Borough of Clifton Heights, PA
Delaware County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents
[HISTORY: Adopted by the Borough Council of the Borough of Clifton Heights as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Officers and employees — See Ch. 28.
Police Department — See Ch. 44.
Salaries and compensation — See Ch. 55.
[Adopted 9-18-1989 by Ord. No. 692 (Ch. 1, Part 6, of the 1988 Code of Ordinances); amended in its entirety 8-20-2013 by Ord. No. 839]
A. 
As used in this article, the following terms shall have the meanings indicated:
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any January 1 after the effective date.
AVERAGE APPLICABLE COMPENSATION
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 Borough prior to such date of reference). For purposes of computing average applicable compensation, actual monthly earnings shall include, but not be limited to, base pay, longevity pay, shift differential (if any) and overtime pay but shall exclude reimbursement expenses or payment in lieu of expenses, nonsalary compensation, including, but not limited to, fringe benefits provided by the Borough and any other allowances paid by the Borough (i.e., uniform allowances).
BOROUGH
The Borough of Clifton Heights, Delaware County, Commonwealth of Pennsylvania.
CHIEF ADMINISTRATIVE OFFICER
The person who has primary responsibility for the execution of the administrative affairs of this pension plan, or the designee of that person.
COMPENSATION
Shall be based on earnings, including but not limited to base pay, longevity pay, shift differential (if any) and overtime pay but shall exclude reimbursement expenses or payment in lieu of expenses, non-salary compensation including, but not limited to, fringe benefits provided by the Borough and any other allowances paid by the Borough (i.e., uniform allowances).
COUNCIL
The Council of the Borough of Clifton Heights.
EARLY RETIREMENT DATE
The first day following the date on which the member completes 20 years of service.
EFFECTIVE DATE
January 1, 2012.
EMPLOYEE
Any sworn police officer in the full-time employ of the Borough Police Department whose customary employment is for not less than 40 hours a week.
FUND
All assets held by the trust under the trust agreement relating to this Police Pension Plan.
MEMBER
Any sworn police officer in the full-time employ of the Borough Police Department who has satisfied the eligibility requirements established in § 33-2 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 § 33-3A hereof.
NORMAL RETIREMENT DATE
The first day following the date on which the member completes 25 years of service, and the date on which the member attains age 50.
PLAN
The Police Pension Plan for the Borough of Clifton Heights, as herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.
SALARY
Base wage.
SERVICE
The aggregate of a member's total periods of employment as a full-time employee of the Borough. If a member enters military service, either voluntarily or by conscription, after he has been employed for at least six months, such time spent in the armed forces of the United States during a period of wartime of general military conflict shall be counted as service for purposes of the plan, provided that such member returns to police service with the Borough 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.
TOTAL AND PERMANENT DISABILITY
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 Borough.
TRUSTEE
The Council of the Borough of Clifton Heights or any other agency or person appointed by such to serve in that capacity as set forth in the trust agreement.
B. 
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.
A. 
All persons who are employees (as defined in this plan) as of the effective date hereof shall be a member as of the effective date.
B. 
Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.
A. 
Contributions by members. Member shall pay into the fund at a rate of 5% of compensation. Compensation for this purpose shall be as defined in Section 1.06 of the plan. The Council 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 6% compounded annually.
(1) 
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.
B. 
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.
C. 
Deposits. Contributions by members shall be remitted to the trustee monthly.
D. 
State aid. The portion of the payments made by the State Treasurer to the Borough and designated by the Council 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: to reduce the unfunded liability, or, after such liability has been fully funded, to apply against the annual obligation of the Borough for future service costs, or to the extent that the payment may be in excess of such obligations, to reduce member contributions pursuant to § 33-3H hereof.
E. 
Borough contributions. Subject to the provisions and limitations set forth in other sections of this plan, the borough shall contribute the amounts certified to be necessary by the fund's actuary to provide the benefits provided by this plan.
F. 
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.
A. 
Normal retirement. Each member may retire on or at any time after his normal retirement date. Any member so retiring shall be entitled to receive a monthly pension commencing as of the first day 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.
(1) 
In addition to the monthly retirement benefit described above, each member who has completed in excess of 25 years of service shall receive an additional monthly pension benefit equal to $8.33 for each completed year of service up to a maximum of $100 per month.
B. 
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 Borough a written notice of his intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit as computed in § 33-6A(1)(a). 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.
C. 
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 § 33-3A hereof shall continue.
D. 
Disability benefit. If a member retires because of a total and permanent disability, he shall be entitled to receive a pension benefit equal to 70% of his salary at the time the disability was incurred, offset by any social security disability benefits received by the member for the same injury.
(1) 
The benefit will commence on the first day of the month following the month in which he retires. In no event, however, shall the member's benefit exceed 100% of his total wages (including longevity, night differential, and workers compensation) as received in the twelve-month period preceding retirement. Council reserves the right to require a disabled member to present evidence of total and permanent disability and of the continuance of such condition from time to time and either reserves the right to require members to submit to medical examinations by practitioner(s) selected by the Council as a precondition to the continued payment of benefits.
E. 
Cost of living adjustment. There shall be a cost of living adjustment provided to all members who have completed 15 years of retirement; provided, however, that such cost of living increase shall not exceed the percentage increase in the All Urban Consumers CPI for the Philadelphia area from the year in which the police officer last worked; 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. The first adjustment shall be made at the time the member has completed 15 years of retirement and all subsequent adjustments shall be made in January and calculated on the twelve-month percentage change in the consumer price index as of the previous October.
A. 
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.
B. 
Pension benefit to surviving spouse and dependent children. 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.
(1) 
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.
(2) 
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 § 33-6A(1)(a). 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.
(3) 
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 § 33-4B. 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.
(4) 
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 date and thereafter born to the member's spouse.
C. 
Preretirement survivor benefit. In the event a member is killed in service, the member's family shall receive the benefits provided for and subject to the terms of Act 51 of 2009,[1] which benefits are paid exclusively by the Commonwealth of Pennsylvania with the exception of any pension benefit to which the member was entitled prior to the member's death, solely by virtue of the member's service as a Borough police officer (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. The term dependent children and attending college shall be consistent with that of § 33-5B.
[1]
Editor's Note: See 53 P.S. § 891 et seq.
A. 
If a member leaves the employ of the Borough 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 § 33-4 or 33-5 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 § 33-3A.
(1) 
However, a member who has completed 12 or more years of service may elect either Subsection A(1)(a) or (b) as described below:
(a) 
He may elect to leave his contributions, plus interest in the fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Secretary of the Borough within 90 days of the date he ceases to be a full-time police officer, a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y) where (x) is the number of years of service at the date of termination and (y) is the number of years of service which the member would have had if he worked until normal retirement date, multiplied by the benefits described in § 33-4A. Years of service shall be measured in years and completed months.
(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 § 33-3A. If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit outlined in Subsection A(1)(a).
A. 
Refund benefits becoming distributable pursuant to § 33-6A and death benefits becoming distributable pursuant to the provision of § 33-5A shall be paid in the form of a lump-sum distribution.
B. 
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 § 33-5B.
A. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 33-4, 33-5, and 33-6, in accordance with the instructions received from the Council, provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes.
B. 
The Council 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 Borough at such rates as may be agreed upon by the Council. Such compensation may be paid from the fund.
C. 
The Council 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.
(1) 
Each person appointed shall be:
(a) 
An investment advisor registered under the Investment Advisors Act of 1940.
(b) 
A bank as defined in that act, or
(c) 
An insurance company qualified to manage, acquire or dispose of any asset of the plan under the laws of more than one state.
(2) 
Each investment manager shall acknowledge in writing that it is a fiduciary with respect to the plan. The Council 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 Council shall not be liable for any act or omission of any investment manager, and shall not be liable for following the advise of any investment manager, with respect to any duties delegated to the investment manager.
(3) 
The Council 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.
D. 
The trustee shall make an annual determination of the fair market value of the fund as of the anniversary date and as of such additional dates as the Council may direct.
(1) 
The fair market value of the fund shall be reported to the actuary who shall calculate the amount to be contributed to the fund by the Borough with respect to each plan year in accordance with the assumptions most recently adopted by the Council for the purpose of such computations; provided, however, that the liability of the Borough to make such contributions is subject to all of the conditions and limitations set forth elsewhere in this plan.
A. 
The plan shall be administered by the Council of the Borough of Clifton Heights. The Council shall make and adopt rules and regulations for the efficient administration of the plan.
B. 
The Council shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provision of the plan, and shall provide all such data, records and documents to the professionals whose services are employed pursuant to § 33-8B of this article.
C. 
The Council shall construe the plan, shall determine any questions or 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 be the sole judge of such expediency. The Council shall act uniformly with respect to matters coming before it concerning employees in similar circumstances.
D. 
The members of the Council, and each of them shall be free of all liability for any act or omission except by willful misconduct or gross negligence, and each of them shall be fully indemnified by the Borough against all judgments not involving findings of their respective personal or collective willful misconduct or gross negligence and against all cost, including counsel fees, incurred in defense of actions brought against them.
E. 
The Council 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.
F. 
To enable the Council to perform its function, the Borough 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 Council may require.
G. 
The Council shall enact such rules and regulations for the conduct of its business and for the administration of the plan as it may consider desirable, provided the same shall not be in conflict with any of the provisions of the plan. All actions of the Council shall be taken at meetings at which at least four members shall be present, or by written resolutions concurred in by not less than four of its members shall be the action of the entire Council. Written minutes shall be kept of the meetings and action of the Council.
H. 
The Secretary, acting on behalf of the Council, shall have the power to execute all documents necessary to carry out the actions of the Council, and any person, partnership, corporation or government agency shall accept such documents over such signature or signatures as if executed by the Council.
A. 
It is the expectation of the Borough that it will continue this pension plan indefinitely, and will, from time to time, contribute to the fund such amounts as may be needed to provide the benefits set forth in the plan.
B. 
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 Borough or under its control, save the Uniformed Employee's Pension Fund herein provided for.
C. 
Nothing contained in the plan shall be held or construed as a contract or guarantee of employment nor to create any liability upon the Borough to retain any person in its service. The Borough reserves the full right to discontinue the service of any person without any liability except for salary or wages that may be due and paid, whenever in its judgment its best interests so require, and such discontinuance shall be without regard to this plan.
A. 
The Borough 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.
B. 
In the event of termination of this plan, the Council shall allocate the assets then remaining in the fund as follows:
(1) 
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 33-3 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.
(2) 
Contributions with interest at a rate established by the Council as provided in § 33-5 shall be refunded to any and all members who terminate service at the time of the termination of the fund.
(3) 
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 Council sees fit, provided that such distribution is in compliance with Article VIII.
(4) 
All funds in excess of the funds described in § 33-11B(1) through (3) 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.
A. 
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.
(1) 
This provision shall not apply to a "qualified domestic relations order" defined in Code Section 414(p), and those other domestic relations orders permitted to be so treated by the Council under the provisions of the Retirement Equity Act of 1984. The Borough 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.
B. 
Any person dealing with the Borough may rely upon a copy of this plan and any amendments thereto certified to be true and correct by the trustee.
C. 
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.
D. 
If the Council deems any person incapable of receiving benefits to which he is entitled by reason of minority, illness, infirmity, or other incapacity, it may make payment directly for the benefit of such person, to the guardian or trustee for said person, whose receipt shall be complete acquittance therefore. Such payment shall, to the extent therefore, discharge all liability of the Borough, or the fund.
E. 
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.
F. 
Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.
G. 
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.
H. 
This article repeals all other ordinances prior to the date of its enactment.
[Adopted 7-21-2009 by Ord. No. 817]
For the purposes of this article, the following terms shall have the meanings indicated:
BENEFICIARY
The individual identified by a police officer to receive the contents of an officer's DROP account in the event of the death of an officer during the period in which the officer is participating in the DROP but before the officer separates from employment.
DROP
Deferred Retirement Option Plan.
DROP ACCOUNT
Separate account created to accept a DROP participant's monthly pension check while a DROP participant.
FUND or PLAN
The police pension plan for the Borough of Clifton Heights.
POLICE OFFICERS
Full-time police officers of the Borough of Clifton Heights.
As of the effective date of this article, police officers who have not retired prior to the implementation of the DROP program may enter into DROP on the first day of any month following completion of 25 years of credited service and attaining the age of 50.
A police officer electing to participate in the DROP must complete and file with the Borough Manager a DROP agreement prepared by the Borough which shall evidence the member's participation in the DROP. The form must be signed by the police officer and notarized and submitted to the Borough prior to the date on which the police officer wishes the DROP option to be effective. The DROP option notice shall include an irrevocable notice to the Borough by the police officer that the officer shall resign from employment with the Borough Police Department effective on a specific date, which shall be known as the "resignation date." Once the DROP application has been approved by the Borough, it is therefore irrevocable.
A police officer shall not be required to make any contributions to the fund during his/her DROP period.
After the effective date of the DROP option, the police officer shall no longer earn or accrue additional years of continuous service for pension purposes.
For all retirement fund purposes, continuous service of a police officer participating in the DROP shall remain as it existed on the effective date of commencement of participation in the DROP. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the police pension plan of the Borough. The average monthly compensation of the police officer for pension calculation purposes shall remain as it existed on the effective date of commencement of participation in the DROP. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the pension plan.
The monthly retirement benefits, along with applicable cost-of-living adjustments, that would have been payable had the police officer elected to cease employment and receive a normal retirement benefit shall, upon the police officer commencing participation in DROP, be paid into the separate account established to receive the participating police officer's monthly pension payments. This account shall be designated the "DROP account." An individual officer's DROP account shall be a self-directed investment of his/her DROP account monies. The Borough accepts no responsibility and makes no guarantee for the performance of any investments made by the police officer, nor shall the Borough guarantee or be required to guarantee that a police officer's DROP account generate a specific amount of earnings or income or any earnings or income at all. Any investment losses occurring in a police officer's DROP account shall be solely the responsibility of the police officer, and the Borough assumes no liability or responsibility for the same. All investment and administrative costs shall be charged against the participating police officer's DROP account. Likewise, the Borough's establishment of a DROP shall not be construed to endorse any retirement vehicle, investment manager, nor shall the DROP be construed as providing tax advice or other information to retirees. By entering into the DROP, each participating police officer holds the Borough harmless for any tax, financial, or other consequences of the DROP program or the police officer's participation therein.
After a police officer elects to participate in the DROP program, all other contractual benefits shall continue to accrue, with the exception of those provisions relating to the police pension plan.
The maximum period of participation in the DROP is 36 months. Once the maximum participation has been achieved, the participating police officer must terminate employment and separate from service.
Upon reaching the resignation date set forth in the police officer's DROP agreement or such date as the Borough separates the police officer from employment, the retirement benefits payable to the police officer or the police officer's designated beneficiary, if applicable, shall be paid to the police officer or beneficiary and shall no longer be paid to the police officer's DROP account. Within 30 days following termination of a police officer's employment pursuant to their participating in the DROP program, the balance in the police officer's DROP account shall be paid to the police officer in a single lump-sum payment or at the police officer's option, in any manner permitted by law. By participating in the DROP, each officer agrees to hold the Borough harmless for any tax or other consequences flowing from the participating police officer's disposition of the payout under this section.
A. 
Unless legislation pertaining to DROP, or a court decision (defined as either a trial court decision acceptable to both parties or, if not acceptable, an Appellate Court decision) or a legal determination of the Auditor General shall otherwise require, a DROP participant who becomes permanently disabled during the DROP participation period and leaves service due to a disability shall receive a pension in the amount as calculated as of the date of entry into the DROP and begin to receive directly those pension payments which were being deposited into his/her DROP investment account and shall have access to distributions from his/her individual DROP investment account. Should a DROP participant become disabled and become unable to perform the full duties of a police officer for 90 days, the participant, solely for the purposes of the DROP agreement, shall be presumed to be permanently disabled. The Borough shall have the right to hold a hearing and terminate heart and lung benefits and declare the injured officer permanently disabled if the evidence supports the presumption of permanent disability. If the Borough terminates heart and lung benefits and declares an officer permanently disabled, the officer shall revert to his/her normal age and service pension calculated as of the date of entry into the DROP. The disabled participant will begin to receive directly those pension payments which were being deposited into his/her DROP investment account and shall have access to distributions from his/her individual DROP investment account. Any appeal from the Borough's heart and lung termination and permanent disability determination shall be to AAA arbitration. The presumption of permanent disability shall extend to an AAA appeal of the Borough's decision.
B. 
Should a DROP participant be killed in service during the DROP participation period, the DROP participant shall revert to his/her normal age and service pension calculated as of the date of entry into the DROP and shall be paid all distributions from the DROP investment account. Any and all survivors shall receive all applicable monthly survivors' benefits provided by the pension plan (and not the increased killed-in-service benefit provided by Act 30. However, should there be a legal determination by the Pennsylvania Auditor General, a court decision (defined as either a trial court decision acceptable to both parties or, if not acceptable, an Appellate Court decision), or legislation requiring that the survivors of the DROP participant receive the Act 30 benefit payable by the pension plan, then the survivor of the deceased DROP participant shall receive such benefit pursuant to the requirements of Act 30, and all DROP monies (including all DROP investment returns) shall be paid back to the pension plan.
Notwithstanding a police officer's participation in the DROP plan, a police officer who is convicted or pleads guilty to engaging in criminal misconduct which constitutes a "crime related to public office or public employment," as that phrase is defined in the Pennsylvania's Pension Forfeiture Act, 43 P.S. §§ 1311 to 1314, and interpreted thereunder, shall forfeit his/her right to receive a pension, including any amounts currently deposited in the DROP account. In such a case, the police officer shall only be entitled to receive the contributions, if any, made by the police officer to the fund, with interest.
Any amendments to this article shall be consistent with the provisions covering DROP set forth in any applicable collective bargaining agreement and shall be binding upon all future DROP participants who have balances in their deferred retirement option accounts. The DROP plan may only be amended by a written instrument, not by an oral agreement or past practice.
A police officer's election to participate in the DROP program shall in no way be construed as a limitation on the Borough's right to suspend or to terminate a police officer for just cause or to grant the police officer an honorable discharge based upon a physical or mental inability to perform his/her duties.
In the event that the DROP provision is declared invalid or illegal by a court of competent jurisdiction or through an administrative determination of the office of the Auditor General, the police officers shall not have the right to bargain in accordance with Act 111 over deletion of this benefit.