[HISTORY: Adopted by the Borough Council of the Borough of Marcus Hook as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Civil Service Commission — See Ch. 10.
Social security — See Ch. 54.
[Adopted 2-1-1999 by Res. No. R-99-3, approved 2-1-1999; amended in its entirety 12-3-2012 by Res. No. R-12-9, approved 12-3-2012]
[1]
Editor's Note: Former Art. I, Police Membership in Pennsylvania Municipal Retirement System, adopted 6-2-1980 by Res. No. R-80-10, approved 6-2-1980, was repealed 2-1-1999 by Res. No. R-99-2, approved 2-1-1999.
Effective as of January 1, 2013, the accompanying joinder agreement and the terms of the Pennsylvania State Association of Boroughs Master Retirement Trust are hereby adopted by the employer, to be known as the "Borough of Marcus Hook Police Pension Plan."[1]
[1]
Editor's Note: Said plan is on file in the Borough offices and may be examined there during regular business hours.
[Added 1-6-2020 by Ord. No. O-20-1, approved 1-6-2020]
This section establishes and implements an Act 44 Deferred Retirement Option Program. A police officer who reaches normal retirement date shall be eligible to participate under the Act 44 Deferred Retirement Option Program ("DROP" or "Act 44 Program"), subject to the following requirements.
A. 
Title. This section shall be known as the "Marcus Hook Borough Act 44 Deferred Retirement Option Program."
B. 
Definitions. When used in this section, the below words shall have the meanings indicated.
ACT 44 DEFERRED RETIREMENT OPTION PROGRAM
The Pension Payments Plan approved by the Pennsylvania Legislature September 18, 2009, amending Title 53 as it relates to Municipal Police Pension Plan.
ACT 44 PROGRAM ACCOUNT
Separate account created to accept Act 44 Program participants' monthly pension check while an Act 44 Program participant, as well as any interest thereon.
BOROUGH
Borough of Marcus Hook, Delaware County, Pennsylvania.
DROP PERIOD
"Act 44 DROP period" means the period beginning as of the participating police officer's written election notice as acknowledged by the employer and continuing until that police officer's separation from employment as a police officer of the employer, but in no event to exceed 60 months.
FUND or PLAN
The Municipal Police Pension Plan.
PARTICIPANT
A police officer who meets the eligibility for and has executed the proper documents for participation in the Act 44 Program.
POLICE OFFICERS
Police officers of the Police Department.
C. 
Eligibility. Eligibility for the Act 44 Program shall be determined as follows:
[Amended 2-1-2021 by Ord. No. O-21-1,[1] approved 2-1-2021]
(1) 
Police officers who have not retired prior to the implementation of the Act 44 Program may enter into the Act 44 Program on the first day of any month coincident with, or following, satisfaction of the age and service requirements: at least 53 years of age and have completed 25 years of service, as provided by the collective bargaining agreement.
[1]
Editor's Note: This ordinance shall be effective retroactively to 1-1-2020.
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 Borough, 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 to the Borough Secretary. The Act 44 Program Participation Election Form shall include an irrevocable notice to the Borough, 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 Borough properly terminates or honorably discharges the officer prior to the resignation date. A participant may resign from employment while in Act 44 Program status, which shall terminate his/her participation in the Act 44 Program.
(2) 
In addition to the above information, the Act 44 Program Participation Election Form shall also advise the employee of the following:
(a) 
An explanation of the participant's rights and obligations while in Act 44 Program, including the participation period of 60 months;
(b) 
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
(c) 
That the Act 44 Program participant's service while in 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. 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 Borough 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 Borough 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. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Pension Program. 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.
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 Act 44 Program, accumulate to the benefit of that officer and be paid into 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 by the Borough 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 non-pension 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 Program 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 Borough shall implement Subsection H(1) above.
I. 
Service-connected disability during Act 44 Program. If an eligible DROP participant becomes temporarily incapacitated during his participation in the Act 44 Program, the 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 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 Program 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 Borough to lawfully discharge a police officer based upon their inability to resume 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/her 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 the 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 to 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. Reasonable costs or fees associated with the implementation or their individual management of the Act 44 Program account shall be paid directly and solely by the participant and not by the Borough.
M. 
Amendment. Any amendments to the Act 44 Program ordinance 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 Borough'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 Borough 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 will be January 1, 2020.
[Adopted 11-2-2020 by Ord. No. O-20-4,[1] approved 11-2-2020]
[1]
Editor’s Note: This ordinance also repealed former Article II, Pennsylvania Municipal Retirement System, adopted 2-4-2013 by Ord. No. O-13-3, approved 2-4-2013.
Marcus Hook Borough (the Borough), having established a non-uniform pension plan administered by the Pennsylvania Municipal Retirement System (the System), hereby elects to amend its Non-Uniform Pension Plan administered by the System in accordance with Article IV of the Pennsylvania Municipal Retirement Law, 53 P.S. § 881.101 et seq. (Retirement Law), and does hereby agree to be bound by all the requirements and provisions of the Retirement Law and the Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101 et seq., and to assume all obligations, financial and otherwise, placed upon member municipalities.
As part of this article, the Borough agrees that the System shall administer and provide the benefits set forth in the amended Non-Uniform Pension Plan Document entered into between the Pennsylvania Municipal Retirement Board and the Borough effective September 1, 2020 (the Contract).
Payment for any obligation established by the adoption of this article and the Contract shall be made by the Borough in accordance with the Retirement Law and the Municipal Pension Plan Funding Standard and Recovery Act.[1] The Borough hereby assumes all liability for any unfundedness created due to the benefit structure set forth in the Contract.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
The Borough intends this article to be the complete authorization of the Contract, as amended, and it shall become effective and specifically repeal Ordinance Number O-13-3 either immediately upon adoption of this article or on September 1, 2020, which is the effective date of the Contract, whichever is later.