[HISTORY: Adopted by the Board of Supervisors of the Township
of Schuylkill as indicated in article histories. Amendments noted
where applicable.]
[Adopted 4-4-2001 by Ord. No. 01-01]
A. As used in this article, the following terms shall have the meanings
indicated:
AGE
The age attained by the employee at his or her last birthday.
AVERAGE APPLICABLE COMPENSATION
The average monthly earnings of the member at any time of
reference computed over the last 36 months (or such shorter period
as represents the member's total period of continuous employment by
the Township prior to such date of reference). For purposes of computing
average applicable compensation, actual monthly earnings shall be
based on W-2 earnings, excluding any compensation paid as "sick time
sell-back" as defined in the Collective Bargaining Agreement by and
between the Schuylkill Township Police Association and Schuylkill
Township.
[Amended 12-2-2020 by Ord. No. 2020-06]
BOARD
The Board of Supervisors of the Township of Schuylkill and
one representative selected by the Schuylkill Township Police Association
(STPA).
[Amended 1-7-2013 by Ord.
No. 2013-01]
CHIEF ADMINISTRATIVE OFFICER
The person who has primary responsibility for the execution
of the administrative affairs of this pension plan, or the designee
of that person.
COMPENSATION
Based on W-2 earnings in which all forms of earnings are
derived from the terms and conditions of the employee's employment,
excluding any compensation paid as "sick time sell-back" as defined
in the Collective Bargaining Agreement by and between the Schuylkill
Township Police Association and Schuylkill Township.
[Amended 12-2-2020 by Ord. No. 2020-06]
EARLY RETIREMENT DATE
The first day following the date on which the member completes
20 years of service.
EMPLOYEE
Any sworn police officer in the full-time employ of the Township
Police Department whose customary employment is for not less than
40 hours a week.
FUND
All assets held by the trust under the trust agreement relating
to this police pension plan.
MEMBER
Any sworn police officer in the full-time employ of the Township Police Department who has satisfied the eligibility requirements established in §
45-2 hereof and who is, at the time of reference, or has prior to their elimination, been making such contributions as may be required pursuant to §
45-3A hereof.
NORMAL RETIREMENT DATE
The first day following the date on which the member completes
25 years of service, and the date on which the member attains age
50.
PLAN
The Police Pension Plan for the Township of Schuylkill, as
herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
SERVICE
The aggregate of member's total periods of employment as
a full-time employee of the Township. If a member enters military
service, either voluntarily or by conscription, after he has been
employed for at least six months, such time spent in the Armed Forces
of the United States during a period of wartime of general military
conflict shall be counted as service for purposes of the plan, provided
that such member returns to police service with the Township within
six months after his discharge or release from such active duty in
the Armed Forces of the United States. The time spent in military
service due to voluntary extension of such military service during
a period or peacetime shall not be included as service for the purposes
of this plan. Time spent on reserve or National Guard training shall
be included as service for purposes of this plan.
TOTAL AND PERMANENT DISABILITY
Any condition arising from service-connected illness or injury
which precludes an employee from performing the duties associated
with the normal occupational requirements of any position with the
Police Department, provided that the determination is based upon competent
medical documentation satisfactory to the Board.
TOWNSHIP
The Township of Schuylkill, Chester County, Commonwealth
of Pennsylvania.
TRUSTEE
The Board of Supervisors of the Township of Schuylkill or
any other agency or person appointed by such to serve in that capacity
as set forth in the trust agreement.
B. Wherever applicable as used herein, unless the context specifically
provides otherwise, the singular and plural shall be interchangeable,
and the masculine and feminine pronoun shall include either sex.
A. All persons who are employees (as defined in this plan) as of the
effective date hereof shall be a member as of the effective date.
B. Any person who becomes an employee after the effective date hereof
shall become a member on the first day of service as an employee.
A. Contributions by members.
[Amended 8-6-2003 by Ord. No. 2003-04]
(1) Members shall pay into the fund at a rate of 5% of compensation. "Compensation," for this purpose, shall be as defined in §
45-1 of this article.
(2) The Board may, on an annual basis, by ordinance or resolution, reduce
or eliminate payments into the fund by members. Individual records
of contributions by members shall be maintained, including all interest
credited to his individual account. Interest to be credited shall
be 4.0% compounded annually.
(3) Interest shall be credited from the end of the plan year in which
paid, to the end of the month after which a refund becomes payable.
B. Refund of member's contributions. Any member who for any reason shall
be ineligible to receive a pension after having made contributions
shall be entitled to a refund of his individual account balance; such
refund is payable immediately upon discontinuance of his employment
with the police force or within a reasonable time (not more than 45
days after discontinuance). If such discontinuance is due to death,
then such refund shall be paid to his designated beneficiary or, in
the absence thereof, to his estate. If the disabled or retired member
is receiving a benefit by reason of disability or retirement, then
the refund payable to the beneficiary is equal to the individual account
balance at the date of disability or retirement, less any pension
payments made to the member.
C. Deposits. Contributions by members shall be remitted to the trustee
monthly.
D. State aid. The portion of the payments made by the State Treasurer
to the Township and designated by the Board to be allocated to the
police pension fund from money received from taxes paid upon premiums
by foreign casualty insurance companies for purposes of pension, retirement
or disability benefits for policemen shall be used as follows:
(1) To reduce the unfunded liability, or after such liability has been
fully funded;
(2) To apply against the annual obligation of the Township for future
service costs, or to the extent that the payment may be in excess
of such obligations;
(3) To reduce member contributions pursuant to Subsection
A hereof.
E. Township contributions. Subject to the provisions and limitations
set forth in other sections of this article, the Township shall contribute
the amounts certified to be necessary by the fund's actuary to provide
the benefits provided by this plan.
F. Contributions by members while on military service. The trustee shall continue to contribute to the fund for the officer's benefit for a member who enters the military service during a time of wartime or general military conflict, either voluntarily or by conscription, as outlined in Subsection
A, based on the compensation in effect on the last day of service with the Township's Police Department. However, no contributions will be made either by or on behalf of a member who voluntarily extends his military service during peacetime.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
G. Nonintervening military buyback.
(1) The plan provides full service credit for each year of military service
or fraction thereof, not to exceed five years, to a member who was
not employed by the Township prior to such military service, payable
by the members.
(2) The member shall pay the amount for the purchase of credit for military
service other than intervening military service computed by applying
the average normal costs rate for the plan as certified by the Public
Employee Retirement Study Commission, but not to exceed 10%, to the
member's average annual rate of compensation over the first three
years of service and multiplying the result by the number of years
and fractional part of a year of 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 service to
the date of payment.
(3) A member of the plan shall be eligible to receive service credit
for intervening or nonintervening military service, provided that
he is not entitled to receive, eligible to receive then or in the
future, or is receiving retirement benefits for such service under
a retirement system administered and wholly or partially paid for
by any other governmental agency, with the exception of a member eligible
to receive or who is receiving military retirement pay earned by a
combination of active duty and nonactive duty with a reserve or National
Guard component of the armed forces, which retirement pay is payable
only upon the attainment of a specified age and period of service
under 10 U.S.C. Ch. 67 (relating to retired pay for a nonregular service).
H. Other contribution. The fund shall be authorized to receive by gift,
grant, devise or bequest, any money or property, real, personal or
mixed, in trust for the benefit of the fund. The trustee of the fund
shall be subject to such directions not inconsistent with this plan
as the donors of such funds and property may prescribe.
A. Normal retirement. Each member may retire on or at any time after
his normal retirement date. Any member so retiring shall be entitled
to receive a monthly pension commencing as of the first day following
his date of actual retirement and ending with the payment made as
of the first day of the month in which his death occurs. The monthly
pension to which such retired member shall be entitled to under this
plan shall be equal to 50% of such member's average applicable compensation.
In addition to the monthly retirement benefit described above, each
member who has completed in excess of 25 years of service shall receive
an additional monthly pension benefit equal to $100 for each completed
year of service in excess of 25 years up to a maximum of $500 per
month.
[Amended 7-1-2009 by Ord. No. 2009-05]
B. Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any contributions required pursuant to §
45-3A hereof shall continue.
C. Disability benefit. If a member retires because of a total and permanent
disability, he shall be entitled to receive a pension benefit equal
to the greater of 50% of his last 36 months of average applicable
compensation or 50% of his salary at the time the disability was incurred,
both offset by any social security disability benefits received by
the member for the same injury. This benefit shall continue until
his death.
[Amended 8-6-2003 by Ord. No. 2003-04; 6-7-2017 by Ord. No. 2017-03]
D. Cost of living adjustment. There shall be a cost of living allowance
applicable for all retirees effective each January commencing with
the completion of the first full calendar year after the effective
date of their pension. The annual cost of living increase shall not
exceed 4% or the percentage increase for the calendar year in the
All Urban Consumers CPI for the Philadelphia Metropolitan area, whichever
is less. The increases shall be applicable each year; provided, however,
in no case shall the total police pension benefits exceed 75% of the
salary for computing retirement benefits and shall not cause the total
cost of living increase to exceed 30%.
[Amended 2-6-2002 by Ord. No. 02-01]
E. Early retirement benefit. Each member may retire on or at any time after his early retirement date. Upon termination, the member must file with the Secretary of the Township a written notice of his intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit as computed in §
45-6A. The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission.
A. Death benefit if no surviving spouse nor dependent children. If a
member dies prior to the commencement of pension benefits, then his
designated beneficiary shall be entitled to a refund of his accumulated
member's contributions with credited interest. If no beneficiary survives,
then the refund is payable to the member's estate.
B. Pension benefit to surviving spouse and dependent children.
[Amended 8-6-2003 by Ord. No. 2003-04]
(1) If a member dies survived by a spouse or dependent children, after
having become eligible to receive a pension benefit (i.e., he was
eligible because he was already receiving a pension or he met the
age and service requirements, but he had not yet retired), then a
monthly pension benefit shall be provided.
(2) The amount of the monthly pension benefit shall be 50% of the pension
the member was receiving or would have been entitled to receive if
he had been retired at the time of his death.
(3) In the event a member dies after completing 12 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in §
45-6. If a vested benefit is selected, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following the member's normal retirement date.
(4) In the event a member dies after completing 20 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in §
45-4E. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit commencing on the first day of the month following the election of this benefit.
(5) The monthly pension benefit is payable to the surviving spouse until
death, then to surviving dependent children under the age of 18 years
or, if attending college, under or attaining the age of 23 years.
"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. Dependent
children shall include stepchildren, adopted children, and any child
conceived before the time of the member's death and thereafter born
to the member's spouse.
C. Preretirement survivor benefit. In the event a member is killed in
service, the member's family shall receive the benefits provided for
and subject to the terms of Act 51 of 2009, which benefits are paid exclusively by the Commonwealth of Pennsylvania with the exception of any pension benefit to which the member was entitled prior to the member's death, solely by virtue of the member's service as a Township police officer (i.e., either a normal, early, or vested pension benefit). It is understood that "family" shall refer to the surviving spouse and dependent children. The benefit is payable to the surviving spouse until death, then to the surviving dependent children under the age of 18 years or, if attending college, under or attaining the age of 23 years. The terms "dependent children" and "attending college" shall be consistent with that of §
45-5B of this chapter, as amended.
[Amended 8-6-2003 by Ord. No. 2003-04; 10-6-2010 by Ord. No. 2010-12]
In the event any member's termination of employment under qualifying for either a) benefits under §§
45-4 or
45-5 herein or b) vesting pursuant to this section, such member, or the beneficiary of such member in the event of the death of the member, shall be entitled to the return of the member's plan contributions, if any, then on deposit in the fund plus interest thereon, computed at the rate described in §
45-3A. However, a member who has completed 12 or more years of service may elect either Subsection A or B as described below:
A. He may elect to leave his contributions, plus interest, in the fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Secretary of the Township, within 90 days of the date he ceases to be a full-time police officer, a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y) where (x) is the number of years of service at the date of termination and (y) is the number of years of service which the member would have had if he worked until normal retirement date, multiplied by the benefits described in §
45-4A. Years of service shall be measured in years and completed months.
B. He may elect to receive a refund of all contributions made by him and then on deposit in the trust fund, plus interest thereon, computed at the rate described in §
45-3A. If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit outlined in Subsection
A.
A. Refund benefits becoming distributable pursuant to §
45-6 and death benefits becoming distributable pursuant to the provision of §
45-5A shall be paid in the form of a lump-sum distribution.
B. The normal form of all benefits payable hereunder shall be a pension for the life of the member commencing on the date specified and ending with a payment made on the first day of the month in which the member dies, subject, however, to the payment of a death benefit calculated pursuant to §
45-5B.
A. It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§
45-4,
45-5 and
45-6, in accordance with the instructions received from the Board; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes.
B. The Township may employ an actuary, investment advisors, counsel,
or other professional consultants from time to time in connection
with the operation of the fund or of this plan. Such persons or entities
shall be compensated by the Township at such rates as may be agreed
upon by the Board. Such compensation may be paid from the fund.
C. The trustee shall make an annual determination of the fair market
value of the fund as of the anniversary date and as of such additional
dates as the Board may direct. The fair market value of the fund shall
be reported to the actuary who shall calculate the amount to be contributed
to the fund by the Township with respect to each plan year in accordance
with the assumptions most recently adopted by the Board for the purpose
of such computations; provided, however, that the liability of the
Township to make such contributions is subject to all of the conditions
and limitations set forth elsewhere in this plan.
A. The plan shall be administered by the Board of the Township of Schuylkill.
The Board shall make and adopt rules and regulations for the efficient
administration of the plan.
B. The Board shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provision of the plan and shall provide all such data, records and documents to the professionals whose services are employed pursuant to §
45-8B of this plan.
C. The Board shall construe the plan, shall determine any questions
or fact arising under the plan and shall make all decisions required
of it under the plan. Decisions and actions taken thereon in good
faith shall be final and conclusive. It may correct any defect or
supply any omission or reconcile any inconsistency in such manner
and to such extent as it shall be the sole judge of such expediency.
The Board shall act uniformly with respect to matters coming before
it concerning employees in similar circumstances.
D. The members of the Board and each of them shall be free of all liability
for any act or omission except by willful misconduct or gross negligence,
and each of them shall be fully indemnified by the Township against
all judgements not involving findings of their respective personal
or collective willful misconduct or gross negligence and against all
cost, including counsel fees, incurred in defense of actions brought
against them.
E. The Board shall make available to members, retired members and terminated
members and to their beneficiaries, for examination during business
hours, such records as to pertain to the person examining.
F. To enable the Board to perform its function, the Township administration
shall supply full and timely information to it on all matters relating
to the pay of all members, their retirement, death, termination of
employment and such other pertinent facts as the Board may require.
G. The Board shall enact such rules and regulations for the conduct
of its business and for the administration of the plan as it may consider
desirable, provided the same shall not be in conflict with any of
the provisions of the plan. All actions of the Board shall be taken
at meetings at which at least four members shall be present, or by
written resolutions, and any resolutions concurred in by not less
than four of its members shall be the action of the entire Board.
Written minutes shall be kept of the meetings and action of the Board.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
H. The Secretary, acting on behalf of the Board, shall have the power
to execute all documents necessary to carry out the actions of the
Board, and any person, partnership, corporation or government agency
shall accept such documents over such signature or signatures as if
executed by the Board.
A. It is the expectation of the Township that it will continue this
pension plan indefinitely and will, from time to time, contribute
to the fund such amounts as may be needed to provide the benefits
set forth in the plan.
B. The provisions of any ordinance establishing, amending, or maintaining
the plan shall not be a charge on any other fund in the Treasury of
the Township or under its control, save the Uniformed Employee's Pension
Fund herein provided for.
C. Nothing contained in the plan shall be held or construed as a contract
or guarantee of employment nor to create any liability upon the Township
to retain any person in its service. The Township reserves the full
right to discontinue the service of any person without any liability,
except for salary or wages that may be due and paid, whenever in its
judgement its best interests so require, and such discontinuance shall
be without regard to this plan but shall be consistent with applicable
statutes of the Commonwealth of Pennsylvania.
A. The Township may amend this plan from time to time as is necessary
to maintain its actuarial soundness and to incorporate changes in
plan benefits or entitlements. However, no amendment shall be made
which will, in any manner, divert any part of the fund to any purpose
other than the exclusive benefit of members or their beneficiaries
(except that upon termination such diversion may be made after all
of the fixed and contingent liabilities to members and their beneficiaries
have been met), nor shall any amendment be made at any time which
will in any manner divest any benefit then vested in a member or reduce
or eliminate a benefit to which a member has been given an expectation
by virtue of pension ordinance or pension calculations for retiring
officers who retired during the member's participation in this plan.
B. In the event of termination of this plan, the Board shall allocate
the assets then remaining in the fund as follows:
(1) Sufficient funds shall be maintained to provide the pension benefits prescribed in §
45-3 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.
(2) Contributions with interest at a rate established by the Board as provided in §
45-3 shall be refunded to any and all members who terminate service at the time of the termination of the fund.
(3) Of the remaining funds, those which can be identified as municipality contributions or contributions other than from members or from the commonwealth allocation shall be distributed as the Board sees fit, provided that such distribution is in compliance with §
45-8.
(4) All funds in excess of the funds described in Subsection
B(1),
(2) and
(3) above shall be returned to the commonwealth as unused funds pursuant to the Act of May 12, 1943, P.L. 259, as amended, 72 P.S. § 2263.1 et seq.
A. No benefit under this plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, or encumbrance, nor
to seizure, attachment or other legal process for the debts of any
member or member's beneficiary. This provision shall not apply to
a "qualified domestic relations order" defined in Code Section 26
U.S.C. § 414(p), and those other domestic relations orders
permitted to be so treated by the Board under the provisions of the
Retirement Equity Act of 1984, 29 U.S.C. § 1052 et seq.
The Township shall establish a written procedure to determine the
qualified status of domestic relations orders to administer distributions
under such qualified orders. Further, to the extent provided under
a qualified domestic relations order, a former spouse of a member
shall be treated as the spouse or surviving spouse for all purposes
under this plan.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
B. Any person dealing with the Township may rely upon a copy of this
plan and any amendments thereto certified to be true and correct by
the trustee.
C. In no circumstances, whether upon amendment or termination of this
plan or otherwise, shall any part of the fund be used or diverted
to any purpose other than the exclusive benefit of members or their
beneficiaries until all of the actuarial obligations to such member
or member's beneficiaries have been met.
D. If the Board deems any person incapable of receiving benefits to
which he is entitled by reason of minority, illness, infirmity, or
other incapacity, it may make payment directly for the benefit of
such person to the guardian or trustee for such person, whose receipt
shall be complete acquittance therefor. Such payment shall, to the
extent therefor, discharge all liability of the Township or the fund.
E. Should any provision of this plan be determined to be void by any
court, the plan will continue to operate and, to the extent necessary,
will be deemed not to include the provision determined to be void.
F. Headings and captions provided herein are for convenience only and
shall not be deemed part of the plan.
G. This plan shall be construed and applied under the laws of the Commonwealth
of Pennsylvania where not in conflict with federal laws which shall
prevail.
H. This article repeals all other ordinances prior to the date of its
enactment.
The effective date of this article shall be January 1, 1999.
[Adopted 7-6-2016 by Ord.
No. 2016-04]
This article shall be known as the "Schuylkill Township Police
Act 44 Retirement Program."
When used in this article the below words shall have the meanings
indicated:
ACT 44 PROGRAM
The Act 44 Deferred Retirement Option Program (DROP) referred to
in the current collective bargaining agreement ratified December 31,
2014, between the Schuylkill Township Police Association and the Township
of Schuylkill.
ACT 44 PROGRAM ACCOUNT
A separate ledger account created to accept an Act 44 Program
participant's monthly pension benefit while an Act 44 Program participant,
as well as any interest thereon.
PARTICIPANT
A police officer who meets the eligibility for and has executed
the proper documents for participation in Act 44 Program and has had
such application approved by the Township.
POLICE OFFICER
A sworn police officer employed by the Township of Schuylkill
in its Police Department, including all ranks from patrol officer
up to the Chief of Police. If any provision of this article applies
only to a specific rank of police officer, e.g., Chief of Police,
that rank shall be so specified. Otherwise, the word "police officer"
shall apply to all sworn police officers employed by the Township.
TOWNSHIP
Township of Schuylkill, Chester County, Pennsylvania.
Eligibility for the Act 44 Program shall be determined as follows:
A. 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 following completion of 25 years of credited service
and attaining the age of 50.
Eligible officers who wish to be participants in the Act 44
Program must signify that intention in writing as follows:
A. 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 Township, 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 prior to the date on
which the member wishes Act 44 Program participation to commence.
The Act 44 Program participation election form shall include an irrevocable
notice to the Township 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
24 months from the effective date of the Act 44 Program participation
election form for officers holding the rank of Sergeant or below.
Since the Township needs more flexibility and time to transition and
replace its Chief of Police or Lieutenant who are not part of the
collective bargaining agreement, in order to maintain the smooth and
efficient operation of the Police Department, police officers holding
the rank of Chief of Police or Lieutenant shall submit an Act 44 Program
participation election form which shall include an irrevocable notice
to the Township that the Chief of Police or Lieutenant shall resign
from employment with the Police Department effective on a resignation
date that is no later than 36 months from the effective date of the
Act 44 Program participation 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 Township 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.
B. In addition to the above information, the Act 44 Program participation
election form shall also advise the employee of the following:
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
(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
forgoes active participation in the Police Pension Plan and forgoes
any recalculation of pension benefits to include salary increases
occurring after Act 44 Program participation commences.
(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.
(4) 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 Township for approval
of retirement and payment of pension. Once an Act 44 Program participation
election form has been approved by the Township, it is irrevocable.
Likewise, once an Act 44 Program participant enters the Act 44 Program,
the participant may not subsequently leave and then reenter the Act
44 Program, even if the employee separates from employment and subsequently
begins employment with the Township again.
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 Township
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.
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 accounts while in the Act 44 Program. Instead, the
monies shall be invested in a fund to be identified and selected solely
by the Township in accordance with applicable law so as to generate
a rate of return of no less than 0% and no more than 4.5%.
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.
Upon separation from employment, the Act 44 Program payout options
available to the Act 44 Program participant shall be as follows:
A. 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.
B. 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, 26 U.S.C. § 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, 26 U.S.C. § 402(c)(9).
C. 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 Township of Schuylkill shall implement Subsection
A above.
If an Act 44 Program participant becomes temporarily incapacitated
due to a service-connected injury during his participation in 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 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 section, 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 article 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
Township 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.
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.
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 Public Employee 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.
The police officers and the Township agree that any costs or
fees associated with the management of the Act 44 Program accounts
shall be paid directly from the Police Pension Fund and not be paid
directly from any other fund, including, but not limited to, the general
fund maintained by the Township of Schuylkill.
Any amendments to this Act 44 Program article 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.
A police officer's election to participate in the Act 44 Program
shall in no way be construed as a limitation on the Township'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.