[HISTORY: Adopted by the Board of Supervisors of the Township of Derry as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-9-1977 by Ord. No. 180[1]]
[1]
Editor's Note: Ord. No. 551, adopted 12-20-2005, "readopted the 1977 Police Pension Plan, as amended and restated effective January 1, 2001, and the 2003 Compliance Amendment thereto." A complete copy of the police pension plan, as amended, is on file in the Township offices.
[Amended 12-19-1989 by Ord. No. 311; Ord. No. 452]
A. 
The following persons shall be entitled to receive pension or retirement benefits as hereinafter provided:
(1) 
Each policeman employed by this Township on a full-time basis who shall have 25 years of continuous service with this Township and who shall have attained 55 years of age and who shall have received an honorable discharge. Effective January 1, 1989, the foregoing age requirement shall be reduced from 55 years of age to 50 years of age for all police persons who retire on or after that date.
(2) 
Each policeman employed by this Township on a full-time basis who is totally and continuously disabled as a result of a service-connected injury.
(3) 
The surviving widow of any policeman who has fulfilled the age and service requirements for retirement and who was employed by this Township on a full-time basis at the time of his death; or of any policeman retired by reason of age and service; or disability, as defined in Subsection A(2), above, or of any policeman killed in service; so long as said widow does not remarry.
(4) 
Any surviving child or children under the age of 18 years of any policeman who has fulfilled the age and service requirements for retirement and who was employed by this Township on a full-time basis at the time of his death; or, of any policeman retired by reason of age and service; or disability, as defined in Subsection A(2), above, or of any policeman killed in service, so long as said policeman is not survived by a widow or, if survived by a widow, said widow subsequently dies or remarries.
(5) 
Effective January 1, 1999, any employee with 20 or more years of credited service shall be permitted to retire and begin receipt of an actuarially reduced benefit pursuant to the provisions of Act 24 regardless of age. The amount of the benefit shall be actuarially reduced in accordance with the formula set forth in Act 24.
B. 
"Continuous service" shall mean full-time employment with this Township, including periods of absence which are approved by the Board of Supervisors of this Township or which arise by operation of law.
C. 
Any participant retiring hereunder shall be subject to serve, from time to time, as a police reserve in cases of riot, tumult or preservation of the public peace, until unfit for such service, whereupon he may be finally discharged from reserve service by reason of age or disability.
[Amended 12-19-1989 by Ord. No. 311]
A. 
The amount of pension or retirement benefits payable to any policeman under this program shall be a sum equal to 1/2 of the monthly average salary of the participant during the last 36 months of employment. Such retirement benefits shall be payable monthly during the balance of participant's life following actual retirement and the benefits for any month shall be computed as the sum of:
(1) 
Any pension benefits from pension plans heretofore established by a private organization or association for the members of the police force, but only to the extent that the Commonwealth or any of its municipalities shall have contributed to such pension plan monies raised by taxation;
(2) 
Fifty percent of the primary benefits under Federal Social Security laws from which the participant may be eligible because of age or disability; provided, however, that no such social security benefits shall be used to calculate pensions for policemen who retire on or after January 1, 1989; and
(3) 
Benefits from the pension fund established hereunder to the extent necessary to bring the total benefits in any month up to 1/2 of the aforesaid monthly average salary. Pension payments made under the provisions of this article shall not be a charge on any other fund in the treasury of the Township or under its control, save the police pension fund.
B. 
A widow eligible to receive benefits by reason of survivorship of a policeman shall receive a pension calculated at the rate of 50% of the pension or retirement benefits the policeman was receiving or would have been receiving had he been retired at the time of his death.
C. 
A child eligible to receive benefits by reason of survivorship of a policeman shall receive a pension calculated at the rate of 50% of the pension or retirement benefits the policeman was receiving or would have been receiving had he been retired at the time of his death provided, however, that where more than one child of a policeman is eligible to receive benefits, the aggregate pension payable to said children shall not exceed 50% of the pension or retirement benefits the policeman was receiving or would have been receiving at the time of his death.
[Amended 12-19-1989 by Ord. No. 311]
A. 
Each participant shall contribute monthly into the pension fund established hereunder an amount equal to the product determined by multiplying the total monthly compensation by 5%. All such contributions by participants shall be deducted by the Township from the participant's salary. Any balance of needed annual contributions shall become the obligation of the Township and shall be paid to the pension fund by annual appropriations.
B. 
This Township reserves the right to reduce or eliminate payments into the fund by participants on an annual basis, by resolution, if an actuarial study shows that if such payments are reduced or eliminated, contributions by the Township will not be required to keep the fund actuarially sound.
C. 
Any payments made by the Commonwealth of Pennsylvania to the Township for police pension purposes shall be used as follows:
(1) 
To reduce the unfunded liability of the Township on account of pensions payable hereunder, and after such liability has been funded;
(2) 
To apply against the annual obligation of the Township for future service cost or, to the extent that the payment may be in excess of such obligation;
(3) 
To reduce participant's contributions.
Effective January 1, 1978, the Board of Supervisors of this Township or its designee may, by resolution, provide for a cost of living increase for members of the police force receiving retirement benefits; provided, however, that such cost of living increase shall not exceed the percentage increase in the Consumer Price Index from the year in which the police member last worked; provided, further, that in no case shall the total police pension benefits for a retiree exceed 75% of his salary used for computing retirement benefits; and, provided further, that the total cost of living increase shall not exceed 30%. No cost of living increase shall be granted which would impair the actuarial soundness of the pension fund, nor shall any cost of living increase be granted more frequently than on an annual basis.
[Amended 5-23-1983 by Ord. No. 238]
A. 
The Township shall be the owner of all monies or property paid into the fund or annuities or policies purchased from insurance companies hereunder and the owner of any insurance retirement income contracts acquired hereunder, and no participant prior to retirement shall have any right or interest in any portion of said monies or property; provided, however, that each participant shall be entitled to designate a beneficiary for his contributions and earnings thereon, and for his pension benefits. In the event of termination or discontinuance of his employment with the Township for reasons other than retirement or death, each participant shall be entitled to have returned to him the total amount of all such monies paid by him into the pension fund, with interest at the rate of 4 1/2% per annum. If such termination or discontinuance of employment is due to death, such refund of monies shall be paid to the participant's designated beneficiary or, in the absence thereof, to his estate.
B. 
Should an officer cease to be employed as a full-time police officer by Derry Township prior to reaching superannuation retirement age and service requirements, but after having completed 12 years of continuous service as a full-time police officer for Derry Township, he or she shall be entitled to vest his or her benefits by filing with the Board of Supervisors written notice of his or her intention to vest within 90 days of cessation of employment as a full-time police officer of Derry Township. Upon reaching the date which would have been his or her superannuation retirement date as a full-time police officer, he or she shall be paid a partial superannuation retirement allowance determined by applying the percentage his or her years of service bears to the years of service which he or she would have rendered had he or she continued to work to his or her superannuation retirement date, to the gross pension, using the monthly average salary during the appropriate period prior to termination of employment. Such pension or monthly retirement benefit for any month shall be determined in accordance with the present provisions of the Municipal Police Pension Law, the Act of May 29, 1956, P.L. 1804, as amended, 53 P.S. § 761 et seq.
A. 
The pension payments herein provided for shall not be subject to attachment, execution, levy, garnishment or other legal process, and shall be payable only to the participant or his designated beneficiary. No participant or his beneficiary shall have any right to alienate, encumber or assign any assets of the fund held by the Trustees on his behalf, or any of the benefits or payments or proceeds of any contract or agreement purchased or acquired by the Township hereunder.
B. 
Any contract or agreement purchased or acquired pursuant to this article upon the life of such participant shall contain a provision, in substance, that to the extent permitted by law, none of the benefits or payments or proceeds of such contract or agreement shall be subject to any legal process by any creditor of such participant or beneficiary of such participant.
All contracts, agreements or funds held by the Township for the purpose of providing pensions, annuities or retirement income, or any of them, on any policeman who shall be a participant in the program herein established shall be and hereby are transferred and assigned to the fund herein created. After such transfer, the police pension fund shall assume the liability, if any, of continuing the payment of pensions to members of the police force retired prior to such transfer in accordance with the laws and regulations under which such members were retired.
[Amended 12-19-1989 by Ord. No. 311]
The expense of administering this pension fund program, including any custodian of the fund and any other charges and expenses related thereto, exclusive of the payment of pensions and actuarial related expenses as are authorized by the Municipal Pension Plan Funding Standard and Recovery Act, the Act of December 18, 1984, P.L. 1005, as amended, 53 P.S. § 895.101 et seq., shall be paid from appropriations made by the Board of Supervisors.
[Amended 12-19-1989 by Ord. No. 311]
The vesting provisions provided in this article are intended to comply with the statutory police pension provisions for borough, towns and townships having three or more full-time members in their police force, as established by the Municipal Police Pension Law, the Act of May 29, 1956, P.L. 1804, as amended, 53 P.S. § 761 et seq. Any interpretation of the language or terms contained in this article, as amended, shall be made in accordance with the provisions of said Act and the relevant amendments thereto.
[Adopted 12-20-1994 by Ord. No. 383]
Derry Township hereby elects to enroll its municipal employees in the Pennsylvania Municipal Retirement System, as authorized by the Pennsylvania Municipal Retirement Law, Act 15 of 1974, as amended, with the express purpose of having the Pennsylvania Municipal Retirement System administer the retirement plan established by the Township for the municipal employees. The Township does hereby agree to be bound by all the requirements and provisions of said law and to assume all obligations, financial and otherwise, placed upon member municipalities. All references hereafter shall be based on benefits negotiated between the Board and the Township under the provisions of Article IV of the Pennsylvania Municipal Retirement Law.
Membership in the Pennsylvania Municipal Retirement System shall be mandatory for all permanent municipal employees of the Township. Membership for elected officials and employees hired on a temporary or seasonal basis is prohibited, as is membership for individuals paid only on a fee basis.
Credit for prior service for original employees is granted for each year or partial year thereof that the member was employed by the Township from original date of hire. Benefits provided to members in the agreement dated__________, 199__, shall accrue based on all credited service granted and earned in accordance with this section.
Payment for any obligation established by the adoption of this article and the agreement between the System and Derry Township shall be made by the Township in accordance with the Pennsylvania Municipal Retirement Law and Act 205 of 1984, the Municipal Pension Plan Funding Standard and Recovery Act.
[Amended 2-22-2022 by Ord. No. 2022-01]
As part of this article, the Township agrees that the System shall administer and provide the benefits set forth in the amended and restated Deny Township Nonuniform Defined Benefit Pension Plan as set forth in the Pennsylvania Municipal Retirement System Defined Benefit Plan Adoption Agreement 001 entered into between the Pennsylvania Municipal Retirement System and the Township of Derry effective as of the date specified therein. The passage and adoption of this article by Derry Township is an official acceptance of said benefit agreement.
By adoption of this article the Township agrees to terminate, upon the effective date of membership in the Pennsylvania Municipal Retirement System, any previously maintained municipal pension program applicable to those employees identified as members in § 35-11 of this article and to transfer any assets from any existing plan to offset the established liability. Derry Township also acknowledges than an affirmative vote representing at least 75% of the plan members indicated the members were in agreement with the establishment of the plan with the Pennsylvania Municipal Retirement System.
Derry Township intends this article to be the complete authorization of the Township's municipal pension plan and, therefore, effective December 31, 1994, specifically repeals the previous agreement dated January 23, 1978. Any other pension ordinance or resolutions that are inconsistent herewith are likewise repealed.
A duly certified copy of this article and the referenced agreement shall be filed with the Pennsylvania Municipal Retirement System of the Commonwealth of Pennsylvania. Membership for the municipal pension plan of Derry Township in the Pennsylvania Municipal Retirement System shall be effective the first day of January 1995.