[Adopted 7-15-1980 as Ch. 21 of the 1980 Code; amended
in its entirety 12-16-2008 by Ord.
No. 581]
The following words and phrases as used in this Plan shall have
the meaning set forth in this article, unless a different meaning
is otherwise clearly required by the context:
ACCRUED BENEFIT
As of any given date, the benefit determined under §
21-4B, calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed 1.0. In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under §
21-9. All accrued benefits are subject to all applicable limitations, reductions, offsets, and actuarial adjustments provided pursuant to the terms of the Plan prior to the actual payment thereof.
ACCUMULATED CONTRIBUTIONS
The total amount contributed by any participant to this Fund
or its predecessor by way of payroll deduction or otherwise, plus
interest credited at 6% per annum. Interest shall be credited in the
form of compounded interest from the first day of the plan year immediately
following the date on which contributions were paid to the first day
of the month preceding the date that a refund of accumulated contributions
shall be paid or payment of benefits shall commence.
[Amended 5-20-2014 by Ord. No. 613]
ACT
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
ACTUARIAL EQUIVALENT
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by the Plan actuary.
ACTUARY
The person, partnership, association or corporation which
at any given time is serving as actuary; provided that such actuary
must be an approved actuary as defined in the Act.
AGGREGATE SERVICE
The total period or periods of the participant's employment
with the employer whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment
which should otherwise remain in the plan, such period of employment
shall not be included in aggregate service thereafter unless, at the
commencement of the next period of employment, the participant repays
to the fund the amount of such distribution with interest. For purposes
of this aggregate service, interest shall accrue as of the date the
date the participant receives a refund of accumulated contributions
and shall be computed at the same rate and in the same manner as described
in the definition of "accumulated contributions."
BENEFICIARY
The person or entity designated by the participant to receive
a distribution of the participant's accumulated contributions
should the participant die prior to becoming entitled to a retirement
benefit. In the event that a participant does not designate a beneficiary
or the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse, or if there is no surviving spouse,
the issue, per stirpes, or if there is no surviving issue, the estate;
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.
CHIEF ADMINISTRATIVE OFFICER
The person designated by the Borough who has the primary
responsibility for the execution of the administrative affairs for
the Plan. If none is so appointed, the Chief Administrative Officer
shall be the Borough Manager, and if there shall be none then serving,
the Council.
CODE
The Internal Revenue Code of 1986, as amended.
COMMITTEE
The Police Pension Committee as determined pursuant to §
21-8B.
COMPENSATION
The employee's fixed compensation paid at periodic intervals
including longevity pay and shall not include overtime, holiday pay,
bonus pay or compensation paid by the Borough to the employee for
traffic details or other duties where the employees' payments
from the Borough are reimbursed to the Borough by any person, firm
or corporation. Compensation shall be limited on an annual basis to
the amount specified for government plans pursuant to Code Section
401(a)(17).
A.
For participants hired after January 1, 2017, the existing definition
of "compensation" in this section.
[Added 6-19-2018 by Ord.
No. 637]
B.
Effective for all active participants as of January 1, 2017,
the existing definition of “compensation” found in this
section shall not apply and in its place the following shall apply:
"Compensation" shall mean the employee’s W-2 compensation
paid at periodic intervals including longevity pay and shall in addition
include overtime and lump-sum payments for sick pay and holidays.
"Compensation" for this purpose shall not include uniform allowances,
or health care gross ups paid in lieu of health care coverage. "Compensation"
for this purpose shall not include bonus pay or compensation paid
by the Borough to the employee for traffic details or other duties
where the employees’ payments from the Borough are reimbursed
to the Borough by any person, firm or corporation. Compensation shall
be limited on an annual basis to the amount specified for government
plans pursuant to Code Section 401(a).(17).
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Compensation is limited to amounts that are permitted to be
included in the calculation of final average monthly salary by the
Auditor General’s Bulletin No. 2001-01, as clarified. In no
event shall compensation include payment for any accumulated leave
that was earned outside of the final months used in the pension calculation.
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COUNCIL
The Council of the Borough of Heidelberg.
DISABILITY DATE
The date when a participant is determined by the Plan Administrator
to be incapacitated due to total and permanent disability, or the
date when the participant's employment terminates due to such
total and permanent disability, if later.
EMPLOYEE
Any individual employed by the employer on a regular full-time
basis as a police officer of the employer's police force.
EMPLOYER
Borough of Heidelberg, Allegheny County, Pennsylvania.
EMPLOYMENT
For the purpose of determining aggregate service:
A.
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer;
B.
Any period of time for which an employee is paid, either directly
by the employer or through a program to which the employer has made
contributions on behalf of the employee, a fixed, periodic amount
in the nature of salary continuation payments for reasons other than
the performance of duties (such as vacation, holidays, sickness, entitlement
to benefits under workers' compensation or similar laws);
C.
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that the
participant has been employed as a regular, full-time member of the
employer's police force for a period of at least six months immediately
prior to the period of military service; and the participant returns
to employment within six months following discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer; and
D.
Subsection
C above shall be subject to such limitations and conditions as are set forth in Act 600.
FINAL MONTHLY AVERAGE SALARY
For participants hired prior to January 1, 2008, the average
monthly compensation earned by the participant and paid by the employer
during the final 36 months immediately preceding termination of active
employment.
[Amended 5-20-2014 by Ord. No. 613]
A.
"Final Monthly Average Salary" shall mean for participants hired
after December 31, 2007, the average monthly compensation earned by
the participant and paid by the employer during the final 60 months
immediately preceding termination of active employment.
B.
Final monthly average salary shall be calculated by taking into
account only those periods during which an employee receives salary,
as that term is defined in this section. Therefore, for example, the
final monthly average salary for a participant hired before January
1, 2008, who receives disability benefits from this Plan or who is
voluntarily or involuntarily serving in the United States Armed Forces
during the final 36 months of aggregate service shall be based on
the period during which the employee last received salary (as defined
in the preceding paragraph) from the employer. Salary used to determine
final monthly average salary shall be limited on an annual basis to
the amount specified for government plans in accordance with Code
Section 401(a)(17).
MINIMUM MUNICIPAL OBLIGATION
The minimum obligation of the municipality as determined
by the Chief Administrative Officer in consultation with the actuary
pursuant to the provisions of the Act.
NORMAL RETIREMENT AGE
The date on which the participant has completed 25 years
of aggregate service with the employer and has attained age 55; provided,
however, that for a participant who was hired prior to January 17,
1989, normal retirement age will be the earlier of the date determined
above or the date on which the later of the following occurs:
A.
The date the participant attains age 55.
B.
The date the participant completes 20 years of aggregate service.
NOTICE or ELECTION
A written document prepared in the form specified by the
Plan Administrator. If such notice or election is to be provided by
the employer or the Plan Administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto, on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the Plan Administrator, it must be received by
the recipient on or before the last day of the specified notice or
election period.
PARTICIPANT
An employee who has met the eligibility requirements to participate in the Plan as provided in §
21-2A and who has not for any reason ceased to be a participant hereunder.
PENSION FUND or FUND
The Police Pension Fund administered under the terms of this
Plan and which shall include all money, property, investments, policies
and contracts standing in the name of the Plan.
PLAN
The Plan set forth herein, as amended from time to time and
designated as the Borough of Heidelberg Police Pension Plan.
PLAN ADMINISTRATOR
The Borough Manager, and if none is so serving, the Borough
Secretary. In the event there is no Manager or Secretary, the Plan
Administrator shall be Council.
PLAN YEAR
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
POLICY or CONTRACT
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
RESTATEMENT DATE
January 1, 2008, the date upon which this amendment and restatement
of the Plan becomes effective.
RETIREMENT DATE
The first day of the month coincident with or next following
the date on which the participant retires from employment or the first
day of any month thereafter on which the payment of retirement benefits
pursuant to this Plan shall commence.
TOTAL AND PERMANENT DISABILITY
A condition of physical or mental disability which permanently
prevents the participant from performing the duties of a police officer.
A condition shall not be treated as a total and permanent disability
unless such condition is a direct result of or occurring in the line
of employment as a full-time police officer with the Borough of Heidelberg.
Therefore, a participant whose physical and mental impairment does
not occur in the line of duty is not entitled to receive disability
benefits under the plan. The determination of "total and permanent
disability" shall be made after evaluation of a report made by a physician
chosen by the Plan Administrator.
TRUSTEE
The initial and any successor trustee or trustees of the
Pension Fund. If no trustee is appointed, Council shall be trustee.
[Adopted 7-17-2007 by Ord. No. 573]
The proper officials of the Borough of Heidelberg
are authorized and empowered to execute an agreement with Paychex,
Inc., identified as "paycheck retirement services agreement." The
Borough of Heidelberg may modify or change the retirement services
agreement and provider by a resolution of the Borough of Heidelberg.
The purpose of the agreement is to provide nonservice
employees with a procedure to create a simplified IRA plan. The plan
shall consist of the Master Custody Agreement and a Fidelity Advisers
Simple IRA Plan and all other documents needed to implement this plan.
All employees of the Borough of Heidelberg who
are reasonably expected to receive at least $5,000 in compensation
and have received at least $5,000 in compensation from the Borough
of Heidelberg during one prior calendar year are eligible for the
plan.
Eligible employees may elect to defer, from
their salary, an amount of up to 3% annually, up to a maximum of $10,000
($12,000 if over age 50) per year.
The Borough of Heidelberg may make a contribution
to the Simple IRA on a dollar-for-dollar match that a plan participant
elected to defer with the contribution of the Borough being limited
to a dollar-for-dollar match up to 3% per year.
All investment decisions of the elected deferral
amount and/or the contribution of the Borough of Heidelberg shall
be invested at the sole discretion of the plan participant, and the
Borough of Heidelberg assumes no responsibility and provides no advice
for the investment decisions of the participant. No claims shall be
made against the Borough of Heidelberg or its elected or appointed
officials for any loss sustained by any plan participant for any investment
choice or choices made a plan participant.
The Borough of Heidelberg will annually pay
the cost of a Simple IRA annual custodial fee as imposed by the custodian
by each participant.
The Borough of Heidelberg reserves the right,
during the month of January of each year, to reduce or terminate the
matching contributions of the Borough of Heidelberg, reduce or eliminate
the payment of any custodial fees or to terminate this plan.
The Borough of Heidelberg will assume no responsibility
for the payment of any fees or contributions to the said plan or fees
to continue the said plan for any employee who resigns or is terminated
from the Borough of Heidelberg after the date of the resignation or
termination.
The following plan documents are incorporated herein and as amended from time to time:
A. Qualified Retirement Plan and Trust Basic Plan document
or Volume Submitter Basic Plan document as appropriate (collective
"basic plan document").
B. Adoption agreement of the Borough of Heidelberg.
C. Summary Plan description for distribution to plan
participants.
D. Master Custody Agreement.
E. Fidelity Adviser Simple IRA Plan.
The implementation of the plan shall be effective
as of January 1, 2007.