Township of Upper Pottsgrove, PA
Montgomery County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Board of Commissioners of the Township of Upper Pottsgrove as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Social security program — See Ch. 72.
[Adopted 1-22-2008 by Ord. No. 415[1]]
[1]
Editor's Note: This ordinance superseded former Art. I, Police Pension Plan, adopted 11-27-1989 by Ord. No. 207 (Ch. 1, Part 2, of the 1993 Code).
For the purposes of this article, the following definitions shall apply:
AGE
Age at nearest birthday.
ACCRUED BENEFIT
The member's normal retirement benefit multiplied by the ratio of A over B where:
A
=
The years and months of service completed by the member as of the date of his termination of employment.
B
=
The years and months of service the member would have completed if he had continued to participate until his normal retirement date.
AVERAGE MONTHLY COMPENSATION
The average of a member's monthly compensation earned over the last 36 months of employment.
COMPENSATION
The total compensation paid to an employee for services rendered as a police officer, excluding buybacks and severance pay.
EMPLOYER
Upper Pottsgrove Township, Montgomery County, Commonwealth of Pennsylvania.
FUND
The Upper Pottsgrove Township Police Pension Plan Trust Fund.
MEMBER
All police employees who meet the requirements set forth in § 43-4 of this article. The masculine pronoun will include the feminine.
MUNICIPALITY
Upper Pottsgrove Township, Montgomery County, Commonwealth of Pennsylvania.
PLAN
The Upper Pottsgrove Township Police Pension Plan. The plan's fiscal year is the calendar year.
TOWNSHIP
Upper Pottsgrove Township, Montgomery County, Commonwealth of Pennsylvania.
TRUSTEE
The Upper Pottsgrove Township Board of Commissioners or its designee.
This plan is to be funded and maintained by any of the following methods, or a combination of each:
A. 
General fund: contributions from the general fund of the Township which may be required after appropriate approval of the Township Commissioners.
B. 
Member contributions: All members shall make contributions, which shall be 5% of their total compensation. The Board of Commissioners may, on an annual basis, by ordinance or resolution, reduce or eliminate contributions into the plan by members. The Township may, but need not, have an actuarial study performed prior to reducing or eliminating member contributions into the plan.
C. 
State aid received pursuant to the Municipal Pension Plan Funding Standard and Recovery Act (Act 205).[1]
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
D. 
Gifts, grants, devises or bequests: Sums received by the Township may, to the extent authorized by law, be contributed to such fund so long as prior approval of the Township Board of Commissioners is obtained.
A. 
Pension committee.
(1) 
The general administration and management of the plan shall be under the direction of a Pension Committee, as appointed by the Township Board of Commissioners. The Committee shall consist of two duly appointed Township representatives and one pension plan member.
(2) 
The Pension Committee shall have all powers necessary to enable it properly to carry out its duties, including but not limited to the power to construe the provisions of the fund, to direct the investment advisor, to determine all questions relating to eligibility of members and to authorize all disbursements for benefits to members. The decisions of the Pension Committee on all matters within the scope of its authority shall be final, subject to approval of the Board of Commissioners.
B. 
Trustee.
(1) 
The fund shall be under the direction of a trustee, designated by resolution by the Township Board of Commissioners. The trustee shall have full responsibility for administration of the program established hereunder and shall hold, invest, reinvest and distribute all funds and other property received pursuant hereto in trust for the purposes of this article. The trustee may receive, at any time, gifts, grants, devises, or bequests to the Pension Fund of any money or property, real, personal or mixed, to be held by it in trust for the benefit of this fund and in accordance with the provisions hereof. The trustee shall be subject to such rules and regulations as may from time to time be adopted by the governing body of this Township by ordinance or by resolution.
(2) 
The trustee shall have full power and authority by a majority action, either directly or through its designated representatives, to do all acts, to execute, acknowledge and deliver all instruments, and to exercise for the sole benefit of the plan members any and all powers and discretions necessary to implement and effectuate the purposes of this article, including, for purposes of illustration, but not limited to any of the following:
(a) 
To hold, invest and reinvest all funds received pursuant to this article and such legal investments as may be authorized as legal investments under the laws of the Commonwealth of Pennsylvania.
(b) 
To retain any property which may at any time become an asset of the fund, as long as said trustee may deem it advisable.
(c) 
To make distribution of the monies in the fund, in accordance with the terms of this article.
(3) 
The expense of administering this pension fund, including compensation of any actuary, any custodian of the fund, and any other charges or expenses related thereto, exclusive of the payment of pensions, may be paid by the Township or by the pension fund, as determined by the Township Board of Commissioners.
Each full-time police employee (regularly working a minimum of 35 hours per week during the calendar year) employed by the employer is eligible to participate and shall be a member in the Upper Pottsgrove Township Police Pension Plan and Fund as of his/her date of hire. For the purpose of this § 43-4, "service" shall mean the period of an employee's total employment by the employer. The following types of absence shall not break continuity, and the time elapsed shall be included in computing the aggregate length of service:
A. 
A temporary leave of absence or layoff which shall, if not otherwise stated, expire in six months, unless sooner renewed.
B. 
An absence during which regular remuneration is paid.
C. 
A regularly appointed member of the police force who has been employed as such for at least six months, and who enters active military service for the United States, must receive retirement credit for the period of active military service. To be eligible, the member must return to employment within six months of separation from such military service and be ineligible to receive military retirement pay as a result of that service.
The benefits from the fund shall be payable to members who have served in the Township in a full-time capacity and who attain their normal retirement date. "Normal retirement date" shall mean the first of the month coincident with or next following the attainment of the 50th birthday and the completion of 25 years of total service. Benefits commence on the first day of the month coincident with or next following actual retirement.
[Amended 9-19-2011 by Ord. No. 452]
The normal retirement benefit shall equal 50% of the average monthly compensation, plus a cost-of-living adjustment (COLA). The annual COLA increase equals the lesser of 3% or the consumer price index for the previous calendar year, with an overall benefit limit equal to 75% of the average monthly compensation or 130% of the original benefit, whichever is less. To be eligible for the COLA, a retiree must have been receiving retirement benefits for at least one complete year. The normal form of payment is a life annuity.
In the event of any member's service-related total and permanent disability, the member shall become eligible for a monthly disability pension as set forth below:
A. 
"Total and permanent disability" shall mean a service-related physical or mental condition of a member, incurred in the course and scope of employment as a Township police officer, which precludes him from engaging in his normal duties as a police officer.
B. 
The monthly total and permanent disability pension benefit shall be in conformity with a uniform scale and shall be equal to 50% of the member's salary on the date the disability occurred, reduced by the amount of Social Security disability benefits received for the same illness or injury. Disability pension benefits shall commence on the first of the month coincident with or next following the date of disability, as determined by a qualified physician selected by the employer. Such determination shall be final and conclusive. The employer shall have the right to require the disabled member to undergo medical examination at monthly intervals. Disability benefit payments shall cease upon recovery from disability as determined by the employer's physician. Disability benefit payments shall also cease upon death.
Any member who has completed 12 years of service in this plan shall become 100% vested in his accrued benefit. Upon termination of employment with the employer, a vested member shall be eligible to receive his accrued benefit starting as a monthly annuity at his normal retirement date under this article. However, any member who separates from service prior to his normal retirement date for any reason other than death or total and permanent disability shall receive a complete refund of the total amount of his member contributions with interest, if such refund is greater in value than the actuarial equivalent of the accrued benefit.
A. 
Survivor benefits. In the event of the death of a member or the death of a member who has retired or is honorably discharged on pension, the surviving spouse, or if no spouse survives or if he or she survives and subsequently dies, then the child(ren) under the age of 18 or, if then attending college, under or reaching the age of 23, shall, during his or her lifetime in the case of a surviving spouse or, in the case of a child(ren), until reaching the age of 18 or, if then attending college, under or reaching the age of 23, be entitled to receive a pension calculated at 50% of the pension the member was receiving or would have been receiving had he or she been retired or honorably discharged on pension at the time of his or her death. For the purposes of this section, the phrase "attending college" shall mean the eligible child(ren) is registered at an accredited institution of higher learning and is carrying a minimum courseload of seven credit hours per semester.
B. 
Pre-vesting benefits. The surviving spouse of any member who dies before his or her pension has vested or, if no spouse survives or if he or she survives and subsequently dies, the child(ren) under the age of 18 or, if attending college, under or reaching the age of 23, of the member shall be entitled to receive repayment of all money which the member invested in the pension fund, plus interest or other increases in value of the member's investment in the pension fund, unless the member has designated another beneficiary for this purpose. For the purposes of this section, the phrase "attending college" shall mean the eligible child(ren) is registered at an accredited institution of higher learning and is carrying a minimum courseload of seven credit hours per semester.
[Amended 9-19-2011 by Ord. No. 452]
If a member is killed in service, there shall be no benefit payable to the plan. However, the Commonwealth of Pennsylvania shall fund and provide the killed-in-service death benefit defined in Act 51.[1]
[1]
Editor's Note: See 53 P.S. § 891.
[Added 6-19-2017 by Ord. No. 496]
A. 
Definitions. For purposes of this section only, the words and phrases used in this section shall have the meanings ascribed below:
DROP
Deferred Retirement Option Plan.
DROP ACCOUNT
Separate account created to accept DROP the monthly pension check of an officer who is participating in DROP.
B. 
Eligibility. Effective January 1, 2014, members of the Upper Pottsgrove Township Police Department who have not retired prior to the implementation of the DROP Program may enter into DROP on the first day of any month following the date on which the officer reaches his normal retirement date. The length of DROP participation shall be a maximum of 36 months.
C. 
Written election.
(1) 
To participate in DROP, the officer must identify a date certain in the future ("termination date") on which he will cease employment. The termination date can be no sooner than 12 months from the date DROP participation begins and no later than 36 months from the date DROP participation begins. Election to participate in DROP is irrevocable and, therefore, once an officer elects to participate in DROP, the officer cannot thereafter leave DROP and resume participation in the Township's pension plan. However, the officer may cease employment at any time during DROP participation, but, in no event shall the officer's employment continue after the identified termination date.
(2) 
The officer shall make the election to participate in DROP by using forms and procedures as prescribed by the plan trustee. The documentation that must be executed before an officer may participate in the DROP Program shall include a provision releasing the Township from any liability with regard to investment and other losses (subject to the guaranteed rate of return set forth herein). As a condition precedent to participation in DROP, the officer must also acknowledge and agree to hold the Township harmless for any consequences flowing from the officer's decision to participate in DROP, including, but not limited to, any tax consequences or other financial or other implications of DROP participation.
(3) 
In addition, all retirement documents required by the Police Pension Board Administrator must be filed and presented to the Board of Commissioners for acceptance and approval of retirement and payment of pension. Once a retirement application has been approved by the Upper Pottsgrove Township Board of Commissioners, it is irrevocable.
D. 
Limitation on pension accrual. As of the effective date of DROP participation, the officer shall no longer earn or accrue additional years of continuous service for pension purposes, and the officer shall no longer make any required contributions to the Township's Police Pension Fund.
E. 
Benefit calculation. For all Township Police Pension Fund purposes, continuous service of an officer participating in DROP shall remain as it existed on the effective date of commencement of participation in DROP. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Upper Pottsgrove Township Police Pension Fund. The officer's pension benefit shall remain as it existed on the effective date of commencement of participation in DROP. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Township Police Pension Fund. The pension benefit payable to the officer shall increase only as a result of cost-of-living adjustments in effect on the effective date of the officer's participation in DROP or by applicable cost-of-living adjustments granted thereafter.
F. 
Payments to the DROP Account. The monthly retirement benefits that would have been payable had the officer elected to cease employment and receive a normal retirement benefit instead of entering DROP shall, upon the officer commencing participation in DROP, be paid into an Act 44 DROP Account designated as "Upper Pottsgrove Township, DROP FBO John Smith." Each such account shall be accounted for separately from the Township's Police Pension Fund. In accordance with applicable law, the Township shall guarantee that, at a minimum, the annual return for the contents of the DROP Account shall not be less than 0% nor greater than 4.5% annually.
G. 
Accrual of nonpension benefits. After an 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 Township's Police Pension Plan and the buyback of any qualifying accrued, but unused, leave time. An officer may utilize leave time during the DROP period, but the Township shall not be required to buy back any such unused leave time at the end of the DROP period unless otherwise expressly stated in the governing collective bargaining agreement.
H. 
Payout. Upon the termination date established by the officer before entering DROP, or such date that the officer terminates from employment before the termination date or on the date the Township separates the officer from employment, the retirement benefits payable to the officer or officer's beneficiary, if applicable, shall be paid to the officer or beneficiary and shall no longer be paid to the officer's DROP Account. Within 45 days following termination of an officer's employment pursuant to their participating in the DROP Program, the balance in the officer's DROP Account shall be paid to the officer in a single, lump-sum payment or, at the officer's option, in any fashion permitted by law. As a condition of participation in DROP, the officer acknowledges that the Township plays no role nor has any responsibility in advising the officer regarding the appropriate payout vehicle. Accordingly, any officer participating in DROP assumes all financial consequences for his/her participation in DROP, including, but not limited to, the manner in which a permitted payout from the DROP Account is made. The participating officer agrees to hold the Township harmless for any tax or other financial consequences which flow directly or indirectly from the officer's participation in DROP. It is strongly suggested that officers participating in DROP obtain appropriate financial advice and guidance.
I. 
Disability during DROP.
(1) 
If an officer becomes temporarily disabled during his participation in DROP, any such time lost due to disability shall be counted towards the officer's termination date. Upon return to duty, membership in DROP shall continue with the remaining time left until the officer's termination date. If eligible, the officer shall receive disability pay in the same amount as disabled Police Officers that are not participating in DROP. In no event shall an officer on temporary disability have the ability to draw from his DROP Account. However, notwithstanding any other provision in this subsection, if an officer is disabled and has not returned to work as of the termination date identified prior to DROP participation, then such resignation shall take precedence over all other provisions herein, and said officer shall be required to resign. Nothing contained in this plan shall be construed as conferring any legal rights upon any officer or other person to the continuation of employment nor shall participation in the DROP Program supersede or limit in any way the right of the Township to grant the officer an honorable discharge based upon an inability to perform his or her full duties as a Police Officer.
(2) 
If an officer is determined to have sustained a permanent work-related injury in the course of employment, the officer's participation in DROP shall immediately cease. In such case, the officer shall have the same options for the payout of the officer's DROP Account and, thereafter, shall receive a normal monthly pension benefit payment in the same manner as an officer who completed his full participation in DROP.
J. 
Death. If an officer participating in DROP dies before the DROP Account balances are paid, the officer's legal beneficiary shall have the same rights as the officer to withdraw the account balance.
K. 
Forfeiture of benefits. Notwithstanding an officer's participation in DROP, an 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 Pennsylvania's Pension Forfeiture Act, 43 P.S. § 1311-1314, shall forfeit his right to receive a pension, including any amounts currently deposited in the DROP Account. In such a case, the officer shall only be entitled to receive the contributions, if any, made by the officer to the Township's Police Pension Fund, without interest.
L. 
Cost of management for DROP Program. The Police Association and the Township agree that any costs or fees associated with the management of the DROP Accounts shall be paid directly from the Police Pension Fund and not by the Township.
M. 
Amendment. Any amendments to this DROP enclosure shall be consistent with the provisions covering deferred retirement option plans set forth in any applicable collective bargaining agreement and shall be binding upon all future DROP participants and upon all DROP participants who have balances in their DROP Accounts. The DROP Plan may only be amended by a written instrument, not by any oral agreement or past practice.
N. 
Effective date. The effective date of this DROP eligibility is January 1, 2014; however, the implementation of the DROP Program will be provided as in this chapter and the CBA.
O. 
Construal of provisions. An officer's election to participate in the DROP Program shall in no way be construed as a limitation on the Township's right to suspend or terminate an officer or to grant the officer an honorable discharge based upon a physical or mental inability to perform his or her duties.
P. 
Administration and audit. The administration of the Upper Pottsgrove Township DROP and audits of the DROP shall be in accordance with the Municipal Pension Plan Funding Standard and Recovery Act, Act 205 of 1984, as amended by Act 44 of 2009.[1]
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
Q. 
Severability.
(1) 
The provisions of this agreement shall be severable; and if any of its provisions shall be held to be unconstitutional or illegal, the validity of any of the remaining provisions of the agreement shall not be affected thereby. It is hereby expressly declared as the intent of the Township's Board of Commissioners that this agreement would have been adopted had such unconstitutional or illegal provision or provisions not been included herein.
(2) 
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 Association shall have the right to bargain in accordance with Act 111[2] over deletion of this benefit. It is expressly understood that this shall not involve bargaining over a replacement provision.
[2]
Editor's Note: See 43 P.S. § 217.1 et seq.
R. 
Repealer/ratification. All other ordinances outlined in the Code of the Township of Upper Pottsgrove to the extent not inconsistent herewith are hereby reenacted and reordained.
S. 
Effective date. This section shall become effective immediately upon enactment.
This plan is intended to be tax-qualified under the applicable provisions of Section 401(a) of the Internal Revenue Code, as amended, and shall be construed in a manner consistent with such intent. The attached addendum to the Upper Pottsgrove Police Pension Plan and Trust is hereby incorporated to be part of this article.[1]
[1]
Editor's Note: The addendum is on file in the Township offices.
All ordinances or parts of ordinances inconsistent with the provisions of this article are hereby repealed insofar as they are inconsistent with this article, except for any ordinance provisions mandated by the Internal Revenue Service.
[Adopted 1-22-2008 by Ord. No. 414]
For the purposes of this article, the following definitions shall apply:
ACCRUED BENEFIT
Shall equal 1.10% of the member's average monthly compensation multiplied by years of service as of the date of determination, with a maximum of 35 years of service.
AGE
Age at nearest birthday.
AVERAGE MONTHLY COMPENSATION
The average of a member's monthly compensation over the highest five consecutive years of employment out of the last 10 years of employment.
COMPENSATION
Total pay.
EMPLOYER
Upper Pottsgrove Township, Montgomery County, Commonwealth of Pennsylvania.
FUND
The Upper Pottsgrove Township Nonuniformed Employees Pension Plan Trust Fund.
HOUR OF SERVICE
Each hour of employment for which a full-time Upper Pottsgrove Township employee is paid or entitled to payment.
MEMBER
All Municipality employees who meet the requirements set forth in § 43-16 of this article. The masculine pronoun will include the feminine.
MUNICIPALITY
Upper Pottsgrove Township, Montgomery County, Commonwealth of Pennsylvania.
PLAN
The Upper Pottsgrove Township Nonuniformed Employees Pension Plan. The plan's fiscal year is the calendar year.
TOWNSHIP
Upper Pottsgrove Township, Montgomery County, Commonwealth of Pennsylvania.
TRUSTEE
The Upper Pottsgrove Township Board of Commissioners or its designee.
YEAR OF SERVICE
The total of an employee's service, expressed as whole years, for each calendar year in which the employee is credited with at least 1,820 hours of service.
This plan is to be funded and maintained by any of the following methods, or a combination of each:
A. 
General fund: contributions from the general fund of the Township which may be required after appropriate approval of the Township Commissioners.
B. 
Member contributions.
C. 
State aid received pursuant to the Municipal Pension Plan Funding Standard and Recovery Act (Act 205).[1]
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
D. 
Gifts, grants, devises or bequests: The sums which may be received by the Township in the form of gifts, grants, devises or bequests may, to the extent authorized by law, be contributed to such fund so long as prior approval of the Township Commissioners is obtained.
A. 
Pension Committee.
(1) 
The general administration and management of the plan shall be under the direction of a Pension Committee, as appointed by the Upper Pottsgrove Township Board of Commissioners. The Committee shall consist of two duly appointed Township representatives and one Nonuniformed Employees Pension Plan member.
(2) 
The Pension Committee shall have all powers necessary to enable it properly to carry out its duties, including but not limited to the power to construe the provisions of the fund, to direct the investment advisor, to determine all questions relating to eligibility of members and to authorize all disbursements for benefits to members. The decisions of the Pension Committee on all matters within the scope of its authority shall be final, subject to approval of the Board of Commissioners.
B. 
Trustee.
(1) 
The fund shall be under the direction of a trustee, designated by ordinance or resolution by the Upper Pottsgrove Township Board of Commissioners. The trustee shall have full responsibility for administration of the program established hereunder and shall hold, invest, reinvest and distribute all funds and other property received pursuant hereto in trust for the purposes of this article. The trustee may receive, at any time, gifts, grants, devises, or bequests to the pension fund of any money or property, real, personal or mixed, to be held by it in trust for the benefit of this fund and in accordance with the provisions hereof. The trustee shall be subject to such rules and regulations as may from time to time be adopted by the governing body of this Township by ordinance or resolution.
(2) 
The trustee shall have full power and authority by a majority action of its members, either directly or through its designated representatives, to do all acts, to execute, acknowledge and deliver all instruments, and to exercise, for the sole benefit of the participants hereunder, any and all powers and discretions necessary to implement and effectuate the purposes of this article, including, for purposes of illustration, but not limited to any of the following:
(a) 
To hold, invest and reinvest all funds received pursuant to this article and such legal investments as may be authorized as legal investments under the laws of the Commonwealth of Pennsylvania.
(b) 
To retain any property which may at any time become an asset of the fund, as long as said trustee may deem it advisable, and
(c) 
To make distribution of the monies in the fund, in accordance with the terms of this article.
(3) 
The expense of administering this pension fund, including compensation of any actuary, any custodian of the fund, and any other charges or expenses related thereto, exclusive of the payment of pensions, may be paid by the Township or by the pension fund, as determined by the governing body of the Township.
A. 
Each full-time nonuniformed municipal employee (regularly working not less than 35 hours per week during the calendar year) employed by the employer is eligible to participate and shall be a member in the Upper Pottsgrove Township Nonuniformed Employees Pension Plan and Fund as of the January 1 or July 1 coincident with or next following the 21st birthday and the completion of 1,820 hours of service in 12 consecutive months of service.
B. 
A member shall retain membership status until he separates from service. Any member who separates from service and begins to receive benefit payments shall cease to be a member and shall, if he returns to service, requalify after completing the eligibility requirements of § 43-16. Any member who separates from service and is rehired as a full-time employee prior to the commencement of benefit payments shall once again become a plan member as of his date of rehire and shall be credited with all past years of service for vesting and accrued purposes.
C. 
For the purpose of this § 43-16, "service" shall mean the period of an employee's total employment by the employer. The following types of absence shall not break continuity, and the time elapsed shall be included in computing length of service:
(1) 
A temporary leave of absence or layoff which shall, if not otherwise stated, expire in six months, unless sooner renewed:
(2) 
An absence during which regular remuneration is paid.
(3) 
Absence for military service under leave granted by the employer or when required by law, provided that the absent employee returns to service with the employer within 90 days of his release from active military duty or any longer period during which his right to reemployment is protected by law. For the purpose of this section, employees in similar circumstances shall be similarly treated.
The benefits from the fund shall be payable to members who have served in the Township in a full-time capacity and who meet the following requirements, after which the member may retire from service with the employer. Benefits commence on the first day of the month coincident with or next following actual retirement. "Normal retirement date" shall mean the first of the month coincident with or next following the attainment of the 65th birthday. A member may retire at a later date, and the retirement benefit will equal the accrued benefit at actual retirement.
A. 
The basis for determining the amount of monthly pension to members retiring under § 43-17 shall be 1.10% of average monthly compensation multiplied by the number of years of service at the member's normal retirement date, with a maximum of 35 years of service.
B. 
The normal form of annuity under this plan is a life annuity for nonmarried members and a joint and fifty-percent survivor annuity for married members. However a member may elect to receive benefits in a form different from the normally prescribed annuity form. Any such alternative form must be the actuarial equivalent of the normal form of annuity. Actuarial equivalence shall be based on the actuarial assumptions used to fund this plan. Alternative options available include:
(1) 
A lifetime annuity.
(2) 
A joint and fifty-percent survivor annuity, whereby the annuity is continued to the member's spouse after the death of the retired member as 50% of the annuity being paid while the member survived.
(3) 
Any other alternative form requested by the member which is approved by the employer.
C. 
Any time a member selects to receive monthly benefits which do not include joint and fifty-percent survivor benefits for a spouse, the spouse must sign a waiver approving the option.
A member who has attained his 55th birthday and has completed six years of service may retire at his own election. The accrued benefit is payable at early retirement and shall be reduced by 6 2/3%, for each year (or portion thereof) up to five years and 3 1/3% for years (or portions thereof) between five and 10 years for benefit payments commencing prior to the member's 65th birthday.
A. 
A member shall become vested in accordance with the following schedule:
Years of Service
Vested Percentage
Less than 2
0%
2 but less than 3
20%
3 but less than 4
40%
4 but less than 5
60%
5 but less than 6
80%
6 or more
100%
B. 
Upon termination of employment, a vested member shall be eligible to receive his monthly vested accrued benefit, payable on his normal retirement date. However, if the actuarially equivalent lump-sum value of the benefit is $5,000 or less, the benefit may be paid as a lump sum.
C. 
However, any member who separates from service prior to his normal retirement date for any reason other than death or early retirement shall receive a complete refund of the total amount of his member contributions, if any, with 5% interest, if such refund is greater in value than the actuarial equivalent of the accrued benefit.
A. 
The preretirement death benefit is payable to the spouse upon death of a member while fully or partially vested, provided that the member has been continuously married to the spouse throughout the one-year period ending on the member's date of death. Benefits begin on the first day of the month coincident with or next following the date of the member's death. The amount of the benefit is equal to the amount payable had the member terminated employment on the date of death, survived to early retirement age, retired with a joint and fifty-percent survivor annuity and then died the next day. If the member is unmarried on the date he dies, the actuarial equivalent of the member's accrued benefit shall be payable to the member's beneficiary.
B. 
The postretirement death benefit is determined by the form of annuity in effect.
The transfer value is the amount allocated to the member from the former defined contribution plan as of December 31, 1988, including interest at 5.0% per annum. The transfer value acts as a minimum benefit amount for all distributions.
This plan is intended to be tax-qualified under the applicable provisions of Section 401 (a) of the Internal Revenue Code, as amended, and shall be construed in a manner consistent with such intent. The attached addendum to the Upper Pottsgrove Township Nonuniformed Employees Pension Plan and Trust is hereby incorporated to be part of this article.[1]
[1]
Editor's Note: The addendum is on file in the Township offices.
All ordinances or parts of ordinances inconsistent with the provisions of this article are hereby repealed insofar as they are inconsistent with this article, except for any ordinance provisions mandated by the Internal Revenue Service.