A. 
Determination of service.
(1) 
Year of vesting service. For purposes of determining the nonforfeitable interest in the participant's accrued benefit, the participant shall receive credit for the aggregate of all time periods commencing with the participant's first day of employment or reemployment and ending on the date a break in service begins, except for periods of service disregarded below. The first day of employment or reemployment is the first day the participant performs an hour of service. Fractional periods of a year will be expressed in terms of days. One year of vesting service shall be credited for each period of 365 days.
(2) 
Break in service rules.
(a) 
Vested participant. A former participant who had a nonforfeitable right to all or a portion of his accrued benefit derived from employer contributions at the time of his termination from service and who did not receive a distribution of his accumulated contributions shall retain credit for all years of vesting service prior to a break in service.
(b) 
Nonvested participant. In the case of a former participant who did not have any nonforfeitable right to his accrued benefit derived from employer contributions at the time of his termination from service or who received a distribution of his accumulated contributions, years of vesting service before a break in service shall not be taken into account in computing service, except as provided in § 91-19.
B. 
Year of benefit service. For the purpose of determining the participant's benefit under the pension benefit formula, the participant shall receive credit for the aggregate of all time periods commencing with the participant's first day of active participation or active reparticipation and ending on the date a break in service begins or the participant is no longer a member of an eligible class of employees, except for periods of service disregarded herein. One year of benefit service shall be credited for each period of 365 days. Any years of service disregarded under § 91-19, Cashout distributions and restoration, shall be disregarded for this purpose.
A. 
Normal retirement date.
(1) 
The normal retirement date of each participant shall be the day on which he satisfies both of the following requirements:
(a) 
He attains age 50; and
(b) 
He completes 25 years of vesting service.
(2) 
A participant's right to his normal retirement benefit shall be 100% vested and nonforfeitable upon attainment of the normal retirement date, notwithstanding the plan's vesting schedule. If the employer enforces a mandatory retirement age, the normal retirement age shall be the lesser of the mandatory age or the age specified herein.
(3) 
Retired participants shall be subject to service, from time to time, as a police reserve, in cases of riot, tumult, or preservation of public peace until unfitted for such service, when they may be finally discharged by reason of age or disability.
B. 
Normal benefits and payments.
(1) 
Normal retirement benefit. The normal retirement benefit of each participant shall not be less than the largest periodic benefit that would have been payable to the participant upon separation from service at or prior to his normal retirement date under the plan, exclusive of social security supplements, premiums on disability or term insurance, and the value of disability benefits not in excess of the normal retirement benefit, but taking into account any decrease in average monthly compensation and any offset as of the participant's social security retirement age for the participant's social security old-age insurance benefit.
(2) 
Normal form of payment. The normal form of retirement benefit for each participant shall be a level monthly pension payable during the participant's lifetime, with payments commencing on the first day of the month coincident with or next following his normal retirement date, and ceasing upon the participant's death.
C. 
Pension benefit formula. Each eligible participant shall receive a monthly benefit payable at his normal retirement date equal to 50% of average monthly compensation.
D. 
Service increment benefit. Each eligible participant shall receive $100 per month for each completed year of benefit service in excess of 25. The total service increment benefit shall not exceed $100 per month. This benefit shall be payable in addition to the monthly benefit payable under the pension benefit formula, provided the participant is eligible.
E. 
IRC § 415 limitations and conditions.
(1) 
Notwithstanding the benefits set forth in this article, the annual benefit otherwise payable to a participant at any time shall be limited or modified so the extent required to comply with the provisions of § 91-23 (Limitations on benefits under IRC § 415, and related employer provisions under IRC § 414).
(2) 
In any limitation year commencing before January 1, 2000, in which the accrued benefit of one or more participants would be in excess of the limitations on annual benefits under IRC § 415, the annual benefits under any other plan that the employer also sponsors will be reduced to the extent necessary to comply with such limitations first. If any further reduction is required, the annual benefits under this plan will then be reduced with respect to such participants.
(3) 
If any reduction is required in any limitation year commencing on or after January 1, 2000, the annual benefits under any other defined benefit plan that the employer sponsors will be reduced to the extent necessary to comply with such limitations first. If any further reduction is required, the annual benefits under this plan will then be reduced with respect to such participants.
F. 
Adjustments for former employees.
(1) 
Accruals under the current benefit formula shall be increased by the following cost-of-living adjustment. The benefit adjustment shall occur:
(a) 
Initially as of the first accounting date of the plan that is at least 12 months after the later of the termination of the participant's employment or his retirement date; and
(b) 
Thereafter as of each subsequent, accounting date. The annual adjustment shall not cause the benefit payable to exceed the maximum permissible defined benefit dollar limit as described in § 91-23E(5) for the calendar year.
(2) 
The adjusted retirement benefit payable each month for a plan year shall equal the monthly retirement benefit multiplied by a fraction:
(a) 
The numerator of which is the monthly consumer price index (all urban consumers) issued by the U.S. Bureau of Labor Statistics for the December 31 coincident with the plan accounting date on which the adjustment is effective; and
(b) 
The denominator of which is the index for the immediately prior December 31.
(3) 
Notwithstanding the above, the total cost-of-living adjustment shall not exceed the percentage increase in the consumer price index from the plan year in which the former participant last performed service as a full-time employee. No adjustment shall result in a total retirement benefit in excess of 75% of the former participant's average monthly compensation. Further, the total cost-of-living adjustment to a participant shall not exceed 30%.
A. 
A participant's accrued benefit at any time equals:
(1) 
The product of the normal retirement benefit determined in accordance with § 91-7C multiplied by a fraction, the numerator of which is the number of years of benefit service at such date, and the denominator of which is the number of years of benefit service the participant would have as of the year containing his normal retirement date if he continues to work until such date; plus
(2) 
Any service increment benefit.
B. 
If a participant begins receiving benefits at a time other than his normal retirement date, the participant's benefit will be determined in accordance with § 91-9 if benefits commence after his normal retirement date and in accordance with § 91-10 if benefits commence before his normal retirement date.
A. 
Nonforfeitability. If a participant remains employed after his normal retirement date, his benefits shall remain 100% vested and nonforfeitable. Payment of benefits shall not commence until his actual retirement date.
B. 
Suspension of benefits until payment. Payment of normal retirement benefits shall be suspended for each calendar month during which the participant remains employed after his normal retirement date. The amount of benefits that are paid later than his normal retirement date shall be computed under the pension benefit formula, and shall be increased by any service increment benefit. The participant's pension benefit shall be determined on the basis of the participant's years of service for benefit accrual completed before and during the period of suspension; and the participant's compensation with the employer during the period of suspension shall be included in any relevant determination of average monthly compensation.
No early retirement benefit is provided under this plan.
A. 
Disability benefits. Any member of the police force who suffers a permanent injury incurred in service shall receive a pension calculated at a rate of no less than 50% of the member's salary at the time the disability was incurred, provided that any member who receives benefits for the same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall have his or her disability benefit offset or reduced by the amount of such benefit.
[Amended 8-12-2013 by Ord. No. 658, approved 8-12-2013]
B. 
Disability benefit payments shall cease upon death or upon recovery from disability prior to the date on which the disabled participant would have reached his normal retirement date if he had continued as an active participant under the plan. If disability benefits cease due to death before the participant's attainment of his normal retirement date, the death benefit payable shall be the survivor benefit (if any) described in § 91-16B, without any reduction with respect to disability payments that have been made. For the purpose of determining whether there has been a recovery, the plan administrator may require evidence of continued disability. Such evidence may include examination by a doctor selected by the plan administrator. The participant's refusal to submit to medical examinations shall render him ineligible for disability benefits.
C. 
If disability continues until attainment of normal retirement date, the disability benefit shall continue until death.
D. 
"Disability" means inability to engage in any substantial gainful activity for which the participant is reasonably fitted through training, education, and experience by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months and that is the result of the performance of police services for the employer. The permanence and degree of the impairment shall be supported by medical evidence. The plan administrator shall determine whether the participant is disabled as defined hereunder after consultation with a physician chosen by the plan administrator. The physician shall examine the participant at the participant's place of residence or at a place mutually agreed upon. In the administration of this section, all employees shall be treated in a uniform manner in similar circumstances.
A. 
Commencement of benefits. Subject to the limitations of this plan, the benefit distribution shall commence as soon as administratively feasible after the later of the participant's termination of employment or his satisfaction of the normal retirement date requirements, provided that he files a written application for the retirement benefit.
B. 
Form of payment. A participant shall receive distribution of his accrued benefit as a monthly pension payable as long as the participant lives.
C. 
General payment provisions.
(1) 
If any person entitled to receive benefits hereunder is physically or mentally incapable of receiving or acknowledging receipt thereof, and if a legal representative has been appointed for him, the plan administrator may direct the benefit payment to be made to such legal representative.
(2) 
At the direction of the plan administrator, the trustee may make pension payments directly from the fund or may take such steps as may be required to purchase an annuity contract from an insurance company for the participant, provided that the annuity contract purchased on behalf of such participant shall be sufficient to provide the benefits to which the participant is entitled. The ownership of the annuity contract shall remain with the trustee, unless the plan administrator determines otherwise. Any annuity contract distributed herefrom shall be nontransferable. The application and directions to the insurance company for such annuity contract shall be made by the plan administrator. The terms of any such annuity contract purchased by the plan shall comply with the requirements of this plan. Any dividend, refund or recovery on an annuity contract shall be used to reduce subsequent employer contributions.
(3) 
The benefits due any participant on account of his most recent period of employment shall not duplicate any benefits due the same participant under this plan on account of previous employment with the employer.
Under this plan, normal retirement benefits in pay status shall be suspended if a participant returns to employment; however, there shall be no suspension if the participant is required to perform services for the employer from time to time as a police reserve in compliance with 53 P.S. § 769. If the participant accrues an additional benefit, the plan shall offset the actuarial value at the distributions made to the participant by the last day of the preceding plan year against the benefit accrual for the current plan year.
A. 
Nothing contained in this plan prevents the trustee, in accordance with the direction of the plan administrator, from complying with the provisions of an acceptable domestic relations order that creates or recognizes the existence of an alternate payee's right to, or assigns to an alternate payee the right to receive all or a portion of the benefits payable with respect to a participant under the plan.
B. 
A distribution under an acceptable domestic relations order will not be made to an alternate payee until the participant is entitled to a distribution under this plan and commences such distribution. Nothing in this section permits the alternate payee to receive a form of payment not otherwise permitted under the plan.
C. 
The plan administrator shall establish reasonable procedures to determine the acceptability of a domestic relations order in accordance with IRC § 414(p). Upon receiving a domestic relations order, the plan administrator promptly will notify the participant and any alternate payee named in the order, in writing, of the receipt of the order and the plan's procedures for determining the acceptability of the order. Within a reasonable period of time after receiving the domestic relations order, the plan administrator shall determine the acceptability of the order and shall notify the participant and each alternate payee, in writing, of its determination. The plan administrator shall provide notice under this subsection by mailing to the individual's address specified in the domestic relations order.
D. 
If any portion of the participant's nonforfeitable accrued benefit is payable during the period the plan administrator is making its determination of the acceptability of the domestic relations order, the plan administrator shall make a separate accounting of the amounts payable. If the plan administrator determines the order is an acceptable domestic relations order within 18 months of the date amounts first are payable following receipt of the order, it shall direct the trustee to distribute the payable amounts in accordance with the order. If the plan administrator does not make its determination of the acceptability of the order within the eighteen-month determination period, it shall direct the trustee to distribute the payable amounts in the manner the plan would distribute if the order did not exist and will apply the order prospectively if it later determines the order is an acceptable domestic relations order.