Borough of New Hope, PA Pension Plans

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.

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.

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.

Members' accounts shall be debited for any investment-related expenses incurred within the plan.

§ 30-4 Retirement benefits.

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.

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.

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.

§ 30-5 Death benefits.

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.

Death after retirement. If a member 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 § 30-6 hereof.

§ 30-6 Method of distribution of benefits.

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):

The life of the member.

The life of the member and a designated beneficiary.

A period certain not extending beyond the life expectancy of the member.

A period certain not extending beyond the joint and last survivor expectancy of the member and a designated beneficiary.

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.

§ 30-7 Termination of employment.

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.

Reemployment rights.

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.

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.

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.

If a nonvested member terminates, he will be deemed to have repaid the deemed distribution as of the date of reemployment.

§ 30-8 Management of fund.

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.

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.

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.

§ 30-9 Duties of Council.

The plan shall be administered by the Council. The Council shall make and adopt rules and regulations for the efficient administration of the plan.

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.

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.

The Council shall serve without bond except as may be otherwise required by law and without compensation for its services as such.

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.

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.

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.

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.

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.

§ 30-10 Provisions relating to the Borough.

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.

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.

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.

§ 30-11 Termination or amendment of plan.

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.

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.

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.

§ 30-12 Miscellaneous provisions.

Encumbrance of benefits.

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.

AVERAGE APPLICABLE COMPENSATION

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.

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.

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.

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.

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.

Article II Police Pension Plan

[Adopted 6-14-2005 by Ord. No. 2005-8]

§ 30-13 Definitions.

As used in this article, the following terms shall have the meanings indicated:

AGE

The age attained by the employee at his or her last birthday.

ANNIVERSARY DATE

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.

BOROUGH

The Borough of New Hope, Bucks County, Commonwealth of Pennsylvania.

CHIEF ADMINISTRATIVE OFFICER

The person who has primary responsibility for the execution of the administrative affairs of this pension plan, or the designee of that person.

COMPENSATION

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.

COUNCIL

The Council of the Borough of New Hope.

EARLY RETIREMENT DATE

The first day following the date on which the member completes 20 years of service.

EFFECTIVE DATE

This article shall be effective January 1, 2003.

EMPLOYEE

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.

FUND

All assets held by the Trust under the Trust Agreement relating to this Police Pension Plan.

MEMBER

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.

NORMAL RETIREMENT DATE

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.

PLAN

The Police Pension Plan for the Borough of New Hope, as herein set forth and as the same may hereafter be amended.

PLAN YEAR

A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.

POLICE PENSION BOARD (sometimes referred to as the "BOARD")

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.

SERVICE

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.

TOTAL AND PERMANENT DISABILITY

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.

TRUSTEE

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.

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.

§ 30-14 Eligibility.

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.

Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.

§ 30-15 Contributions.

Contributions by members.

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]

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.

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.

Deposits. Contributions by members shall be remitted to the trustee monthly.

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.

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.

Nonintervening military buy back.

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.

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.

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).

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.

§ 30-16 Retirement benefits.

Normal retirement.

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.

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]

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.

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.

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.

§ 30-17 Death benefits.

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.

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.

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.

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.

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.

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.

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]

§ 30-18 Severance of employment.

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:

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.

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.

§ 30-19 Method of distribution of benefits.

Refund benefits becoming distributable pursuant to § 30-18A and death benefits becoming distributable pursuant to the provision of § 30-17A shall be paid in the form of a lump-sum distribution.

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.

§ 30-20 Management of fund.

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.

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.

Investment manager.

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:

(a)

An investment advisor registered under the Investment Advisors Act of 1940;

(b)

A bank as defined in that Act; or

(c)

An insurance company qualified to manage, acquire or dispose of any asset of the plan under the laws of more than one state.

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.

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.

Determination of fair market value.

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 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.

§ 30-21 Police Pension Board.

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.

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.

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.

The Board shall serve without bond except as may be otherwise required by law and without compensation for its services as such.

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.

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.

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.

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.

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.

§ 30-22 Provisions relating to the Borough.

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.

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.

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.

§ 30-23 Termination or amendment of plan.

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.

In the event of termination of this plan, the Council shall allocate the assets then remaining in the fund as follows:

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.

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.

Of the remaining funds, those which can be identified as municipality contributions or contributions other than from members or from the commonwealth allocation, shall be distributed as the Council sees fit, provided that such distribution is in compliance with § 30-20.

All funds in excess of the funds described in Subsection B(1), (2) and (3) above shall be returned to the commonwealth as unused funds pursuant to the Act of May 12, 1943, P.L. 259, as amended, 72 P.S. § 2263.1 et seq.

§ 30-24 Miscellaneous provisions.

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.

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.

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.

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.

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.

Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.

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.

This article repeals all other ordinances prior to the date of its enactment.

§ 30-25 Deferred Retirement Option Plan.

[Added 11-17-2015 by Ord. No. 2015-06]

Title. This section shall be known as the "New Hope Police Deferred Retirement Option Plan."

Definitions. When used in this section, the below words shall have the meaning indicated.

BOROUGH

Borough of New Hope, Bucks County, Pennsylvania.

DROP

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.

DROP ACCOUNT

Separate ledger account created to accept a DROP participant's monthly pension benefit while a DROP participant, as well as any interest thereon.

FUND or PLAN

The Police Pension Plan.

PARTICIPANT

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

Police officers of the Police Department.

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.

Written election. Eligible officers who wish to be participants in the DROP must signify that intention in writing as follows:

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.

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.

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.

Pension contributions during DROP participation. A police officer participating in the DROP shall not make any required pension contribution during DROP service.

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%.

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.

Payout. Upon separation from employment, the DROP payout options available to the DROP participant shall be as follows:

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.

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).

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.