the assets of the plan without
reduction for the amount of any social security benefits to which
the participant may be or become entitled.
[Amended 10-12-2004 by Ord. No. 296]
C.
Designation of beneficiaries.
(1)
Each participant shall have the right to name the beneficiary or
beneficiaries for pre-retirement death benefits incidental to policies
of insurance purchased primarily to fund the participant's pension,
provided that the ownership of such policies shall remain in the plan
and shall be endorsed to prevent the assignment of ownership to the
insured.
(2)
If the participant shall fail to name a beneficiary or beneficiaries,
such benefits as would have accrued to the participant's beneficiary
or beneficiaries shall be paid to the participant's estate.
(3)
Each participant may, from time to time, change the beneficiary or
beneficiaries in such form and in such manner as shall be prescribed
by the Council, and following such procedure as may be required by
the insurance company.
D.
Widows'/widowers' and children's benefit.
(1)
In the event of the death of a participant who was receiving a retirement
pension, a disability pension, or who had qualified for a retirement
pension but had not retired, that participant's widow may be
entitled during her lifetime, or so long as she does not remarry,
to receive a pension equal to 50% of the "Straight Life Annuity" pension
the participant was receiving or would have been receiving had the
participant been retired at the time of his death.
(2)
If no widow/widower survives, or if she/he survives and subsequently
dies or remarries, then the child or children under the age of 18
years of the deceased eligible participant shall be entitled to receive
a pension calculated at 50% of the pension to which the participant
was entitled.
E.
Termination.
(1)
If for any reason a participant shall terminate service with the
employer prior to becoming vested, that participant shall be entitled
to a refund of that participant's contributions, plus interest
at a rate of 6% per annum. Such interest shall be uniform for all
participants.
(2)
If a participant shall subsequently return to service and return
to the plan the contributions plus interest which were refunded to
that participant upon termination, the participant shall be entitled
to credit for the prior years of service to the extent of the return
of contributions.
F.
Deferred
Retirement Option Program (DROP).
[Added 12-10-2013 by Ord. No. 356]
(1)
DROP
DROP PARTICIPANT ACCOUNT
MEMBER
PARTICIPANT
PLAN
Definitions. As used in this subsection, the following terms shall
have the meanings indicated:
The Deferred Retirement Option Plan created as an optional
form of benefit under the existing New Britain Borough Police Pension
Plan.
A separate ledger account created to accumulate the DROP
pension benefit for a DROP participant.
A full-time New Britain Borough police officer covered by
the plan.
A member who is eligible for normal retirement and who has
elected to participate in the DROP program.
The New Britain Borough Police Pension Plan adopted pursuant
to Act 600.[1]
[1]
Editor's Note: See 53 P.S. § 767 et seq.
(2)
Eligibility. Effective January 1, 2013, full-time police employees
of the New Britain Borough Police Department who have not retired
prior to the implementation of the DROP, 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, for a maximum period of 60 months.
(3)
Written election. A police employee of the New Britain Borough Police
Department electing to participate in DROP must complete and execute
a "DROP option form" prepared by New Britain Borough, which shall
evidence the police employee's participation in DROP. The form
must be signed by the police employee and notarized and submitted
to New Britain Borough within 60 days prior to the date on which the
police employee wishes DROP to be effective. The DROP option notice
shall include an irrevocable notice to the Borough, by the police
employee, that the police employee shall resign from employment with
the New Britain Borough Police Department effective on a specific
date (the "resignation date"). In no event shall the resignation date
be shorter than 12 months nor longer than 60 months from the execution
of the DROP option form. An officer shall cease to work as a New Britain
Borough police officer on the officer's resignation date, unless
the Borough terminates or honorably discharges the officer prior to
the resignation date. In addition, all retirement documents required
by the Police Pension Board Administration must be filed and presented
to the New Britain Borough Council for acceptance and approval of
retirement and payment of pension. Once a retirement application has
been approved by the New Britain Borough Council, it is irrevocable.
(4)
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.
(5)
Benefit calculation. For all police pension plan 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 New Britain Borough
Police Pension Plan. 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. Earnings
and 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 DROP or by applicable
cost of living adjustments granted thereafter.
(6)
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. The account
shall be designated as the DROP account. Interest shall be compounded
and credited monthly at an annual rate of two percent or at a rate
earned by the plan as a whole. All interest credited to the DROP participant
account shall be included in the final cash settlement.
(7)
Early termination. A participant may withdraw from the DROP program
at any time and no penalty shall be imposed for early termination
of DROP participation. However, the participant shall not be permitted
to make any withdrawals from the DROP participant account until DROP
participation has ended.
(8)
Accrual of nonpension benefits. After an 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. Prior to participating in the DROP, an officer may request payment
for any accrued but unused sick or vacation time which the Borough
would, by contract if that is the case, be obligated to buy back from
the officer upon retirement. An officer may utilize leave time during
DROP period, but the Borough shall not be required to buy back any
such unused leave time at the end of the DROP period.
(9)
Payout. Upon the termination date set forth in the member's
DROP option notice or such date as New Britain Borough separates the
member from employment, the retirement benefits payable to the member
or the member's beneficiary, if applicable, shall be paid to
the member or beneficiary and shall no longer be paid to the member's
DROP account. Within 30 days following termination of a member's
employment pursuant to their participating in the DROP, the balance
in the member's 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. Such payment shall be made subject to any federal
withholding as may be required, or as a direct rollover to an Individual
Retirement Account (IRA). If the participant or beneficiary fails
to elect a method of payment within 60 days after the participant's
termination date, the retirement system shall pay the balance as a
lump sum. As a condition of participation in DROP, the officer acknowledges
that New Britain Borough plays no role nor has any responsibility
in advising the officer regarding the appropriate payout vehicle.
Accordingly, any officer participating in DROP assumes all financial
consequences for his/her participation in DROP, including, but not
limited to, the manner in which a permitted payout from the DROP account
is made. The participating officers agree to hold New Britain Borough
harmless for any tax consequences which flow directly or indirectly
from the officer's participation in DROP.
(10)
Disability during DROP. If a member becomes temporarily disabled
during his participation in DROP, any such time lost due to disability
shall be counted towards the member's resignation date. Upon
return to duty, membership in DROP shall continue with the remaining
time left prior to the member's resignation date. If eligible,
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 the continuation of employment nor shall participation
in the DROP program supersede or limit in any way the right of New
Britain Borough to honorably discharge a police employee based upon
an inability to perform his or her full duties as a police officer.
If a DROP participant becomes eligible for a disability pension benefit
due to a permanent disability under Act 600 and terminates employment
for any reason, the monthly normal retirement benefit shall cease.
(11)
Death. If a DROP member dies before the DROP account balances are
paid, the participant's beneficiary under Act 600 shall have
the same rights as the member to withdraw the account balance. The
monthly benefit credited to the participant's DROP participant
account during the month of the participant's death shall be
the final monthly benefit for DROP participation. If the death of
a DROP member is in the performance of duties so as to trigger the
killed-in-service benefit afforded under Act 51, the killed-in-service
benefit shall be paid as set forth in Act 51.
(12)
Forfeiture of benefits. Notwithstanding an officer's participation
in the DROP, 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 plan, without interest.
(13)
Account manager. The Borough and the Association will mutually agree
upon an investment manager to administer the DROP accounts. The Borough
and the Association further agree that the Borough shall not be responsible
for any investment loss incurred in the plan or any/all DROP accounts
or for the failure of an investment or investments 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. As a condition of participation in the
DROP, participating officers agree to hold the Borough harmless for
any financial loss incurred as the result of any aspect of DROP participation,
including the initial decision to enter DROP.
(14)
Cost of management for DROP. The Association 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 Plan and not
by the Borough.
(15)
Amendment. Any amendments to this DROP plan shall be consistent with
the provisions covering deferred retirement option plan 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
may only be amended by a written instrument, not by any oral agreement
or past practice.
G.
Nonalienation of benefits and vesting.
(1)
No benefit under the plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, or charge.
Nor shall any such benefits be in any manner liable for or subject
to garnishment, attachment, execution, levy, or other legal process.
(2)
In the event that any participant should cease to be employed, for
any reason, as a full-time police officer of the Borough of New Britain
before completing superannuation retirement age and service requirements
hereunder, but after having completed 12 years of total service, such
participant shall be entitled to vest his or her retirement benefits
by filing with Borough Council, within 90 days of the date he or she
ceases to be a full-time police officer, a written notice of his or
her intention to vest. Upon reaching the date which would have been
his or her superannuation retirement date if he or she had continued
to be employed as a full-time police officer, he or she shall be paid
a partial superannuation retirement allowance determined by applying
the percentage his or her years of service bears to the years of service
which he or she would have rendered had he or she continued to work
until his or her superannuation retirement date to the gross pension,
using however, the monthly average salary during the thirty-six-month
period immediately prior to his or her termination of employment.
[Amended 10-12-2004 by Ord. No. 296]
H.
Disability benefit. A participant who becomes totally and permanently
disabled so that he cannot perform his normal duties as a police officer
as a result of a service connected accident or occurrence, shall be
entitled to receive the normal retirement benefit for life, or for
so long as the disability remains both total and permanent.
[Added 2-11-1997 by Ord. No. 272]
I.
Surviving spouses; retirement in consequence of permanent injury.
[Added 9-9-2002 by Ord. No. 291]
(1)
The surviving spouse of a member of the police force or a member
who retires on pension who dies, or if no spouse survives, or if he
or she survives and subsequently dies, then the child or children
under the age of 18 years, or if attending college, under or attaining
the age of 23 years, of a member of the police force or a member who
retires on pension who dies, shall, during his or her lifetime, in
the case of a surviving spouse, or until reaching the age of 18 years,
or if attending college, under or attaining the age of 23 years, in
the case of a child or children, be entitled to receive a pension
calculated at no less than 50 per centum of the pension the member
was receiving or would have been receiving had he or she been retired
at the time of death.
(2)
The surviving spouse of a member of the police force who dies before
his or her pension has vested, 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 repayment of all money which the member invested in the
pension fund plus interest or other increases in value of the member's
investment in the pension fund, unless the member has designated another
beneficiary for this purpose.
(3)
Any member of the police force who retires in consequence of a permanent
injury incurred in service shall receive a pension calculated at a
rate of no less than 50 per centum of the member's salary at
the time the disability was incurred, provided that any member who
receives benefits for the same injuries under the Social Security
Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall have his
or her disability benefit offset or reduced by the amount of such
benefit.
(4)
The surviving spouse of a member of the police force who is killed
in service, or if no spouse survives, or if he or she survives and
subsequently dies, the child or children under the age of 18, or if
attending college, under or attaining the age of 23 years, of the
member of the police force shall be entitled to receive a pension
calculated at 100 per centum of the member's salary at the time
of death.
(5)
The governing body of the Borough of New Britain may, on an annual
basis, by ordinance or resolution, reduce or eliminate payments into
the fund by members without the necessity of conducting an actuarial
study.
(6)
For purposes of this article, 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.
(7)
Insofar as these amendments affect the benefits available to surviving
spouses, the amendments shall apply to surviving spouses whose spouse
died on or before April 17, 2002, and who were not remarried as of
that date.
A.
Contributions of the employer.
(1)
It shall be the liability of the employer to fund the past service
liability as determined by the actuary, provided that such liability
may be funded over a period not to exceed 30 years, such period commencing
with the passage of this article.
(2)
It shall be the liability of the employer to fund for the future
service cost of the plan.
(3)
It shall be the responsibility of the employer to maintain the actuarial
soundness of the plan.
(4)
Contributions to the plan paid by the employer shall be at an amount
determined by an annual actuarial study, which study shall be completed
on a calendar-year basis.
B.
Contributions of the participants.
(1)
Where positions covered by the plan are included in an agreement under the Federal Social Security Act, monthly contributions paid to the plan by the participants shall be at a rate calculated by multiplying the social security offset percentage listed in § 46-4B(2) by 3% and then subtracting the resultant percentage from 5%. Such contributions shall be on that portion of monthly compensation for which social security taxes are payable. Contributions to the plan paid by the participants on that portion of monthly compensation that exceeds the amount for which social security taxes are paid shall be at the rate of 5%.
(2)
Contributions to the plan paid by the participants may be reduced
or eliminated if a current actuarial study indicates that such reduction
or elimination for that year will not adversely affect the actuarial
soundness of the plan. Should the current actuarial study so indicate,
the reduction or elimination of contributions by the participants
shall be effected by resolution, and shall be effective for one calendar
year only.
C.
Allocation of commonwealth funds. The payments made by the State
Treasurer to the employer from the monies received from the taxes
paid on the premiums of foreign casualty insurance companies for purposes
of retirement or disability benefit pensions for municipal employees
shall be used as follows:
D.
Allocation of assets of existing pension plans. Any assets of any
existing pension plans for the police employees of the Borough are
hereby transferred to the plan established pursuant to this article,
and shall be applied against the unfunded liability.
E.
Gifts, bequests, and grants. All other monies and property received
by the plan, including gifts, bequests, devises, and grants shall
be applied against the employer portion of the future service cost
unless otherwise specifically provided.
Any participant in the plan with at least six months of service
with the employer who thereafter shall enter the military service
of the United States of America shall have credited to that participant's
service record for pension benefit purposes only the initial term
of military service of the participant, provided that the participant
returns to service with the employer within six months after said
participant's separation from such military service.
Upon termination of the plan, the assets shall be distributed
as follows.
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 46-4 for all participants who have retired prior to the termination of the plan, or who are eligible to retire at the time of the termination of the plan.
B.
Sufficient funds shall be maintained to provide the vested pension
benefits, if included in this article, for all participants who are
eligible for such benefits.
C.
Of the remaining funds, those which can be identified as contributions
of the employer, or contributions other than from participants or
from the commonwealth allocations, shall be distributed as the Council
sees fit, provided that such distribution is made on a uniform basis.
A.
Neither the establishment of the plan hereby created, nor any modification
thereof, nor the creation of any fund or account, nor the payment
of any benefits, shall be construed as giving to any participant or
other person any legal or equitable right against the employer, or
any officer or employee thereof, or the Council except as herein provided.
B.
Under no circumstances shall the plan hereby created constitute a
contract for continuing employment for any participant or in any manner
obligate the employer to continue or to discontinue the services of
an employee.
C.
This plan has been established and shall be maintained by the employer
in accordance with the laws of the Commonwealth of Pennsylvania. The
plan shall continue for such period as may be required by such laws;
provided that the employer may, by its own action, discontinue this
plan should such laws provide, and the employer reserves the right
to take such action in its sole and absolute discretion. Upon termination,
the employer shall have no liability hereunder other than that imposed
by law.
A.
All investments by the Council of the assets of this plan shall comply
with such regulations as the state and the Council shall establish
for the purpose of investing such funds.
B.
The Council may also purchase retirement annuities, or retirement
income endowment policies, or a combination of both, which provide
a cash value with which to fund pensions; provided that the Council
shall determine the value of any policies purchased, the company with
which the contracts shall be made, and the time to purchase such policies.
The Council shall also have the obligation to insure that the policies
purchased provide benefits on a uniform scale, and that such policies
are endorsed to the ownership of the plan.
The Council reserves the right to amend at any time in whole
or in part, any or all of the provisions of the plan; provided that
no such amendment shall authorize or permit any part of the plan to
be used or diverted to purposes other than for the exclusive benefit
of the participants, their beneficiaries, or their estates. Nor shall
any amendment divest a participant of benefits vested if included
in this article. All such amendments shall comply with the applicable
statutes of the Commonwealth of Pennsylvania.
A.
This plan shall be constructed according to the laws of the Commonwealth
of Pennsylvania, and all provisions hereof shall be administered according
to the laws of such commonwealth.
B.
Wherever any words are used herein in the masculine gender, they
shall be construed as though they were also used in the feminine gender
in all cases where they would so apply; and wherever any words are
used herein in the singular form, they shall be construed as though
they were also used in the plural form in all cases where they would
so apply.
C.
Headings of articles and paragraphs of this instrument are inserted
for convenience of reference. They constitute no part of this plan,
and are not to be considered in the construction thereof.
[1]
Editor’s Note: This ordinance provided that it would
be effective retroactive to 1-1-2008.
A pension plan is hereby established for the Borough's
full-time, nonuniformed employees pursuant to and in compliance with
the Borough Code, as amended. Such plan shall be under the direction
of Borough Council of the Borough of New Britain and shall be applied
under such regulations as Borough Council may prescribe. The effective
date of this article generally shall be January 1, 2008. However,
this article, except as it revises the existing nonuniformed employees
pension plan, is intended as a continuation of that plan for state
aid purposes. In addition, revisions made subsequent to such effective
date are separately identified.
As used in this article, the following terms shall have the
meanings indicated:
The governing body of the Borough of New Britain acting in
the capacity of administrator of the nonuniformed pension plan established
pursuant to this article.
The persons who may be appointed to serve in an advisory
capacity to the Borough Council in the administration of the plan.
The monies paid by the employer to the plan and/ or the payroll deductions made monthly from the salaries of the participants and paid to the plan; except that "contributions" in § 46-15D shall mean total contributions paid by the participant and accumulated during the period of employment and participation in this plan.
The Borough of New Britain.
The value of any participant's benefits which shall
accrue by virtue of that participant's service rendered subsequent
to the enactment of this article.
Every person duly appointed from time to time by the employer
as a full-time nonuniformed employee working not less than 35 hours
per week at a definite salary, subject to reasonable vacation and
sick leave, to be included in the plan upon date of hire.
The nonuniformed pension plan established pursuant to this
article.
The amount of compensation received by a participant in each
and every month, including base pay, overtime pay, longevity pay,
shift differential, and any other such increments. The term "salary"
shall include regular payments made for vacation time, sick time,
compensation time, personal days and bereavement leave but shall not
include lump sum payments for any unused days for any of the foregoing
listed benefits.
Total aggregate service, not necessarily continuous, with
the employer.
The cessation of service by the participant for any reason
including disability, resignation and employee termination. Death
shall not be considered a termination within the meaning of this article.
Voluntary leaves of absence without pay shall not be considered a
termination for the purposes of this article; but no period of such
leave shall be computed in the total service for pension benefit purposes.
Leaves of absence with pay shall not be considered a termination within
the meaning of this article (provided that the municipality is able
to certify to the Department of the Auditor General that such participant
on a leave of absence with pay is within the definition of a participant
as set forth herein); but such leaves may be computed in the total
service for pension benefit purposes.
The present value of any participant's benefits accrued
prior to the enactment of this article by virtue of that participant's
prior service.
A.
The Borough Council shall administer the plan by such regulations
as shall from time to time be necessary for the effective maintenance
of the plan, provided that no regulation shall be contrary to the
statutes of the Commonwealth of Pennsylvania and/or applicable federal
regulations. Borough Council may appoint such accountants, counsel,
specialists or such other personnel as it deems desirable for the
proper administration of the plan.
B.
The Borough Council may, in its discretion, appoint a Committee to
act as an advisory body to the Borough Council in the administration
of the plan according to the regulations established pursuant to this
article.
C.
All such reasonable expenses incurred in the administration of the
plan, including, but not limited to, fees for the services of specialists
including actuaries, accountants, consultants and legal counsel, shall
be approved by Borough Council and all may be paid from the plan,
provided that no such payment shall be contrary to the statutes of
the Commonwealth of Pennsylvania.
D.
No member of Borough Council or the Committee established pursuant
to this article shall incur any liability for any action or failure
to act, excepting only liability for its own gross negligence or willful
misconduct. The employer shall indemnify each member of Borough Council
and the Committee against any and all claims, loss, damages, expense
and liability arising from any action or failure to act, except for
such that is the result of gross negligence or willful misconduct
of such member.
A.
Eligibility for normal retirement. A participant in the plan may
retire from active employment on the first day of the month following
the attainment of age 65, provided that the participant has completed
10 or more years of service with the employer.
B.
Normal retirement benefit.
(1)
A participant whose date of hire occurred before January 1, 2015,
who shall complete the age and service requirements as set forth in
this article shall receive a pension for life in the amount equal
to 0.5% for each full year of service (up to a maximum of 50 years)
times the participant's average monthly salary over the participant's
last 36 months of employment, or that percentage and based on that
number of months as shall be prescribed by statute of the Commonwealth
of Pennsylvania subsequent to the adoption of this article. The maximum
benefit shall be 25% of such member's average monthly salary,
so calculated. The eligible member may elect to have the monthly benefit
paid in the form of a joint and fifty-percent survivor annuity, or
any other actuarially equivalent option available, to be calculated
at the time benefits become payable. This election may be made during
the period of six months ending on the date on which payments commence
and is revocable in writing during this election period.
[Amended 7-12-2016 by Ord. No. 374]
(2)
A participant whose date of hire occurred on or after January 1,
2015, shall have established, by the employer, a defined contribution
pension plan. The employer shall contribute to such plan at least
annually, an amount equal to 5% of such participant's salary, as such
is defined in this chapter; provided, however, that the maximum annual
contribution shall be $3,800, or the amount received in applicable
state aid, whichever is greater. Such participant who shall have completed
the age and service requirements as set forth in this article shall
receive such defined contribution pension in a lump sum equal to the
cash balance of the participant's defined contribution account.
[Amended 2-11-2020 by Ord. No. 402]
(3)
Subject further to those limitations imposed by the statutes of the
Commonwealth of Pennsylvania, no offset or reduction from the benefit
here provided for shall be made for any social security retirement
benefits, workmen's compensation or other benefits to which the
participant is also entitled.
(4)
The benefit herein provided shall be payable solely from the assets
of the plan.
C.
Vested benefit.
(1)
A vested deferred monthly benefit shall be provided for any participant
whose date of hire occurred before January 1, 2015, and whose termination
date occurs prior to the participant's normal retirement date,
provided that the participant shall have completed a minimum of five
years of service with the employer and shall have notified the employer,
in writing, of such intention to vest at least 30 days prior to the
participant's date of termination. This benefit shall be computed
in the same manner as set forth in this article. Such vested deferred
monthly benefit shall be paid to the participant upon attainment of
that participant's normal retirement age as set forth in this
article.
[Amended 7-10-2018 by Ord. No. 389]
(2)
Vested deferred benefit.
[Amended 7-10-2018 by Ord. No. 389; 2-11-2020 by Ord. No. 402]
(a)
A vested deferred benefit shall be provided for any participant whose
date of hire occurred on or after January 1, 2015, and whose termination
date occurs prior to the participant's normal retirement date, provided
that the participant shall have completed a minimum of five years
of service with the employer and shall have notified the employer
of such intention to vest at least 30 days prior to the participant's
date of termination. This benefit shall be the value of such participant's
defined contribution plan account, the distribution of which, however,
shall be deferred as hereinafter set forth. In addition, the participant
benefits shall vest in an amount of 10% per year for each year of
completed service (the "partial vested amount") as follows:
|
Completed Year(s) of Employment
|
Vested Percentage
|
|---|---|
|
1
|
10%
|
|
2
|
20%
|
|
3
|
30%
|
|
4
|
40%
|
|
5
|
100%
|
(b)
The partial vested amount shall equal the applicable percentage multiplied
by the cash balance of the participant's defined contribution retirement
account at the date of separation. The cash balance of the participant's
defined contribution retirement account, or the partial vested amount,
shall be paid to the participant upon attainment of that participant's
normal retirement age as set forth in this article.
(3)
The surviving spouse of a participant who dies before his or her
pension has vested shall be entitled to receive repayment of all money
which the participant invested in the pension fund, plus interest,
or other increases in value of the participant's investment in
the pension fund, unless the participant has designated another beneficiary
for this purpose.
(4)
The employer's contributions, along with interest or other increases
related to the employer's contributions to the cash balance of
a participant's defined contribution retirement account set aside
for any participant whose date of hire occurred on or after January
1, 2015, and who did not complete the minimum of 10 years of service
set forth above shall be considered forfeited and used to defray any
current or future required employer contributions to this plan.
D.
Termination.
(1)
If for any reason a participant shall terminate service with the
employer prior to becoming vested, that participant shall be entitled
to a refund of that participant's contributions plus interest
at a rate of 6% per annum. Such interest shall be uniform for all
participants.
(2)
If a participant shall subsequently return to service and return
to the plan the contributions plus interest which were refunded to
the participant upon termination, the participant shall be entitled
to credit for the prior years of service to the extent of the return
of contributions.
(3)
Nothing in this article shall be construed to allow credit for service
not actually given to the employer, except as specifically provided
for in Article VI.
E.
Survivor benefit.
(1)
As to those participants whose date of hire occurred before January
l, 2015, the following survivor benefits apply:
[Amended 7-12-2016 by Ord. No. 374]
(a)
In the event of the death of a participant who was vested but
not yet receiving a retirement pension, or who had qualified for a
normal retirement pension but had not yet retired, that participant's
spouse, so long as the spouse does not remarry, shall be entitled
to receive a monthly pension equal to 50% of the pension the participant
was entitled to or would have been receiving had the participant been
retired at the time of the participant's death.
(b)
If no spouse survives, or if a spouse survives and subsequently
dies or remarries, then the child or children under the age of 18
years of the deceased eligible participant shall be entitled to receive
a monthly pension equal to 50% of the pension to which the participant
was entitled.
(2)
For those participants whose date of hire occurred on or after January
1, 2015, the following survivor benefits apply:
(a)
In the event of the death of a participant who was vested but
had not yet received the balance of the defined contribution account,
or who had qualified for a normal retirement pension but had not yet
retired, that participant's spouse shall be entitled to receive
the value of the retirement account of the participant by filing an
appropriate written request with the employer.
(b)
In the event of the death of a participant who was vested but
not yet receiving a retirement pension, or who had qualified for a
normal retirement pension but had not yet retired and who is not survived
by a spouse, the value of such participant's defined contribution
retirement account shall be distributed in accordance with the most
recent beneficiary designation form on file with the employer, and
if none then unto his or her estate.
F.
Nonalienation of benefits and vesting. No benefit under the plan
shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, or charge. Nor shall any
such benefits be in any manner liable for or subject to garnishment,
attachment, execution, levy or other legal process. Further, all benefits
granted herein shall vest in the participant upon completion of the
requirements for eligibility, and that participant's benefits
shall continue in the amount and in the form in which that participant
first became entitled to them.
[Amended 7-12-2016 by Ord. No. 374]
A.
Contributions of the employer. Contributions to the plan by the employer
shall be in an amount determined by the annual minimum municipal obligation
(MMO) calculation, prepared in accordance with Act 205 of 1984,[1] which is certified to the governing body of the Borough
by September 30 and included in the Borough budget for the following
year.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
B.
Contributions of participants.
(1)
Participants whose employment began prior to January 1, 2015, are
not currently required or permitted to contribute to the plan. Any
future changes in the contribution requirement for participants may
be enacted by ordinance or resolution.
(2)
Participants whose employment began subsequent to January 1, 2015,
may, but are not required to, contribute to their defined contribution
plan. Such voluntary contributions shall be made on a pre-tax basis.
[Amended 7-12-2016 by Ord. No. 374]
C.
Allocation of commonwealth funds. Any payments made by the State
Treasurer to the employer from the monies received from the taxes
paid on the premiums of foreign casualty insurance companies for purposes
of retirement or disability benefit pensions for municipal employees
shall be used as follows:
D.
Allocation of assets of existing pension plans. Any assets of any
existing pension plans for the full-time nonuniformed employees of
the Borough are hereby transferred to the plan established pursuant
to this article and shall be applied against the unfunded liability.
E.
Gifts, bequests and grants. All other monies and property received
by the plan, including gifts, bequests, devises and grants shall be
applied equally against the participant and the employer portions
of the future service cost unless otherwise specifically provided.
Any participant in the plan with at least six months of service
with the employer who thereafter shall enter the military service
of the United States of America shall have credited to the participant's
employment record for pension benefit purposes all of the time spent
by the participant in such military service, provided that the participant
returns to service with the employer within six months after said
participant's separation from such military service.
Upon termination of the plan, the assets shall be distributed
as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits
prescribed in Article IV for all participants who have retired prior
to the termination of the plan, or who are eligible to retire at the
time of the termination of the plan.
B.
Sufficient funds shall be maintained to provide vested pension benefits
prescribed in Article IV for all participants who are eligible for
such benefits.
C.
Any funds representing contributions from the remaining participants
shall be returned to such participants with interest at a rate of
6% per annum.
D.
Of the remaining funds, those which can be identified as contributions
of the employer, or contributions other than those identified as unused
commonwealth allocations, shall be distributed as the Borough Council
sees fit, provided that such distribution is made on a uniform basis.
A.
Neither the establishment of the plan hereby created, nor any modification
thereof, nor the creation of any fund or account, nor the payment
of any benefits, shall be construed as giving to any participant or
other person any legal or equitable right against the employer or
any officer or employee thereof or the Borough Council except as herein
provided.
B.
Under no circumstance shall the plan hereby created constitute a
contract for continuing employment for any participant or in any manner
obligate the employer to continue or to discontinue the services of
an employee.
C.
This plan has been established and shall be maintained by the employer
in accordance with the laws of the Commonwealth of Pennsylvania. The
plan shall continue for such period as may be required by such laws,
provided that the employer may, by its own action, discontinue the
plan should such laws provide, and the employer reserves the right
to take such action in its sole and absolute discretion. Upon termination,
the employer shall have no liability hereunder other than that imposed
by law.
All investments by the Borough Council of the assets of this
plan shall comply with any applicable state statutes, rules and regulations
with respect to municipal investments for nonuniformed pension funds
and with such regulations as the Borough Council shall establish for
the purpose of investing such funds.
Borough Council reserves the right to amend, at any time in
whole or in part, any or all of the provisions of the plan, provided
that no such amendment shall authorize or permit any part of the plan
to be used or diverted to purposes other than for the exclusive benefit
of the participants, their beneficiaries, or their estates. Nor shall
any amendment divest a participant of benefits vested by the provisions
of Article IV. All such amendments shall comply with the applicable
statutes of the Commonwealth of Pennsylvania.
A.
The plan shall be construed according to the laws of the Commonwealth
of Pennsylvania, and all provisions hereof shall be administered according
to the laws of such Commonwealth.
B.
Wherever any words are used herein in the masculine gender, they
shall be construed as though they were also used in the feminine gender
in all cases where they would so apply; and wherever any words used
herein are in the singular form, they shall be construed as though
they were also used in the plural form in all cases where they would
so apply.
C.
Headings of articles and paragraphs of this instrument are inserted
for convenience of reference. They constitute no part of this plan
and are not to be considered in the construction thereof.
