[HISTORY: Adopted by the Borough Council
of the Borough of Prospect Park 5-14-1958 by Ord. No. 742, approved 5-14-1958; amended in
its entirety 4-8-1997 by Ord. No. 1187, approved 4-8-1997. Subsequent
amendments noted where applicable.]
Pursuant to the requirement of the Act of the
General Assembly in such case made and provided, there is hereby established
a Police Pension Plan and Fund.
The following terms, whenever used or referred
to in this chapter, shall have the following meanings, except in those
instances where the context indicates otherwise:
A former contributor in receipt of a superannuation retirement
allowance or other benefit provided by this act.
A person designated by a contributor or an annuitant to receive
benefits after the death of such contributor or annuitant.
The seven-member Pension Board appointed by the Borough Council
to assist in the administration of and oversee the pension plan.
The Borough of Prospect Park, in the County of Delaware and
Commonwealth of Pennsylvania, and any municipality into which said
borough may be merged or consolidated or by which it may be succeeded
and which may adopt this plan.
The average monthly salary earned by the participant during
the last 36 months of employment prior to retirement. Overtime pay,
bonuses, premiums or other nonrecurring compensation shall be excluded
in determining such average salary.
A full-time officer and full-time member of the police force
of the Borough of Prospect Park, not including probationary status
police officers.
The investment earnings on the fund in excess of that required
for allocation to regular interest and expenses.
The Police Pension Fund established pursuant to this chapter.
Any insurance company or companies from which there is purchased
any insurance or annuity contract or policy to provide in whole or
in part benefits contemplated by this plan.
Any employee who has qualified under this agreement and the
terms of the contract between the Borough and the Fraternal Order
of Police.
The Police Pension Plan of the Borough of Prospect Park.
Any person who has been named by a member under a joint and
survivor annuity option to receive an annuity upon the death of such
member.
The fund herein established shall be maintained
by contributions made by payroll deduction against compensation payable
to each member of the police force; by annual appropriations made
by the Borough of Prospect Park; by payments made by the State Treasurer
to the Borough Treasurer from the moneys received from taxes paid
upon premiums by foreign casualty insurance companies for the purpose
of pension retirement; and by gifts, grants, devises or bequests granted
to the pension fund pursuant to law.
The fund will be maintained under the direction
of the Borough Council and administered by the Police Pension Board
under such regulations as the Council may from time to time by ordinance
or resolution prescribe for the benefit of such members of the police
force as shall receive honorable discharge therefrom by reason of
age, service, death or disability.
All full-time police officers of the Borough
employed on January 1, 1957, shall immediately become members of this
plan. All future full-time police officers who are subject to the
provisions of civil service shall become members of the plan following
the completion of any probationary status and one month of regular
service.
Except as provided elsewhere in this chapter,
any officer, whether a member or not, who leaves the service of the
Borough before retirement under this plan must qualify as a member
upon reentering its service as if he had not previously been an officer.
For all purposes of this plan, service of the
Borough shall include leaves of absence granted by the Borough Council;
absence due to illness, disability and vacation leaves; and service
in the armed forces of the United States during a period of national
emergency, provided that the employee returns to the employ of the
Borough within six months from the date of his eligibility for honorable
discharge or upon release from said armed forces.
[Added 8-14-2018 by Ord.
No. 1345; approved 8-14-2018 by Ord. No. 1345]
A.
A participant may receive full credit for each year, or fraction
thereof, of service in the military of the United States of America,
not to exceed five years, if such participant was not employed by
the Borough prior to such military service, upon making such contributions
as set forth below.
B.
The contribution due by the participant in order to receive the full
credit provided for in the subsection above shall be computed by applying
the average normal cost rate for the Borough Police Pension Plan as
certified by the Public Employee Retirement Commission, but not to
exceed 10% to the participant's average annual rate of compensation
over the first three years of Borough service and multiplying the
result by the number of years and fractional part of a year creditable
nonintervening military service being purchased together with interest
at the rate of 4 3/4% compounded annually from the date of initial
entry into Borough service as a full-time officer to the date of payment.
A participant eligible to retire at (55) years
of age may continue in the employ of the Borough after his normal
retirement date upon request made to Borough Council and approved.
Such extended service shall be allowed on an annual basis only. No
retirement benefits shall be paid until actual retirement.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004]
A.
Normal retirement date: Participants shall be eligible
for normal retirement benefits upon the "later" of the attainment
of age 50 and the completion of 25 years of service.
B.
Normal retirement benefits: The amount of retirement
benefits shall be computed at 50% of the participant's average monthly
compensation earned during the final 36 months of employment with
no social security offset.
C.
Cost-of-living adjustment: There shall be a cost-of-living
increase for all police officers after retirement (whether for service
or disability); provided, however, that such cost-of-living increase
shall not exceed the percentage increase in the Urban Wage Earners
and Clerical Workers CPI for the Philadelphia area from the year in
which the police member (participant) last worked; provided, further,
that in no case shall the total police pension benefits exceed 75%
of the salary for computing retirement benefits and no more than a
5% increase in any one year; and provided, further, that the total
cost-of-living increase shall not exceed 30% of the retired member's
initial pension benefit. Furthermore, no cost-of-living increase shall
be granted which would impair the actuarial soundness of the pension
plan.
D.
Service increment benefit: An additional service increment
retirement benefit shall be provided to a retired participant if such
participant has completed 26 or more years of service. Service for
purposes of this section shall only include periods of time when the
participant actively renders service in employment with the Borough
or was receiving workers' compensation benefits as a result of employment
with the Borough and shall not include any period of time during which
the participant received a disability benefit under the team of the
plan or was not otherwise in active employment with the Borough. Such
service increment benefit shall be in an amount equal to $100 per
month.
E.
Vested benefits upon termination: In lieu of receiving
a refund of accumulated contributions, a participant who has completed
at least 12 years of total service with the Borough and who ceases
to be an employee of the Borough for any reason other than death,
retirement or disability shall vest, at the option of the participant.
Such vesting option must be exercised by the participant by filing
a written notice of his/her intention to vest within 90 days of the
date he/she ceases to be an employee of the Borough. A participant
who exercises such an option shall be eligible, upon attainment of
what would have been his/her normal retirement date (based on the
terms of the plan in effect upon termination of employment), had he/she
continued to be an employee of the Borough, to a vested retirement
benefit. The amount of partial retirement benefits shall be determined
by applying the percentage his/her actual years of service bear to
the years of service which he/she would have rendered had he/she continued
to work until the normal retirement date to the gross pension, using,
however, the monthly average compensation earned during the appropriate
period prior to termination of employment. If a participant elects
to vest his benefit but dies prior to the commencement thereof, the
participant's survivor will be paid a survivor benefit equal to 50%
of the vested pension benefit that would have been paid to the deceased
participant upon the date that payments would have been made to the
deceased participant. If no survivor exists, the beneficiary of such
deceased participant shall be entitled to a refund of the participant's
accumulated contributions, with interest.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004; 7-12-2005 by Ord. No.
1266, approved 7-12-2005]
A.
"Total and permanent service-connected disability"
shall mean a condition of physical or mental impairment due to which
a participant is unable to perform the usual and customary duties
of an employee and which, in the opinion of a physician acceptable
to the Borough, is reasonably expected to continue to be permanent.
A condition shall not be treated as a total and permanent disability
unless such condition is a direct result of and occurs in the line
of duty as an Employee. Therefore, an employee whose physical or mental
impairment does not occur in the line of duty, or which is the result
of alcoholism, addiction to narcotics, perpetration of a felonious
criminal activity or is willfully self-inflicted, is not entitled
to receive, disability benefits under the plan. A participant must
submit satisfactory evidence and other proof of such disability as
may be required by the Borough. Determination by the Social Security
Administration that such participant is entitled to disability benefits
under the Federal Social Security Act may also be considered by the
employer as evidence of total and permanent disability, although such
entitlement is not conclusive.
B.
Disability retirement benefits: In the case of a total
and permanent service-connected disability of any participant, such
participant shall be deemed to have retired as of the date of such
disability. The disability retirement benefit shall be a monthly amount
equal to 70% of the participant’s salary at the time the disability
was incurred.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004]
A.
If a participant shall die after the commencement
of retirement benefits hereunder (including disability), or after
the participant is eligible to retire but before retirement benefit
payments commence, or after eligibility for a deferred vested benefit,
a survivor benefit shall be paid to the surviving spouse, if any,
of the participant in an amount equal to 50% of the participant's
retirement benefit or deferred vested benefit as of the date of death.
B.
In the event a participant dies as a result of the
performance of his duties, the participant's survivors shall receive
those benefits provided for and subject to the terms of Pennsylvania
Act 51 of 2009, approved October 9, 2009, codified at 53 P.S. § 891,
and as such may be amended from time to time, which benefits are paid
exclusively by the Commonwealth of Pennsylvania with the exception
of any pension benefit to which the participant was entitled prior
to the participant's death, solely by virtue of the participant's
service as a Borough police officer.
[Amended 12-11-2012 by Ord. No. 1321, approved 12-11-2012]
C.
The survivor benefit shall commence as of the first
day of the month coincident with or immediately following the date
of death of the participant (except for deceased participant entitled
to a deferred vested benefit) and shall be paid monthly to the surviving
spouse until the date of death of the surviving spouse. In the case
of a death of a participant who is eligible for a deferred vested
benefit prior to commencement of payments, payments to the surviving
spouse shall commence upon the date the deceased participant would
have begun receiving the deferred vested benefit. Upon the death of
the surviving spouse, or if no spouse survives, the survivor benefit
shall be paid monthly in equal shares to the surviving dependent children
of the deceased participant. Dependent children shall include the
children of the deceased participant who have not attained at least
18 years of age, or if attending college, under or attaining the age
of 23 years. The shares payable to the surviving dependent children
shall be adjusted as each child ceases to be eligible to receive a
share of the benefit hereunder. The phrase "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.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004]
If a participant shall die before eligibility
for retirement benefits hereunder, the participant's designated beneficiary
shall be eligible to receive a distribution of the participant's accumulated
contributions, with interest at the rate of 4% compounded annually,
as of the date of death of the participant.
[Amended 4-13-2004 by Ord. No. 1252, approved 4-13-2004]
A.
Participant contributions: Each participant as a requirement of participation pays regular contributions to the plan in an amount equal to 5% of the participant's compensation (subject to reduction pursuant to Subsection B hereof). Each participant should complete the necessary forms to authorize the payment of participant contributions by way of payroll deduction.
B.
Reduction of participant contributions: The Borough
may, on an annual basis, by ordinance or resolution, reduce or eliminate
payments into the plan by participants. Such reduction or elimination
is usually subject to the terms and conditions, or limitations, if
any, contained in any bargaining agreements between the Borough and
the employees. The reduction or elimination of participant contributions
shall not permit the return of contributions or any interest or plan
earnings to be made to participants while an active employee.
C.
Return of accumulated contributions: If a participant
whose employment with the Borough has been terminated for any reason
and he/she is neither eligible for a pension under the plan nor has
he/she elected to vest his/her benefit, such participant or the designated
beneficiary shall be entitled to receive a refund of the participant's
accumulated contributions to the plan, plus interest credited at 4%,
compounded annually. Upon receipt of such accumulated contributions,
said participant and his or her beneficiary shall not be entitled
to any further payments from the plan.
The fund shall be created and maintained in
the following manner:
A.
All funds on deposit and held for pension or retirement
benefits of the Prospect Park police officers shall be transferred
to and held by the fund created herein.
B.
The allocation, by the Borough Council, of payments
made by the Treasurer of the Commonwealth from the moneys received
from the General Pension System State Aid Program shall be paid into
the fund. At a minimum, moneys received for the equivalent of two
units per officer shall be paid into the fund.
C.
Payments made by the contributions of the police officers
in accordance with the plan, as may be in effect from time to time,
and subject to the applicable collective bargaining agreement shall
be paid into the fund. Members' contributions shall be made through
payroll deductions on all compensation received by the officers in
the frequency that those compensations occur. These deducted contributions
shall be paid into the fund on the day they are deducted.
D.
Payments made by other gifts, grants, devises or bequests
made to the fund.
E.
Such other payments as may, from time to time, be
made by the Borough Council to the fund from the general revenue of
the Borough.
F.
All such payments received shall be deemed to be a
part of the fund and shall not be applied to any other pension fund
or account or disbursed in any manner, except as provided herein.
G.
Payments required under the plan shall be a charge
only upon the fund and not upon any other moneys or funds of the Borough.
A.
The Board shall have full power and authority to make
all decisions in accordance with the terms of this plan, including
but not limited to the following:
(1)
To determine all questions relating to the eligibility
of police officers to become members of the plan.
(2)
To compute and certify to the Plan Administrator the
amount and nature of benefits payable to participants.
(3)
To make and publish such rules and regulations for
the administration of the plan as are not inconsistent with the terms
of the plan or the applicable statutes and ordinances.
(4)
The Borough Council shall supply complete and timely
information to the Board on all matters relating to the compensation
of all members of the police force, the contracts between the Borough
and the police force, retirement death or disability and all other
causes for termination of employment as. well as all such other pertinent
data as the Board may require to carry out its duties and responsibilities
hereunder. The Board shall be responsible to transmit to the plan
administrator and to the money manager and investment consultant such
information as each requires to properly discharge his or her responsibilities
for the Borough and the Police Pension Fund.
A.
Payments shall be applied, first, to pay expenses
properly incurred for the administration of the pension fund.
B.
Next, the payments made by the State Treasurer to
the Borough from the moneys received from taxes paid upon premiums
by foreign casualty insurance companies for purposes of pension, retirement
or disability benefits for municipal policemen shall be used as follows:
(1)
To reduce the unfunded liability of the Borough and
after such liability has been funded;
(2)
To apply against the annual obligation of the Borough
for future service and disability reserve costs and to the extent
that the payment is in excess of such obligations;
(3)
To reduce members' contributions.
C.
All other moneys paid into the fund shall be applied
to reduce equally the member and the Borough obligations for future
service costs.
D.
The Borough shall apply all moneys received from the
commonwealth only in accordance with the applicable statutes, as amended.
The pension payments herein provided for shall
not, so far as consistent with state law, be subject to attachments,
execution, levy, garnishment or other legal process, shall be payable
only to the participant or his designated beneficiary and shall not
be subject to assignment or transfer.
The expense of the administration of this chapter,
including all duly incurred administration expenses, shall be paid
out of the moneys of the Police Pension Fund.
The Borough reserves the right to amend this
plan without the consent of any participant or beneficiary; provided,
however, that no amendment to this plan shall deprive any participant
of any vested equitable interest herein.
A.
The Police Pension Board is hereby established for
the purpose of administering the Prospect Park Police Department Pension
Fund, and which Board shall be known as the "Prospect Park Police
Department Pension Board" (hereinafter "Board").
B.
The Board shall consist of seven members, two of whom
shall be members of the Borough Council, including the member serving
as the Borough Council Chairman of Police, the Chief of Police or
his designee, one full-time, active police officer and three members
of the community who possess special skills or backgrounds in finance
or investment. Vacancies to the Board shall be filled by a majority
vote of the Prospect Park Borough Council.
C.
Members of the Board shall serve without compensation
but will be covered by a fiduciary insurance policy.
D.
Each member of the Board shall be appointed to serve
a two-year term, provided that any member of the Board who is a police
officer shall cease to be a member of the Board on the last day of
his/her employment as a police officer. Any member of the Board who
is a member of the Borough Council shall cease to be a member on the
last day he/she holds elected office. For the first year, four members
shall be appointed for two-year terms and three members shall be appointed
for three-year terms. Members of the Board may succeed themselves
for the appointed terms. Every year at the January meeting the Board
shall elect a Chairman, Vice Chairman and Secretary of the Prospect
Park Police Pension/Investment Board.
E.
No member of the Board shall be liable for any act
or omission of any other member of the Board nor for any act or omission
on his own part excepting only his willful misconduct. The Borough
shall indemnify and save harmless members of the Board from all claims
or liabilities arising out of his/her membership on the Board, except
for those claims, expenses and liabilities arising out of the Board
member's own willful misconduct.
F.
No member of this Board shall vote on any matter in
which he/she has a direct personal interest.
G.
The action of the Board shall be determined by the
vote or other affirmative expression of a majority of its members.
All actions of the Board shall be certified by the Chairman and attested
to by its Secretary. The Board shall keep a record of all its proceedings
which will be open to inspection by the public.
H.
The Board shall meet at least quarterly and at other
times at the call of the Chairman or the request of a majority of
the Board.
The powers and duties of the Board shall be
as follows:
A.
The members of the Board shall be trustees of the
fund and shall have the right, as fiduciaries, to administer the plan
in accordance with an agreement of trust entered into with the Borough
Council of Prospect Park and the money manager, which agreement of
trust shall permit the money manager to administer the fund and to
receive, hold, invest, reinvest, sell, assign, transfer and dispose
of any securities and investments and disperse any sum or sums as
may be necessary to carry out the plan and comply with all other applicable
statutes, ordinances and regulations.
B.
To provide guidance to the money manager of the fund
through an investment consultant for the investment of all moneys
deposited in such fund and the reinvestment of all earnings of the
funds.
C.
To promulgate and adopt, from time to time, such rules
and regulations as may be required for the proper administration of
the Police Pension Plan and of the fund and for the transaction of
the business of the Board.
D.
To contract for, with the advice and approval of the
Borough Council, professional services, including but not limited
to actuaries, accountants, auditors, attorneys, money managers and
an investment consultant as it may deem advisable in order to carry
out its duties hereunder. The expenses of the administration of the
fund and the plan shall be paid from the assets of the fund on requisition
signed by the Chairman and Secretary of the Board.
E.
To contract for, with the advice and approval of the
Borough Council, a plan administrator, who shall be the Chief Administrative
Officer of the pension fund, who shall be responsible for ensuring
the day to day compliance by the fund with the requirements of the
plan and fund to meet Act 205 and Act 195 mandates as well as those
duties and responsibilities established by the Board. The Chief Administrative
Officer's duties and responsibilities shall include, but are not limited
to:
(1)
Filing actuarial reports with the Public Employee
Retirement Study Commission by the dates so required.
(2)
Annual certification of the Borough's minimum financial
obligation not later than the last business day of September each
year for the following budget year. At a minimum, the amount certified
shall be budgeted in the annual Borough budget.
(3)
Annually certify to the Department of Auditor General
regarding the number of employee units applicable to the Police Department.
Officers must have been employed full time a minimum of six months
prior to December 31 proceeding the date of each certification to
qualify for certification. Employee units for police officers shall
be two each.
(4)
The Chief Administrative Officer will annually certify
to the Commission that all Act 205 and Act 195 mandates were met.
F.
To designate the fund custodian for the depository
of all moneys to be contributed to the pension fund.
G.
The Board shall, when requested by Borough Council
during times of contract negotiations, explore the possibility of
increasing pension benefits of members and shall authorize actuarial
studies for such inquiries. The party requesting such studies shall
pay the costs of all such studies.
A.
The fund shall be deposited with, managed and invested
by a bonded and insured money manager which shall carry out its responsibilities
in accordance with the terms of the trust agreement; and, further,
subject to such investment policy and guidance as the Board shall,
from time to time, provide to the money manager directly or through
an investment consultant.
B.
The pension plan shall be administered on a day to
day basis by the plan administrator, who shall be the Chief Administrative
Officer of the pension fund, who shall receive and act as the custodian
for all notices required to be sent to the Pension Fund Board.
[Added 7-11-2017 by Ord.
No. 1341; approved 7-11-2017 by Ord. No. 1341]
A.
Title. This Section shall be known as the "Prospect Park Borough
Police Act 44 Retirement Program."
B.
ACT 44 PROGRAM
ACT 44 PROGRAM ACCOUNT
BOROUGH
DROP
FUND or PLAN
PARTICIPANT
POLICE OFFICERS
Definitions. When used in this section, the below words shall have
the meaning indicated.
The ACT 44 DEFERRED RETIREMENT OPTION PROGRAM referred to
in the collective bargaining agreement between the Prospect Park Borough
Police, represented by the Delaware County Fraternal Order of Police,
Lodge #27 and the Borough of Prospect Park.
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.
Borough of Prospect Park, Delaware County, Pennsylvania.
Deferred Retirement Option Program.
The Police Pension Plan.
A police officer who meets the eligibility for and has executed
the proper documents for participation in the Act 44 Program and has
had such application approved by the Borough.
Police officers of the Police Department.
C.
Eligibility. Eligibility for the Act 44 Program shall be determined
as follows: 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 the month following completion of 25 years of credited service
and attaining the age of 50, i.e., superannuation date.
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: (1)
an explanation of the participant's rights and obligations while
in Act 44 Program; (2) 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 (3) 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.
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 Borough for approval
of retirement and payment of pension. Once an Act 44 Program participation
election form has been approved by the Borough, 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 Borough again.
(3)
Any officer who shall have been eligible to be a participant
in this program on January 1, 2016, (the effective date of the Collective
Bargaining Agreement) through to the effective date of this section
may, within 45 days after the effective date of this section, make
the written election to participate in the program and may designate
an effective date on or after January 1, 2016, when that officer desires
his participation in the program to commence (the "look-back period").
After 45 days from the effective date of this section, officers shall
not be eligible to designate a prior effective date during the look-back
period.
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 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.
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 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 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 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 § 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 § 402(c)(9).
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 the 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 who 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 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 Borough
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 subject to applicable cost-of-living
adjustments.
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 through 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
Borough agree that any costs or fees associated with the management
of the Act 44 Program accounts shall be paid directly by the participants
and each participant's Act 44 retirement account is subject to
an annual charge of $40, plus 0.60% annual asset charge, payable out
of said account. Should the Borough assert the need to increase such
charge, the parties shall negotiate.
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 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 shall be
January 1, 2016.
Should any section or provision of this chapter
be declared by a court of competent jurisdiction to be invalid, such
decision shall not affect the validity of this chapter as a whole,
or of any part thereof.
