On each January 1 following his date of retirement, a member shall have his pension increased in proportion to the increase in the Philadelphia Area Consumer Price Index for the twelve-month period ending on the October 31 preceding the date of increase, subject to the following conditions:
A. 
The increase due on the first January 1 following the member's retirement shall be equal to the percentage increase described above multiplied by that fraction of the preceding year during which the member was retired.
B. 
A member's total retirement benefit after successive annual applications of this cost-of-living provision, as described through Subsection A, shall not exceed 130% of his initial retirement benefit.
[1]
Editor's Note: This section also included the following example: Officer Washington retires on July 1, 1998, and receives a normal retirement pension of $2,000 per month. Assuming that the Philadelphia Area Consumer Price Index increases 4% per annum, Officer Washington's pension would increase by 2% (i.e., 50% of 4% since he was retired only six months in 1998, effective January 1, 1999, and by 4% each successive January 1 until his initial pension of $2,000 had increased by 30% to $2,600, as follows:
Year: Monthly Benefit
1998: $2,000.00
1999: $2,040.00
2000: $2,121.60
2001: $2,206.46
2002: $2,294.72
2003: $2,386.51
2004: $2,481.97
2005: $2,581.25
2006 and after: $2,600.00
A. 
If a member terminates employment prior to meeting the eligibility requirements for retirement benefits (normal, disability or vested termination benefits), he shall receive an immediate refund of his own contributions to the plan with interest. If a member dies prior to retirement and no survivor benefits are payable as described in Article XV, the member's beneficiary shall receive an immediate refund of the member's own contributions to the plan with interest.
B. 
If a member terminates employment after meeting the eligibility requirements for retirement benefits (normal, disability or vested termination benefits), the total benefits payable to the member and/or his beneficiary shall not be less than the member's own contributions to the plan with interest, as credited through the member's date of termination.
Every member who has at least three years of service shall have the right to purchase an additional year of service, up to a maximum of five additional years of service, for each year or fraction thereof which the member served in the armed forces of the United States prior to his employment by the Borough of Glenolden. The cost of purchasing such credit for military service shall be computed pursuant to the applicable formula set forth in Section 4(b) of Act 600.
The plan is subject to the minimum funding requirements of the Pennsylvania Municipal Pension Plan Funding Standard and Recovery Act (Act 205 of 1984).[1] The plan's funding requirements will be determined on the basis of regular actuarial valuations in accordance with Act 205, and the required funding will be met from the following sources:
A. 
The portion of state aid received by the Borough from the Commonwealth of Pennsylvania that is allocated to the plan.
B. 
Member contributions up to 5% of compensation if Subsection A is not sufficient to meet the plan's funding requirements.
C. 
Borough contributions, if the sum of Subsections A and B is not sufficient to meet the plan's funding requirements.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
A. 
The general administration and management of the plan and pension fund shall be vested in a Pension Committee which shall be under the direction of the Borough Council. The members of the Pension Committee shall be appointed from time to time to serve at the pleasure of the Borough Council but, unless sooner removed, shall continue to serve until their successors are duly appointed and have accepted their appointment. Upon the expiration of the term of the member on the Pension Committee and in the event of the resignation, death, inability to act or removal of any member of the Pension Committee at any time, the Borough Council by resolution shall designate and appoint a successor or successors to such member of the Pension Committee whose term has expired or who has resigned, died, become unable to act or been removed.
B. 
The Pension Committee shall elect one of its members as Chairman and shall appoint a Secretary who may be, but need not be, a member of the Pension Committee. The Pension Committee shall also from time to time appoint from its members such subcommittees or other officers as the Pension Committee shall from time to time determine. The members of the Pension Committee shall serve without compensation for their services as such members.
C. 
The Pension Committee shall have complete control of the administration of the plan and shall have all powers necessary to enable it properly to carry out its duties, including but not limited to the power to construe the provisions of the plan, to determine all questions relating to eligibility of pension members, to authorize all disbursements for benefits to members and (as set forth below) to contract with life insurance companies. The decisions of the Pension Committee on all matters within the scope of its authority shall be final.
D. 
The Pension Committee shall have the power to contract with any legal reserve life insurance company licensed to transact business in the Commonwealth of Pennsylvania, for the purpose of purchasing annuity contracts which will provide part or all of the death benefits and/or retirement benefits described in Articles XI, XIII, XIV and XV. Such contracts shall be owned by the plan, and any payments to any insurance company in consideration of such contracts shall be made by the plan. Upon the termination of a member, any cash surrender values arising from such contracts shall be deposited in the pension fund.
E. 
The Pension Committee may make such rules and regulations for the conduct of its meetings and administrative duties as it deems appropriate and may require that a member file with the Pension Committee a written application in form prescribed by the Pension Committee whereby the member agrees for himself, his heirs, executors and administrators to be bound by all of the terms and conditions of the plan.
F. 
No members of the Pension Committee shall incur any liability for any action or failure to act, excepting only liability for their own gross negligence or willful misconduct. The Borough Council shall indemnify each member of the Pension Committee against any and all claims, loss, damages, expense and liability arising from any action or failure to act, except when the same is judicially determined to be due to the gross negligence or willful misconduct of such member.
G. 
The Pension Committee shall maintain an account showing the fiscal transactions of the pension fund and shall keep in convenient form such data as may be necessary for the actuarial valuations and computations under the plan. Each year the Pension Committee shall submit to the Borough Council a report giving a brief account of the operations of the plan and pension fund during the previous year.
A. 
The pension fund shall be held in trust by a trustee or trustees to be designated from time to time by the Borough Council. The trustee shall administer the pension fund in accordance with the provisions of a trust agreement to be executed by the trustee and the Borough Council, which trust agreement may be amended from time to time by the Borough Council. The trustee shall not be liable to any member or to a beneficiary of a member or any other person for the payments of any benefits under the plan except to the extent expressly provided for in the plan.
B. 
The trustee shall make payment of benefits under the plan only to the extent, in the amounts, in the manner, at the time and to the persons as shall from time to time be set forth or designated in written authorizations or directions from the Pension Committee to the trustee.
The Borough Council shall employ an actuary to perform the required periodic actuarial valuations of the plan. Such actuary shall be an approved actuary as defined under the Pennsylvania Municipal Pension Plan Funding Standard and Recovery Act (Act 205 of 1984).[1]
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
A. 
Payments made under the provisions of this plan shall not be a charge on any other fund in the Borough Treasury or any fund under the control of the Borough other than the pension fund.
B. 
Any person participating in the Pension Fund or who has become a beneficiary thereof and who is dissatisfied with any ruling or decision of the Pension Committee in reference to the rights of such person may, after notice and at a time fixed by the Pension Committee, personally appear before it for the purpose of stating his or her complaints.
C. 
All persons claiming pensions, all members of the plan and all officials and employees of the Borough shall furnish to the Pension Committee such information as it may require from them from time to time in furtherance of its duties.
D. 
None of the benefits provided herein shall be subject to the claims of, or to execution, attachment, garnishment or other legal process by any creditor of a member, nor of any beneficiary of such member, except to the extent required under the terms of a qualified domestic relations order as such order pertains to divorce settlements. No member, nor beneficiary of such member, shall have any right to alienate, encumber or assign any of the benefits provided herein, or any interest arising out of or created by the plan, but nothing herein contained shall be construed to prevent the member from designating or changing the designation of his beneficiary, provided that any change in designated beneficiary occurs prior to the date a member has commenced receiving benefits under the plan.
E. 
The expenses of the administration of the plan and pension fund shall be paid from the pension fund to the extent permitted by applicable law of the Commonwealth of Pennsylvania. Any administrative expenses of the plan and pension fund not permitted to be paid from the pension fund shall be paid by the Borough.
F. 
Dividends (if any) received by the pension fund from insurance companies and forfeitures resulting from a member's separation from service shall be used to reduce plan costs and shall not be applied to increase the benefits which any member would otherwise receive under the plan.
A. 
This plan may be amended by the Borough if, as amended, it continues to be for the exclusive benefit of members and continues to comply with the laws of the Commonwealth of Pennsylvania governing police pension plans. Amendments may not reduce accrued benefits under the plan except to the extent that the pension fund is then insufficient to provide such accrued benefits in full.
B. 
Subject to the laws of the Commonwealth of Pennsylvania governing police pension plans, the plan may be discontinued by the Borough, but it shall be impossible for any part of the pension fund to be used for, or diverted to, purposes other than the exclusive benefit of members, except such part as represents an actuarial surplus after provision for all accrued benefits under the plan.
C. 
Any other provisions of the plan to the contrary notwithstanding, benefits payable from the plan shall in no circumstances exceed the maximum benefit limitations of Section 415 of the United States Internal Revenue Code, nor shall compensation in excess of the maximum permitted under Section 401(a)(17) of such code be taken into account in calculating plan benefits.
D. 
A member or beneficiary may elect to have any portion of an eligible rollover distribution transferred directly to an eligible retirement plan as specified by the member or beneficiary. A distribution shall be determined to be an eligible rollover distribution, and a plan shall be determined to be an eligible retirement plan in accordance with Section 401(a)(31) and other applicable sections of the United States Internal Revenue Code.
[Added 11-20-2018 by Ord. No. 2123]
A. 
Title. This section shall be known as the "Glenolden Borough Act 44 Deferred Retirement Option Program."
B. 
Definitions. When used in this section, the below words shall have the meaning indicated.
ACT 44 DEFERRED RETIREMENT OPTION PROGRAM
The pension payments plan approved by the Pennsylvania Legislature September 18, 2009, amending Title 53 as it relates to Municipal Police Pension Plan.
ACT 44 PROGRAM ACCOUNT
Separate account created to accept Act 44 Program participants' monthly pension check while an Act 44 Program participant, as well as any interest thereon.
BOROUGH
Borough of Glenolden, Delaware County, Pennsylvania.
DROP PERIOD
Act 44 DROP period means the period beginning as of the participating police officer's written election notice as acknowledged by the employer and continuing until that police officer's separation from employment as a police officer of the employer, but in no event to exceed 36 months.
FUND or PLAN
The Municipal Police Pension Plan.
PARTICIPANT
A police officer who meets the eligibility for and has executed the proper documents for participation in the Act 44 Program.
POLICE OFFICERS
Police officers of the Police Department.
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 any month coincident with, or following, the date when they have completed 25 years of service and are 53 years of age.
D. 
Written election. Eligible officers who wish to be participants in the Act 44 Program must signify that intention 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" which shall evidence the member's election to participate in the Act 44 Program. The form must be signed by the police officer and be notarized and submitted to the Borough Secretary. The Act 44 Program participation election form shall include an irrevocable notice to the Borough, by the police officer, that the police officer shall resign from employment with the Police Department effective on a specific date (the "resignation date") that is no later than 36 months from the effective date of the Act 44 Program election form. 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:
(a) 
An explanation of the participant's rights and obligations while in Act 44 Program, including the participation period of 36 months;
(b) 
That, as a condition of Act 44 Program participation, the participant foregos active participation in the Police Pension Plan and foregos any recalculation of pension benefits to include salary increases occurring after Act 44 Program participation commences; and
(c) 
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. Once an Act 44 Program participant enters the Act 44 Program, the participant may not subsequently leave and then reenter the Act 44 Program, even if the employee separates from employment and subsequently begins employment with the Borough again.
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 Program. 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 participation in the Act 44 Program 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 paid into 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 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.
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 § 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 program that is an individual retirement account or an individual retirement annuity as defined by Internal Revenue Code § 402(c)(9).
(3) 
If the Act 44 Program participant or beneficiary fails to make an election within 60 days following the date of termination of Act 44 Program participation, then the Borough shall implement Subsection H(1) above.
I. 
Service-connected disability during Act 44 Program. If an eligible DROP participant becomes temporarily incapacitated during his participation in the Act 44 Program, the police officer shall continue to participate in the Act 44 Program as if fully employed. 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 program 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 lawfully discharge a police officer based upon their inability to resume 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/her 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.
J. 
Death. If an Act 44 Program participant dies, the participant's eligibility for the 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. Reasonable costs or fees associated with the implementation or their individual management of the Act 44 Program account shall be paid directly and solely by the participant and not by the Borough.
M. 
Amendment. Any amendments to the 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 will be January 1, 2018.