As used in this article, the following terms
shall have the meanings indicated:
ACTUARY
A member of the American Academy of Actuaries or an individual
who has demonstrated to the satisfaction of the Insurance Commissioner
of Pennsylvania that he or she has the educational background necessary
for the practice of actuarial science and has had at least seven years
of actuarial experience, or a firm, partnership or corporation of
which one or more members meet the above requirements.
SALARY
The fixed, stated amount of compensation paid at periodic
intervals, longevity payments, education pay, and overtime compensation
for hours actually worked to a full-time police officer by the Township.
The term salary shall not include any other payments made by the Township
to a full-time police officer including, but not limited to, payments
for unused vacation time, personal days, etc.
[Added 6-5-2001 by Ord. No. 2-01; amended 9-1-2009 by Ord. No. 2-09]
The Supervisors shall employ or retain the services
of an actuary to conduct and file the actuarial study required to
be filed with the Department of Community Affairs of Pennsylvania
pursuant to Act 293 of 1972, as amended.
The Police Pension Fund shall be maintained
by:
A. A charge against each full-time member of the police
force.
B. Annual appropriations made by the Township.
C. Payments made by the State Treasurer to the Township
Treasurer from moneys received from taxes paid upon premiums by foreign
casualty insurance companies for purposes of pension retirement for
policemen.
D. Gifts, grants, devises or bequests granted to the
pension fund.
[Amended 7-2-1991 by Ord. No. 4-91; 6-5-2001 by Ord. No. 2-01]
The amount of pension or retirement benefits
payable under this article shall be as follows:
A. Full-time police officers who retired on or before
December 31, 1992, shall have retirement benefits computed in accordance
with the Police Pension Ordinance in effect upon the date of such
full-time police officer's retirement.
B. Full-time police officers who retired on or after
January 1, 1993, but on or before December 31, 1999, shall have retirement
benefits computed in accordance with the Police Pension Ordinance
in effect upon the date of such full-time police officer's retirement.
C. Full-time police officers shall be entitled to a pension
or retirement benefit payable monthly during the balance of the full-time
officer's life following actual retirement computed as follows:
(1) One-half of the monthly average salary of the full-time
police officer during the officer's last 36 months of employment with
the Township.
(2) If the full-time police officer shall have a minimum period of total service with the Township of 26 or more years, such full-time police officer shall receive a service increment in the amount of $100 per month which shall be added to the monthly pension benefit computed in accordance with §
25-9C(1).
[Added 6-14-1989 by Ord. No. 3-89; amended 7-2-1991 by Ord. No. 4-91; 1-6-2003 by Ord. No.
2-03; 4-6-2010 by Ord. No. 2-10]
Any full-time police officer who is totally
and permanently disabled from injuries incurred in service as a police
officer of the Township shall be entitled to monthly disability benefits
equal to 50% of the participant's monthly salary at the time of total
and permanent disability. There shall be no offset of worker's compensation
benefits. This disability benefit shall be subject to the Social Security
offset established by Act 600, as amended by Act 30. Monthly disability
payments shall commence upon the expiration of any payments under
disability insurance provided by the Township or on the 121st day
following the inception of such total and permanent disability, whichever
occurs later.
[Added 6-14-1989 by Ord. No. 3-89; amended 1-6-2003 by Ord. No. 2-03; 4-6-2010 by Ord. No. 2-10]
A. Upon the
death of a participant who is receiving a retirement benefit or upon
the death of a participant who is eligible to receive retirement benefits
(other than a participant who is killed in the performance of police
duties), the surviving spouse shall be entitled, during his or her
lifetime, to receive a pension equal to 50% of the pension the participant
was receiving or would have been receiving had the participant been
retired at the time of the participant's death. If there is no surviving
spouse, or if the surviving spouse subsequently dies, then the child
or children of the participant under the age of 18, or, if attending
college, under the age of 23 years, shall be entitled to receive a
pension equal to 50% of the pension the participant was receiving
or would have been receiving had the participant been retired at the
time of death. Such pension to the child or children shall continue
until the child or children reach the age of 18 years or, if attending
college, reach the age of 23 years.
B. For the purposes of this §
25-13 the phrase "attending college" shall mean the eligible child is registered at an accredited institution of higher learning and is carrying a minimum course load of seven credit hours per semester.
C. Participants
who are killed in the line of service shall receive benefits pursuant
to the Act of October 9, 2009 (P.L. ____, No. 51), which amended the
Act of June 24, 1976 (P.L. 424, No. 101), referred to as the Emergency
and Law Enforcement Personnel Death Benefits Act, as previously amended
April 2, 2002 (P.L. 213, No. 20), October 6, 2005 (P.L. 319, No. 59)
and July 2, 2007 (P.L. 68, No. 21).
[Added 12-1-1992 by Ord. No. 9-92]
On or after January 1, 1993, a participant may
obtain full service credit for each year of military service or fraction
thereof, not to exceed three years, for military service completed
prior to employment of the participant by the Township as a full-time
police officer. 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
Study Commission, but not to exceed 10%, to the participant'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 4.75%, compounded
annually, from the date the participant became a full-time police
officer of the Township to the date of payment for the purchase of
such credit for military service. Notwithstanding the foregoing, a
participant shall not be able to purchase credit for nonintervening
military service if the participant is 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 government agency, with the exception
of a participant 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. Chapter 67.
The Police Pension Fund shall be maintained
under the direction of the Board of Supervisors of this Township who
shall act as trustees of the pension fund, and they shall have full
responsibility for the administration of the program established hereunder
and shall hold, invest, reinvest and distribute all funds or other
property received pursuant hereto in trust for the purpose of this
article. The Supervisors may receive at any time and from time to
time gifts, grants, devises or bequests to the pension fund or any
money or property, real or personal or mixed, to be held by them in
trust for the benefit of the fund and in accordance with the provisions
hereof. The Supervisors shall have full power and authority by a majority
action of their members to do all acts, to execute, acknowledge and
deliver all instruments and to exercise for the sole benefit of the
participants hereunder any and all powers and discretions necessary
to implement and effectuate the purpose of this article, including,
for purposes of illustration but not limited to, any and all of the
following:
A. To hold, invest and reinvest all funds received pursuant
to this article in such legal investments as may be authorized as
legal investments under the laws of the Commonwealth of Pennsylvania.
B. To enter into contracts or deposit agreements on behalf
of this Township with one or more banks, trust companies, savings
and loan associations or insurance companies, in order to provide
the pension and other benefits herein set forth, and to pay the premiums
and deposits required by the purchase of said contracts.
C. To retain or purchase as an investment any form of
annuity or contracts of similar nature and to exercise with respect
thereto any right or incident of ownership.
D. To retain any property which may at any time become
an asset of the fund, as long as said Supervisors may consider it
advisable.
E. To make distribution of moneys in the fund, in accordance
with the terms of this article.
The pension payments herein provided for shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant or his
or her designated beneficiary. No participant or his or her beneficiary
shall have any right to alienate, encumber or assign any assets of
the fund held by the Supervisors on his or her behalf or any of the
benefits or payments or proceeds of any contract or agreement purchased
or acquired by the Township hereunder. Any contract or agreement purchased
or acquired pursuant to this article upon the life of such participant
shall contain a provision, in substance, that to the extent permitted
by law, none of the benefits or payments or proceeds of such contract
or agreement shall be subject to any legal process by any creditor
of such participant or beneficiary of such participant.
[Amended 5-6-1986 by Ord. No. 1-86]
All costs and expenses incurred in administering
the Police Pension Fund, including but not limited to the compensation
paid to an actuary and to any custodian or Trustee of the fund, may
be paid from the assets of the Police Pension Fund.
[Added 12-2-2008 by Ord. No. 8-08]
A. Definitions. For the purposes of this §
25-16.1, the following terms shall have the meanings set forth:
ASSOCIATION
The West Hempfield Township Police Association, the duly
recognized collective bargaining unit representing all eligible full-time
police officers of the West Hempfield Township Police Department.
BENEFICIARY or BENEFICIARIES
The individual or individuals identified by a DROP participant
to receive the balance of such DROP participant's DROP account
in the event of the death of the DROP participant during the DROP
participation period.
DROP
Deferred Retirement Option Plan.
DROP ACCOUNTS
Separate accounts created for the exclusive purpose of accepting
monthly pension checks of DROP participants while they are participating
in the DROP Program.
DROP NOTICE
The form prescribed by the Township and Association upon
which a member or officer informs the Township of his or her irrevocable
intent to participate in the DROP Program. Once submitted to the Township
and approved by the Township, the DROP notice is irrevocable, except
as otherwise provided herein.
DROP PARTICIPANT or PARTICIPANT
A member or officer who has properly submitted a DROP notice
to participate in the DROP, which has been approved by the Township's
Board of Supervisors, and who has commenced his or her DROP participation
period.
DROP PARTICIPATION PERIOD
The period of time from the commencement of the officer's
(i.e., participant's) participation in the DROP as stated in
the officer's DROP notice, which has been approved by the Township,
until the officer's separation from employment as a police officer
in West Hempfield Township (i.e., resignation date as defined below),
which in no event shall be less than 12 months and shall not exceed
36 months.
DROP PERIOD
The period of time during which an officer can participate
in a DROP, which in no event shall be less than 12 months or exceed
more than 36 months.
DROP PROGRAM
The program implemented by the Township and Association pursuant
to which members of the Township's Police Department may establish
DROP accounts while continuing to provide police service for the Township
as described herein. The DROP Program is an integral component of
the plan.
PLAN
The West Hempfield Township Police Pension Plan.
RESIGNATION DATE
The date specified in the participant's irrevocable
DROP notice approved by the Township on which the member or participant
shall resign from employment with the West Hempfield Township Police,
which shall be no less than 12 months and no more than 36 months from
the commencement of the officer's DROP participation period.
TOWNSHIP
The Township of West Hempfield, Commonwealth of Pennsylvania,
including its elected and appointed officials.
B. Eligibility. Any member who has reached his/her normal retirement
date (as defined by the plan) may elect to become a DROP participant
on the first day of any month following satisfaction of the requirements
for receipt of normal pension benefits under the plan, which is a
minimum of 25 years of service and attaining at least the age of 50.
In addition, in order to be eligible to participate in the DROP, an
officer must:
(1)
Written DROP notice. An officer electing to participate in the
DROP must complete and execute a DROP notice. The DROP notice must
be signed by the officer and notarized and submitted to the Township
at least 45 days prior to the date on which the officer wishes his/her
DROP participation period to commence, which shall be specified on
the DROP notice. The DROP notice shall include a notice to the Township
by the member that the member shall resign from employment with the
West Hempfield Township Police Department effective on a specific
date (the resignation date) which shall be no less than 12 months
and no more than 36 months from the commencement of the officer's
DROP participation period. Once approved by the Township, an officer's
resignation date shall be irrevocable. An officer shall cease to work
as a police officer on the officer's resignation date, unless
the Township terminates or honorably discharges the officer prior
to the resignation date.
(2)
Finality of election and approval by the Township. All retirement documents required by the Police Pension Plan Administrator must be filed and presented to the Township for approval of retirement, participation in the DROP and payment of pension benefits. Once the Township approves a DROP notice, it is irrevocable except as provided in §
25-16.1F.
C. Pension contributions. After an officer's DROP participation
period commences, the officer shall not be required to make any contributions
to the plan during his/her DROP participation period.
D. Accrual of nonpension benefits. After an officer elects to participate
in the DROP Program, all other contractual benefits shall continue
to accrue in accordance with the collective bargaining agreement with
the exception of vacation and those provisions relating to the plan.
Vacation accrual shall be frozen at the days accrued as of the date
the DROP participation period commences.
E. Disability during DROP period.
(1)
The Township, Association and all DROP participants all recognize
the unique nature of the DROP Program and the benefits that it offers
to the DROP participant and the Township. Such benefits for the Township,
however, are based on the DROP participant being able to work to provide
the Township with the benefit of his or her experience, as stated
above. It is recognized that if the DROP participant cannot work by
providing police services for the Township, the Township will suffer
a significant burden and the purpose and intent behind the DROP Program
will not be fulfilled to the detriment of the taxpayers of West Hempfield
Township.
(2)
Accordingly, if a DROP participant becomes temporarily incapacitated
during his DROP participation period, as defined in the Township's
disability benefit plan, the following shall apply: The DROP participant
shall continue to participate in the DROP Program as if fully employed.
Such DROP participant shall receive disability benefits (including
heart and lung benefits, if eligible and such benefits are applicable)
in the same amount and under the same terms as disabled police officers
that are not participating in DROP Program, except:
(a)
If a DROP participant is disabled and has not returned to work
as of his required resignation date (as defined above), such DROP
participant shall be required to resign on his or her resignation
date. Such member shall not be entitled to any other disability payment
or monthly disability pension benefit from the Township or the plan.
(b)
If a DROP participant becomes and remains incapacitated for
a period of six months during his or her DROP participation period,
the DROP participant shall be honorably discharged from employment
at the end of the sixth month. At that time, such member shall receive
the balance of his or her DROP account and, thereafter, commence receiving
his or her frozen monthly pension benefit in the amount calculated
when the officer became a DROP participant in the DROP Program. Such
member shall not be entitled to any other disability payment or monthly
disability pension benefit from the Township or the plan.
F. Death during DROP participation period. If a DROP participant dies
during the DROP participation period, his or her survivor as defined
by the plan shall be entitled to receive benefits and his or her DROP
account shall be handled according to the following:
(1)
If a DROP participant dies during his or her DROP participation
period and the Act 600 killed-in-service death benefit is legally
payable (pursuant to the limitations and requirements of Act 600)
to the participant's survivors as defined by the plan, the participant's
DROP notice shall be revoked and the DROP account shall not be payable
to any designated beneficiary of the deceased DROP participant, but
such funds will revert back to the plan.
(2)
If death occurs during the DROP participation period but the
Act 600 killed-in-service death benefit is not legally payable (pursuant
to the limitations and requirements of Act 600) to the participant's
survivors as defined by the plan, the DROP participant's DROP
notice shall be revoked, the Beneficiary shall receive a lump-sum
payment of the DROP account balance and the participant's survivors
as defined by the plan shall receive the survivor's benefit as
defined by the plan.
G. The monthly pension benefit calculation and limitation on pension
accrual. After the effective date of the DROP notice, the officer
shall no longer earn or accrue additional years of service for pension
calculation purposes under the plan. No benefit increases that may
occur after a DROP participant's commencement of participation
in the DROP Program, including bargained pension enhancements, mandated
pension enhancements through arbitration or pension enhancements mandated
by law, will apply to the DROP participant and shall not increase
the DROP participant's frozen pension under the plan, as calculated
on the effective date of the DROP participation period. The average
monthly compensation of the officer for pension calculation purposes
shall remain as it existed on the effective date of the DROP participation
period. Earnings or increases in earnings thereafter shall not be
recognized or used for the calculation or determination of any benefits
payable by the plan. The pension benefit payable to the members shall
increase only as a result of cost-of-living adjustments in effect
under the plan on the effective date of the member's participation
in the DROP Program or by applicable cost-of-living adjustments specifically
granted to DROP participants or retirees thereafter.
H. Termination of employment. On the DROP participant's resignation
date, his or her employment shall terminate automatically.
I. DROP pension payments. Upon entry into the DROP Program, a member's
service and average applicable compensation (as each are defined under
the plan) will be frozen and his or her pension payment will be calculated
as if they retired and ceased employment with the Township on the
effective date of such officer's DROP participation period. The
monthly pension payment shall be transferred into the DROP participant's
DROP account.
J. DROP accounts. During the period of participation in the DROP, the
member's monthly pension payment shall be credited to such member's
DROP account on the first day of each month. Interest shall be credited
annually on the balance in the DROP account at the rate of 4% per
annum. The member shall receive an annual statement showing the accumulated
balance in the member's DROP account. The monthly pension payment
credited to a member's DROP account during the month of the member's
death or termination of participation in the DROP, if earlier, shall
be the final monthly pension payment credited to such member's DROP.
A member may not draw from nor access his or her DROP Account during
the period of participation in the DROP.
[Amended 9-1-2009 by Ord.
No. 2-09]
K. Distribution options. Commensurate with DROP Program participation,
a member must make an election on forms designated by the Township
of the payout option(s) desired upon termination of the DROP Period.
This election may be changed at any time before the resignation date.
The distribution options are as follows:
(2)
Rollover to another eligible retirement plan or to an IRA (as
permitted by law).
L. Beneficiary designation. Commensurate with DROP Program participation,
a member must make an election, on forms designated by the Township,
of his or her beneficiary or beneficiaries.
M. Revocation of DROP participation. A DROP participant who voluntarily
terminates his or her employment for any reason prior to the resignation
date stated in his or her DROP notice (which has been accepted by
the Township) shall automatically revoke his or her DROP participation
election and cease employment with the Township.
N. Amendment. Any amendments to the DROP shall be consistent with the
provisions covering deferred retirement option plans set forth in
any applicable collective bargaining agreement and shall be binding
upon all future DROP participants and upon all DROP participants who
have balances in their DROP accounts. The DROP may only be amended
by a written instrument, signed by an authorized representative of
the Township and the Association, not by any oral agreement or past
practice.
O. Interpretation of provisions.
(1)
This §
25-16.1 shall be interpreted under the laws of the Commonwealth of Pennsylvania. An officer's election to participate in the DROP Program shall in no way be construed as a limitation on the Township's right to suspend or terminate an officer for just cause or to grant the officer an honorable discharge based upon a physical or mental inability to perform his or her duties. Nothing provided hereunder shall be construed as a change to the parties' practice of calculating pensionable compensation, and except for the ability to establish a DROP account and participate in the DROP Program, nothing herein is intended to create new pension benefits of any kind which did not exist as of December 31, 2008.
(2)
Nothing provided hereunder shall guarantee any officer or DROP
participant a specific term of employment. All DROP participants shall
be subject to the same terms and conditions of employment (except
those relating to benefits under the plan and retiree benefits), rules
and regulations and disciplinary procedures as other officers and
members who are not DROP participants.
(3)
Except as provided in this §
25-16.1, all DROP participants shall be considered to be employees of the Township and subject to the same terms and conditions of employment contained in all Township policies, directives, and orders as well as in the collective bargaining agreement between the Township and the Police, including but not limited to the obligation to continue to make health care contributions, just as all other police officers employed by the West Hempfield Township Police Department who are not DROP participants.
P. Cost to participants. Participants will pay any costs of the Township
and the plan relating to the operation and administration of the DROP
Program.
Q. Compliance with a future law. The Township and the Association and
all current and future DROP participants (as a condition of participating
in the DROP) recognize that laws may be enacted that impact the provisions
of this DROP. The Township, the Association and any current and future
DROP participants (as a condition of participating in the DROP) agree
and acknowledge that if any such law requires that this DROP be altered,
changed, modified or amended in any way, such changes shall be made
as required by such law within the required time period. The Association
and the Township shall meet to discuss how to most efficiently implement
those changes, and any agreement reached in those discussions shall
be binding on the Township, the Association and any current and future
DROP participants. Such discussions, however, shall not in any way
delay the implementation of any such required change as required by
law.