[Adopted 2-25-1980 by Ord. No. 1265 (Ch. 1, Part 8D, of the
1986 Code of Ordinances)]
[1]
Editor's Note: Resolution of 7-9-1981, establishing credit
for military service, and Original Section 5 of Ord. 1265, providing
for transfer of funds to the City, were repealed 4-24-1986 by Ord.
No. 1356.
There is hereby established a firemen's pension fund known as
the "City of Washington Firemen's Pension Fund."
[Amended 4-24-1986 by Ord. No. 1356]
There is created a Board of Managers of said fund consisting
of the Mayor, Director of Accounts and Finances, Director of Public
Safety, City Controller, two members of the Fire Department, one member
to be chosen by the members of the Fire Department as Secretary to
the Board of Managers, and the Fire Chief as an ex officio member.
The terms and manner of election to the Board shall be in accordance
with 53 P.S. § 39320.[1] The Chairman shall be the head of the department being
in charge of the Fire Department.
[1]
Editor's Note: Former 53 P.S. § 39320 was repealed
by 11-24-2015, P.L. 242, No. 67, § 2(2), effective 1-25-2016.
See now 11 Pa.C.S.A. § 14320.
The Board of Managers to the Firemen's Pension Fund shall have
control of the management of all funds belonging to or designated
by law as part of the Firemen's Pension Fund and of the administration
of such funds, as provided by statute.
[Amended 4-24-1986 by Ord. No. 1356]
There shall be an equal and proportionate monthly charge against
each member of the Fire Department, which shall initially be in the
amount of 5%; 1% of such contribution shall be for survivors' pension,
said charge to be effective as of January 1, 1980. Said charge shall
be subject to any amendments or changes made by the Board of Managers.
[Added 4-24-1986 by Ord. No. 1356]
A.
Name. City of Washington, Firemen's Pension Fund.
B.
Membership.
(1)
All regularly appointed members of the paid Fire Department of the
City of Washington, Pennsylvania, except as hereinafter set forth,
shall be eligible for active membership in the Firemen's Pension Fund,
upon meeting the requirements of the Civil Service Board.
(2)
Any person holding provisional, temporary or emergency appointment
shall not be eligible to membership or any benefits of the fund.
C.
Investments. The funds of the Firemen's Pension Fund shall be invested
by the Board of Managers in the name and for the use of the Firemen's
Pension Fund in registered government and municipal securities, in
loans secured by first mortgage. Interest rate on first mortgage repayment
shall be by vote of the Board of Managers, or the funds may be invested
in such other securities as the Board of Managers may approve, and
all investments and loans must be reported at the next stated meeting
of the Board of Managers.
D.
Management; annuity contracts.
(1)
Except as hereinafter provided, cities shall provide annuity contracts
or establish, by ordinance, a firemen's pension fund to be maintained
in part or by an equal and proportionate monthly charge against each
member of the Fire Department, which shall not exceed annually 4%
of the pay of such member, and an additional amount not to exceed
1% if deemed necessary by the Council to provide sufficient funds
for payments to widows of members retired on pension or killed or
who die in the service.
(2)
All pension funds established under the provisions of this section
shall be under the direction and control of a Board of Managers consisting
of the Mayor, the Director of Accounts and Finance, the Director of
the department having charge of the Fire Department, or in cities
where the Mayor is also the Director of the department having charge
of the Fire Department, then the Director of Public Safety, the City
Controller and the Chief of the Bureau of Fire, ex officio, and two
members of the Fire Department to be chosen by the members of the
Fire Department. Of the first managers so chosen by the members of
the Fire Department, one shall be chosen for a term of two years and
one for a term of four years. Biennially thereafter, one manager shall
be chosen for a term of four years to take the place of the one whose
term expires. In case of vacancy among the managers chosen by the
Fire Department, a successor shall be chosen for the unexpired term.
(3)
Duties of the Board of Managers. The fund shall be applied, under
such regulations as the Board of Managers shall prescribe, for the
benefit of such members of the Fire Department as shall receive honorable
discharge therefrom by reason of service or age or disability, widows
of retired members and the families of such as may be killed or who
die in the service. All such pensions as shall be allowed to those
who are retired by reason of disabilities or of the service or age
shall be in conformity with a uniform scale, together with service
increments as hereinafter provided. Benefits allowed from such fund
to families of such as are killed or who die in service shall take
into consideration the member's widow and his minor children under
18 years of age, if any survive.
E.
Retirement; final discharge.
(1)
Such regulations shall prescribe a minimum period of continuous service,
not less than 20 years, and a minimum age of 50 years, after which
members of the Department may retire on pension from active duty,
and such members as are retired shall be subject to service, from
time to time, as a firemen's reserve in cases of emergency until unfitted
for such service, when they may be finally discharged by reason of
age or disability. Any firefighter currently a member of the Fire
Department, and hired before January 1, 1980, may retire after 20
years of active duty and be eligible for a pension, notwithstanding
the fact that he may not have attained his 50th birthday. However,
any member hired after January 1, 1980, shall be eligible for pension
only after 20 years of active duty and after attainment of age 50.
(2)
Spouse's pension. Payments to surviving spouses of members retired
on pension or killed in the service on or after January 1, 1960, or
who died in the service on or after January 1, 1968, shall be the
amount payable to the member or which would have been payable had
he been retired at the time of his death. (53 P.S. § 39322[1])
[1]
Editor's Note: Former 53 P.S. § 39322, was repealed
by 11-24-2015, P.L. 242, No. 67, § 2(2), effective 1-25-2016.
See now 11 Pa.C.S.A. § 14322.
F.
Pensions.
(1)
Regular pension. Payments of pensions shall not be a charge on any fund in the treasury of the City or under its control save the Firemen's Pension Fund herein provided for. The basis of the pension of a member shall be determined by the monthly salary of the member at the date of retirement or the highest average annual salary which he received during any five years of service preceding retirement, whichever is the higher, by reason of service, and except as to service increments provided for in Subsection F(2) of this section, shall be 1/2 the annual salary of such member at the time of retirement computed at such monthly or average annual rate, whichever is the higher.
(2)
Disability. In the case of permanent disability for a fireman incurred
in service, the amount of the pension shall be 50% of his annual wage
or the highest average salary of the last five years.
(3)
Survivors. The amount paid to families of members killed or who die
in service shall be 50% of his annual wage or the highest average
salary of the last five years.
(4)
Retirement for physical disability.
(a)
"Total disability" shall be a state of physical infirmity such
that the member is unable to perform any occupation or work for any
compensation whatsoever.
(b)
Honorable discharge. No application for disability pension as
herein defined shall be received or considered regardless of the personal
knowledge of the disability of any member of this fund or the City
administration, unless it shall first affirmatively appear that the
applicant has received an honorable discharge from the City for such
disability.
(c)
Physical examination. The applicant shall present himself to
three examining physicians, as required by the Board. The said physicians
are to be chosen and paid by the fund. The said physicians shall then
certify to the Board as to the disability as defined herein of the
applicant.
G.
Causes for forfeiture of rights in fund; other employments. Whenever
any person shall become entitled to receive a pension from the Firemen's
Pension Fund, and shall have been admitted to participate therein,
he shall not thereafter be deprived of his right to participation
therein upon the basis which he first became entitled.
H.
Payments to firemen's pension funds by City. There shall be paid
to the firemen's pension funds by every City annually the sum of money
not less than 1/2% nor more than 3% of all City taxes levied by the
City, other than taxes levied to pay interest on or extinguish the
debt of the City or any part thereof. Council may exceed the limitations
imposed by this section if an additional amount is deemed necessary
to provide sufficient funds for payments to widows of members retired
on pension or killed or who die in the service; provided, however,
that the City shall annually pay into said fund not less than 1/2%
of all City taxes levied by the City, other than taxes levied to pay
interest on or extinguish the debt of the City or any part thereof.
(Amended July 20, 1968, Act 204; § 4324 of the Third Class
City Code.)
I.
Trusts for benefit of Firemen's Pension Fund. The City may take by
gift, grant, devise or bequest any money or property, real, personal,
or mixed, in trust for the benefit of such pension fund, and the care,
management, investment and disposal of such trust funds or property
shall be vested in such officer or officers of such City, for the
time being, as the said City may designate and be directly by ordinance,
and the said trust funds shall be governed thereby, subject to such
directions not inconsistent therewith as the donors of such funds
and property may prescribe.
J.
Repayment before retirement. If for any cause any member of the Fire
Department contributing to the pension fund shall cease to be a member
of the Fire Department before he becomes entitled to a pension, the
total amount of the contributions paid into the pension fund by such
member shall be refunded to him in full without interest. If any such
member shall have returned to him the amount contributed and shall
afterward again become a member of the Fire Department, he shall not
be entitled to the pension designated until 20 years after his reemployment
unless he shall return to the pension fund the amount withdrawn, in
which event the period of 20 years shall be computed from the time
the member first became a member of the Fire Department, excluding
therefrom any period of time during which the member was not employed
by the Fire Department. In the event of the death of a member of the
Fire Department not in the line of service before the member becomes
entitled to the pension aforesaid and such member is not survived
by a widow or family entitled to payments as hereinbefore provided,
the total amount of contributions paid into the pension fund by the
member shall be paid over to his estate. (Amended July 20, 1968, Act
204.)
K.
Meetings of the Board of Managers shall be held on a regular basis
of not more than three-month intervals, unless a special meeting is
required. Special meetings shall be held at the call of any two members
of the Board of Managers.
[Added 4-24-1986 by Ord. No. 1356]
A.
Proposed amendments to this article shall be submitted in writing
to the Secretary.
B.
The Secretary shall, immediately upon receipt of the proposed amendment, provide notice of the text of the same to the Board of Managers in the same manner as is required in § 49-51K of this article.
C.
A proposed amendment to this article shall first be presented to
the Firemen's Pension Fund members for their consideration and recommendation
to the Board of Managers. The notice of a meeting to consider the
proposals will be in writing to all pension board members and considered
at the next regular meeting.
D.
The Board shall consider the proposed amendment at its next meeting,
whether regular or special, and if approved by vote of 2/3 of the
members of the Board present and voting, shall then become effective
upon passage of the amendment to the Firemen's Pension Fund Ordinance
by City Council.
[Added 10-8-1987 by Ord. No. 1380]
A.
ACT
CODE
COMPENSATION
COUNCIL
DISABILITY
EFFECTIVE DATE
EMPLOYEE
EMPLOYER
FINAL MONTHLY AVERAGE SALARY
MEMBER
PENSION FUND
PLAN
PLAN YEAR
YEAR OF CONTINUOUS SERVICE
Definitions. As used in this article, the following terms shall have
the meanings indicated:
The Municipal Pension Plan Funding Standard and Recovery
Act, enacted as P.L. 1005, (Act 205 of 1984), as amended.[1]
The Third Class City Code (enacted as P.L. 932), as amended.[2]
The total salary which appears on Form W-2 for federal income
tax purposes.
The Council of the City of Washington.
A condition of total and permanent physical or mental incapability
due to which a member is unable to perform any customary duties of
his employment with the employer.
The date upon which this section is first effective, that
is January 1, 1988.
Any regularly appointed paid fireman employed by the employer
as a member of the employee's fire department. Any person holding
provisional, temporary or emergency appointment shall not be eligible
for coverage hereunder.
The City of Washington.
The rate of monthly pay of the member as of the date of retirement
or the highest average annual salary which the member received during
any five years of continuous service preceding his date of retirement,
whichever is the greater amount.
An employee who has met the eligibility requirements of Subsection C and who has not for any reason ceased his participation hereunder.
The Firemen's Pension Fund administered under the terms of this section and the rules and regulations of the Board of Trustees as set forth in Subsection B, and which shall include all money, property, investments, policies and contracts that are a part of the plan.
The pension plan set forth herein and designated as the "City
of Washington New Firemen's Pension Plan."
The twelve-month period beginning on January 1 and ending
on the subsequent December 31 of each year.
Refers to a twelve-month period of continuous employment
during which a member is employed with the employer and paid out of
the City treasury.
B.
Administration and transfer of assets.
(1)
The pension fund shall be aggregated with other pension funds maintained
by the employer to create a single pension trust fund, which shall
thereafter serve as the funding mechanism for all pension plans connected
with the aggregation. Each pension plan subject to the aggregation
shall have an undivided participation in the assets of the combined
pension trust fund. For accounting purposes, the value of the participation
by each plan shall be calculated annually, in accordance with the
requirements of Section 607 of the Act.
(2)
The aggregate pension trust fund shall be managed by a board of trustees
which shall include at least one representative of the active membership
of each plan included in the fund, who shall be elected by the active
membership of said plan. The remaining members of such board shall
be drawn from the managing boards of the associated plan.
(3)
The employer may direct the Board of Trustees to pay expenses from
the pension fund which are attributable to the preparation of any
actuarial valuation report or experience investigation required by
the Act or any other expense which is permissible under the terms
of the Act and which is directly associated with administering the
plan. Such permissible expenses shall include but are not limited
to investment costs associated with obtaining authorized investments
and investment management fees, accounting expenses, premiums for
insurance coverage on fund assets, reasonable and customary counsel
fees incurred for advice or to defend the pension fund and legitimate
travel and education expenses incurred by plan officials which are
necessary, reasonable and benefit the pension fund.
(4)
It shall be the duty of the Board of Trustees to receive, retain
and distribute pension fund contributions and pension payments to
the members who are entitled to receive such contributions and payments.
Any contributions or pension payments to a member shall not be made
from any other fund maintained or controlled by the City, except the
pension trust fund.
(5)
The employer may take by gift, grant, devise or bequest any money
or property, real, personal or mixed, in trust for the benefit of
the pension fund. The care, management, investment and disposal of
such funds or property shall be vested in the Board of Trustees, and
such care, management and disposal shall likewise be directed by ordinance,
and the said pension funds shall be governed thereby, subject to such
directions not inconsistent therewith as the donors of such funds
and property may prescribe.
(6)
Legal title to assets in the aggregated pension trust fund shall
be in the municipality as trustee, or its nominees as trustees, for
any person having a beneficial interest in a particular pension plan
that is associated with the pension trust fund.
C.
Participation. Any person who becomes an employee of the employer
on or after January 1, 1988, shall be eligible to become a member
of the plan and to participate hereunder only if such employee shall
have attained age 18 on or after the effective date; provided, however,
that in no case shall an employee become a participant hereunder if
his date of employment occurs after his attainment of age 35.
D.
Contributions. As of the effective date of this ordinance, each member
shall contribute 5% of his compensation each month to the pension
fund. In addition to such contributions, the member shall contribute
$1 per month as a service increment contribution, but in no case,
however, shall contributions that are attributable to service increments
be required after the date when a member has attained age 65.
E.
Benefits.
(1)
Each member shall be entitled to receive a pension benefit provided
he has completed at least 20 years of continuous service with the
employer and has attained age 55; provided, however, that payment
of pension benefits upon retirement shall be conditioned upon a member's
being subject to service from time to time as a firemen's reserve
until unfitted for such service, at which time such member shall be
finally discharged by reason of age or disability.
(2)
A member entitled to a pension benefit shall receive during his lifetime
a monthly retirement income which shall be equal to 1/2 of his final
monthly average salary.
(3)
Each member who becomes entitled to a pension benefit shall also become entitled to payment of a service increment benefit which shall be equal to the number of whole years in excess of 20 years of continuous service (including therein any credit for military service as provided in Subsection D, Contributions), multiplied by 1/40 of the member's pension benefit which he is entitled to receive. No service increment benefit shall be paid to a member which is in excess of $100 per month, nor shall such increment reflect any employment after the member has reached the age of 65.
(4)
The pension payments herein provided for shall be payable only to
the member and his survivors and shall not be subject to attachment,
execution, levy, garnishment or other legal process, nor shall they
be subject to assignment or transfer.
(5)
In the event a member who is active or a member who is eligible to
receive or is receiving pension benefits shall die or is killed in
the line of duty, the spouse of the deceased member or, if no spouse
survives or if the spouse survives and subsequently dies or remarries,
then the child or children under the age of 18 years of the deceased
member shall, during the spouse's lifetime or so long as the spouse
does not remarry in the case of the spouse or until reaching the age
of 18 in the case of a child or children, receive a monthly income
which shall be equal to 50% of the amount which the member was receiving
or would have received prior to his date of death.
(6)
If any member of the employer incurs disability in the line of duty,
he shall be entitled to receive a monthly disability pension benefit
which shall be equal to his pension determined as of his date of disability.
(7)
If a member who is receiving a disability pension benefit dies, an
amount which shall be equal to 50% of such member's benefit payments
shall be continued to the member's spouse or, if no spouse survives
or if the spouse survives and subsequently dies or remarries, then
the child or children under the age of 18 years of the deceased member.
(8)
Whenever a member shall become entitled to receive a pension benefit
from the pension fund, he shall not be deprived of his benefits except
for one or more of the following causes: conviction of felony or misdemeanor;
becoming a habitual drunkard or failing to comply with some general
regulation relating to the management of the pension fund if such
regulation provides that failure to comply shall terminate the right
to participate in the pension fund. Any termination of a pension benefit
shall be only after such due notice and hearing as shall be prescribed
by regulation of the Council.
F.
Termination of employment and refund of contributions.
(1)
If a member who makes contributions to the pension fund shall cease
to be a member of the Fire Department before he becomes entitled to
receive a pension benefit, the total amount of his contributions paid
to the pension fund shall be refunded in full, without interest.
(2)
If a member terminates his employment and is later reemployed by
the employer as a member of its fire department, he shall receive
credit for the years of continuous service earned prior to his date
of termination only if he repays the amount he received at the time
he terminated employment with the employer.
(3)
A member's service increment contributions shall be refunded, without
interest, if he terminates or retires prior to the date when he is
entitled to a service increment benefit.
(4)
If a member dies prior to his eligibility to receive a pension benefit from the pension fund, the member's surviving spouse or children shall receive any death benefits payable to survivors as provided under Subsection E; if such member is not survived by a spouse or children, however, then the total contribution paid into the pension fund by the member shall be paid to his estate.
G.
Valuation requirements.
(1)
An actuary shall perform an actuarial valuation at least biennially
unless the employer is applying or has applied for supplemental state
assistance pursuant to Section 603 of the Act, whereupon actuarial
valuation reports shall be made annually. Such actuarial valuation
shall be prepared and certified by an "approved actuary," as such
term is defined in the Act.[3]
[3]
Editor's Note: See 53 P.S. § 895.102.
(2)
Such actuarial reports shall be prepared and filed under the supervision
of the chief administrative officer.
(3)
The chief administrative officer of the pension plan shall determine
the financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum obligation of the
employer with respect to funding the plan for any given plan year.
The chief administrative officer shall submit the financial requirements
of the plan and the minimum obligation of the employer to the Council
annually and shall certify the accuracy of such calculations and their
conformance with the Act.
(4)
The employer shall annually contribute to the pension fund such amounts
as are recommended by the plan's actuary as being required to meet
the funding standards of the Act and to provide for the benefits under
the plan.
H.
Benefit plan modifications. Prior to the adoption of any benefit
plan modification by the employer, the chief administrative officer
of the plan shall provide to the Council a cost estimate of the proposed
benefit plan modification. Such estimate shall disclose to the Council
the impact of the proposed benefit plan modification on the future
financial requirements of the plan and the future minimum obligation
of the employer with respect to the plan.
I.
Compliance with the Municipal Pension Plan Funding Standard and Recovery
Act of 1984. This section is hereby created and established under
the provisions of the Act governing severely distressed municipalities
and is intended to comply with the requirements therein governing
the recovery programs of such municipalities.
J.
Effective date. This section will become effective January 1, 1988.
