[Adopted 12-16-1986 by Ord. No. 241]
The Police Pension Plan is hereby established
pursuant to and in compliance with the Act of May 29, 1956, P.L. 1804,
as amended.[1] Such fund shall be under the direction of the Board of
Supervisors of Upper Southampton Township and shall be applied under
such regulations as the Board of Supervisors may prescribe.
[1]
Editor's Note: See 53 P.S. § 767.
[Amended 12-3-1991 by Ord. No. 291]
As used in this article, the following terms
shall have the meanings indicated:
The amount of an individual's benefit (whether or not vested)
as of a specific date determined in accordance with the terms of the
pension plan and based on compensation (if applicable) and service
to that date.
Member contributions accumulated with interest from date
deducted from payroll to the end of the plan year prior to distribution,
plus any amounts deducted during the year of distribution. The interest
rate used on credited accumulations is 6% compounded annually. Any
amount credited to the employees' accounts by the PMRS as of January
1, 1986, including amounts of regular interest and excess interest,
will be considered as the accumulated deduction of each participant
on January 1, 1986.
Factors which actuaries use in estimating future events affecting
pension costs; for example, mortality rates, employee turnover, compensation
levels, and investment earnings.
A procedure for determining the actuarial present value of
pension plan benefits and expenses and for allocating such value to
time periods, usually in the form of a normal cost and an accrued
liability.
A benefit determined by an actuary to be equivalent in value
to the participant's normal retirement benefit, as defined herein;
provided that such actuarial equivalent is within the limitations
provided herein.
The value of all plan benefits and expenses payable at various
times, determined as of a given date by a particular set of actuarial
assumptions.
The document presenting the actuary's estimate of the present
value of benefits to be paid under a pension plan and the calculation
of the amounts of employer contributions or accounting charges for
pension costs. This is sometimes called actuarial study or actuarial
report.
A person professionally trained in the technical aspects
of pensions, insurance and related fields. The actuary estimates how
much money must be contributed to a pension plan in order to provide
future benefits.
A contract that provides an income for specified periods
of time, such as a number of years or for life. Annuity payments are
usually made monthly. This term is often used synonymously with "pension,"
but annuity generally refers to an insurance contract and a pension
may be insured or uninsured.
Eligible children registered at an accredited institution
of higher learning and carrying a minimum course load of seven credit
hours per semester. (See Act 30 of 2002.[1])
[Added 5-11-2021 by Ord. No. 467]
The governing body of Upper Southampton Township, hereinafter
referred to as the "Supervisors."
The persons appointed to serve as administrators and trustees
of the pension fund.
The payroll deductions made bi-weekly from the compensation of the participants and paid to the pension fund; except that contributions in § 24-9 shall mean the total contribution accumulated during the period of employment and participation in this fund.
Upper Southampton Township, hereinafter referred to as "Township."
The Police Pension Fund established pursuant to this article.
Is calculated by averaging the participants' last 36 months
of monthly compensation.
The total earnings received by a participant in each and
every month including, but not limited to, base salary, holiday pay,
overtime, longevity pay, shift differential, and educational incentive.
The Township of Upper Southampton.
That portion of the actuarial present value of pension plan
benefits and expenses which is allocated to the valuation year by
the actuarial cost method.
Every person duly appointed from time to time by the Supervisors
as a full-time paid policeman working at least 40 hours a week at
a definite salary and eligible for additional fringe benefits as provided
by the Township.
Total service, not necessarily continuous.
The cessation of services by the participant for any reason
including disability, death, resignation and employer termination.
Voluntary leaves of absence without pay shall not be a termination
for purposes of this article; but no period of such leave shall be
computed in the total service in the aggregate for pension benefit
purposes. Leaves of absence with pay shall not be considered a termination
within the meaning of this article, and such leaves may be computed
in the total service in the aggregate for pension benefits purposes;
provided that the municipality is able to certify to the Department
of the Auditor General that such participant on a leave of absence
with pay is within the definition of participant herein.
A provision that a pension participant will, after meeting
certain requirements, retain a right to all of the accrued benefits,
even though the employee may leave the job before retirement.
[1]
Editor's Note: See 53 P.S. § 767 et seq.
A.
The Committee shall administer the Police Pension
Fund established by this article by such regulations as shall from
time to time be necessary for the effective management of the fund;
provided that no regulation shall be contrary to the statutes of the
commonwealth pursuant to which this fund is established.
B.
The Committee shall consist of five members, which
number shall include one appointed by and chosen from among the Board
of Supervisors, two appointed by the Police Benevolent Association
of Upper Southampton Township, and one citizen at large, preferably
from the business community, appointed by the other four Committee
members, and the Township Manager.
(1)
The Township Manager shall be a permanent member of
the Committee. Every other member shall serve for a period of five
years, or until their successors are appointed, provided that the
members of the Commission first appointed shall be appointed for varying
terms as follows:
(2)
Any member may resign upon written notice to the Committee.
Any vacancies in the Committee arising from resignation, death or
removal shall be filled by the procedure set out herein for the member
of the Committee whose resignation, death or removal has created the
vacancy.
C.
The Committee shall elect from among its members at
the first meeting thereof, and at the first meeting of each succeeding
year, a Chairman, Secretary and such other officers as the Committee
may deem necessary by a majority vote of the members present at such
meeting.
D.
The Committee shall meet no less than twice each year
and shall serve without compensation for their services. Written notice
of each meeting shall be mailed to each member by the Secretary at
least five days prior to said meeting. Regular or special meetings
shall be convened at the call of the Chairman or in such other manner
as the members may, by a majority vote, designate.
E.
The Committee shall act by such procedure as the Committee
shall establish; provided that three members of the Committee shall
constitute a quorum. An affirmative vote of a majority of the entire
Committee shall be necessary in order to transact any business. The
Committee may authorize one of its members to execute any document
or documents on behalf of the Committee. The Committee may adopt bylaws
and regulations as it deems necessary for the conduct of its affairs
and may with approval of the Board of Supervisors appoint such accountants,
counsel, specialists or such other persons as it may deem desirable
for the proper administration of the pension fund.
F.
The Committee shall keep a record of all its proceedings
and acts, and shall keep all such books of accounts, records and other
data as shall be necessary for the proper administration of the pension
fund.
G.
All such reasonable expenses incurred in the administration
of the fund including but not limited to fees for the services of
specialists including actuaries, accountants and legal counsel shall
be approved by the Board of Supervisors, and paid from Police Pension
Fund assets.
H.
No member of the Committee shall incur any liability
for any action or failure to act, accepting only liability for its
own gross negligence or willful misconduct. The employer shall indemnify
each member of the Committee against any and all claims, loss, damages,
expenses and liability arising from any action or failure to act,
except for such that is the result of gross negligence or willful
misconduct of such member.
[Amended 7-11-1989 by Ord. No. 270; 9-17-1991 by Ord. No.
288]
A.
Superannuation retirement age and length of service.
Effective January 1, 2001, the superannuation retirement age shall
be 52 years of age and 25 years of service.
[Amended 6-21-1994 by Ord. No. 308; 3-18-2003 by Ord. No.
356]
B.
Basic benefits. The monthly pension benefit shall be 1/2 of the monthly average benefit compensation (see § 24-5) of such member during the last 36 months of employment. This benefit is payable for life.
C.
An officer that has more then 25 years of service
at the time he or she retires, shall receive $100 per month for each
completed year of service in excess of 25 years, up to a maximum of
$500 per month after five completed years of service in excess of
25 years. Such length-of-service increments shall be paid in addition
to other monthly pension or retirement allowances.
D.
A lifetime survivor's benefit must be provided to the surviving spouse
(or if no spouse survives or if he or she subsequently dies, the child
or children under 18 years of age or if attending college, under or
attaining the age of 23) of no less than 50% of the pension the member
was receiving or would have been entitled to receive had he been retired
at the time of death.
[Amended 6-21-1994 by Ord. No. 303; 12-7-2015 by Ord. No. 434]
(1)
The surviving spouse of a member of the police force who dies before
his pension has vested or if no spouse survives or if he or she survives
and subsequently dies, the child or children under the age of 18 years,
or, if attending college, under or attaining the age of 23 years,
of the member of the police force shall be entitled to receive repayment
of all money which the member invested in the pension fund plus interest
or other increases in value of the member's investment in the pension
fund, unless the member has designated another beneficiary for this
purpose.
E.
Service-connected disability retirement. For all contributors
hired after July 1, 2003, the following service-connected disability
retirement provisions shall apply:
[Amended 3-7-2000 by Ord. No. 342; 10-21-2003 by Ord. No.
359]
(1)
A contributor may be retired by the Committee on a
service-connected disability allowance if he is under superannuation
retirement age, and on a superannuation retirement allowance if he
has attained or passes such age, if the physician designated by the
Committee after physical examination of the contributor made at the
place mutually agreed upon shall certify to the Committee that the
contributor is unable to perform the functions and duties of a police
officer on account of a service-connected disability and that said
contributor ought to be retired. No minimum period of service shall
be required for eligibility for a service-connected disability.
(2)
The benefit must be in conformity with a uniform scale and fixed
by the plan's governing document at no less than 50% of the member's
salary at the time the disability was incurred, reduced by the amount
of Social Security disability benefits received for the same injury.
[Amended 12-7-2015 by Ord. No. 434]
(3)
Should a disability annuitant die before the total
disability retirement allowance received shall be at least equal to
the amount of his accumulated deductions at the time of disability
retirement, then the Committee shall pay to the named beneficiary,
if living, or if the named beneficiary predeceased the annuitant or
no beneficiary was named, then to the annuitant's estate, an amount
equal to the difference between such total retirement allowance received
and the annuitant's accumulated deductions.
F.
Disability retirement. For all contributors hired
prior to July 1, 2003, the following disability retirement provisions
will apply:
[Added 10-21-2003 by Ord. No. 359[1]]
(1)
After a contributor has had 10 or in more years of
total service, he may, upon application or on application of one acting
in his behalf, be retired by the Committee on a disability allowance
if he is under superannuation retirement age, and on a superannuation
retirement allowance if he has attained or passes such age, if the
physician designated by the Committee after physical examination of
the contributor made at the place mutually agreed upon, shall certify
to the Committee that the contributor is unable to perform the functions
and duties of a police officer and that said contributor ought to
be retired. When the disability of a contributor is determined to
be service connected, no minimum period of service shall be required
for eligibility.
(2)
A disability annuity shall be sufficient to produce
a retirement allowance of 30% of the contributors final salary. Where
the disability of the member is determined to be service-connected,
the retirement allowance shall equal 50% of his final salary. The
disability annuity shall be reduced by the amount of any payments
for which the member shall be eligible under the Act of June 21, 1915
(P.L. 736, No. 338), known as the "Pennsylvania Workmens Compensation
Act," as amended,[2] or the Act of June 21, 1939 (P.L. 566M No. 284), known
as the "Pennsylvania Occupational Disease Act," as amended.[3]
(3)
Any contributor entitled to retire for disability
may, in lieu of such retirement, if he has eight or more years of
total service, elect to retire nonvoluntarily under the provisions
of this section.
(4)
Should a disability annuitant die before the total
disability retirement allowance received shall be at least equal to
the amount of his accumulated deductions at the time of disability
retirement, then the Committee shall pay to the named beneficiary,
if living, or if the named beneficiary predeceased the annuitant,
or no beneficiary was named, then to the annuitant's estate, an amount
equal to the difference between such total retirement allowance received
and the annuitant's accumulated deductions.
H.
Vesting. If a participant, before reaching superannuation retirement
age and having completed 12 years of total service, for any reason
ceases to be a full-time police officer, he shall be entitled to vest
his retirement benefits until he attains superannuation retirement
age by filing with the Committee a written notice of his intention
to vest within 90 days of the date of his termination. Upon reaching
the date which would have been his superannuation retirement date
if he had continued to be employed as a full-time police officer,
he shall be paid a partial superannuation retirement allowance determined
by applying the percentage his years of service bears to the years
of service which he would have rendered had he continued to work until
his superannuation retirement date to the gross pension, using, however,
the monthly average salary during the appropriate period prior to
his termination of employment.
[Amended 12-7-2015 by Ord. No. 434]
I.
Early retirement. A police officer shall be eligible
for early retirement benefit in accordance with this subsection. The
early retirement benefit shall be provided to a member of the police
force with 20 or more years of service who terminates employment prior
to the completion of superannuation retirement age and service requirements
and who files a written application for an early retirement benefit
with the Board of Supervisors of Upper Southampton Township. The early
retirement benefit shall become effective as of the date the application
is filed with the Board of Supervisors of Upper Southampton Township
or the date designated on the application, whichever is later, and
shall be the actuarial equivalent of a partial superannuation retirement
benefit calculated as follows:
[Added 7-5-2000 by Ord. No. 346]
(1)
A partial superannuation retirement benefit shall
be determined by applying the percentage that the member's years of
service bear to the years of service that the member would have rendered
had the member continued to be employed until his superannuation retirement
date to the gross pension amount calculated using the monthly average
salary during the appropriate period prior to his termination of employment.
(2)
The actuarial equivalent of the partial superannuation
retirement benefit shall be determined by actuarially reducing the
partial superannuation retirement benefit to reflect that it will
commence on the effective date of the early retirement rather than
on the date that the member would have completed superannuation age
and service requirements. The actuarial reduction shall be calculated
using the actuarial assumptions reported in the last actuarial valuation
report filed with the Public Employee Retirement Commission under
the Act of December 18, 1984 (P.L. 1005, No. 205) known as the "Municipal
Pension Plan Funding Standard and Recovery Act."[5]
[5]
Editor's Note: See 53 P.S. § 895-402
et seq.
J.
Cost of living increases. Benefits shall be increased
annually in proportion to changes in the Consumer Price Index. The
amount of such increases in the pensions of retired police are subject
to all the following limitations:
(1)
The percent increase in pension shall not exceed the
percent increase in the Consumer Price Index since the last year in
which the retired policeman last worked.
(2)
The pension after such increase shall not exceed 75%
of the final average base salary which was used as the basis for computing
the retired policeman's pension.
(3)
The total cost-of-living increase shall not exceed
30% of the retired policeman's pension at the time he retired.
K.
Social security offset. Benefits payable to participants
under the provisions of this article shall not be subject to a social
security offset.
L.
Designation of beneficiaries.
(1)
Each participant shall have the right to name the
beneficiary or beneficiaries for preretirement death benefits on policies
of insurance purchased by the fund; provided that the ownership of
such policies shall remain in the municipality's governing body and
shall be endorsed to prevent the assignment of ownership to the insured.
If the participant shall fail to name a beneficiary, such benefits
that would have accrued to his beneficiaries shall be paid to the
participant's estate.
(2)
Each participant may, from time to time, change the
beneficiaries in such form and manner as shall be prescribed by the
Committee.
M.
Death prior to retirement or retirement eligibility. The beneficiaries designated by the participant pursuant to Subsection B herein may be entitled to the death benefit of a policy of insurance purchased by the Police Pension Fund; provided that the participant, at the time of his/her death, is not retired according to the terms in Subsection B.
A.
Contributions by participants. Participant contributions
shall be paid into the fund by the Municipality through payroll deductions
in such manner and such time as the Committee may by rule and regulation
determine. Participant's contributions shall be reduced to 2% effective
the pay period starting on May 13, 2007, and shall remain in effect
through the last pay period in December 2009. Thereafter the contribution
shall be increased to 5%.
[Amended 4-28-1998 by Ord. No. 332; 5-19-1999 by Ord. No.
340; 3-19-2002 by Ord. No. 352[1]; 3-18-2003 by Ord. No. 356; 7-23-2007 by Ord. No.
384]
[1]
Editor's Note: Ordinance Nos. 332, 340 and
352 provided for the elimination of said contributions for the calendar
years 1998 through 2002.
B.
Reduction or elimination of participant's contributions.
The monthly contributions of the participants may be reduced below
the minimum percentage prescribed, or eliminated, on an annual basis
if an actuarial study indicates that such reduction or elimination
for that year will not adversely affect the actuarial soundness of
the fund. If the actuarial study so indicates, the reduction or elimination
shall be effected by ordinance, and it shall be effective for one
year. No reduction or elimination shall result in increasing the liability
of the municipality to the fund.
C.
Contributions of the municipality.
(1)
Prior service liability. It shall be the obligation
of the municipality to fund the prior service liability of participants
determined by the actuary based upon credit for all years of prior
service toward the municipal annuity of each original member; provided
that such liability may be funded over a period not to exceed 25 years.
The 25 years commences with passage of this article.
(2)
Future service liability. The actuary shall determine,
from time to time, the amount which shall be contributed annually
by the municipality for service credits of original and new participants.
The municipality shall have no liability for the future service cost
of the pension fund unless such cost is not met by the allocation
of commonwealth funds and participants' contributions. The maintenance
of the actuarial soundness of the fund shall be the responsibility
of the municipality.
(3)
Administrative expenses. It shall be the responsibility
of the municipality to pay the administrative expenses incurred in
the management of the fund; however, certain expenses may be paid
from the assets of the fund.
D.
Allocation of commonwealth funds. The payments made
by the State Treasurer to the municipality from the moneys received
from the taxes paid on the premiums of foreign casualty insurance
companies for purposes of pension retirement or disability benefits
for police officers shall be used as follows:
E.
Gifts, bequests, and grants. All other moneys and
property received by the Committee, including gifts, bequests, devises
and grants, shall, unless otherwise specifically provided, be applied
equally against the participants and the municipality portions of
the future service cost.
F.
Allocation of assets of existing pension fund(s).
Any assets of any existing pension fund for the members of the municipality's
Police Department are hereby transferred to the fund established by
this article and shall be applied against the unfunded liability.
A.
If for any reason a member of the police force of the municipality shall terminate service prior to superannuation retirement age, that member shall be entitled to a refund of accumulated deductions as defined in § 24-5.
B.
If the member shall subsequently return to service and return the accumulated deductions as defined in § 24-5 to the fund which were refunded to him/her upon termination, he/she shall be entitled to credit for the prior years of service to the extent of the return of contributions. Nothing in this section shall be construed to allow credit for service not actually given to the municipality, except as specifically provided in § 24-10.
A.
Any member of the police force employed by Upper Southampton
Township who has been regularly appointed officer of the Police Department
and shall enter 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 such person
returns or has heretofore returned to his employment within six months
after his separation from the service.
B.
An active member may also purchase credit for other
than intervening military service performed for the United States
in times of war, armed conflict or national emergency, so proclaimed
by the President of the United States, for a period not to exceed
five years; provided that the member has completed five years of service
to the Township subsequent to such military service, and files an
application with the Committee to purchase credit for nonintervening
military service upon completion of five years of subsequent service
to the Township.
(1)
The amount due from the member shall be certified
in accordance with methods approved by the actuary, and may be paid
in a lump sum within 30 days or it may be amortized with additional
interest through salary deductions in amounts agreed upon by the member
and the Committee.
(2)
The rate of interest to be charged to members on their
purchase of credit for intervening or nonintervening military service
shall be the rate being credited to member's contributions in effect
on the date of the member's application, compounded annually.
(3)
A member may purchase credit for intervening or nonintervening
military service only if his discharge or separation from the service
was granted under other than dishonorable conditions.
(4)
A member may not purchase credit for any military
service for which he is entitled to receive a retirement allowance
from the United States government.
Upon termination of the fund, the assets shall
be distributed as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 24-7 for all participants who have retired prior to termination, who are eligible for retirement at the time of the termination or who shall be entitled to vested retirement benefits.
B.
Of the remaining funds, those which can be identified
as municipality contributions or contributions other than from the
commonwealth allocation shall be distributed by resolution of the
Board of Supervisors.
C.
All funds in excess of the funds described in this
section shall be returned to the commonwealth as unused funds pursuant
to the Act of May 23, 1943, P.L. 259, as amended, 72 P.S. § 2263.1
et seq.
A.
Neither the establishment of the plan hereby created,
nor any modification thereof, nor the creation of any fund or account,
nor the payment of any benefits, shall be construed as giving to any
participant or other person any legal or equitable right against the
municipality, the Committee, the Board of Supervisors or any officer
or employee thereof, except as herein provided. Under no circumstances
shall the fund created hereby constitute a contract for continuing
employment for any participant or in any manner obligate the municipality
to continue or discontinue the services of an employee.
B.
This plan has been established and shall be maintained
by the municipality in accordance with the laws of the Commonwealth
of Pennsylvania. The plan shall continue for such period as may be
required by such laws and should such laws provide that the municipality
may, by its own action, discontinue this plan, the municipality reserves
the right to take such action. Upon termination the municipality shall
have no liability hereunder other than that imposed by law.
A.
All investment by the Committee of the assets of this
fund shall comply with guidelines established by the Commonwealth
of Pennsylvania and such regulations as the Pension Committee shall
establish for the purpose of investing such funds.
B.
The Committee may also purchase annuities or other
contracts or insurance which provide a cash value with which to fund
pensions; provided that the Committee shall determine the value of
any policies purchased, the company with which the contracts shall
be made, and the time to purchase such policies. The Committee shall
also have the obligation to insure that the policies purchased provide
benefits on a uniform scale and that such policies are endorsed to
the ownership of the municipality.
The Supervisors reserve the right to amend at any time, in whole or in part, any or all of the provisions of this article. However, no such amendment shall authorize or permit any part of the fund to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries or their estates. Nor shall any amendment divest a participant of benefits vested by § 24-7F. All such amendments shall comply with the applicable statutes of the commonwealth including but not limited to the Act of May 29, 1956, P.L. (1955) 1804, as amended, 53 P.S. § 767 et seq.
A.
This plan shall be constructed according to the laws
of the Commonwealth of Pennsylvania, and all provisions hereof shall
be administered according to the laws of such commonwealth.
B.
Whenever any words are used herein in the masculine
gender they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply, and wherever
any words are used in singular form they shall be construed as though
they were also used in the plural form in all cases where they would
so apply.
C.
Headings of sections and subsections of this article
are inserted for convenience of reference. They constitute no part
of this plan and are not to be considered in the construction hereof.
[Added 7-23-2007 by Ord. No. 384]
A Deferred Retirement Option Plan (DROP) is hereby established
as follows:
A.
Beginning January 1, 2007, an optional DROP program shall be made
available to any Upper Southampton Township police officer who has
fulfilled the age and service requirements as set forth above and
in Ordinance No. 241. The DROP program shall be an optional retirement
program in which an eligible member of the pension plan may elect
to participate, deferring receipt of normal retirement benefits while
continuing employment with the Township, without loss of any other
employee benefits.
B.
The DROP program is designed to allow an officer to accumulate a
lump sum cash amount for retirement without affecting his or her normal
monthly retirement benefit as of the date that he or she becomes a
DROP participant. Under DROP, the officer effectively makes a decision
to "retire" with respect to the pension plan only, yet continues to
work as an active police officer.
(1)
Eligibility: Any Upper Southampton Township police officer who
has fulfilled the age and service requirement as set forth above and
in Ordinance No. 241 shall be eligible to participate in the DROP
program. The officer may enter the program at his or her option in
conformance with this agreement and after providing at least 30 days'
written notice to the Township.
(2)
Entry into DROP: Election to participate in the program by an
eligible officer shall be made on any date following the date on which
the officer fulfills the minimum age and service requirements for
retirement under the pension plan. Once an officer commences participation
in the DROP program, he or she may not choose to end participation
in the DROP program and resume contributions to the pension plan.
(3)
Enrollment forms: Election to participate in the program shall
be made by completing the required request and enrollment forms, which
shall show the entry date into the DROP program and the deferred retirement
date tot the term chosen by the officer.
(4)
Term of the program: The DROP term shall be for a period of
up to a maximum of 36 months from the date of entry into the program.
Termination of participation in the DROP program shall take place:
(a)
At the end of the thirty-six-month period, or at any time prior
if the officer chooses to end his or her participation earlier than
36 months; or
(b)
If the thirty-six-month time limit is extended in future Collective
Bargaining Agreements, any member participating in the DROP program
at that time may, at his or her option, extend the DROP participation
period to that allowed under the current agreement; or
(c)
If the officer is terminated from employment for reasons set
forth under applicable Pennsylvania Law.
(5)
Status and contributions: Once enrolled in the DROP program,
the participant shall be retired under the pension plan for the purpose
of calculating pension benefits, unless otherwise prescribed herein,
but not for the purpose of employment with the Upper Southampton Township
Police Department. The DROP participant shall continue to receive
all employee benefits and programs as set forth in this agreement.
Once an officer enters the DROP program, he or she shall no longer
be required to make any contributions to the pension fund.
(6)
Retirement rate: Payments to DROP accounts will be made at the
participant's normal retirement monthly benefit amount, which is determined
by Act 600 approved May 29, 1956, P.L. 1804, Ordinance No. 241 and
this agreement.
(7)
Administration: DROP accounts shall be administered by an investment
manager who shall be selected, and agreed upon, by both the Township
and the Association. All DROP accounts shall receive the rate of return
experienced by the DROP Fund during the participant's DROP period.
The Township and Association agree that any costs or fees associated
with the management of the DROP program accounts shall be paid directly
from the DROP accounts within the Police Pension Fund and not by the
Township. Furthermore, the Township and the Association agree that
the investment risk is borne entirely by the participant in the DROP
program and not by the Township or the Police Pension Fund.
(8)
Disability issues: If, while an officer is enrolled in the DROP
program and he or she is injured while on duty, to the extent that
he or she is permanently disabled from performing police work for
Upper Southampton Township as a result of that service-connected disability,
the police officer shall be retired on the basis of a service-connected
disability, at the then-current normal monthly retirement benefit.
The officer has no claim for a disability pension once the officer
enrolls in the Drop program.
(9)
Survivorship options: If a DROP participant dies during his
or her participation period, all funds in the participant's account
shall be disbursed to the participant's beneficiary or beneficiaries
listed in the DROP contract. If the participant dies after receiving
the DROP account funds, further disbursements or disposition of those
funds shall be determined by the deceased participant's Last Will
and Testament and/or applicable state and federal estate laws.
(10)
Conflict with laws: If, after the DROP program is instituted,
an agency of the Commonwealth of Pennsylvania issues an official opinion
holding that this DROP plan is in conflict with Pennsylvania law,
the Township and the Association agree to meet within 30 days to discuss
such opinion and bring the DROP program into compliance with applicable
law, if possible. If no agreement can be reached, or if there is a
dispute as to the validity of the official opinion, either or both
parties may submit the dispute to the Court of Common Pleas of Bucks
County for a declaratory judgment. If the DROP program cannot be brought
into compliance with Pennsylvania Law, it shall be terminated subject
to any constitutionally vested rights of the participants. It is the
intention of the parties that the DROP program will only be terminated
if a final determination is made that the program cannot be brought
into compliance with applicable Pennsylvania Law.
(11)
Killed in the line of duty: If a DROP participant dies during
the DROP period and the Act 600 Killed in Service Death Benefit is
payable to the survivor of the DROP participant, then the DROP election
shall be deemed withdrawn and the DROP account shall not be payable
to any designated beneficiary, but rather shall revert to the corpus
of the plan. In such a case, the Act 600 Killed in Service Benefit
shall be payable.
(12)
Death while on DROP: If a DROP participant dies during the DROP
period, and the Act 600 Killed in Service Benefit is not payable,
the officer shall be honorably discharged as of the date of death,
and the designated beneficiary shall be entitled to a lump sum payment
of the DROP account, together with any applicable survivor benefit
authorized by the plan.
C.
The actual date of availability of the DROP program will commence
with the start of the Collective Bargaining Agreement and the appointment
of a mutually agreed upon investment manager, whichever is later.
