[Amended 4-26-1994 by Ord. No. 1-1994]
A.
A Police Pension Plan is hereby established pursuant to the Act of May 29, 1956, P.L. 1804, as amended and supplemented, to provide for the administration of a police pension plan and the investment and management of the funds and assets of a police pension fund (such police pension plan and police pension fund hereinafter collectively the "Police Pension Plan"). Such Police Pension Plan shall be under the direction of the Borough of Kutztown and shall be applied under such regulations as the Council of the Borough of Kutztown may prescribe, in accordance with law. The Council of the Borough of Kutztown may, in the exercise of its sole discretion, from time to time, select and retain by resolution such investment advisors, investment managers, actuaries, accountants, trustees and other professionals and consultants as the Council deems advisable for the purpose of rendering services in connection with the administration and management of the Police Pension Plan and may fix their terms of retention and compensation. The Council of the Borough of Kutztown may, in the exercise of its sole discretion, from time to time, adopt by resolution an investment policy ("Investment Policy") to be made applicable to the Police Pension Plan. The Investment Policy, when adopted by the Council of the Borough of Kutztown, shall:
(1)
Govern the actions of the investment advisors, investment managers, actuaries, accountants, trustees and other professionals and consultants which from time to time may be retained by the Council of the Borough of Kutztown in connection with the Police Pension Plan.
(2)
Set forth the various investment and management objectives of the Police Pension Plan, including but not limited to appropriate levels of risk, relative asset allocations, limitations imposed by applicable statutes and regulations, liquidity needs and growth goals.
B.
The Police Pension Plan, originally effective January 1, 1947, is hereby amended and restated in its entirety, effective January 1, 2001, and the form thereof dated January 1, 2001, is hereby adopted as the Police Pension Plan, and the Trust Agreement bearing even date therewith is also adopted, the terms of both of which are incorporated herein by reference. Appointment and substitution of the Chief Administrative Officer of the Police Pension Plan and/or the Trustee of the Trust thereunder may be made from time to time hereafter by resolution of the Council of the Borough of Kutztown.
[Added 3-16-2004 by Ord. No. 3-2004[1]]
[1]
Editor's Note: This ordinance also repealed former § 33-6, Eligibility for participation in plan, § 33-7, Requirements for benefits, as amended, § 33-8, Contribution rate, as amended, § 33-9, Retirement or pension benefits, as amended, § 33-10, Cost of living increase, § 33-11, Vesting, as amended, and § 33-12, Prior pension assets and benefits, all of which immediately followed this section.
C.
Section 1.3(a) is amended to change the definition of "compensation" to comply with the provisions of an Act 111 arbitration award for the period January 1, 2005, through December 31, 2007. As amended, Section 1.3(a) shall read as follows:
[Added 1-16-2007 by Ord. No. 2-2007[2]]
Section 1.3(a)(1) "Compensation" means any earnings reportable as W-2 wages for federal income tax withholding purposes, plus elective contributions, for the applicable period. Elective contributions are amounts excludable from the employee's gross income and contributed by the employer, at the employee's election to: | |
A Cafeteria plan [excludable under IRC Section 125 and as provided in Section 7.1(e)(3)]; | |
A tax sheltered annuity [excludable under IRC Section 403(b)]; or | |
A deferred compensation plan excludable under IRC Section 457). | |
Any reference in this plan to compensation shall be a reference to the definition in this Section 1.3, unless the plan reference specifies a modification to this definition. The Plan Administrator shall take into account only compensation actually paid by the employer for the relevant period. A compensation payment includes compensation by the employer through another person under the common paymaster provisions in IRC Sections 3121 and 3306. | |
Compensation from a related employer that is not a participating employer under this plan shall be excluded. | |
(2) Exclusions from compensation. Notwithstanding the provisions of Section 1.3(a)(1), the following types of remuneration shall be excluded from the participant’s compensation: | |
Unused vacation, holidays, and compensatory time paid on account of termination of employment. | |
Any lump sum payment made upon termination of employment. |
[2]
Editor's Note: This ordinance also provided that it shall be effective as of 1-1-2005.
D.
The Police Pension Plan, originally effective January 1, 1947, and amended and restated in its entirety, effective January 1, 2001 by Ordinance No. 3-2004, to comply with Internal Revenue Code requirements, and further amended by Ordinance No. 2-2007 to comply with the provisions of an Act 111 arbitration award which amended the Police Pension Plan Section 1.3(a) to redefine and clarify the definition of "compensation," is hereby amended and restated in its entirety, effective January 1, 2008 and the Trust Agreement bearing even date therewith is also adopted, the terms of both of which are incorporated herein by reference.
[Added 11-18-2008 by Ord. No. 14-2008]
E.
The attached 2009 Compliance Amendment to the Borough of Kutztown Police Pension Plan is hereby approved and the Council President, as the agent of the Borough of Kutztown, is authorized to execute the attached amendment of the Plan.[3]
[Added 1-19-2010 by Ord. No. 2-2010]
[3]
Editor's Note: Said plan and amendment are on file in the Borough offices.
F.
The attached amendment to the Borough of Kutztown Police Pension Plan is hereby approved[4] and the Council President, as the agent of the Borough of Kutztown, is authorized to execute the attached amendment of the Plan.
[Added 7-19-2011 by Ord. No. 6-2011]
[4]
Editor's Note: This amendment (Amendment No. 2) is on file in the Borough offices.
G.
The attached amendment of the Borough of Kutztown Police Pension Plan is hereby enacted.[5] The Borough Manager, as the agent of the employer, is authorized and directed to execute the attached amendment of the Plan.
[Added 12-20-2011 by Ord. No. 14-2011]
[5]
Editor's Note: This amendment (2011 HEART Compliance Amendment) is on files in the Borough offices.
H.
The attached amendment of the Borough of Kutztown Police Pension Plan is hereby enacted.[6] Borough Manager Gabriel Khalife, as the agent of the employer, is authorized and directed to execute the attached amendment of the Plan.
[Added 11-18-2014 by Ord. No. 1-2014]
[6]
Editor's Note: This amendment (recognizing the revised definition of "spouse" under the laws of the Commonwealth of Pennsylvania) is on file in the Borough offices.
I.
A five-percent contribution is required to be made into the Police Pension Fund for the calendar year 2024 by each full-time police officer of the Borough of Kutztown now or hereafter eligible for participation in the Police Pension Plan for the calendar year of 2024.
[Added 9-15-2020 by Res. No. 12-2020; amended 9-21-2021 by Res. No. 15-2021; 9-19-2023 by Res. No. 14-2023]