[Adopted 12-8-1958 by Ord. No. 369, approved 12-10-1958; amended
in its entirety 12-29-2003 by Ord. No. 709, approved 12-29-2003]
This article hereby codifies all prior and existing
ordinances and resolutions relating to the Police Pension Fund, hereinafter
referred to as the "fund," of the Borough of Wilson, so that henceforth
all rights and pensions for full-time members of the police force
shall be governed by this article.
A Police Pension Fund is hereby established
for the Borough of Wilson, County of Northampton, Commonwealth of
Pennsylvania, to be administered by the Borough Council or such agency
as may be created by the Council. The funds and property of the existing
Police Pension Plan (hereinafter called the "plan") shall be administered
under the terms of this article.
As used in this article, the following terms
shall have the meanings indicated:
The average monthly salary of the employee at any time of
reference computed over the last 36 months (or such shorter period
as represents the member's total period of employment by the Borough)
of his employment by the Borough prior to such date of reference.
For purposes of computing average monthly compensation, average monthly
salary shall include all earnings (shown as earnings in Pennsylvania)
as reported to the Internal Revenue Service on Form W-2. Average monthly
compensation shall include pickup contributions (if any), paid for
the member by the Borough pursuant to § 414(h) of the Internal
Revenue Code, any disability insurance benefit payments and any elective
salary deferrals made by the member pursuant to § 457 or
125 of the Internal Revenue Code.
A police officer's death contracted in the actual performance
of the officer's duties and without fault, neglect or misconduct on
the officer's behalf.
This plan shall apply to existing and future
full-time or regular members of the police force of the Borough who
work for a stated salary or compensation; it does not apply to part-time
or special policemen. Upon becoming a member of the fund, each officer
and member of the police force shall, in writing, authorize the Borough
to deduct from his pay the appropriate per centum as provided herein
as his contribution into the fund and shall designate a beneficiary
or beneficiaries to whom payments shall be made in the event of such
member's death while a member of the police force and of the fund,
and he shall further stipulate and agree that he shall be bound by
the provisions of the law pertaining to the fund and of this article
and of any future ordinances or statutes pertaining thereto.
A full-time policeman who shall receive honorable
discharge by reason of age and service shall be entitled to a pension
commencing on the first day of the month following his 50th birthday,
provided such member shall have completed 25 years of credited service
in the Borough, and ending on the first day of the month in which
he dies. The benefits are hereinafter set forth.
The normal monthly pension or retirement benefit
shall be equal to 1/2 the member's average monthly compensation during
the last 36 months of employment, continuing for life, in equal monthly
payments. The fund shall be derived from:
A.
Contributions from the salaries of each officer and
member of the police force, which contribution shall not be in excess
of 8% of his compensation, and in the event payments by members are
reduced below 5%, or eliminated, contributions by the Borough will
not be required to keep the fund actuarially sound;
B.
Any sum or sums paid to the Borough and inuring to
the fund from any official or department of the Commonwealth of Pennsylvania
under any present or future law providing therefor;
C.
Any money or property, real, personal or mixed, or
any other appropriations which the Borough may by gift, grant, devise
or bequest receive for the benefit of the fund;
D.
Any and all contributions that may be lawfully made
by the Borough to the fund; and
E.
Receipts from investments of said fund.
Should a police officer, before completing superannuation
retirement age and service requirements but after having completed
12 years of total service, for any reason cease to be employed as
a full-time police officer by the Borough, and who is a member of
the pension fund, he shall be entitled to vest his retirement benefits
by filing with Council within 90 days of the date he ceases to be
a full-time police officer a written notice of his intention to vest.
Upon reaching the date which would have been his superannuation retirement
date if he had continued to be employed as a full time officer, he
shall be paid a partial superannuation retirement allowance determined
by applying the percentage his years of service bears to the years
of service which he would have rendered had he continued to work until
his superannuation retirement date to the gross pension; using, however,
the average monthly compensation during the appropriate period prior
to his termination of employment.
A member may continue employment after attaining
normal retirement date, if requested to do so by Borough Council,
and the member voluntarily agrees to do so. Such members as are retired
shall be subject to service, from time to time, as a police reserve,
in cases of riot, tumult or preservation of the public peace until
unfit for such service, when they may be finally discharged by reason
of age or disability. The retirement benefit shall be based on the
average monthly compensation during the last 36 months of employment
by the Borough.
A.
Should an officer or member of the police force be
discharged or voluntarily withdraw from the police force, or for any
reason whatsoever be ineligible to receive a pension after having
contributed to the fund, he shall be entitled to a refund of all money
paid by him into the fund together with 4% of all interest earned
by such monies while in the fund, as determined by Borough Council,
less any amounts which have been paid to him from the fund by pension
or otherwise, and he shall be excluded from further participation
in the fund and shall have no further rights therein. If such ineligibility
is due to nonservice disability or nonservice death prior to retirement,
such monies shall be paid to the police officer or, in case of death,
to a designated beneficiary or to his estate.
B.
In the event of permanent injury or disease contracted
in the actual performance of his duties, and without fault, neglect
or misconduct on his part, which prevents the police officer from
performing his duty as a police officer, benefits shall become payable
to the police officer at a rate equal to 50% of the officer's average
monthly compensation, provided that any police officer who receives
benefits for the same injury under the Social Security Act (49 Statutes
620, 42 U.S.C.A. § 301 et seq.) shall have the disability
benefits offset or reduced by the amount of such benefits.
(1)
"Total and permanent disability" means a physical
or mental condition of a member resulting from bodily injury or disease
or mental disorder which renders him incapable of engaging in any
gainful employment.
(2)
A police officer who has indicated his desire to retire
on disability pay and is found eligible for disability payments as
set forth above shall receive a monthly pension for the remainder
of his life, or until sooner reinstated as an active member of the
police force, provided, however, that if the police officer retiring
on disability shall be eligible for and receive workmen's compensation
benefits or other insurance benefits from Borough-owned policies for
such disease or injury, and if such workmen's compensation and other
insurance benefits shall exceed the amounts set forth herein for disability
payments, then no disability shall be made to the retiring member
until such workmen's compensation or other insurance benefits shall
have been exhausted. In the event such workmen's compensation benefits
or other insurance benefits from Borough-owned policies for such disease
and injury are payable but do not exceed the monthly service related
disability pension payment, then each disability pension payment hereunder
shall be reduced by the amount of such workmen's compensation or other
insurance benefits.
(3)
The determination as to the existence and the continuance
of the disability shall be made by one or more qualified physicians
appointed by the Borough Council. A disabled member may be required
to submit to a physical examination to prove the existence of disabilities
and every six months may be required to submit to a physical examination
to prove its continuance.
C.
Survivor benefits shall accrue to widows and certain
minor children of members who are entitled to benefits by reason of
age and service or disability as follows:
(1)
The surviving spouse of a member of the police force
or a member who retires on pension who dies or, if no spouse survives
or if he or she survives and 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 a member of the police force
or a member who retires on pension who dies, shall, during her lifetime
in the case of a surviving spouse or until reaching the age of 18
years or, if attending college, under or attaining the age of 23 years
in the case of a child or children, be entitled to receive a pension
calculated at no less than 50% of the pension the member was receiving
or would have been receiving had he been retired at the time of his
death.
(2)
The surviving spouse of a member of the police force
who dies before his 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
investment in the pension fund unless the member has designated another
beneficiary for this purpose.
(3)
For the purposes of this article, the phrase "attending
college" shall mean the eligible children are registered at an accredited
institution of higher learning and are carrying a minimum course load
of seven credit hours per semester.[1]
[1]
Editor's Note: Former Subsection C(4), Killed-in-service death
benefit, added 7-13-2009 by Ord. No. 749, approved 7-13-2009, which
immediately followed this subsection, was repealed 11-28-2011 by Ord.
No. 758, approved 11-28-2011.
D.
When beneficiaries
entitled to receive benefit.
[Added 7-13-2009 by Ord. No. 749, approved 7-13-2009]
(1)
The beneficiaries (as defined in this Subsection D) of a police officer shall be entitled to receive a benefit if a police officer dies:
(a)
After
he/she has begun receiving benefits under a normal retirement benefit;
or
(b)
After
he/she has begun disability retirement benefits, provided that such
benefits did not terminate to his/her death benefits because he/she
ceases to be disabled; or
(c)
While
still employed by the Police Department and having met the age and
service requirements for normal benefits; or
(d)
Prior
to commencement of any retirement benefit under this section and was
vested in his/her accrued benefit.[2]
[2]
Editor's Note: Former Subsection D(2), regarding the killed-in-service
death benefit, which immediately followed this subsection, was repealed
11-28-2011 by Ord. No. 758, approved 11-28-2011.
A.
The Borough Council agrees to contribute the payments
made by the State Treasurer to the municipality from the monies received
from taxes paid upon premiums by foreign casualty insurance companies
for purposes of pension, retirement, death or disability benefits
for policemen which shall be used as follows to reduce the unfunded
liability or, after such liability has been funded, to apply against
the annual obligation of the municipality for future service costs
or, to the extent that the payment may be in excess of such obligation,
to reduce the member's contributions. It shall be the duty of the
Borough Council to apply such payments as set forth above.
B.
Each year, an actuarial study shall be made to determine
the contributions to be made to the fund so as to maintain the plan
on an actuarially sound basis, From the results of the actuarial study,
the Council shall by ordinance or resolution, determine the amount
to be contributed by the members and the Borough, if any.
In addition to the benefits received under this
plan, Council at its December meeting of each year shall act on whether
or not a cost-of-living increase shall be granted for members of the
police force receiving retirement benefits; provided, however, that
if such cost of living is granted, it shall not exceed the percentage
increase in the consumer price index from the month in which the police
member last worked; provided, further, that in no case shall the police
pension benefits exceed 75% of the average monthly salary for computing
return of benefits; and provided, further, that the total cost of
living increase shall not exceed 30%. No cost of living increase shall
be granted which would impair the actuarial soundness of the police
pension fund.
All the funds of this plan shall be held by
a trustee or trustees appointed by the Borough Council, in trust,
under a trust agreement which shall be a part of this plan for use
in providing the benefits of this plan. No part of the corpus or income
of the Trust shall be used for or diverted to purposes other than
the exclusive benefit of the members and contingent annuitants of
this plan prior to the satisfaction of all liabilities under the plan
with respect to such persons. No person shall have any interest in
or right to any part of the earnings of the trust or any part of the
assets thereof; except as and to the extent expressly provided in
this plan and in the trust agreement.
A Pension Board consisting of three members
of the Borough Council, namely, the Chairman of the Police Committee,
the Chairman of the General Government Committee, and one at-large
member selected by Borough Council, one member of the police force
elected by the members of the Police Association, and one person who
is an elector of the Borough but not a member of the Council or the
police force, such fifth member to be appointed by the Mayor of the
Borough, shall administer this plan in accordance with its terms and
with such powers as herein described. Any member of the Board may
resign at any time by giving written notice to the other Board members.
A.
The Board shall administer the plan in accordance
with its terms and shall have all powers necessary to carry out the
provisions of the plan. The Board shall interpret the plan and shall
determine all questions arising in the administration, interpretation,
and application of the plan. Any such determination by the Board shall
be conclusive and binding on all persons. The Board shall appoint
a chief administrative officer to handle the day-to-day administration
of the plan.
B.
The Board shall act by a majority of its members at
the time in office and such action may be taken either by a vote at
a meeting or in writing without a meeting. The Board, with Borough
Council approval, may authorize any one or more of its members to
execute any document or documents on behalf of the Board, in which
event the Board shall notify the Trustees in writing of such action
and the name or names of its member or members so designated. The
Trustees thereafter shall accept and rely upon any document executed
by such member or members as representing action by the Board until
the Board shall file with the Trustees a written revocation of such
designation. The Board may adopt such bylaws and regulations as it
deems desirable for the conduct of its affairs, and may appoint such
accountants, actuaries, counsel, specialists, consultants and other
persons as it may deem necessary or desirable in connection with the
administration of this Plan. The Board shall be entitled to rely exclusively
upon, and shall be fully protected in any action taken by it in good
faith in relying upon, any opinions or reports which shall be furnished
to it by any such accountant, actuary, counsel or other consultants.
C.
The Board shall adopt from time to time tables for
use in all actuarial calculations required in connection with the
Plan and shall establish from time to time the rate or rates of interest
which shall be used in all actuarial calculations required in connection
with the plan. As an aid to the Board in adopting tables, the consultant
appointed by the Borough shall evaluate the assets of the plan annually,
shall make such actuarial valuations of the contingent assets and
liabilities of the plan as the Board may require, and shall certify
to the Board the tables and rates of contributions which such consultants
recommend for use by the Borough.
The Board shall keep a record of all its proceedings
and acts, and shall keep all such books of account, records and other
data as may be necessary for the proper administration of the plan.
The Board shall notify the Trustee and the Borough Council of any
action taken by the Board and, when required, shall notify any other
interested person or persons.
The members of the Board shall serve without
compensation for services as such, but all expenses of the Board shall
be paid by the Borough in such manner as the Borough shall determine.
Such expenses shall include any expenses incident to the functioning
of the Board, including but not limited to fees of accountants, actuaries,
counsel, consultants and other specialists and any other costs of
administering the plan. Investment expenses shall be paid from the
plan assets.
No member of the Board shall incur any liability
for any action or failure to act excepting only liability for his
own gross negligence or willful misconduct. The Borough Council shall
and does hereby indemnify each member of the Board against any and
all claims, losses, damages, expense and liability arising from any
action or failure to act, except when the same is judicially determined
to be due to the gross negligence or willful misconduct of such member.
In addition, the Board and any member or agent thereof shall be fully
protected in relying upon the advice of any accountant, actuary, counsel
or consultant appointed by the Board or the Borough Council.
A.
Any member of the police force who has been a regularly
appointed employee 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 employment record for pension or retirement benefits
all of the time spent by him in such military service, if such person
returns or has heretofore returned to his employment within six months
after his separation from the service.
B.
The police pension fund shall provide full service
credit for each year of military service or fraction thereof, not
to exceed five years, to any member of the police force who was not
employed by the political subdivision or regional police department
prior to such military service, The amount due for the purchase of
credit for military service other than intervening military service
shall be computed by applying the average normal cost rate for the
Borough pension plan as certified by the Public Employee Retirement
Commission, but not to exceed 10%, to the member's average annual
rate of compensation over the first three years of municipal service
and multiplying the result by the number of years and fractional part
of a year of creditable nonintervening military service being purchased
together with interest at the rate of 4 3/4% compounded annually
from the date of initial entry into municipal service to the date
of payment.
C.
Any member of the police force shall be eligible to receive service credit for intervening or nonintervening military service as provided in Subsections A and B provided that he 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 nonactive 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).
No benefit under the plan shall be subject in
any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge, and any attempt so to do shall be void,
except as specifically provided in the plan, nor shall any such benefits
be in any manner liable for or subject to garnishment, attachment,
execution, levy or other legal process of the collection of debts
or liable for or subject to the debts, contracts, liabilities, engagements
or torts of the person entitled to such benefit. In the event Council
or its agency shall find that any member or beneficiary under the
plan has become incompetent, bankrupt or insolvent or that any attempt
has been made to anticipate, alienate, sell, transfer, assign, pledge,
encumber or charge any of his benefits under the plan, except as specifically
provided in the plan, then such benefit shall cease and terminate
and, in the event, Council or its agency shall hold or apply the same
to or for the benefit of such member or beneficiary, his spouse, children,
or other dependents, or any of them, in such manner as the Borough
Council may find proper from time to time.
Any officer or member of the police force aggrieved
by any ruling or action of the Police Pension Board or the Council
regarding the fund and his relation thereto shall have the right to
a hearing before Council to be held within 10 days, at his written
request therefor, at which he may attend in person and be represented
by counsel and may further require the attendance of any witnesses
on his behalf, by subpoena to be issued by the Borough Council on
his written request. Minutes and records shall be kept of the testimony
and of the facts produced, and Council may thereon make such order
and ruling in the matter as may seem just and lawful.
A.
Subject to the provisions hereinafter set forth, the
employer may at any time and from time to time modify, or amend, in
whole or in part, any or all of the provisions of this article and/or
trust agreement, including the method of financing the plan, provided
that:
(1)
No modification or amendment may be made which would
have the effect of depriving any retired member or contingent annuitant
receiving a retirement benefit or any benefits under the plan to which
he would otherwise be entitled by reason of the accumulated funds
held under this article at that time, unless such member or contingent
annuitant consents thereto; and
(2)
No such modification or amendment shall make it possible
for any part of the funds of the plan to be used for or diverted to
purposes other than for the exclusive benefit of members and contingent
annuitants under the plan prior to the satisfaction of all liabilities
with respect to them.
B.
Notwithstanding the foregoing, any modification or
amendments of this article may be made, retroactively if necessary,
which the employer may deem necessary or appropriate to make the plan
conform to the requirements of any law or governmental regulation
now or hereafter enacted or promulgated or to qualify such ordinance
and trust forming a part thereof as exempt under existing or future
federal, state or local income tax or estate tax laws and regulations.
This article represents codification of all
ordinances and resolutions of the Borough relating to the Police Employee
Pension Plan. Therefore, all ordinances, resolutions, or parts of
ordinances or resolutions conflicting with this article are hereby
repealed insofar as the same affects this article. All of the amendments
which are mandated by Act 30 of 2002 shall be considered granted as
of January 1, 2003.
