The Township of Doylestown, situate in the County
of Bucks, Commonwealth of Pennsylvania, hereby creates an Employees'
Pension Plan and Fund for the purpose of providing retirement and
other benefits for eligible employees 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.
COMMITTEE
The Administrative Committee appointed as provided in §
28-25 of this article.
CREDITED SERVICE
With respect to each employee who became or who becomes a member thereof when first eligible to be a member and who thereafter remains a member continuously until such date as he becomes eligible to receive benefit payments hereunder, such employee's current period of continuous service as an employee, computed in years and months, with each completed calendar month counted as 1/12 of a year. With respect to all other employees becoming members hereof, "credited service" shall mean all of the period of the employee's current continuous service as an employee, computed in years and months as aforesaid, during which said employee was a member and made contributions pursuant to the provisions of §
28-19A hereof and with respect to which said contributions remain on deposit in the fund at the time of the employee's cessation of employment by the Township.
A.
The following shall not be deemed to interrupt
the continuity of service, credited service or membership for any
of the purposes of this plan, notwithstanding the fact that no credited
service will be granted for such periods and that no member contributions
will be accepted with respect to such period:
(1)
Any period of absence during which said employee
receives his regular compensation.
(2)
Absence on leave granted by the Township for
any cause for the period stated in such leave or if no period is stated,
then for six months and any extensions the Township may grant, in
writing. For the purposes of this Subsection A(2), the Township shall
give equal treatment to all employees who are in similar circumstances.
(3)
Absence in the Armed Forces or government service
in a time of war or emergency, as defined by the Township, provided
that he returns to service with the Township within six months after
his discharge or release to inactive duty (whichever shall occur first)
or if he does not return to such service within said six-month period
because of a disability incurred while in the Armed Forces of the
United States, if he returns to service with the Township upon termination
of such disability, provided that within said six-month period he
indicates his intention of returning to such service and furnishes
satisfactory proof to the Committee that his disability prevents him
from returning within said period, and provided that he continues
to furnish such proof at such times as may be requested by the Committee
until he returns.
(4)
Continued employment by the Township other than
as an employee, provided that, for the purposes hereof, service rendered
as an independent contractor or as an employee of another employer
shall not be deemed to be "continued employment by the Township."
(5)
An employee shall receive credit for vesting
purposes for any period of employment with the Township as a uniformed
police officer as if that period of service had been as a member and
participant in the nonuniformed pension plan. This provision, however,
shall not apply if the employee shall have vested pursuant to the
uniformed police pension plan then in place in the Township prior
to his participation in the nonuniformed pension plan.
[Added 7-16-1996 by Ord. No. 251]
B.
Any employee whose credited service is interrupted under circumstances other than those specified above shall forfeit all credited service prior to the date of his termination and if subsequently rehired shall requalify for membership as though he had never been an employee; provided, however, that this provision shall not be construed to deprive any member of any vested interest he may have in connection with such period of prior employment pursuant to the provisions of §
28-22. Any member who ceases to make contributions pursuant to the provisions of §
28-19A while being eligible to make such contributions shall be treated, for purposes of the plan, as though his employment by the Township was terminated on the date he ceased making contributions. If such employee thereafter again becomes a member, he shall be treated, for all purposes of the plan, as a new employee, except that his credited service thereafter shall be limited to the period during which such employee makes contributions as a member hereof.
EMPLOYEE
Any person in the full-time employ of the Township whose
customary employment by the Township is for not less than 35 hours
per week. Such employment shall be permanent; any person hired on
a temporary or seasonal basis shall not be eligible to participate
in this plan.
[Amended 10-7-2003 by Ord. No. 314]
FINAL AVERAGE EARNINGS
The average actual monthly earnings of the employee shall
be the average of the employee's three highest years of gross annual
salary as reported on the employee's W-2 form, including amounts not
then includible in federal W-2 wages by reason of the application
of Internal Revenue Code § 414(h)(2) (relating to employee
contributions to governmental plans that are picked up by the employing
unit and thus treated as employer contributions), although they may
otherwise be shown on the employee's W-2 form.
[Amended 1-24-1989 by Ord. No. 180; 10-7-2003 by Ord. No.
314; 8-16-2011 by Ord. No. 362]
FUND
All assets held by the trustee under the trust agreement.
MEMBER
Any employee who has satisfied the eligibility requirements established in §
28-18 hereof and who is, at the time of reference, making such contributions as may be required pursuant to §
28-19A hereof.
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following
the date on which the member attains 60 years of age.
[Amended 7-16-1996 by Ord. No. 251; 10-7-2003 by Ord. No.
314]
PLAN
The 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.
SUSPENDED MEMBER
Any member who is absent from the employ of the Township for any reason set forth in Subsection
A(1),
(2) or
(3) of the definition of "credited service" above or who, by reason of a change in the conditions of his employment as set forth in Subsection
A(4) of such definition, is ineligible to continue making the contributions required pursuant to §
28-19A hereof and who has not withdrawn or otherwise received a return of contributions he made to this plan or the fund.
TOTAL DISABILITY
Any condition which qualifies the member for disability pension
benefits from the federal social security disability pension benefits.
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.
[Amended 2-1-2000 by Ord. No. 283; 10-7-2003 by Ord. No.
314]
A. The pension plans of the Township, including the Uniformed and Nonuniformed
plans, shall be administered by the Township Board of Supervisors.
To assist the Township Board of Supervisors in the administration
of the plans, a Pension Advisory Committee shall be established, which
shall consist of 10 persons. The 10 members shall include: one member
of the Board of Supervisors, who shall be appointed at the reorganization
meeting of the Board of Supervisors held in January of each year and
shall serve for a one-year period and shall not be a voting member
of the Committee; the Township Manager, who shall be a nonvoting member
of the Committee; the Township Finance Director, who shall be a nonvoting
member of the Committee; two persons appointed by the Board of Supervisors,
one of whom shall be a representative of the Police Department, whose
name shall be recommended by the Police Department for inclusion in
the Committee, and one person shall be recommended by the Nonuniformed
Pension participants for inclusion in the Committee. In addition thereto,
five persons shall be appointed by the Board of Supervisors, who shall
not include members of the Board of Supervisors or the representatives
of the Uniformed and Nonuniformed Employees or be employees of the
Township, but rather shall be persons appointed by the Board of Supervisors,
three of whom must be residents of Doylestown Township. The five additional
persons noted herein, who are appointed by the Board of Supervisors,
shall have expertise and/or experience and/or training with respect
to the administration of pensions, actuarial matters, and investments,
or in any related field which would be beneficial to the Township
with respect to the management of its pension funds. The persons appointed
by the Board of Supervisors, who are not supervisors and/or employees
of the Township, shall serve for three-year terms. Initial appointments
shall be staggered such that one person shall be appointed to a one-year
term, two persons shall be appointed to a two-year term, and two persons
shall be appointed to a three-year term. Each member shall be appointed
to serve without compensation. The five individuals appointed, who
are not employees and/or supervisors, together with the two employees
of the Township appointed by the Board of Supervisors, who are representatives
of the Police Department and are nonuniformed employees, shall be
the voting members of the Committee. The member of the Board of Supervisors,
the Finance Director, and the Township Manager shall be nonvoting
members of the Committee. In addition to the 10 members, the Committee
shall have a secretary, who shall be a secretary of the Township.
The Committee shall recommend the adoption of rules and regulations
and investment strategies for the administration of the pension plans
to the Board of Supervisors of the Township. Any member of the Committee
may resign by filing a written notice with the Township. The vacancy
shall be filled promptly by the Township Board of Supervisors.
[Amended 3-20-2018 by Ord. No.
387]
B. The Committee shall keep all data, records and documents pertaining to the writing of the plan, but all documents shall be executed by the Board of Supervisors so as to carry out the provisions of the plan. The Committee shall, with the approval of the Board of Supervisors, provide all such data, records and documents to the trustee, the actuary and any other professional whose services are employed pursuant to §
28-10B noted above.
C. The Committee shall make recommendations to the Board
of Supervisors concerning interpretation of the plan and shall make
recommendations to the Board of Supervisors concerning the determination
of any questions of fact arising out of the plan and shall make recommendations
to the Board of Supervisors in all matters required under the plan
or the trust agreement and the construction thereof. The Committee
may make further recommendations to the Board of Supervisors concerning
correcting any defect or supplying any omission or the reconciliation
of any inconsistency in such manner and to such extent as it shall
deem it appropriate to carry the plan into effect. The Committee shall
make recommendations uniformly with respect to matters coming before
it concerning employees in similar circumstances.
D. The Committee shall serve without bond except as may
be otherwise required by law and without compensation for its services
as such. All expenses of the Committee shall be paid by the plan.
E. The members of the Committee, 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 be fully indemnified
by the Township against all judgments not involving findings of their
respective personal or collective willful misconduct or gross negligence
and against all costs, including counsel fees, incurred in defense
of actions brought against them.
F. The Committee 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 Committee to perform its functions,
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 Committee
may require; and the Committee 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 and shall make such
recommendations to the Board of Supervisors as to the proper instructions
to be given to the trustee for the carrying out of the purposes of
this plan.
H. The Committee shall recommend to the Board of Supervisors
the enactment of such rules and regulations for the conduct of its
business and for the administration of the plan as it may consider
desirable, provided that the same shall not be in conflict with any
of the provisions of the plan. All actions of the Committee in making
recommendations to the Board of Supervisors shall be taken at meetings
at which at least five members shall be present. Written minutes shall
be kept of the meetings and actions of the Committee. No member of
the Committee who is a member of the plan shall vote on any matter
affecting his benefits separately from the benefits of all other employees.
[Added 6-1-2010 by Ord. No. 356]
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 participants'
monthly pension check while a DROP participant.
B. Eligibility. Effective on January 1, 2010, nonuniformed employees
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 60.
C. Written election. A nonuniformed employee 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 effective on a specific date (the
"resignation date"). In no event shall the resignation date be less
than 12 months or more than 48 months from the execution of the DROP
option form. An employee shall cease to work as an employee on the
employee's resignation date, unless the Township terminates or
honorably discharges the employee prior to the resignation data. 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 without penalty. 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
Nonuniformed Employees' Pension Administrator must be filed and
presented to the Township for approval of the retirement and payment
of pension benefits.
D. Limitation on pension accrual. After the effective date of the DROP
option, a 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 Nonuniformed Employees'
Pension Plan. The average applicable compensation of a 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 a member shall remain unchanged even if
the pension plan improvements occur after the election of the DROP
option but prior to the employee's termination of employment.
F. Payments to the DROP account. The monthly retirement benefits that
would have been payable had a 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 pursuant
to Act 44. This account shall be designated the "DROP trust account."
Interest shall be compounded and credited monthly at the accrual rate
earned by the DROP participant account but shall not be less than
0% nor more than 4.5%.
G. Accrual of nonpension benefits. After an employee elects to participate
in the DROP program, all other contractual benefits shall continue
to accrue, with the exception of those provisions relating to the
Nonuniformed Employees' Pension Plan.
H. Payout. Upon the termination date set forth in a 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 trust account. Within 45 days following the termination
of a member's employment pursuant to his/her participating in
the DROP program, the balance in the member's 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 or her 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 subsection, if a member is disabled and
has not returned to work as of the date of his or her required resignation,
then such resignation shall take precedence and said employee shall
be required to resign. Nothing contained in this plan shall be construed
as conferring any legal rights upon any 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 sever an employee's employment based upon an inability to
perform his or her full duties. If such person is terminated while
participating in the DROP program, he or she shall, upon termination,
receive the DROP payments that had accrued to the date of his or her
termination of employment.
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 employee's participation
in the DROP, an employee 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 or her 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 shall select an investment manager
to administer the DROP accounts. 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 Township agrees that all
costs or fees associated with the management of the DROP accounts
shall be paid directly from the Nonuniformed Employees' Pension
Plan 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 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 employee'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 the employee for
just cause or to sever the employee's employment because of a
physical or mental inability to perform his or her duties.