[Adopted 12-16-1957 by Ord. No. 1047]
[1]
Editor's Note: Pursuant to the Municipal Pension Plan Funding Standard and Recovery Act (Act 205 of 1984), which requires that pension reports be prepared under the supervision and direction of the Chief Administrative Officer of a municipality, the Board of Commissioners adopted Res. No. 1461-2003 on 8-11-2003 appointing the Township Manager as the Chief Administrator Officer of the Police Pension Plan.
A Municipal Police Pension Plan be and the same is hereby established for Haverford Township, pursuant to Act No. 600, approved May 29, 1956, as amended by Act No. 358, approved July 10, 1957,[1] to be maintained by:
A. 
A charge against each member of the police force.
B. 
Annual appropriations by the Township, if required.
[Amended 1-29-1990 by Ord. No. 2070]
C. 
Payments made by the State Treasurer to the Township from moneys received from taxes paid upon premiums by foreign casualty insurance companies for the purpose of pension retirement for policemen.
[Amended 2-10-2020 by Ord. No. 2890]
D. 
Gifts, grants, devises or bequests granted to this Police Pension Plan.
[1]
Editor's Note: See 53 P.S. § 767.
This article shall be known and may be cited as the "Haverford Township Police Pension Plan Ordinance of 1957."
[Amended 1-29-1979 by Ord. No. 1730;[1] 8-14-1995 by Ord. No. 2227; 2-10-2020 by Ord. No. 2890]
The Municipal Police Pension Plan established by this article shall be managed and administered by the Board of Commissioners, which shall provide pensions, as herein provided, through an administrator of its choosing and by authorizing the investment of funds with designated brokerage firms and/or investment money managers by resolution of said Board of Commissioners.
[1]
Editor's Note: Pursuant to Res. No. 380, adopted 12-19-1977, the annuity contract with the Travelers Insurance Company was replaced by an investment-only group plan contract with the Travelers Insurance Company. In addition, pursuant to the 1975 Employment Contract with the Police Department, certain death and disability benefits through a contract with the Continental Assurance Company were canceled.
All full-time future officers of the police force of Haverford Township on the effective date of this article shall be members of the pension plan from the effective date of this article. All full-time police officers employed after the effective date of this article shall be and must become members of the pension plan on the date of employment.
[Amended 10-9-1967 by Ord. No. 1321; 12-9-1968 by Ord. No. 1350; 3-8-1971 by Ord. No. 1417; 1-11-1982 by Ord. No. 1828; 5-14-1984 by Ord. No. 1896; 1-29-1990 by Ord. No. 2070; 7-12-1993 by Ord. No. 2178; 1-10-1994 by Ord. No. 2196; 10-10-1995 by Ord. No. 2231; 3-13-2000 by Ord. No. 2331; 9-9-2003 by Ord. No. 2402; 7-25-2014 by Ord. No. 2724; 10-17-2016 by Ord. No. 2795; 2-10-2020 by Ord. No. 2890; 2-10-2025 by Ord. No. 3012-2025]
A. 
Retirement option.
(1) 
Any police officer who has at least 25 years of service with the Police Department of the Township of Haverford and who has also attained the age of 50 years shall have the option to retire on pension. Police offices hired after August 1, 2014 will be eligible for superannuation retirement benefits after having attained 25 years of credited serviced and attained the age of 53.
(2) 
Monthly pension benefits will be equal to 50% of the average monthly compensation for said member during his last 36 months of employment. "Compensation," for pension purposes, is defined as the total amount paid to any police officer which is reportable on the W-2 form filed for the officer. Compensation shall also include amounts paid directly by the employer or through a program to which the employer has made contributions on behalf of the employee, other than under this plan (including, without limitation, a workers' compensation program or payments made under the Pennsylvania Heart and Lung Act). For officers hired on or after January 1, 2016, any lump sum payment received by the officer upon termination of employment will be excluded from the compensation definition for pension purposes. In addition, police officers who work beyond 25 years shall have their pension increased by $20 per month for each year of service beyond 25 up to a maximum of $100 per month for a police officer who completes 30 years of service.
(3) 
Police officers will contribute to the Police Pension Fund based upon total compensation, which includes base pay, longevity, night differential, overtime, court pay and other remuneration.
(4) 
Death and disability benefits shall be provided according to contract provisions unless otherwise found to be illegal or improper.
(5) 
Members shall pay into the Police Pension Plan at a rate of 5% of their total compensation. Total compensation for this purpose shall be as defined in § 30-12A(3). The Board of Commissioners may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the Police Pension Plan by members. Individual records of contributions by members shall be maintained, including all interest credited to his/her individual account.
(6) 
Any police officer who leaves the employment of Haverford Township and who is ineligible to receive any pension benefits shall have his contributions to the Police Pension Fund returned to him with interest at the rate of 4 1/2% compounded annually.
B. 
Early retirement.
(1) 
Eligibility requirements. A member will be eligible for early retirement benefits, provided that he retires from the Township Police Department and has completed at least 20 years of service with the Department, except that such service requirement shall be reduced to 15 years if the member was hired on or before January 1, 2000, and is at least age 50 at retirement.
(2) 
Benefit commencement date. Monthly benefits as described in Subsection B(3) shall commence on the first day of the month coincident with or next following the member's date of retirement.
(3) 
Amount of benefits. The amount of monthly benefit payable to the member shall be equal to the actuarial equivalent of a partial normal retirement benefit and shall be calculated as (a) x (b) x (d) + (c) x (d), where (a), (b), (c) and (d) are as follows:
(a) 
Fifty percent of the member's final thirty-six-month average salary at retirement.
(b) 
A fraction, the numerator of which is the member's years of service at early retirement and the denominator of which is the projected years of service the member would have based on continued service to his normal retirement date (i.e., the date on which he would have attained age 50 and completed 25 years of service).
(c) 
An additional benefit of $20 per month for each full year of service over 25 years, to a maximum additional benefit of $100 per month.
(d) 
An early retirement actuarial equivalent factor, where such factor shall reflect the fact that the partial normal retirement benefit [determined as (a) x (b) + (c) above] is to commence immediately rather than on the member's projected normal retirement date and shall be calculated using the interest and life expectancy assumptions reported in the last actuarial valuation report filed by the Township with the Public Employee Retirement Commission, pursuant to Act 205 of 1984 (as amended) of the Commonwealth of Pennsylvania.[1]
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
C. 
A police officer shall not be entitled to an honorable discharge if his services as a police officer of the Township have been terminated or he has been discharged as a police officer for any of the reasons provided for termination of employment or discharge under the civil service laws of the commonwealth relating to policemen, except where his employment has been terminated or he has been discharged for physical or mental disability affecting his ability to continue in service for which he shall be entitled to an honorable discharge, and with the further exception that his termination of services or discharge shall not be because of a reduction in the number of police officers for reasons of economy or other valid reasons that are deemed necessary by the Board of Commissioners.
D. 
Such members as are retired shall be subject to service from time to time as a police reserve in cases of riot, tumult or preservation of the public peace until unfitted for such service when they may be finally discharged by reason of age or disability.
E. 
Survivor benefits.
(1) 
If a member of the Police Pension Plan dies survived by a spouse or dependent children, after having become eligible to receive a pension benefit (i.e., he/she was eligible because he/she was already receiving a pension or he/she met the age and service requirements, but he/she had not yet retired), then a monthly pension benefit shall be paid immediately following the death of the member. As to officers who retire or were eligible to retire on or after January 1, 2013, upon the death of the officer, a survivor pension benefit shall then be paid throughout the remainder of the calendar year of the officer's death, and then for eight additional calendar years beginning as of January 1 of the year following the retired officer's death. The amount of the survivor pension benefit shall be equal to the pension benefit that was being received by the retired officer or would have been received by the retirement-eligible officer. At the expiration of the eight-year period, the survivor(s) shall receive a pension benefit equal to 50% of the pension benefit payable to the officer.
(2) 
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/her death.
(3) 
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 § 30-12F. 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.
(4) 
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 § 30-12B. 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 election of this benefit.
(5) 
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.
F. 
Vesting. Effective January 1, 1987, a police officer's pension shall be vested after 12 years of service.
G. 
Cost-of-living adjustments. On each January 1 following his date of retirement, a member who retired after January 1, 2000, shall have his pension increased by 100% of percentage increase in the Consumer Price Index as published by the United States Department of Labor for the Philadelphia Wilmington, Atlantic City region (or its successor region) for the twelve-month period ending with August of the preceding year, subject to the following qualifications:
(1) 
The increase due the first January 1 following the member's retirement shall be equal to 100% of percentage increase in the Consumer Price Index, determined as described above, multiplied by that fraction of the preceding year during which the member was retired.
(2) 
A member's total pension after successive annual applications of this cost-of-living provision, as described through Subsection G(1), shall not exceed the lesser of 115% of his initial pension and 75% of the salary upon which the member's initial pension was based.
[Amended 1-29-1990 by Ord. No. 2070]
Any member of the police force, as a policeman of this Township, who has been in regular service on said police force as a policeman for a period of at least six months and who thereafter shall enter into or has heretofore entered into the military service of the United States shall have credited to his employment record for pension or retirement benefits all of the time spent by him in such military service if he returns or has heretofore returned to his employment within six months after his separation from military service, and provided that the members pay to the fund the moneys the member would have paid had employment been continuous with the Township. An actuary study shall be made to determine costs to be paid.
[1]
Editor's Note: Former § 30-14, Basis for determining pension benefits, amended 6-30-1986 by Ord. No. 1960, was repealed 1-29-1990 by Ord. No. 2070.
[Amended 12-29-1958 by Ord. No. 1085[1]]
A. 
Service-connected disability. If a member of the Police Pension Plan is permanently disabled from performing police work for the Township of Haverford as the result of a service-connected disability, the officer shall receive an annual pension equal to 70% of the base pay and longevity over the 12 months preceding the officer's disability retirement as a disability pension offset by any social security disability benefits received by the member for the same injury. This benefit shall continue until his/her death.
[Amended 1-29-1990 by Ord. No. 2070; 11-12-1996 by Ord. No. 2256; 9-9-2003 by Ord. No. 2402]
B. 
Non-service-connected disability. For officers hired before January 1, 2016, the Township agrees to fund the non-service-connected disability pension which provides that any officer, regardless of years of service, shall be entitled to receive an annual pension equal to 50% of the base salary and longevity over the 12 months preceding the officer's disability retirement with no offset for social security and no offset for workers' compensation; but in no event shall a combination of monies the officer receives annually from the non-service-connected disability pension and workers' compensation exceed 100% of the base pay paid to the officer over the 12 months preceding the officer's disability retirement. An officer shall not be eligible for this pension if the disability was intentionally self-inflicted or resulted from the use of illegal drugs.
[Amended 1-29-1990 by Ord. No. 2070; 11-12-1996 by Ord. No. 2256; 10-17-2016 by Ord. No. 2795]
C. 
Pre-retirement 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 Township police officer (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.
[Amended 7-25-2014 by Ord. No. 2724]
D. 
Lump-sum death benefits. Pursuant to the 2021 collective bargaining agreement, upon the death of a member of the police force of this Township, if death occurs before his/her retirement, there shall be payable to his/her designated beneficiary or, in the absence of a designated beneficiary, to his/her estate, the sum of $75,000.[2]
[Amended 1-13-1969 by Ord. No. 1355; 12-8-1969 by Ord. No. 1375; 1-29-1990 by Ord. No. 2070; 5-9-2022 by Ord. No. 2953-2022]
[2]
Editor's Note: Former Subsection E, which provided additional benefits and immediately followed this subsection, was repealed 1-29-1990 by Ord. No. 2070.
[1]
Editor's Note: Section 3 of Ord. No. 1085 provided as follows:
"Section 3. This ordinance shall be effective January 1st 1959, or at the time when all of the assets of the existing private organization known as the Haverford Township Police Pension Fund, as listed and described in report of Scovell, Wellington and Company, of October 31, 1958, plus income accruing thereon, less pensions due and payable and such sums as are authorized by the Court not to exceed $22,500, are turned over and delivered to the Haverford Township Police Pension Fund or Plan created under Ordinance No. 1047, adopted the 16th day of December, 1957, whichever date is later."
[Added 4-27-1981 by Ord. No. 1804[1]]
A. 
Pursuant to the 2021 collective bargaining agreement, each officer shall receive a life insurance policy in the amount of $25,000 at retirement with a double indemnity provision, either in the form of a group term or whole life coverage, at the discretion of the Township.
[Amended by 5-9-2022 by Ord. No. 2953-2022]
B. 
The life insurance benefit will be provided through an insurance company, which premiums will be paid by the general fund.
[Amended by 5-9-2022 by Ord. No. 2953-2022]
C. 
Pursuant to the arbitration award, the life insurance benefit will be provided through an insurance company, which premiums will be paid by the general fund and reimbursed to the general fund by the Police Pension Fund.
[Amended 1-29-1990 by Ord. No. 2070]
[1]
Editor's Note: This ordinance further provided that inasmuch as this life insurance benefit was mandated by an arbitration award effective 1-1-1980, the effective date of this ordinance to provide that benefit is 1-1-1980.
[Amended 1-29-1990 by Ord. No. 2070; 2-10-2020 by Ord. No. 2890]
The Township will designate an actuary to perform a biennial actuarial valuation. Such valuation shall be performed according to regulations provided by Pennsylvania Municipal Act 205 of 1984.
Unless otherwise provided for, members of the police force shall pay into the plan monthly an amount determined annually by the Board of Commissioners of the Township, not less than 5% nor more than 8% of monthly compensation. The Township Secretary is hereby authorized to establish a system of payroll deductions necessary to provide for the contribution to be made hereunder by the members of the police force. Unless otherwise provided for, the remainder of the needed annual contribution, as determined by the actuary, shall be paid by the Township contributing by annual appropriations.
[Amended 6-30-1986 by Ord. No. 1960; 2-10-2020 by Ord. No. 2890]
The payments made by the State Treasurer to the Township from the moneys received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement or disability benefits for policemen shall be applied as follows:
A. 
To apply against the annual obligation of the Township's annual minimum municipal obligation; or
B. 
After such annual obligation has been funded, to apply against any additional unfunded liability; or
C. 
To the extent that the payment may be in excess of such obligations, to reduce the contributions of police officers.
[Amended 1-29-1990 by Ord. No. 2070]
Any police officer, a member of the police force of the Township, who, for any reason whatsoever, shall be ineligible to receive a pension after having contributed any charges to the Police Pension Plan established pursuant to the provisions of this article shall be entitled to a refund of all such moneys paid by him into such plan immediately upon discontinuance of his employment with the police force with interest at 4 1/2%, compounded annually, on each contribution from the end of the year of payment to the first of the month in which discontinuance of his employment with the police force occurs. If such discontinuance is due to death, such refund, with interest as aforesaid, shall be paid to his designated beneficiary or, in the absence of such designated beneficiary, to his estate.
[Amended 1-29-1990 by Ord. No. 2070]
The Township of Haverford hereby authorizes the Police Pension Fund of the Township to reimburse the Township general fund for all administrative charges involved in administering the Police Pension Fund since the inception of the authority of the Township to recover such funds under the Home Rule Charter, effective January 1, 1977.
[1]
Editor's Note: Former § 30-26, Pension payments prohibited prior to certain dates, was repealed 1-29-1990 by Ord. No. 2070.
[Added 12-29-58 by Ord. No. 1085]
The Haverford Township Police Pension Plan created by Ordinance No. 1047, enacted and approved the 16th day of December 1957, does accept from the existing private Police Pension Fund all of its assets having a face amount of $271,734.97, as listed and defined on report of Scovell, Wellington and Company, dated October 31, 1958, which is incorporated herein and made a part hereof by reference.
[Added 12-29-1958 by Ord. No. 1085]
The Haverford Township Police Pension Plan does hereby assume the liability of continuing the payment of pensions to members of the police force retired prior to the date hereof in accordance with the laws and regulations of the existing Police Pension Fund organization under which said members were retired and a pension awarded to a widow of a policeman.[1]
[1]
Editor's Note: Immediately following this section was a listing containing the pensions to be continued to members of the police force who retired prior to the date hereof. A copy of such listing is on file and may be obtained from the Township Secretary.
[Added 7-25-2014 by Ord. No. 2724]
A. 
Title. This section shall be known as the "Haverford Police Act 44 Retirement Program."
B. 
Definitions. When used in this section, the below words shall have the meaning indicated.
ACT 44 PROGRAM
The Act 44 Deferred Retirement Option Program referred to in the Collective Bargaining Agreement between the Fraternal Order of Police Delaware County Lodge No. 27 and the Township of Haverford.
ACT 44 PROGRAM ACCOUNT
Separate ledger account created to accept Act 44 Program participants' monthly pension benefit while an Act 44 Program 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 Act 44 Program and has had such application approved by the Township.
POLICE OFFICERS
Police officers of the Police Department.
TOWNSHIP
Township of Haverford, Delaware County, Pennsylvania.
C. 
Eligibility. Eligibility for the Act 44 Program shall be determined as follows:
(1) 
Police officers who have not retired prior to the implementation of the Act 44 Program may enter into the Act 44 Program following completion of 25 years of credited service and attaining the age of 53 for police officers hired after 8-1-2014, and following the completion of 25 years of credited service and attaining the age of 52, for police officers hired before 8-1-2014.
[Amended 1-11-2021 by Ord. No. 2921-2021]
D. 
Written election. Eligible officers who wish to be participants in the Act 44 Program must signify that intention in writing as follows:
(1) 
A police officer electing to participate in the Act 44 Program must complete and execute an Act 44 Program participation election form prepared by the Township, which shall evidence the member's election to participate in the Act 44 Program. The form must be signed by the police officer and be notarized and submitted prior to the date on which the member wishes Act 44 Program participation to commence. The Act 44 Program participation election form shall include an irrevocable notice to the Township, 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 60 months from the effective date of Act 44 Program 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 Township properly terminates or honorably discharges the officer prior to the resignation date. A participant may resign from employment while in the Act 44 Program status, which shall terminate his/her participation in the Act 44 Program.
[Amended 1-11-2021 by Ord. No. 2921-2021]
(2) 
In addition to the above information, the Act 44 Program participation election form shall also advise the employee of the following: an explanation of the participant's rights and obligations while in the Act 44 Program; that, as a condition of Act 44 Program participation, the participant foregoes active participation in the Police Pension Plan and foregoes any recalculation of pension benefits to include salary increases occurring after Act 44 Program participation commences; and that the Act 44 Program participant's service while in the Act 44 Program 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 Act 44 Program participation. An Act 44 Program 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 Township for approval of retirement and payment of pension. Once an Act 44 Program participation election form has been approved by the Township, it is irrevocable. Likewise, once an Act 44 Program participant enters the Act 44 Program, the participant may not subsequently leave and then re-enter the Act 44 Program, even if the employee separates from employment and subsequently begins employment with the Township again.
E. 
Benefit calculation. For all pension plan purposes, continuous service of a police officer participating in the Act 44 Program shall remain as it existed on the effective date of commencement of participation in the Act 44 Program. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Township 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 Act 44 Program. For officers hired prior to 1-1-2016, the balance of any accumulated time available to the ACT 44 participant will be paid in full in the Act 44 participant's final paycheck issued prior to entering the Act 44 Program. Thereafter, during the time in which the ACT 44 participant remains employed with the Township, if the Act 44 participant accumulates additional leave time, the balance of any additional accumulated leave time shall be paid in full in the ACT 44 participant's final paycheck issued prior to resignation. In no event shall the ACT 44 participant's leave time accumulated during the course of their Act 44 Program be used to recalculate any pension benefit at the time of the ACT 44 participant's resignation. 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 Act 44 Program or by applicable cost of living adjustments granted thereafter.
[Amended 1-11-2021 by Ord. No. 2921-2021]
F. 
Accumulation of the Act 44 Program 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 the Act 44 Program, accumulate to the benefit of that Officer and be accounted for on that Police Officer's Act 44 Program account. Participants shall not have the option of self-directed investment of their individual Act 44 Program account while in the Act 44 Program. Instead, the monies shall be invested in a fund to be identified and selected solely by the Township in accordance with applicable law so as to generate a rate of return of no less than 0% and no more than 4.5%.
G. 
Accrual of nonpension benefits. After a police officer elects to participate in the Act 44 Program, all other contractual benefits shall continue to accrue with the exception of those provisions relating to the Police Pension Plan.
H. 
Payout. Upon separation from employment, the Act 44 Program payout options available to the Act 44 Program participant shall be as follows:
(1) 
The balance of the Act 44 Program participant's account, less withholding taxes, if any, remitted to the Internal Revenue Service, shall be paid to the participant or the participant's surviving beneficiary.
(2) 
The balance of the Act 44 Program participant's account shall be paid 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 Act 44 Program 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 Act 44 Program participant or beneficiary fails to make an election within 60 days following the date of termination of Act 44 Program participation, then the Township shall implement Subsection H(1) above.
I. 
Service-connected disability during Act 44 Program. If an Act 44 Program participant becomes temporarily incapacitated due to a service-connected injury during his participation in Act 44 Program, that police officer shall continue to participate in the Act 44 Program as if fully employed. The police officer shall receive disability pay in the same amount as disabled police officers that are not participating in the Act 44 Program. In no event shall a police officer on temporary disability have the ability to draw from his Act 44 Program 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 Act 44 Program supersede or limit in any way the right of the Township to honorably discharge a police officer based upon an inability to perform his or her full duties as a police officer. If an Act 44 Program 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 Act 44 Program participant shall be reclassified as being on account of a service-connected disability. In no event shall an ACT 44 participant's monthly retirement benefit be recalculated. The ACT 44 participant's monthly retirement benefit shall remain 50% as calculated at the time of entry into the Act 44 Program.
J. 
Death. If an Act 44 Program participant dies, the participant's eligibility for Act 44 Program shall terminate upon the date of death. In such case, if the Act 44 Program 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.
K. 
Forfeiture of benefits. Notwithstanding a police officer's status as an Act 44 Program 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 Pension Forfeiture Act, 43 P.S. §§ 1311-1314, shall forfeit his right to receive a pension, including any amounts currently deposited in the Act 44 Program 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.
L. 
Cost of management for Act 44 Program. The police officers and the Township agree that any costs or fees associated with the management of the Act 44 Program accounts shall be paid directly from the Pension Fund and not by the Township.
M. 
Amendment. Any amendments to this Act 44 Program 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 Act 44 Program participants and upon all Act 44 Program participants who have balances in their individual retirement option accounts. The Act 44 Program may only be amended by a written instrument, not by any oral agreement or past practice.
N. 
Construal of provisions. A police officer's election to participate in the Act 44 Program shall in no way be construed as a limitation on the Township'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.
O. 
Severability. The provisions of the Act 44 Program 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 Act 44 Program shall not be affected thereby. It is hereby expressly declared as the intent of the Township that the Act 44 Program would have been adopted had such unconstitutional or illegal provision or provisions not been included herein.
P. 
Effective date. The effective date of the Act 44 Program shall be August 1, 2014.