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City of Easton, PA
Northampton County
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Table of Contents
Table of Contents
[Adopted 12-22-1994 by Ord. No. 3352 (Secs. 147.10 through 147.56 of the 1965 Codified Ordinances)]
A. 
As of the effective date of this article, the City will cease to participate in the Pennsylvania Municipal Retirement System ("system") on behalf of its police officers. Subsections (a), (b), (c) and (e) of Original Section 147.20 of the administrative code adopted by Ordinances 2476 and 2909 are hereby repealed.
B. 
As of the effective date of this article, all full-time sworn police officers shall be covered by the City of Easton Police Association Pension Plan effective January 1, 1995, attached hereto and made a part hereof, consisting of §§ 110-10 through 110-22, and which is hereby adopted and shall supersede and repeal the former Pennsylvania Municipal Retirement System.
C. 
An application under Section 881.316 of the Pennsylvania Municipal Retirement Law shall be filed with the Pennsylvania Municipal Retirement Board ("Board") setting forth the decision to withdraw from the system and directing that a transfer of the funds accumulated on behalf of the police officers of the City of Easton in the system be made to the City of Easton Police Association Pension Plan. Subsections A and B hereof shall be effective upon the Board's approval of such application.
D. 
The foregoing subsections shall be null and void if the system refuses to transfer such amounts to the City of Easton Police Association Pension Fund.
E. 
A duly certified copy of this article shall be filed with the Board.
A. 
Whereas, the City of Easton, Pennsylvania ("City"), through various public ordinances, created the City of Easton Police Association Fund to provide retirement and survivor benefits for members of the Police Association; and
B. 
Whereas, the City makes an annual contribution to a fund to provide the benefits described in the ordinances collectively known as the City of Easton Police Association Pension Plan ("plan"); and
C. 
Whereas, the plan is administered by a group of seven persons who shall be officers of the City or residents thereof, or corporation located therein, to be designated by Council, and known as the Police Pension Commission; and
D. 
Whereas, through Ordinance 2476, effective December 13, 1978, the City elected to join the Pennsylvania Municipal Retirement System ("PMRS") for police officers hired after December 13, 1978, and excluded those policemen from coverage under the plan; and
E. 
Whereas, the City and the union representing the police officers, Washington Lodge No. 17 Fraternal Order of Police (the "union"), have agreed that, effective as set forth below, all police officers employed by the City should be covered by and receive benefits under the terms of the plan; and
F. 
Whereas, the City and the union have agreed, pending a favorable determination by the Internal Revenue Service, to withdraw from PMRS, cover all eligible police officers under the plan, and to cause the trustees of PMRS to transfer directly to the fund under the plan the amounts standing to the credit in PMRS of the police officers of the City covered by PMRS; and
G. 
Whereas, the City and the union have agreed to state the terms of the plan heretofore recited in various municipal ordinances in a single document to be adopted by the Police Pension Commission, made effective upon the passage of an ordinance, and submitted to the Internal Revenue Service for a favorable determination letter;
H. 
Now, therefore, the City of Easton Police Association Pension Plan is set forth herein effective January 1, 1995, and as otherwise specifically set forth.
A. 
Except where otherwise clearly indicated by context, the masculine shall include the feminine and the singular shall include the plural, and vice versa.
B. 
As used in this article, the following terms shall have the meanings indicated:
ACTUARY
The actuarial firm or individual selected by the fund from time to time, provided that all applicable government requirements for enrollment are satisfied.
ADMINISTRATOR
The person(s), if any, to whom the Police Pension Commission has delegated administrative responsibilities under the plan.
AGREEMENT DATE
January 1, 1995, or such later date that funds are actually transferred to the fund from the PMRS and the agreement between the City and the union with respect to participation in the plan and fund by employees hired after December 13, 1978, is effective.
CITY
The City of Easton of the Commonwealth of Pennsylvania.
CODE
The Internal Revenue Code of 1986, as amended from time to time.
COLLECTIVE BARGAINING AGREEMENT
At any time, the labor agreement between the City and the union which is then in effect.
COMMISSION
The Police Pension Commission and individually the persons who supervise the administration of the plan as provided in § 110-19. The Commission shall be comprised of nine persons to be designated by the Council as follows:
[Amended 12-12-2001 by Ord. No. 4049; 9-27-2006 by Ord. No. 4853]
(1) 
The Mayor or his designee.
(2) 
The Director of Finance or his designee.
[Amended 2-11-2009 by Ord. No. 5156]
(3) 
Chief of Police or his designee.
(4) 
Chairperson, in his/her absence, Vice Chairperson, of the City Council's Police and Fire Committee.
(5) 
The President, Vice President, Secretary and Treasurer of the Police Association, by virtue of their respective offices during their respective terms of office in the Police Association. The Police Association may also appoint up to four alternate delegates to serve in the absence of the President, Vice President, Secretary or Treasurer.
(6) 
A ninth representative as selected by a majority of the eight members of the Commission, with a term to run concurrently with the term of office of the City Controller. In the event the ninth member is not selected within 30 days after this article becomes effective, the ninth member shall be the City Controller and/or his/her designee.
(7) 
Designees and alternate delegates shall have the same powers, duties, and obligations of voting members for whom they are substituting.
(8) 
The Commission shall meet as needed.
COMPUTATION PERIOD
For any employee the twelve-month period beginning on the employee's date of employment by the City or on any anniversary of such date and ending on the day before the anniversary thereof.
COUNCIL
The City Council of the City.
EFFECTIVE DATE
(Except as otherwise set forth herein) January 1, 1995, the effective date of this plan document. Pension benefits for members of the Police Association were originally effected by an ordinance first effective on July 1, 1923.
EMPLOYEE
Any sworn employee of the City who is a member of the Bureau of Police of the City and either covered under the collective bargaining agreement or the Chief of Police or a Captain in the Bureau of Police of the City. Provided, however, that, until the agreement date, a person originally hired by the City on and after December 13, 1978, was not an employee for purposes of the plan.
EMPLOYMENT DATE
The date on which an employee first performs an hour of service for the City.
FUND
The fund established by ordinance and known as the "City of Easton Aggregated Pension Trust Fund," out of which benefits payable under this plan shall be paid and to which contributions by the City and the employees shall be made.
LATE RETIREMENT DATE
The first day of the calendar month coincident with or next following the date on which a participant retires from employment with the City, provided that such retirement occurs after the participant's normal retirement date. The continued employment of an employee beyond the employee's normal retirement date shall be in accordance with City policy and applicable law.
LIMITATION COMPENSATION
For any participant:
(1) 
The participant's wages, salary, fees for professional services, and other amounts received for personal services rendered in the course of employment with the City, to the extent that such amounts are includable in gross income, and regardless of whether an amount is paid in cash, including (but not limited to) commissions paid to salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, reimbursements, and expense allowances; foreign earned income, whether or not excludable from gross income under Section 911 of the Internal Revenue Code; taxable amounts received by the participant through accident or health insurance for personal injury or sickness or from a self-insured medical expense reimbursement plan; moving expenses paid or reimbursed by the City in excess of any amount deductible by the participant; and wages or payments in lieu of wages received on account of absence from work for permanent and total disability.
(2) 
"Limitation compensation" shall exclude the following:
(a) 
Contributions made by an employer to a qualified plan to the extent that, before the application of Section 415 of the Internal Revenue Code to that plan, the contributions are not includable in the gross income of the participant for the year in which contributed;
(b) 
Employer contributions on behalf of an employee to a simplified employee pension plan;
(c) 
Any distributions from a plan of deferred compensation, except that any amounts received by an employee pursuant to an unfunded nonqualified plan may be included in the year that such amounts are included in gross income;
(d) 
Other amounts which receive special tax benefits, such as premiums for group term life insurance to the extent not includable in gross income, or contributions made by an employer toward the purchase of an annuity contract described in Section 403(b) of the Internal Revenue Code.
LIMITATION YEAR
The plan year or such other twelve-consecutive-month period as may be designated by the City.
NORMAL RETIREMENT AGE
For any participant, the later of:
(1) 
His 50th birthday; and
(2) 
The 20th anniversary of the date on which he became an employee.
NORMAL RETIREMENT DATE
The first day of the calendar month coincident with or next following a participant's attainment of normal retirement age.
PARTICIPANT
An employee who is participating in this plan in accordance with its terms; a former employee receiving benefits under the plan; and a former employee who has a present or future right to receive benefits under the plan.
PENSIONABLE COMPENSATION
The annual salary plus degree pay, longevity pay, personal day buyback, holiday pay, scheduled shift differential, and acting rank pay for regularly scheduled shift of a participant on the date in question.
PLAN
The City of Easton Police Association Pension Plan, as set forth in various municipal ordinances and set forth herein (including any schedules) and as hereafter amended from time to time.
PLAN YEAR
The calendar year (January 1 through December 31).
PMRS
The Pennsylvania Municipal Retirement System as established by the Pennsylvania Municipal Retirement Law, February 1, 1974, P.L. 34, No. 15, § 101.
PMRS ACCOUNT
The separate account established by the Commission under the fund to hold amounts which include member's contributions and any interest or excess interest credited to the participant's account by PMRS that are transferred from PMRS to the fund on behalf of a participant as more fully explained in § 110-21.
POLICE ASSOCIATION
The City of Easton Police Association.
REEMPLOYMENT DATE
The first day on which a former employee performs an hour of service for the City as a rehired employee.
SEVERANCE DATE
The date, as recorded on the records of the City, on which an employee quits, retires, is discharged, or dies, or, if earlier, the first anniversary of the first day of a period during which the employee remains absent from service with the City (with or without pay) for any other reason expressly provided in § 110-12A(2).
SPOUSE
The person to whom a participant is married on any date of reference.
UNION
Washington Lodge No. 17 of the Fraternal Order of Police.
YEARS OF SERVICE
The number of computation periods counted with respect to determining an employee's vested status and eligibility for benefits under the plan, as further described in § 110-12.
A. 
Date of participation.
(1) 
Each person who was participating in the plan immediately prior to the effective date and who is an employee on the effective date shall be a participant hereunder as of the effective date.
(2) 
Each employee hired by the City on and after December 13, 1978, but before the agreement date shall not be a participant until the agreement date.
(3) 
Each other employee hired by the City on and after the agreement date shall become a participant on his date of hire.
B. 
Participation after reemployment.
[Amended 9-30-1997 by Ord. No. 3518]
(1) 
A participant whose employment is terminated and who is later reemployed as an employee shall resume his participation in the plan as of the date of his reemployment.
(2) 
In case of any reemployed participant, credit with respect to previous service for any purpose shall be granted only if such reemployed participant repays to the fund the amount of all previous distribution made on account of such previous employment. Repayment of the previous distribution shall be made within 24 months of reemployment unless extended by the Police Pension Commission for cause due to extraordinary circumstances. Otherwise, the reemployed participant shall only be granted credit for any purpose under the plan for service from his most recent date of employment.
(3) 
In the case of any reemployed participant, the decision regarding repayment of all previous distribution made on account of such previous employment shall be made in writing within 30 days of reemployment by the City.
(4) 
Interest on any unpaid previous distribution shall be made and shall be at the City's actuarial assumed rate of interest and shall accrue from the date of previous distribution until the date of full repayment.
A. 
Service for vesting.
(1) 
An employee shall earn a year of service for all employment with the City as an employee. Years of service shall be calculated from the employee's employment date or reemployment date to his severance date, subject to the rules set forth below.
(2) 
Relief days, vacation periods, suspension from duty, or leaves of absence that are under one year shall not affect service and need not be continuous.
(3) 
Beginning on August 5, 1993, an employee shall earn credit toward a year of service for any period during which he is absent from work on unpaid leave under the Family and Medical Leave Act of 1993.
B. 
Partial years. Years of service shall be calculated on the basis of completed days. A partial year of service shall be awarded for any portion of a year of employment that does not constitute a full year based upon the ratio that the number of such days bears to 365.
A. 
Normal retirement. A participant who is employed when he attains normal retirement age shall immediately become fully vested in his accrued benefit and shall be eligible for normal retirement benefits on his normal retirement date, provided he retires on his normal retirement date. His benefits shall be paid to him in accordance with the provisions of §§ 110-15A, B, C and 110-17.
B. 
Late retirement. If a participant continues his employment with the City beyond his normal retirement date, he shall be eligible for normal retirement benefits commencing on his late retirement date. His benefits shall be paid to him in accordance with the provisions of §§ 110-15A, B, C and 110-17. Any such person who has not less than 20 years of service and who has attained the age of 70 shall be automatically retired.
C. 
Disability retirement.
(1) 
A participant who has not less than 15 years of service who shall be deemed unfit or incapacitated physically or mentally from performing active service, may, upon recommendation by the Director of the Department in charge, be ordered placed upon the retired list by Council and eligible for pension benefits in accordance with § 110-15A. Any such person who shall have served not less than 15 years may request, or the Mayor may direct, an examination by the physician of the Civil Service Commission or such other reputable physician as may be designated as to physical or mental fitness for active service; a report of such examination shall be made in writing to the Mayor, upon which, retirement may be directed by Council, and pension benefits shall be paid as aforesaid. A certification of each such retirement shall be made to the Police Association in writing.
(2) 
Should a participant become permanently disabled as to render him unable to perform the duties of his position after 12 years of service but prior to 15 years of service, regardless of the age of such participant, he shall be entitled to receive such portion of the full pension described in § 110-15A as the period of his service up to the date of his termination bears to 15 years of service.
(3) 
Should a participant with 12 or fewer years of service become so permanently disabled as the result of an on-duty injury sustained while in the lawful performance of his duties as to render him unable to perform the duties of his position, regardless of the age of such participant, he shall be entitled to receive such portion of the pension provided in § 110-15A as the period of his service up to the date of his termination bears to 20 years of service.
(4) 
A pension payable in the event of disability described in this section shall commence on the first day of the calendar month coincident with or after the determination by the Police Pension Commission that all events have occurred entitling the participant to such pension.
D. 
Furnishing data. Each employee and beneficiary shall furnish such information as the Police Pension Commission may consider necessary for the determination of his rights and benefits under the plan and shall otherwise cooperate fully with the Commission in the administration of the plan. Benefit commencement shall be deferred until all of such information is provided.
[Added 7-10-2007 by Ord. No. 4989]
A. 
"Early Retirement Incentive Program" shall be defined as a program offered by the City to some or all plan participants, that provides an enhanced level of retirement benefits for plan participants who have not yet reached normal retirement.
B. 
Subject to its obligations pursuant to the Pennsylvania Labor Relations Act, 43 P.S. § 211.1 et seq.; Act 111, 43 P.S. § 217.1 et seq.; and all other applicable state and federal laws and regulations, the City may by ordinance enact, from time to time, early retirement incentive programs which provide for limited periods during which the prerequisites for benefits and benefit levels set forth in this plan may be modified for plan participants who may qualify for the program, as defined by the City.
A. 
Normal retirement.
(1) 
A participant who is eligible for normal retirement benefits shall receive an annual pension, payable monthly, which is equal to 1/2 of the employee's pensionable compensation on his normal retirement date.
(2) 
The minimum pension payable under this section shall be $3,000 per year.
B. 
Late retirement.
(1) 
A participant who is eligible for late retirement benefits shall receive an annual pension, payable monthly, which is equal to the amount calculated under § 110-15A using the participant's pensionable compensation on his late retirement date.
(2) 
In addition to the pension provided in Subsection B(1) hereof, a participant shall also be entitled to the payment of a service increment, in accordance with and subject to the conditions hereinafter set forth:
(a) 
The service increment shall be obtained by computing the number of whole years after having served the minimum of 20 years during which a participant has been employed by the City and paid out of the City Treasury, including credit for military service as provided in this plan, and multiplying the number of years so computed by an amount equal to 2.5% of pensionable compensation for each year of service to a maximum of 75% of pensionable compensation after 30 years of service. In computing the service increment, no employment after the participant has reached the age of 60 years shall be included.
[Amended 5-28-1997 by Ord. No. 3498]
(b) 
A person who is a participant on January 1, 1952, who has already reached the age of 60 years, shall have his service increment computed on the years of employment prior to the date of reaching his 60th birthday.
(c) 
Service increment contributions shall be paid at the same time and in the same manner as retirement contributions and may be withdrawn in full, without interest, by participants who leave the employment of the City, subject to the same conditions by which retirement contributions may be withdrawn.
C. 
Death benefits. Any participant who is killed while in the performance of his duties, or who dies from injuries sustained while in the performance of his duties, shall be entitled to the full pension described in § 110-15A, which shall be paid to his surviving spouse, if any, during the remainder of such surviving spouse's life, provided the family relation exists between the deceased participant and the surviving spouse such as would enable such surviving spouse to take under the intestate laws of Pennsylvania. In the event such deceased participant leaves children to survive him, but no surviving spouse, then such payments shall be paid equally, share and share alike, to such surviving children of the deceased participant, until the children reach the age of 18 years; such payments to be made through a legally appointed guardian. As each child reaches the age of 18, the share of such child in the pension shall cease, and the pension shall be divided equally or go entirely to such child or children as are still under the age of 18 until finally all children have reached the age of 18, when and in such case the pension shall terminate. Any payment under this section shall be in lieu of the benefits described in § 110-15D.
[Amended 10-28-1998 by Ord. No. 3627]
D. 
Death benefit for spouses and children.
[Amended 10-28-1998 by Ord. No. 3627]
(1) 
Death on and after January 3, 1972.
(a) 
Until death, the surviving spouse of:
[1] 
Any participant who dies on and after January 3, 1972; or
[2] 
Any participant who dies on and after January 3, 1972, while retired on pension, shall be entitled to receive a pension equal to the pension the retired participant was receiving or would have been entitled to receive had he been retired at the time of his death, provided that such surviving spouse had a family relationship to the deceased as would entitle the surviving spouse to elect to take against the deceased participant's will under the laws of the Commonwealth of Pennsylvania, as such election right is now defined by law.
(b) 
If no spouse survives any participant referred to in Subsection D(1)(a) hereof, or if such spouse who survives does not have such family relationship to the deceased participant as would entitle the surviving spouse to elect to take against the deceased participant's will under the laws of the Commonwealth of Pennsylvania, or if such surviving spouse then dies and the participant died leaving child or children to survive, then each such child surviving the death as aforesaid shall be entitled to receive an equal share of the aforesaid pension until that child shall attain the age of 18 years. As each child attains 18 years of age, such child shall cease to have pension rights, and the pension shall be distributed equally to such child or children who have not attained 18 years of age. All pension rights under this subsection shall cease when the youngest surviving child attains the age of 18 years.
(2) 
The benefits provided by § 110-15 shall in no case be determined to be vested rights until the occurrences of facts entitling the beneficiary to enjoyment thereof. The power to modify the benefits herein granted is expressly reserved to the City.
(3) 
There is hereby established for every surviving spouse presently receiving and otherwise entitled to pension benefits under § 110-15, a minimum pension of $3,000 per year.
E. 
Maximum benefit. The provisions of this section shall be effective January 1, 1987, and shall be construed to comply with Section 415 of the Internal Revenue Code.
(1) 
Limitation.
(a) 
Notwithstanding anything in § 110-15 to the contrary, in no event shall the combined annual benefit attributable to the City's contributions of a participant payable on a single life basis (or, if applicable, as a qualified joint and survivor annuity) under this and any other defined benefit plan to which the City contributes exceed the lesser of:
[1] 
Ninety thousand dollars (as adjusted by the Internal Revenue Service to reflect cost-of-living increases); or
[2] 
One hundred percent of the participant's average limitation compensation during the three consecutive calendar years of participation hereunder in which his limitation compensation is the highest.
(b) 
If the retirement income benefit under the plan begins before the participant attains age 62, the determination as to whether the ninety-thousand-dollar limitation set forth in Subsection E(1)(a)[1] hereof has been satisfied shall be made, in accordance with regulations prescribed by the Secretary of the Treasury, by reducing the ninety-thousand-dollar limitation of Subsection E(1)(a)[1] hereof so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to a ninety-thousand-dollar annual benefit beginning at age 62. The reduction under this Subsection E(1)(b) shall not reduce the dollar limitation of Subsection E(1)(a)[1] hereof.
[1] 
Seventy-five thousand dollars if the benefits begin at or after age 55; or
[2] 
If the benefits begin before age 55, the equivalent of the seventy-five-thousand-dollar limitation for age 55.
(c) 
If a participant's retirement benefits begin after the participant has attained age 65, the dollar limitation in Subsection E(1)(a)[1] hereof shall be increased to its actuarial equivalent at the date of commencement, using an interest rate of 5%.
(d) 
For a participant with 15 years of service, Subsection E(1)(b) hereof shall not reduce the dollar limitation of Subsection E(1)(a)[1] hereof to an amount less than $50,000.
(e) 
Notwithstanding the limitations set forth in the other provisions of this subsection (a), the benefits payable under this plan with respect to a participant shall be deemed not to exceed the limitations of this Subsection E(1), if:
[1] 
The benefits payable with respect to such participant under this plan and all other defined benefit plans maintained by the City do not exceed $10,000 for the plan year or for any prior plan year; and
[2] 
The City has not maintained a defined contribution plan in which the participant participated.
(f) 
If the benefit is payable to a participant:
[1] 
Who has fewer than 10 years of participation in the plan at the time that retirement benefits begin, the dollar limitation described in Subsection E(1)(a)[1] hereof shall be multiplied by a fraction, the numerator of which is the participant's year of participation in the plan (or part thereof) and the denominator of which is 10; and
[2] 
Who has fewer than 10 years of service at the time that retirement benefits begin, the percentage of earnings limitation described in Subsection E(1)(a)[2] hereof and the special limit set forth in Subsection E(1)(d) hereof shall be multiplied by a fraction, the numerator of which is the participant's years of service and the denominator of which is 10.
[3] 
Computation of participant's years of participation:
[a] 
For purposes of determining a participant's years of participation for the adjustment to the dollar limitation of Subsection E(1)(a)[1] hereof required by Subsection E(1)(e)[1] hereof, the participant shall be credited with a year of participation (computed to fractional parts of a year) for each computation period for which the following conditions are met: the participant is credited with at least the number of hours of service required under the terms of the plan in order to accrue a benefit for the computation period, and the participant is included as a participant under the eligibility provisions of the plan for at least one day of the computation period. If these two conditions are met, the portion of a year of participation credited to the participant shall equal the percentage of a full year of credited service credited to the participant for such computation period.
[b] 
A participant who is permanently and totally disabled within the meaning of Section 415(c)(3)(C)(i) of the Internal Revenue Code for a computation period shall receive a year of participation with respect to that period.
[c] 
For a participant to receive a year of participation (or part thereof) for a computation period, the plan shall be established no later than the last day of such period. In no event shall more than one year of participation be credited for any twelve-month period.
[4] 
In no event shall the provisions of this Subsection E(1)(f) reduce any of the limitations described in Subsections E(1)(a) and (d) hereof to an amount less than 1/10 of such limitation.
[5] 
Subsection E(1)(f)[1] hereof shall be applied separately with respect to each change in the benefit structure of the plan.
(2) 
Exclusions from limitation.
(a) 
Any contributions made by an employee under § 110-21A shall be deemed to constitute a separate defined contribution plan. The benefit subject to the limit of Subsection E(1) hereof shall not include any benefit attributable to such employee contributions. The portion of the benefit attributable to employer contributions and subject to Subsection E(1) hereof shall be determined by converting the employee contributions to an annual benefit amount pursuant to Section 411(c)(2)(B) of the Internal Revenue Code and subtracting such amount from the total annual benefit.
(b) 
The annual additions under any defined contribution plan shall not exceed the lesser of:
[1] 
Thirty thousand dollars or, if greater, 1/4 of the dollar limitation in effect under Section 415(b)(1)(A) of the Internal Revenue Code; or
[2] 
Twenty-five percent of such participant's limitation compensation for the year.
(c) 
"Annual additions" means the sum of:
[1] 
Employer contributions;
[2] 
Forfeitures; and
[3] 
The participant's own after-tax contributions.
(3) 
If in any limitation year a participant is also a participant in one or more defined contribution plans sponsored by the City, the annual benefit referred to in Subsection E(3)(a) hereof shall be reduced, if necessary, so that the sum of the fractions described in Subsections E(3)(a) and (b) hereof does not exceed one for such limitation year.
(a) 
Defined benefit fraction.
[1] 
A fraction, the numerator of which is the participant's "projected annual benefit" under the defined benefit plans sponsored by the City in which he has participated, determined as of the close of the limitation years of such plans, and the denominator of which is the lesser of:
[a] 
1.25 x $90,000 (as adjusted by the Internal Revenue Service to reflect cost-of-living increases); or
[b] 
One hundred forty percent of the participant's highest average limitation compensation over any three consecutive calendar years.
[2] 
In calculating the adjustments required by Subsection E(1)(e) hereof for purposes of determining the denominator of the defined benefit fraction for any limitation year, the years of participation or years of service (as applicable) that are used shall include future years occurring before the participant's normal retirement age. For purposes of the preceding sentence, years of participation or years of service (as applicable) may include the future year which includes the date on which the participant will reach normal retirement age, provided that it can be reasonably anticipated that the participant will receive a year of participation or a year of service (as applicable) for such year. In projecting years of participation or years of service for future years, it may be assumed that a participant is a full-time employee if he is currently a full-time employee.
(b) 
Defined contribution fraction. A fraction, the numerator of which is the sum of the "annual additions" to the participant's accounts under all defined contribution plans sponsored by the City for all limitation years, and the denominator of which is the sum of the lesser of the following amounts, determined for each limitation year of service with the City:
[1] 
1.25 x $30,000; or
[2] 
Thirty-five percent of the participant's limitation compensation for such limitation year.
(c) 
Definitions.
[1] 
For the purpose of this subsection, "projected annual benefit" means the annual benefit to which a participant would be entitled under the terms of a defined benefit plan if he had continued employment until his normal retirement date under such plan and if his compensation for the purpose of such plan had continued at the same rate. "Annual additions" to a participant's accounts under any defined contribution plan for any limitation year means the sum of:
[a] 
Employer contributions;
[b] 
Forfeitures; and
[c] 
The participant's own after-tax contributions.
[2] 
A defined benefit plan sponsored by the City to which nondeductible employee contributions are made is considered to be a separate defined contribution plan, to the extent that the employee contributions constitute annual additions in the current and prior limitation years.
[3] 
Notwithstanding any other provision of this plan, the annual additions for any limitation year beginning before January 1, 1987, shall not be recomputed to treat all of a participant's own after-tax contributions as annual additions.
(4) 
Adjustments of dollar limitations; effect on accrued benefits.
(a) 
The dollar limitations described in Subsection E(1), (2) and (3) hereof shall be adjusted in accordance with governmental pronouncements stating the method and amount of such adjustments.
(b) 
The dollar limitations described in Subsection E(1), (2) and (3) hereof shall not reduce any benefit which was accrued by a participant under the plan prior to the first day of its limitation year beginning in 1983, using the applicable maximum dollar limitations then in effect; provided, however, that this sentence shall not apply to any participant unless he was a participant in the plan before January 1, 1983. For the purpose of this Subsection E(4)(b), no change in the plan after July 1, 1982, and no cost-of-living adjustment after July 1, 1982, shall be taken into account.
(c) 
The dollar limitations described in Subsection E(1), (2) and (3) hereof shall not reduce any benefit which was accrued by a participant under the plan prior to the first day of its limitation year beginning in 1987, using the applicable maximum dollar limitations then in effect; provided, however, that this sentence shall not apply to any participant unless he was a participant in the plan on January 1, 1983. For the purpose of this Subsection E(4)(c), no change in the prior plan after May 5, 1986, and no cost-of-living adjustment after May 5, 1986, shall be taken into account. Any change in the terms and conditions of this plan made pursuant to a collective bargaining agreement ratified before May 6, 1986, shall be treated as a change made before May 6, 1986.
(5) 
Alternate calculations.
(a) 
The Police Pension Commission may elect to apply Subsection E(3)(b) hereof with respect to any plan year ending after December 31, 1982, by calculating the denominator under Subsection E(3)(b) hereof using an alternate amount for all plan years ending before January 1, 1983. The alternate amount shall be equal to the amount determined for the denominator under Subsection E(3)(b) hereof as in effect for the plan year ending in 1982 multiplied by the transition fraction. The "transition fraction" shall be a fraction determined as follows:
[1] 
The numerator shall consist of the lesser of:
[a] 
Fifty-one thousand eight hundred seventy-five dollars; or
[b] 
Thirty-five percent of the participant's limitation compensation for the plan year ending in 1981.
[2] 
The denominator shall consist of the lesser of:
[a] 
Forty-one thousand five hundred dollars; or
[b] 
Twenty-five percent of the participant's limitation compensation for the plan year ending in 1981.
(b) 
Adjustment for limitation year ending after December 31, 1986.
[1] 
The Police Pension Commission may elect to apply Subsection E(3)(b) hereof with respect to any limitation year ending after December 31, 1986, by adjusting the numerator under Subsection E(3)(b) hereof by using an alternate amount for all limitation years beginning on or before December 31, 1986. The adjustment is to subtract permanently from the numerator of the defined contribution fraction an amount equal to the product of Subsection E(5)(b)[1][a] and [b] hereof:
[a] 
The sum of the defined contribution fraction and the defined benefit fraction as of the determination date minus one;
[b] 
Multiplied by the denominator of the defined contribution fraction as of the determination date.
F. 
Pension revocation or suspension. If any beneficiary of the fund is granted a pension as herein provided and shall thereafter be convicted of a crime or misdemeanor, or shall become a habitual drunkard or a habitual user of narcotics, or shall cease to care for and support his spouse and family, unless legally separated from them, or shall fail to comply with the provisions of the plan or to the bylaws of the Police Association, the Police Pension Commission shall have the power, by a majority vote, after a hearing, of which five days' notice shall be given the participant by registered mail to his last known address, at which hearing the participant, his counsel and witnesses shall be heard, revoke the pension or suspend payment thereof, or to direct the payment thereof to the spouse or family of such participant, and to order, if it deems best, that all rights of the participant in the fund shall be forfeited. The pension otherwise shall be payable to the participant until his death. No pension shall be paid to any person after the death of the participant except as hereinbefore provided in Subsection D.
A. 
Refund of contributions. If for any reason or cause any participant shall cease to be a member of the Police Association prior to his or her spouse or children being entitled to a pension under §§ 110-13 to 110-15, his right to a pension under the plan is hereby lost and forfeited except to the extent provided in § 110-16B. He shall be entitled to have returned to him, without interest, the total amount of:
(1) 
The contributions paid by him into the fund; and
(2) 
The value of the PMRS account in accordance with § 110-21D.
B. 
Vested benefit. Any employee having served 12 years or more with the Department and terminating his employment or having his employment terminated for any reason other than criminal misconduct before the expiration of 20 years of service shall be entitled to a refund of contributions in accordance with § 110-16A or shall be entitled to receive during the remainder of his life, after attaining the age of 50 years, such portion of the full benefit provided in § 110-15A as the period of his service, up to the date of its termination, bears to the full twenty-year period of service, provided that such employee has continued his contributions into the fund until he attains age 50.
A. 
Earliest and latest commencement of benefits. Distribution of a participant's benefits under this plan shall commence by the April 1 that follows the end of the calendar year in which the participant attains age 70 1/2. Such April 1 shall be the participant's "mandatory benefit commencement date."
B. 
Payment of benefits. Except as provided in §§ 110-16A, 110-21A and D, benefits shall be paid monthly in an amount equal to the benefit calculated under the plan. At the direction of the Police Pension Commission, benefits may be provided by an annuity contract purchased from an insurance company. The terms of such annuity contract shall prohibit the cash surrender of the annuity contract and shall make the payments due under the annuity contract nonassignable. The distribution of such annuity contract shall be in complete discharge of the plan's liability to the participant accepting the annuity contract.
C. 
Lost participant or beneficiary. If the Police Pension Commission is unable to pay benefits to a participant or beneficiary because the Commission cannot locate that participant or beneficiary, the participant's or beneficiary's benefit shall be forfeited as of the date that is three years after the date on which the benefit first becomes payable. However, if the participant or beneficiary is subsequently located or subsequently submits a written application for his benefit, the benefit shall be reinstated retroactively, without interest, no later than 60 days after the date on which the participant or beneficiary is located or his written application is received.
D. 
Mailing address. Benefit payments and notifications hereunder shall be deemed made when mailed to the last address furnished to the Police Pension Commission.
A. 
The fund. All of the assets of the plan shall be held by the fund for use in accordance with this plan in providing for the benefits hereunder.
B. 
Contributions to the fund.
(1) 
The benefits provided under the plan shall be financed exclusively by contributions made from time to time to the fund by the City, participant contributions, and amounts transferred from PMRS. Subject to the provisions of applicable law, the liability of the City under the plan shall be limited to the contributions determined by the City from time to time in accordance with the advice and counsel of the actuary and as required under collective bargaining agreement.
(2) 
The funding policy applicable to the fund shall be established by the Police Pension Commission and shall be reviewed from time to time.
C. 
Use of contributions to the fund.
(1) 
The contributions deposited under the terms of this plan shall constitute the fund held for the benefit of participants and their eligible survivors under and in accordance with this plan.
(2) 
No part of the corpus or income of the fund shall be used for or diverted to purposes other than exclusively for the benefit of participants and their eligible survivors and for necessary administrative costs.
(3) 
In the case of a contribution made by the City as a mistake of fact, such contribution shall be refunded to the City within one year after payment of the contribution.
D. 
Forfeitures. Forfeitures shall not be applied to increase the benefits of any participant but shall be used to reduce the City's contributions to the plan.
E. 
No rollovers or transfers permitted. No employee shall be permitted to roll over or transfer funds to the plan from an individual retirement account or individual retirement annuity from another qualified retirement plan or trust or from an annuity plan.
F. 
Expenses of administration. All expenses of administration of this plan shall be paid from the fund unless they are paid directly by the City.
G. 
Sole source of benefits. The fund shall be the sole source for the provision of benefits under the plan. Neither the City, the union, nor any other person shall be liable therefor.
A. 
Commission. The Police Pension Commission shall control and manage the operation of the plan and shall administer the plan. The Commission members shall be entitled to reimbursement of expenses. Members of the Commission shall not be entitled to compensation for their service on the Commission. Any reimbursement of the expenses of the Commission shall be paid directly by the fund. The Commission shall be responsible for the general administration of the plan under the terms of the plan, the ordinances establishing the plan, and the collective bargaining agreement.
B. 
Duties and powers of the Commission.
(1) 
The Police Pension Commission shall have all powers necessary to administer the plan in accordance with its terms, applicable law, and the collective bargaining agreement and shall also have discretionary authority to determine eligibility for participation or benefits and to construe the terms of the plan. Any construction, interpretation, or application of the plan by the Commission shall be final, conclusive, and binding on all persons subject to the terms of applicable law and the collective bargaining agreement.
(2) 
In addition to the duties and powers described elsewhere hereunder, the Commission shall have the following specific duties and powers:
(a) 
To enact uniform and nondiscriminatory rules and regulations to carry out the provisions of the plan;
(b) 
To resolve questions or disputes relating to eligibility for benefits or the amount of benefits under the plan;
(c) 
To interpret the provisions of the plan; and
(d) 
To evaluate administrative procedures.
C. 
Functioning of Commission.
(1) 
The Police Pension Commission and those persons or entities to whom the Commission has delegated responsibilities shall keep accurate records and minutes of meetings, interpretations, and decisions. The Commission shall act by majority vote of the members, and such action shall be evidenced by a written document.
(2) 
The expenses incurred by the Commission in connection with the operation of the plan, including, but not limited to, the expenses incurred by reason of the engagement of professional assistants and consultants, shall be expenses of the plan and shall be payable from the fund at the direction of the Commission.
D. 
Fund. Notwithstanding anything else herein, the fund shall be charged by ordinance with certain rights and duties concerning administration of the plan. The rights and duties of the fund as conferred by ordinance shall supersede any contrary provisions hereof.
A. 
No employment rights. Neither the action of the City in establishing the plan, nor any provisions of the plan, nor any action taken by the City or by the Police Pension Commission shall be construed as giving to any employee of the City the right to be retained in its employ or any right to payment except to the extent of the benefits provided in the plan to be paid from the fund.
B. 
Governing law. All questions pertaining to the validity, construction, and operation of the plan shall be determined in accordance with the laws of the Commonwealth of Pennsylvania.
C. 
Severability of provisions. If any provision of this plan is determined to be void by any court of competent jurisdiction, the plan shall continue to operate and, for the purposes of the jurisdiction of that court only, shall be deemed not to include the provision(s) determined to be void.
D. 
No interest in fund. No person shall have any interest in, or right to, any part of the principal or income of the fund, except as and to the extent expressly provided in this plan.
E. 
Spendthrift clause.
(1) 
No benefit payable at any time under this plan and no interest or expectancy herein shall be anticipated, assigned, or alienated by any participant or beneficiary, or subject to attachment, garnishment, levy, execution, or other legal or equitable process, except for a federal tax levy made pursuant to Section 6331 of the Internal Revenue Code.
(2) 
Any attempt to alienate or assign a benefit hereunder, whether currently or hereafter payable, shall be void. No benefit shall in any manner be liable for or subject to the debts or liability of any participant or beneficiary. If any participant or beneficiary attempts to or does alienate or assign his benefit under the plan or any part thereof, or if by reason of his bankruptcy or other event happening at any time such benefit would devolve upon anyone else or would not be enjoyed by him, then at the direction of the Police Pension Commission such benefit may be forfeited or the Commission may terminate payment of such benefit and hold or apply it for the benefit of the participant or beneficiary.
F. 
Incapacity. If the Police Pension Commission deems any participant who is entitled to receive payments hereunder to be incapable of receiving or disbursing the same by reason of youth, illness, infirmity or incapacity of any kind, the Commission may apply such payments directly for the comfort, support and maintenance of such participant or pay the same to any responsible person caring for the participant who is determined by the Commission to be qualified to receive and disburse such payments for the participant's benefit, and the receipt by such person shall be a complete acquittance for the payment of the benefit. Payments pursuant to this section shall be complete discharge to the extent thereof of any and all liability of the City, the Commission, the Administrator, and the fund.
G. 
Withholding. The Police Pension Commission and the City shall have the right to withhold any and all local, state, and federal taxes which are required to be withheld in accordance with applicable law.
H. 
Military service.
[Added 10-26-2011 by Ord. No. 5331]
(1) 
The rights of any returning veteran who resumes employment with the City on or after December 12, 1994, shall be modified as set forth in this subsection. Notwithstanding the foregoing, this subsection shall not apply if the returning veteran is not entitled to benefits under this plan but is instead entitled to benefits under the Pennsylvania Municipal Retirement System.
(2) 
The following definitions shall apply for purposes of this subsection:
QUALIFIED MILITARY SERVICE
Any service (either voluntary or involuntary) by an individual in the uniformed services if such individual is entitled to reemployment rights with the City with respect to such service. An individual's qualified military service shall include any absence from employment necessitated by service in the uniformed services, including absences required to prepare for service or to recuperate from injuries sustained in active duty.
RETURNING VETERAN
A former employee of the City who on or after December 12, 1994, returns from qualified military service to employment by the City within the period of time during which his/her reemployment rights are protected by law.
UNIFORMED SERVICES
The armed forces, the Army National Guard and Air National Guard (when engaged in active duty for training, inactive duty training, or full-time National Guard duty), the Commissioned Corps of the Public Health Service, and any other category of persons designated by the President of the United States in time of war or emergency.
(3) 
For purposes of § 110-11, a returning veteran who was participating in the plan immediately prior to his/her qualified military service shall be deemed to have continued participating in the plan throughout his/her qualified military service. A returning veteran who would have become eligible to participate in the plan during the period of his/her qualified military service, but for the resulting absence from employment, shall be deemed to have commenced participation in the plan as of the date he/she would have commenced participation in the plan if he/she had not entered in qualified military service.
(4) 
A returning veteran shall receive credit for vesting service under § 110-12 for the period of his/her qualified military service and will receive service increments under § 110-15, provided he/she makes the contributions required under Subsection H(5) below.
(5) 
A returning veteran's benefit under the plan will be increased to reflect his/her period of qualified military service once he/she has made the contributions required under § 110-21 in an amount equal to those which he/she would have made during his/her period of qualified military service.
(a) 
Such contributions must be made during the period starting with the date of reemployment with the City and ending with:
[1] 
The expiration of a period of five years; or
[2] 
If shorter, a period of three times the period of qualified military service.
(b) 
Such contributions may only be made while the returning veteran is an employee of the City and shall not include interest.
(6) 
For purposes of determining the amount of a participant's "pensionable compensation," and for applying the limits of § 110-15E, a participant's compensation during any period of qualified military service shall be deemed to equal either:
(a) 
The compensation he/she would have received but for such qualified military service, based on the rate of pay he/she would have received from the City; or
(b) 
If the amount described in Subsection H(6)(a) above is not reasonably certain, his/her average compensation from the City during the twelve-month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service). Such amount shall be adjusted as necessary to reflect the length of the participant's qualified military service.
(7) 
If a returning veteran received a distribution of all or a portion of his/her benefit as a result of his/her qualified military service, he/she shall be permitted to repay the amount of such distribution, plus interest. Such repayment shall be made during the period that begins with his/her reemployment with the City and ends with the expiration of a period of five years, or, if shorter, a period of three times the period of qualified military service, and may only be made while the returning veteran is an employee of the City.
(8) 
Effective January 1, 2007, notwithstanding any provision of the plan to the contrary, in the case of a participant who dies while performing qualified military service, the survivors of the participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the plan had the participant resumed then terminated employment on account of death. This provision shall be applied in accordance with guidance issued under Section 401(a)(37) of the Code.[1]
[1]
Editor's Note: See Internal Revenue Code.
(9) 
The City shall establish such rules and procedures as it deems necessary or desirable to implement the provisions of this article, provided that they are not in violation of the Uniformed Services Employment and Reemployment Rights Act of 1994, any regulations thereunder, or any other applicable law.
A. 
Contributions by payroll deduction.
(1) 
A participant is required to authorize the City to deduct from each paycheck 6% of pensionable compensation. A deduction of 6% of pensionable compensation shall be made from the amount paid to him during each pay period. Such amounts shall be remitted by the City to the Treasurer of the fund. The percentage to be deducted from each participant's pensionable compensation may be increased upon determination by the City after consulting with the actuary.
[Amended 5-28-1997 by Ord. No. 3498]
(2) 
Each participant on and after January 1, 1952, shall pay into the fund a monthly sum in addition to his or her retirement contribution, which shall be equal to 1/2 of 1% of his salary, provided that such payment shall not exceed the sum of $1 per month. Such service increment contribution shall not be paid after a participant has reached the age of 60 years.
B. 
Emergency appropriations; temporary payroll deductions. In case the funds derived from the various sources herein enumerated shall fall short of the necessary amount required for relief or pensions, payments may be temporarily suspended, and it shall be the duty of the officers of the Police Association to make a special report to Council, whereupon Council may make a special appropriation for relief. Also, upon petition of the Police Association to Council, the Director of Finance or their designee shall be directed to increase the retention and deduction for salaries or wages due on payrolls up to a maximum of 3% for a specified time. The foregoing provisions of this section shall not be construed to limit the right of the City, by ordinance, to maintain the fund by fixing an equal and proportionate monthly charge against each participant within the limits as provided by Section 4301 of the Third Class City Code.[1]
[Amended 7-22-2015 by Ord. No. 5502]
[1]
Editor's Note: See 53 P.S. § 39301.
C. 
Military service. Any participant who served in the armed forces of the United States subsequent to September 1, 1940, and who was not a participant prior to such military service, shall be entitled to have full credit for each year or fraction thereof, not to exceed five years, of such service. Such credit shall be granted upon his payment to the fund of:
(1) 
An amount equal to that which he would have paid had he been a participant during the period for which he desires credit; and
(2) 
The amount equal to the contributions which would have been made by the City during such military service.
D. 
PMRS accounts.
(1) 
The Police Pension Commission shall credit to a separate account established for each participant who previously participated in the PMRS an amount equal to the amount previously credited to the participant in the PMRS and transferred by the trustees of PMRS to the fund. Such account shall be known as the "participant's PMRS account." Such amounts without any interest earned from the time of transfer may be withdrawn by a participant who has terminated employment with the City and is not entitled to a benefit under §§ 110-15 and 110-16B.
(2) 
A participant or beneficiary shall cease to have a right to withdraw any amounts allocated to the PMRS account upon becoming eligible for a benefit under §§ 110-15 and 110-16B.
A. 
Power of amendment and termination. It is the intention of the City that this plan shall be permanent. However, the City reserves the power to amend or terminate the plan at any time by ordinance duly passed and in accordance with the laws of the Commonwealth of Pennsylvania. Any such amendment or termination shall become effective as of the date designated in such ordinance. Except as expressly provided elsewhere in the plan, prior to the satisfaction of all liabilities with respect to the benefits provided under this plan, no amendment or termination shall cause any part of the monies or other property contributed hereunder to revert to the City or to be diverted to any purpose other than for the exclusive benefit of participants and their beneficiaries. No amendment shall have the effect of retroactively depriving participants of benefits already accrued under the plan.
B. 
Disposition on termination. Upon termination, the rights of employees to benefits accrued to the date of such termination, to the extent funded, shall be nonforfeitable.