[Adopted 5-2-1983 by Ord. No. HR-72 (Ch. I, Art. 3, § 301, of the 1979 General Laws of the Municipality of Tredyffrin)]
The following words and phrases as used herein shall have the following meanings unless a different meaning is plainly required by the context:
ACCRUED PENSION BENEFIT
The accrued benefit of a member expressed in terms of a monthly single life annuity beginning at normal retirement date determined under § 39-3A on the basis of the member's years of service and average monthly compensation.
ADMINISTRATOR
The Manager of Tredyffrin Township, or any other person that the Board of Supervisors may appoint.
ANNIVERSARY DATE
Each December 31.
AVERAGE MONTHLY COMPENSATION
The average of an officer's compensation from the Township for the 60 consecutive calendar months of employment ending immediately prior to the earliest of the member's actual retirement date, his or her death or any other termination of service as applicable. If an officer is employed by the Township for less than 60 consecutive calendar months prior to the event which causes his or her employment as an officer to terminate, his or her "average monthly compensation" means the average of the officer's compensation for all consecutive calendar months of employment ending immediately prior to the event; provided, however, that with respect to officers hired before January 1, 1991, and retiring or otherwise terminating service with the Township on or after January 1, 1983, the number "36" shall be substituted for the number "60" wherever that number appears in this definition.
[Amended 2-4-1991 by Ord. No. HR-162]
BENEFICIARY
The person, persons or trust designated by the member as direct or contingent beneficiary in a manner prescribed by the Administrator or, in the absence of a beneficiary designation (or if all beneficiary designations are ineffective), the member's spouse, if living, or if his spouse is not living, the member's heirs under the Pennsylvania intestate law.
BOARD OF SUPERVISORS
The Board of Supervisors of Tredyffrin Township.
BREAK IN SERVICE
For the purpose of computing an officer's years of service, an event other than the officer's retirement, death or disability which results in the officer's termination of service with the Township.
COMPENSATION
An officer's wages from the Township, as reported on the officer's Internal Revenue Service Form W-2, but excluding amounts attributable to overtime pay, on-call pay and educational allowance. Also excluded shall be Township contributions to this or any other employee benefit plan or plans to which the Township contributes for its officers, and amounts identified by the Township as expense allowances or reimbursements.
[Amended 2-4-1991 by Ord. No. HR-162]
CONSUMER PRICE INDEX
The index published by the Bureau of Labor Statistics, United States Department of Labor (1967-100), United States, All Items, Major Group Figures for Urban Wage Earners and Clerical Workers (including single workers), or any replacement index or successor thereto. Should the Bureau of Labor Statistics discontinue publication of this index, the Township, with the consent of the officers' bargaining representative, shall determine the appropriate figure to be applied under the plan. Should the parties fail to reach agreement, the Township shall obtain from the Bureau of Labor Statistics a conversion table for the new index.
DEFERRED RETIREMENT DATE
The first day of the month after a member's normal retirement date on which the member actually retires.
EFFECTIVE DATE
August 11, 1952.
FUND
The assets and earnings, appreciation or additions thereto held by the trustees under the Trust for the exclusive benefit of members, their contingent annuitants or their beneficiaries.
INSURANCE COMPANY
A legal reserve life insurance company which is qualified to do business in Pennsylvania.
INSURANCE CONTRACT
Any group or individual insurance or annuity contract entered into by the trustees with an insurance company to provide benefits under the plan.
INVESTMENT MANAGER
Any person or entity appointed by the Board of Supervisors pursuant to Section 2.4 of the trust agreement for the Trust, with the power to manage, acquire or dispose of plan assets and who is:
A. 
Registered as an investment adviser under the Investment Advisors Act of 1940;
B. 
A bank, as defined in that Act; or
C. 
An insurance company qualified to perform investment services under the laws of more than one state.
MEMBER
An officer who has completed the eligibility requirements of § 39-2 and who participates in the plan by authorizing the withholding of member contributions for him.
MEMBER CONTRIBUTIONS
The contributions which an officer agrees to make as a condition of being a member of the plan, as provided in § 39-4A, plus interest at the rate or rates specified in Appendix A,[1] provided that in the case of an officer in the employ of the Township on or after January 1, 1983, interest shall be at the rate of 5% per year, compounded, for years after 1982.
NORMAL RETIREMENT DATE
[Amended 2-4-1991 by Ord. No. HR-162]
The first day of the month coincidental with or immediately following the earliest of the date the officer:
A. 
Reaches age 55 and completes 25 years of service;
B. 
Reaches age 60 and completes 20 years of continuous service;
C. 
In the case of an officer in the employ of the Township on or after January 1, 1983, and on or before December 31, 1990, reaches age 52 and completes 25 years of service; or
D. 
In the case of an officer who elects a vested deferred retirement benefit, the date on which the officer would have reached his or her normal retirement date (under Subsections A, B or C above) had the officer continued to be employed by the Township.
OFFICER
A sworn police officer employed on a full-time basis by the Police Department of the Township. For this purpose, "full-time" means an average rate of at least 40 hours per week.
PLAN
The pension plan set forth in this document and the trust agreement pursuant to which the related Trust is maintained.
PLAN YEAR
The year ending December 31.
TOTAL AND PERMANENT DISABILITY
Only in the case of an officer who does not qualify for payments under any long-term disability insurance coverage or program then maintained by the Township, a service-connected disability of a permanent nature which has been established to the Township's satisfaction by the report of a physician satisfactory to it and which renders the officer incapable of being gainfully employed.
TOWNSHIP
Tredyffrin Township, a Home Rule Municipality in Chester County, Pennsylvania.
TOWNSHIP CONTRIBUTIONS
The contributions that the Township is required to make to provide those benefits under the plan that are not provided by member contributions.
TRUST
The legal entity created by the trust agreement between the Township and the trustees, fixing the rights and liabilities of each with respect to managing and controlling the fund for the purposes of the plan.
TRUSTEES
The trustees or any successor trustee or trustees hereafter designated by the Board of Supervisors and named in the trust agreement or any amendment thereto.
YEAR OF SERVICE
[Amended 2-4-1991 by Ord. No. HR-162]
A. 
A year of employment with the Township for which an officer agrees to make member contributions, and:
(1) 
During which he is actively employed as an officer; or
(2) 
For purposes of accrual of benefits under § 39-3A and for vesting in accrued pension benefits under § 39-5A, during which he or she is in the active military service of the United States, including a period before becoming an officer and while an officer, except that no credit shall be given for military service in excess of three such years or, in the case of an officer in the employ of the Township on or after January 1, 1983, four such years.
B. 
A period of employment after an officer reaches age 65 shall not be taken into account in determining the number of his years of service.
C. 
Partial years of service shall be disregarded for purposes of accrual of benefits under § 39-3 and vesting in accrued benefits under § 39-5.
D. 
All of an officer's years of service with the Township, up to 20 such years, shall be used in computing the amount of his or her accrued pension benefit under § 39-3 and his or her vested percentage under § 39-5. Except as in Subsection B of the definition of "normal retirement date" in § 39-1 above, if an officer has a break in service and returns to employment as an officer, the years of service prior to the break shall be counted in computing his or her accrued pension benefit and his or her vested percentage, provided that such officer left his or her member contributions in the plan at the time of his or her break in service or, if after returning to employment and before his or her actual retirement date, contributes a member contribution to the plan in an amount actuarially determined by the Plan Administrator; if otherwise, such prior years shall be disregarded.
[1]
Editor's Note: Appendix A is included at the end of this chapter.
An individual shall be eligible to participate in the plan on the first day of the pay period in which he becomes an officer and authorizes withholding of member contributions. At the time the officer first becomes a member, he shall also file with the Administrator a designation of a beneficiary.
A. 
Normal retirement and deferred retirement benefits. A member who retires on his or her normal retirement date or deferred retirement date shall be entitled to a monthly single life annuity retirement benefit equal to 2.5% of his or her average monthly compensation multiplied by his or her years of service, up to a maximum of 20 years of service, and payable in accordance with § 39-6.
[Amended 2-4-1991 by Ord. No. HR-162]
B. 
Disability benefit. A member whose employment is terminated prior to his normal retirement date by reason of a total and permanent disability shall be entitled to a monthly retirement benefit calculated in accordance with § 39-3A using years of service credited to the date of total and permanent disability.
C. 
Death benefits. There shall be death benefits provided under the plan as follows:
(1) 
Death of a member before retirement date. Upon the death of a member in active service or of a member not in active service but who is entitled to a deferred vested benefit before his retirement date, the beneficiary of such deceased member shall receive the amount of the member contributions, including interest to the date of death, in a lump sum.
(2) 
Death of a member after retirement date. Upon the death of a member after his retirement date, benefits, if any, shall be paid to his contingent annuitant in accordance with the form of benefit payment selected by the member at retirement.
D. 
Vested deferred retirement benefit. A member whose employment is terminated prior to his normal retirement date for any reason other than retirement, death or disability shall be entitled to his vested interest, if any, in his accrued pension benefit as determined in accordance with § 39-5A. Such benefit shall be payable in accordance with § 39-6D.
E. 
Minimum benefit. Unless the trustees purchase an insurance contract for the member, the minimum benefit payable to the member under the plan shall be the amount of his member contributions, including interest to the date of benefit entitlement. If an amount is due after all payments to a member and any contingent annuitant have been made, such amount shall be paid to the member's beneficiary. If the trustees purchase an insurance contract for the member's benefit, this minimum benefit provision shall be of no effect, and only the survivor provisions, if any, of such insurance contract shall be applicable to the member's benefit.
F. 
Forfeiture of right to Township contributions. In the case of a member who is an officer in the employ of the Township at any time on or after January 1, 1983, and who is convicted of a felony or misdemeanor involving moral turpitude, when the conduct is connected with the individual's position as a police officer and committed with intent, such a member shall forfeit any and all rights to his vested interest in his accrued pension benefit derived from Township contributions.
A. 
Member contributions. Each officer who becomes a member shall make contributions to the plan, through regular payroll deduction, at the rate of 5% of his compensation, provided that the Township may, consistent with the terms of any collective bargaining agreement in effect between it and the representative of the officers and so long as the plan shall remain actuarially sound in the opinion of the Township with the advice of an actuary satisfactory to the Township and the officers' bargaining representative, waive member contributions for 1983 and/or 1984. While there is a waiver of member contributions in effect, if any, each member affected by such waiver shall continue to receive years of service credit for benefit accrual and vesting, as provided by the plan, but shall not be entitled to credit for member contributions except for interest on member contributions made prior to the waiver effective date. The Administrator shall forward member contributions to the trustees as soon as practicable following the date the member contributions are made.
B. 
Township contributions. The Township shall make Township contributions to the fund in such amounts as the plan's actuary deems sufficient, on an annual basis, taking into account member contributions, to provide the benefits described under the plan. However, the Township shall have no obligation to make Township contributions to the fund after the plan has terminated, whether or not benefits accrued prior to the date of termination have been fully funded. This provision shall not affect the Township's obligation to provide pension benefits to members in accordance with applicable law and the terms of any applicable collective bargaining agreement then in effect.
C. 
Time of contributions. Payment of Township contributions to the fund in accordance with § 39-4B shall be made within a reasonable time following the actuarial determination of the amount of such contributions.
A. 
Rate of vesting Township contributions.
(1) 
Vesting rule prior to 1981. Prior to January 1, 1981, a member shall have a vested interest in his accrued pension benefit in accordance with the following schedule:
Years of Service As a Member
Vested Interest
Fewer than 5
0%
5 but fewer than 10
25%
10 but fewer than 15
50%
15 but fewer than 20
75%
20 or more
100%
(2) 
Vesting rule after 1980. After December 31, 1980, a member shall have a vested interest in his accrued pension benefit based on his years of service as a member and in accordance with the following schedule:
Years of Service As a Member
Vested Interest
Fewer than 5
0%
5 but fewer than 10
25%
10 but fewer than 12
50%
12 or more
100%
B. 
Full vesting: Township contributions. A member shall have a fully vested interest in his accrued pension benefit in any event if he either dies or becomes totally and permanently disabled while in active service.
C. 
Rate of vesting: member contributions. A member shall be one-hundred-percent vested in his member contributions at all times.
D. 
Application of forfeitures. Any amounts forfeited under this § 39-5 shall not be used to increase the benefit of any member, but shall be used to reduce future Township contributions.
A. 
Benefit commencement date.
(1) 
Normal or deferred retirement. The benefit of a member who retires on or after his normal retirement date shall be payable beginning on his normal retirement date or his deferred retirement date, as applicable.
(2) 
Disability retirement. The benefit of a member who retires by reason of becoming totally and permanently disabled shall be payable beginning at disability or at such other time as the member elects.
(3) 
Vested deferred retirement benefit. The benefit of a member who is entitled to a vested deferred retirement benefit as provided in § 39-3D shall be payable beginning on what would have been his or her normal retirement date if he or she had remained in the employ of the Township until that date.
[Added 2-4-1991 by Ord. No. HR-162]
B. 
Normal form of benefit. The normal form of benefit payable under the plan shall be monthly payments for the life of the member, beginning with the first month in which he is entitled to receive a benefit under § 39-3 and ending with the month in which he dies. If the member has received a refund of his member contributions pursuant to § 39-6F, his monthly benefit payable under the plan shall be reduced by an amount equivalent to such contributions, determined in accordance with § 39-6F(2).
[Amended 2-3-1992 by Ord. No. HR-191]
C. 
Optional form of benefit payment. In lieu of the normal form of benefit provided under § 39-6B, a member may elect to have his retirement benefit paid in the form of a joint and survivor annuity, which is the actuarial equivalent of the normal form of benefit under § 39-6B, and which provides a reduced benefit payable for the life of the member with the further provision that after the member's death 50% of such reduced amount shall be paid during the life of and to the contingent annuitant designated by the member in the election filed with the Administrator. A member may elect to receive a refund of his member contributions pursuant to § 39-6F, in conjunction with either the normal form of payment or an optional form of payment. If the member receives a refund of his member contributions, his monthly benefit payable under the plan shall be reduced by an amount equivalent to such contributions, determined in accordance with § 39-6F(2). If the contingent annuitant dies before the member's retirement benefit is to begin, a joint and survivor annuity election shall be void and the retirement benefit shall become payable to the member when due and shall be computed as though the joint and survivor option had not been elected. If a contingent annuitant under a joint and survivor annuity option predeceases the member after benefit payments to such member have begun, such benefit payments shall continue without change and shall cease with the member's death. No benefit shall be payable to contingent annuitant if the member who has designated him dies before the member is entitled to receive his first benefit benefit payment.
[Amended 2-3-1992 by Ord. No. HR-191]
D. 
Vested deferred benefit. Upon termination of service with the Township for reasons other than retirement or death, a member may elect an immediate distribution of his or her vested benefit in a lump sum to the extent consistent with applicable law or defer payment of his or her benefit until normal retirement date. The amount of the immediate distribution, if elected, shall be his or her member contributions, including interest to his or her date of termination, plus the lump sum actuarial present value of his or her vested interest in his or her accrued pension benefit derived from Township contributions.
[Amended 2-4-1991 by Ord. No. HR-162]
E. 
Cost of living increases for certain retirees. In the case of a member who was an officer in the employ of the Township on or after January 1, 1983, and on or before December 31, 1990, who retires and begins to receive a normal retirement benefit, a vested deferred retirement benefit or a disability benefit in the normal form or optional form, the benefit of such a member shall be increased to reflect increases in the cost of living. Such increases shall be effective as of January 1 of each year that this provision is in effect and shall equal the lesser of 3% or the actual cost of living increase for the immediately preceding calendar year, based in either case upon such an increase in the consumer price index for such calendar year. No such adjustment shall be made unless the plan is determined by the Township, based upon the advice of an actuary satisfactory to the Township and the officers' bargaining representative, to be actuarially sound after giving effect to the increase, to any provision then in effect waiving member contributions and to the other obligations of the plan. If benefit payments have not been in effect for a member for the entire calendar year before any January 1 adjustment date, the increase shall be the lesser of 3% or the actual cost of living increase for the immediately preceding calendar year, multiplied by a fraction, the numerator of which is the number of months that benefit payments have been in effect and the denominator of which is 12. There shall be no cost of living adjustment to any contingent annuity payment under § 39-6C or to any vested deferred benefit payable earlier than a member's normal retirement date. Cost of living adjustments made pursuant to this § 39-6E shall be based on the monthly amounts received by a retired member (i.e., after the adjustment for refunded member contributions is made pursuant to § 39-6F, if any).
[Amended 2-4-1991 by Ord. No. HR-162; 2-3-1992 by Ord. No. HR-191]
F. 
Refund of member contributions. Member contributions made pursuant to § 39-4A and interest earned thereon may, at the election of the member, be refunded to the member upon the member's retirement under the plan.
(1) 
Amount of refund. The amount of a refund made pursuant to this § 39-6F shall be the lesser of Subsection F(1)(a) and (b) below, where:
(a) 
Subsection F(1)(a) equals the member's contributions and interest earned thereon; and
(b) 
Subsection F(1)(b) equals the value of the member's accrued pension benefit payable from the Trust (excluding the Aetna annuity purchased) on the basis of actuarial assumptions equal to an interest rate of 7% and the 1971 TPF&C mortality table.
(2) 
Adjustment of member's monthly benefit. In the event that a member receives a refund of his member contributions, his monthly benefit, if any, payable under § 39-6B or C shall be reduced by the value of member contributions. The reduction shall be equal to the annuity value of the member's member contributions plus interest earned thereon. Such annuity value shall be determined on the basis of actuarial assumptions equal to an interest rate of 7% and the 1971 TPF&C mortality table.
(3) 
Refund paid from trust. Any refund made pursuant to this § 39-6F shall be paid solely from the Trust. In no event shall amounts payable from any annuity contract it entered into by the Township on behalf of the members be affected by any refunds paid hereunder.
(4) 
Future cost of living increases not considered. In determining the amount of a refund under Subsection F(1) of this section, future cost of living increases which may be made pursuant to § 39-6E shall not be considered.
A. 
Responsibilities of Administrator and trustees. All matters relating to the plan, except those duties relating to the control or management of plan assets, shall be the responsibility of the Administrator. All matters relating to the control or management of plan assets shall, except to the extent delegated in accordance with the trust agreement, be the sole and exclusive responsibility of the trustees. The Administrator may resign by giving written notice to the Board of Supervisors, which notice shall be effective 30 days after delivery. The Administrator may be removed by the Board of Supervisors by written notice to the Administrator, which notice shall be effective immediately upon delivery of the notice. The Board of Supervisors shall promptly select a successor following the resignation or removal of the Administrator. The appointments and removal of the trustees shall be made in accordance with the terms of the trust agreement.
B. 
Administrator: rules and regulations. The Administrator shall enact such rules and regulations of the plan as he may deem desirable, provided that they are consistent with applicable law and the terms of any applicable collective bargaining agreement then in effect. The Administrator shall keep records of his actions.
C. 
Exclusive benefit rule; applicable law. The Administrator shall administer and interpret the plan for the exclusive benefit of members, their contingent annuitants and their beneficiaries, and in consistency with both applicable law and the terms of any applicable collective bargaining agreement then in effect.
D. 
Advisors and experts.
(1) 
The Board of Supervisors shall appoint an actuary to make actuarial valuations of the liabilities of the plan, to recommend to it the mortality or other tables and the interest rates to be used from time to time in actuarial and other computations for purposes of the plan, to recommend to it the amounts of Township contributions and to perform such other services as the Board of Supervisors shall deem necessary or desirable in connection with the administration of the plan. In addition, the Board of Supervisors may employ accountants, attorneys, consultants and other advisors to perform services with respect to the plan.
(2) 
The fees charged by any such accountants, actuaries, attorneys, consultants or other advisors appointed or employed pursuant to Subsection D(1) above prior to January 1, 1976, shall be paid by the Township. Any such fees charged by such advisors on or after January 1, 1976, shall be paid from the fund, unless they are paid by the Township.
A. 
Amendment procedures. The plan may be amended at any time and from time to time by an ordinance adopted by the Board of Supervisors.
B. 
Termination procedures.
(1) 
While the Township intends to continue the plan indefinitely, it reserves the right, by adoption of an ordinance, to terminate the plan at any time, in a manner not inconsistent with any applicable collective bargaining agreement with the officers, and any applicable law. In the event of termination of the plan, all of the assets of the fund shall be allocated among the members, contingent annuitants and beneficiaries in the following order:
(a) 
To that portion of each member's accrued pension benefit which is derived from his member contributions, including interest to the date of plan termination;
(b) 
In the case of benefits payable as an annuity:
[1] 
If the benefit of a member or contingent annuitant was in pay status as of the beginning of the three-year period ending on the termination date of the plan, to each such benefit, based on the provisions of the plan as in effect on the date of termination; or
[2] 
If a benefit {other than a benefit described in Subsection B(1)(a)[1]} would have been in pay status as of the beginning of such three-year period if the member had retired prior to the beginning of the three-year period and if the benefits had begun (in the normal form of annuity under the plan) as of the beginning of such period, to each such benefit based on the provisions of the plan as in effect on the date of termination;
(c) 
To all other nonforfeitable benefits under the plan;
(d) 
To all other benefits under the plan; and
(e) 
To the Township, if all liabilities of the plan to members, their contingent annuitants and their beneficiaries have been satisfied and such distribution does not contravene any applicable law or the terms of any applicable collective bargaining agreement then in effect.
(2) 
If the fund is insufficient to provide in full for any of the classes set forth above, the assets remaining shall be applied proportionately among members, contingent annuitants and beneficiaries of the first such class as to which there is an insufficiency, and nothing shall be applied to any subsequent class.
A. 
Township prerogatives. The existence of the plan shall not confer upon any officer the right to be continued as an officer. The Township expressly reserves the right, consistent with any applicable Pennsylvania law or Township ordinance, to discharge any officer whenever, in its judgment, its best interests so require.
B. 
Nonalienation. No benefit payable under the plan shall be subject in any manner to anticipation, assignment or voluntary or involuntary alienation.
C. 
Facility of payment: incapacity. If any member, contingent annuitant or beneficiary shall be physically or mentally incapable of receiving or acknowledging receipt of any payment due under the plan and no legal representative shall have been appointed for him, the Administrator may direct the trustees to make any such payment to any person or institution maintaining such member, contingent annuitant or beneficiary, and the release of such person or institution shall be a valid and complete discharge for such payment.
D. 
Facility of payment: minority. If the contingent annuitant or beneficiary of any member shall be a minor and no guardian shall have been appointed for him, the Administrator may direct the trustees to retain any payment due under the plan for his benefit until he attains majority. Such amount, as authorized by the Administrator, may be held in cash, deposited in bank or savings accounts or invested and reinvested in direct obligations of the United States, and the income thereon may be accumulated and invested or the income and principal may be expended and applied directly without the intervention of any guardian and without application to any court.
E. 
Prohibition against diversion. Prior to the satisfaction of all liabilities with respect to members, contingent annuitants and beneficiaries, no part of the principal or income of the Trust shall be used for or diverted to purposes other than for the exclusive benefit of members, their contingent annuitants or their beneficiaries under the plan. No person shall have any interest in or right to any part of the earnings of the Trust or any rights in or to the Trust or any part of the assets thereof, except to the extent expressly provided in the plan and trust agreement.