[Ord. 403. Passed 8-20-2002]
The existing Police Pension Fund established initially under the provisions of Ordinances 19 and 27 (as amended) and transferred into the new fund established under the provisions of Ordinance 137 (as amended) and as governed by the provisions of Resolution No. 92-22 (as amended from time to time by the Board of Supervisors) shall hereinafter be maintained and governed by the provisions of this newly enacted Chapter
292 entitled "Police Pension Fund."
[Ord. 403. Passed 8-20-2002]
(a) Age. "Age" shall mean the age attained by the employee
at his or her last birthday.
(b) Anniversary Date. "Anniversary date" shall mean any
January 1 after the effective date.
(c) Average Applicable Compensation. "Average applicable
compensation" shall mean the average monthly salary of the employee
at any time of reference computed over the last 36 months (or such
shorter period as represents the member's total period of continuous
employment by the Township) of his continuous employment by the Township
prior to such date of reference. For purposes of computing average
applicable compensation, actual monthly salary shall include base
pay, longevity pay, overtime, night-differential pay (if any) and
disability insurance benefits paid from a Township-sponsored plan,
but shall exclude reimbursed expenses or payments in lieu of expenses,
nonsalary compensation (including, but not limited to, fringe benefits
provided by the Township) or any other payments or allowances (such
as uniform allowances). Average applicable compensation shall include
pickup contributions (if any) paid for the member by the Township
pursuant to Section 414(h) of the Internal Revenue Code and any elective
salary deferrals made by the member pursuant to Sections 457 or 125
of the Internal Revenue Code.
(d) Board. "Board" shall mean the Board of Supervisors
of Lower Gwynedd Township.
(e) Chief Administrative Officer. "Chief Administrative
Officer" shall mean the person who has primary responsibility for
the execution of the administrative affairs of this pension plan or
the designee of that person.
(f) Early Retirement Benefit. "Early retirement benefit" shall mean the retirement benefits described in Section
292.05(b) of this chapter.
(g) Employee. "Employee" shall mean any person in the
full-time employ of the Township Police Department whose customary
employment is for not less than 40 hours a week.
(h) Fund. "Fund" shall mean all assets held by the trustee
under the trust agreement relating to this Police Pension Plan.
(i) Member. "Member" shall mean any employee who has satisfied eligibility requirements established in Section
292.03 of this chapter.
(j) Normal Retirement Benefit. "Normal retirement benefit" shall mean the retirement benefits described in Section
292.05(a) of this chapter.
(k) Normal Retirement Date. For employees hired prior to January 1, 2013,
"normal retirement date" shall mean the next day of the month following
the date on which the member attains age 50 and completes 25 years
of service, whichever is later to occur. For employees hired on or
after January 1, 2013, "normal retirement date" shall mean the next
day of the month following the date on which the member attains age
55 and completes 25 years of service, whichever is later to occur.
[Amended 10-8-2013 by Ord. No.
490]
(l) Plan. "Plan" shall mean the Police Pension Plan for
Lower Gwynedd Township, as herein set forth and as the same may hereafter
be amended.
(m) Plan Year. "Plan year" shall mean a period of 12 consecutive
months commencing on any January 1st and ending on the following December
31st.
(n) Police Pension Committee. "Police Pension Committee"
shall mean a five-member committee composed of two Board members,
the Township Manager, one member of the Police Department and a member
at large selected by the Board of Supervisors.
(o) Salary. "Salary" shall mean earnings including base
pay, longevity pay, night-differential (if any), overtime pay, pickup
contributions pursuant to Section 414(h) of the Internal Revenue Code
disability insurance benefits, and elective salary deferrals made
by the member pursuant to Sections 457 or 125 of the Internal Revenue
Code, but shall exclude reimbursement expenses or payments in lieu
of expenses, nonsalary compensation, including, but not limited to
fringe benefits provided by the Township and any other allowances
paid by the Township (i.e., uniform allowances.)
(p) Service. "Service" shall mean the aggregate of the
member's total periods of employment as a full-time employee of the
Township's Police Department. If a member enters military service,
either voluntarily or by conscription, after he has been employed
for at least six months, such time spent in the Armed Forces of the
United States during a period of national emergency shall be counted
as service for purposes of the Plan, provided that such member returns
to police service with the Township within six months after his discharge
or release from such active duty in the Armed Forces of the United
States. The time spent in military service due to voluntary extension
of such military service during a period of peacetime shall not be
included as service for the purposes of this Plan. Time spent on Reserve
or National Guard Training shall be included as service for purposes
of this plan.
(q) Township. "Township" shall mean Lower Gwynedd Township,
Montgomery County, Commonwealth of Pennsylvania.
(r) Trust Agreement. "Trust agreement" shall mean the
contract between the Township and the trustee establishing the terms
by which and under which the Fund is invested, distributed, accounted
for and terminated, as the same now exists and as it may hereafter
be amended.
(s) Trustee. "Trustee" shall mean the Board of Supervisors
of Lower Gwynedd Township or any other agency or person appointed
by such to serve in that capacity as set forth in the trust agreement.
(t) Vesting. "Vesting" shall mean a nonforfeitable portion of the normal retirement benefit. See Section
292.07.
[Ord. 403. Passed 8-20-2002]
(a) All persons who are employees (as defined in this
Plan) as of the effective date hereof shall be a member as of the
effective date.
(b) Any person who becomes an employee after the effective
date hereof shall become a member on the first day of service as an
employee.
[Ord. 403. Passed 8-20-2002]
(a) Contributions by Members. Members shall pay into the Fund, monthly, an amount equal to not less than 5% nor more than 8% of monthly compensation. Where positions covered by the Fund are included in an agreement under the Federal Social Security Act, members shall pay into the Fund, monthly, 5% of monthly compensation. Notwithstanding the above, member contributions may, on an annual basis, be reduced or eliminated by ordinance or resolution. Salary for this purpose shall be as defined in Section
292.02 of this chapter. Individual records of contributions by members shall be maintained, including all interest credited to the individual account. Interest to be credited shall be 5% per annum. Interest shall be credited from the end of the plan year in which paid to the end of the month after which a refund becomes payable.
[Amended 8-26-2008 by Ord. No. 460]
(b) Refund of Member's Contributions. Any member who for
any reason shall be ineligible to receive a pension after having made
contributions shall be entitled to a refund of his individual account
balance; such refund is payable immediately upon discontinuance of
his employment with the police force or within a reasonable time (not
more than 45 days after discontinuance). If such discontinuance is
due to death, then such refund shall be paid to his designated beneficiary
or, in the absence hereof, to his estate. If the disabled or retired
member is receiving a benefit by reason of disability or retirement,
then the refund payable to the beneficiary is equal to the individual
account balance at the date of disability or retirement, less any
payments made to the Member.
(c) Deposits. Contributions by members shall be remitted
to the trustees not less than monthly.
(d) State Aid. The portion of the payments made by the State Treasurer to the Township and designated by the Board to be allocated to the Police Pension Fund from money received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement or disability benefits for policemen shall be used as follows: to reduce the unfunded liability, or, after such liability has been fully funded, to apply against the annual obligation of the Township for future service costs, or to the extent that the payment may be in excess of such obligations, and to reduce member contributions pursuant to Section
292.04(a) hereof.
(e) Township Contributions. Subject to the provisions
and limitations set forth in other sections of this Plan, the Township
shall contribute the amounts certified to be necessary by the Fund's
actuary to provide the benefits provided by this Plan.
(f) Military Service. Any member employed for a period
of at least six months and who thereafter shall enter into the military
service of the United States shall have credited to his employment
record for pension or retirement benefits all of the time spent by
him in such military service, if such person returns or has heretofore
returned to his employment within six months after his separation
from the service.
(g) Other Contributions. The Fund shall be authorized
to receive by gift, grant, devise or bequest, any money or property,
real, personal or mixed, in trust for the benefit of the Fund. The
trustee of the Fund shall be subject to such directions not inconsistent
with this Plan as the donors of such funds and property may prescribe.
[Ord. 403. Passed 8-20-2002; Ord. 435. Passed 9-6-2005]
(a) Normal Retirement. Each member may retire on or at
any time after his normal retirement date. Any member so retiring
shall be entitled to receive a monthly pension commencing the date
of actual retirement and ending with the payment made as of the first
day of the month in which his death occurs. For employees hired prior
to January 1, 2013, the normal retirement date shall mean the next
day of the month following the date on which the member attains age
50 and completes 25 years of service, whichever is later to occur.
For employees hired on or after January 1, 2013, the normal retirement
date shall mean the next day of the month following the date on which
the member attains age 55 and completes 25 years of service, whichever
is later to occur. The monthly pension to which such retired member
shall be entitled to under this plan shall be equal to 50% of such
member's average applicable compensation. The member's first benefit
check shall be prorated to correspond to the member's date of retirement.
In calculating the prorated first benefit check, the monthly benefit
amount shall be reduced by multiplying it by a fraction, which numerator
consists of the date of the month on which the early retirement is
effective and the denominator consists of the total number of days
in that month. The payment of any previously withheld, prorata portion
of each eligible member's first normal retirement benefit check shall
be retroactive to July 1, 2001.
[Amended 10-8-2013 by Ord. No. 490]
(b) Early Retirement Benefit. The early retirement benefit
shall be provided to a member with 20 or more years of service who
terminates employment prior to the completion of superannuation retirement
age and service requirements and who files a written application for
an early retirement benefit with the Township Board. The early retirement
benefit shall become effective as of the date of early retirement
which shall be designated on the application and shall be the actuarial
equivalent of a partial superannuation retirement benefit calculated
as follows:
(1)
A partial superannuation retirement benefit
shall be determined by applying the percentage that the member's years
of service bear to the years of service that the member would have
rendered had the member continued to be employed until his superannuation
retirement date to the gross pension amount calculated using the average
applicable compensation during the appropriate period prior to the
member's termination of employment.
(2)
The actuarial equivalent of the partial superannuation
retirement benefit shall be determined by actuarially reducing the
partial superannuation retirement benefit to reflect that it will
commence on the effective date of the early retirement rather than
on the date on which the member would have completed superannuation
age and service requirements. The actuarial reduction shall be calculated
using the actuarial assumptions reported in the last actuarial valuation
report filed with the Public Employee Retirement Commission under
the act of December 18, 1984 (P.L. 1005, No. 205), known as the "Municipal
Pension Plan Funding Standard and Recovery Act."
(3)
The member's first benefit check shall be prorated
to correspond to the member's date of early retirement. In calculating
the first benefit check, the monthly benefit amount shall be reduced
by multiplying it by a fraction, which numerator shall consist of
the date of the month on which the early retirement is effective and
which denominator shall consist of the total number of days in that
month. The payment of any previously withheld pro rata portion of
each eligible member's first early retirement benefit check shall
be retroactive to July 1, 2001.
(c) Postponed Retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the Plan until he actually retires or ceases to be an employee and ceases to make any contributions required pursuant to Section
292.04(a) hereof.
(d) Cost-of-Living Adjustment. The following provisions
shall apply to all cost-of-living adjustments (COLAs) calculated for
all members who retired after December 31, 1988, and before January
1, 1999:
(1)
At every three-year anniversary of the retired member's retirement date, the Consumer Price Index for all urban consumers (CPI-U) for Philadelphia shall be examined and if that Index has increased by 9% or more from the Index which existed on the date of retirement or the date of the previous three-year anniversary of retirement, there shall be an increase in the basic retirement benefit of 5%. If such increase in the Index over the three-year period is less than 9%, the basic retirement benefit shall be increased by 1/3 of the total Index increased from the date of retirement or the date of the previous three-year anniversary of retirement. After 1998, the CPI-U for the U.S. city average shall be used instead of the CPI-U for Philadelphia. The basic retirement benefit shall not include the portion of the monthly pension resulting from the length-of-service increment [Section
292.05(g)].
(2)
The total COLA shall not exceed a 20% increase
above the initial retirement benefit.
(3)
In no event shall the total benefit exceed 75%
of the average applicable compensation used in computing the initial
retirement benefit.
(4)
No COLA shall be granted which would impair
the actuarial soundness of the Pension Fund.
(e) COLA Adjustments after December 31, 1998. For all members who retired
after December 31, 1998, COLA adjustments shall be calculated in accordance
with the applicable collective bargaining agreement in effect as of
the date of the retired member's retirement.
[Amended 10-8-2013 by Ord. No.
490]
(f) The following provisions shall apply to all COLAs:
(1)
No COLA shall be applied which would reduce
the monthly pension benefit to an amount less than the initial monthly
pension.
(2)
The COLA shall not be applied to the portion of the monthly pension resulting from the length-of-service increment [Section
292.05(g)].
(3)
The COLAs shall not be applied to the benefit
of the surviving spouse nor a dependent child.
(4)
No cost-of-living increase shall be granted
which would impair the actuarial soundness of the Pension Fund.
(5)
On and after the effective date of termination of the Plan pursuant to Section
292.13 hereof, no further COLAs will be made.
(6)
No COLAs shall be provided for members hired on or after January
1, 2013.
[Added 10-8-2013 by Ord. No. 490]
(g) Length-of-Service Increment. A member's normal retirement benefit will be increased by a $400 per year length-of-service increment, provided that member served after 25 years of service. Such increment will be paid in addition to other entitlements pursuant to Chapter
292 hereof but shall be limited to a total maximum increment of $1,200 per year.
(h) Disability Benefit.
[Amended 8-26-2008 by Ord. No. 460]
(1)
"Total disability" shall mean any condition arising from line
of duty, service-connected illness or injury which precludes a member
from performing the duties associated with the normal occupational
requirements of any position within the Police Department as certified
by a physician designated by the municipality. Any member who suffers
a total disability shall be entitled to receive a disability benefit
from this plan commencing at the date of the member's disability.
The benefit shall be equal to 50% of the member's salary at the
time the disability was incurred, reduced by the amount of social
security disability benefits received for the same injury, if any.
The Board reserves the right to require disabled members to present
evidence of total disability and of the continuance of such condition
from time to time and further reserves the right to require members
to submit to the medical examination by practitioners(s) selected
by the Board as a precondition to the continued payment of benefits.
If the disabled member dies before he receives total disability benefits
from the Fund in an amount equal to his total contributions, plus
credited interest, the unpaid balance shall be paid in a lump sum
to his designated beneficiary.
[Amended 10-8-2013 by Ord. No.
490]
(2) In
no event, however, will disability benefits be less than those provided
by the plan ordinances in effect prior to enactment of Act 30 as follows:
the benefit shall be equal to 50% of the average applicable compensation
calculated as of the time the disability commenced off-set by 100%
of the amount of any payments for which the member shall be eligible
under the Pennsylvania Occupational Disease Act of June 21, 1939 (P.L.
556, No. 284), as amended, 77 P.S. § 1201 et seq. The benefit
shall commence as of the first day of the month after the onset of
the disability as certified by a licensed physician chosen by the
Board. Disability benefits will be paid on a monthly basis and continue
until the member recovers, dies or reaches his normal retirement date.
Upon attaining his normal retirement date, the disabled member shall
become a retired member and shall then be eligible for a pension benefit.
The amount of the pension benefit shall be equal to 50% of the average
applicable compensation calculated as of the time the disability commenced,
plus any length of service increment payable by reason of the fact
that service is credited up until the normal retirement date. This
pension benefit shall commence on the member’s normal retirement
date and shall be payable to and including the first day of the month
in which the member dies.
(i) Deferred Retirement Option Plan.
(1)
Definitions.
A.
Beneficiary. "Beneficiary" shall mean the individual
identified by a police officer to receive the contents of an officer's
DROP account in the event of the death of an officer during period
in which the officer is participating in the DROP, but before the
officer separates from employment.
B.
DROP. "DROP" shall mean the Deferred Retirement
Option Plan.
C.
DROP Account. "DROP account" shall mean the
separate account created to accept DROP participants' monthly pension
check while a DROP participant.
D.
Fund or Plan. "Fund" or "Plan" shall mean the
Police Pension Plan for Lower Gwynedd Township.
E.
Police Officer. "Police officers" shall mean
the police officers of Lower Gwynedd Township.
(2)
Eligibility. As of the effective date of this
subsection, police officers who have not retired prior to the implementation
of the DROP program may enter into DROP on the first day of any month
following completion of 25 years of credited service and attaining
the age of 50.
A.
Written Election. A police officer electing
to participate in the DROP must complete and execute a drop option
form prepared by the Township, which shall evidence the member's participation
in the DROP. The form must be signed by the member and notarized and
submitted to the Township prior to the date on which the member wishes
the DROP option to be effective. The DROP option notice shall include
an irrevocable notice to the Township, by the member, that the member
shall resign from employment with the Lower Gwynedd Township Police
Department effective on a specific date (the "resignation date").
In no event shall the resignation date be longer than forty-eight
(48) months from the execution of the DROP option form. 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. In addition, all retirement documents
required by the Police Pension Plan Administrator must be filed and
presented to the Township for approval of retirement and payment of
pension. Once a retirement application has been approved by the Township,
it is irrevocable.
B.
Pension Contributions. A police officer shall
not be required to make any contributions to the Fund during his/her
DROP period.
(3)
Limitation on Pension Accrual. After the effective
date of the DROP option, the police officer shall no longer earn or
accrue additional years of continuous service for pension purposes.
(4)
Benefit Calculation. For all retirement Fund
purposes, continuous service of a police officer 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 Police Pension Plan of Lower Gwynedd Township. 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 DROP. Earnings or increases in earnings thereafter
shall not be recognized or used for the calculation or determination
of any benefits payable by the Pension Plan. 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
DROP or by applicable cost of living adjustments granted thereafter.
(5)
Payments to the DROP 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 DROP, be paid
into the separate account established to receive the participant's
monthly pension payments. This account shall be designated the "DROP
account." An individual officer's DROP account shall be a self-directed
investment vehicle with the Officer having exclusive control over
the investment of his or her DROP account monies. The Township accepts
no responsibility and makes no guarantee for the performance of any
investments made by the officer, nor shall the Township guarantee
or be required to guarantee that an Officer's DROP account generate
a specific amount of earnings or income or any earnings or income
at all. Any investment losses occurring in a Officer's DROP account
shall be solely the responsibility of the Officer and the Township
assumes no liability or responsibility for the same.
(6)
Accrual of Non-Pension Benefits. After a police
officer elects to participate in the DROP program, all other contractual
benefits shall continue to accrue with the exception of those provisions
relating to the Police Pension Plan.
(7)
Payout. Upon the resignation date set forth
in the police officer's drop option notice or such date as the Township
separates the member from employment, the retirement benefits payable
to the police officer or the police officer's designated beneficiary,
if applicable, shall be paid to the police officer or beneficiary
and shall no longer be paid to the police officer's deferred retirement
option account. Within thirty (30) days following termination of a
police officer's employment pursuant to their participating in the
DROP program, the balance in the police officer's DROP account shall
be paid to the police officer in a single lump sum payment or at the
police officer's option, in any manner permitted by law.
(8)
Disability During DROP. If a police officer
becomes temporarily incapacitated during his participation in DROP,
that police officer shall continue to participate in the DROP 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 DROP. In no event shall a police officer on temporary disability
have the ability to draw from his DROP account. However, notwithstanding
any other provision in this paragraph, if a police officer is disabled
and has not returned to work as of his required resignation date,
then such resignation shall take precedence over all other provisions
herein and said officer shall be required to resign. If a police officer
becomes permanently disabled during the DROP period, the officer shall
be honorably discharged from employment; on such date, the police
officer may obtain the contents of his DROP account and, thereafter,
commence receiving his normal pension benefit.
(9)
Death. If a DROP participant dies before the
DROP account balances are paid, the participant members' designated
beneficiary shall have the same rights as the police officer to withdraw
the account balance.
(10)
Forfeiture of Benefits. Notwithstanding a police
officer's participation in the DROP Plan, a police officer 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 and interpreted thereunder,
shall forfeit his right to receive a pension, including any amounts
currently deposited in the DROP account. In such a case, the police
officer shall only be entitled to receive the contributions, if any,
made by the police officer to the Fund, without interest.
(11)
Amendment. Any amendments to the DROP Plan 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 deferred retirement option
accounts. The DROP Plan may only be amended by a written instrument,
not by any oral agreement or past practice.
(12)
Effective Date. The effective date of the changes
in this subsection is the date of adoption of the subsection by the
Township.
(13)
Construal of Provisions. A police 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 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.
(14)
Severability. The provisions of this subsection
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 subsection shall not be affected thereby. It is
hereby expressly declared as the intent of the Township that this
subsection would have been adopted had such unconstitutional or illegal
provision or provisions not been included herein. In the event that
the DROP provision is declared invalid or illegal by a court of competent
jurisdiction or through an administrative determination of the Office
of the Auditor General, the police officers shall have the right to
bargain in accordance with Act 111 over deletion of this benefit.
It is expressly understood that any such bargaining shall not involve
bargaining over a replacement provision.
[Ord. 403. Passed 8-20-2002; Ord. 412. Passed 8-19-2003]
(a) Preretirement Death Benefit. The surviving spouse of a member who dies before his 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 shall be entitled to receive a refund of all contributions made by him and then on deposit in the Trust Fund, plus interest thereon, computed at the rate described in Section
292.04(a), unless the member has designated another beneficiary for this purpose.
[Amended 8-26-2008 by Ord. No. 460]
(b) Pension Benefit to Surviving Spouse and Dependent
Children. If a member dies survived by a spouse or dependent children,
after having become eligible to receive a pension benefit; i.e., he
was eligible because he was already receiving a pension or he met
the age and service requirements, but he had not yet retired, then
a monthly pension benefit shall be provided, as follows:
(1)
The amount of the monthly pension benefit shall
be equal to 50% of the normal retirement benefit the member was receiving
or would have been entitled to receive if he had been retired when
he died.
(2)
The monthly pension benefit is payable to the
surviving spouse. If there is no surviving spouse, the benefit is
payable to the guardian of surviving dependent children until the
last dependent child dies or reaches his 18th birthday, whichever
comes first. Dependent children shall include stepchildren, adopted
children, and any child conceived at the time of the member's death
and thereafter born to the member's spouse.
(3)
If such member has no surviving spouse or dependent children, the member's beneficiary, or estate, if no beneficiary survives, shall be entitled to a refund of his accumulated member's contribution with credited interest reduced by the amount of pension benefit received by the member pursuant to Section
292.05 hereof.
(c) Killed in Service. If a member is killed while in service as a police
officer for the municipality, and he or she is survived by a spouse
or dependent child or children or a parent or parents, then survivor
benefits shall be provided by the Commonwealth of Pennsylvania in
accordance with Act 51 of 2009 and not by the Township.
[Amended 10-8-2013 by Ord. No.
490]
[Ord. 403. Passed 8-20-2002]
(a) If a member leaves the employ of the Township or ceases to be a member whether by reason of his transfer, resignation or discharge, or by reason of disability or retirement other than after becoming eligible for benefits pursuant to Section
292.05 of this Plan, he shall be entitled to a refund of all contributions made by him and then on deposit in the Trust Fund, plus interest thereon, computed at the rate described in Section
292.04(a).
(b) However, a member who has completed 12 or more years
of service may elect either Paragraph (b)(1) or (2) as described below:
(1)
He may elect to leave his contributions plus interest in the Trust Fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Board of Supervisors within 90 days of the date he ceases to be a full-time police officer a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y) where (x) is the number of years of service at date of termination and (y) is the number of years of service which the member would have had if he worked until the normal retirement date, multiplied by the benefits described in Section
292.05(a). Years of service shall be measured in years and completed months.
(2)
He may elect to receive a refund of all contributions made by him and then on deposit in the Trust Fund, plus interest thereon, computed at the rate described in Section
292.04(a). If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit as outlined in Paragraph (b)(1) above.
[Ord. 403. Passed 8-20-2002]
(a) Refund benefits becoming distributable pursuant to Section
292.07(a) and death benefits becoming distributable pursuant to the provision of Section
292.06(a) shall be paid in the form of a lump-sum distribution.
(b) The normal form of all benefits payable hereunder shall be a pension for the life of the member commencing on the date specified and ending with a payment made on the first day of the month in which the member dies, subject, however, to the payment of a death benefit calculated pursuant to Section
292.06(b).
[Ord. 403. Passed 8-20-2002]
(a) It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in Sections
292.05,
292.06 and
292.07, in accordance with the instructions received from the Board, provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the Fund for such purposes. Except as may otherwise be required by state or federal law, neither the trustee nor the Township in any way guarantees the sufficiency of the Fund to make such payments nor assumes any liability for the insufficiency thereof.
(b) The Township may employ an actuary, investment advisors,
counsel, or other professional consultants from time to time in connection
with the operation of the Fund or of this Plan. Such persons or entities
shall be compensated by the Township at such rates as may be agreed
upon by the Board. Such compensation may be paid from the Fund to
the extent authorized by applicable law.
(c) The trustee shall make an annual determination of
the fair market value of the Fund as of the anniversary date and as
of such additional dates as the Board may direct. The fair market
value of the Fund shall be reported to the actuary who shall calculate
the amount to be contributed to the Fund by the Township with respect
to each plan year in accordance with the assumptions most recently
adopted by the Board for the purpose of such computations, provided,
however, that the liability of the Township to make such contributions
is subject to all of the conditions and limitations set forth elsewhere
in this Plan.
[Ord. 403. Passed 8-20-2002]
(a) The Plan shall be administered by the Board of Supervisors.
The Board shall make and adopt rules and regulations for the efficient
administration of the Plan.
(b) The Board shall keep all data, records and documents pertaining to the administration of the Plan and shall execute all documents necessary to carry out the provisions of the Plan, and shall provide all such data, records and documents to the trustee, the actuary and other professionals whose services are employed pursuant to Section
292.09(b) of this Plan.
(c) The Board shall construe the Plan, shall determine
any questions or facts arising under the Plan and shall make all decisions
required of it under the Plan or the trust agreement and its construction
thereof, and such decisions taken thereon in good faith shall be final
and conclusive. It may correct any defect or supply any omission or
reconcile any inconsistency in such manner and to such extent as it
shall deem expedient to carry the Plan into effect, and it shall be
the sole judge of such expediency. The Board shall act uniformly with
respect to matters coming before it concerning employees in similar
circumstances.
(d) The Board shall serve without bond except as may be
otherwise required by law and without compensation for its services
as such.
(e) The members of the Board, and each of them, shall
be free of all liability for any act or omission except by willful
misconduct or gross negligence, and each of them shall be fully indemnified
by the Township against all judgements not involving findings of their
respective personal or collective willful misconduct or gross negligence
and against all cost, including counsel fees, incurred in defense
of actions brought against them.
(f) The Board shall make available to members, retired
members and terminated members and to their beneficiaries, for examination
during business hours, such records as pertain to the person examining.
(g) To enable the Board to perform its function, the Township
shall supply full and timely information to it on all matters relating
to the pay of all members, their retirement, death, termination of
employment and such other pertinent facts as the Board may require;
and the Board shall advise the trustee of such of the foregoing facts
as may be pertinent to the trustee's administration of the Trust and
shall give proper instructions to the trustee for the carrying out
of the purposes of this Plan.
(h) The Board shall enact such rules and regulations for
the conduct of its business and for the administration of the Plan
as it may consider desirable, provided the same shall not be in conflict
with any of the provisions of the Plan. All actions of the Board shall
be taken at meetings at which at least four members shall be present,
or by written resolutions occurred in by not less than four of its
members shall be the action of the entire Board. Written minutes shall
be kept of the meetings and actions of the Board.
[Ord. 403. Passed 8-20-2002]
(a) The Committee shall assist the Board in carrying out the duties and responsibilities as set forth in Section
292.10(a),(b) and (c) of this Plan.
(b) The Committee shall have no authority to make decisions.
It serves strictly in an advisory capacity to the Board.
(c) Committee members will meet at least semiannually
to review the plan administration, fund management, plan provisions
and other matters which from time to time may affect the Plan. The
Committee will present its findings and/or recommendations to the
Board.
(d) The Committee may employ professional consultants pursuant to Section
292.09(b) of this Plan.
[Ord. 403. Passed 8-20-2002]
(a) It is the expectation of the Township that it will
continue this Pension Plan indefinitely and will from time to time
contribute to the Fund such amounts as may be required by Act 205
to provide the benefits set forth in the Plan, but continuance of
the Plan is not assumed as an obligation of the Township and the right
is reserved by the Township at any time to reduce, suspend or discontinue
its contributions consistent with applicable law.
(b) The Township assumes no obligation or responsibility
with respect to the operation of the Plan and does not guarantee the
payment of the benefits therein provided for members of the Plan.
The Township shall have no liability with respect to the administration
of the Fund held by the trustees, and payments made under the provisions
of any ordinance establishing, amending, or maintaining the Plan shall
not be a charge on any other fund in the Treasury of the Township
or under its control, save the Uniformed Employee's Pension Fund herein
provided for.
(c) Nothing contained in the Plan shall be held or construed
as a contract or guarantee of employment nor to create any liability
upon the Township to retain any person in its service. The Township
reserves the full right to discontinue the service of any person without
any liability except for salary or wages that may be due and unpaid,
whenever in its judgement its best interests so require, and such
discontinuance shall be without regard to this Plan.
[Ord. 403. Passed 8-20-2002]
(a) The Township may amend, curtail or terminate this
Plan at any time, provided, however, that no amendment affecting the
trustee shall be made without its consent (other than an amendment
having the effect of terminating the Plan), nor shall any amendment
be made which will in any manner divert any part of the Fund to any
purpose other than the exclusive benefit of members or their beneficiaries
(except that upon termination, such diversion may be made after all
of the fixed and contingent liabilities to members and their beneficiaries
have been met), nor shall any amendment be made at any time which
will in any manner divest any benefit then vested in a Member.
(b) In the event of termination of this Plan, the trustee,
upon written instructions from the Board, shall allocate the assets
then remaining in the Fund, to the extent that such assets are sufficient,
to members and retired members in the following order of precedence:
(1)
To members and retired members in an amount
equal to their respective contributions with interest, reduced in
cases of retired members by any prior distribution made.
(2)
To provide benefits due retired members in the
proportion that the pension earned by each member bears to the total
pension carried for all such members.
(3)
The remaining assets, if any, to each of the
remaining members in the proportion that his pension credits earned
to date of termination bears to the total pension credits so earned
for all such remaining members.
[Ord. 403. Passed 8-20-2002]
(a) No benefit under this Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge
or encumbrance, nor to seizure, attachment, or other legal process
for the debts of any member or member's beneficiary. This provision
shall not apply to a qualified domestic relations order defined in
the Internal Revenue Code Section 4l4(p), and those other domestic
relations orders permitted to be so treated by the Board under the
provisions of the Retirement Equity Act of 1984. The Board shall establish
a written procedure to determine the qualified status of domestic
relations orders to administer distributions under such qualified
orders. Further, to the extent provided under a qualified domestic
relations order, a former spouse of a participant shall be treated
as the spouse or surviving spouse for all purposes under this Plan.
(b) Anything heretofore contained in this Plan to the
contrary notwithstanding, it is the intention of the Township that
any action herein provided to be taken by the trustee shall be taken
only in accordance with written instructions of the Board given in
such detail as to preclude the exercise by the trustee of discretion
in performance thereof.
(c) In no circumstances, whether upon amendment or termination
of this Plan or otherwise, shall any part of the Fund be used or diverted
to any purpose other than the exclusive benefit of members or their
beneficiaries until all of the actual obligations to such member or
member's beneficiaries have been met.
(d) If the Board deems any person incapable of receiving
benefits to which he is entitled by reason of minority, illness, infirmity,
or other incapacity, it may direct the trustee to make payment directly
for the benefit of such person, or to any person selected by the Board
to disburse it, whose receipt shall be complete acquittance therefor.
Such payment shall, to the extent therefor, discharge all liability
of the Township, the trustee or the Fund.
(e) Should any provision of this Plan be determined to
be void by any court, the Plan will continue to operate and, to the
extent necessary, will be deemed not to include the provision determined
to be void.
(f) Headings and captions provided herein are for convenience
only and shall not be deemed part of the Plan.
(g) This Plan shall be construed and applied under the
laws of the Commonwealth of Pennsylvania where not in conflict with
federal laws which shall prevail.
(h) All ordinances or resolutions, or portions thereof,
inconsistent herewith are repealed.