[HISTORY: Adopted by the Borough Council of the Borough of
Masontown as indicated in article histories. Amendments noted where
applicable.]
[Adopted 2-10-1981 by Ord. No. 1981-1, approved 2-13-1981]
Pursuant to the provisions of Act 600 and any amendments thereto,[1] the Borough of Masontown hereby establishes an insured
Police Pension Fund to be funded through the purchase of individual
death benefit contracts and a deposit administration group annuity
contract through J.J. Markotan and Company of Pittsburgh, Pennsylvania.
[1]
Editor's Note: See 53 P.S. § 767.
[Added 10-13-1992 by Ord. No. 1992-4, approved 10-13-1992]
As used in this article, the following terms shall have the
meanings indicated:
Whenever used in this article or any of the amendments thereto,
those persons who were hired as permanent, full-time members of the
police force.
Whenever used in this article or any of the amendments thereto,
all W-2 compensation, excluding certain unusual lump sum payments,
including but not limited to unused sick day compensation, unused
personal day compensation and unused vacation compensation.
[Added 8-24-1993, approved 8-24-1993]
The fund is to be maintained by a charge against each member
of the police force, by annual appropriations made by the Borough
of Masontown, by payments made by the State Treasurer to the Borough
of Masontown Treasurer from the moneys received from taxes paid on
premiums by foreign casualty insurance companies for purposes of pensions
for policemen and by gifts, grants, devises or bequests granted to
such pension fund pursuant to the provisions of such act.
Such Police Pension Fund shall be under the direction of the
Borough of Masontown Council and shall be applied under such regulations
as the members of Council of the Borough of Masontown may, by ordinance
or resolution, prescribe for the benefit of such members of the Borough
of Masontown police force as shall receive honorable discharge therefrom
by reason of age and service, or disability, and for the families
of such as may be killed in the service. If any disability payments
are allowed to those who are disabled, they shall be in conformity
with the uniform scale and shall be integrated to make up the total
payments needed for any borough liabilities which may exist under
any previous act or acts of the Legislature of this commonwealth pertaining
to such disability.
The Borough of Masontown is hereby authorized to take by gift,
grant, devise or bequest any money or property, real, personal or
mixed, in trust for the benefit of such fund, and the care, management,
investment and disposal of such trust funds or property shall be vested
in the Borough of Masontown Council, the person, agent and the company
having the management of such Police Pension Fund, and the said trust
funds shall be governed thereby subject to such directions not inconsistent
therewith as the donors of such funds and property may prescribe.
A.
The Borough of Masontown hereby prescribes that the normal retirement
age for members of the Police Pension Fund shall be as follows:
(1)
For those members employed prior to January 1, 1966, one of the following
options:
(a)
Twenty years of service and age 60, whichever is later.
(b)
Twenty-five years of service and age 55, whichever is later.
(c)
Twenty-five years of service and age 50, whichever is later;
however, such retirement can be allowed only if an actuarial study
shows that such reduction in age is feasible and does not impair the
actuarial soundness of the fund.
(2)
For those members employed after January 1, 1966, one of the following
options:
(a)
Twenty-five years of service and age 55, whichever is later.
(b)
Twenty-five years of service and age 50, whichever is later;
however, such retirement can be allowed only if an actuarial study
shows that such reduction in age is feasible and does not impair the
actuarial soundness of the fund.
(c)
Early retirement benefit. The Borough of Masontown hereby provides
for an early retirement benefit in its Police Pension Plan. The early
retirement benefits shall be provided to a member of the police force
of the Borough of Masontown 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 Borough Secretary of the Borough
of Masontown. The early retirement benefit shall become effective
as of the date the application is filed with the Borough Secretary
of the Borough of Masontown, or the date designated on the application,
whichever is later, and shall be the actuarial equivalent of a partial
superannuation retirement benefit calculated as follows:
[Added 7-25-2000, approved 7-25-2000]
[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/her superannuation retirement
date to the gross pension amount calculated using the monthly average
during the appropriate period prior to his/her termination of employment.
[2]
The actuarial equivalent of the partial superannuation retirement
benefits 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 Action of December 18, 1984
(P.L. 1005, No. 205) known as the "Municipal Pension Plan Funding
Standard and Recovery Act."
[3]
A member of the plan may elect the early retirement benefit as above, but may defer actual receipt of benefits until the member would have completed normal superannuation age and service requirements. The actuarial reduction referred to in Subsection A(2)(c)[2] supra shall not apply to any member of the plan so electing and deferring actual receipt of benefits.
[4]
The entire provisions of Sections 1 and 2 of Act 24 of 1998
are hereby incorporated by reference thereto, as though fully set
forth at length herein.
B.
Further, such members as are retired shall be subject to service
from time to time as a police reserve in case of riot, tumult or preservation
of the public peace until unfit for such service when they may be
finally discharged by reason of age or disability.
C.
Any member who reaches his eligible retirement age may defer his
pension and continue to work, with the consent of the Borough Council.
Any member of the police force employed by the Borough of Masontown
who has been a regular appointed employee of the Borough of Masontown
for a period of at least six months and who thereafter shall enter
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.
A.
Payments made under the provisions of this article shall not be a
charge on any other fund in the treasury of the Borough of Masontown
or under its control, save the Police Pension Fund herein provided
for.
B.
The basis for determining any pension payable under this article
following the retirement of any member of the force meeting the service
and age qualifications of this article shall be as follows:
(1)
Normal monthly pension benefits, other than length of service increments,
shall be 1/2 of the average monthly salary of such member during the
last 36 months of wages or 60 months of wages, whichever benefit is
higher.
[Amended 7-25-2000, approved 7-25-2000]
(2)
Length of service increments will be payable at the rate of $20 per
month for each year of service completed in excess of 25 years; however,
such amount shall not exceed $100 per month nor shall the member receive
in excess of 75% of the monthly average of his last 60 months'
salary.
C.
Cost of living allowance. The Borough of Masontown hereby establishes
a cost of living allowance provision for members of the police force
receiving retirement benefits; provided, however, that such cost of
living allowance shall not exceed the percentage increase in the consumer
price index from the year in which the police member last worked;
provided, further, that in no case shall the total police pension
benefits exceed 75% of the salary for computing retirement benefits;
and provided further that the total cost of living increases shall
not exceed 30%. No cost of living increase shall be granted which
would impair the actuarial soundness of the pension fund.
[Added 7-25-2000, approved 7-25-2000]
The Borough of Masontown hereby prescribes that for any member
who is married, has retired and is receiving a normal monthly pension,
or any member who is married and is eligible to retire but has not
retired, and then dies, such member's widow shall be entitled
to receive 50% of the monthly pension benefits such member was receiving
or was entitled to receive, payable for her lifetime or until she
remarries. Should such widow die prior to remarrying, then such benefits
shall be paid in equal shares to all children born of the deceased
aforementioned police officer father who are then under 18 years of
age. Payment of such benefit in this case would continue until the
youngest child reaches the age of 18. Other options will be made available
to the member at the time of his retirement.
[Added 10-13-1992 by Ord. No. 1992-4, approved 10-13-1992]
A.
Any full-time member of the police force of the Borough of Masontown
who is injured in the line of duty while in the employ of the Borough
of Masontown and is subsequently determined to be permanently disabled
by a majority of the Borough Council shall be entitled to a monthly
disability benefit commencing on the first day of the calendar month
coincident with or following the date on which the determination of
disability is made by the Council.
B.
The monthly disability benefit shall be the actuarial equivalent
of 50% of the employee's average monthly salary during the prior
60 months of employment. The amount of benefit paid shall not exceed
50% nor shall it be less than 25% of the average monthly salary based
on the prior 60 months. The amount of the benefits paid by the borough
shall be integrated with and offset by income from all other sources,
including:
[Amended 8-24-1993, approved 8-24-1993[1]]
(1)
Any sick pay or other salary continuation payable by the borough,
but not including vacation pay.
(2)
Any amount received or eligible to be received as a result of disability
under workers' compensation, federal social security or similar
law and state unemployment compensation or disability benefit and
any group or individual disability insurance coverage provided by
the borough.
[1]
Editor's Note: This ordinance also provided that the
averaging period change provided herein is effective 12-1-1988.
C.
If any income benefits are received in a lump sum, the lump sum will
be applied in equal monthly offsets calculated on the basis of the
recipient's life expectancy.
D.
The monthly disability benefit shall be payable until the recipient
is eligible to receive federal social security based on age.
E.
A full-time member of the police force is deemed to be disabled under
this section if as a result of a service-related bodily injury the
person is totally unable to perform the duties of a police officer.
The determination of permanent disability shall be made by the Borough
Council based in part upon the results of medical examinations which
may be conducted by one or more physicians or vocational specialists
as designated by the borough. Determination by the Social Security
Administration that such member of the police force is entitled to
disability benefits under the Federal Social Security Act may also
be considered by the Council as evidence of permanent disability.
F.
The disability benefit provided for herein is effective December
1, 1988.
Should a member cease to be employed as a police officer by
the Borough of Masontown, for reasons other than death, after completing
12 years of service but before completing his superannuation retirement
age and service requirements, then he shall be entitled to vest his
retirement benefits by filing with the members of Council, within
90 days of the date his employment is terminated, a written notice
of his intention to vest. Upon reaching the date which would have
been his superannuation retirement date if he had continued to be
employed as a full-time police officer, he shall be paid a partial
superannuation retirement allowance determined by applying the percentage
his years of service bears to the years of service which he would
have rendered had he continued to work until his superannuation retirement
date to the gross pension, using, however, the monthly average salary
during the appropriate period prior to his termination of employment.
Such pension or retirement benefit for any month shall be the sum
of all benefits established within this plan and to the extent necessary
to bring the total benefits in any month up to his partial superannuation
retirement allowance outlined above. The above vesting provision shall
remain in effect continuously and up to the time that this provision
does not impair the actuarial soundness of the Police Pension Fund.
The actuary to be employed by the Borough of Masontown with
respect to the Police Pension Fund hereby established shall be provided
by the insuring company to determine the present value of the liability
on account of pensions payable under the provisions of this article
to original members for service prior to the date of the establishment
of this fund and shall offset the value of any assets transferred
to this fund from the previous fund established by the Borough of
Masontown to determine the unfunded liability. The unfunded liability
shall be paid entirely by the Borough of Masontown, provided that
it may be funded over a period not to exceed 25 years. The actuary
shall also determine the amount which shall be contributed annually
into the fund for the service of members subsequent to the establishment
of the fund (to be known as "future service cost").
[Amended 8-12-1997, approved 8-12-1997]
Members shall pay into the fund, monthly, an amount equal to
not less than 5% of their monthly compensation. If an actuarial study
shows that the condition of the Police Pension Fund of the Borough
of Masontown is such that payments into the fund by members may be
reduced below the minimum percentages hereinbefore prescribed, or
eliminated, and if such payments are reduced or eliminated and the
borough will not be required to make any contributions into the fund
to keep it actuarially sound, then the members of Council may, on
an annual basis, by ordinance or resolution, reduce or eliminate payments
into the fund by members.
[Amended 8-12-1997, approved 8-12-1997]
Any member of the police force of the Borough of Masontown who,
for any reason whatsoever, shall be ineligible to receive a pension
after having contributed any charges to a Police Pension Fund established
pursuant to the provisions of this article shall be entitled to a
refund of all such moneys paid by him into such fund, plus the interest
of 3% earned on same, immediately upon discontinuance of his employment
with the police force.
The Borough of Masontown hereby prescribes that should a member
die prior to retirement, the member's beneficiary or his estate
shall receive that amount as provided for in his individual death
benefit contract. In addition, a refund of the member's contributions,
plus the interest earned on same, will be paid to the member's
beneficiary or his estate from the deposit administration group annuity
contract.
The existing assets and liabilities of the present contracts
and/or trust funds of the Borough of Masontown Police Pension Fund
shall be transferred and assigned to and integrated into the fund
established by this article. The Borough Secretary is hereby authorized
to execute documents and to do all things necessary to effectuate
said transfer of assets and the integration of the same into the fund
established by this article.
A.
No person participating in a Police Pension Fund established pursuant
to the provisions of this article who becomes entitled to receive
a benefit therefrom shall be deprived of his right to an equal proportionate
share therein upon the basis upon which he first became entitled thereto.
B.
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 member or his designated beneficiary
and shall not be subject to assignment or transfer.
The Borough of Masontown members of Council hereby authorize
and direct the Borough Secretary to make the recommended annual deposits
into the deposit administration group annuity contract and premium
payments on the beforementioned death benefit contracts, when due.
The procedure hereinbefore set forth expressing the intent to
purchase individual death benefit contracts and a deposit administration
group annuity contract or make applications therefor on the lives
of the same or other policemen of the Borough, from time to time and
from year to year, may be carried into effect with the necessary and
desired factual changes without the necessity to pass any new resolution
or ordinance authorizing such purchase.
The Police Pension Fund provided for herein is hereby established
and made effective immediately.
The proper officers of the Borough of Masontown are hereby authorized
and empowered to execute and deliver on behalf of the Borough of Masontown
such documents as the Solicitor of the Borough shall determine to
be necessary and proper to effectuate and implement the Police Pension
Fund hereby established under the provisions of Act 600[1] and any amendments thereto.
[1]
Editor's Note: See 53 P.S. § 767.
[Copies of the current Police Pension Plan are on file in
the Borough offices and are available for inspection during regular
office hours.]
