[HISTORY: Adopted by the Borough Council of the Borough of Wilmerding as indicated in article histories. Amendments noted where applicable.]
Article I Municipal Employees Retirement System
Article II Police Pension Plan
[Adopted 9-18-1967 by Ord. No. 728 (Ch. 1, Part 5, of the 1989 Code)]
The Borough of Wilmerding, having placed all of its employees as far as they are eligible under the federal Social Security Act, hereby elects to join the municipal employees retirement system established by the Municipal Employees Retirement Law, Act of June 4, 1943, P.L. 886, as repealed and replaced by the Pennsylvania Municipal Retirement Law, Act of February 1, 1974, P.L. 34, as amended, and does hereby agree to be bound by all the requirements and provisions of the said law, and the amendments thereto, and to assume all obligations, financial and otherwise, placed upon member municipalities by said municipal employees retirement law, and the amendments thereto.
Membership in the municipal employees retirement system for elected officials shall be optional, and membership therein for employees paid on a per-diem basis shall be optional. The election by elected officials and per-diem employees to join said system must be made within one year from the date of this article, within one year after the official or employee first enters the service of the Borough of Wilmerding. Officers and employees paid wholly on a fee basis shall not be eligible for membership in the system.
Credit for prior service toward the municipal annuity of each original member shall be 10 years of service to the Borough of Wilmerding. The Borough of Wilmerding does hereby assume the liability for payment of 100% of the original members' contributions for 10 years of service toward the original members' annuity for the prior service of each original member.
Payment for the prior service as set forth in § 50-3 hereof shall be made by the Borough of Wilmerding in accordance with said municipal employees retirement law and may be spread over a period of 30 years if the Borough of Wilmerding so elects and with the approval of the Municipal Employees Retirement Board.
The Borough of Wilmerding does hereby elect to extend the provisions of Section 20.1 of the Municipal Employees Retirement Law (Act of June 4, 1943, P.L. 886), added by the Act of August 24, 1963, No. 485, so that contributors to the retirement system shall have the options and enjoy the protections of the provisions set forth in subsections (a) and (b) of Section 20.1 of the Municipal Employees Retirement Law, and Section 20.1 is hereby incorporated and made part hereof by reference thereto.
Editor's Note: The Municipal Employees Retirement Law (1945) and Section 20.1 of that Law cited in this section were subsequently repealed by the 1974 Pennsylvania Municipal Retirement Law.
[Adopted 6-3-1980 by Ord. No. 808 (Ch. 1, Part 4, of the 1989 Code)]
A police pension plan is hereby established pursuant to the Act of May 29, 1956, P.L. 1804, as amended, (53 P.S. § 767 et seq.). Such fund shall be under the direction of the Borough of Wilmerding and shall be applied under such regulations as the Borough of Wilmerding may prescribe.
Each full-time policeman now or hereafter employed by the Borough of Wilmerding shall be eligible to participate and shall be a participant in the Police Pension Plan.
[Amended 10-6-1998 by Ord. No. 961; 12-4-2001 by Ord. No. 977]
Each participant who has been in the employ of Borough of Wilmerding as a police officer for 25 years in the aggregate, and who has attained the age of 55 years, may retire and shall, upon his actual retirement from his employment with the Borough of Wilmerding, be entitled to receive a pension or retirement benefit as are hereinafter provided:
Individuals who were members of an Act 600 pension fund prior to December 21, 1965, have the option to retire at age 60 with 20 years of service.
Also provided that, if an individual is a policeman for six months, enters the military, and returns to the Police Department within six months of leaving the military, he is to be given credit for his time in the military. (However, he must also provide contributions to the fund for that time.)
Also provided that Borough Council, in its discretion, may include overtime and sick time in a policeman's average compensation when calculating benefits, but if included, such pay must also be included when member contributions are calculated.
Pension benefits to which police officers are entitled under this Ordinance shall vest after 12 years of full time service.
"Service" shall include any period of qualified military service as determined under the requirements of Chapter 43 of Title 38, United States Code, provided that the participant returns to employment following such period of qualified military service and the participant makes payment to the plan in an amount equal to the participant contributions that would otherwise have been paid to the plan during such period of qualified military service. The amount of participant contributions shall be based upon an estimate of the compensation that would have been paid to the participant during such period of qualified military service as determined by the average compensation paid to the participant during the 12 months immediately preceding the period of qualified military service. The amount of participant contributions calculated must be paid into the plan before the end of the period that begins the date of reemployment and ends on the earlier of the date that ends the period that has a duration of three times the period of qualified military service or the date that is five years after the date of reemployment.
The contribution rate shall be set in the discretion of Council between 5% and 8% on that portion of monthly compensation that exceeds the amount on which social security taxes are payable.
[Amended 12-4-2001 by Ord. No. 977]
The pension or retirement benefits shall be payable during the balance of the participant's life following actual retirement and after fulfillment of the age and service requirements set forth above. The monthly benefit shall be a sum equal to 1/2 of the monthly average salary of the participant during the last 36 months of employment. However, the Borough is prohibited from paying life and health insurance benefits for retired policemen.
Maximum benefit limitations. Notwithstanding any provision of this plan to the contrary, no benefit provided under this plan attributable to contributions of the employer shall exceed, as an annual amount, the amount specified in Internal Revenue Code § 415(b)(1)(A), as adjusted pursuant to Code § 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this section shall be governed by the following conditions and definitions:
Benefits paid or payable in a form other than a straight life annuity (with no ancillary benefits) or where the employee contributes to the plan or makes rollover contributions shall be adjusted on an actuarially equivalent basis to determine the limitation contained herein.
In the case of a benefit which commences prior to the attainment of age 62 by the participant, the limitation herein shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to this section commencing at age 62; however, the reduction shall not reduce the limitation below $75,000 for a benefit commencing at or after age 55, or if the benefit commences prior to attainment of age 55 the amount which is actuarially equivalent to a benefit of $75,000 commencing at age 55; however, in the case of a qualified participant (a participant with respect to whom a period of at least 15 years of service, including applicable military service, as a full-time employee of a police or fire department is taken into account in determining the amount of benefit); the limitation contained herein shall not reduce the limitation to an amount less than the amount specified pursuant to Internal Revenue Code § 415(b)(2)(G) and such amount shall be adjusted pursuant to Code § 415(d).
In the case of a benefit which commences after attainment of age 65 by the participant, the limitation herein shall be adjusted on an actuarially equivalent basis to the amount determined herein commencing at age 65.
Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this section, provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability benefit pursuant to § 50-13, with fewer than 10 years of participation, the limitation expressed in this Subsection B(4) shall be reduced by 1/10 for each year of participation less than 10, but in no event shall this limitation be less than $1,000.
The limitations expressed herein shall be based upon plan years for calculation purposes, shall be applied to all defined benefit plans maintained by the employer as one defined benefit plan and to all defined contribution plans maintained by the employer as one defined contribution plan, and shall be applied and interpreted consistent with Internal Revenue Code § 415 and regulations thereunder as applicable to government plans in general and this plan in particular.
A service increment may, in the discretion of Borough Council, be provided to all police officers who retire under the terms of this article, which increment shall equal between $1 and $100 per month for each year of completed service beyond 25 years. Service increments shall not exceed a total of $100 per month.
A cost-of-living increment may, in the discretion of Borough Council, be provided to retired officers, and the increment shall be some determined percent, as determined by Council, for every certain percent increase in the Consumer Price Index, provided that such increment shall be provided for in accord with state law and shall not exceed the following limitations imposed by Act 600:
Such increment shall not exceed the percentage increase in "all items index" in the Consumer Price Index from the year in which the police officer last worked;
In no case may the total police pension benefits exceed 75% of the retired officer's salary for computing retirement benefits;
The retired officer's total cost-of-living increase shall not exceed 30%; and
No cost-of-living increase shall be granted which would impair the actuarial soundness of the police pension fund.
[Amended 8-3-1982 by Ord. No. 821; 10-3-1995 by Ord. No. 942]
Retroactive to January 1, 1982, the Borough hereby establishes and provides for a service-connected total and permanent disability pension benefit for all participants in this pension program.
The term "permanent disability" means any service-connected disability which has rendered a police officer, and will render him, incapable of performing the reasonable and customary duties of the job.
On retirement for disability, a police officer shall be entitled to receive an allowance, payable in equal monthly installments, during his lifetime in an amount which shall be arrived at by multiplying the average of the retiree's last 36 months' monthly salary by a percentage, which percentage shall be arrived at by dividing the number of years of service of the retiree by the number 25 (average of last 36 months' salary times a percentage to be determined by dividing the number of years of service by 25). All such disability pension benefits shall be reduced by the amount of any payments for which the police officer shall be eligible under the Act of June 21, 1938, (P.L. 566, No. 284), known as the Pennsylvania Occupation Disease Act.
In the discretion of Borough Council, in the event of the death of a member who was receiving a pension or disability benefit or who has qualified for retirement pension benefits but had not retired, his widow shall be entitled, during her lifetime or so long as she does not remarry, to receive a pension equal to 50% of the pension the member was receiving or would have been receiving had he been retired at the time of his death. If no widow survives, or if she survives and subsequently dies or remarries, then the child or children under the age of 18 years of the deceased eligible participant shall be entitled until such child or children reach the age of 18 years to receive a pension calculated at 50% of the pension to which the member was entitled.
The Borough of Wilmerding shall be the owner of all monies or property paid into the fund or annuities or policies purchased from insurance companies hereunder, and the owner of any insurance and retirement income contracts acquired hereunder, and no participant prior to retirement shall have any right or interest in any portion of said monies or property; provided, however, that each participant shall be entitled in the event of termination or discontinuance of his employment for reasons other than retirement or death to have returned to him the total amount of all such monies paid by him into the pension fund with interest at the rate of 6% per annum. If such termination or discontinuance of employment is due to death, such refund of money shall be paid to the participant's designated beneficiary or, in the absence thereof, to his estate.
All contracts, agreements or funds held for the purpose of providing pensions, annuities or retirement income, or any of them, on any policeman who shall be a participant in the program herein established shall be and hereby are transferred and assigned to the fund herein created. After such transfer, the police pension fund shall assume the liability, if any, of continuing the payment of pensions to members of the police force retired prior to such transfer in accordance with the laws and regulations under which such members were retired.