A. 
Plan established. A uniformed employees' pension plan and trust (hereinafter referred to as the "plan") is hereby established for the benefit of eligible uniformed employees of the Township.
B. 
Effective date. The plan shall be effective as of January 1, 1973.
C. 
Approval of agreement. The agreement and declaration of trust presently on file in the office of the Township Secretary, together with any amendments thereto agreed upon by the Board of Supervisors, is hereby approved, and the public officers of the Township are authorized and directed to execute said agreement and declaration of trust on behalf of the Township.
D. 
Inspection of agreement. Said agreement and declaration of trust shall remain on file in the office of the Township Secretary and shall be open to inspection during usual business hours by uniformed employees and residents of the Township.
E. 
Payroll deduction authorized. The Township Secretary is hereby authorized to establish a system of payroll deductions necessary for the administration of the plan, if required.
[Amended 11-4-1991 by Ord. No. 208]
F. 
Township contribution. Appropriation is hereby made from the proper fund or funds of the Township in the necessary amount to pay into the contribution fund for the administration of the plan.
G. 
Administration by trustee. The plan shall be administered by a corporate trustee. The trustee shall serve with compensation as per the agreement of trust until his successor is duly appointed. The trustee shall make and adopt rules and regulations for the efficient administration of the plan, subject to the approval of the Board of Supervisors.
H. 
Modifications to plan. The Board of Supervisors reserves the right to amend, modify or wholly discontinue the plan at any time; provided, however, that any such action shall not divest the previously acquired rights of any participant in the plan.
The Township of Doylestown, situate in the County of Bucks, Commonwealth of Pennsylvania, hereby creates a Uniformed Employees' Pension Plan and Fund for the purpose of providing retirement and other benefits for eligible police officers of this Township and their beneficiaries.
As used in this article, the following terms shall have the meanings indicated:
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any January 1 after the effective date.
AVERAGE APPLICABLE COMPENSATION
The average monthly earnings of the member 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 prior to such date of reference). For purposes of computing average applicable compensation, actual monthly salary shall include base pay, longevity pay, night differential pay (if any), overtime pay, and other direct current compensation, but shall exclude reimbursed expenses or payments in lieu of expenses, nonsalary compensation (including fringe benefits), and by the Township of any accrued sick days. Actual monthly salary shall include member contributions to this plan which are treated as employer "pickup" contributions under Internal Revenue Code § 414(h)(2).
[Amended 12-15-1987 by Ord. No. 168; 4-20-1993 by Ord. No. 222; 10-7-2003 by Ord. No. 313; 3-20-2012 by Ord. No. 365]
COMMITTEE
The Administrative Committee appointed as provided in § 28-11 of this article.
COMPENSATION
Compensation shall be based on earnings which include base pay, longevity pay, night differential pay (if any), overtime pay, and other direct current compensation, but shall exclude reimbursed expenses or payments in lieu of expenses, nonsalary compensation (including fringe benefits), and by the Township of any accrued sick days. Compensation shall include member contributions to this plan which are treated as employer "pickup" contributions under Internal Revenue Code § 414(h)(2).
[Added 10-7-2003 by Ord. No. 313; amended 3-20-2012 by Ord. No. 365]
EFFECTIVE DATE
January 1, 1973.
EMPLOYEE
Any person in the full-time employ of the Township who is a sworn police officer whose customary employment by the Township is for not less than 40 hours per week and for not fewer than 12 months per year.
[Amended 10-7-2003 by Ord. No. 313]
FUND
All assets held by the trustee under the trust agreement.
MEMBER
Any employee who has satisfied the eligibility requirements established in § 28-4 hereof and who is, at the time of reference, making such contributions as may be required pursuant to § 28-5A hereof.
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following the date on which the member completes 25 years of service or the date on which the member attains the age of 55, or whichever is the later to occur. "Normal retirement date" shall also mean the first day of the month coincident with or next following the date on which the member completes 25 years of service and attains the age of 50.
[Amended 7-1-1986 by Ord. No. 150]
PLAN
The Uniformed Employees' Pension Plan of the Township, as herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending on the following December 31. The first plan year is the period from January 1, 1973, through December 31, 1973.
SERVICE
The aggregate of a member's total periods of employment as a uniformed employee of the Township. Service, for the purposes of this plan, shall include all time spent by an employee in the Armed Forces of the United States after becoming an employee if such person returned to or hereafter returns to the employment of the Township as an employee within six months after his discharge from active duty in the Armed Forces of the United States.
TOTAL DISABILITY
Any condition arising from service connected injury which, by competent medical evidence, disqualifies the member from serving as a uniformed police officer for Doylestown Township.
[Amended 8-1-1989 by Ord. No. 189]
TOWNSHIP
The Township of Doylestown, Bucks County, Commonwealth of Pennsylvania.
TRUST AGREEMENT
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.
TRUSTEE
Any corporate fiduciary appointed by the Board of Supervisors of the Township to serve in that capacity under the trust agreement.
A. 
All police officers who are employees of the Township as of the effective date and who make such contributions as are required pursuant to § 28-5A hereof shall be members as of the effective date.
B. 
Any person employed as a police officer who becomes an employee after the effective date hereof shall become a member on the first day of the month coincident with or next following the date upon which he becomes an employee by completing such forms and providing such data as are required by the Committee for application for membership and by agreeing to make the contributions required by § 28-5A hereof in such manner as is prescribed by the Committee.
C. 
Military buyback. A member, at his/her option, may purchase credit for military service subject to all of the following conditions:
[Added 4-20-1993 by Ord. No. 222]
(1) 
The total credit which may be purchased shall not exceed five years.
(2) 
The military service must have been performed by the member prior to any employment by the member with the Township of Doylestown.
(3) 
The military service must be for full-time active duty service and the purchase option shall not be available to members serving in the National Guard or Reserve Forces on a part-time basis even if such service included active duty service.
(4) 
The amount due for the purchase of credit for military service shall be computed by applying the average normal cost rate for the Township Police Pension Plan as certified by the Public Employee Retirement Study 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 4.75% compounded annually from the date of employment as a full-time employee of the Township (or initial entry into the plan) to the date of payment.
[Amended 8-1-2000 by Ord. No. 289]
(5) 
The member may not exercise the option to purchase military service credit if the member is entitled to receive, eligible to receive or in the future is or may receive retirement benefits for such service under a retirement system administered or 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 the Reserve or National Guard component of the Armed Services which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Chapter 67.
A. 
Contributions by members.
[Amended 12-15-1987 by Ord. No. 168; 10-7-2003 by Ord. No. 313; 3-20-2012 by Ord. No. 365]
(1) 
In general. A member shall pay into the fund at a rate of 5.0% of compensation via payroll deduction. Compensation for this purpose shall be defined in § 28-3 of the plan. The Township may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members. Individual records of contributions by members shall be maintained, including all interest credited to his/her individual account. Interest to be credited shall be 4.0% compounded annually. Interest shall be credited from the end of the plan year dated to the last day of the month after which a refund becomes payable.
(2) 
Uniformed service.
(a) 
In general. No member shall be required to make any contributions to the plan during any period of service in the uniformed services of the United States. If such a member returns to employment with the Township, he/she shall contribute to the plan an amount equal to the rate in effect under Subsection A(1) above for the period of uniformed service multiplied by the compensation the member would have received for such period but for the uniformed service (or, if that amount is not reasonably certain, on the basis of the member's average rate of compensation during the twelve-month period immediately preceding the uniformed service, or if shorter, the period of employment immediately preceding the uniformed service). Where more than one rate is in effect during the period of uniformed service, a calculation shall be performed for each portion of the period of uniformed service governed by a separate rate, and the total required contribution shall be equal to the sum of such calculations. The participant may make an irrevocable election to make the contribution by a series of payroll deductions.
(b) 
Time of contributions. The contribution required under Subsection A(2)(a) shall be made during the period beginning with the date of reemployment and whose duration is the lesser of:
[1] 
Three times the period of the member's service in the uniformed services; or
[2] 
Five years.
(3) 
Treatment of member contributions as employer pickup contributions. Effective for service on or after January 1, 2012, member contributions which are to be made under this § 28-5A via payroll deduction, although designed as member contributions, shall be "picked up" and paid to the plan and trust by the Township on behalf of the member in lieu of contributions by the member in order to be treated as employer contributions under Internal Revenue Code § 414(h)(2). The amount of such contributions shall be deducted from the member's paycheck as a reduction in the member's salary/wages. The member shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the Township to the plan. This Subsection A(3) shall be construed to include all requirements necessary to satisfy the provisions of Internal Revenue Code § 414(h)(2). (Under current law, such contributions are not subject to federal income tax at the time of contribution, but only at the time when plan benefits are paid. However, these amounts are considered wages subject to current FICA taxation and also current income for Pennsylvania state and local income taxes.)
(4) 
Voluntary contributions. No voluntary member contributions beyond those required by this § 29-5A may be made to the plan by any member.
B. 
Township contributions. Subject to the provisions of and limitations set forth in §§ 28-12 and 28-13 hereof, the Township shall contribute the remaining amounts certified necessary by the funds' actuary to provide the benefits contemplated by this plan.
C. 
Other contributions. Payments made by the State Treasurer from the moneys 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 cost or, to the extent that the payment may be in excess of such obligation, to reduce member contributions pursuant to Subsection A hereof. Funds derived from sources other than as provided in Subsections A and B or as stated in this Subsection C shall be applied in the same manner as the investment yield of the trust fund, including, if appropriate as determined by the Board of Supervisors, application to the reduction of Township and member contributions hereunder.
[Amended 12-15-1987 by Ord. No. 168]
A. 
Normal retirement. Each member may retire or be retired on or at any time after his normal retirement date. Any member so retiring shall be entitled to receive a monthly pension commencing as of the first day of the month coincident with or next following his date of actual retirement ending with the payment made as of the first day of the month in which his death occurs. The monthly pension to which said retired member shall be entitled in this plan shall be equal to 50% of such member's average applicable compensation.
B. 
Postponed retirement.
[Amended 10-7-2003 by Ord. No. 313]
(1) 
An employee shall be allowed to continue as an employee beyond his/her normal retirement date. In such case, the employee shall remain a member of the plan until he/she actually retires or ceases to be an employee. Any contributions required pursuant to § 28-5 hereof shall continue.
(2) 
As an incentive for an employee to continue employment beyond his/her normal retirement date, the benefit to be conferred upon a retiring member shall be increased so that for every complete year of service beyond 25 years of service that an employee serves as a police officer, he/she shall receive an additional $20 per month up to a maximum of $100 per month, which would be five additional complete years of service beyond 25 years.
(3) 
Beginning January 1, 2004, the above incentive shall be replaced so that each member who has completed 26 years of service shall receive an additional monthly pension benefit equal to a maximum of $100 per month.
(4) 
Beginning January 1, 2007, the above incentive shall be replaced so that each member shall receive an additional monthly pension benefit equal to $100 per month for each year of complete service in excess of 25 years of complete service to a maximum of an additional $500 per month in additional pension benefits.
[Added 12-5-2006 by Ord. No. 335]
C. 
Disability retirement.
[Amended 8-1-1989 by Ord. No. 189]
(1) 
If a member retires because of a total disability, he/she shall be entitled to receive a pension benefit equal to 50% of his/her salary at the time the disability was incurred, offset by any social security disability benefits received by the member for the same injury or illness. Salary shall mean base wage. The benefit shall commence six months after the date of the onset of such total disability and continue thereafter during the remainder of such period of total disability. The Township reserves the right to require a disabled member to present evidence of total disability and of the continuance of such condition from time to time and also reserves the right to require members to submit to medical examinations by practitioner(s) selected by the Township as a precondition to the continued payment of benefits.
[Amended 10-7-2003 by Ord. No. 313]
(2) 
The Committee 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 medical examinations, from time to time, by one or more licensed medical practitioners selected by the Committee as a precondition to the receipt of benefits or to the continued payment of benefits.
D. 
Post retirement cost-of-living adjustments. Each member of the police force receiving retirement benefits shall receive a cost-of-living increase on an annual basis, but such annual increase shall not exceed the percentage increase in the Urban Wage Earnings and Clerical Workers Consumers CPI for the Philadelphia area from the year in which the police member last worked; and provided further, that in no case shall the total police pension benefits paid exceed 75% of the salary for computing benefits; and further providing, that the total cost-of-living increase shall not exceed 3% percent in any one year and the aggregate increase in the cost of living during the entire time police pension benefits are paid shall not exceed 30% percent. All adjustments shall be made in January and calculated on the twelve-month-percentage change in the consumer price index as of the previous October.
[Added 4-20-1993 by Ord. No. 222; amended 2-15-2000 by Ord. No. 285; 10-7-2003 by Ord. No. 313]
[Amended 10-7-2003 by Ord. No. 313]
A. 
Spouse's and children's benefits. In the event of the death of a member, whether prior to or after retirement hereunder, the following benefits shall be payable:
(1) 
Spouse's benefit. There shall be paid to the member's surviving spouse, commencing as of the first day of the month next following the date on which the member's death occurs and ceasing upon the death of the spouse, a monthly pension benefit equal to 50% of the monthly benefit that was then being paid to the member or that would have been payable to the member had he qualified for benefits pursuant to § 28-6A of this article as of the date on which his death occurred.
(2) 
Dependent children's benefit.
(a) 
If there is no surviving spouse then there shall be paid to the guardian of each surviving dependent child (including stepchildren and adopted persons), commencing as of the first day of the month next following the date on which the member's death occurs and ceasing as of the first day of the month in which such dependent child dies or attains age 18, or, attains the age of 23, provided the child or children are attending college and taking a minimum of seven credit hours per semester, a monthly benefit equal to 50% of the monthly benefit that was then being paid to the member to be divided equally among the dependent children as defined herein or that would have been payable to the member had he qualified for benefits pursuant to § 28-6A of this article as of the date on which his death occurred; if there are more than five dependent children surviving the member, the aggregate benefit shall be divided equally among them; and in any case where there are more than five surviving dependent children entitled to benefits hereunder, as each child ceases to be eligible for such benefits, the monthly benefit formerly paid to his guardian for his benefit shall be divided among the remaining surviving dependent children then eligible for such benefits so that the monthly benefit of each is increased equally, provided that:
[1] 
No such increased benefit may exceed the monthly benefit that would have been payable hereunder had there been fewer than five such dependent children at the time of the member's death; and
[2] 
The aggregate monthly dependent children's benefit shall not exceed 50% of the monthly benefit that was then being paid to the member or that would have been payable to the member had he qualified for benefits pursuant to § 28-6A of this article as of the date of his death.
B. 
The surviving spouse of a member of the Police Department who dies before his/her pension has vested or, if no spouse survives or if he/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 the value of the member's investment in the pension fund, unless the member has designated another beneficiary for this purpose.[1]
[Added 9-16-2008 by Ord. No. 342]
[1]
Editor's Note: Former § 28-7.1, Killed in Service Benefit, added 10-7-2003 by Ord. No. 313 and which immediately followed this section, was repealed 1-19-2010 by Ord. No. 351.
[Amended 10-7-2003 by Ord. No. 313]
A. 
A member shall be vested after the completion of 12 years of credited service.
B. 
If a member leaves the employ of the Township or ceases to be a member whether by reason of his/her transfer, resignation or discharge, or by reason of disability or retirement other than after becoming eligible for benefits pursuant to § 28-6 or § 28-7 of this plan, he/she shall be entitled to a refund of all contributions made by him/her and then on deposit in the fund, plus interest thereon, computed at the rate described in § 28-5. However, a member who has completed 12 or more years of service may elect either of the options in Subsection B(1) or (2) as described below:
(1) 
He/she may elect to leave his/her contributions, plus interest, in the fund so as to receive a vested pension benefit to start at his/her normal retirement date. He/she must file with the Secretary of the Township within 90 days of the date he/she ceases to be a full-time police officer a written notice of his/her 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 the date of termination and (y) is the number of years of service which the member would have had if he/she worked until normal retirement date, multiplied by the benefits described in § 28-6A. Years of service shall be measured in years and completed months.
(2) 
He/she may elect to receive a refund of all contributions made by him/her and then on deposit in the trust fund, plus interest thereon, computed at the rate described in § 28-5. If he/she elects to receive the refund of his/her contributions plus interest, he/she would forfeit the pension benefit outlined in Subsection B(1).
A. 
Refund benefits becoming distributable pursuant to § 28-8 and death benefits becoming distributable pursuant to the provisions of § 28-7B 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 § 28-7B in the of those whose aggregate pension payments are less than the sum of their member contributions and interest standing to their credit at the time their pension benefit payments commenced.
[Amended 10-7-2003 by Ord. No. 313]
A. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 28-6, 28-7 and 28-8, in accordance with the instructions received from the Township; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose. 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 person or entities shall be compensated by the plan at such rates as may be agreed upon by the Board of Supervisors of the Township.
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 Township 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 with respect to each plan year in accordance with the assumptions most recently adopted by the Township 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.
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 needed 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 hereunder.
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 trustee, 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 Employees' Pension Fund herein provided for.
C. 
Nothing contained in the plan shall be held or construed as a contract or guaranty of employment nor to create any liability upon the Township to retain any person in its service.
D. 
The Township reserves its full right to discontinue the services of any person without any liability except for salary or wages that may be due and unpaid whenever, in its judgment, its best interests so require, and such discontinuance shall be without regard to this plan.
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 Committee, 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, reduced in the cases of retired members by any prior distributions made to them.
(2) 
To provide benefits due retired members in the proportion that the pension earned of each such member bears to the total pensions earned 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 the date of termination bears to the total pension credits so earned for all such remaining members.
C. 
After allocation of the funds, the Committee shall determine whether to operate the fund as the source of whatever payments the money so allocated will provide or to purchase immediate or deferred annuities from an insurance company in whatever amounts the money so allocated will provide.
D. 
If the plan is discontinued within 10 years of the amendment effective date or if during that period payments to date do not equal the incremental cost of increased future service benefits provided hereunder, plus interest on any past service cost incurred by reason of the benefit increases effective as of the amendment effective date, no member or former member whose presumptive pension as of the amendment effective date after normal retirement exceeds $1,500 annually and who on the amendment effective date was one of the 25 highest paid employees of the Township shall receive any pension or other payment greater than would be provided by the provisions of this plan prior to the amendment effective date, plus the larger of $20,000 or 20% of his average compensation after the amendment effective date [or $10,000 if that be less] multiplied by the number of years elapsed thereafter. If the amount allocable to any person under Subsection B is more than is permitted by this Subsection D, the excess shall be allocated as provided in Subsection B to persons not limited by this Subsection D. If there are no persons not limited by this Subsection D or if all accrued benefits for persons not so limited have been fully funded and secured by the purchase of one or more annuity contracts covering all such persons, the excess then may be applied to the funding of benefits for persons subject to the limitations hereof.
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.
B. 
Any person dealing with the trustee may rely upon a copy of this plan and any amendments thereto certified to be a true and correct copy by the trustee.
C. 
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 Committee given in such detail as to preclude the exercise by the trustee of discretion in the performance thereof.
D. 
In no circumstance, whether upon amendment or termination of this plan or otherwise, shall any part of the fund be used for or diverted to any purpose other than the exclusive benefit of members or their beneficiaries until all of the actuarial obligations to such members or members' beneficiaries have been met.
E. 
If the Committee 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 Committee to disburse it, whose receipt shall be a complete acquittance therefor. Such payment shall, to the extent therefor, discharge all liability of the Township, the Committee, the trustee and the fund.
F. 
In the case of all provisions utilized herein, the singular shall include the plural and the masculine shall include the feminine.
G. 
Should any provisions 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.
H. 
Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.
I. 
This plan shall be construed and applied under the laws of the Commonwealth of Pennsylvania where not in conflict with federal laws which shall otherwise prevail.
[Added 12-5-2006 by Ord. No. 334]
A. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
DROP
Deferred Retirement Option Plan.
DROP ACCOUNT
A separate account created to accept a DROP participant's monthly pension check while a DROP participant.
B. 
Eligibility. Effective on January 1, 2007, members of the Police Department who have not retired prior to the implementation of the DROP program, may enter into the DROP on the first day of any month following completion of 25 years of credited service and attaining the age of 50.
C. 
Written election. A member of the Police Department 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 a notice to the Township, by the member, that the member shall resign from employment with the Township Police Department effective on a specific date (the "resignation date"). In no event shall the resignation date be more than 48 months from the execution of the DROP option form. The officer shall cease to work as a Township police officer on the officer's resignation date, unless the Township terminates or honorably discharges the officer prior to the resignation date, in which case the member is not required to provide six months' notice. A member may elect, in writing, to terminate participation in the DROP program any time up to six months before the previously selected resignation date. Once a member terminates participation in the program, then the member is barred from any future participation in the program. In addition, all retirement documents required by the Police Pension Administrator must be filed and presented to the Township for approval of retirement and payment of pension benefits.
[Amended 9-16-2008 by Ord. No. 342]
D. 
Limitation on pension accrual. After the effective date of the DROP option, the member shall no longer earn or accrue additional years of continuous service for pension purposes.
E. 
Benefit calculation. For all retirement fund 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 Doylestown Township Police Pension Fund. The average applicable compensation 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 pension fund. The pension benefit payable to the member shall remain unchanged even if the pension plan improvements occur after the election of the DROP option but prior to the officer's separation from service.
F. 
Payments to the DROP 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 paid into the separate account established to receive the participant's monthly pension payments. This account shall be designated the "DROP account."
G. 
Accrual of nonpension benefits. After an 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.
H. 
Payout. Upon the termination date set forth in the member's DROP option notice or such date as the Township separates the member from employment, the retirement benefits payable to the member, or the member's beneficiary, if applicable, shall be paid to the member or beneficiary and shall no longer be paid to the member's deferred retirement option account. Within 30 days following termination of a member's employment pursuant to his/her participating in the DROP program, the balance in the members' DROP account shall be paid to the member in a single lump-sum payment or, at the member's option, in any fashion permitted by law.
I. 
Disability during DROP. If a member becomes incapacitated during his participation in the DROP, that member shall continue to participate in the DROP program as if fully employed. However, notwithstanding any other provision in this paragraph, if an officer is disabled and has not returned to work as of the date of his required resignation, then such resignation shall take precedence over all other provisions herein and said officer shall be required to resign. Nothing contained in this plan shall be construed as conferring any legal rights upon any police employee or other person to a continuation of employment, nor shall participation in the DROP program supersede, or limit in any way, the right of the Township to honorably discharge a police employee based upon an inability to perform his or her full duties as a police officer. If such an officer is terminated while participating in the DROP program, he shall, upon termination, receive the DROP payments that had accrued to the date of his honorable discharge.
J. 
Death. If a DROP member dies before the DROP account balances are paid, the participant member's legal beneficiary shall have the same rights as the member to withdraw the account balance as of the date of death.
K. 
Forfeiture of benefits. Notwithstanding an officer's participation in the DROP, an officer who is convicted of, 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 fund, without interest.
L. 
Account manager. The Township and the Police Benevolent Association will mutually agree upon an investment manager to administer the DROP accounts. The Township and the Association further agree that the Township shall not be responsible for any investment losses incurred in the plan or for the failure of an investment to earn a specific or expected return or to earn as much as any other opportunity, whether or not such other investment opportunity was offered or available to participants in the plan.
M. 
Cost of management for DROP program. The 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.
N. 
Amendment. Any amendments to the DROP Ordinance shall be consistent with the provisions covering deferred retirement option plans set forth in the 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 may only be amended by a written instrument.
O. 
Construal of provisions. 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.