The following persons shall be entitled to receive pension benefits/retirement benefits/service-related disability benefits, as hereinafter provided:

Any member of the police force who has been a regularly appointed employee of this municipality for a period of at least six months and who thereafter 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.

The amount of pension or retirement benefits payable to any policeman under the Police Pension Program hereby established shall be a sum equal to 1/2 of the monthly average salary of the participant during the last 36 months of employment. Such retirement benefits shall be payable monthly during the balance of the participant's life following actual retirement, and the benefits for any month shall be computed as the sum of any pension benefits from pension plans heretofore established by a private organization or association for the members of the police force but only to the extent that the commonwealth or any of its municipalities shall have contributed to such pension plan moneys raised by taxation, 25% of the primary benefits under federal social security laws from which the participant may be eligible because of age or disability and benefits from the pension fund established hereunder to the extent necessary to bring the total benefits in any month up to 1/2 of the aforesaid monthly average salary. Pension payments made under the provisions of this chapter shall not be a charge on any other fund in the treasury of the municipality or under its control save the Police Pension Fund.

A service-related disability benefit equal to the actuarially reduced equivalent of his accrued benefit.

Each participant shall contribute monthly into the pension fund established hereunder an amount equal to the sum of the product determined by multiplying the total monthly compensation on which social security taxes are payable by 2.75% plus the product obtained by multiplying the amount of total monthly compensation in excess of that on which social security taxes are payable, if any, by 5%. All such contributions by participant shall be deducted by the municipality from the participant's salary. Any balance of needed annual contributions shall become the obligation of the municipality and shall be paid to the pension fund by annual appropriations.

This municipality reserves the right to reduce or eliminate payments into the fund by participants on an annual basis, by resolution, if an actuarial study shows that if such payments are reduced or eliminated, contributions by the municipality will not be required to keep the fund actuarially sound.

Any payments made by the Commonwealth of Pennsylvania to the municipality for police pension purposes shall be used as follows:

The Police Pension Fund shall be administered in accordance with the provisions of Act 600 and shall be under the direction of a Police Pension Committee which shall consist of two members of the Borough Council of East Greenville, two members of the Borough Council of the Borough of Pennsburg and two members of the Borough Council of Red Hill, said members to serve for a period of one year each and to be designated to serve in such capacity by resolution of the Borough Councils of the three member municipalities. The members of the Police Pension Committee shall act as Trustees of the pension fund, and such Trustees shall have full responsibility for the administration of the program established hereunder and shall hold, invest, reinvest and distribute all funds or other property received pursuant hereto in trust for the purposes of this chapter. The Trustees may receive at any time and from time to time gifts, grants, devises or bequests to the pension fund of any money or property, real, personal or mixed, to be held by them in trust for the benefit of this fund and in accordance with the provisions hereof. The Trustees shall be subject to such rules and regulations as may from time to time be adopted by the governing body of this municipality by ordinance or resolution.

The Trustees shall have full power and authority by a majority action of its members, either directly or through their designated representatives, to do all acts, to execute, acknowledge and deliver all instruments and to exercise for the sole benefit of the participants hereunder any and all powers and discretions necessary to implement and effectuate the purposes of this chapter, including, for purposes of illustration, but not limited to any and all of the following:

The pension payments herein provided for shall not be subject to attachment, execution, levy, garnishment or other legal process and shall be payable only to the participant or his designated beneficiary. No participant or his beneficiary shall have any right to alienate, encumber or assign any assets of the fund held by the Trustees on his behalf nor any of the benefits or payments or proceeds of any contract or agreement purchased or acquired by the municipality hereunder.

Any contract or agreement purchased or acquired pursuant to this chapter upon the life of such participant shall contain a provision, in substance, that to the extent permitted by law none of the benefits or payments or proceeds of such contract or agreement shall be subject to any legal process by any creditor of such participant or beneficiary of such participant.