[Ord. 631, 7/28/2005, Art. I]
1.
AGE
ANNIVERSARY DATE
AVERAGE APPLICABLE COMPENSATION
Board
CHIEF ADMINISTRATIVE OFFICER
COMPENSATION
EARLY RETIREMENT DATE
EFFECTIVE DATE
EMPLOYEE
FUND
MEMBER
NORMAL RETIREMENT DATE
PLAN
PLAN YEAR
SERVICE
TOTAL AND PERMANENT DISABILITY
TOWNSHIP
TRUSTEE
As used
in this Part 5, the following terms shall have the meanings indicated:
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
The average monthly earnings of the member at any time of
reference computed over the last 36 months (or such shorter period
as represents the member's total period of continuous employment by
the Township) of his continuous employment by the Township prior to
such date of reference. For purposes of computing average applicable
compensation, actual monthly earnings shall include base wage pay
or salary, overtime pay, vacation pay, longevity increment pay, shift
differential, holiday pay, educational increment pay, sick pay, incentive
pay, court time and on-call pay as well as any other direct monetary
compensation, excluding, however, reimbursed expenses, nonmonetary
compensation such as fringe benefits paid by the Township and other
payments made in lieu of expenses.
[Amended by Ord. 732, 8/18/2016; Ord. 734, 10/16/2016]
The Board of Supervisors of the Township of Warminster.
The person who has primary responsibility for the execution
of the administrative affairs of this pension plan, or the designee
of that person.
Includes base wage pay or salary, overtime pay, vacation
pay, longevity increment pay, shift differential, holiday pay, court
time and on-call pay, as well as any other direct monetary compensation,
excluding, however, reimbursed expenses, nonmonetary compensation
such as fringe benefits paid by the Township, and other payments made
in lieu of expenses.
The first day following the date on which the member completes
20 years of service.
The effective date of this Part 5 shall be January 1, 2005.
Any sworn police officer in the full-time employ of the Township
Police Department whose customary employment is for not less than
40 hours a week.
All assets held by the trust under the trust agreement relating
to this Police Pension Plan.
Any sworn police officer in the full-time employ of the Township Police Department who has satisfied the eligibility requirements established in § 1-502 hereof and who is, at the time of reference, or has, prior to their elimination, been making such contributions as may be required pursuant to § 1-503, Subsection 1, hereof.
For members hired before January 1, 2016, the first day following
the date on which the member completes 25 years of service, and the
date on which the member attains the age of 50. For members hired
on or after January 1, 2016, "normal retirement date" shall mean the
first day following the date on which the member completes 25 years
of service, and the date on which the member attains the age of 54.
[Amended by Ord. 732, 8/18/2016]
The Police Pension Plan for the Township of Warminster, as
herein set forth and as the same may hereafter be amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
The aggregate of a member's total periods of employment as
a full-time employee of the Township. 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 wartime or general military
conflict shall be counted as service for purposes of the plan, provided
that such member returns to police service with the Township within
six months after his discharge or release from such active 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 peacetime shall not be included as service for the purposes
of this plan. Time spent on Reserve or National Guard training shall
be included as service for purposes of this plan.
Any condition arising from service-connected illness or injury
which precludes an employee from performing the duties associated
with the normal occupational requirements of a police officer as certified
by a physician designated by the Township.
The Township of Warminster, Bucks County, Commonwealth of
Pennsylvania.
The Board of Supervisors of the Township of Warminster or
any other agency or person appointed by such to serve in that capacity
as set forth in the trust agreement.
2.
Wherever
applicable as used herein, unless the context specifically provides
otherwise, the singular and plural shall be interchangeable, and the
masculine and feminine pronoun shall include either sex.
[Ord. 631, 7/28/2005, Art. II]
[Ord. 631, 7/28/2005, Art. III]
1.
Contributions by members. Members shall pay into the fund at a rate of 5% of compensation. "Compensation" for this purpose shall be as defined in § 1-501 of the plan. The Board may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members. Individual records of contributions by members shall be maintained, including all interest credited to his individual account. Interest to be credited shall be 4% compounded annually. Interest shall be credited from the end of the plan year in which paid to the last day of the month after which a refund becomes payable.
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 police force 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 pension
payments made to the member.
3.
Deposits. Contributions by members shall be remitted to the trustee
monthly.
4.
State aid. The portion of the payments made by the State Treasurer
to the Township and designated by the Board to be allocated to the
Police Pension Fund from money received from taxes paid upon premiums
by foreign casualty insurance companies for purposes of pension retirement
or disability benefits for policemen shall be used as follows:
5.
Township contributions. Subject to the provisions and limitations
set forth in other sections of this plan, the Township shall contribute
the amounts certified to be necessary by the fund's actuary to provide
the benefits provided by this plan.
6.
Nonintervening military buyback. The plan provides for full service
credit for each year of military service or fraction thereof, not
to exceed five years, to a member who was not employed by the Township
prior to such military service, payable by the member. The member
shall pay the amount for the purchase of credit for military service
other than intervening military service, which shall be computed by
applying the average normal cost rate for the 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 service and multiplying the result by the number
of years and fractional part of a year of creditable nonintervening
military service being purchased, together with the interest at the
rate of 4 3/4% compounded annually from the date of initial entry
into service to the date of payment. A member of the plan shall be
eligible to receive service credit for intervening or nonintervening
military service, provided that he is not entitled to receive, eligible
to receive then 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 who is receiving military retirement
pay earned by a combination of active duty and nonactive duty with
a Reserve or National Guard component of the armed forces, which retirement
pay is payable only upon the attainment of a specified age and period
of service under 10 U.S.C. Ch. 1223 (relating to retired pay for nonregular
service).
[Amended by Ord. 737, 1/19/2017]
7.
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. 631, 7/28/2005, Art. IV]
1.
Normal retirement.
A.
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 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 to under this plan shall be equal to 50%
of such member's average applicable compensation.
B.
In addition
to the monthly retirement benefit described above, each member who
has completed 26 years of service shall receive an additional monthly
pension benefit equal to a maximum of $100 per month.
2.
Early retirement benefit. Each member may retire on or at any time after his early retirement date. Upon termination, the member must file with the Secretary of the Township 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 as computed in § 1-506, Subsection 1A. 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 report filed with the Public Employee Retirement Commission.
3.
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 contributions required pursuant to § 1-503, Subsection 1, hereof shall continue.
4.
If a member retires because of a total and permanent disability,
he shall be entitled to receive a pension benefit equal to the greater
of 50% of his average applicable compensation, or 50% of his salary
at the time the disability was incurred. The pension benefit shall
be reduced by any social security benefit received by the member for
the same injury. The benefit will commence on the first day of the
month following the month in which he retires. The Board reserves
the right to require disabled member to present evidence of total
and permanent disability and of the continuance of such permanent
disability and of the continuance of such condition from time to time,
and further reserves the right to require members to submit to medical
examinations by practitioners selected by the Board as a precondition
to the continued payment of benefits.
[Amended by Ord. 732, 8/18/2016]
5.
Cost-of-living adjustment. Each March, there shall be a cost-of-living
adjustment provided to a member who is retired or disabled and who
has been receiving benefits for 12 months or longer, inclusive of
March 1 of the year in which the increase is to be made; provided,
however, that such cost-of-living increase shall not exceed 5% or
the percentage increase in the All Urban Consumers CPI for the Philadelphia
metropolitan area, whichever is less; provided, further, that in no
case shall the total police pension benefits exceed 75% of the salary
for computing retirement benefits; provided, further, that the total
cost-of-living increase shall not exceed 30%. No cost-of-living increase(s)
shall be granted which would impair the actuarial soundness of the
plan. All adjustments shall be made in March and calculated on the
twelve-month percentage change in the consumer price index as of the
previous December.
[Ord. 631, 7/28/2005, Art. V]
1.
Death benefit if no surviving spouse nor dependent children. If a
member dies prior to the commencement of pension benefits, then his
designated beneficiary shall be entitled to a refund of his accumulated
member's contributions with credited interest. If no beneficiary survives,
then the refund is payable to the member's estate.
2.
Pension benefit to surviving spouse and dependent children.
A.
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
he was already receiving a pension; he met the age and service requirements,
but he had not yet retired), then a monthly pension benefit shall
be provided.
B.
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.
C.
In the event a 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 § 1-506, Subsection 1A. 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.
D.
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 § 1-504, Subsection 2. 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.
E.
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 adopted children and any child conceived before
the time of the member's death and thereafter born to the member's
spouse.
3.
Preretirement survivor benefit. In the event a member is killed in
service, the Township shall submit a certification of such death to
the Commonwealth within 90 days of such death. The member's family
shall receive the benefits provided for and subject to the terms of
Act 51 of 2009, which benefits are paid exclusively by the Commonwealth
of Pennsylvania with the exception of any pension befit to which the
member was entitled prior to the police employee's death, solely by
virtue of the member's service with the Township (i.e., either a normal,
early or vested pension benefit). It is understood that "family" shall
refer to the surviving spouse and dependent children. The benefit
is payable to the surviving spouse until death then to the surviving
dependent children under the age of 18 years, or if attending college,
under or attaining the age of 23 years.
[Amended by Ord. 732, 8/18/2016]
[Ord. 631, 7/28/2005, Art. VI]
1.
If a member leaves the employ of the Township or ceases to be a member, whether by reason of his transfer, resignation or discharge or by reason of disability or retirement other than after becoming eligible for benefits pursuant to §§ 1-504 and 1-505 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 § 1-503, Subsection 1. However, a member who has completed 12 or more years of service may elect either Subsection 1A or B as described below:
A.
Upon reaching the date which would have been his superannuation retirement
date if he had continued to be employed as a full-time police officer,
a member may elect to be paid a partial superannuation retirement
allowance determined by applying the percentage his years of service
bears to the years of service which he would have rendered had he
continued to work until his superannuation retirement date to the
gross pension, using the monthly average salary during the thirty-six-month
period prior to his termination of employment.
[Amended by Ord. 732, 8/18/2016]
B.
He may elect to receive a refund of all contributions made by him and then on deposit in the trust fund, plus interest thereon, computed at the rate described in § 1-503, Subsection 1. If he elects to receive the refund of his contributions, plus interest, he would forfeit the pension benefit outlined in Subsection 1A.
[Ord. 631, 7/28/2005, Art. VII]
2.
The normal form of all benefits payable hereunder shall be a pension for the life of the member commencing on the date specified and ending with a payment made on the first day of the month in which the member dies; subject, however, to the payment of a death benefit calculated pursuant to § 1-505, Subsection 2.
[Ord. 631, 7/28/2005, Art. VIII]
1.
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 1-504, 1-505 and 1-506, in accordance with the instructions received from the Board; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes.
2.
The Board may employ an 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 Township at such rates as may be agreed
upon by the Board. Such compensation may be paid from the fund.
3.
The Board may, by an instrument in writing, appoint one or more persons
as an investment manager and may delegate to an investment manager,
from time to time, the power to manage and control the investment
of any plan asset.
A.
Each person
appointed shall be:
B.
Each investment manager shall acknowledge, in writing, that it is
a fiduciary with respect to the plan. The Board shall enter into an
agreement with each investment manager specifying the duties and compensation
of such investment manager and other terms and conditions under which
such investment manager shall be retained. The Board shall not be
liable for any act or omission of any investment manager and shall
not be liable for following the advice of any investment manager with
respect to any duties delegated to the investment manager.
C.
The Board shall have the power to determine the amount of fund assets
to be invested pursuant to the direction of a designated investment
manager and to set investment objectives and guidelines for the investment
manager.
4.
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 Board 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 Township with respect to each plan year in accordance
with the assumptions most recently adopted by the Board for the purpose
of such computations; provided, however, that the liability of the
Township to make such contributions is subject to all of the conditions
and limitations set forth elsewhere in this plan.
[Ord. 631, 7/28/2008, Art. IX]
1.
The plan shall be administered by the Board of the Township of Warminster.
The Board shall make and adopt rules and regulations for the efficient
administration of the plan.
2.
The Board 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 professionals whose services are employed pursuant to § 1-508, Subsection 2, of this plan.
3.
The Board 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. 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 Board
shall act uniformly with respect to matters coming before it concerning
employees in similar circumstances.
4.
The members of the Board, 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
Township 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.
5.
The Board shall make available to members, retired members and terminated
members, and to their beneficiaries, for examination during business
hours, such records as to pertain to the person examining.
6.
To enable the Board to perform its function, the Township administration
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 Board may require.
7.
The Board 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 Board shall be taken
at meetings at which at least three members shall be present, or by
written resolutions concurred in by not less than three of its members.
Written minutes shall be kept of the meetings and action of the Board.
8.
The Secretary, acting on behalf of the Board, shall have the power
to execute all documents necessary to carry out the actions of the
Board, and any person, partnership, corporation or government agency
shall accept such documents over such signature or signatures as if
executed by the Board.
[Ord. 631, 7/28/2005, Art. X]
1.
It is the expectation of the Township 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.
2.
The provisions of any ordinance establishing, amending, or maintaining
the plan shall not be a charge on any other fund in the treasury of
the Township or under its control, save the Uniformed 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 Township
to retain any person in its service. The Township reserves the full
right to discontinue the service of any person without any liability,
except for salary or wages that may be due and paid, whenever, in
its judgment, its best interests so require, and such discontinuance
shall be without regard to this plan.
[Ord. 631, 7/28/2005, Art. XI]
1.
The Township may amend this plan from time to time as is necessary
to maintain its actuarial soundness and to incorporate changes in
plan benefits or entitlements. However, no amendment shall be made
which will, in any manner, divert any part of the fund to any purpose
other than the exclusive benefit of members or their beneficiaries
(except that, 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 or reduce
or eliminate a benefit to which a member has been given an expectation
by virtue of pension ordinance or pension calculations for retiring
officers who retired during the member's participation in this plan.
2.
In the event of termination of this plan, the Board shall allocate
the assets then remaining in the fund as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 1-503 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.
B.
Contributions with interest at a rate established by the Board as provided in § 1-505 shall be refunded to any and all members who terminate service at the time of the termination of the fund.
C.
Of the remaining funds, those which can be identified as municipality contributions or contributions other than from members or from the commonwealth allocation shall be distributed as the Board sees fit, provided that such distribution is in compliance with § 1-508.
D.
All funds in excess of the funds described in Subsection 2A, B and
C above shall be returned to the commonwealth as unused funds pursuant
to the Act of May 12, 1943, P.L. 259, as amended, 72 P.S. § 2263.1
et seq.
[Ord. 631, 7/28/2005, Art. XII]
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 Section 414(p) of
the Internal Revenue Code, and those other domestic relations orders
permitted to be so treated by the Board under the provisions of the
Retirement Equity Act of 1984. The Township shall establish a written
procedure to determine the qualified status of domestic relations
orders to administer distributions under such qualified orders. Further,
to the extent provided under a qualified domestic relations order,
a former spouse of a member shall be treated as the spouse or surviving
spouse for all purposes under this plan.
[Amended by Ord. 737, 1/19/2017]
2.
Any person dealing with the Township may rely upon a copy of this
plan and any amendments thereto certified to be true and correct by
the trustee.
3.
In no circumstances, 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.
4.
If the Board deems any person incapable of receiving benefits to
which he is entitled by reason of minority, illness, infirmity, or
other incapacity, it may make payment directly, for the benefit of
such person, to the guardian or trustee for said person, whose receipt
shall be complete acquittance therefor. Such payment shall, to the
extent therefor, discharge all liability of the Township or the fund.
5.
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 determined to be void.
6.
Headings and captions provided herein are for convenience only and
shall not be deemed part of the plan.
7.
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.
8.
This Part 5 repeals all other ordinances prior to the date of its
enactment.
[Ord. 646, 9/28/2006, § 9]
1.
DEFERRED RETIREMENT OPTION PLAN (DROP)
DROP ACCOUNT
PARTICIPANT
Definitions. As used in this section, the following terms shall have
the meanings indicated:
An optional retirement program in which an eligible member
of the pension plan may elect to participate, deferring receipt of
normal retirement benefits while continuing employment with Warminster
Township without the loss of any other employee benefits.
An account created to accept each DROP participant's monthly
pension payments while a DROP participant.
An eligible police employee who has elected to participate
in the DROP.
2.
Eligibility. Any active police employee (as that term is defined
in the collective bargaining agreement ("agreement") effective February
1, 2005) who has reached the age of 50 years and has 25 years of service
shall be eligible to participate in DROP at his or her option upon
providing at least 30 days' written notice to the Township.
3.
Entry into DROP. Election to participate by an eligible police employee
shall be made on any date on which the police employee fulfills the
minimum age and service requirements for normal retirement under the
pension plan. Once a police employee commences participation in DROP,
he or she may not choose to end participation in DROP and resume contributions
to the pension plan.
4.
Request to enter and enrollment forms. Election to participate shall
be made by completing the required request and enrollment forms, which
shall show the entry date into DROP, the deferred retirement date
for the term chosen by the police employee and the calculated retirement
benefit amount. The deferred retirement date shall not exceed 60 months
from the date of enrollment and entry into DROP.
5.
The length of DROP. The DROP term shall be for a period of not less
than 12 months and not more than 60 months from the date of entry.
Once enrolled for a period of 12 months in DROP, the participant can
end his or her participation at any time, but no later than 60 months
from date of entry. If an employee ends his or her participation in
the DROP during the DROP term, such action shall constitute a voluntary
resignation from employment. Participation in DROP does not constitute
a guarantee of employment for the DROP term, nor does the Township
waive the right to take disciplinary action, including termination,
during the DROP term for any lawful reason set forth in the Police
Tenure Act.[1]
[1]
Editor's Note: See 53 P.S. § 811 et seq.
6.
Retirement status and pension contribution. Once enrolled in DROP, the participant shall be retired under the pension plan for the purpose of calculating pension benefits and all compensation to be redeemed and/or paid under the agreement upon a police employee's retirement, but not for the purpose of employment with the Warminster Police Department. The participant shall continue to receive all other employee benefits and programs as set forth in the agreement. Once a police employee enters DROP, he or she shall no longer be required to make contributions to the pension plan, nor shall he or she be eligible for any further pension benefits other than the pension benefit determined in Subsection 7, Retirement rate, hereof.
7.
Retirement rate. Payments to DROP will be made at the participant's calculated monthly retirement benefit amount, determined by Article 18 of the agreement, at the date the police employee enters DROP. Payments shall be sent to the participant's DROP account with the investment manager (See Subsection 9 below.) on a monthly basis. Payments to DROP shall be increased pursuant to the cost-of-living adjustments as set forth in Article 18 of the agreement.
8.
Payout. Upon the termination date set forth in the participant's
enrollment form, unless a voluntary or involuntary termination occurs
sooner, the pension benefits payable to the participant or participant's
beneficiary, if applicable, shall be paid to the participant or beneficiary
and shall no longer be paid to the participant's DROP account. Within
30 days following termination of a participant's employment, the participant
shall provide instructions to the investment manager mutually selected
by the Township and the Warminster Police Benevolent Association (WPBA)
regarding the desired disposition of the balance in his or her DROP
account. It is understood by the parties that each participant must
obtain his or her own professional legal and/or tax advice to determine
and analyze the propriety and impact of his or her desired disposition
of the DROP account balance under state, federal and local tax laws.
The Township assumes no responsibility in this regard whatsoever,
and the DROP enrollment form shall contain this disclaimer of liability
and must be acknowledged by each participant upon enrollment.
9.
Administration. DROP accounts shall be administered by investment
manager(s) who shall be mutually selected by the Township and WPBA.
The costs and fees associated with the management and administration
of the DROP shall be paid exclusively by the participant. The participant
shall be solely and exclusively responsible for all risks associated
with his or her account with the investment manager. The Township
shall have no responsibility or liability for the performance of a
participant's DROP account, and the enrollment form required of each
participant shall require an acknowledgment of this disclaimer.
10.
Tax consequences. Upon enrollment in the DROP, each participant acknowledges
that the Township has made no representations regarding the manner
in which DROP accounts must be treated for federal, state or local
tax purposes and that the Township shall bear no responsibility, financial
or otherwise, for any tax consequences to the DROP participants. It
is understood that any such consequences, including any fines or penalties,
as well as any professional legal and/or tax advice which may be appropriate,
shall be the sole and exclusive responsibility of each DROP participant.
11.
Disability issues. If the participant becomes temporarily disabled
during his or her participation in DROP, the participant shall receive
disability pay in the same amount as police employees that are not
participating in DROP. If a participant is injured, to the extent
that he or she is totally disabled from performing police work for
Warminster Township as defined in Article 18(F) of the agreement,
the participant shall be retired. Participation in DROP shall terminate,
and distribution of accumulated pension benefits shall be disbursed
to the participant in accordance with IRS regulations, as well as
applicable state, federal and local laws. Further, the participant's
pension shall be reclassified as a service-related disability pension
and paid directly to the participant or his or her beneficiary. No
period of disability shall postpone the deferred retirement date set
forth on a participant's enrollment form.
12.
Survivorship options. If a participant dies during his or her participation period, all funds in that participant's account shall be disbursed to the participant's beneficiary or beneficiaries listed in the DROP enrollment form. Upon the death of a participant, either during or following his or her DROP term, the death and survivor benefits will be payable by the pension plan in accordance with Article 18(I) and (J) of the agreement, with the stipulation that the monthly pension benefit upon which survivorship calculations are determined shall be that amount determined by Subsection 7, Retirement rate, above. If a participant is killed in service, the named beneficiary of a participant shall be entitled to apply for and receive a recalculation for payment pursuant to Article 18(M) of the agreement.
13.
Conflict with existing laws. This section shall be interpreted, if
possible, to be consistent and not in conflict with any provision
of the Constitution or statutes of the federal government or the Commonwealth
of Pennsylvania. If, after DROP is instituted, the Internal Revenue
Service, any agency of the Commonwealth of Pennsylvania, the Pennsylvania
Commonwealth Court, and/or the Pennsylvania Supreme Court issues an
official opinion, pension audit finding or pension audit observation
indicating that any benefit or component of this section is in conflict
with Pennsylvania law, the Township and WPBA agree to bargain in accordance
with Act 111[2] over deletion of this benefit or component. In the event any such opinion, audit finding or observation relates specifically to the disability pension provisions under Subsection 11 above, the relevant provision shall be rendered void, and the parties shall immediately commence efforts bargaining on that issue. If legislation is passed in Pennsylvania establishing a DROP plan, it is the intent of the parties that this section should conform to said legislation. The parties further agree to commence bargaining, if necessary, to resolve any logistical obstacles that may arise in connection with initially implementing the DROP accounts as described herein.
[2]
Editor's Note: See 43 P.S. § 217.1 et seq.