[HISTORY: Adopted by the Borough Council
of the Borough of New Hope as indicated in article histories. Amendments
noted where applicable.]
GENERAL REFERENCES
Police Department — See Ch. 40.
[Adopted 7-8-2003 by Ord. No. 2003-11]
As used in this article, the following terms
shall have the meanings indicated:
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
The Borough of New Hope, Bucks County, Pennsylvania.
All W-2 earnings paid by the Borough to the member during
a plan year.
The Council of the Borough of New Hope, Bucks County, Pennsylvania.
This article shall be effective January 1, 2003.
Any person in the full-time employ of the Borough whose customary
employment by the Borough is for not less than 35 hours per week.
The non-vested portion of a member's account.
All assets held by the trustee under the Trust Agreement
and related insurance and investment contracts relating to this Plan.
Any date later than normal retirement at which a member retires.
Any employee who has satisfied the eligibility requirements established in § 30-2 hereof.
Each member's individual account maintained within the Fund
to include the prorated share of investment earnings or losses.
The first day of the month coincident with or next following
the date on which the member completes seven years of service or the
date on which the member attains age 65.
The period of time at which end an employee is compensated
for his services to the Borough.
The Pension Plan for the Nonuniformed Employees of the Borough
of New Hope, as herein set forth and as the same may hereafter be
amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
The distribution amount transferred to the Plan by a member
from a qualified pension or profit sharing plan.
The aggregate of a member's total periods of employment as
a full-time employee of the Borough. If a member enters military service,
either voluntarily or by conscription, after he has been employed
for at least six months, such time spent in the armed forces of the
United States during a period of national emergency shall be counted
as service for purposed of this Plan, provided such member returns
to service with the Borough within six months after his discharge
or release from such active duty in the armed forces of the United
States. The time spent in military service due to voluntary extension
of such military service during a period of peacetime shall not be
included as service for the purpose of this Plan. Time spent on Reserve
or National Guard Training shall be included as service for purposes
of this Plan.
Any condition arising from illness or injury which precludes
an employee from performing the duties associated with the normal
occupation requirements of any position with the Borough as certified
by a physician designated by the Borough.
The contract between the Borough 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.
The Council of New Hope Borough or any other agency or person
appointed by the Council to serve in that capacity as set forth in
the Trust Agreement.
The nonforfeitable right to any immediate or deferred benefit
in the amount which is equal to the sum of Subsections A and B below:
The value on that date of that portion of the
participant's account that is attributable to and derived from a participant's
own contributions, if any.
The value on that date of that portion of the
participant's account that is attributable to and derived from employer
contributions multiplied by his vesting percentage determined on the
date applicable.
The member's nonforfeitable interest to his account plus
earnings thereon, computed in accordance with the following schedule
based on years of service with the Borough:
Service
(whole years)
|
Vesting Percentage
|
---|---|
Less than 3
|
0%
|
3
|
20%
|
4
|
40%
|
5
|
60%
|
6
|
80%
|
7 or more
|
100%
|
A.
All persons who are employees (as defined in this
plan) as of the effective date hereof shall be a member as of the
effective date.
[Amended 6-13-2007 by Ord. No. 2007-08; 11-20-2018 by Ord. No. 2018-01]
B.
Any person who becomes an employee after January 1,
2022 shall become a member on the first day of their full-time employment.
[Amended 6-14-2005 by Ord. No. 2005-7; 1-18-2022 by Ord. No. 2022-01]
A.
Borough contributions. The Borough shall contribute
an amount equal to the fixed percentage of his compensation for such
plan year, as has been established by the Council and which may, from
time to time, be changed by the Council. The applicable rate prior
to January 1, 2022 shall be 3%. As of January 1, 2022, the applicable
rate shall be 5%. Should the Borough, for any reason, fail to make
a contribution as provided for herein, then such deficiency shall
be made up in subsequent years. The Borough, at its own discretion,
may contribute more than the fixed percentage. However, any additional
contributions would be distributed on an equal basis.
[Amended 1-18-2022 by Ord. No. 2022-01]
B.
Member contributions. Members shall pay into the fund
at the rate of 1.5% of compensation. Effective July 1, 2003, members
shall be required to contribute an amount equal to 3% of compensation
on the last day of each pay period. Such contributions will be by
payroll deductions.
C.
Rollovers and transfers. The trustee may receive on
behalf of a member all or part of the entire amount of any distribution
from a terminated pension or profit sharing plan or any lump sum distribution
theretofore received by such member from a pension or profit sharing
plan meeting the requirements of Internal Revenue Code Section 401(a).
D.
State aid. The portion of the payments made by the State Treasurer to the Borough and designated by the Council to be allocated to the Nonuniformed Employee's Pension Fund from money received from taxes paid upon premiums by foreign casualty insurance companies shall be used to reduce or eliminate the Borough's contributions pursuant to Subsection A hereof and offset the payment of any administrative expenses.
E.
Other contributions. The fund shall be authorized
to receive by gift, grant, devise or bequest any money or property,
real, personal or mixed, in trust for the benefit of the fund. The
trustee shall be subject to such directions not inconsistent with
this plan as the donors of such funds and property may prescribe.
F.
Forfeiture. Forfeitures will remain assets of the Trust and, at the Borough's discretion, be used to reduce or eliminate future Borough contributions pursuant to Subsection A and/or reduce the administrative expenses to the plan and/or be reallocated to the member account in the proportion that an individual member's account balance (excluding rollover account balances) bears to the total of all member accounts.
G.
Accounting and allocations.
(1)
The Administrator shall establish and maintain an
account in the name of each member to which the Administrator shall
credit as of each anniversary date all amounts allocated to each such
member as hereafter set forth.
(2)
The Borough shall provide the Administrator with all information required by the Administrator to make a proper allocation of the Borough's contribution for each plan year. Within 45 days after the date of receipt by the Administrator of such information, the Administrator shall allocate such contribution to each member's account in accordance with Subsection A.
(3)
As of each anniversary date or other valuation date,
before allocation of Borough contributions, any earnings or losses
(net appreciation or net depreciation) of the Trust Fund shall be
allocated in the same proportion that each member's and former member's
nonsegregated account bear to the total of all members' and former
members' nonsegregated accounts as of such date.
(4)
Members' accounts shall be debited for any investment-related
expenses incurred within the plan.
A.
Normal retirement. A member who attains his normal
retirement age shall be considered fully vested. If a member retires
on his normal retirement date, he shall receive a distribution of
the vested value of his member account valued as of his normal retirement
date.
B.
Late retirement. A member may continue in the service of the Borough after his normal retirement age, and in such event shall retire on his late retirement date. Such member shall continue as a member under this plan until such late retirement date. The member shall have a vesting percentage as determined in § 30-1 hereof and shall receive a distribution of the vested value of his member account valued as of his late retirement.
C.
Disability retirement. A member who retires from the
service of the Borough due to a total disability shall have a vesting
percentage of 100% and shall receive a distribution of the entire
value of his member account valued as of his disability retirement
date.
A.
Death prior to retirement. If a member dies prior to the commencement of pension benefits, his designated beneficiary shall be entitled to the vested interest of the member's account determined pursuant to § 30-1 hereof and valued as of the end of the month during which death occurred. If no such beneficiary survives, the amount will be paid to the member's estate.
A.
Settlement options. Distributions may be made in a
lump sum, however, if not made in a lump sum, may be made over one
of the following periods (or a combination thereof):
B.
Joint and survivor annuity. Unless an optional form
of benefit is selected by a member and agreed to by the member's spouse,
the member's vested member account balance will be paid in the form
of a fifty-percent joint and survivor annuity.
A.
Distribution. As of a member's termination of employment,
he shall receive a distribution of his entire vested interest valued
at the end of the prior quarter during which termination occurred.
B.
Reemployment rights.
(1)
If the terminated member is rehired by the Borough
and re-enrolls in the plan within 12 consecutive months of termination,
he shall continue to participate in the plan as if such termination
had not occurred.
(2)
If a terminated member is rehired by the Borough and re-enrolls in the plan after a one-year break in service has occurred, years of service prior to the one-year break in service will be credited towards vesting percentage calculation as per § 30-1 hereof, provided that the terminated member who under the plan did not have a nonforfeitable right to any interest in the plan resulting from employer contribution and his consecutive one-year breaks in service did not equal or exceed the greater of (a) five or (b) the aggregate number of his prebreak years of service.
(3)
If a terminated member receives a distribution pursuant
to this section and is subsequently rehired and resumes employment
covered under this plan, prior to five consecutive one-year breaks
in service, his employer-derived forfeited account balance will be
restored only if he repays the full amount distributed to him before
the earlier of five years after the first date on which the member
is reemployed by the Borough or the close of the first period of five
consecutive one-year breaks in service commencing after distribution.
(4)
If a nonvested member terminates, he will be deemed
to have repaid the deemed distribution as of the date of reemployment.
A.
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 30-4, 30-5, 30-6 and 30-7, in accordance with the instructions received from the Council; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
B.
The Borough may employ an actuary, counsel, or other
professional consultants from time to time in connection with the
operation of the fund or of this plan. Such persons or entities shall
be compensated by the Borough at such rates as may be agreed upon
by the Council. Such compensation may be paid by the Borough.
C.
The trustee 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 Council may direct. The fair market
value of the fund shall be reported to the members at least annually.
A.
The plan shall be administered by the Council. The
Council shall make and adopt rules and regulations for the efficient
administration of the plan.
B.
The Council 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 the trustees, and any other professional whose services are employed pursuant to § 30-8B of this plan.
C.
The Council shall construe the plan, shall determine
any questions of fact arising under the plan and shall make all decisions
required of it under the plan and its construction thereof, and 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 Council shall act uniformly with respect to matters
coming before it concerning employees in similar circumstances.
D.
The Council shall serve without bond except as may
be otherwise required by law and without compensation for its services
as such.
E.
The members of the Council 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 Borough against all judgments not involving findings of their
respective personal or collective willful misconduct or gross negligence
and against all costs, including counsel fees, incurred in defense
of actions brought against them.
F.
The Council shall make available to members, retired
members and terminated members and to their beneficiaries, for examination
during business hours, such records as pertain to the person examining.
G.
To enable the Council to perform its functions, the
Borough shall supply full and timely information to it on all matters
relating to the pay of all members, their retirement, death, termination
of employment and such other pertinent facts as the Council may require.
H.
The Council shall enact such rules and regulations
for the conduct of its business and for the administration of the
plan as it may consider desirable, provided the same shall not be
in conflict with any of the provisions of the plan. All actions of
the Council shall be taken at meetings at which at least four members
shall be present, or by written resolution and any resolutions concurred
in by not less than four of its members shall be the action of the
entire Council. Written minutes shall be kept of the meetings and
actions of the Council.
I.
The President and Secretary, acting on behalf of the
Council, shall have the power to execute all documents necessary to
carry out the actions of the Council, and any person, partnership,
corporation or government agency shall accept such documents over
such signature or signatures as if executed by the Council.
A.
It is the expectation of the Borough that it will
continue this pension plan indefinitely and will from time to time
contribute to the fund such amounts as may be needed to provide the
benefits set forth in the plan; but continuance of the plan is not
assumed as an obligation of the Borough and the right is reserved
by the Borough at any time to reduce, suspend or discontinue its contributions
hereunder.
B.
The Borough assumed no obligation or responsibility
with respect to the operation of the plan and does not guarantee the
payment of the benefits provided for members of the plan. The Borough
shall have no liability with respect to the administration of the
fund, and payments made under the provisions of any resolution establishing,
amending, or maintaining the plan shall not be a charge on any other
fund in the treasury of the Borough or under its control, save the
Nonuniformed Employees' Pension Fund herein provided for.
C.
Nothing contained in the plan shall be held or construed
as a contract or guarantee of employment nor to create any liability
upon the Borough to retain any person in its service. The Borough
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 plan.
A.
The Borough may amend, curtail or terminate this plan
at any time, provided, however, that no amendment affecting the trustee
shall be made without its consent (other than an amendment having
the effect of termination of the plan); 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 members or their beneficiaries
(except upon termination such diversion may be made after all of the
fixed and contingent liabilities to members 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 member.
B.
In the event of termination of this plan, the Council
shall allocate the assets then remaining in the fund, to the extent
that such assets are sufficient, to members and retired members in
an amount equal to their respective member account balance reduced
in the cases of retired members by any prior distributions made to
them.
C.
After allocation of the funds, the Council shall determine
whether to operate the fund as the source of whatever payments the
money so allocated will provide.
A.
Encumbrance of benefits.
(1)
No benefit under this plan 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 members or member's beneficiary.
(2)
This provision shall not apply to a "qualified domestic
relations order" defined in Internal Revenue Code Section 414(p),
and those other domestic relations orders permitted to be so treated
by the Council under the provisions of the Retirement Equity Act of
1984. The Council shall establish a written procedure to determine
the qualified status of domestic relations orders and to administer
distributions under such qualified orders. Further, to the extent
provided under a qualified domestic relations order, a former spouse
of a participant shall be treated as the spouse or surviving spouse
for all purposes under this plan.
B.
Any person dealing with the trustee may rely upon
a copy of this plan and any amendments thereto certified to be a true
and correct copy by the trustee.
C.
Anything heretofore contained in this plan to the
contrary notwithstanding, it is the intention of the Borough that
any action herein provided to be taken by the trustee shall be taken
only in accordance with written instructions of the Council given
in such detail as to preclude the exercise by the trustee of discretion
in the performance thereof.
D.
Under no circumstances, whether upon amendment or
termination of this plan or otherwise, shall any part of the fund
be used for or diverted to any purpose other than the exclusive benefit
of members or their beneficiaries until all of the actuarial obligations
to such member or member's beneficiaries have been met.
E.
If the Council deems any person incapable of receiving
benefits to which he is entitled by reason of minority, illness, infirmity,
or other incapacity, it may direct the 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 therefore. Such
payment shall, to the extent therefor, discharge all liability of
the Borough, the trustee and the fund.
[Adopted 6-14-2005 by Ord. No. 2005-8]
A.
AGE
ANNIVERSARY DATE
AVERAGE APPLICABLE COMPENSATION
BOROUGH
CHIEF ADMINISTRATIVE OFFICER
COMPENSATION
COUNCIL
EARLY RETIREMENT DATE
EFFECTIVE DATE
EMPLOYEE
FUND
MEMBER
NORMAL RETIREMENT DATE
PLAN
PLAN YEAR
POLICE PENSION BOARD (sometimes referred to as the "BOARD")
SERVICE
TOTAL AND PERMANENT DISABILITY
TRUSTEE
As used in this article, the following terms shall
have the meanings indicated:
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
The average monthly earnings of the member at any time of
reference computed over the last 36 months (or such shorter period
as represents the member's total period of continuous employment by
the Borough prior to such date of reference). For purposes of computing
average applicable compensation, actual monthly salary shall include
base pay, longevity pay, night differential pay (if any) and overtime
pay, but shall exclude reimbursed expenses or payments in lieu of
expenses, nonsalary compensation (including fringe benefits), uniform
allowances, and buy back by the Borough of any unused sick days or
vacation time. Average applicable compensation shall include pickup
contributions (if any) paid for the member by the Borough under and
pursuant to Section 414(h) of the Internal Revenue Code and any elective
salary deferrals made by the member pursuant to Section 457 and/or
Section 125 of the Internal Revenue Code.
The Borough of New Hope, Bucks County, Commonwealth of Pennsylvania.
The person who has primary responsibility for the execution
of the administrative affairs of this pension plan, or the designee
of that person.
Based on earnings which include base pay, longevity pay,
night differential (if any), overtime pay and pickup contributions
pursuant to Section 414(h) of the Internal Revenue Code, but shall
exclude reimbursement expenses or payments in lieu of expenses, nonsalary
compensation (including fringe benefits), uniform allowances, and
buy back by the Borough of any unused sick days or vacation time.
Compensation shall include any and all elective salary deferrals made
by the member pursuant to Section 457 and/or Section 125 of the Internal
Revenue Code.
The Council of the Borough of New Hope.
The first day following the date on which the member completes
20 years of service.
This article shall be effective January 1, 2003.
Any sworn police officer in the full-time employ of the Borough
Police Department whose customary employment is for not less than
40 hours a week.
All assets held by the Trust under the Trust Agreement relating
to this Police Pension Plan.
Any sworn police officer in the full-time employ of the Borough Police Department who has satisfied the eligibility requirements established in Article II hereof and who is, at the time of reference, or has prior to their elimination, been making such contributions as may be required pursuant to § 30-15A hereof.
The first day following the date on which the member completes
25 years of service, and the date on which the member attains age
55.
The Police Pension Plan for the Borough of New Hope, as herein
set forth and as the same may hereafter be amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
A seven-member committee composed of three Council members
(appointed by the President of Council), one of whom is the Chairman
of the Police Committee, the Borough Mayor, the Chief of Police and
two other employees of the Police Department.
The aggregate of member's total periods of employment as
a full-time employee of the Borough. If a member enters military service,
either voluntarily or by conscription, after he has been employed
for at least six months, such time spent in the armed forces of the
United States during a period of wartime of general military conflict
shall be counted as service for purposes of the plan, provided that
such member returns to police service with the Borough within six
months after his discharge or release from such active duty in the
armed forces of the United States. The time spent in military service
due to voluntary extension of such military service during a period
of peacetime shall not be included as service for the purposes of
this plan. Time spent on Reserve or National Guard Training shall
be included as service for purposes of this plan.
Any condition arising from service-connected illness or injury
which precludes an employee from performing the duties associated
with the normal occupational requirements of a police officer as certified
by a physician designated by the Borough.
The Council of the Borough of New Hope or any other agency
or person appointed by such to serve in that capacity as set forth
in the Trust Agreement.
B.
Wherever applicable as used herein, unless the context
specifically provides otherwise, the singular and plural shall be
interchangeable, and the masculine and feminine pronoun shall include
either sex.
A.
Contributions by members.
(1)
The member shall pay into the fund at a rate of 5% of compensation. Compensation for this purpose shall be as defined in § 30-13 of this article. The Council may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members. Individual records of contributions by members shall be maintained, including all interest credited to his individual account. Interest to be credited shall be 2% compounded annually.
[Amended 11-17-2015 by Ord. No. 2015-06]
(2)
Interest shall be credited from the end of the plan
year in which paid to the last day of the month after which a refund
becomes payable.
B.
Refund of member's contributions. Any member who for
any reason shall be ineligible to receive a pension after having made
contributions shall be entitled to a refund of his individual account
balance; such refund is payable immediately upon discontinuance of
his employment with the police force or within a reasonable time (not
more than 45 days after discontinuance). If such discontinuance is
due to death, then such refund shall be paid to his designated beneficiary
or, in the absence thereof, to his estate. If a retired member, who
is receiving a benefit by reason of disability or retirement, dies,
and is not survived by a spouse, then the refund payable to the beneficiary
shall be equal to the individual account balance at the date of disability
or retirement, less any pension payments made to the member.
C.
Deposits. Contributions by members shall be remitted
to the trustee monthly.
D.
State aid. The portion of the payments made by the State Treasurer to the Borough and designated by the Council to be allocated to the Police Pension Fund from money received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement or disability benefits for policemen shall be used as follows: (1) to reduce the unfunded liability, or, after such liability has been fully funded, (2) to apply against the annual obligation of the Borough for future service costs, or to the extent that the payment may be in excess of such obligations, (3) to reduce member contributions pursuant to Subsection A hereof.
E.
Borough contributions. Subject to the provisions and
limitations set forth in other sections of this plan, the Borough
shall contribute the amounts certified to be necessary by the fund's
actuary to provide the benefits provided by this plan.
F.
Nonintervening military buy back.
(1)
The plan provides full service credit for each year
of military service or fraction thereof, not to exceed five years,
to a member who was not employed by the Borough prior to such military
service, payable by the member.
(2)
The member shall pay the amount for the purchase of
credit for military service, other than intervening military service,
which shall be computed by applying the average normal cost rate for
the plan as certified by the Public Employee Retirement Study Commission,
but not to exceed 10%, to the member's average annual rate of compensation
over the first three years of 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 service to the date of payment.
(3)
A member of the plan shall be eligible to receive
service credit for intervening or nonintervening military service,
provided that he is not entitled to receive, eligible to receive then
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 who is 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. Ch. 67 (relating to retired pay for nonregular
service).
G.
Other contributions. The fund shall be authorized
to receive by gift, grant, devise or bequest, any money or property,
real, personal or mixed, in trust for the benefit of the fund. The
trustee of the fund shall be subject to such directions not inconsistent
with this plan as the donors of such funds and property may prescribe.
A.
Normal retirement.
(1)
Each member may retire on or at any time after his
normal retirement date. Any member so retiring shall be entitled to
receive a monthly pension commencing as of the first day following
his date of actual retirement and ending with the payment made as
of the first day of the month in which his death occurs. The monthly
pension to which such retired member shall be entitled to under this
plan shall be equal to 50% of such member's average applicable compensation.
(2)
In addition to the monthly retirement benefit described
above, each member who has completed 26 years of service shall receive
an additional monthly pension benefit equal to a maximum of $100 per
month; each member who has completed 27 years of service shall receive
an additional monthly pension benefit equal to a maximum of $200 per
month; and each member who has completed 28 years of service shall
receive an additional monthly pension benefit equal to a maximum of
$300 per month.
[Amended 11-17-2015 by Ord. No. 2015-06]
B.
Early retirement benefit. Each member may retire on or at any time after his early retirement date. Upon termination, the member must file with the Secretary of the Borough a written notice of his intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit as computed in § 30-18A. The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission.
C.
Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any contributions required pursuant to § 30-15A hereof shall continue.
D.
Disability benefit. If a member retires because of
a total and permanent disability, he shall be entitled to receive
a pension benefit equal to 50% of his compensation at the time the
disability was incurred, offset by social security. The benefit will
commence on the first day of the month following the month in which
he retires. Council reserves the right to require disabled members
to present evidence of total and permanent disability and of the continuance
of such condition from time to time and reserves the right to require
members to submit to medical examinations by practitioner(s) selected
by the Council as a precondition to the continued payment of benefits.
A.
Death benefit if no surviving spouse nor dependent
children. If a member dies prior to the commencement of pension benefits,
then his designated beneficiary shall be entitled to a refund of his
accumulated member's contributions with credited interest. If no beneficiary
survives, then the refund is payable to the member's estate.
B.
Pension benefit to surviving spouse and dependent
children. If a member dies survived by a spouse or dependent children,
after having become eligible to receive a pension benefit [i.e., he
was eligible because (a) he was already receiving a pension (b) he
met the age and service requirements, but he had not yet retired],
then a monthly pension benefit shall be provided.
(1)
The amount of the monthly pension benefit shall be
50% of the pension the member was receiving or would have been entitled
to receive if he had been retired at the time of his death.
(2)
In the event a member dies after completing 12 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in § 30-18A. If a vested benefit is selected, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following the member's normal retirement date.
(3)
In the event a member dies after completing 20 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in § 30-16B. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit commencing on the first day of the month following the election of this benefit.
(4)
The monthly pension benefit is payable to the surviving
spouse until death then to surviving dependent children under the
age of 18 years or if attending college, under or attaining the age
of 23 years. 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.
Dependent children shall include stepchildren, adopted children, and
any child conceived before the time of the member's death and thereafter
born to the member's spouse.
C.
Preretirement survivor benefit. In the event a member is killed in service, the member's family shall receive the benefits provided for and subject to the terms of Act 51 of 2009, which benefits are paid exclusively by the Commonwealth of Pennsylvania with the exception of any pension benefit to which the member was entitled prior to the member's death, solely by virtue of the member's service as a Borough police office (i.e., either a normal, early, or vested pension benefit). It is understood that "family" shall refer to the surviving spouse and dependent children. The benefit is payable to the surviving spouse until death, then to the surviving dependent children under the age of 18 years, or if attending college, under or attaining the age of 23 years. The terms "dependent children" and "attending college" shall be consistent with that of § 30-17B of this article.
[Amended 7-19-2011 by Ord. No. 2011-07]
If a member leaves the employ of the Borough or ceases to be a member whether by reason of his transfer, resignation or discharge, or by reason of disability or retirement other than after becoming eligible for benefits pursuant to § 30-16 or 30-17 of this plan, he shall be entitled to a refund of all contributions made by him and then on deposit in the fund, plus interest thereon, computed at the rate described in § 30-15A. However, a member who has completed 12 or more years of service may elect either Subsection A or Subsection B as described below:
A.
He may elect to leave his contributions, plus interest in the fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Secretary of the Borough within 90 days of the date he ceases to be a full-time police officer, a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y) where (x) is the number of years of service at the date of termination and (y) is the number of years of service which the member would have had if he worked until normal retirement date, multiplied by the benefits described in § 30-16A. Years of service shall be measured in years and completed months.
B.
He may elect to receive a refund of all contributions made by him and then on deposit in the Trust Fund, plus interest thereon, computed at the rate described in § 30-15A. If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit outlined in Subsection A.
B.
The normal form of all benefits payable hereunder shall be a pension for the life of the member commencing on the date specified and ending with a payment made on the first day of the month in which the member dies, subject, however, to the payment of a death benefit calculated pursuant to § 30-17B.
A.
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 30-16, 30-17 and 30-18, in accordance with the instructions received from the Council, provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes.
B.
The Council may employ an actuary, investment advisors,
counsel, or other professional consultants from time to time in connection
with the operation of the fund or of this plan. Such persons or entities
shall be compensated by the Borough at such rates as may be agreed
upon by the Council. Such compensation may be paid from the fund.
C.
Investment manager.
(1)
The Council may, by an instrument in writing, appoint
one or more persons as an investment manager and may delegate to an
investment manager, from time to time, the power to manage and control
the investment of any plan asset. Each person appointed shall be:
(2)
Each investment manager shall acknowledge in writing
that it is a fiduciary with respect to the plan. The Council shall
enter into an agreement with each investment manager specifying the
duties and compensation of such investment manager and other terms
and conditions under which such investment manager shall be retained.
The Council shall not be liable for any act or omission of any investment
manager, and shall not be liable for following the advise of any investment
manager, with respect to any duties delegated to the investment manager.
(3)
The Council shall have the power to determine the
amount of fund assets to be invested pursuant to the direction of
a designated investment manager and to set investment objectives and
guidelines for the investment manager.
D.
Determination of fair market value.
(1)
The trustee 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 Council may direct.
(2)
The fair market value of the fund shall be reported
to the actuary who shall calculate the amount to be contributed to
the fund by the Borough with respect to each plan year in accordance
with the assumptions most recently adopted by the Council for the
purpose of such computations; provided, however, that the liability
of the Borough to make such contributions is subject to all of the
conditions and limitations set forth elsewhere in this plan.
A.
The plan shall be administered through a seven-person
Police Pension Board, herein referred to as the "Board." The Board
shall make and adopt rules and regulations for the efficient administration
of the plan.
B.
The Chief Administrative Officer (see definition as contained in § 30-13 of this article) shall (in conjunction with the plan trustee), keep all data, records, and other documents pertaining to the administration of this plan and shall execute all documents necessary to effectuate the provisions of the plan and shall provide all such data, records, and documents, to the plan trustee, the actuary and other professionals as may be required to implement and administer this plan.
C.
The Board shall construe the plan, shall determine
any questions or fact arising under the plan and shall make all decisions
required of it under the plan, and its construction thereof, and such
decisions 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 and 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 in similar circumstances.
D.
The Board shall serve without bond except as may be
otherwise required by law and without compensation for its services
as such.
E.
The members 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 municipality against all judgments not involving findings of
their respective personal or collective willful misconduct or gross
negligence and against all cost, including counsel fees, incurred
in defense of actions brought against them.
F.
The Board shall make available to members, retired
members and terminated members and to their beneficiaries, for examination
during business hours, such records as pertain to the person examining.
G.
To enable the Board to perform its function, the municipality
shall supply full and timely information to it on all matters relating
to the pay of all members, their retirement, death, termination of
employment and such other pertinent facts as the Board may require;
and the Board shall advise the trustee of such of the foregoing facts
as may be pertinent to the trustee's administration of the fund and
shall give proper instructions to the trustee for the carrying out
of the purposes of this plan.
H.
The Board shall enact such rules and regulations for
the conduct of its business and for the administration of the plan
as it may consider desirable, provided the same shall not be in conflict
with any of the provisions of the plan. All actions of the Board shall
be taken at meetings at which at least four members shall be present,
or by written resolutions concurred in by not less than four of its
members. Written minutes shall be kept of the meetings and actions
of the Board.
I.
The Board will meet at least semiannually to review
the plan administration, fund management, plan provisions and other
matters which from time to time may affect the plan. The Board will
present its findings and/or recommendations to the Council.
A.
It is the expectation of the Borough that it will
continue this Pension Plan indefinitely, and will, from time to time,
contribute to the fund such amounts as may be needed to provide the
benefits set forth in the plan.
B.
The provisions of any ordinance establishing, amending,
or maintaining the plan shall not be a charge on any other fund in
the Treasury of the Borough or under its control, save the Uniformed
Employee's Pension Fund herein provided for.
C.
Nothing contained in the plan shall be held or construed
as a contract or guarantee of employment nor to create any liability
upon the Borough to retain any person in its service. The Borough
reserves the full right to discontinue the service of any person without
any liability except for salary or wages that may be due and paid,
whenever in its judgment its best interests so require, and such discontinuance
shall be without regard to this plan.
A.
The Borough may amend this plan from time to time
as is necessary to maintain its actuarial soundness and to incorporate
changes in plan benefits or entitlements. However, no amendment shall
be made which will, in any manner, divert any part of the fund to
any purpose other than the exclusive benefit of members or their beneficiaries
(except that upon termination such diversion may be made after all
of the fixed and contingent liabilities to members 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 member or reduce
or eliminate a benefit to which a member has been given an expectation
by virtue of pension ordinance or pension calculations for retiring
officers who retired during the member's participation in this plan.
B.
In the event of termination of this plan, the Council
shall allocate the assets then remaining in the fund as follows:
(1)
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 30-15 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.
(2)
Contributions with interest at a rate established by the Council as provided in § 30-17 shall be refunded to any and all members who terminate service at the time of the termination of the fund.
A.
No benefit under this plan 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 member or member's beneficiary. This provision
shall not apply to a "qualified domestic relations order" defined
in Internal Revenue Code Section 414(p), and those other domestic
relations orders permitted to be so treated by the Council under the
provisions of the Retirement Equity Act of 1984. The Borough shall
establish a written procedure to determine the qualified status of
domestic relations orders to administer distributions under such qualified
orders. Further, to the extent provided under a qualified domestic
relations order, a former spouse of a member shall be treated as the
spouse or surviving spouse for all purposes under this plan.
B.
Any person dealing with the Borough may rely upon
a copy of this plan and any amendments thereto certified to be true
and correct by the trustee.
C.
In no circumstances, whether upon amendment or termination
of this plan or otherwise, shall any part of the fund be used or diverted
to any purpose other than the exclusive benefit of members or their
beneficiaries until all of the actuarial obligations to such member
or member's beneficiaries have been met.
D.
If the Council deems any person incapable of receiving
benefits to which he is entitled by reason of minority, illness, infirmity,
or other incapacity, it may make payment directly for the benefit
of such person, to the guardian or trustee for said person, whose
receipt shall be complete acquittance therefore. Such payment shall,
to the extent therefore, discharge all liability of the Borough, or
the fund.
E.
Should any provision of this plan be determined to
be void by any court, the plan will continue to operate and, to the
extent necessary, will be deemed not to include the provision determined
to be void.
F.
Headings and captions provided herein are for convenience
only and shall not be deemed part of the plan.
G.
This plan shall be construed and applied under the
laws of the Commonwealth of Pennsylvania where not in conflict with
federal laws which shall prevail.
H.
This article repeals all other ordinances prior to
the date of its enactment.
[Added 11-17-2015 by Ord.
No. 2015-06]
A.
Title. This section shall be known as the "New Hope Police Deferred
Retirement Option Plan."
B.
BOROUGH
DROP
DROP ACCOUNT
FUND or PLAN
PARTICIPANT
POLICE OFFICERS
Definitions. When used in this section, the below words shall have
the meaning indicated.
Borough of New Hope, Bucks County, Pennsylvania.
The Deferred Retirement Option Plan referred to in the collective
bargaining agreement between the New Hope Police Benevolent Association
and the Borough of New Hope.
Separate ledger account created to accept a DROP participant's
monthly pension benefit while a DROP participant, as well as any interest
thereon.
The Police Pension Plan.
A police officer who meets the eligibility for and has executed
the proper documents for participation in DROP and has had such application
approved by the Borough.
Police officers of the Police Department.
C.
Eligibility. Eligibility for the DROP shall be determined as follows:
police officers who have not retired prior to the implementation of
the DROP may enter into the DROP on the first day of any month following
completion of 25 years of credited service and attaining the age of
55.
D.
Written election. Eligible officers who wish to be participants in
the DROP must signify that intention in writing as follows:
(1)
A police officer electing to participate in the DROP must complete
and execute a DROP Participation Election Form and file it with the
Chief Administrative Officer at least 30 days prior to the date that
the employee is eligible to receive a normal retirement benefit under
the Plan, which shall evidence the member's election to participate
in the DROP. The form must be signed by the police officer and be
notarized and submitted prior to the date on which the member wishes
DROP participation to commence. The DROP Participation Election Form
shall include an irrevocable notice to the Borough, by the police
officer member, that the police officer shall resign from employment
with the Police Department effective on a specific date (the "resignation
date") that is no later than two years from the effective date of
the DROP Election Form. A police officer shall cease to work as and
may no longer be employed as a police officer on the officer's resignation
date, unless the Borough properly terminates or honorably discharges
the officer prior to the resignation date. A participant may resign
from employment while in DROP status, which shall terminate his/her
participation in the DROP.
(2)
In addition to the above information, the DROP Participation Election
Form shall also advise the employee of the following: a) an explanation
of the participant's rights and obligations while in DROP; b) that,
as a condition of DROP participation, the participant foregos active
participation in the Police Pension Plan and foregos any recalculation
of pension benefits to include salary increases occurring after DROP
participation commences; c) that, also as a condition of DROP participation,
the participant agrees to hold the Borough harmless for any financial
consequences, for example, tax or investment consequences, flowing
from any aspect of DROP participation, including, but not limited
to, the decision to participate in the DROP; and d) that the DROP
participant's service while in DROP will not count as pension service
nor will it entitle a participant to any service increment benefits
to which the participant was not entitled prior to commencing DROP
participation. A DROP participant must also complete any and all retirement
documents required by the Police Pension Plan Administrator, and such
documents must be filed and presented to the Borough for approval
of retirement and payment of pension. Once a DROP Participation Election
Form has been approved by the Borough, it is irrevocable. Likewise,
once a DROP participant enters the DROP, the participant may not subsequently
leave and then reenter the DROP, even if the employee separates from
employment and subsequently begins employment with the Borough again.
E.
Benefit calculation. For all pension plan purposes, continuous service
of a police officer 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 Borough Police Pension
Plan. The average monthly compensation of the police officer for pension
calculation purposes shall remain as it existed on the effective date
of commencement of participation in the DROP. Earnings or increases
in earnings thereafter shall not be recognized or used for the calculation
or determination of any benefits payable by the Pension Plan. The
pension benefit payable to the members shall increase only as a result
of cost of living adjustments in effect on the effective date of the
member's participation in the DROP or by applicable cost of living
adjustments granted thereafter.
F.
Pension contributions during DROP participation. A police officer
participating in the DROP shall not make any required pension contribution
during DROP service.
G.
Accumulation of 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, accumulate to the
benefit of that officer and be accounted for on that police officer's
DROP account. Participants shall not have the option of self-directed
investment of their individual DROP account while in the DROP. Instead,
the monies shall be invested in a fund to be identified and selected
solely by the Borough in accordance with applicable law so as to generate
a rate of return of no less than 0% and no more than 4.5%.
H.
Accrual of nonpension benefits. After a police officer elects to
participate in the DROP, all other contractual benefits shall continue
to accrue with the exception of those provisions relating to the Police
Pension Plan. However, either prior to participation in the DROP or
upon separation from employment, a participant may make a one-time
request for payment for any accrued but unused vacation or sick leave
time if the Borough is obligated to provide such payment upon the
participant's retirement pursuant to the provisions of the collective
bargaining agreement in effect at the time. A participant may utilize
leave time during the DROP period, but the Borough shall not be required
to buy back any such accrued and unused leave time at the end of the
DROP period if the participant elected payment for such time prior
to participation in the DROP.
I.
Payout. Upon separation from employment, the DROP payout options
available to the DROP participant shall be as follows:
(1)
The balance of the DROP participant's account, less withholding taxes,
if any, remitted to the Internal Revenue Service, shall be paid within
45 days of the receipt of the election form by the Plan from the account
to the participant or the participant's surviving beneficiary.
(2)
The balance of the DROP participant's account shall be paid within
45 days of the receipt of the election form, by the Plan from the
account directly to the custodian of an eligible retirement plan as
defined by Internal Revenue Code Section 402(c)(8)(b), or in the case
of an eligible rollover distribution to the surviving spouse of a
deceased DROP participant, an eligible retirement plan that is an
individual retirement account or an individual retirement annuity
as defined by Internal Revenue Code Section 402(c)(9).
(3)
If the DROP participant or beneficiary fails to make an election within 60 days following the date of termination of DROP participation, then the Borough shall implement Subsection I(1) above.
(4)
The form of payment selected by the DROP participant or surviving
beneficiary shall comply with the minimum distribution requirements
of the Internal Revenue Code of 1986. The terminating DROP participant
shall commence receipt of the monthly retirement benefit directly
starting with the first day of the month coincident with or next following
termination of employment with the Borough. The DROP shall at all
times comply with the annual benefit limitations of Internal Revenue
Code Section 415 and the regulations thereto.
J.
Service connected disability during DROP. If a DROP participant becomes
temporarily incapacitated due to a service-connected injury during
his participation in DROP, that police officer shall continue to participate
in the DROP as if fully employed. The police officer shall receive
disability pay in the same amount as disabled police officers that
are not participating in DROP. In no event shall a police officer
on temporary disability have the ability to draw from his DROP account.
However, notwithstanding any other provision in this subsection, if
a police officer is disabled and has not returned to work as of the
date of his required resignation, then such resignation shall take
precedence over all other provisions herein and said officer shall
be required to resign. Nothing contained in this Plan shall be construed
as conferring any legal rights upon any police officer or other person
to a continuation of employment nor shall participation in the DROP
supersede or limit in any way the right of the Borough to honorably
discharge a police officer based upon an inability to perform his
or her full duties as a police officer. If a DROP participant becomes
eligible for a service-connected disability pension and his employment
is terminated due to an inability to continue in service on grounds
that render him eligible for a service-connected disability pension,
the monthly normal retirement benefit of the DROP participant shall
be reclassified as being on account of a service-connected disability.
In no event shall a DROP participant's monthly retirement benefit
be recalculated. The DROP participant's monthly retirement benefit
shall remain 50% as calculated at the time of entry into the DROP.
K.
Death. If a DROP participant dies, the participant's eligibility
for DROP shall terminate upon the date of death. In such case, if
the DROP account balances have not yet been paid out, the participant's
legal beneficiary shall have the same rights and options as the participant
to withdraw/roll over the account balance.
L.
Forfeiture of benefits. Notwithstanding a police officer's status
as a DROP participant, a current or former participant 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 Public Employee 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 participant shall only be entitled
to receive the contributions, if any, made by the participant to the
Police Pension Fund, without interest.
M.
Cost of management for DROP. The New Hope Police Benevolent Association
and the Borough agree that any costs or fees associated with the management
of the DROP accounts shall be paid directly from the Pension Fund
and not by the Borough.
N.
Amendment. Any amendments to this DROP section shall be consistent
with the provisions covering individual 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 individual retirement option accounts.
The DROP may only be amended by a written instrument, not by any oral
agreement or past practice.
O.
Construal of provisions. A police officer's election to participate
in the DROP shall in no way be construed as a limitation on the Borough's
right to suspend or to terminate a police officer for just cause or
to grant the police officer an honorable discharge based upon a physical
or mental inability to perform his or her duties.
P.
Severability. The provisions of the DROP shall be severable; and
if any of its provisions shall be held to be unconstitutional or illegal,
the validity of any of the remaining provisions of the DROP shall
not be affected thereby. It is hereby expressly declared as the intent
of the Borough that the DROP would have been adopted had such unconstitutional
or illegal provision or provisions not been included herein.
Q.
Effective date. The effective date of the DROP shall be January 1,
2015.