Township of Warwick, PA
Bucks County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents
[HISTORY: Adopted by the Board of Supervisors of the Township of Warwick as indicated in article histories. Amendments noted where applicable.]
[Adopted 9-8-1998 by Ord. No. 98-8;[1] amended in its entirety 9-3-2013 by Ord. No. 2013-2]
[1]
Editor's Note: This ordinance also superseded former Art. I, Nonuniformed Employees Pension Plan, adopted 6-17-1991 by Ord. No. 91-6
As used in this article, the following terms shall have the meanings indicated:
ANNUAL COMPENSATION
The actual base salary of a participant during a calendar year. The term "salary," as used in this section, and in this pension plan and trust, shall mean all compensation for which payroll deductions have been required and withheld.
AVERAGE MONTHLY COMPENSATION
The average monthly salary of a participant during the last 36 months of employment.
BENEFICARY
Any person designated by a participant to receive any death benefit upon the death of the participant.
DISABILITY
The inability to substantially perform functions of employment by reason of a physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. With mutual agreement of the participant and the Trustees, disability shall be determined by a licensed physician. However, if either the participant or the Trustees desire, disability shall be determined by a majority of three licensed physicians, two selected by the participant and the Trustees individually and one selected by their mutual agreement. In addition to satisfying the above definition of total and permanent disability, a participant must have completed 10 years of full-time employment before such disablement in order to qualify for Disability benefits. Disability benefits shall commence six months after the date of disablement.
EARLY REQUIREMENT DATE
The first day of the month coincident with or next following the 55th birthday or completion of 10 years of full-time employment, whichever is later.
EFFECTIVE DATE
The nonuniformed defined benefit pension plan is effective January 1, 1986. The defined contribution pension transition date is September 9, 2013.
EMPLOYEE
A permanent, full-time employee of Warwick Township who is not a member of the police force.
FULL-TIME
"Full-time" for participants in the defined benefit pension shall mean employees who have worked at least 1,000 hours of service during a twelve-month period for defined benefit pension accrual purposes. "Full-time" for participants in the defined contribution pension shall mean employees who customarily work at least 35 hours per week.
NORMAL REQUIREMENT DATE
The first day of the month coincident with or next following the 65th birthday.
PARTICIPANT
Any employee who has met the eligibility requirements to participate in either the defined benefit or defined contribution pension.
SUPERVISORS
The Supervisors of Warwick Township for the time in office at any time of reference.
TOWNSHIP
Warwick Township, Bucks County, Commonwealth of Pennsylvania.
TRUSTEES
The Board of Supervisors of Warwick Township.
A. 
Age and service.
(1) 
For the defined benefit pension: Each full-time, permanent, nonuniformed employee of the Township hired before September 9, 2013, shall become eligible on the first day of the month after attaining age 21 and completing one year of service, whichever is later.
(2) 
For the defined contribution pension: Each full-time, permanent, nonuniformed employee hired on or after September 9, 2013, shall become eligible upon completion of six months of service and attaining age 21.
(3) 
Change in status: In the event that a participant who remains in the service of the Township ceases to be an employee eligible for participation hereunder, no further benefit accruals shall occur until the participant again qualifies under such participation requirements. Such a requalified participant shall immediately commence accrual of additional benefits hereunder upon becoming eligible to participate.
B. 
Exclusions. Part-time, temporary or seasonal employees are not eligible to participate in the plan.
C. 
Contributions. Employees eligible to participate in the defined benefit pension in accordance with Subsection A shall not be required to make contributions to the defined benefit pension.
[Amended 7-17-2017 by Ord. No. 2017-1]
A. 
Normal retirement benefit. The monthly retirement benefit to which a participant shall be entitled upon retirement at his/her normal retirement date shall be an amount equal to 1.2% of the first $800 of the average monthly compensation plus 1.8% of any excess of the average monthly compensation over $800, all multiplied by the years and completed months of full-time employment as of the normal retirement date.
B. 
Early retirement benefit. The monthly retirement benefit to which a participant shall be entitled, upon retirement on or after his/her early retirement date, but before his/her normal retirement date, shall be computed by the benefit formula described in Subsection A above. Average monthly compensation and the period of full-time employment, however, shall be determined as of the actual retirement date. The amount of early retirement benefit thus determined shall be reduced by the appropriate factor of actuarial equivalency for each completed month by which such actual retirement date precedes the normal retirement date.
C. 
Cost-of-living increase. For employees hired before January 1, 2012, the plan hereby provides for a cost-of-living increase of participants receiving retirement benefits. The cost-of-living increase shall be at the rate of 2% per year. There shall be a maximum lifetime cost-of-living increase of 30%. Employees hired after January 1, 2012, shall not receive any cost-of-living increase from the plan.
A. 
Disability benefit. The amount of disability benefit shall be the retirement benefit accrued through the date of disability, determined in accordance with the benefit formula described in § 23-3 and based on average monthly compensation and period of full-time employment as of the date of disablement, reduced by the full amount of workers' compensation benefits, if any. Disability benefits shall be payable until recovery or death. The Plan Administrator shall have the authority to require medical evidence of continuing total and permanent disability at his/her discretion from time to time. Payment of disability benefits is contingent upon continuing acceptability of medical evidence which is satisfactory to the Plan Administrator.
B. 
Death benefit. If a vested participant dies before retirement, the surviving spouse, or, in the absence of a surviving spouse, another beneficiary, shall be entitled to receive an annuity equal to the amount of benefit accrued at the participant's death. If a participant dies after reaching the early retirement date, the surviving spouse or other beneficiary shall receive payments equal to those that would have been payable if the participant had retired with an immediate joint and fifty-percent contingent annuity on the day before his/her death. If a participant dies on or before the early retirement date, the surviving spouse or other beneficiary shall receive payments equal to those that would have been payable had the participant separated from service on the date of death, survived to his early retirement date, retired with an immediate joint and fifty-percent contingent annuity at that age, and died on the day after the early retirement date.
C. 
Vesting.
(1) 
If a Township employee's employment is terminated, or if he/she ceases to be an employee, as defined above, before his/her normal retirement date, he/she shall be vested in benefits accrued through his/her termination date according to the following five-year Cliff Schedule:
Completed Years of Service
Vesting Percentage
Less than 5
0%
5
100%
(2) 
No payments shall be due to any person no longer a Township employee until such time as the employee reaches his/her early or normal retirement date.
A. 
Normal form of annuity. Retirement benefits defined in §§ 23-3 and 23-4 shall be payable monthly during the balance of each participant's life following actual retirement.
B. 
Optional forms of annuity. Instead of the retirement benefit payable for life, the employee may elect to have the retirement benefit he/she is entitled to receive in any of the following forms, whereby the annual amount of retirement benefit so received shall be the actuarial equivalent of the annual amount of the retirement benefit, payable for life, as the employee is entitled to on his/her retirement date.
(1) 
Life annuity with payments for 10 years certain. This form of retirement benefit provides for monthly payments to be made for life, commencing on the retirement date, but in the event of death of the annuitant before 120 payments have been made, such payments shall be continued to the beneficiary named by the annuitant until a total of 120 payments have been made.
(2) 
Joint and fifty-percent contingent annuity option. This form of retirement benefit provides for monthly payments to be made commencing on the retirement date, until the later of the death of the annuitant or the death of the contingent annuitant specified by the participant. If the annuitant is not living to receive the monthly payments, the remaining payments will be made to the contingent annuitant, and the amount of each monthly payment to the contingent annuitant shall be 50% of the amount of each monthly payment to the annuitant.
(a) 
This annuity shall not take effect if the contingent annuitant dies prior to the date on which payments are to commence to the annuitant. However, the death of the contingent annuitant on or after such date shall not affect the amount payable monthly to the annuitant.
(b) 
The annual retirement benefit, in the case of any eligible employee who was married throughout the year preceding the annuity starting date, shall be in the form of a joint and fifty-percent contingent annuity, unless he/she has elected otherwise in writing as provided in Subsection B(2)(c) below. A spouse must sign off if other than a joint and survivor's annuity clause is chosen.
(c) 
At least 90 days and no more than six months before an employee shall reach the earliest date on which an eligible employee could elect to receive retirement benefits as provided herein, the Plan Administrator shall give such employee a written statement of his/her approximate anticipated benefits if he/she should take early retirement during the next year. If the employee is married, the statement shall clearly explain the difference between the joint and fifty-percent contingent annuity and other available annuities, both in terms of the anticipated annuity amounts in each case, and that if he/she does not elect otherwise prior to his/her retirement, his/her benefit will be paid in the form of a joint and fifty-percent contingent annuity if he/she has been married throughout the year preceding his/her retirement. The employee shall have 90 days after the receipt of such statement to file with the Plan Administrator, on a form provided by the Plan Administrator, an election to take the single life annuity or the life annuity with payments for 10 years certain or the joint and fifty-percent contingent annuity.
C. 
Actuarial equivalence. Actuarially equivalent annuity conversion factors and early retirement reduction factors shall be derived based on the 1971 Group Annuity Mortality Table with an assumed interest rate of 8% per annum. Such conversion factors and reduction factors shall be sex-neutral; participants and beneficiaries of the same age shall be treated the same regardless of sex.
A. 
Plan Administrator. The Township Nonuniformed Employees' Defined Benefit Pension Fund shall be under the direction of the Board of Supervisors of Warwick Township or such committee, persons, or corporate trustee as the Board of Supervisors from time to time designates by resolution, who shall be known as the Defined Benefit Pension Administrator, and who shall act as Trustees of the Township Nonuniformed Employees' Pension Fund, and such Trustees shall have full responsibility for the administration of the plan established hereunder.
B. 
Duties of Trustees. The Trustees shall hold, invest, reinvest and distribute all funds or other property received pursuant hereto in trust for the purposes of the plan. The Trustees may receive at any time, and from time to time, gifts, grants, devises, or bequests to the Township Nonuniformed employees' Pension Fund of any money or property, real, personal or mixed, to be held by them in trust for the benefit of this fund and in accordance with the provisions hereof. The Trustees shall be subject to such rules and regulations as may from time to time be adopted by the Board of Supervisors by ordinance or resolution. The Trustees shall have full power and authority by a majority action of its members, either directly or through their designated representatives, to do all acts, execute, acknowledge and deliver all instruments and to exercise for the sole benefit of the participants hereunder any and all powers and/or discretions necessary to implement and effectuate the purposes of the plan, including for purposes of illustrations but not limited to any and all of the following:
(1) 
To hold, invest and reinvest all funds received pursuant to the plan in such investments as may be authorized as legal investments under the laws of the Commonwealth of Pennsylvania;
(2) 
To enter into contracts or deposit agreements on behalf of Warwick Township with one or more insurance companies, in order to provide the pension and other benefits herein set forth, and to pay the premiums and deposits required by the purchase of said contract;
(3) 
To retain or purchase as an investment any form of annuity or contracts of similar nature, and to exercise with respect thereto any right or incident of ownership;
(4) 
To retain property which may, at any time, become an asset of the fund, as long as said Trustees may deem it advisable; and
(5) 
To make distribution of the monies in the fund, in accordance with the terms of this plan.
C. 
Expenses of administration. The expense of administrating the defined benefit pension, including compensation of an actuary, any custodian of the fund and any user charges or expenses related thereto, exclusive of the payment pensions, may be paid by the Township by appropriations made by the Board of Supervisors; from the assets of the Nonuniformed Employees' Defined Benefit Pension Fund; or from state aid to the pension plan, if any.
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 participant or his/her designated beneficiary. No participant or his/her beneficiary shall have any right to alienate, encumber or assign any assets of the fund held by the Trustees on his/her behalf, or any of the benefits or payments or proceeds of any contract or agreement purchased or acquired by the Township hereunder. Any contract or agreement purchased or acquired pursuant to this plan upon the life of such participant shall contain a provision, in substance, that to the extent permitted by law, none of the benefits or payments or proceeds of such contract or agreement shall be subject to any legal process by any creditor or such participant or beneficiary of such participant.
In the absence of an effective beneficiary designation, the Plan Administrator shall first pay death benefits to the spouse of an employee, if any, then to his/her children, if any, then to the employee's estate.
A. 
In the event that for any reason the benefits payable to any employee under the defined benefit plan are determined by the Plan Administrator, in his/her sole discretion, to be too small to feasibly provide the normal or optional retirement benefits, then a lump sum distribution calculated to be actuarially equivalent shall be made.
B. 
Optional transfers.
(1) 
In the event that any payment or payments to be made under the defined benefit plan to a participant, a beneficiary who is the surviving spouse of a participant, an alternate payee who is the former spouse of a participant, or a beneficiary who is not an alternate payee or the surviving spouse of a participant, would constitute an eligible rollover distribution, the individual may request that such payment or payments be transferred directly from the defined benefit plan to the trustee of a) an individual retirement account described in Section 408(a) of the Internal Revenue Code; b) an individual retirement annuity described in Section 408(b) of the Code (other than an endowment contract); c) an annuity plan described in Section 403(a) of the Code; d) a qualified retirement plan, the terms of which permit the acceptance of rollover distributions; or e) effective for distributions made on or after January 1, 2002, 1) an eligible deferred compensation plan described in Section 457(b) of the Code maintained by an eligible employer described in Section 457(e)(1)(A) of the Code that separately accounts for eligible rollover distributions; or 2) an annuity contract described in Section 403(b) of the Code; provided, however, that i) clauses c) and d) shall not apply to an eligible rollover distribution made prior to January 1, 2002, to a beneficiary who is the surviving spouse of a participant; ii) in the case of a distribution to a beneficiary who is not the surviving spouse or an alternate payee who is the former spouse of a participant, only clauses a) and b) shall apply; and iii) effective January 1, 2009, a plan described in clause a) shall include a Roth IRA described in Section 408(A) of the Code. Any such request shall be made in writing, on the form prescribed by the Trustees for such purpose, at such time in advance as the Trustees may specify. Notwithstanding the foregoing, any eligible rollover distribution in excess of $1,000 made after final regulations are issued by the Department of Labor with respect to Section 401(a)(31)(B) of the Code shall be transferred directly to the individual retirement plan of a designated trustee or insurer, unless the participant elects to receive such distribution.
(2) 
For purposes of this section, "eligible rollover distribution" shall mean a distribution from the defined benefit plan, excluding a) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) over the life (or life expectancy) of the individual, the lives (or life expectancies) of the individual and the individual's designated beneficiary, or a specified period of 10 or more years; b) any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; and c) any distribution to the extent such distribution is not included in gross income. Notwithstanding the foregoing, clause c) of the preceding sentence shall not apply to a distribution that is made on or after January 1, 2002, and rolled over to an eligible retirement plan described in clause a) or b) of the preceding subsection or a qualified defined contribution plan or, effective January 1, 2007, an annuity contract described in Section 403(b) of the Code or a qualified defined benefit plan that will separately account for the portion of the distribution that is included in gross income.
This plan shall be self-insured and self-administered by the Trustees.
Under no circumstances, prior to the satisfaction of all liabilities with respect to participants and their beneficiaries under the defined benefit plan, shall any part of the assets of the trust be used or diverted to any purpose other than the exclusive benefit of defined benefit plan participants or their beneficiaries.
A. 
Notwithstanding the above, annual compensation taken into account in determining final average monthly compensation shall not exceed $450,000 (or, effective January 1, 2002, $200,000), as adjusted in accordance with Internal Revenue Code Section 401(a)(17)(B) [the "Section 401(a)(17) compensation limit"]. Except as provided below, the Section 401(a)(17) compensation limit in effect for a calendar year applies to any period, not exceeding 12 months, over which compensation is determined ("determination period") and which begins in such calendar year.
B. 
If a determination period consists of fewer than 12 months, the Section 401(a)(17) compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. In determining compensation for purposes of applying the Section 401(a)(17) compensation limit for plan years beginning before January 1, 1997, the family aggregation rules of Section 401(a)(17) of the Internal Revenue Code shall apply.
C. 
Effective January 1, 2002, for purposes of determining the final average compensation of a participant who completes an hour of service on or after January 1, 2002, the Section 401(a)(17) compensation limit for any determination period beginning before January 1, 2002, shall be the Section 401(a)(17) compensation limit for the 2002 calendar year.
A. 
General limitation.
(1) 
Except as provided to the contrary in Subsections B and C of this section, the annual retirement benefit attributable to employer contributions accrued by, or payable to, any participant will not exceed the dollar limitation in effect for the limitation year under Internal Revenue Code Section 415(b)(1)(A), as adjusted pursuant to Section 415(d) of the Code, in the form of a qualified joint and survivor annuity or a single life annuity, the reduced actuarial equivalent of such dollar limitation (as adjusted) per annum annuity in the form of a single life annuity. The dollar limitation (as adjusted) described in the preceding sentence will be increased using an interest rate of 5% per year and the mortality table described in Section 417(e)(3) of the Code. If a participant's benefits are payable in a form subject to Section 417(e)(3) of the Code, such benefits will be adjusted, for purposes of applying the limitations under this section, to their actuarial equivalent in the form of a single life annuity, using the mortality table described in Section 417(e)(3)(B) of the Code and 1) for plan years prior to 2004, the interest rate set forth in Section 417(e)(3)(C) of the Code; 2) for the 2004 and 2005 plan years, the greater of A) the interest rate set forth in Section 417(e)(3)(C) of the Code; or B) 5.5%; and 3) for plan years beginning after 2005, the greatest of A) the interest rate set forth in Section 417(e)(3)(C) of the Code; B) 5.5%; or C) the interest rate that provides a benefit of not more than 105% of the benefit that would be provided if the interest rate set forth in Section 417(e)(3)(C) of the Code was used.
(2) 
For purposes of this section: A) the increase in dollar limitation described under Internal Revenue Code Section 415(b)(1)(A) that is effective January 1, 2002, will only apply to an employee who completes an hour of service on or after January 1, 2002; B) "compensation" has the meaning given to such term in Treas. Reg. § 1.415(c)-2(b) and (c), plus compensation, if any, credited to the participant pursuant to Section 414(u)(7) of the Code and, effective January 1, 2009, differential wage payments described in Section 3401(h) of the Code, subject to the applicable annual compensation limit under Section 401(a)(17) of the Code for the plan year; and c) the limitations of Section 415 of the Code shall be adjusted automatically each January 1 for increases in cost of living under Section 415(d); provided, however, that such adjustments shall not apply to any employee who does not complete an hour of service on or after such January 1.
B. 
Exceptions to the general limitation. No benefit will be deemed in violation of the limitation expressed in Subsection A if the amount of the benefit does not exceed $10,000 for the current plan year or any prior plan year, and the employer has not at any time maintained a defined contribution plan in which the participant participated.
C. 
Short service limitation. In the case of a participant who has less than 10 years of credited service, the limitation set forth in Subsection A will be reduced by multiplying it by a fraction, the numerator of which is the number of a participant's years of credited service (or parts thereof), and the denominator of which is 10. The limitation described in the preceding sentence will be applied separately with respect to each change in the benefit structure, to the extent required by the Secretary of the Treasury. In the case of a participant who has less than 10 years of vesting service, the limitation set forth in Subsection B will be reduced by multiplying it by a fraction, the numerator of which is the number of the participant's years of vesting service (or parts thereof) and the denominator of which is 10. This Subsection C shall not apply to disability benefits or death benefits.
D. 
Coordination with Section 415 of the Internal Revenue Code. The provision of this section shall be interpreted and implemented in accordance with Section 415 of the Code and all rulings, notices and regulations issued thereunder.
Pennsylvania law shall govern the construction, validity and administration of this plan and trust agreement. Should any section or any provision of either plan be declared by a court of competent jurisdiction to be invalid, such invalidity shall not affect the plan as a whole or any other part thereof.
A. 
Definitions. The following words and phrases, when used in connection with the defined contribution pension, shall have, unless the context clearly indicates otherwise, the meaning given to them in this section.
ACCOUNT
The entire interest of a participant in the defined contribution pension.
ADMINISTRATOR
The person, entity, or committee named as such by the Board of Supervisors, or, in the absence of any such appointment, the Board of Supervisors.
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any January 1 after the effective date.
(1) 
As to any participant who is married at the time of his/her death, the participant's spouse, except as provided in Subsection (2) of this definition;
(2) 
As to any participant who 1) is not married at the time of his/her death; or 2) is married, but the participant has completed a designation of beneficiary form designating someone other than his/her spouse, the persons or entities designated by the participant in writing to be his/her beneficiaries hereunder.
BOARD
The Board of Supervisors of Warwick Township, Bucks County, Pennsylvania.
COMPENSATION
The participant's gross pay before any payroll deductions. Compensation shall exclude any amounts paid after termination of employment.
DEFINED CONTRIBUTION PENSION
The money purchase pension plan for the nonuniformed employees of Warwick Township as herein set forth and as the same may hereinafter be amended. This pension plan is intended to satisfy the requirements of Section 401(a) of the Internal Revenue Code as a governmental money purchase plan.
EFFECTIVE DATE
This article shall be effective five days after enactment.
FUND
All money, property, and investments held and invested in the name of the defined contribution pension.
NORMAL RETIREMENT DATE
Upon retirement, participants may withdrawal funds at 59 1/2 years of age and must begin withdrawals by age 70 1/2.
PARTICIPANT
Any employee who has satisfied the eligibility requirements established in the defined contribution pension and who has been admitted to participation in the defined contribution pension. The term "participant" shall include active participants (those who are currently eligible to share in employer contributions to the pension) and retired participants (those former employees presently receiving benefits under the plan or immediately entitled to receive such benefits).
PARTICIPANT ACCOUNT
Each participant's individual account maintained within the fund to include the share of investment earnings or losses.
PAY PERIOD
The period of time at the end of which an employee is compensated for his/her services to the Township.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.
PTO
Paid time off.
ROLLOVER ACCOUNT
The distribution amount transferred to the plan by a participant from a qualified pension or profit-sharing plan.
TOWNSHIP
Warwick Township, Bucks County, 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
The Board of Supervisors of Warwick Township or any other agency or person appointed by the Board to serve in that capacity as set forth in the trust agreement.
VALUATION DATE
The last day of the plan year and each other interim date during the plan year on which a valuation of the fund is made.
B. 
Eligibility.
(1) 
Any full-time (works 35 hours a week or more), permanent, nonuniformed employees of the Township hired before November 1, 2013, may opt to transfer into the defined contribution pension.
(2) 
Each full-time, permanent, nonuniformed employee hired on or after November 1, 2013, shall become eligible upon completion of six months of service and attaining age 21.
(3) 
Change in status. In the event that a participant who remains in the service of the Township ceases to be an employee eligible for participation hereunder, no further benefit accruals shall occur until the participant again qualifies under such participation requirements. Such a requalified participant shall immediately commence accrual of additional benefits hereunder upon becoming eligible to participate.
(4) 
Exclusions. Part-time, temporary or seasonal employees are not eligible to participate in the plan.
C. 
Contributions.
(1) 
Township contributions. The Township shall contribute, on behalf of each participant employed on the last day of a pay period, an amount equal to 6% of the participant's gross compensation for that pay period. Should the Township, for any reason, fail to make a contribution as provided for herein, then such deficiency shall be made up in the pay period immediately following. Township contributions shall be made only on gross earned salary for time actually worked or PTO taken while actively employed.
(2) 
Participant contributions. Participants may make voluntary contributions to the plan. Maximum employee contributions shall be governed by federal and state laws and regulations. Employee contributions shall be made by payroll deduction based on an election in writing by the participant based on notice and procedures established by the Township.
(3) 
Rollovers and transfers. The Trustee may receive on behalf of a participant all or part of the entire amount of any distribution from a qualified plan that is eligible for rollover in accordance with requirements of Internal Revenue Code Sections 401(a), 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), or 457(16). Employees voluntarily opting to transfer into the defined contribution pension from the defined benefit pension will have their present value of accumulated benefit transferred into the defined contribution pension. This amount will be calculated using the actuarial equivalence as defined under the defined benefit plan provisions, except the required interest rate should be 7%. If employees transition into the defined contribution plan, they will no longer accrue benefits under the defined benefit plan after the date of transfer.
(4) 
State aid. The portion of the payments made by the State Treasurer to the Township and designated by the Board to be allocated to the Nonuniformed employee's Pension Fund from money received from taxes paid upon premiums by foreign casualty insurance companies may be used to reduce or eliminate the Township's contributions pursuant to § 23-11.4C(1) hereof and offset the payment of any administrative expenses.
(5) 
Forfeiture. Forfeitures will remain assets of the trust and, at the Township's discretion, shall be applied to the Township's costs (contribution and/or expenses) or reallocated to the participant accounts in the proportion that an individual participant's account balance (excluding rollover account balances) bears to the total of all participant accounts.
(6) 
Accounting and allocations.
(a) 
The Administrator shall establish and maintain an account in the name of each participant to which the Administrator shall credit all amounts allocated to each such participant as hereinafter set forth.
(b) 
The Township shall provide the Administrator with all information required by the Administrator to make a proper allocation of the Township's contribution for each plan year.
(7) 
Investment direction by participants.
(a) 
Rights of participants. To the extent that the Plan Administrator has established investment categories for participant investment direction, each participant shall have the right and responsibility to designate the investment category or categories in which the defined contribution pension is to invest amounts allocated to such participant's account from contributions made by the Township.
(b) 
Changes in investment direction. Any designation of investment categories by a participant shall be made in the manner prescribed by the Administrator and shall be made at such reasonable times as shall be determined by the Administrator.
(c) 
Available investment categories. There shall be offered such investment categories as shall be determined in accordance with uniform nondiscriminatory rules prescribed by the Administrator from time to time.
(d) 
Limitations on division of investments. Any participant may elect as to the allocation among investment categories for the investment of future contributions in such percentages and at such time as shall be determined in accordance with uniform nondiscriminatory rules prescribed by the Administrator.
(e) 
Failure to elect investment categories. In the absence of written designation of investment category preference, the Administrator shall invest all funds received on account of any participant in the investment category selected by the Administrator. Any designation of investment category by any participant shall, on its effective date, cancel any prior designation by the participant with respect to investment of future contributions.
(f) 
Annuity contract or trust. Notwithstanding any instruction from any participant, the terms of any applicable annuity or trust agreement shall control investment of fund assets.
(g) 
Participants shall be directly responsible for investment of 100% of their investment choices and associated fees. Participant will have direct access to their accounts.
(8) 
Vesting: full and immediate vested interests. All participants shall at all times be fully vested in their respective Township and participant contributions and rollover amounts.
D. 
Retirement benefits. Payout of proceeds of each participant's account shall be in accordance with federal law and the requirements of the defined contribution pension documents, as may be adopted and amended from time to time by the Township.
E. 
Death benefits.
(1) 
Death prior to retirement. If a participant dies prior to the commencement of pension benefits, his/her designated beneficiary shall be entitled to the participant's account determined pursuant to this article and the defined contribution pension documents, as valued at the time of death. If no such beneficiary survives, the amount will be paid to the participant's estate.
(2) 
Death after retirement. If a participant dies after distribution has commenced, the remaining portion of such interest will continue to be distributed in accordance with the method of distribution elected pursuant to § 23-11.4F of this chapter.
F. 
Method of distribution of benefits. Participants' distribution of benefits shall be subject to the state and federal laws of the 401(a) plan; however, all retirement distribution will be self-directed by the retired participant.
G. 
Termination of employment.
(1) 
Distribution. As of a participant's termination of employment, he or she may continue to maintain the 401(a) account with no further Township contributions or roll over the plan to another qualified retirement plan. The last Township payment into the plan will not reflect contributions on additional PTO buyback or severance payments paid at the time of termination of employment or retirement.
(2) 
Reemployment rights. If the terminated participant is rehired by the Township and reenrolls in the plan within 12 consecutive months of termination, he or she shall continue to participate in the plan as if such termination had not occurred, provided that the Township shall not make contributions for the period in which the participant is not employed by the Township.
H. 
Management of fund.
(1) 
It is the duty of the Administrator to pay the benefits to participants and their beneficiaries.
(2) 
The Administrator 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 Board may direct. The fair market value of the fund shall be reported to the members at least annually.
I. 
Powers and duties of Board.
(1) 
The plan shall be administered by the Board or a designee of the Board. The Board or its designee shall make and adopt rules and regulations for the efficient administration of the plan.
(2) 
The Board or its designated Administrator shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provisions of the plan, and shall provide all such data, records and documents to any professional whose services are employed pursuant to this pension.
(3) 
The Board or its designated Administrator shall construe the defined contribution pension, shall determine any questions of fact arising under the pension and shall make all decisions required of it under the plan and its construction thereof; any decisions and actions taken thereon in good faith shall be final and conclusive. It may correct any defect or supply any omission or reconcile any inconsistency in such manner to such extent as it shall deem expedient to carry the plan into effect, and it shall be the sole judge of such expediency. The Board shall act uniformly with respect to matters coming before it concerning employees and participants in similar circumstances.
(4) 
The participants of the Board, 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 shall 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.
(5) 
The Board or its designated Administrator shall make available to participants, retired participants and terminated participants and to their beneficiaries, for examination during business hours, such records as pertain to the person examining.
(6) 
To enable the Board or its Administrator to perform its functions, the Township shall supply full and timely information to it on all matters relating to the pay of all participants, their retirement, death, termination of employment and such other pertinent facts as the Board may require.
(7) 
The Board shall enact such rules and regulations for the conduct of its business and for the administration of the defined contribution pension as it may consider desirable, provided the same shall not be in conflict with any of the provisions of the defined contribution pension. All actions of the Board shall be taken at meetings at which at least two participants shall be present, or by written resolution and any resolutions concurred upon by not less than two of its participants shall be the action of the entire Board. Written minutes shall be kept of the meetings and actions of the Board.
(8) 
The Chair and Manager, acting on behalf of the Board, shall have the power to execute all documents necessary to carry out the actions of the Board, and any person, partnership, corporation or government agency shall accept such documents over such signature or signatures as if executed by the Board.
J. 
Provisions relating to Township.
(1) 
It is the expectation of the Township that it will continue this defined contribution pension indefinitely and will from time to time contribute to the fund such amounts as may be needed to provide the benefits set forth in this chapter, but continuance of the defined contribution pension 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.
(2) 
The Township assumes no obligation or responsibility with respect to the operation of the defined contribution pension and does not guarantee the payment of the benefits provided for participants of the defined contribution pension. The Township shall have no liability with respect to the administration of the fund, and payments made under the provisions of any ordinance establishing, amending, or maintaining the defined contribution pension shall not be a charge on any other fund in the treasury of the Township or under its control.
(3) 
Nothing contained in the defined contribution pension shall be held or construed as a contract or guarantee of employment or to create any liability upon the Township to retain any person in its service. The Township reserves the full right to discontinue the service 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 defined contribution pension.
K. 
Termination or amendment of plan.
(1) 
The Township may amend, curtail or terminate this defined contribution pension at any time; provided, however, that no amendment affecting the Administrator or Trustee shall be made without its consent (other than an amendment having the effect of termination of the defined contribution pension); 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 participants or their beneficiaries (except upon termination, such diversion may be made after all of the fixed and contingent liabilities to participants 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 participant.
(2) 
In the event of termination of this defined contribution pension, the Board shall allocate the assets then remaining in the fund, to the extent that such assets are sufficient, to participants and retired participants in an amount equal to their respective participant account balance, reduced in the cases of retired participants by any prior distributions made to them.
(3) 
After allocation of the funds, the Board shall determine whether to operate the fund as the source of whatever payments the money so allocated will provide.
L. 
Miscellaneous provisions.
(1) 
No benefit under this defined contribution pension 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 participants or participant's beneficiaries.
(2) 
Any person dealing with the Trustee may rely upon a copy of this defined contribution pension plan and any amendments thereto certified to be a true and correct copy by the Administrator or Trustee.
(3) 
Anything heretofore contained in the defined contribution pension plan to the contrary notwithstanding, it is the intention of the Township that any action herein provided to be taken by the Administrator or Trustee shall be taken only in accordance with written instructions of the Board, given in such detail as to preclude the exercise by the Trustee of discretion in the performance thereof.
(4) 
Under no circumstances, whether upon amendment or termination of this defined contribution pension or otherwise, shall any part of the fund be used for or diverted to any purpose other than the exclusive benefit of participants or their beneficiaries until all of the actuarial obligations to such participants or participant's beneficiaries have been met.
(5) 
If the Board deems any person incapable of receiving benefits to which he/she is entitled by reason of minority, illness, infirmity, or other incapacity, it may direct the Administrator or Trustee to make payment directly for the benefit of such person to the guardian or trustee of such person, whose receipt shall be a complete acquittance therefor. Such payment shall, to the extent therefor, discharge all liability of the Township, the Trustee and the fund.
(6) 
Should any provision of this defined contribution pension be determined to be void by any court, the defined contribution pension will continue to operate and, to the extent necessary, will be deemed not to include the provision determined to be void.
(7) 
Headings and captions provided herein are for convenience only and shall not be deemed part of the defined contribution pension plan.
(8) 
This defined contribution pension shall be construed and applied under the laws of the Commonwealth of Pennsylvania where not in conflict with federal laws, which shall prevail.
(9) 
All ordinances or resolutions, or portions thereof, inconsistent herewith are hereby repealed.
[Adopted 3-4-2002 by Ord. No. 2002-2; amended in its entirety 1-18-2016 by Ord. No. 2016-1]
A. 
Definitions. The following words and phrases as used in the article shall have the following meaning, unless a different meaning is clearly required by the context:
AGE
Age at the nearest birthday.
ATTENDING COLLEGE
Eligible children who are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester.
BENEFICIARY
Any person, estate, or trust entitled to receive any payments on the death of a participant.
COMPENSATION
The basic monthly compensation paid to an employee, including bonuses, overtime pay and other forms of additional compensation averaged over his/her actual service before his/her actual retirement date, but not over any period prior to the time during which benefits are calculated in § 23-15 of this article. Bonuses, overtime pay and other forms of additional compensation shall be included in the computation of average compensation for the purpose of determining the retirement or disability benefit. Overtime pay, bonuses, and other forms of additional compensation earned in periods of time other than the period of time during which benefits are calculated, but paid in the period of time during which pension benefits are calculated, or paid immediately after retirement shall not be included in the computation of average compensation for retirement or disability benefits.
DROP ACCOUNT
A separate account created to accept DROP participants' monthly pension checks during the period that an employee is participating in the DROP program.
DROP PROGRAM
Deferred Retirement Option Program.
EMPLOYEE
A person actively engaged by the Township as a police officer on a regular full-time permanent basis.
ENTRY DATE
January 1 and each anniversary thereof.
FUND
The Warwick Township Police Pension Fund as amended from time to time.
FUND/TRUST FUND
All cash, investments, and other properties held and owned by the Trustee hereunder.
INSURED
A person on whose life a policy has been issued under the plan.
INSURER
A legal reserve life insurance company which may issue a policy under this plan.
LATE RETIREMENT DATE
A member may elect in writing to defer his/her retirement date. His/her late retirement date shall be the first day of any calendar month following his/her normal retirement date on which he actually retires from active service.
MEMBER
An employee eligible to participate in the benefits provided hereunder whose pension has not yet commenced.
NORMAL RETIREMENT DATE
The first day of the calendar month coincident with or next following attainment of age 55 and completion of 25 years of service with the Township.
PARTICIPANT
Any employee who is eligible and who has completed the requirements for participation as provided for under this plan.
POLICY
A life insurance and/or annuity contract issued by an insurer.
VALUATION DATE
January 1 of each year.
B. 
Word usage.
(1) 
Plurals and genders. Whenever appropriate, words used herein in the singular may include the plural, or the plural may be read as the singular, and masculine may include the feminine.
(2) 
Delegation of authority by Township. Whenever the Township under the terms of this Agreement is permitted or required to do or perform any act or matter or thing it shall be done and performed by its Board of Supervisors or its designate Trustees.
A. 
All police employees and probationary police employees shall be members of the police employee pension and retirement plan. Each police employee may retire or be retired from the Department of Police of the Township on the first day of the month which next follows the day on which the police employee attains the age 55 years and has accumulated 25 years of service.
B. 
Any police employee employed by the Department of the Police of the Township, who has been a regularly appointed police employee of the Department of the Police of the Township for a period of at least six months and who thereafter shall enter into the military service of the United States shall have credited to his/her employment record for pension or retirement benefits all of the time spent by him/her in such military service, if such person returns or has heretofore returned to his/her employment within six months after his/her separation from the military service of the United States.
C. 
Any police employee shall be eligible to receive credit for intervening military service as provided in Subsection B above, provided that he/she is not entitled to receive, eligible to receive now or in the future or is receiving retirement benefits for such service under a retirement system administered and 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 non-active duty with a reserve or national guard component of the armed forces, which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Chapter 67 (relating to retired pay for nonregular service).
The Board of Supervisors agrees to the formation of a Police Pension Fund Board to be comprised of a representative from the Police Benevolent Association who is a police employee, a representative from the Board of Supervisors, the Township Manager, and a resident of Warwick Township knowledgeable in the funding and operation of pension plans. In the absence of a Township Manager, his/her position shall remain vacant.
A. 
The police employee so retiring will be entitled to receive from the police pension and retirement fund a monthly pension commencing as of the first day of the month coincident with or next following his/her actual retirement and ending with the payment made as outlined in § 23-19, Survivor benefits.
B. 
The amount payable shall be 50% of the police employee's average monthly compensation for the final 36 months of service as a police employee. Should there be early retirement or disability eligibility, the payment will be in proportion to the age and years of service requirement with the benefits cut back and reduced in accordance with the same portion to that payable at the normal retirement date. The payments will be made on a monthly basis.
C. 
Effective January 1, 1993, payments from the plan shall be subject to a cost-of-living adjustment (COLA). This adjustment shall be equal to the change in the Consumer Price Index, provided that the COLA not exceed 30% of the total initial benefit and not exceed 75% of the final average salary of the police employee.
D. 
Effective January 1, 1991, the social security offset will be reduced to 0%.
E. 
Should the police employee continue his/her employment as a police officer for the Township beyond his/her normal eligible retirement date, that police employee will remain a member of the plan until he/she actually retires or otherwise ceases to be a police employee of the Township. The police employee must continue to contribute to the plan as required. However, the 36 months prior to the normal or eligible retirement date will not be considered in computing the retirement benefit.
F. 
Notwithstanding the provisions of § 23-15E above, if the police employee participates in the DROP program, the police employee is considered retired for pension purposes but remains an active police officer.
The contributions made to the pension plan and the retirement fund so as to effect and assure that it remains and continues to be actuarially sound shall be as follows:
A. 
Each police employee and probationary police employee shall contribute monthly the sum of 5%, the maximum contribution of the police employee and probationary police employee's compensation, if, and to the extent, actuarially required.
B. 
Out of this fund the Township is authorized and empowered to pay any premium cost incurred to it so as to maintain any disability insurance plan deemed suitable to fund the police pension and retirement fund, or to pay a disabled police employee or police probationary employee. The Township is further authorized and empowered to pay any premium cost incurred to maintain any other insurance permitted by law and suitable to fund other benefits provided under terms of the plan. If actuarially required the Township is authorized to make the deduction from each police employee and police probationary employee's paycheck.
C. 
The Township shall contribute to the police pension and retirement fund in order to maintain and provide the benefit contemplated by the police pension and retirement fund. The Township contribution shall be the amount established by the actuary to maintain the police pension and retirement fund actuarially sound.
A. 
The monthly pension benefit that will be payable to a police employee hired prior to January 1, 2013, who sustains a permanent disability, giving rise to his/her eligibility for a service-related disability benefit, shall be equal to 75% of the police employee's final average compensation, as is hereinabove defined, which is earned and paid in the final 36 months of active duty. The monthly pension benefit that will be payable to a police employee hired on or after January 1, 2013, who sustains a permanent disability, giving rise to his/her eligibility for a service-related disability benefit, shall be equal to the greater of 50% of the police employee's final average compensation, as hereinabove defined, or 50% of the police employee's salary at the time of disability.
B. 
There is no minimum period of service required for a police employee to be eligible for a service-related disability pension benefit.
C. 
A police employee will be deemed to be permanently disabled under and pursuant to this article when he/she is permanently disabled to the extent that he/she is unable to perform the usual and normal functions and duties of a police officer as determined by the Board of Supervisors as a direct result of an injury or condition that has occurred in the course of the police employee's employment with the Township. The restrictions imposed upon the police employee by reason of such service-related injury or condition shall not be temporary in nature and shall not arise by reason of a non-service-connected illness, condition or injury. The restrictions imposed upon the police employee must preclude the officer from performing his/her functions and duties associated with the occupation of a police officer, as certified by a physician licensed to practice medicine in the Commonwealth of Pennsylvania, selected and designated to evaluate the police employee by the Township.
Upon reaching the date which would have been his/her superannuation retirement date if he/she had continued to be employed as a full-time police officer, he/she shall be paid a partial superannuation retirement allowance determined by applying the percentage his/her years of service bears to the years of service which he/she would have rendered had he/she continued to work until his/her superannuation retirement date to the gross pension, using, however, the monthly average salary during the thirty-six-month period prior to his/her termination of employment.
Upon the death of the police employee or probationary employee, whether prior to or after the retirement of the police employee or probationary police employee, as provided above, the following benefits will be payable by the plan or from the retirement fund:
A. 
The surviving spouse, or if no spouse survives or if the surviving spouse subsequently dies, then the child or children under the age of 18 years or if attending college, under or attaining the age of 23 years, of the police employee or the probationary police employee will be paid a monthly pension commencing as of the first day of the month next following the date on which the police employee or probationary police employee's death occurred and terminating as of the first day of the month in which the surviving spouse dies. That sum no less than 1/2 or 50% of the monthly pension benefit which was then being paid to the retired police employee or probationary police employee had he/she qualified for the benefits as provided under the pension plan as of the date on which his/her death occurred.
B. 
If the police employee or the probationary police employee should die without leaving a spouse to survive him/her, or if the surviving spouse subsequently dies, then in that event there will be paid a monthly pension to the guardian of the estate of each surviving child of the police employee or probationary police employee, commencing as of the first day of the month which next follows that date on which the police employee or probationary police employee's death occurs, or his/her spouse dies, and terminating on the first day of the month in which the child either dies or attains the age of 18 years, or, if attending college, under or attaining the age of 23 years, whichever event first occurs. The monthly benefit shall be proportionately allocated to each remaining child and monthly pension benefit that was then being paid to the police employee or probationary police employee, he/she been qualified to receive benefits, as provided under the pension plan and as determined as of the date on which the police employee or probationary employee's death occurred; provided, however, that the aggregate payment of all monthly benefit that was being paid or which would have been payable to the police employee or probationary employee's surviving spouse, if one would have survived or qualified.
C. 
As each child ceases to be eligible for the pension benefit provided herein, that child's share will become payable to the remaining children who do qualify hereunder. It is understood that the monthly benefit formally paid to the guardian of the estate for a dependent child who either dies or has attained the age of 18 years, or if attending college the age of 23 years, will then be divided among the remaining surviving children who are then eligible for such benefits in order that the monthly benefit of the remaining dependent children will increase equally, provided that no such increased benefit may exceed the monthly pension which would be payable hereunder. The aggregate monthly dependent child benefit shall not exceed the monthly spousal benefit that either had been paid to the spouse or would have been payable.
D. 
The surviving spouse of a member of the police force who dies before his/her pension has vested or if no spouse survives or if he or 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 value of the member's investments in the pension fund, unless the member has designated another beneficiary for this purpose.
E. 
In the case of payment of pensions to families of members killed in service, the amount and commencement of the payments shall be paid by the Commonwealth of Pennsylvania pursuant to the terms and conditions of Act 51.[1]
[1]
Editor's Note: Act 51 of 2009. See 53 P.S. § 891.
F. 
Further, if, at the time of the police employee's or probationary police employee's death, the spouse of the police employee or probationary police employee is "with child," this child thereafter born to the spouse will be considered a dependent child from the date of his/her birth, and such child will be eligible for inclusion in the monthly benefit hereunder provided.
If a police employee or probationary police employee is not survived by a spouse or children and the death benefits payable pursuant to the provisions hereof leave remaining additional contributions made by the police employee or probationary police employee in the plan or retirement fund that have not been distributed prior to the police employee's or probationary police employee's death, the aggregate of all contributions made by the police employee or probationary police employee prior to his/her death with the interest thereon computed at the rate of 4% per annum, compounded annually from the plan year of deposit to the excess of such contribution with interest at the police employee or probationary police employees his/her spouse or children as of the date of his/her death or the cessation of the spouse's or children's benefits, whichever is last to occur.
The Township shall provide and keep on file forms for the police employee to designate his/her beneficiary for this pension plan.
A. 
If the police employee or probationary employee terminates his/her employment with the Township, or otherwise ceases to be a member of the Department of the Police of the Township, whether by reason of his/her transfer to another Department of Police or employer, resignation, discharge, firing or for any other reason prior to vesting as is hereinafter provided, and unless an authorized leave of absence is duly approved by the Supervisors, the police employee or probationary police employee will be entitled to a refund of all contributions computed at the rate of 4% per annum, compounded annually and calculated with regard to the police employee's or probationary police employee's contribution in which manner as to disregard fractional pension plan years during which the police employee's or the probationary police employee's contributions may have been held in the police pension and retirement fund.
B. 
A police employee who has been employed by the Township and has 12 years of continuous service as a police employee with the Township shall be vested under this pension plan. Should a police employee terminate his/her employment with the Township or otherwise cease to be a member of the Department of Police of the Township following the completion of the requirements for retirement, that is, before completing the superannuation retirement age and service requirements, or of satisfying the disability provisions hereunder before set forth, that police employee may not withdraw his/her contribution and interest accrual thereon without the expressed written consent of the Board of Supervisors. A police employee will then be eligible to receive benefits under the plan and from the retirement fund upon the date at which the employee shall have satisfied superannuation age and service requirements. The benefits paid hereunder will be a partial superannuation retirement allowance determined by applying the percentage his/her year of service bears to the years of service which he/she would have rendered, had the police employee continued to work until his/her superannuation retirement date to the gross pension, using the monthly average salary as a police employee of the Township during his/her termination of employment. The benefits hereunder are those as authorized by the amendment of December 7, 1979, Act No. 1979-99, P.S. § 711.[1]
[1]
Editor's Note: See 53 P.S. § 771.
A. 
Administration. The police pension fund shall be under the direction of the governing body of this municipality or such committee or persons as the governing body of this municipality may from time to time designate by resolution, who shall act as Trustees of the pension fund, and such Trustees shall have full responsibility for the administration of the program established hereunder and shall hold, invest, reinvest and distribute all funds or other property received pursuant hereto in trust for the purposes of this article. The Trustees may receive at any time and from time to time gifts, grants, devises or bequests to the pension fund of any money or property, real, personal, or mixed, to be held by them in trust for the benefit of this fund in accordance with the provisions hereof. The Trustee shall have full power and authority by a majority action of its members either directly or through their designated representative, to all acts, execute, acknowledge and deliver all instruments and exercise for the sole benefit of the participants hereunder, any and all powers and discretions necessary to implement and effectuate the purposes of this article, including for purposes of illustration, but not limited to any and all of the following:
(1) 
To hold, invest and reinvest all funds received pursuant to this article, in such legal investments as may be authorized as legal investments under the laws of the Commonwealth of Pennsylvania;
(2) 
To enter into contracts of deposit agreements on behalf of this municipality with one or more insurance companies, in order to provide the pension and other benefits herein set forth, and to pay the premiums and deposits required by the purchase of said contracts;
(3) 
To retain or purchase as an investment any form of annuity or contracts of similar nature, and to exercise with respect thereto any right or incident of ownership;
(4) 
To retain any property which may at any time become an asset of the fund, as long as said Trustee may deem inadvisable; and
(5) 
To make distribution of the monies in the fund, in accordance with the terms of this article;
(6) 
To make, execute and deliver, as Trustees, with provision for no individual liability all instruments in writing necessary for the exercise of any of their powers;
(7) 
To employ a bank or trust company as their agent, to act as custodian and/or manage part or parts, or the whole of the investments of the Trust; nothing herein contained shall be construed as requiring the Trustees to employ any bank or trust company as custodian or agent; and the Trustees shall not be liable for any loss resulting from the acts or omissions of such agent or for acting upon the advice of such agent or for failing to act in the absence of any such advice;
(8) 
To register securities in the name of a nominee or nominees. The Trustees may invest and reinvest the assets of this Trust in such a manner and at such times as the Trustees may deem advisable and proper. It is the intention of the employer that the Trustees shall have absolute discretion in the matter of the selection of securities or other property in which the trust assets shall be invested from time to time. Securities or other property, as used herein, shall be deemed to include, specifically, stocks, either common or preferred, mutual funds, annuity contracts or other fixed or variable, notes, bonds, debentures, mortgages, junior mortgages and/or other securities of any kind whatsoever, ground rents, real and/or leasehold property, although any of the above may not be legal investments for trust funds under the laws applicable thereto, and even though such securities or other property may not be commonly considered as appropriate investments for trust funds. The Trustees shall be under no obligation to diversify.
B. 
A Trustee may be a participant under the fund, but no discrimination, rights or privileges shall result from this relationship. In any matter pertaining to his/her own particular participation, the Trustees shall be disqualified to act upon the particular matter. This matter shall be resolved by the remaining Trustees.
C. 
Any Trustee may be removed by the Board of Supervisors upon 30 days' written notice to such Trustee. Any Trustee may resign from the fund upon giving 30 days' written notice. There may, at any given time, be one Trustee or any number of Trustees. When a vacancy occurs, the Board shall forthwith appoint a successor Trustee. Any person or entity so appointed shall become a Trustee upon the filing of his/her acceptance in writing. If he/she is removed or resigns, a Trustee shall, immediately upon the request of the Board or any other Trustee, execute all documents necessary to transfer the fund assets to any successor Trustee or Trustees. Any successor Trustee or Trustees shall have and exercise all the powers and authority, discretionary and otherwise, herein conferred upon the original Trustees, shall be bound by the obligations and duties herein imposed upon the original Trustees, and shall be entitled to all the privileges, exculpation, indemnity and immunities hereby granted to the original Trustees.
D. 
Is it intended that this fund not be administered under the supervision of any court, but the Trustees shall not be prevented from requesting a court or appropriate jurisdiction to supervise this fund.
No benefit payable at any time under the Trust, prior to receipt thereof by the participant, shall be subject in any manual to alienation, sale, transfer, assignment or pledge; nor to attachment or encumbrance of any kind, nor shall any retirement benefit, until actually paid to the participant, be in any manner liable for or subject to the debts or liability of said participant entitled to any retirement benefit. Any attempt to alienate, sell, transfer, assign, pledge or otherwise encumber any such benefit, prior to receipt thereof by the participant, in violation of the restrictions set forth in the preceding sentence shall be void. If a participant shall attempt to or shall alienate, sell, transfer, assign, pledge or otherwise encumber his/her benefits payable under the Trust or any part hereof, or, if by reason of his/her bankruptcy or other event happening at any time, such benefits should devolve upon anyone else or could not be enjoyed by him, then the Trustees, in their discretion, may terminate his/her interest in any such benefits and hold or apply it to or for the benefit of such person, his/her spouse, children or other dependents, or any of them, in such a matter as the Trustees may deem proper.
In the event that benefits payable hereunder are unclaimed for six years, and the whereabouts of any person entitled to such benefits are not known to the Trustee, such benefits will be forfeited.
In case any provision of this fund shall be held illegal or void, such illegality or invalidity shall not affect the remaining provisions of this Trust but shall be fully severable, and the fund shall be construed and enforced as if said illegal or invalid provisions had not been inserted herein.
A. 
Eligibility. Effective immediately, members of the Warwick Township Police Department who have not retired prior to the implementation of the DROP program may enter into DROP on or after their normal retirement date.
B. 
Written election. A member of the Police Department electing to participate in the DROP must complete and execute a DROP Option Form prepared by Warwick Township, which shall evidence the member's participation in the DROP. The form must be signed by the member, notarized and submitted to the Township at least 30 days prior to the date on which the member wishes the DROP option to be effective. The DROP option notice shall include an irrevocable notice to the Township, by the member, that the member shall resign from employment with the Warwick Township Police Department effective on a specific date (the "resignation date"). In no event shall the resignation date be shorter than 12 months or longer than 60 months from the execution of the DROP option form. An 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 addition, all retirement and requisite pension documents required by the Township must be filed and presented to the Township administration for approval of retirement and payment of pension. Once a retirement application has been approved by the Board of Supervisors and/or the Trustee, it is irrevocable.
C. 
Limitation of 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.
D. 
Benefit calculation. For all pension 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 Warwick Township Police Pension Plan. 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 members shall increase only as a result of a cost of living increase as provided for in § 23-15C.
E. 
Payments to the DROP account. The monthly retirement benefits that would have been payable had the police officer elected to cease employment and receive a normal retirement benefit shall, upon the police officer commencing participation in DROP, be paid into the separate account established to receive the participant's monthly pension payments. This account shall be designated the DROP account. An individual officer's DROP account shall be a self-directed investment vehicle, with the officer having exclusive control over the investment of his or her DROP account monies. The Township accepts no responsibility and makes no guarantee for the performance of any investments made by the officer, nor shall the Township guarantee or be required to guarantee that an officer's DROP account generate a specific amount of earnings or income or any earning or income at all. Any investment losses occurring in an officer's DROP account shall be solely the responsibility of the officer, and the Township assumes no liability or responsibility for same.
F. 
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 and the buyback of accrued, but unused, sick or vacation time. Prior to participating in the DROP program, an officer may request payment for any accrued but unused sick or vacation time for which the Township would contractually be obligated to buy back from the officer upon retirement. An officer may utilize leave time during the DROP period, but the Township shall not be contractually obligated to buy back any such unused leave time at the end of the DROP period.
G. 
Payout. Upon the resignation 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 member's beneficiary, if applicable, shall be paid to the member or beneficiary and shall no longer be paid to the member's DROP account. These benefits shall be paid to the member no later than 30 days following the resignation or termination date and shall be paid to the member in a single lump sum payment or at the member's option, in any fashion permitted by law.
H. 
Disability during DROP. If a member becomes temporarily disabled during his participation in DROP, the member shall receive disability pay in the same amount as disabled police officers who are not participating in DROP. In no event shall a member on temporary disability have the ability to draw from his DROP account. However, notwithstanding any other provision in this subsection, if an officer is disabled and has not returned to work as of the date of his required resignation or per the CBA, then such resignation shall take precedence over all other provisions herein, and said officer shall be required to resign. Nothing contained in the 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.
I. 
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.
J. 
Forfeiture of benefits. Notwithstanding an officer's participation in the DROP plan, an officer who is convicted 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.
K. 
Account manager. The DROP participant shall be solely responsible for the administration of his or her individual DROP account. The Township shall not be responsible for any investment loss 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.
L. 
Cost of management for DROP program. Any costs or fees associated with the management of the DROP accounts shall be paid directly from the individual DROP accounts. Under no circumstances shall any such costs or fees be paid by the Township or by the pension plan itself.
M. 
Amendment. Any amendments to the DROP program shall be consistent with the provision covering deferred retirement option plans set forth in any applicable 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 plan may only be amended by a written instrument, not by any oral agreement or past practice.
N. 
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.
O. 
Severability. The provisions of DROP shall be severable, and if any or all of its provisions shall be held to be unconstitutional or illegal, the validity of any remaining provisions of DROP shall not be affected thereby. In the event that the DROP provision is declared invalid or illegal by a court of jurisdiction or through an administrative determination of the Office of the Auditor General, the Police Benevolent Association shall have the right to bargain in accordance with Act 111 over deletion of this benefit. It is expressly understood that this shall not involve bargaining over a replacement provision.
P. 
If the Office of the Auditor General, at any time, finds the DROP plan to be invalid, it shall either be revised to conform to the requirements of the Auditor General or, if that is not possible, it (DROP program) shall be terminated. In the event of such a termination, all members shall be considered retired/terminated from employment on the date they became members of the DROP program, and all funds contained in the DROP accounts shall be paid to the member in accordance with the provisions contained herein.
The fund agreement shall be construed according to the laws of the State of Pennsylvania, where it is made and where it shall be enforced.
A. 
If any section, paragraph, subsection, clause or provision of this article shall be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of this article as a whole or any part thereof.
B. 
All ordinances or parts of ordinances inconsistent herewith are hereby repealed.
C. 
The article, upon enactment, replaces and supersedes all previous versions. This article shall be effective five days after enactment.