The following words and phrases as used in this
plan shall have the meaning set forth in this article, unless a different
meaning is otherwise clearly required by the context:
ACCRUED BENEFIT
As of any given date, the participant's monthly benefit determined under §
57-80, which amount shall be based upon the participant's average compensation determined as of such date and multiplied by a fraction, the numerator of which shall be the participant's completed years of credited service as of such determination date and the denominator of which shall be the number of years of credited service the participant would be required to complete to attain normal retirement age. notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed 1.0. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation, provided under §
57-86. All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided by the plan prior to the actual payment thereof, and no accrued benefits shall be paid unless the participant satisfies all requirements hereunder for entitlement to receive such benefit.
ACCUMULATED CONTRIBUTIONS
The total amount contributed by any participant to this plan
or its predecessor by way of payroll deduction or otherwise.
ACT
The Municipal Pension Plan Funding Standard and Recovery
Act (enacted as Act 205 of 1984), as amended, 53 P.S. § 895.101
et seq.
ACTUARIAL EQUIVALENT
Two forms of payment of equal actuarial present value on
a specified date. The factors to be used in determining actuarial
equivalents shall be 7% interest and UP-1984 Mortality Table rates.
ACTUARY
The person, partnership, association or corporation which
at any given time is serving as actuary, provided that such actuary
must be an approved actuary as defined in the Act.
AUTHORIZED LEAVE OF ABSENCE
Any leave of absence granted in writing by the employer for
reasons, including, but not limited to, accident, sickness, pregnancy
or temporary disability, education, training, jury duty or such other
reasons as may necessitate authorized leave from active employment.
AVERAGE COMPENSATION
The average of the monthly compensation of the participant
during any five continuous years of credited service prior to termination
of employment which provide the highest average or the monthly rate
of pay at the time of termination from employment, whichever produces
the highest rate of monthly compensation.
BENEFICIARY
The person or legal entity designated by the participant
to receive any applicable benefits under the plan payable upon the
occurrence of the death of the participant. In the event that a participant
does not designate a beneficiary or the beneficiary does not survive
the participant, the beneficiary shall be the surviving spouse, or
if there is no surviving spouse, the issue, per stirpes, or if there
is no surviving issue, the estate; but if no personal representative
has been appointed, to those persons who would be entitled to the
estate under the intestacy laws of the Commonwealth of Pennsylvania
if the participant had died intestate and a resident of Pennsylvania.
BREAK IN SERVICE
Any period of time after employment has commenced during
which an employee fails to maintain a continuous period of employment;
however, notwithstanding the foregoing, an authorized leave of absence
shall not be considered a break in service.
CHIEF ADMINISTRATIVE OFFICER
The person designated by the employer who has primary responsibility
for the execution of the administrative affairs of the plan.
CODE
The Internal Revenue Code of 1986, as amended.
COMPENSATION
The basic rate of remuneration plus shift differential and
longevity pay paid to an employee by the employer with respect to
personal services rendered as an employee and shall exclude all other
forms of remuneration, including but not limited to overtime and expense
reimbursements. Amounts paid as lump sums for back-pay, damage awards
or settlements other than to the extent that such amounts are credited
to periods of time when they would otherwise have accrued or been
earned shall be excluded such that no amounts are credited in a manner
which would result in duplication of remuneration for any particular
period of time. Compensation shall be limited on an annual basis for
purposes of this plan to the amount specified in accordance with Code
Section 401(a)(17) for government plans, as adjusted under Code Section
415(d).
CONTRACT or POLICY
Any insurance or annuity contract issued by an insurance
company in accordance with the requirements of the plan.
COUNCIL
The City Council of the City of Butler, Pennsylvania.
DISABILITY RETIREMENT DATE
The first day of the month coincident with or next following
the date when a participant terminates employment due to a total and
permanent disability.
EMPLOYEE
Any person who is employed on a regular full-time basis as
a police officer by the employer and who is not otherwise participating
in a pension plan or retirement program sponsored by the employer
which recognizes credit for the same period of service to the employer.
EMPLOYER
The City of Butler, Pennsylvania, a political subdivision
of the Commonwealth of Pennsylvania.
EMPLOYMENT
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as an employee. Employment may include, for the purpose
of determining years of credited service, an authorized leave of absence
to the extent it is specifically granted in writing by the Council
and permitted pursuant to applicable law.
LATE RETIREMENT DATE
The first day of the month coincident with or next following
the date when a participant retires which is subsequent to the participant's
normal retirement date.
MINIMUM MUNICIPAL OBLIGATION
The minimum annual obligation of the municipality as determined
and certified by the chief administrative officer pursuant to the
provisions of the Act.
NORMAL RETIREMENT AGE
For a participant who was first employed in employment prior
to June 1, 1966, the date on which the participant completes 20 years
of credited service and shall mean for a participant who was first
employed in employment on or after June 1, 1966, the date on which
the participant has completed at least 20 years of credited service
and has attained at least age 50. Police officers who retire in 2003,
2004, 2005, 2006, and 2007 shall be permitted to retire after 20 years
of credited service, regardless of age, pursuant to a collective bargaining
agreement between the City of Butler and its Bureau of Police signed
on March 3, 2003. Police officers who retire in 2014 shall be permitted
to retire after 20 years of credited service regardless of age. Police
officers who retire in 2018 shall be permitted to retire after 25
years of credited service regardless of age. Police officers hired
on or after October 1, 2018, the date on which the participant completes
25 years of credited service and has attained at least age 50.
[Amended 3-27-2003 by Ord. No. 1536; 12-18-2014 by Ord. No. 1699; 5-24-2018 by Ord. No. 1757; 8-23-2018 by Ord. No. 1766]
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following
the date when an employee attains normal retirement age.
NOTICE or ELECTION
A written document prepared in the form specified by the
plan administrator and delivered as follows: If such notice or election
is to be provided by the employer or plan administrator, it shall
be mailed in a properly addressed envelope, postage prepaid, to the
last known address of the person entitled thereto, on or before the
last day of the specified notice or election period; or, if such notice
or election is to be provided to the employer or the plan administrator,
it must be received by the recipient on or before the last day of
the specified notice or election period.
PARTICIPANT
Any employee who has commenced participation in this plan in accordance with Article
XV, and has not for any reason ceased to participate hereunder.
PENSION FUND
The assets of the plan, which shall be accounted for separately
from the assets of any other plans maintained by the employer and
which shall be administered under the supervision of the employer
in accordance with the terms of the plan.
PENSION PLAN BOARD
The Board appointed pursuant to the provisions of applicable law to administer the plan as more fully described herein under Article
XXII.
PLAN
The City of Butler Police Pension Plan.
PLAN YEAR
The twelve-month period beginning on January 1 and ending
on December 31.
RESTATEMENT DATE
January 1, 2002, the effective date of this amended and restated
plan.
SERVICE INCREMENT
The amount determined under §
57-82 on behalf of a participant who accumulates years of credited service in excess of the number of years of credited service which are required for attainment of normal retirement age.
TOTAL AND PERMANENT DISABILITY
A condition of physical or mental impairment due to which
a participant is unable to perform any duties of employment with the
employer. The plan administrator shall determine whether a participant
has incurred a total and permanent disability.
YEAR OF CREDITED SERVICE
Any consecutive twelve-month period during which a participant
is continuously employed in employment. Each year of credited service
shall be determined from the date on which participation in the plan
shall commence and annual anniversaries thereof and/or in the case
of a break in service, the date that reemployment of a participant
shall commence and anniversaries thereof, provided that the employee
has authorized the payment of employee contributions to the plan.
Years of credited service shall include any period of voluntary or
involuntary military service with the Armed Forces of the United States
of America not to exceed a total of three years, provided that the
participant shall purchase such service credit with the prior approval
of Council (such approval shall not be unreasonably withheld). The
purchase price for such service credit shall be an amount equal to
the prevailing rate of pension contributions times the number of years
and fractions thereof being purchased plus an amount equal to the
equivalent of the contribution that the employer would have been obligated
to pay if the participant had been an employee during such period.
The purchase price hereunder shall be paid into the plan within the
time period prescribed by Council after the date that the purchase
price has been determined and provided to the participant. If a participant
fails to pay such purchase price within the time prescribed by Council,
there shall be no service credit given for such period of military
service. Years of credited service shall include any period of qualified
military service as determined under the requirements of Chapter 43
of Title 38, United States Code, provided that the participant returns
to employment following such period of qualified military service
and the participant makes payment to the plan in an amount equal to
the participant contributions that would otherwise have been paid
to the plan during such period of qualified military service. The
amount of participant contributions shall be based upon an estimate
of the compensation that would have been paid to the participant during
such period of qualified military service as determined by the average
compensation paid to the participant during the 12 months immediately
preceding the period of qualified military service. The amount of
participant contributions so calculated must be paid into the plan
before the end of the period that begins on the date of reemployment
and ends on the earlier of the date that ends the period that has
a duration of three times the period of qualified military service
or the date that is five years after the date of reemployment.