[Adopted 12-16-1957 as Ord. No. 1048]
A Municipal Employees Pension Plan is hereby
established for Haverford Township to be maintained by:
A. A charge against each member of the plan.
B. Annual appropriations made by the Township, if required.
[Amended 1-29-1990 by Ord. No. 2071]
C. Gifts, grants, devises or bequests granted to this
Employees Pension Plan.
This Article shall be known and may be cited
as the "Haverford Township Municipal Employees Pension Plan Ordinance
of 1957."
[Amended 1-29-1979 by Ord. No. 173O; 8-14-1995 by Ord. No. 2227; 7-14-2014 by Ord. No. 2721]
The Municipal Employees 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 the Board of Commissioners. It shall be the duty
of the Commissioners to apply all monies paid to the pension plan
in accordance with the provisions of the article.
A. All full-time employees of the Township of Haverford,
except members of the police force, and including salaried appointed
officers, shall be members of the pension plan from the effective
date of this article. All full-time employees, except members of the
police force, and including salaried appointed officers employed or
appointed after the effective date of this article shall be and must
become members of the pension plan on the date of employment or appointment.
This is not intended to include safety supervisors or school crossing
guards, volunteer firemen, emergency or auxiliary police and temporary
employees.
[Amended 1-29-1990 by Ord. No. 2071]
B. All elected Township officers heretofore or hereafter elected may become members of the pension plan upon filing with the Township Secretary a written request to become a member of the pension plan established by this article and provided that they pay the costs of said benefit as determined by an actuary study. The elected Township officers who are in office on the effective date of this article shall become members and be entitled to the benefits of this plan upon filing with the Township Secretary said request within 15 days after the effective date of this article, and those hereafter elected shall file said request within 15 days after qualifying for their respective offices. All elected Township officers who become members of the pension plan shall continue to be members so long as they either shall hold any Township elective office or shall be eligible for membership in the pension plan under the provisions of Subsection
A of this section.
[Amended 7-7-1958 by Ord. No. 1065; 1-29-1990 by Ord. No.
2071]
C. Salaried employees of the Haverford Township Free
Library Association may become members of this plan any time within
six months after the effective date of this article upon the approval
of the Haverford Township Free Library Association and the agreement
of the Haverford Township Free Library Association to pay the employer's
proportionate cost for pensions for its employees. When the Haverford
Township Free Library Association so approves and agrees, all said
employees of the Haverford Township Free Library Association, after
the effective date of this article, shall be and must become members
of the pension plan, and all future employees of said Library Association
must become members of the pension plan on the date of employment
or appointment.
[Amended 7-7-1958 by Ord. No. 1065; 1-11-1965 by Ord. No.
1256; 10-9-1967 by Ord. No. 1322; 11-13-1967 by Ord. No. 1324; 1-13-1969 by Ord. No. 1356; 1-29-1990 by Ord. No. 2071]
A. The normal retirement date of a member, who on the
effective date of this article has not attained the age of 62 years,
shall be the first day of the month coinciding with or following the
date the member attains the age of 62 years or the date he completes
an aggregate total of five years of service with the Township, whichever
is later. For the purpose of this pension plan, unless otherwise specified,
service with the Township shall mean service as a full-time employee
of the Township of Haverford or service as a salaried appointed official
or service as an elected officer of the Township of Haverford or service
as a salaried employee of the Haverford Township Free Library Association,
but shall not mean service as a safety supervisor, school crossing
guard, volunteer fireman, emergency or auxiliary policeman and temporary
employee.
[Amended 12-11-2000 by Ord. No. 2345]
C. A pension member who has completed at least 10 years
of service with the Township may withdraw his total contributions,
plus interest at 4 1/2% per annum compounded annually, on each
contribution from the end of the year of payment to the first day
of the month in which termination of employment occurs or leave his
contributions, if any, in the plan and receive a monthly benefit payable
for life at age 62, beginning on the first day of the month following
the date of termination or application for each benefit, whichever
is later. This monthly benefit shall be as follows:
(1) Take the total compensation received during the highest
36 months of employment prior to retirement date. The 36 months must
be calculated in three twelve-month intervals, not by individual months
totaling 36. As of January 1, 2020, and pertaining to non-bargaining-unit
members only, compensation is defined as compensation received less
any amounts received at separation as payment for unused leave time.
As of January 1, 2022, and pertaining to bargaining-unit members only,
compensation is defined as compensation received less any amounts
received at separation as payment for unused leave time.
[Amended 5-9-1994 by Ord. No. 2205; 12-11-2000 by Ord. No.
2345; 2-10-2020 by Ord. No. 2890; 3-14-2022 by Ord. No. 2951-2022]
(2) Take the average of the sum (divide the total by three).
(3) Take 2% of the average salary.
(4) Multiply the above sum by the number of years you
have worked for the Township. This is your yearly pension.
(5) Divide this figure by 12 to determine your monthly
pension.
E. Upon termination of services of a Township officer
by reason of nonelection, such member may withdraw the total contribution,
plus interest at 4 1/2% per annum after the year of contribution,
or leave his contribution in the fund if any has been made. He shall
receive a monthly benefit beginning one month after the date of termination
or application for such benefit, the actuarial equivalent of the benefit
accrued by reason of contributions by the member.
F. An employee also has the option of early retirement at age 55 with
30 years of service with actuarial reduction.
[Added 12-11-2000 by Ord.
No. 2345; amended 5-13-2019 by Ord. No. 2868]
G. There shall be a one-time incentive to the current Township Manager,
based upon his employment contract, to retire upon or after age 60
with no actuarial reduction for the early commencement of his pension
benefit. The Township Manager shall have the opportunity to select
this retirement incentive at any time beginning February 13, 2019,
through January 2, 2020.
[Added 5-14-2018 by Ord.
No. 2839]
[Amended 1-29-1990 by Ord. No. 2071; 12-11-2000 by Ord. No.
2345]
Any member employed by the Township for at least
six months and who thereafter enters into the military service of
the United States shall have credited to his or her employment record,
for pension calculation purposes, all of the time spent by the member
in such military service, provided that such member returns to the
Township's employ within six months after separation from such military
service. An actuary study shall be made to determine costs to be paid.
[Amended 7-7-1958 by Ord. No. 1065; 1-11-1965 by Ord. No.
1256; 10-9-1967 by Ord. No. 1322; 1-12-1987 by Ord. No. 1980; 1-30-1989 by Ord. No. 2040; 1-29-1990 by Ord. No. 2071]
A. A member who has met the age and service requirements shall be entitled to an annual normal retirement benefit equal to the pension credits hereinafter defined times the number of his aggregate complete years of service and fraction thereof to the nearest full month of service with the Township. A pension credit is equal to 2% of the member's annual salary or wages (As of January 1, 2020, and pertaining to non-bargaining-unit members only, compensation is defined as compensation received less any amounts received at separation as payment for unused leave time.) averaged over the three years of highest remuneration during his employment with the Township. Payment of the normal retirement benefit shall be made monthly for life, commencing on the member's normal retirement date or such later retirement date as has been approved by the Board of Commissioners under the provisions of §
30-33 hereof.
[Amended 2-10-2020 by Ord. No. 2890]
B. Reduced retirement benefits. Retiring employees and
elected officials may elect in lieu of normal retirement benefit a
reduced benefit as determined by pension provisions, with such election
of an optional form of retirement benefit to be made at the date of
retirement.
[Added 8-13-1984 by Ord. No. 1902]
The following benefit formula for elected officials
is provided:
A. Elected officials who retire or vacate their office
and have completed eight years of service, but before completion of
12 years, will receive an annual pension of 50% of the then salary
commencing at age 62 or the vacating of the office, whichever occurs
last.
B. Elected officials who retire or vacate their office
and have completed 12 years of service, but before completion of 16
years of service, will receive an annual pension of 75% of the salary
commencing at age 62 or the vacating of the office, whichever occurs
last.
C. Elected officials who retire or vacate their office
and have completed 16 years of service will receive an annual pension
of 100% of the salary commencing at age 62 or the vacating of the
office, whichever occurs last.
D. Alternatives for Commissioners.
[Added 11-28-1988 by Ord. No. 2030]
(1)
Deferred retirement
(a)
In the event a Commissioner defers retirement beyond normal retirement age (i.e., attainment of age 62 and eight years of service), such Commissioner, upon actual retirement, shall receive a benefit equal to the greater of Subsection
D(1)(a)[1] or
[2], as follows:
[1]
A benefit that is the actuarial equivalent of
the benefit that would have been payable had the Commissioner retired
on his normal retirement age or August 13, 1984, whichever is later.
[2]
A benefit based on the Commissioner's years
of service at actual retirement where such benefit is the actuarial
equivalent of the benefit that would have been payable had the Commissioner
retired immediately upon the completion of 12 years of service if
actual years of service are more than 12 but less than 16 years or
immediately upon the completion of 16 years of service if actual years
of service are more than 16 years.
(b)
For these purposes, "actuarial equivalent" shall
mean a benefit that includes the value of foregone pension payments
during the applicable period of deferred retirement accumulated with
interest at the rate of 8% per annum compounded annually.
(2)
Postretirement.
(a)
A retiring Commissioner may elect to receive
retirement benefits under a form of payment where 50% or, alternatively,
100% of his retirement benefits will be continued to his surviving
beneficiary.
(b)
A Commissioner who has attained age 62 and eight
years of service but who has not retired may also elect survivor coverage
whereby should he die prior to actual retirement, his surviving beneficiary
will be entitled to 50% or, alternatively, 100% of the retirement
benefit that would have been payable had the Commissioner been retired.
(c)
A Commissioner who elects such postretirement
survivor coverage shall bear the entire cost of such coverage by agreeing
to receive an actuarially equivalent reduced retirement benefit.
(3)
Preretirement.
(a)
Upon the death of a Commissioner prior to the
attainment of age 62 and eight years of service, provided that such
Commissioner had elected preretirement survivor coverage, the designated
beneficiary of such Commissioner will be entitled to a monthly benefit
commencing on the date the Commissioner would have attained age 62
and eight years of service. The amount of such benefit shall be 100%
of the benefit that would have been payable to the Commissioner.
[Amended 1-30-1989 by Ord. No. 2040]
(b)
A Commissioner who elects such preretirement
survivor coverage shall bear the entire cost of such coverage by agreeing
to an actuarially equivalent increase in the rate of his own contributions
to the plan.
[Amended 7-7-1958 by Ord. No. 1065]
A. Disability benefits.
[Amended 7-14-2014 by Ord. No. 2721]
(1) Non-service connected disability:
(a)
If a nonprobationary employee is permanently and totally disabled
at a time when not engaged in the performance of his/her duty, as
determined by a Township medical review and approved by the Board
of Commissioners, there will be payable to him/her a monthly disability
benefit equal to 70% of the his/her monthly, regular wages at the
date of disability. Of this disability benefit, 30% will be paid through
the Township Municipal Employees' Pension Plan and the remaining 40%
will be paid through a long-term disability policy secured by the
Township. The maximum duration of the 70% disability benefit is until
age 65 unless as provided below, the employee has already attained
age 65 at the time of disability.
(b)
If a nonprobationary employee is permanently and totally disabled
and has already attained the age of 65, the forty-percent monthly
benefit paid from the long-term disability policy will only be paid
for the maximum months of disability as follows:
[1]
If disability is determined between age 65 but before attaining
age 66: 21 monthly benefit payments.
[2]
If disability is determined between age 66 but before attaining
age 67: 18 monthly benefit payments.
[3]
If disability is determined between age 67 but before attaining
age 68: 15 monthly benefit payments.
[4]
If disability is determined between age 68 but before attaining
age 69: 12 monthly benefit payments.
(c)
At the point in which the long-term disability policy expires,
the subsequent benefit will be the greater of the employee's accrued
pension benefit calculated at the time of disability or 30% of the
employee's salary at time of disability, whichever is greater.
(2) Service-connected disability:
(a)
If an employee is permanently and totally disabled while engaged
in the performance of duty, as determined by a Township medical review
and approved by the Board of Commissioners, there will be a monthly
service disability benefit payable to him/her equal to 1/12th of 50%
of his/her annual, regular wages at the date of his/her disability.
This benefit is paid through the Township Municipal Employees' Pension
Plan.
(b)
The amount of service disability payments from the pension plan
will be reduced by any benefits to which you may become entitled under
the Pennsylvania Worker's Compensation Laws or any acts of the Pennsylvania
Legislature. However, in no event will a combination of monies received
from service-connected disability benefits and worker's compensation
exceed 70% of total compensation paid to the employee over a twelve-month
period preceding the disability.
(c)
This benefit is payable until normal retirement date, at which
time the employee will receive his/her normal accrued pension benefit
calculated at the time of the disability or the fifty-percent service
disability benefit, whichever is higher.
B. Benefits payable to spouse. In the event of a member's death arising
out of the performance of his employment, as determined by the Board
of Commissioners, the member's widow shall be entitled to an annual
benefit, payable monthly, in an amount equal to 40% of the member's
annual salary or wage as of the date of his death. Payment of the
aforesaid benefit shall commence on the first day of the month following
the date of the member's death and shall continue to be paid until
the earliest of the following events:
(1) The date of death of the member's widow.
(2) The date the member's widow remarries.
[Amended 7-14-2014 by Ord. No. 2721]
C. Benefits payable to children.
(1) In the event of a member's death arising out of the performance of his employment, as determined by the Board of Commissioners, there shall be paid on behalf of each child of the member under 18 years of age an annual benefit, payable monthly, in an amount determined under Subsection
C(1)(a) or below, whichever is applicable:
(a)
Ten percent of the member's annual salary or wage as of the date of his death if a benefit as a result of the member's death is also payable under Subsection
B of this section; or
(b)
Twenty-five percent of the member's annual salary or wage as of the date of his death if there is no benefit payable under Subsection
B of this section or if the benefit payable under said Subsection
B is discontinued.
(2) Payment of the aforesaid benefit shall commence on the first day of the month following the date of the member's death and shall continue to be paid with respect to each child until said child attains the age of 18 years or dies, whichever is earlier. Payment of the aforesaid benefit shall be made on behalf of said child or children to such adult or adults as have, in the opinion of the Board of Commissioners, assumed the custody and principal support of such child or children, provided that upon receipt of notice by the Board of Commissioners that a legal guardian of the estate of such minor child or children has been appointed, such payment shall be made thereafter to the aforesaid legal guardian. The total amount to be paid annually under this subsection, including any amount payable under Subsection
B of this section, shall not exceed 50% of the member's annual salary or wage as of the date of his death. In the event that more than one child of a member is entitled to the benefit provided under Subsection
C(1)(a) above, the benefit payable on behalf of each child shall be equal to 10% of the member's annual salary or wage as of the date of his death, divided by the number of such children. In the event that more than two children of a member are entitled to the benefit provided under Subsection
C(1)(b) above, the benefit payable on behalf of each child shall be equal to 50% of the member's annual salary or wage as of the date of his death, divided by the number of such children.
D. Pre-retirement. Upon the death of a vested active member or upon
the death of a terminated vested member whose benefits had not commenced,
the surviving spouse of each member shall receive an immediate monthly
pension payable for life equal in amount of 50% of the member's accrued
benefit at time of death. Payments of the aforesaid benefit shall
commence on the first day of the month following the date of the member's
death and shall continue to be paid until the earliest of the following
events:
(1) The date of death of the member's spouse.
(2) The date the member's spouse remarries.
E. Postretirement. Upon the death of a retired member, 50% of the benefit the retired member was receiving shall be continued to the member's spouse for life, subject to Subsection
D(1) and
(2).
[Added 1-29-1990 by Ord. No. 2071]
[Amended 1-29-1990 by Ord. No. 2071; 7-14-2014 by Ord. No.
2721; 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.
A. All members of the defined benefit pension plan shall
pay into the pension plan at the employee contribution rate determined
by the Collective Bargaining Agreement in effect during a specific
calendar year, regardless of their membership status in the bargaining
unit.
[Amended 7-14-2014 by Ord. No. 2721]
B. The Township Secretary and Finance Director are hereby authorized
to establish a system of payroll deductions necessary to provide for
the contribution to be made hereunder by the members.
[Amended 7-14-2014 by Ord. No. 2721]
C. Unless otherwise provided for, the remainder of the
needed annual contribution, as determined by the actuary, shall be
paid by the Township by annual appropriations.
Any other moneys paid into the pension plan
established herein shall be applied to the Township portions of the
future service cost.
No person participating in the pension plan
established pursuant to the provisions of this article shall be deprived
of his right to an equal proportionate share therein upon the basis
upon which he first become entitled thereto.
[Amended 7-7-1958 by Ord. No. 1065; 1-29-1990 by Ord. No.
2071]
A. Any member who, for any reason whatsoever, shall be
ineligible to receive a pension after having contributed or having
had contributed on his behalf any charges to the pension plan established
pursuant to the provisions of this article shall, upon discontinuance
of his service with the Township, be entitled to a refund of all such
moneys paid by him 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 service 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.
B. If any member has retired but has not received in
total retirement payments prior to his death, and no spouse exists,
an amount equal to the moneys contributed by him to the plan with
interest at 2 1/2% compounded annually, on each contribution
from the end of the year of payment to the first of the month in which
retirement payments commenced, then the excess, if any, of such contributions,
with interest as aforesaid, over such total retirement payments 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. 2071]
The pensions herein provided for shall not be
subject to attachment, execution, levy, garnishment or other legal
process and shall be payable only to the member, his spouse or his
designated beneficiary or to his estate and shall not be subject to
assignment or transfer.
[Amended 1-29-1990 by Ord. No. 2071]
The expense of the administration of the pension
plan established pursuant to this article, including the compensation,
if any, of the actuary and the custodian of the fund and excluding
the payments to be made as premiums for the annuity contract and payments
of retirement allowances, shall be paid by the fund since the inception
of the authority of the Township to recover such funds under the Home
Rule Charter, effective January 1, 1977.
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 pension plan herein provided for.