[HISTORY: Adopted by the Board of Supervisors
of the Township of East Hempfield as indicated in article histories.
Amendments noted where applicable.]
[Adopted by Res. No. 6-4-1986B; amended in its entirety 12-1-2021 by Ord. No. 2021-11]
A pension plan is hereby established for the Township's
full-time nonuniformed employees pursuant to and in compliance with
the Act of May 1, 1933, P.L. 103, No. 69, as amended. Such plan shall
be under the direction of the Board of Supervisors of the Township
of East Hempfield and shall be administered under such regulations
as the Board of Supervisors may prescribe. The effective date of this
article, generally, shall be January 1, 2007; however, the plan established
hereunder shall be deemed a continuation of the previous nonuniformed
pension plan for state aid purposes. In addition, revisions made subsequent
to such effective date are separately identified.
As used in this article, the following terms shall have the
meanings indicated:
The governing body of the Township of East Hempfield acting
in the capacity of administrator of the nonuniformed pension plan
established pursuant to this article.
The persons which may be appointed to serve in an advisory
capacity to the Board of Supervisors in the administration of the
plan.
The monies paid by the employer to the plan and/or the payroll deductions made monthly from the salaries of the participants and paid to the plan; except that contributions' in § 37-4E shall mean total contributions paid by the participant and accumulated during the period of employment and participation in this plan.
The Township of East Hempfield.
The value of any participant's benefits which shall
accrue by virtue of that participant's service rendered subsequent
to the enactment of this article.
Every person duly appointed from time to time by the employer
as a full-time nonuniformed employee working not less than 37 hours
per week at a definite salary, subject to reasonable vacation and
sick leave, to be included in the plan upon date of hire.
The nonuniformed employees pension plan established pursuant
to this article.
The amount of compensation received by a participant in each
and every month, including base pay, overtime pay, longevity pay,
shift differential, and any other such increments. The term "salary"
shall include regular payments made for vacation time, sick time,
compensation time, personal days and bereavement leave. For current
employees hired before January 1, 2007, the term "salary" shall also
include lump-sum payments made for any unused vacation days and/or
hours up to a maximum of one year's worth of such time and any
unused sick days and/or hours up to a maximum of three years'
worth of such time, as paid at the conclusion of employment at the
prevailing rate. For employees hired on or after January 1, 2007,
the term "salary" shall not include lump-sum payments made for any
unused days.
Total aggregate service, not necessarily continuous, with
the employer.
The cessation of service by the participant for any reason,
including disability, resignation, and employee termination. Death
shall not be considered a termination within the meaning of this article.
Voluntary leaves of absence without pay shall not be considered a
termination for the purposes of this article, but no period of such
leave shall be computed in the total service for pension benefit purposes.
Leaves of absence with pay shall not be considered a termination within
the meaning of this article (provided that the municipality is able
to certify to the Department of the Auditor General that such participant
on a leave of absence with pay is within the definition of a participant
as set forth herein), but such leaves may be computed in the total
service for pension benefit purposes.
The present value of any participant's benefits accrued
prior to the enactment of this article by virtue of that participant's
prior service.
A.
The Board of Supervisors shall administer the plan by such regulations
as shall from time to time be necessary for the effective maintenance
of the plan, provided that no regulation shall be contrary to the
statutes of the Commonwealth of Pennsylvania and/or applicable federal
regulations.
B.
The Board of Supervisors may appoint a Committee which shall act
as an advisory body to the Board of Supervisors in the administration
of the plan according to the regulations established pursuant to this
article.
C.
Committee membership.
(1)
The Committee shall consist of five members, which number shall include
the Township Manager and the Township Director of Finance, two Supervisors,
and one other active non-managerial plan participant chosen by a majority
of the current participants in the plan.
(2)
All such persons so designated shall serve at the pleasure of the
Board of Supervisors. Any member may resign upon written notice to
the Board of Supervisors and the Committee. Any vacancies in the Committee
arising from resignation, death or removal shall be filled by the
Board of Supervisors by the procedure set out herein for the member
of the Committee whose resignation, death or removal has created the
vacancy.
(3)
The Committee shall meet no less than annually, and members shall
serve without compensation for their services.
D.
The Committee shall act by such procedure as the Committee shall
establish, provided that all decisions shall be by majority vote.
The Committee may authorize one of its members to execute any document
or documents on behalf of the Committee, may adopt bylaws and regulations
as it deems necessary for the conduct of its affairs, and may appoint
such accountants, counsel, specialists or such other personnel as
it may deem desirable for the proper administration of the plan, provided
that all such executions of documents, adoptions of bylaws and regulations,
and appointments shall be approved by the Board of Supervisors.
E.
The Committee shall keep a record of all its proceedings and acts
which shall relate to the plan and shall keep all such books of accounts,
records and other data as shall be necessary for the proper administration
of the plan. All actions of the Committee shall be communicated to
the Board of Supervisors.
F.
All such reasonable expenses incurred in the administration of the
plan, including, but not limited to, fees for the services of specialists
including actuaries, accountants, consultants and legal counsel shall
be approved by the Board of Supervisors and all may be paid from the
plan, provided that no such payment shall be contrary to the statutes
of the Commonwealth of Pennsylvania.
G.
No member of the Board of Supervisors or the Committee established
pursuant to this article shall incur any liability for any action
or failure to act, excepting only liability for its own gross negligence
or willful misconduct. The employer shall indemnify each member of
the Board of Supervisors and the Committee against any and all claims,
loss, damages, expense, and liability arising from any action or failure
to act, except for such that is the result of gross negligence or
willful misconduct of such member.
A.
Eligibility for normal retirement. A participant in the plan may
retire from active employment on the first day of the month following
the attainment of age 60, provided that the participant has completed
five or more years of service with the employer.
B.
Normal retirement benefit.
(1)
A participant whose date of hire occurred before January 1, 2011,
and who shall complete the age and service requirements as set forth
in this article shall receive a pension for life in the amount equal
to 2% for each full year of service times the average monthly salary
over the 36 months of employment immediately preceding retirement,
excluding periods of worker's compensation, temporary disability
or approved FMLA leaves of absence, up to 60 months. The maximum benefit
shall be 60% of such participant's average monthly salary so
calculated.
(2)
A participant whose date of hire occurred on or after January 1,
2011, shall have established, by the employer, a cash balance retirement
account. The employer shall contribute to such cash balance retirement
account, at least annually, an amount equal to 7% of such participant's
salary, as such is defined in this chapter. Beginning January 1, 2022,
the employer shall contribute to such cash balance retirement account,
at least annually, an amount equal to 9% of such participant's
salary, as such is defined in this chapter. Such participant who shall
have completed the age and service requirements as set forth in this
article shall receive such cash balance retirement account under one
of the benefit alternatives hereinafter set forth:
(a)
A lump sum equal to the cash balance retirement account value.
(b)
A single life annuity which is actuarially equivalent in value
to the value of the cash balance account at retirement.
(c)
A joint and 50% survivor annuity which is actuarially equivalent
in value to the value of the cash balance account at retirement.
(3)
Subject further to those limitations imposed by the statutes of the
Commonwealth of Pennsylvania, no offset or reduction from the benefit
here provided for shall be made for any social security retirement
benefits, worker's compensation, or other benefits to which the
participant is also entitled.
(4)
The benefit herein provided shall be payable solely from the assets
of the plan.
C.
Early retirement benefit. There is no early retirement benefit at
the present time.
D.
Vested benefit.
(1)
A vested deferred monthly benefit shall be provided for any participant
whose date of hire occurred before January 1, 2011, and whose termination
date occurs prior to the participant's normal retirement date,
provided that the participant shall have completed a minimum of five
years of service with the employer and shall have notified the employer
of such intention to vest within 30 days of the participant's
date of termination. This benefit shall be computed in the same manner
as set forth in this article. Such vested deferred monthly benefit
shall be paid to the participant upon attainment of that participant's
normal retirement age as set forth in this article.
(2)
A graduated vested benefit shall be provided for any participant
whose date of hire occurred on or after January 1, 2011, and whose
termination date occurs prior to the participant's normal retirement
date, provided the participant shall have notified the employer of
such intention to vest within 30 days of the participant's date
of termination. This benefit shall be a graduated percentage of the
value of such participant's cash balance retirement account.
The graduated vested percentage for participants is as follows:
|
Years of Service Completed
|
Percentage Vested
|
|---|---|
|
1
|
20%
|
|
2
|
40%
|
|
3
|
60%
|
|
4
|
80%
|
|
5
|
100%
|
(3)
The surviving spouse of a participant who dies before his or her
pension has vested shall be entitled to receive repayment of all money
which the participant invested in the pension fund, plus interest,
or other increases in value of the participant's investment in
the pension fund, unless the participant has designated another beneficiary
for this purpose.
(4)
The cash balance retirement account set aside for any participant
whose date of hire occurred on or after January 1, 2011, and who has
not completed the five years of service set forth above shall forfeit
all nonvested funds. Forfeited funds will be returned to East Hempfield
Township to be used to defray any current or future required employer
contributions to this Plan.
(5)
Should a participant in the cash balance account plan sever employment
with the Township, the present value of a participant's vested
cash balance account shall be paid to the participant as of the date
of his severance from employment for any reason other than death.
E.
Termination.
(1)
If for any reason a participant shall terminate service with the
employer prior to becoming vested, that participant shall be entitled
to a refund of that participant's contributions plus interest
at a rate of 6% per annum. Such interest shall be uniform for all
participants.
(2)
If a participant shall subsequently return to service and return
to the plan the contributions plus interest which were refunded to
the participant upon termination, the participant shall be entitled
to credit for the prior years of service to the extent of the return
of contributions.
F.
Survivor benefit.
(1)
As to those participants whose date of hire occurred before January
1, 2011, the following survivor benefits apply:
(a)
In the event of the death of a participant who was vested but
not yet receiving a retirement pension, or who had qualified for a
normal retirement pension but had not yet retired, that participant's
spouse, so long as the spouse does not remarry, shall be entitled
to receive a monthly pension equal to 50% of the pension the participant
was entitled to or would have been receiving had the participant been
retired at the time of the participant's death.
(b)
If no spouse survives, or if a spouse survives and subsequently
dies or remarries, then the child or children under the age of 18
years of the deceased eligible participant shall be entitled to receive
a monthly pension equal to 50% of the pension to which the participant
was entitled.
(2)
For those participants whose date of hire occurred on or after January
1, 2011, the following survivor benefits apply:
(a)
In the event of the death of a participant who was vested but
not yet receiving a retirement pension, or who had qualified for a
normal retirement pension but had not yet retired, that participant's
spouse shall be entitled to receive the value of the cash balance
retirement account of the participant by filing an appropriate written
request with the employer.
(b)
In the event of the death of a participant who was vested but
not yet receiving a retirement pension, or who had qualified for a
normal retirement pension but had not yet retired and who is not survived
by a spouse, the value of such participant's cash balance retirement
account shall be distributed in accordance with the most recent beneficiary
designation form on file with the employer, and if none then unto
his or her estate.
G.
Nonalienation of benefits and vesting.
(1)
No benefit under the plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge,
nor shall any such benefits be in any manner liable for or subject
to garnishment, attachment, execution, levy or other legal process.
(2)
Further, all benefits granted herein shall vest in the participant
upon completion of the requirements for eligibility, and that participant's
benefits shall continue in the amount and in the form in which that
participant first became entitled to them.
A.
Contributions of the employer. Contributions to the plan by the employer
shall be in an amount determined by the annual minimum municipal obligation
(MMO) calculation, prepared in accordance with Act 205 of 1984, which
is certified to the governing body of the Township by September 30
and included in the Township budget for the following year.
B.
Contributions of participants. The contribution requirements and
rights and responsibilities of participants are established from time
to time by ordinance or resolution. Participants hired on or after
January 1, 2011, are currently neither required nor permitted to contribute
to the plan. Any future changes in the contribution requirement for
either group of participants may be enacted by an ordinance or resolution.
C.
Allocation of commonwealth funds. Any payments made by the State
Treasurer to the employer from the monies received from the taxes
paid on the premiums of foreign casualty insurance companies for purposes
of retirement or disability benefit pensions for municipal employees
shall be used as follows:
(1)
To reduce the unfunded liability; or
(2)
After such liability is funded, to apply against the annual obligation
of the employer for future service cost; or
(3)
To the extent that the payments may be in excess of such obligations,
to reduce or eliminate the contributions paid by the participants.
D.
Allocation of assets of existing pension plans. Any assets of any
existing pension plans for the full-time nonuniformed employees of
the Township are hereby transferred to the plan established pursuant
to this article and shall be applied against the unfunded liability.
E.
Gifts, bequests and grants. All other monies and property received
by the plan, including gifts, bequests, devices and grants, shall
be applied equally against the participant's and the employer's
portions of the future service cost unless otherwise specifically
provided.
Any participant in the plan with at least six months of service
with the employer who thereafter shall enter the military service
of the United States of America shall have credited to the participant's
employment record for pension benefit purposes all of the time spent
by the participant in such military service, provided that the participant
returns to service with the employer within six months after said
participant's separation from such military service.
Upon termination of the plan, the assets shall be distributed
as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 37-4 for all participants who have retired prior to the termination of the plan or who are eligible to retire at the time of the termination of the plan.
B.
Sufficient funds shall be maintained to provide vested pension benefits prescribed in § 37-4 for all participants who are eligible for such benefits.
C.
Any funds representing contributions from the remaining participants
shall be returned to such participants with interest at a rate of
6% per annum.
D.
Of the remaining funds, those which can be identified as contributions
of the employer, or contributions other than those identified as unused
commonwealth allocations, shall be distributed as the Board of Supervisors
sees fit, provided that such distribution is made on a uniform basis.
A.
Neither the establishment of the plan hereby created, nor any modification
thereof, nor the creation of any fund or account, nor the payment
of any benefits, shall be construed as giving to any participant or
other person any legal or equitable right against the employer, or
any officer or employee thereof, or the Board of Supervisors, except
as herein provided.
B.
Under no circumstances shall the plan hereby created constitute a
contract for continuing employment for any participant or in any manner
obligate the employer to continue or to discontinue the services of
an employee.
C.
This plan has been established and shall be maintained by the employer
in accordance with the laws of the Commonwealth of Pennsylvania. The
plan shall continue for such period as may be required by such laws,
provided that the employer may, by its own action, discontinue this
plan should such laws provide, and the employer reserves the right
to take such action in its sole and absolute discretion. Upon termination,
the employer shall have no liability hereunder other than that imposed
by law.
All investments by the Board of Supervisors of the assets of
this plan shall comply with any applicable state statutes, rules and
regulations with respect to municipal investments for nonuniformed
pension funds and with such regulations as the Board of Supervisors
shall establish for the purpose of investing such funds.
The Board of Supervisors reserves the right to amend, at any time, in whole or in part, any or all of the provisions of the plan, provided that no such amendment shall authorize or permit any part of the plan to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries, or their estates. Nor shall any amendment divest a participant of benefits vested by the provisions of § 37-4. All such amendments shall comply with the applicable statutes of the Commonwealth of Pennsylvania.
A.
This plan shall be constructed according to the laws of the Commonwealth
of Pennsylvania, and all provisions hereof shall be administered according
to the laws of such commonwealth.
B.
Wherever any words are used herein in the masculine gender, they
shall be construed as though they were also used in the feminine gender
in all cases where they would so apply; and wherever any words used
herein are in the singular form, they shall be construed as though
they were also used in the plural form in all cases where they would
so apply.
C.
Headings of sections and paragraphs of this instrument are inserted
for convenience of reference. They constitute no part of this plan
and are not to be considered in the construction thereof.
D.
This article, except as it revises the existing nonuniformed employees'
pension plan, is intended as a continuation of that plan.
E.
This article is effective five days after adoption.
[Adopted 7-16-2003 by Ord. No. 03-04]
A pension plan is hereby established for the
full-time police officers pursuant to and in compliance with the Act
of May 29, 1956, P.L. (1955) 1804, No. 600, as amended. Such plan
shall be under the direction of the Board of Supervisors of the Township
of East Hempfield and shall be applied under such regulations as the
Board of Supervisors may prescribe. The effective date of this article
shall be January 1, 2003; however, the plan established hereunder
shall be deemed a continuation of the previous police pension plan
for state aid purposes.
As used in this article, the following terms
shall have the meanings indicated:
The governing body of the Township of East Hempfield acting
in the capacity of administrator of the police pension plan established
pursuant to this article.
The persons which may be appointed to serve in an advisory
capacity to the Board of Supervisors in the administration of the
plan.
The monies paid by the employer to the plan and/or the payroll deductions made monthly from the salaries of the participants and paid to the plan, except that "contributions" in § 37-15G shall mean total contributions paid by the participant and accumulated during the period of employment and participation in this plan.
The deferred retirement option plan created as an optional
form of benefit under the existing East Hempfield Township police
pension plan.
[Added 5-2-2018 by Ord.
No. 2018-03]
A member who is eligible for normal retirement and who has
elected to participate in the DROP.
[Added 5-2-2018 by Ord.
No. 2018-03]
A separate ledger account created to accumulate the DROP
pension benefit for a DROP participant.
[Added 5-2-2018 by Ord.
No. 2018-03]
The Township of East Hempfield.
The value of any participant's benefits which shall accrue
by virtue of that participant's service rendered subsequent to the
enactment of this article.
A full-time East Hempfield Township police officer covered
by the plan.
[Added 5-2-2018 by Ord.
No. 2018-03]
Every person duly appointed from time to time by the employer
as a full-time police officer working not less than 40 hours per week
at a definite salary, subject to reasonable vacation and sick leave,
to be included in the plan upon date of hire.
The East Hempfield Township police pension plan adopted pursuant
to Act 600.
[Amended 5-2-2018 by Ord.
No. 2018-03]
The amount of compensation received by a participant in each
and every month, including base pay, overtime pay, longevity pay,
shift differential and any other such increments. The term "salary"
shall include regular payments made for vacation time, sick time,
compensation time, personal days and bereavement leave, but shall
not include lump-sum payments for any unused days for any of the foregoing
listed benefits.
Total aggregate service, not necessarily continuous, with
the employer.
The cessation of service by the participant for any reason
including disability, resignation and employee termination. Death
shall not be considered a termination within the meaning of this article.
Voluntary leaves of absence without pay shall not be considered a
termination for the purposes of this article, but no period of such
leave shall be computed in the total service for pension benefit purposes.
Leaves of absence with pay shall not be considered a termination within
the meaning of this article (provided that the Township is able to
certify to the Department of the Auditor General that such participant
on a leave of absence with pay is within the definition of a participant
as set forth herein), but such leaves may be computed in the total
service for pension benefit purposes.
The present value of any participant's benefits accrued prior
to the enactment of this article by virtue of that participant's prior
service.
A.
The Board of Supervisors shall administer the plan
by such regulations as shall from time to time be necessary for the
effective maintenance of the plan, provided that no regulation shall
be contrary to the statutes of the Commonwealth of Pennsylvania and/or
applicable federal regulations.
B.
The Board of Supervisors may appoint a Committee which
shall act as an advisory body to the Board of Supervisors in the administration
of the plan according to the regulations established pursuant to this
section.
C.
The Committee shall consist of five members, which number shall include
the Township Manager and the Township Director of Finance, and two
members chosen by a majority of the current participants in the plan.
The final member of the Committee shall be neither a member of the
Board of Supervisors nor a participant in the plan but shall be a
citizen-at-large and shall be appointed by the Board of Supervisors.
The citizen-at-large shall serve at the pleasure of the Board of Supervisors.
The citizen-at-large may resign upon written notice to the Board of
Supervisors and the Committee. The Committee shall meet no less than
annually, and members shall serve without compensation for their services.
[Amended 12-18-2013 by Ord. No. 2013-06[1]]
[1]
Editor's Note: This ordinance also provided that it take effect
1-1-2014 and that, except for this amendment, it is intended as a
continuation of the plan.
D.
The Committee shall act by such procedure as the Committee
shall establish, provided that all decisions shall be by majority
vote. The Committee may authorize one of its members to execute any
document or documents on behalf of the Committee, may adopt bylaws
and regulations as it deems necessary for the conduct of its affairs,
and may appoint such accountants, counsel, specialists or such other
personnel as it may deem desirable for the proper administration of
the plan, provided that all such executions of documents, adoptions
of bylaws and regulations, and appointments shall be approved by the
Board of Supervisors.
E.
The Committee shall keep a record of all its proceedings
and acts which shall relate to the plan and shall keep all such books
of accounts, records and other data as shall be necessary for the
proper administration of the plan. All actions of the Committee shall
be communicated to the Board of Supervisors.
F.
All such reasonable expenses incurred in the administration
of the plan, including, but not limited to, fees for the services
of specialists including actuaries, accountants, consultants and legal
counsel, shall be approved by the Board of Supervisors and all may
be paid from the plan, provided that so such payment shall be contrary
to the statutes of the Commonwealth of Pennsylvania.
G.
No member of the Board of Supervisors or the Committee
established pursuant to this section shall incur any liability for
any action or failure to act, excepting only liability for its own
gross negligence or willful misconduct. The employer shall indemnify
each member of the Board of Supervisors and the Committee against
any and all claims, loss, damages, expense and liability arising from
any action or failure to act, except for such that is the result of
gross negligence or willful misconduct of such member.
A.
Eligibility for normal retirement.
(1)
A participant in the plan may retire from active employment
on the first day of the month following the attainment of age 50,
provided that the participant has completed 25 or more years of service
with the employer.
(2)
A participant shall retire on the first day of the
month following attainment of 70.
B.
Normal retirement benefit. A participant who shall
complete the age and service requirements as set forth in this section
shall receive a pension for life in the amount equal to 1/2 or 50%
of the participant's average monthly salary over the participant's
last 36 months of employment or that percentage and based on that
number of months as shall be prescribed by statute of the Commonwealth
of Pennsylvania subsequent to the adoption of this article. Subject
further to those limitations imposed by the statutes of the Commonwealth
of Pennsylvania, no offset or reduction from the benefit here provided
for shall be made for any social security retirement benefits, worker's
compensation, or other benefits to which the participant is also entitled.
The benefit herein provided shall be payable solely from the assets
of the plan.
C.
Early retirement benefit. The plan does not provide
an early retirement benefit.
D.
Length-of-service increment benefit.
[Amended 5-6-2009 by Ord. No. 2009-03[1]]
(1)
A length-of-service
increment will be provided to each retired officer for each completed
year of service in excess of 25 years. The service increments shall
be as set forth under Act 89 of 2005, an amendment to Act 600, and
shall be as follows:
(a)
For 26 years of completed service, the officer receives $100 a month.
(b)
For 27 years of completed service, the officer receives $200 a month.
(c)
For 28 years of completed service, the officer receives $300 a month.
(d)
For 29 years of completed service, the officer receives $400 a month.
(e)
For 30 years of completed service, the officer receives $500 a month.
(2)
The
maximum length-of-service increment benefit shall be $500 a month
after five completed years of service in excess of 25 years. Such
length-of-service increment will be paid in addition to other monthly
pension or retirement allowances
[1]
Editor's Note: The provisions of this ordinance shall retroactively
apply as of 7-16-2008.
E.
Disability benefit.
(1)
In the event of the participant's total and permanent
disability resulting from service-related injuries, such participant
may become eligible for a monthly disability pension. Such disability
pension shall commence when the participant has been declared totally
and permanently disabled. A participant shall not be entitled to any
disability benefit from this plan for a disability resulting from
an injury deemed to be non-service-related.
(2)
"Total and permanent disability" shall mean a physical
or mental condition of a participant which qualifies the participant
for disability benefits under the federal social security and/or worker's
compensation programs. The Board of Supervisors shall designate a
physician to represent and certify to the Board of Supervisors such
disability as total, permanent and service-related.
(3)
Any member of the police force who suffers a permanent
injury incurred in service shall receive a pension calculated at a
rate of no less than 50% of the member's salary at the time the disability
was incurred, provided that any member who receives benefits for the
same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C.
§ 301 et seq.) shall have his or her disability benefit
offset or reduced by the amount of such benefit.
F.
Vested benefit.
(1)
A vested deferred monthly benefit shall be provided
for any participant whose termination date occurs prior to the participant's
normal retirement date; provided that the participant shall have completed
a minimum of 12 years of service with the employer and shall have
notified the employer in writing of such intention to vest within
90 days of the participant's date of termination. The amount of the
vested deferred monthly benefit shall be determined in accordance
with the provisions of Act 600, 53 P.S. § 771.
(2)
Such vested deferred monthly benefit shall be paid
to the participant upon attainment of that participant's normal retirement
age as set forth in this section.
(3)
The surviving spouse of a member of the police force
who dies before his or her pension has vested or, if no spouse survives
or if he or she survives and subsequently dies, the child or children
under the age of 18 years or, if attending college, under or attaining
the age of 23 years, of the member of the police force shall be entitled
to receive repayment of all money which the member invested in the
pension fund plus interest or other increases in value of the member's
investment in the pension fund, unless the member has designated another
beneficiary for this purpose.
G.
Termination.
(1)
If for any reason a participant shall terminate service
with the employer prior to becoming vested, that participant shall
be entitled to a refund of that participant's contributions plus interest
at a rate of 6% per annum. Such interest shall be uniform for all
participants.
(2)
If a participant shall subsequently return to service
and return to the plan the contributions plus interest which were
refunded to the participant upon termination, the participant shall
be entitled to credit for the prior years of service to the extent
of the return of contributions.
I.
Surviving spouse's and children's benefit.
[Amended 6-16-2010 by Ord. No. 2010-06]
(1)
The surviving spouse of a member of the police force
or a member who retires on pension who dies, or if no spouse survives
or if he or she survives and subsequently dies, then the child or
children under the age of 18 years or, if attending college, under
or attaining the age of 23 years, of a member of the police force
or a member who retires on pension who dies, shall, during his or
her lifetime, in the case of a surviving spouse, or until reaching
the age of 18 years or, if attending college, under or attaining the
age of 23 years, in the case of a child or children, be entitled to
receive a pension calculated at no less than 50% of the pension the
member was receiving or would have been receiving had he or she been
retired at the time of death.
(2)
Insofar as the amendments of Act 30 of 2002 affect
the benefits available to surviving spouses, the amendments shall
apply to surviving spouses whose spouse died on or before April 17,
2002, and who were not remarried as of that date.
J.
Nonalienation of benefits and vesting.
(1)
No benefit under the plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge. Nor shall any such benefits be in any manner
liable for or subject to garnishment, attachment, execution, levy
or other legal process.
(2)
Further, all benefits granted herein shall vest in
the participant upon completion of the requirements for eligibility,
and that participant's benefits shall continue in the amount and in
the form in which that participant first became entitled to them.
A.
Contributions of the employer. Contributions to the
plan by the employer shall be in an amount determined by the annual
minimum municipal obligation (MMO) calculation, prepared in accordance
with Act 205 of 1984, which is certified to the governing body of
the Township by September 30 and included in the Township budget for
the following year.
B.
Contributions of participants.
(1)
Where positions covered by the plan are included in an agreement under the Federal Social Security Act, monthly contributions paid to the plan by the participants shall be at a rate calculated by multiplying the social security offset percentage listed in § 37-15B by 3% and then subtracting the resultant percentage from 5%. Such contributions shall be on that portion of monthly salary for which social security taxes are payable. Contributions to the plan paid by the participants on that portion of monthly salary that exceeds the amount for which social security taxes are paid shall be at the rate of 5%.
(2)
The governing body of the Township of East Hempfield
may, on an annual basis, by ordinance or resolution, reduce or eliminate
payments into the fund by members without the necessity of conducting
an actuarial study. However, no such reduction or elimination of contributions
by the participant shall result in increasing the liability of the
employer to the plan.
C.
Allocation of commonwealth funds. Any payments made
by the State Treasurer to the employer from the monies received from
the taxes paid on the premiums of foreign casualty insurance companies
for purposes of retirement or disability benefit pensions for Township
employees shall be used as follows:
(1)
To reduce the unfunded liability; or
(2)
After such liability is funded, to apply against the
annual obligation of the employer for future service cost; or
(3)
To the extent that the payments may be in excess of
such obligations, to reduce or eliminate the contributions paid by
the participants.
D.
Allocation of assets of existing pension plans. Any
assets of any existing pension plans for the police officers of the
Township are hereby transferred to the plan established pursuant to
this article and shall be applied against the unfunded liability.
E.
Gifts, bequests and grants. All other monies and property
received by the plan, including gifts, bequests, devices and grants,
shall be applied equally against the participant's and the employer's
portions of the future service cost unless otherwise specifically
provided.
A.
Credit for military service. Any participant in the
plan with at least six months of service with the employer who thereafter
shall enter the military service of the United Sates of America shall
have credited to the participant's employment record for pension benefit
purposes all of the time spent by the participant in such military
service, provided that the participant returns to service with the
employer within six months after said participant's separation from
such military service.
B.
Purchase of nonintervening military service. A service
credit shall be provided for each year of military service or fraction
thereof, not to exceed five years, to any member of the police force
who was not employed by the political subdivision prior to such military
service. The amount due for the purchase of credit for military service,
other than intervening military service, shall be computed by applying
the average normal cost rate for Borough and Township police pension
plans, as certified by the Public Employee Retirement Commission,
but not to exceed 10%, to the member's average annual rate of compensation
over the first three years of municipal service and multiplying the
result by the number of years and fractional part of a year of creditable
nonintervening military service being purchased together with interest
at the rate of 4 3/4% compounded annually from the date of initial
entry of municipal service to the date of payment. Any member of the
police force shall be eligible to receive service credit for intervening
or nonintervening military service as provided herein, provided that
the member is not entitled to receive, eligible to receive now or
in the future, or is receiving retirement benefits for such service
under a retirement system administered and wholly or partially paid
for by any other governmental agency with the exception of a member
eligible to receive or receiving military retirement pay earned by
a combination of active duty and nonactive duty with a reserve or
national guard component of the armed forces, which retirement pay
is payable only upon the attainment of a specified age and period
of service under 10 U.S.C. Ch. 67 (relating to retired pay for nonregular
services).
Upon termination of the plan, the assets shall
be distributed as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 37-15 for all participants who have retired prior to the termination of the plan, or who are eligible to retire at the time of the termination of the plan.
B.
Sufficient funds shall be maintained to provide vested pension benefits prescribed in § 37-15 for all participants who are eligible for such benefits.
C.
Any funds representing contributions from the remaining
participants shall be returned to such participants with interest
at a rate of 6% per annum.
D.
Of the remaining funds, those which can be identified
as contributions of the employer, or contributions other than those
identified as unused commonwealth allocations, shall be distributed
as the Board of Supervisors sees fit, provided that such distribution
is made on a uniform basis.
A.
Neither the establishment of the plan hereby created,
nor any modification thereof, nor the creation of any fund or account,
nor the payment of any benefits, shall be construed as giving to any
participant or other person any legal or equitable right against the
employer, or any officer or employee thereof, or the Board of Supervisors,
except as herein provided.
B.
Under no circumstances shall the plan hereby created
constitute a contract for continuing employment for any participant
or in any manner obligate the employer to continue or to discontinue
the services of an employee.
C.
This plan has been established and shall be maintained
by the employer in accordance with the laws of the Commonwealth of
Pennsylvania. The plan shall continue for such period as may be required
by such laws, provided that the employer may, by its own action, discontinue
this plan should such laws provide, and the employer reserves the
right to take such action in its sole and absolute discretion. Upon
termination, the employer shall have no liability hereunder other
than that imposed by law.
All investments by the Board of Supervisors
of the assets of this plan shall comply with any applicable state
statutes, rules and regulations with respect to municipal investments
for police pension funds and with such regulations as the Board of
Supervisors shall establish for the purpose of investing such funds.
The Board of Supervisors reserves the right to amend, at any time, in whole or in part, any or all of the provisions of the plan, provided that no such amendment shall authorize or permit any part of the plan to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries, or their estates. Nor shall any amendment divest a participant of benefits vested by the provisions of § 37-15. All such amendments shall comply with the applicable statutes of the Commonwealth of Pennsylvania.
A.
This plan shall be constructed according to the laws
of the Commonwealth of Pennsylvania, and all provisions hereof shall
be administered according to the laws of such commonwealth.
B.
Wherever any words are used herein in the masculine
gender, they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply, and wherever
any words used herein are in the singular form, they shall be construed
as though they were also used in the plural form in all cases where
they would so apply.
C.
Headings of sections and subsections of this instrument
are inserted for convenience of reference. They constitute no part
of this plan and are not to be considered in the construction thereof.
[Added 5-2-2018 by Ord.
No. 2018-03]
A.
Eligibility. Effective January 1, 2018, Members of the East Hempfield
Township Police Department who have not yet retired prior to the implementation
of the DROP may enter into the DROP between July 2 and December 31
of any year following the attainment of age 50 and the completion
of 25 or more years of credited service with East Hempfield Township
Police Department.
B.
Written election.
(1)
An eligible member of the plan electing to participate in the DROP
must complete and execute a "DROP election form" prepared by East
Hempfield Township and/or the pension plan administrator, which shall
evidence the member's participation in the DROP, and document the
DROP participant's rights and obligations under the DROP. The form
must be signed by the member and the chief administrative officer
of the Plan and submitted to East Hempfield Township, Lancaster County,
Pennsylvania, at least 30 days prior to the member's effective date
of retirement. The DROP election form shall include an irrevocable
notice to the East Hempfield Township by the member that the member
shall terminate from employment with the East Hempfield Township Police
Department effective on a specific date not less than one year nor
more than two years from the effective date of the DROP election.
In addition, all retirement documents required by the East Hempfield
Township police pension plan administrator must be filed and presented
to the Board of Supervisors for approval of retirement and commencement
of the monthly pension benefit. Once the retirement application has
been approved by the Board of Supervisors, it shall become irrevocable.
(2)
After a member enters the DROP, contributions to the plan by the
DROP participant and the Township will cease, and the amount of monthly
benefits will be frozen.
(3)
The documentation that must be executed before a member may participate
in the DROP shall include a provision releasing the Township from
any liability with regard to investment and other losses (subject
to the guaranteed rate of return set forth herein). As a condition
precedent to participation in DROP, the member must also acknowledge
and agree to hold the Township harmless for any consequences flowing
from the member's decision to participate in DROP, including, but
not limited to, any tax consequences or other financial or other implications
of DROP participation.
(4)
Members shall be advised to consult a tax advisor, of their choice,
prior to considering the DROP, as there may be serious tax implications
and/or consequences to participating in the DROP.
C.
Limitation on pension accrual. After the effective date of the DROP
election, the DROP participant shall no longer earn or accrue additional
years of continuous service for plan purposes.
D.
Benefit calculation. For all plan purposes, continuous service of
a member participating in the DROP shall remain as it existed on the
effective date of commencement of participation in the DROP. Service
thereafter shall not be recognized or used for the calculation or
determination of any benefits payable by the plan. The average monthly
pay of the member for pension calculation purposes shall remain as
it existed on the effective date of commencement of participation
in the DROP. Earnings or increases in earnings thereafter shall not
be recognized or used for the calculation or determination of any
benefits payable by the plan.
E.
Payments to DROP participant account. The monthly retirement benefits
that would have been payable had the member elected to cease employment
and receive a normal retirement benefit shall, upon the member commencing
participation in the DROP, be credited on the first day of each month
into a separate ledger account established by the plan administrator
to track and accumulate the DROP participant's monthly pension benefits.
This account shall be designated the DROP participant account. Interest
shall accrue in the DROP participant account between 0% and 4.5% per
year consistent with the earnings of the plan as a whole. All interest
credited to the DROP participant account shall be included in the
final cash settlement.
F.
Early termination. A DROP participant may withdraw from the DROP
at any time and no penalty shall be imposed for early termination
of DROP participation. However, the DROP participant shall not be
permitted to make any withdrawals from the DROP participant account
until DROP participation has ended. This section applies when employment
is terminated.
G.
Payout.
(1)
Upon the termination date set forth in the DROP election form or
on such date as the DROP participant withdraws or is terminated from
the DROP, if earlier, the normal retirement benefits payable to the
DROP participant or the DROP participant's beneficiary, if applicable,
shall be paid directly to the DROP participant or beneficiary and
shall no longer be credited to the DROP participant account. Within
45 days following the actual termination of a DROP participant's employment
with the Township, the accumulated balance in the DROP participant
account shall be paid to the DROP participant in a single lump-sum
payment. Such payment shall be made either in cash, subject to any
federal withholding as may be required, or as a direct rollover to
an Individual Retirement Account (IRA). If the DROP participant or
beneficiary fails to elect a method of payment within 60 days after
the DROP participant's termination date, the retirement system shall
pay the balance as a lump sum in cash.
(2)
The form of payment selected by the officer or surviving beneficiary
shall comply with the minimum distribution requirements of the Internal
Revenue Code of 1986, as may be amended.
H.
Disability during DROP. If a DROP participant becomes temporarily
disabled during the DROP period, the participation freezes and the
time period while on temporary disability does not count towards the
selected DROP participation period. Upon return to duty, the DROP
period shall resume, continuing with the remaining time left in the
DROP period. The DROP participant shall receive disability pay in
the same manner as disabled police officers that are not participating
in DROP. In no event shall a DROP participant on temporary disability
have the ability to draw from the DROP participant account. However,
notwithstanding any other provision in this subsection, if an officer
is disabled and has not returned to work as of the date of the required
resignation, then such resignation shall take precedence over all
other provisions herein, and said officer shall be required to resign.
If a DROP participant becomes eligible for a disability pension benefit
due to a permanent, service-related disability under Act 600 and terminates
employment, the monthly normal retirement benefit shall cease.
I.
Death. If a DROP participant dies before the DROP participant account
balance is paid, the DROP participants' beneficiary under Act 600
shall have the same rights as the DROP participant to withdraw the
DROP participant account balance. The monthly benefit credited to
the DROP participant's DROP participant account during the month of
the DROP participant's death shall be the final monthly benefit for
DROP participation.
J.
Forfeiture of benefits. Notwithstanding a member's participation
in the DROP, a member 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 DROP account. In such a case, the member
shall only be entitled to receive the contributions, if any, made
by the member to the Township's police pension fund, without interest.
K.
Killed-in-service survivor benefit. If a DROP participant is killed
in service, the DROP participant's beneficiaries under Act 600 shall
be entitled to apply to the Commonwealth of Pennsylvania and receive
a recalculation for payment of survivor benefits at 100% of the DROP
participant's salary at the time of death.
L.
Cost of management for DROP. The Police Association and the Township
agree that any costs or fees associated with the management of the
DROP accounts shall be paid directly from the police pension fund
and not by the Township.
M.
Amendment. Any amendments to this article shall be consistent with
the provisions covering deferred retirement option plans set forth
in any applicable collective bargaining agreement or state or federal
law, and shall be binding upon all future DROP participants and upon
all DROP participants who have balances in their DROP participant
accounts.
