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.
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). 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.
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).
[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 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.
PARTICIPANT
A police officer who meets the eligibility for and has executed
the proper documents for participation in the 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 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.