[Adopted 12-7-2011 by Ord. No. 1267[1]]
[1]
Editor's Note: This ordinance also superseded former
Art. II, Police Pension Fund, adopted 3-31-1975 by Ord. No. 933.
A.
AGE
ANNIVERSARY DATE
AVERAGE APPLICABLE COMPENSATION
BOROUGH
CHIEF ADMINISTRATIVE OFFICER
COMPENSATION
COUNCIL
EARLY RETIREMENT DATE
EFFECTIVE DATE
EMPLOYEE
FUND
MANDATORY RETIREMENT AGE
MEMBER
NORMAL RETIREMENT DATE
PLAN
PLAN YEAR
SERVICE
TOTAL AND PERMANENT DISABILITY
TRUSTEE
As
used in this article, the following terms shall have the meanings
indicated:
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
The average monthly earnings of the member at any time of
reference computed over the last 36 months (or such shorter period
as represents the member's total period of continuous employment
by the Borough prior to such date of reference). For purposes of computing
average applicable compensation, actual monthly earnings shall be
based on W-2 earnings in which all forms of earnings are derived from
the terms and conditions of the employee's employment, less severance
payments made at the time of retirement or death (i.e., unused sick
leave and vacation).
The Borough of Lansdowne, Delaware County, Commonwealth of
Pennsylvania.
The person who has primary responsibility for the execution
of the administrative affairs of this pension plan, or the designee
of that person.
Shall be based on W-2 earnings in which all forms of earnings
are derived from the terms and conditions of the employee's employment,
less severance payments made at the time of retirement or death (i.e.,
unused sick leave and vacation).
The Council of the Borough of Lansdowne.
The first day following the date on which the member completes
20 years of service.
January 1, 2011.
Any sworn police officer in the full-time employ of the Borough
Police Department whose customary employment is for not less than
40 hours a week.
All assets held by the Trust under the Trust Agreement relating
to this Police Pension Plan.
The date on which the member has attained age 65.
Any sworn police officer in the full-time employ of the Borough Police Department who has satisfied the eligibility requirements established in § 61-7 hereof and who is, at the time of reference, or has prior to his or her elimination, been making such contributions as may be required pursuant to § 61-8A hereof.
The first day following the date on which the member completes
25 years of service and the date on which the member attains age 50.
The Police Pension Plan for the Borough of Lansdowne, as
herein set forth and as the same may hereafter be amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
The aggregate of a member's total periods of employment
as a full-time employee of the Borough. If a member enters military
service, either voluntarily or by conscription, after he has been
employed for at least six months, such time spent in the Armed Forces
of the United States during a period of wartime of general military
conflict shall be counted as service for purposes of the Plan, provided
that such member returns to police service with the Borough within
six months after his discharge or release from such active duty in
the Armed Forces of the United States. The time spent in military
service due to voluntary extension of such military service during
a period of peacetime shall not be included as service for the purposes
of this Plan. Time spent on Reserve or National Guard training shall
be included as service for purposes of this Plan.
Any condition arising from service-connected illness or injury
which precludes an employee from performing the duties associated
with the normal occupational requirements of a police officer as certified
by a physician designated by the Borough.
The Council of the Borough of Lansdowne or any other agency
or person appointed by such to serve in that capacity as set forth
in the Trust Agreement.
B.
Wherever
applicable as used herein, unless the context specifically provides
otherwise, the singular and plural shall be interchangeable, and the
masculine and feminine pronoun shall include either sex.
A.
Contributions
by members.
(1)
Members shall pay into the Fund at a rate of 5.0% of compensation. Compensation, for this purpose, shall be as defined in § 61-6 of the Plan. The Council may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the Fund by members. Individual records of contributions by members shall be maintained, including all interest credited to his individual account. Interest to be credited shall be 3.0%, compounded annually.
(2)
Interest shall be credited from the end of the Plan year in which
paid to the last day of the month after which a refund becomes payable.
B.
Refund
of member's contributions. Any member who for any reason shall
be ineligible to receive a pension after having made contributions
shall be entitled to a refund of his individual account balance; such
refund is payable immediately upon discontinuance of his employment
with the police force or within a reasonable time (not more than 45
days after discontinuance). If such discontinuance is due to death,
then such refund shall be paid to his designated beneficiary or, in
the absence thereof, to his estate. If the disabled or retired member
is receiving a benefit by reason of disability or retirement, then
the refund payable to the beneficiary is equal to the individual account
balance at the date of disability or retirement, less any pension
payments made to the member.
C.
Deposits.
Contributions by members shall be remitted to the Trustee monthly.
D.
State aid. The portion of the payments made by the State Treasurer
to the Borough and designated by the Council to be allocated to the
Police Pension Fund from money received from taxes paid upon premiums
by foreign casualty insurance companies for purposes of pension retirement
or disability benefits for policemen shall be used as follows:
E.
Borough contributions. Subject to the provisions and limitations
set forth in other sections of this Plan, the Borough shall contribute
the amounts certified to be necessary by the Fund's actuary to
provide the benefits provided by this Plan.
F.
Nonintervening military buy back.
(1)
The Plan provides full service credit for each year of military service
or fraction thereof, not to exceed five years, to a member who was
not employed by the Borough prior to such military service, payable
by the member.
(2)
The member shall pay the amount for the purchase of credit for military
service, other than intervening military service, which shall be computed
by applying the average normal cost rate for the Plan as certified
by the Public Employee Retirement Study Commission, but not to exceed
10%, to the member's average annual rate of compensation over
the first three years of service and multiplying the result by the
number of years and fractional part of a year of creditable nonintervening
military service being purchased, together with interest at the rate
of 4 3/4%, compounded annually from the date of initial entry
into service to the date of payment.
(3)
A member of the Plan shall be eligible to receive service credit
for intervening or nonintervening military service, provided that
he is not entitled to receive, eligible to receive then or in the
future, or who is receiving retirement benefits for such service under
a retirement system administered and wholly or partially paid for
by any other governmental agency with the exception of a member eligible
to receive or who is receiving military retirement pay earned by a
combination of active duty and nonactive duty with a Reserve or National
Guard component of the Armed Forces which retirement pay is payable
only upon the attainment of a specified age and period of service
under 10 U.S.C. Ch. 67 (relating to retired pay for nonregular service).
G.
Other contributions. The Fund shall be authorized to receive, by
gift, grant, devise or bequest, any money or property, real, personal
or mixed, in trust for the benefit of the Fund. The Trustee of the
Fund shall be subject to such directions not inconsistent with this
Plan as the donors of such funds and property may prescribe.
A.
Normal
retirement.
(1)
Each member may retire on or at any time after his normal retirement
date. Any member so retiring shall be entitled to receive a monthly
pension commencing as of the first day following his date of actual
retirement and ending with the payment made as of the first day of
the month in which his death occurs. The monthly pension to which
such retired member shall be entitled to under this Plan shall be
equal to 50% of such member's average applicable compensation.
(2)
In addition to the monthly retirement benefit described above, each
member who has completed in excess of 26 years of service shall receive
an additional monthly pension benefit equal to a $20.83 per month
($250 annually) for each of the first four years of service completed
in excess of 25 years and $16.67 per month ($200 annually) for the
fifth year of service in excess of 25 years of service, up to a maximum
annual benefit of $1,200 or a maximum monthly benefit of $100 per
month.
B.
Early retirement benefit. Each member may retire on or at any time after his early retirement date. Upon termination, the member must file with the Secretary of the Borough a written notice of his intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit as computed in § 61-11A. The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission.
C.
Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date, but must terminate employment with the Borough upon reaching his mandatory retirement age. In such case, the employee shall remain a member of the Plan until he actually retires or ceases to be an employee. Any contributions required pursuant to § 61-8A hereof shall continue.
D.
Disability
benefit.
(1)
If a member who was hired prior to January 1, 2011, retires because
of a total and permanent disability, he shall be entitled to receive
a pension benefit equal to 70% of the member's average applicable
compensation, provided that the disability benefit, social security
disability benefits, and workers' compensation payments (or the
annuity value of a lump sum workers' compensation settlement)
may not exceed 100% of the member's compensation received in
the prior 12 months. The disability pension paid under this provision
shall be offset to meet this requirement.
(2)
If a member who was hired on or after January 1, 2011, retires because
of a total and permanent disability, he shall be entitled to receive
a pension benefit equal to 50% of the member's average applicable
compensation, provided that the disability benefit, social security
disability benefits, and workers' compensation payments (or the
annuity value of a lump sum workers' compensation settlement)
may not exceed 100% of the member's compensation received in
the prior 12 months.
(3)
The workers' compensation benefits shall not be reduced by the
pension benefit received. The disability pension paid under this provision
shall be offset to meet this requirement.
(4)
The benefit will commence on the first day of the month following
the month in which he retires. Council reserves the right to require
disabled members to present evidence of total and permanent disability
and of the continuance of such condition from time to time and either
reserves the right to require members to submit to medical examinations
by practitioner(s) selected by the Council as a precondition to the
continued payment of benefits.
E.
Cost-of-living
adjustment. There shall be a cost-of-living adjustment provided to
all members who retire. The annual cost-of-living adjustment shall
not exceed 5% or the percentage increase for the calendar year in
the All Urban Consumers CPI for the Philadelphia Metropolitan area,
whichever is less. The adjustments shall be applicable each year;
provided, however, that in no case shall the total police pension
benefits exceed 75% of the salary for computing retirement benefits
and shall not cause the total cost-of-living adjustment to exceed
25%. No cost-of-living adjustment shall be granted which would impair
the actuarial soundness of the Pension Fund. All adjustments shall
be effective on the annual anniversary of the member's retirement.
A.
Death benefit if no surviving spouse nor dependent children. If a
member dies prior to the commencement of pension benefits, then his
designated beneficiary shall be entitled to a refund of his accumulated
member's contributions with credited interest. If no beneficiary
survives, then the refund is payable to the member's estate.
B.
Pension benefit to surviving spouse and dependent children.
(1)
If a member dies survived by a spouse or dependent children, after
having become eligible to receive a pension benefit (i.e., he was
eligible because he was already receiving a pension, he met the age
and service requirements, but he had not yet retired), then a monthly
pension benefit shall be provided.
(2)
The amount of the monthly pension benefit shall be 50% of the pension
the member was receiving or would have been entitled to receive if
he had been retired at the time of his death.
(3)
In the event a member dies after completing 12 or more years of service but was not yet eligible for normal retirement or pre-retirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in § 61-11A. If a vested benefit is selected, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following the member's normal retirement date.
(4)
In the event a member dies after completing 20 or more years of service but was not yet eligible for normal retirement or pre-retirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in § 61-9B. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit commencing on the first day of the month following the election of this benefit.
(5)
The monthly pension benefit is payable to the surviving spouse until
death, then to surviving dependent children under the age of 18 years
or, if attending college, under or attaining the age of 23 years.
"Attending college" shall mean the eligible children are registered
at an accredited institution of higher learning and are carrying a
minimum course load of seven credit hours per semester. Dependent
children shall include stepchildren, adopted children, and any child
conceived before the time of the member's date and thereafter
born to the member's spouse.
C.
Pre-retirement survivor benefit. In the event a member is killed in service, the member's family shall receive the benefits provided for and subject to the terms of Act 51 of 2009, which benefits are paid exclusively by the Commonwealth of Pennsylvania with the exception of any pension benefit to which the member was entitled prior to the member's death, solely by virtue of the member's service as a Borough police officer (i.e., either a normal, early, or vested pension benefit). It is understood that "family" shall refer to the surviving spouse and dependent children. The benefit is payable to the surviving spouse until death, then to the surviving dependent children under the age of 18 years or, if attending college, under or attaining the age of 23 years. The terms "dependent children" and "attending college" shall be consistent with that of Subsection B.
If a member leaves the employ of the Borough or ceases to be a member, whether by reason of his transfer, resignation or discharge, or by reason of disability or retirement other than after becoming eligible for benefits pursuant to §§ 61-9 or 61-10 of this Plan, he shall be entitled to a refund of all contributions made by him and then on deposit in the Fund, plus interest thereon, computed at the rate described in § 61-8A. However, a member who has completed 12 or more years of service may elect either Subsection A or B as described below:
A.
He may elect to leave his contributions, plus interest, in the Fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Secretary of the Borough, within 90 days of the date he ceases to be a full-time police officer, a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y), where (x) is the number of years of service at the date of termination and (y) is the number of years of service which the member would have had if he worked until normal retirement date, multiplied by the benefits described in § 61-9A. Years of service shall be measured in years and completed months.
B.
He may elect to receive a refund of all contributions made by him and then on deposit in the Trust Fund, plus interest thereon, computed at the rate described in § 61-8A. If he elects to receive the refund of his contributions, plus interest, he would forfeit the pension benefit outlined in Subsection A.
B.
The normal form of all benefits payable hereunder shall be a pension for the life of the member commencing on the date specified and ending with a payment made on the first day of the month in which the member dies, subject, however, to the payment of a death benefit calculated pursuant to § 61-10B.
A.
It is the duty of the Trustee to pay the benefits to members and their beneficiaries, as provided in §§ 61-9, 61-10, and 61-11 in accordance with the instructions received from the Council provided, however, that the duty of the Trustee to make such payments is wholly contingent upon the sufficiency of the Fund for such purposes.
B.
The Council may employ an actuary, investment advisors, counsel,
or other professional consultants, from time to time, in connection
with the operation of the Fund or of this Plan. Such persons or entities
shall be compensated by the Borough at such rates as may be agreed
upon by the Council. Such compensation may be paid from the Fund.
C.
Investment manager.
(1)
The Council may, by an instrument in writing, appoint one or more
persons as an investment manager and may delegate to an investment
manager, from time to time, the power to manage and control the investment
of any Plan asset. Each person appointed shall be:
(2)
Each investment manager shall acknowledge, in writing, that it is
a fiduciary with respect to the Plan. The Council shall enter into
an agreement with each investment manager specifying the duties and
compensation of such investment manager and other terms and conditions
under which such investment manager shall be retained. The Council
shall not be liable for any act or omission of any investment manager,
and shall not be liable for following the advice of any investment
manager, with respect to any duties delegated to the investment manager.
(3)
The Council shall have the power to determine the amount of Fund
assets to be invested pursuant to the direction of a designated investment
manager and to set investment objectives and guidelines for the investment
manager.
D.
Fair market value of Fund.
(1)
The Trustee shall make an annual determination of the fair market
value of the Fund as of the anniversary date and as of such additional
dates as the Council may direct.
(2)
The fair market value of the Fund shall be reported to the actuary
who shall calculate the amount to be contributed to the Fund by the
Borough with respect to each Plan year in accordance with the assumptions
most recently adopted by the Council for the purpose of such computations;
provided, however, that the liability of the Borough to make such
contributions is subject to all of the conditions and limitations
set forth elsewhere in this Plan.
A.
The Plan shall be administered by the Council of the Borough of Lansdowne.
The Council shall make and adopt rules and regulations for the efficient
administration of the Plan.
B.
The Council shall keep all data, records and documents pertaining to the administration of the Plan and shall execute all documents necessary to carry out the provision of the Plan, and shall provide all such data, records and documents to the professionals whose services are employed pursuant to § 61-13B of this Plan.
C.
The Council shall construe the Plan, shall determine any questions
or fact arising under the Plan and shall make all decisions required
of it under the Plan. Decisions and actions taken thereon in good
faith shall be final and conclusive. It may correct any defect or
supply any omission or reconcile any inconsistency in such manner
and to such extent as it shall be the sole judge of such expediency.
The Council shall act uniformly with respect to matters coming before
it concerning employees in similar circumstances.
D.
The members of the Council, and each of them, shall be free of all
liability for any act or omission except by willful misconduct or
gross negligence, and each of them shall be fully indemnified by the
Borough against all judgments not involving findings of their respective
personal or collective willful misconduct or gross negligence and
against all cost, including counsel fees, incurred in defense of actions
brought against them.
E.
The Council shall make available to members, retired members and
terminated members, and to their beneficiaries, for examination during
business hours, such records as to pertain to the person examining.
F.
To enable the Council to perform its function, the Borough administration
shall supply full and timely information to it on all matters relating
to the pay of all members, their retirement, death, termination of
employment and such other pertinent facts as the Council may require.
G.
The Council shall enact such rules and regulations for the conduct
of its business and for the administration of the Plan as it may consider
desirable, provided the same shall not be in conflict with any of
the provisions of the Plan. All actions of the Council shall be taken
at meetings at which at least four members shall be present, or by
written resolutions concurred in by not less than four of its members
shall be the action of the entire Council. Written minutes shall be
kept of the meetings and action of the Council.
H.
The Secretary, acting on behalf of the Council, shall have the power
to execute all documents necessary to carry out the actions of the
Council, and any person, partnership, corporation or government agency
shall accept such documents over such signature or signatures as if
executed by the Council.
A.
It is the expectation of the Borough that it will continue this Pension
Plan indefinitely, and will, from time to time, contribute to the
Fund such amounts as may be needed to provide the benefits set forth
in the Plan.
B.
The provisions of any ordinance establishing, amending, or maintaining
the Plan shall not be a charge on any other fund in the Treasury of
the Borough or under its control, save the Uniformed Employee's
Pension Fund herein provided for.
C.
Nothing contained in the Plan shall be held or construed as a contract
or guarantee of employment nor to create any liability upon the Borough
to retain any person in its service. The Borough reserves the full
right to discontinue the service of any person without any liability,
except for salary or wages that may be due and paid, whenever, in
its judgment, its best interests so require, and such discontinuance
shall be without regard to this Plan.
A.
The Borough may amend this Plan from time to time as is necessary
to maintain its actuarial soundness and to incorporate changes in
Plan benefits or entitlements. However, no amendment shall be made
which will, in any manner, divert any part of the Fund to any purpose
other than the exclusive benefit of members or their beneficiaries
(except that upon termination such diversion may be made after all
of the fixed and contingent liabilities to members and their beneficiaries
have been met), nor shall any amendment be made at any time which
will in any manner divest any benefit then vested in a member or reduce
or eliminate a benefit to which a member has been given an expectation
by virtue of pension ordinance or pension calculations for retiring
officers who retired during the member's participation in this
Plan.
B.
In the event of termination of this Plan, the Council shall allocate
the assets then remaining in the Fund as follows:
(1)
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 61-8 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this Fund.
(2)
Contributions with interest at a rate established by the Council as provided in § 61-10 shall be refunded to any and all members who terminate service at the time of the termination of the Fund.
A.
No benefit under this Plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, or encumbrance, nor
to seizure, attachment, or other legal process for the debts of any
member or member's beneficiary. This provision shall not apply
to a qualified domestic relations order, defined in Code Section 414(p),[1] and those other domestic relations orders permitted to
be so treated by the Council under the provisions of the Retirement
Equity Act of 1984.[2] The Borough shall establish a written procedure to determine
the qualified status of domestic relations orders to administer distributions
under such qualified orders. Further, to the extent provided under
a qualified domestic relations order, a former spouse of a member
shall be treated as the spouse or surviving spouse for all purposes
under this Plan.
B.
Any person dealing with the Borough may rely upon a copy of this
Plan and any amendments thereto certified to be true and correct by
the Trustee.
C.
In no circumstances, whether upon amendment or termination of this
Plan or otherwise, shall any part of the Fund be used or diverted
to any purpose other than the exclusive benefit of members or their
beneficiaries until all of the actuarial obligations to such member
or member's beneficiaries have been met.
D.
If the Council deems any person incapable of receiving benefits to
which he is entitled by reason of minority, illness, infirmity, or
other incapacity, it may make payment directly for the benefit of
such person, to the guardian or trustee for said person, whose receipt
shall be complete acquittance therefor. Such payment shall, to the
extent therefor, discharge all liability of the Borough or the Fund.
E.
Should any provision of this Plan be determined to be void by any
court, the Plan will continue to operate and, to the extent necessary,
will be deemed not to include the provision determined to be void.
F.
Headings and captions provided herein are for convenience only and
shall not be deemed part of the Plan.
G.
This Plan shall be construed and applied under the laws of the Commonwealth
of Pennsylvania where not in conflict with federal laws, which shall
prevail.
H.
This article repeals all other ordinances prior to the date of its
enactment.
[Added 2-17-2016 by Ord.
No. 1300]
A.
Title. This section shall be known as the "Lansdowne Police Act 44
Retirement Program."
B.
BOROUGH
ACT 44 PROGRAM
ACT 44 PROGRAM ACCOUNT
FUND or PLAN
PARTICIPANT
POLICE OFFICERS
RESIGNATION DATE
Definitions. When used in this section, the below words shall have
the meaning indicated.
Borough of Lansdowne, Delaware County, Pennsylvania.
The Act 44 Deferred Retirement Option Program referred to
in the Collective Bargaining Agreement between the Delaware County
Pennsylvania FOP Lodge No. 27 and the Borough of Lansdowne.
A separate ledger account created to accept Act 44 Program
participants' monthly pension benefit while an Act 44 Program
participant, as well as any interest thereon.
The Lansdowne Borough Police Pension Plan.
A police officer who meets the eligibility for and has executed
the proper documents for participation in Act 44 Program and has had
such application approved by the Borough.
Police officers of the Lansdowne Police Department.
The date the participant exits Act 44 Program.
C.
Eligibility. Eligibility for the Act 44 Program shall be determined
as follows:
(1)
Police officers who have not retired prior to the implementation
of the Act 44 Program may enter into the Act 44 Program on the first
day of the month following completion of 25 years of credited service
and attaining the age of 50 (the superannuation date as defined by
the pension plan).
(2)
If the officer completed 25 years of credited service and attained
the age of 50 prior to January 1, 2016, the officer shall be eligible
to enter the program effective January 1, 2016.
D.
Election to participate. Eligible officers who wish to be participants
in the Act 44 Program must signify the intention to enter the Act
44 Program in writing as follows:
(1)
A police officer electing to participate in the Act 44 Program must
complete and execute an "Act 44 Program participation election form"
prepared by the Borough, which shall evidence the member's election
to participate in the Act 44 Program. The Act 44 Plan participation
election form shall include an irrevocable notice to the Borough,
by the police officer member, that the police officer shall resign
from employment with the Police Department effective on a specific
date (the "resignation date"). In no event shall the resignation date
be later than 36 months from the first day of the month following
their superannuation retirement date (unless the officer was already
eligible for superannuation retirement prior to the enactment of the
Act 44 Program, in which event the thirty-six-month period shall begin
the first day of the month following the enactment of the Act 44 Program,
or as of any earlier date the officer elects to participate pursuant
to this Act 44 Program, but not earlier than January 1, 2016). A police
officer shall cease to work as and may no longer be employed as a
police officer on the officer's resignation date, unless the
Borough properly terminates or honorably discharges the officer prior
to the resignation date. A participant may resign from employment
while in Act 44 Program status, which shall terminate his/her participation
in the Act 44 Program.
(2)
In addition to the above information, the Act 44 Program participation
election form shall also advise the employee of the following: (1)
an explanation of the participant's rights and obligations while
in the Act 44 Program; (2) that, as a condition of Act 44 Program
participation, the participant foregoes active participation in the
Police Pension Plan and foregoes any recalculation of pension benefits
to include salary increases occurring after Act 44 Program participation
commences; and (3) that the Act 44 Program participant's service
while in Act 44 Program will not count as pension service nor will
it entitle a participant to any service increment benefits to which
the participant was not entitled prior to commencing Act 44 Program
participation. An Act 44 Program participant must also complete any
and all retirement documents required by the Police Pension Plan Administrator,
and such documents must be filed and presented to the Borough for
approval of retirement and any payment of pension. Once an Act 44
Program participation election form has been approved by the Borough,
it is irrevocable. Likewise, once an Act 44 Program participant enters
the Act 44 Program, the participant may not subsequently leave and
then re-enter the Act 44 Program, even if the employee separates from
employment and subsequently begins employment with the Borough again.
(3)
The maximum period of time during which an officer can participate
in a drop shall be 36 months.
E.
Benefit Calculation. For all pension plan purposes, continuous service
of a police officer participating in the Act 44 Program shall remain
as it existed on the effective date of commencement of participation
in the Act 44 Program. Service thereafter shall not be recognized
or used for the calculation or determination of any benefits payable
by the Borough Police Pension Plan. The average monthly compensation
of the police officer for pension calculation purposes shall remain,
as it existed on the effective date of commencement of participation
in the Act 44 Program. Earnings or increases in earnings thereafter
shall not be recognized or used for the calculation or determination
of any benefits payable by the Pension Plan. The pension benefit payable
to the members shall increase only as a result of cost of living adjustments
in effect on the effective date of the member's commencement
of participation in the Act 44 Program (if any) or by applicable cost
of living adjustments granted thereafter.
F.
Accumulation of the Act 44 Program Account. The monthly retirement
benefits that would have been payable had the police officer elected
to cease employment and receive a normal retirement benefit, shall,
upon the police officer commencing participation in Act 44 Program,
accumulate to the benefit of that officer and be accounted for on
that police officer's Act 44 Program Account. Participants shall
not have the option of self-directed investment of their individual
Act 44 Program Account while in the Act 44 Program. Instead, the monies
shall be invested in a fund to be identified and selected solely by
the Borough in accordance with applicable law so as to generate a
rate of return of no less than 0% and no more than 4.5%.
G.
Accrual of nonpension benefits. After a police officer elects to
participate in the Act 44 Program, all other contractual benefits
shall continue to accrue with the exception of those provisions relating
to the Police Pension Plan and service-connected disability pensions.
H.
Payout. Upon separation from employment, the Act 44 Program payout
options available to the Act 44 Program participant shall be as follows:
(1)
The balance of the Act 44 Program participant's account, less
withholding taxes, if any, remitted to the Internal Revenue Service,
shall be paid to the participant or the participant's surviving
beneficiary.
(2)
The balance of the Act 44 Program participant's account shall
be paid directly to the custodian of an eligible retirement plan as
defined by Internal Revenue Code Section 402(c)(8)(b), or in the case
of an eligible rollover distribution to the surviving spouse of a
deceased Act 44 Program participant, an eligible retirement plan that
is an individual retirement account or an individual retirement annuity
as defined by Internal Revenue Code Section 402(c)(9).
I.
Service-connected disability while a participant in the Act 44 Program.
If an Act 44 Program participant becomes temporarily incapacitated
due to a service-connected injury during his participation in Act
44 Program, that police officer shall continue to participate in the
Act 44 Program. The police officer shall receive disability pay in
the same amount as disabled police officers that are not participating
in Act 44 Program. In no event shall a police officer on temporary
disability have the ability to draw from his Act 44 Program account.
However, notwithstanding any other provision in this subsection, if
a police officer is disabled and has not returned to work as of the
date of his required resignation, 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 police officer or other person
to a continuation of employment nor shall participation in the Act
44 Program supersede or limit in any way the right of the Borough
to honorably discharge a police officer based upon an inability to
perform his or her full duties as a police officer. If an Act 44 Program
participant becomes eligible for a service-connected disability pension
and his employment is terminated due to an inability to continue in
service on grounds that render him eligible for a service-connected
disability pension, the monthly normal retirement benefit of the Act
44 Program participant shall be reclassified as being on account of
a service-connected disability. In no event shall an ACT 44 participant's
monthly retirement benefit be recalculated. The ACT 44 participant's
monthly retirement benefit shall remain 50% as calculated at the time
of entry into the Act 44 Program. The pension benefit payable to the
member shall increase only as a result of the cost of living adjustments
in effect on the effective date of the member's commencement
of participation in the Act 44 Program (if any) or by applicable cost
of living adjustments granted thereafter.
J.
Death. If an Act 44 Program participant dies, the participant's
eligibility for Act 44 Program shall terminate upon the date of death.
In such case, if the Act 44 Program account balances have not yet
been paid out, the participant's legal beneficiary shall have
the same rights and options as the participant to withdraw/roll over
the account balance.
K.
Forfeiture of benefits. Notwithstanding a police officer's status
as an Act 44 Program participant, a current or former participant
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 through 1314, shall forfeit his
right to receive a pension, including any amounts currently deposited
in the Act 44 Program Account. In such a case, the participant shall
only be entitled to receive the contributions, if any, made by the
participant to the Police Pension Fund, without interest.
L.
Cost of management for Act 44 Program. The police officers and the
Borough agree that any costs or fees associated with the management
of the Act 44 Program accounts shall be paid directly from the Pension
Fund and not by the Borough.
M.
Amendment. Any amendments to this Act 44 Program section shall be
consistent with the provisions covering individual retirement option
plans set forth in any applicable collective bargaining agreement
and shall be binding upon all future Act 44 Program participants and
upon all Act 44 Program participants who have balances in their individual
retirement option accounts. The Act 44 Program may only be amended
by a written instrument, not by any oral agreement or past practice.
N.
Construal of provisions. A police officer's election to participate
in the Act 44 Program shall in no way be construed as a limitation
on the Borough's right to suspend or to terminate a police officer
for just cause or to grant the police officer an honorable discharge
based upon a physical or mental inability to perform his or her duties.
O.
Severability. The provisions of the Act 44 Program 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
Act 44 Program shall not be affected thereby. It is hereby expressly
declared as the intent of the Borough that the Act 44 Program would
have been adopted had such unconstitutional or illegal provision or
provisions not been included herein.
P.
Effective date. The effective date of the Act 44 Program shall be
the date it is enacted.