[HISTORY: Adopted by the Board of Commissioners of the Township
of Robinson as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Police Department — See Ch. 56.
[Adopted 6-12-1995 by Ord. No. 8-1994 (Ch. 1, Part 5B, of
the 1989 Code); amended in its entirety 1-4-2016 by Ord. No. 2-2016]
The following words and phrases as used in this article shall
have the meaning set forth in this section, unless a different meaning
is otherwise clearly required by the context:
As of any given date, the benefit determined under § 46-4B, calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed one. In no event, however, shall the accrued benefit exceed the maximum limitation, determined as of the date of computation, provided under § 46-4F. All accrued benefits are subject to all applicable limitations, reductions, offsets, and actuarial adjustments provided pursuant to the terms of the plan prior to the actual payment thereof.
The total amount contributed by any participant to this fund or its predecessor by way of payroll deduction or otherwise, plus interest credited at a rate equal to 4% per annum. Interest shall be credited in the form of a simple interest rate from the midpoint of the plan year during which the contributions were paid to the first day of the month preceding the date that a distribution of accumulated contributions under §§ 46-6C and 46-7B shall be paid or payment of benefits shall commence.
The Municipal Pension Plan Funding Standard and Recovery
Act which was enacted as Act 205 of 1984, as amended, 53 P.S. § 895.101
et seq.
Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the 1983 Group Annuity Mortality Table and 7% interest unless
otherwise specifically provided herein.
The person, partnership, association or corporation which
at any given time is serving as actuary; provided that such actuary
must be an "approved actuary" as defined in the Act.
The total period or periods of the participant's employment
with the employer whether or not interrupted and shall be computed
in terms of completed years. Notwithstanding the preceding sentence,
should any such participant receive a distribution of accumulated
contributions which are otherwise required to be maintained in the
plan with respect to a period of employment, such period of employment
shall not be included in aggregate service thereafter unless, at the
commencement of the next period of employment, the participant repays
to the fund the amount of such distribution with interest. For purposes
of this section, interest shall accrue as of the date the employee
receives a distribution of accumulated contributions and shall be
computed at the same rate and in the same manner as described in the
definition of "accumulated contributions."
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.
The person or entity designated by the participant to receive
a distribution of the participant's accumulated contributions
should the participant die prior to becoming entitled to a retirement
benefit. In the event that a participant does not designate a beneficiary
or the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse, or if there is no surviving spouse,
the issue, per stirpes, or if there is no surviving issue, the estate;
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.
The Board of Commissioners of the Township of Robinson, Allegheny
County, Pennsylvania.
The person designated by the employer who has the primary
responsibility for the execution of the administrative affairs for
the plan.
The Internal Revenue Code of 1986, as amended.
The Police Pension Review Committee as determined pursuant to § 46-8B.
The Commonwealth of Pennsylvania.
The total remuneration of the employee, whether salary or
hourly wages, including overtime pay, holiday pay, longevity pay,
night differential pay, payments for accumulated unused sick leave,
and any other form of compensation paid by the employer for police
services rendered. Compensation shall be limited on an annual basis
to the amount specified for government plans pursuant to Code § 401(a)(17),
as adjusted under Code § 415(d).
The date when a participant is determined by the plan administrator
to be incapacitated due to total and permanent disability, or the
date when the participant's employment terminates due to such
total and permanent disability, if later.
Any individual employed by the employer on a regular, full-time
basis as a police officer of the employer's police force.
The Township of Robinson, Allegheny County, Pennsylvania.
For the purpose of determining aggregate service:
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer;
Any period of time for which an employee is paid, either directly
by the employer or through a program to which the employer has made
contributions on behalf of the employee, a fixed, periodic amount
in the nature of salary continuation payments for reasons other than
the performance of duties (such as vacation, holidays, sickness, entitlement
to benefits under workers' compensation or similar laws);
Any period during which an employee is entitled to disability
benefits under this article, provided that the employee returns to
employment within three months of the date on which it is determined
that the employee is no longer totally and permanently disabled if
such determination occurs prior to the date a participant attains
normal retirement age;
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that the
participant has been employed as a regular, full-time member of the
employer's police force for a period of at least six months immediately
prior to the period of military service; and the participant returns
to employment within six months following discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer;
Any period of qualified military service as determined under
the requirements of Chapter 43 of Title 38, United States Code, provided
that the participant returns to employment following such period of
qualified military service, and the participant makes payment to the
plan in an amount equal to the participant contributions that would
otherwise have been paid to the plan during such period of qualified
military service. The amount of participant contributions shall be
based upon an estimate of the compensation that would have been paid
to the participant during such period of qualified military service
as determined by the average compensation paid to the participant
during the 12 months immediately preceding the period of qualified
military service. The amount of participant contributions so calculated
must be paid into the plan before the end of the period that begins
on the date of reemployment and ends on the earlier of the date that
ends the period that has a duration of three times the period of qualified
military service, or the date that is five years after the date of
reemployment; and
Any period of voluntary or involuntary military service with
the armed forces of the United States of America not to exceed a total
of five years which occurred prior to the date on which a participant
first became employed as an employee of the employer; provided that
the participant shall purchase such credit and that such participant
is not entitled to receive, eligible to receive or is receiving retirement
benefits for such military service under a retirement system administered
and wholly or partially paid for by any other governmental agency
except military retirement pay earned by a combination of active and
non-active duty with a reserve or national guard component of the
armed forces which is payable upon the attainment of a specified age
and period of service under 10 U.S.C. Ch. 67 (relating to retired
pay for nonregular service). The purchase price for such service shall
be computed by multiplying the average normal cost rate for the plan
as certified by the Public Employee Retirement Commission and not
to exceed 10% times the participant's average annual rate of
compensation during the first three years of employment as an employee
of the employer and multiplying the result times the number of years
and fractions thereof being purchased. Interest shall be paid at a
rate of 4.75% compounded annually from the first date of employment
as an employee of the employer to the date of payment.
The average monthly salary earned by the participant and
paid by the employer during the final 36 months immediately preceding
termination of active employment. "Salary" shall include the employee's
regular salary and other forms of compensation which are fixed amounts
paid at periodic intervals such as longevity pay, holiday pay, and
night differential pay, and shall also include irregular forms of
compensation such as overtime pay and court pay.
Final monthly average salary shall be calculated by taking into
account only those periods during which an employee receives salary,
as that term is defined in this section. Therefore, for example, the
final monthly average salary for a participant who receives disability
benefits from this article or who is voluntarily or involuntarily
serving in the United States armed forces during the final 36 months
of aggregate service shall be based on the period during which the
employee last received salary (as defined in the preceding paragraph)
from the employer.
Salary used to determine final monthly average salary shall
be limited on an annual basis to the amount specified for government
plans in accordance with Code § 401(a)(17), as adjusted
under Code § 415(d).
A legal reserve life insurance company authorized to do business
in the Commonwealth of Pennsylvania.
The fixed, periodic payment for the final completed month
of active employment during the year the disability occurred.
The minimum obligation of the municipality as determined
by the actuary pursuant to the provisions of the Act.
The date on which the participant has completed 25 years
of aggregate service with the employer and has attained age 50.
A written document prepared in the form specified by the
plan administrator and delivered as follows: If such notice or election
is to be provided by the employer or the plan administrator, it shall
be mailed in a properly addressed envelope, postage prepaid, to the
last known address of the person entitled thereto, on or before the
last day of the specified notice or election period; or, if such notice
or election is to be provided to the employer or the plan administrator,
it must be received by the recipient on or before the last day of
the specified notice or election period.
An employee who has met the eligibility requirements to participate in the plan as provided in § 46-2A and who has not for any reason ceased to be a participant hereunder.
The police pension fund administered under the terms of this
article and which shall include all money, property, investments,
policies and contracts standing in the name of the plan.
The plan set forth herein, as amended from time to time and
designated as the "Township of Robinson Police Pension Plan."
The committee or the individual appointed for the purpose
of supervising and administering the provisions of the plan. In the
event that no such appointment is made, the plan administrator shall
be the Board.
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.
January 1, 2015, the date upon which this amendment and restatement
of the plan becomes effective.
The actual date on which the participant retires from employment.
A condition of physical or mental impairment due to which
a participant is unable to perform the usual and customary duties
of employment, which condition was not caused in the line of duty
and which condition is reasonably expected to be permanent.
A.
Eligibility requirements. Each employee who is employed as a regular,
full-time permanent police officer of the police department of the
employer shall participate herein as of the first day on which such
employee's employment first commences or recommences, following
any probationary period required by Board, provided all prerequisites
to participation under this article shall have been fulfilled, including,
but not limited to, completion of all forms required by the plan administrator.
B.
Notification of plan administrator. The Board shall furnish the plan
administrator with written notification of the appointment of any
new full-time permanent employee who is eligible for participation
hereunder.
C.
Designation of beneficiary. Any new, full-time employee who becomes
a participant hereunder shall provide a written notice in the manner
prescribed by the plan administrator which designates a beneficiary
at the time participation commences. The participant's election
of any such beneficiary may be rescinded or changed, without the consent
of the beneficiary, at any time provided the participant provides
the written notice of the changed designation to the plan administrator
in the manner prescribed by the plan administrator. Any designation
of a beneficiary made in any manner other than one acceptable to the
plan administrator shall be null and void and have no effect under
the terms of this article.
D.
Reemployment. Each employee who had previously been employed by the employer shall, upon reemployment, have prior years of service re-credited for all purposes under the plan upon repayment of the plan of any amount of accumulated contributions, which had been distributed pursuant to § 46-7B.
E.
Change in status. A participant who remains in the service of the
employer but ceases to be an employee eligible for participation hereunder,
or ceases or fails to make any contributions which are required as
a condition of participation hereunder, shall have no further benefit
accruals occur under the individual again qualifies as a participant
hereunder eligible to resume such accrual of benefits.
F.
Leave of absence. During any leave of absence that is not an authorized
leave of absence, a participant shall be deemed an inactive participant
and shall not be given credit for years of service nor continue to
accrue any benefits hereunder. If the employee is not reemployed by
the expiration of such leave of absence, participation in the plan
shall cease on the date on which such leave of absence commenced.
During any authorized leave of absence, a participant shall continue
to receive credit for years of service to the extent such credit is
specifically granted in writing by the employer and is permitted pursuant
to applicable law.
G.
Recordkeeping. The employer shall furnish the administrator with
such information as will aid the administrator in the administration
of the plan. Such information shall include all pertinent data on
employees for purposes of determining their eligibility to participate
in this article.
A.
Participant contributions. Each participant shall as a requirement of participation pay regular contributions to the pension fund in an amount equal to 5% of the participant's compensation. The participant contributions required under this § 46-3A shall be treated as "pick up" contributions pursuant to Internal Revenue Code § 414(h)(2). Each participant shall complete the necessary forms to authorize the payment of participant contributions by way of payroll deduction.
B.
Reduction of participant contributions. Notwithstanding the preceding § 46-3A, if an actuarial study performed by the actuary shows that the condition of the pension fund is such that payments into the pension fund by participants may be reduced below the minimum percentage prescribed in § 46-3A, or may be eliminated, and that if such payments are reduced or eliminated, contributions by the employer will not be required to keep the pension fund actuarially sound, the employer may, by ordinance or resolution, reduce or eliminate payments into the pension fund by participants. Participants are not contributing to the pension fund as of the restatement date and shall only be required to resume participant contributions when the Board requires resumption of such contributions by ordinance or resolution.
C.
Employer contributions. The actuary, in accordance with the Act,
shall determine the minimum municipal obligation of the employer.
The employer shall pay into the pension fund, by annual appropriations
or otherwise, the contributions necessary to satisfy the minimum municipal
obligation.
D.
State aid. General municipal pension system state aid or any other
amount of state aid received by the employer in accordance with the
Act from the commonwealth may be deposited into the pension fund governed
by this article in amounts determined by the Board, and shall be used
to reduce the amount of the minimum municipal obligation of the employer.
E.
Gifts. The Board is authorized to take by gift, grant, devise or
otherwise any money or property, real or personal, for the benefit
of the plan and cause the same to be held as a part of the pension
fund. The care, management, investment and disposal of such amounts
shall be vested in the Board or its delegate, the plan administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.
F.
No reversion to the employer. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, except that contributions made by the employer may be returned to the employer of the contribution was made due to a mistake of fact and the contribution is returned within one year of the mistaken payment of the contribution or the plan is terminated, as provided in § 46-10.
A.
Normal retirement. Each participant shall be entitled to normal retirement
benefits after retirement on or after the participant has attained
normal retirement age.
B.
Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to § 46-4A shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average salary.
C.
Late retirement. A participant may continue to work beyond the attainment of normal retirement age subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of § 46-4A continues to work beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and retirement begins. The retirement benefit of a participant who retires after attainment of normal retirement age shall be calculated in accordance with § 46-4B on the basis of the final monthly average salary as of such participant's actual retirement date.
D.
Cost of living adjustments. Each participant who shall retire hereunder shall receive an annual cost-of-living adjustment to the normal retirement benefit determined under § 46-4B. Such cost-of-living adjustment shall be applied as of the first day of the plan year and CPI-W during the prior plan year multiplied by the amount of the monthly benefit as determined under § 46-4B hereof. Such adjustment shall not exceed the following limits: (1) the percentage increase in the Consumer Price Index for the year in which the participant was last employed as an employee; (2) the total retirement benefits payable under this article shall not exceed 75% of the participant's final monthly average salary; (3) the total cost-of-living increase shall not exceed 30% of the participant's retirement benefit under the plan; and (4) no cost-of-living adjustment shall impair the actuarial soundness of the pension fund.
E.
Payment of benefits. Retirement benefit payments shall be payable
on a prorated basis for the participant's initial month of retirement
and thereafter, on the first day of each month during the participant's
lifetime. A participant must complete an application for benefit in
the manner prescribed by the plan administrator and deliver such application
to the plan administrator at least 30 days prior to the date on which
benefit payments shall commence. Notwithstanding anything contained
herein to the contrary, no retirement benefit payments nor any other
payments shall be due or payable on or before the first day of the
month coincident with or next following the date that is 30 days after
the date the plan administrator receives the application for benefits.
Payment of benefits hereunder shall cease as of the date of death
of the participant.
F.
Maximum benefit limitations. Notwithstanding any provision of this article to the contrary, no benefit provided under this article attributable to contributions of the employer shall exceed, as an annual amount, the amount specified in Code § 415(b)(1)(A) as adjusted pursuant to Code § 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this § 46-4F shall be governed by the following conditions and definitions:
(1)
Benefits paid or payable in a form other than a straight life annuity
(with no ancillary benefits) or where the employee contributes to
the plan or makes rollover contributions shall be adjusted on an actuarially
equivalent basis in accordance with applicable regulations to determine
the limitation contained herein;
(2)
In the case of a benefit which commences prior to the attainment of age 62 by the participant, the limitation of Subsection F(1) shall be adjusted on an actuarially equivalent basis in accordance with applicable regulations to the amount determined pursuant to Subsection F(1) commencing at age 62; however, the reduction shall not reduce the limitation below $75,000 for a benefit commencing at or after age 55, or if the benefit commences prior to attainment of age 55 the amount which is actuarially equivalent to a benefit of $75,000 commencing at age 55; however, in the case of a qualified participant (a participant with respect to whom a period of at least 15 years of service, including applicable military service, as a full-time employee of a police or fire department is taken into account in determining the amount of benefit), the limitation contained herein shall not reduce the limitation of Subsection F(1) to an amount less than the amount specified pursuant to Code § 415(b)(2)(G)(i) as of the restatement date of this article and such amount shall be adjusted pursuant to Code § 415(d);
(4)
Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this section provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant with fewer than 10 years of participation the limitation expressed in this Subsection F(4) shall be reduced by 1/10 for each year of participation less than 10 but in no event shall this limitation be less than $1,000;
(5)
The limitations expressed herein shall be based upon plan years for
calculation purposes, shall be applied to all defined benefit plans
maintained by the employer as one defined benefit plan and to all
defined contribution plans maintained by the employer as one defined
contribution plan, and shall be applied and interpreted consistent
with Code § 415 and regulations thereunder as applicable
to government plans in general and this article in particular;
(7)
For mandatory employee contributions, the rules set forth in Treasury
Regulation 1.415(b)-1(b)(2)(iii) shall apply;
(8)
To the extent applicable, the plan will comply with the provisions
of Code § 415(n) regarding the purchase of permissive service
credits; and
(9)
Effective for distributions with annuity starting dates beginning
on or after December 31, 2008, notwithstanding any other plan provisions
to the contrary, the applicable mortality table used solely for purposes
of adjusting any benefit or limitation under § 415(b)(2)(B),
(C), or (D) of the Internal Revenue Code as set forth in the applicable
maximum benefit limitations section of the plan is the applicable
mortality table under Code § 417(e)(3)(B).
G.
Incorporation of Code § 415 by reference. Notwithstanding anything contained in § 46-4F to the contrary, the limitations, adjustments, and other requirements prescribed in § 46-4F shall at all times comply with the provisions of Code § 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference.
H.
Required distributions.
(1)
Notwithstanding any other provision of this article, the entire benefit
of any participant who becomes entitled to benefits prior to death
shall be distributed either:
(a)
Not later than the required beginning date; or
(b)
Over a period beginning not later than the required beginning
date and extending over the life of such participant or over the lives
of such participant and a designated beneficiary (or over a period
not extending beyond the life expectancy of such participant, or the
joint life expectancies of such participant and a designated beneficiary).
(c)
If a participant who is entitled to benefits under this article dies prior to the date when the entire interest has been distributed after distribution of benefits has begun in accordance with Subsection H(1)(b) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection H(1)(b) as of the date of death.
(2)
If a participant who is entitled to benefits under this article dies
before distribution of the benefit has begun, the entire interest
of such employee shall be distributed within five years of the death
of such employee, unless the following sentence is applicable. If
any portion of the employee's interest is payable to (or for
the benefit of) a designated beneficiary, such portion shall be distributed
over the life of such designated beneficiary (or over a period not
extending beyond the life expectancy of such beneficiary), and such
distributions begin no later than one year after the date of the employee's
death or such later date as provided by regulations issued by the
Secretary of the Treasury, then for purposes of the five-year rule
set forth in the preceding sentence, the benefit payable to the beneficiary
shall be treated as distributed on the date on which such distributions
begin. Provided, however, that notwithstanding the preceding sentence,
if the designated beneficiary is the surviving spouse of the participant,
then the date on which distributions are required to begin shall not
be earlier than the date upon which the employee would have attained
age 70 1/2 and, further provided, if the surviving spouse dies
before the distributions to such spouse begin, this subsection shall
be applied as if the surviving spouse were the employee.
(3)
For purposes of this section, the following definitions and procedures
shall apply:
(a)
"Required beginning date" shall mean April 1 of the calendar
year following the later of the calendar year in which the employee
attains age 70 1/2, or the calendar year in which the employee
retires.
(b)
The phrase "designated beneficiary" shall mean any individual
designated by the employee under this article according to its rules.
(c)
Any amount paid to a child shall be treated as if it had been
paid to the surviving spouse if such amount will become payable to
the surviving spouse upon such child's reaching majority (or
other designated event permitted under regulations issued by the Secretary
of the Treasury).
(d)
For purposes of this section, the life expectancy of an employee
and/or the employee's spouse (other than in the case of a life
annuity) may be redetermined but not more frequently than annually.
(4)
General rules. The requirements of this § 46-4H will take precedence over any inconsistent provisions of the plan. All distributions required under this § 46-4H will be determined and made in accordance with § 401(a)(9) of the Internal Revenue Code and the Treasury regulations thereunder, and the employer's good faith interpretation of such Code and regulations.
I.
Direct rollovers.
(1)
This section applies to distributions made on or after December 31,
2001. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a distributee's election under this section,
a distributee may elect, at the time and in the manner prescribed
by the plan administrator, to have any portion of an eligible rollover
distribution that is equal to at least $500 paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
(2)
This § 46-4I(2) shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, if a distribution in excess of $1,000 is made and the distributee does not make an election under § 46-4I(1) and does not elect to receive the distribution directly, the plan administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to § 46-8C(1)(i). The plan administrator shall notify the distributee in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
(3)
DIRECT ROLLOVER
(a)
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
(a)
For purposes of this section, the following definitions shall apply:
A payment by the plan to the eligible retirement plan specified
by the distributee.
Effective January 1, 2008, direct rollovers may be made to a
Roth IRA described in § 408A of the Internal Revenue Code
to the extent that the applicable requirements of Code § 408A
are satisfied with respect to any direct rollover to such Roth IRA.
Includes all employees or former employees. In addition,
the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse
who is the alternate payee under a qualified domestic relations order,
as defined in Code § 414(p), are distributees with regard
to the interest of the spouse or former spouse.
A qualified trust described in Code § 401(a), an
individual retirement account described in Code § 408(a),
an individual retirement annuity described in Code § 408(b),
an annuity plan described in Code § 403(a), an annuity contract
described in Code § 403(b), an eligible deferred compensation
plan under § 457(b) of the Code which is maintained by a
state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state and which agrees to
separately account for amounts transferred into such plan from this
article.
Any distribution of all or any portion of the balance to
the credit of the distributee, except that an eligible rollover distribution
does not include: any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period often years of more;
any distribution to the extent such distribution is required under
Code § 401(a)(9); and the portion of any distribution that
is not includible in gross income (determined without regard to the
exclusion for net unrealized appreciation with respect to employer
securities).
For purposes of the direct rollover provisions in this section
of the plan, a portion of a distribution shall not fail to be an eligible
rollover distribution merely because the portion consists of after-tax
employee contributions that are not includible in gross income. However,
such portion may be paid only to an individual retirement account
or annuity described in § 408(a) or (b) of the Code, or
to a qualified defined contribution plan described in § 401(a)
or 403(a) of the Code that agrees to separately account for amounts
so transferred, including separately accounting for the portion of
such distribution which is includible in gross income and the portion
of such distribution which is not so includible.
(4)
This section applies to distributions made on or after January 1,
2010. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a nonspouse beneficiary's election under
this section, a nonspouse beneficiary may elect to have any portion
of a plan distribution (that is payable to such nonspouse beneficiary
due to a participant's death) paid in a direct trustee-to-trustee
transfer to an individual retirement account described in Code § 408(a)
or to an individual retirement annuity described in § 408(b)
(other than an endowment contract) that has been established for the
purposes of receiving the distribution on behalf of such nonspouse
beneficiary. For these purposes, a "nonspouse beneficiary" is an individual
who is a designated beneficiary [as defined by § 401(a)(9)(E)
of the Internal Revenue Code] of a participant and who is not the
surviving spouse of such participant.
J.
Assignment. The pension benefit payments prescribed herein shall
not be subject to attachment, execution, levy, garnishment or other
legal process and shall be payable only to the participant or designated
beneficiary and shall not be subject to assignment or transfer.
K.
Retired participants. Any participant who shall have retired prior
to the restatement date shall not have the benefit altered in any
way by the provisions of this amended and restated plan, except where
otherwise expressly provided herein. Such retired participants shall
continue to have their benefits governed by the terms of the plan
in effect on the day preceding the restatement date.
L.
Application for benefit. A participant must complete and execute
an application for benefit on a form and in the manner prescribed
by the plan administrator and deliver the said application to the
plan administrator at least 30 days prior to the date on which benefit
payments are to commence. Notwithstanding anything contained herein
to the contrary, no retirement benefit payments or any other benefit
payments shall be due or payable on or before the first day next following
the date that is 30 days after the date the plan administrator receives
the application for benefit.
M.
Limitation of liability. Nothing contained herein shall obligate
the employer, the plan administrator, any fiduciary or any agent or
representative of any of the foregoing, to provide any retirement
or other benefit to any participant or beneficiary which cannot be
provided from the assets available in the pension fund, whether such
benefits are in pay status or otherwise payable under the terms of
the plan. The Council retains the right to amend or terminate this
article consistent with applicable law at any time, with or without
cause and whether or not such action directly or indirectly results
in the suspension, reduction or termination of any benefit payable
under the plan or in pay status, and without liability to any person
for any such action.
N.
Special provision for restated plans. The benefit amount of any participant
who may have retired prior to the restatement date shall not be in
any way altered by the provisions of this article, except where otherwise
expressly indicated herein, and shall continue to be determined on
the basis of the terms of the plan in effect on the day preceding
the restatement date.
A.
Disability retirement. A participant who shall incur a total and
permanent disability shall be entitled to a disability retirement
benefit as of the disability date.
B.
Disability retirement benefits. A participant who retires due to a total and permanent disability pursuant to § 46-5A shall be eligible for a disability retirement benefit equal to 50% of the member's salary at the time the disability was incurred determined as of the disability date, provided that any member who receives benefits for the same injuries under social security disability shall have the participant's disability benefits offset or reduced by the amount of such benefits.
C.
Payment of disability benefits. Disability payments shall be made monthly as of the first day of each month, commencing as of the first day of the month coincident with or immediately following the participant's disability date and continuing until the earliest of the death of the participant, cessation of total and permanent disability, or attainment of normal retirement age (such a participant who attains normal retirement age shall thereafter receive a normal retirement benefit pursuant to § 46-4B).
(1)
A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, shall not be entitled to any distribution of accumulated contributions pursuant to § 46-7B to the extent that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date, and shall not be entitled to any other benefits under the plan on account of any aggregate service as of the disability date.
D.
Verification of disability. The plan administrator shall in its sole
discretion determine whether a participant shall have incurred a total
and permanent disability. The plan administrator shall rely on the
report of a physician acceptable to the plan administrator. If the
plan administrator shall determine that a participant who is totally
and permanently disabled has recovered sufficiently to resume active
employment as a police officer or if a participant refuses to undergo
a medical examination as directed by the plan administrator (such
a medical examination may not be required more frequently than once
in any given twelve-month period), the payment of disability retirement
benefits shall cease.
E.
Cessation of disability. A participant who is receiving payment of
disability retirement benefits under this article must notify the
plan administrator of any change which may cause a cessation of entitlement
to receipt of such benefits hereunder. If a participant fails to provide
immediate notice to the plan administrator of any such change in status
and continues to receive payment of benefits hereunder to which the
participant is not entitled, then the plan may take whatever action
is necessary to recover any amount of improperly paid amounts, including
legal action or offsetting such amounts against any future payments
of retirement or other benefits under the plan, including the costs
of such actions.
A.
Death of participant. Upon the occurrence of the death of a participant, there shall be benefits payable in accord with the following sections of this § 46-6.
B.
Survivor benefit. If a participant shall die after commencement of
benefit payments or after becoming eligible to receive benefit payments,
a survivor benefit shall be paid to the surviving spouse, if any,
of the participant in an amount equal to 50% of the benefit the participant
was receiving or was eligible to receive as of the date of death.
The survivor benefit shall be paid to the surviving spouse until the
date of death of the surviving spouse. Upon the death of the surviving
spouse, the survivor benefit shall be paid monthly in equal shares
to the surviving dependent children of the deceased participant until
attainment of age 18 or, if attending college, under or attaining
the age of 23.
C.
Death of participant prior to retirement. If a participant shall die before payment of a benefit has commenced and without eligibility for payment of a survivor benefit under § 46-6B, the beneficiary shall be eligible to receive a distribution in an amount equal to the accumulated contributions of the participant as of the date of death of the participant.
A.
Rights of terminated employees. A participant who shall cease to
be an employee except as otherwise hereinbefore provided shall have
all interest and rights under this article limited to those contained
in this section.
B.
Distribution of accumulated contributions. A participant whose employment
with the employer shall terminate for any reason prior to attainment
of normal retirement age shall be entitled to receive a distribution
of accumulated contributions. Upon receipt of such accumulated contributions,
said participant and beneficiary shall not be entitled to any further
payments from the plan.
C.
Vested benefits upon termination. Notwithstanding the foregoing § 46-7B, a participant who shall have completed 12 years of service with the employer and who ceases to be an employee of the employer for any reason other than death, disability or retirement shall be eligible, upon attainment of what would have been the participant's normal retirement date, for a vested retirement benefit equal to the accrued benefit, determined as of the date on which employment ceased. Payments of a vested retirement benefit shall be made in accordance with § 46-4E. A participant shall always be one-hundred-percent vested in the portion of the accrued benefit that is attributable to employee contributions. Notwithstanding the foregoing, a participant shall be one-hundred-percent vested upon attaining normal retirement date.
D.
Forfeiture. Rights under this article shall be subject to forfeiture
as provided by the act of July 8, 1978 (P.L. 752, No. 140), known
as the Public Employee Pension Forfeiture Act.
A.
Plan administrator. The plan administrator shall be the committee
or the individual appointed by the Board who shall have the power
and authority to do all acts and to execute, acknowledge and deliver
all instruments necessary to implement and effectuate the purpose
of this article. The plan administrator may delegate authority to
act on its behalf to any persons it deems appropriate. If a plan administrator
is not appointed, the Board shall be the plan administrator.
B.
Police Pension Review Committee. A Police Pension Review Committee
may be appointed to review the affairs of the plan and to act in an
advisory capacity to the Board regarding the administration of the
plan. The Committee shall consist of members as may be chosen by the
Board. Notwithstanding the foregoing, two members of the Committee
shall be full-time, regular officers of the police department of the
employer, such officers to be elected to the Committee by their fellow
officers. Each member of the Committee shall serve in that capacity
until the earliest of resignation, death, removal or otherwise. Each
member may be removed at any time, with or without cause, by the applicable
group responsible for the appointment of such member. Each member
may resign by delivering written notice to the Board and other members
of the Committee. Vacancies on the Committee shall be filled by the
applicable group responsible for originally appointing a member to
such vacant seat on the Committee.
C.
Authority and duties of the plan administrator.
(1)
The plan administrator shall have full power and authority to do
whatever shall, in its judgment, be reasonably necessary for the proper
administration and operation of the plan. The interpretation or construction
placed upon any term or provision of the plan by the plan administrator
or any action of the plan administrator taken in good faith shall,
upon the Board's review and approval thereof, be final and conclusive
upon all parties hereto, whether employees, participants or other
persons concerned. By way of specification and not limitation and
except as specifically limited hereafter, the plan administrator is
authorized:
(a)
To construe this article;
(b)
To determine all questions affecting the eligibility of any
employee to participate herein;
(c)
To compute the amount and source of any benefit payable hereunder
to any participant or beneficiary;
(d)
To authorize any and all disbursements;
(e)
To prescribe any procedure to be followed by any participant
and/or other person in filing any application or election;
(f)
To prepare and distribute, in such manner as may be required
by law or as the plan administrator deems appropriate, information
explaining the plan;
(g)
To require from the employer or any participant such information
as shall be necessary for the proper administration of the plan;
(h)
To appoint and retain any individual to assist in the administration
of the plan, including such legal, clerical, accounting and actuarial
services as may be required by any applicable law or laws; and
(2)
The plan administrator shall have no power to add to, subtract from
or modify the terms of the plan or change or add to any benefits provided
by the plan, or to waive or fail to apply any requirements of eligibility
for benefits under the plan. Further, the plan administrator shall
have no power to adopt, amend, or terminate the plan, to select or
appoint any trustee or to determine or require any contributions to
the plan, said powers being exclusively reserved to the Board.
D.
Police Pension Review Committee organization. The Committee may organize
itself in any manner deemed appropriate to effectuate its purposes
hereunder, subject to the following:
(1)
The Committee shall act by a majority of its members at the time
in office and such action may be taken either by vote at a meeting
or in writing without a meeting.
(2)
The
Committee shall, from time to time, appoint a Chairman, a Secretary
who may, but need not, be a Committee member and such other agents
as it may deem advisable.
(3)
The
Committee may, from time to time, authorize any one or more of its
members to execute any document or documents including any application,
request, certificate, notice, consent, waiver or direction and shall
notify the Board, in writing, of the name or names of the member or
members so authorized. In the absence of a designation, the Chairman
shall be deemed to be so authorized. Any trustee or other fiduciary
appointed hereunder shall accept and be fully protected in relying
upon any document executed by the designated member or members (or
the Chairman in the absence of a designation) as representing a valid
action by the Committee until the Committee shall file with such fiduciary
a written revocation of such designation.
(4)
The
Committee or its delegate shall maintain and keep such records as
are necessary for the efficient operation of the plan or as may be
required by any applicable law, regulation or ruling and shall provide
for the preparation and filing of such forms or reports as may be
required to be filed with any governmental agency or department and
with the participants and/or other persons entitled to benefits under
the plan.
E.
Plan administrator costs. The plan administrator shall serve without
compensation for services unless otherwise agreed by the Board in
writing. All reasonable expenses incident to the functioning of the
plan administrator, including, but not limited to, fees of accountants,
counsel, actuaries and other specialists and other costs of administering
the plan, may be paid from the pension fund upon approval by the Board
to the extent permitted under applicable law and not otherwise paid
by the employer.
F.
Hold harmless. No member of the Board, the Committee, the plan administrator,
nor any other person involved in the administration of the plan (other
than any person, bank, firm or corporation which is independent of
the employer and which renders services to the plan for a fee) shall
be liable to any person on account of any act or failure to act which
is taken or omitted to be taken in good faith in performing their
respective duties under the terms of this article. To the extent permitted
by law, the employer shall, and hereby does agree to, indemnify and
hold harmless the plan administrator and each successor and each of
any such individual's heirs, executors and administrators, and
the delegates and appointees (other than any person, bank, firm or
corporation which is independent of the employer and which renders
services to the plan for a fee) from any and all liability and expenses,
including counsel fees, reasonably incurred in any action, suit or
proceeding to which he is or may be made a party by reason of being
or having been a member, delegate or appointee of the plan administrator,
except in matters involving criminal liability, intentional or willful
misconduct. If the employer purchases insurance to cover claims of
a nature described above, then there shall be no right of indemnification
except to the extent of any deductible amount under the insurance
coverage or to the extent of the amount the claims exceed the insured
amount.
G.
Approval of benefits. The plan administrator shall review and approve
or deny any application for retirement benefits within 30 days following
receipt thereof or within such longer time as may be necessary under
the circumstances. Any denial of an application for retirement benefits
shall be in writing and shall specify the reason for such denial.
H.
Appeal procedure. Any person whose application for retirement benefits
is denied, who questions the amount of benefit paid, who believes
a benefit should have commenced which did not so commence or who has
some other claim arising under the plan ("claimant") shall first seek
a resolution of such claim under the procedure hereinafter set forth.
(1)
Any claimant shall file a notice of the claim with the plan administrator
which shall fully describe the nature of the claim. The plan administrator
shall review the claim and make an initial determination approving
or denying the claim.
(2)
If the claim is denied in whole or in part, the plan administrator
shall, within 90 days (or such other period as may be established
by applicable law) from the time the application is received, mail
notice of such denial to the claimant. Such ninety-day period may
be extended by the plan administrator if special circumstances so
require for up to 90 additional days by the plan administrator's
delivering notice of such extension to the claimant within the first
ninety-day period. Any notice hereunder shall be written in a manner
calculated to be understood by the claimant and, if a notice of denial,
shall set forth (i) the specific plan provisions on which the denial
is based, (ii) an explanation of additional material or information,
if any necessary to perfect such claim and a statement of why such
material or information is necessary, and (iii) an explanation of
the review procedure.
(3)
Upon receipt of notice denying the claim, the claimant shall have
the right to request a full and fair review by the Board of the initial
determination. Such request for review must be made by notice to the
Board within 60 days of receipt of such notice of denial. During such
review, the claimant or a duly authorized representative shall have
the right to review any pertinent documents and to submit any issues
or comments in writing. The Board shall, within 60 days after receipt
of the notice requesting such review (or in special circumstances,
such as where the Board in its sole discretion holds a hearing, within
120 days of receipt of such notice), submit its decision in writing
to the person or persons whose claim has been denied. The decision
shall be final, conclusive and binding on all parties, shall be written
in a manner calculated to be understood by the claimant and shall
contain specific references to the pertinent plan provisions on which
the decision is based.
(4)
Any notice of a claim questioning the amount of a benefit in pay
status shall be filed within 90 days following the date of the first
payment which would be adjusted if the claim is granted unless the
plan administrator allows a later filing for good cause shown.
(5)
A claimant who does not submit a notice of a claim or a notice requesting
a review of a denial of a claim within the time limitations specified
above shall be deemed to have waived such claim or right to review.
A.
Operation of the pension fund.
(1)
The Board is hereby authorized to hold and supervise the investment
of the assets of the pension fund, subject to the provisions of the
laws of the Commonwealth and of this article and any amendment thereto.
(2)
The pension fund shall be used to pay benefits as provided in the
plan and, to the extent not paid directly by the employer, to pay
the expenses of administering the plan pursuant to authorization by
the employer.
(3)
The employer intends the plan to be permanent and for the exclusive
benefit of its employees. It expects to make the contributions to
the pension fund required under the plan. The employer shall not be
liable in any manner for any insufficiency in the pension fund; benefits
are payable only from the pension fund, and only to the extent that
there are monies available therein.
(4)
The pension fund will consist of all funds held by the employer under
the plan, including contributions made pursuant to the provisions
hereof and the investments, reinvestments and proceeds thereof. The
pension fund shall be held, managed, and administered pursuant to
the terms of the plan. Except as otherwise expressly provided in the
plan, the employer has exclusive authority and discretion to manage
and control the pension fund assets. The employer may, however, appoint
a trustee, custodian and/or investment manager, at its sole discretion.
B.
Powers and duties of employer. With respect to the pension fund,
the employer shall have the following powers, rights and duties, in
addition to those vested in it elsewhere in the plan or by law, unless
such duties are delegated.
(1)
To retain in cash so much of the pension fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), without liability for interest thereon.
(2)
To invest and reinvest the principal and income of the fund and keep
said fund invested, without distinction between principal and income,
in securities which are at the time legal investments for fiduciaries
in accordance with Chapter 73 of the Pennsylvania Probate Estates
and Fiduciaries Investment Code, or as the same may be subsequently
modified or amended.
(3)
To sell property held in the fund at either public or private sale
for cash or on credit at such times as it may deem appropriate; to
exchange such property; to grant options for the purchase or exchange
thereof.
(4)
To consent to and participate in any plan of reorganization, consolidation,
merger, extension or other similar plan affecting property held in
the fund; to consent to any contract, lease, mortgage, purchase, sale
or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights pertaining to
property held in the fund.
(6)
To exercise all voting rights with respect to property held in the
fund and in connection therewith to grant proxies, discretionary or
otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this article no matter where situated, including
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
(8)
In addition to the foregoing powers, the employer shall also have
all of the powers, rights, and privileges conferred upon trustees
in accordance with Chapter 73 of the Pennsylvania Probate Estates
and Fiduciaries Code, or as the same may be subsequently modified
or amended, and the power to do all acts, take all proceedings and
execute all rights and privileges, although not specifically mentioned
herein, as the employer may deem necessary to administer the pension
fund.
(9)
To maintain and invest the assets of this article on a collective
and commingled basis with the assets of other pension plans maintained
by the employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
(10)
To invest the assets of the pension fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company which may act as a trustee hereunder. In this connection,
the commingling of the assets of this article with assets of other
eligible, participating plans through such a medium is hereby specifically
authorized. Any assets of the plan which may be so added to such collective
trusts shall be subject to all of the provisions of the applicable
declaration of trust, as amended from time to time, which declaration,
if required by its terms or by applicable law, is hereby adopted as
part of the plan, to the extent of the participation in such collective
or commingled trust fund by the plan.
(11)
To make any payment or distribution required or advisable to carry
out the provisions of the plan, provided that if a trustee is appointed
by the employer, such trustee shall make such distribution only at
the direction of the employer.
(12)
To compromise, contest, arbitrate, enforce or abandon claims and
demands with respect to the plan.
(13)
To retain any funds or property subject to any dispute without liability
for the payment of interest thereon, and to decline to make payment
or delivery thereof until final adjudication is made by a court of
competent jurisdiction.
(14)
To pay, and to deduct from and charge against the pension fund, any
taxes which may be imposed thereon, whether with respect to the income,
property or transfer thereof, or upon or with respect to the interest
of any person therein, which the fund is required to pay; to contest,
in its discretion, the validity or amount of any tax, assessment,
claim or demand which may be levied or made against or in respect
of the pension fund, the income, property or transfer thereof, or
in any matter or thing connected therewith.
(15)
To appoint any persons or firms (including but not limited to, accountants,
investment advisors, counsel, actuaries, physicians, appraisers, consultants,
professional plan administrators and other specialists), otherwise
act to secure specialized advice or assistance, as it deems necessary
or desirable in connection with the management of the fund; to the
extent not prohibited by applicable law, the employer shall be entitled
to rely conclusively upon and shall be fully protected in any action
or omission taken by it in good faith reliance upon, the advice or
opinion of such persons or firms, provided such persons or firms were
prudently chosen by the employer, taking into account the interests
of the participants and beneficiaries and with due regard to the ability
of the persons or firms to perform their assigned functions.
(16)
To retain the services of one or more persons or firms for the management
of (including the power to acquire and dispose of) all or any part
of the fund assets, provided that each of such persons or firms is
registered as an investment advisor under the Investment Advisors
Act of 1940, is a bank (as defined in that Act), or is an insurance
company qualified to manage, acquire or dispose of pension trust assets
under the laws of more than one state; in such event, the employer
shall follow the directions of such investment manager or managers
with respect to the acquisition and disposition of fund assets, but
shall not be liable for the acts or omissions of such investment manager
or managers, nor shall it be under any obligation to review or otherwise
manage any fund assets which are subject to the management of such
investment manager or managers. If the employer appoints a trustee,
the trustee shall not be permitted to retain such an investment manager
except with the express written consent of the employer.
C.
Common investments. The employer shall not be required to make separate
investments for individual participants or to maintain separate investments
for each participant's account, but may invest contributions
and any profits or gains therefrom in common investments.
D.
Compensation and expenses of appointed trustee. If a trustee is appointed,
the trustee shall be entitled to such reasonable compensation as shall
from time to time be agreed upon by the employer and the trustee,
unless such compensation is prohibited by law. Such compensation,
and all expenses reasonably incurred by the trustee in carrying out
its functions, shall constitute a charge upon the employer or the
pension fund, which may be executed at any time after 30 days written
notice to the employer. The employer shall be under no obligation
to pay such costs and expenses, and, in the event of its failure to
do so, the trustee shall be entitled to pay the same, or to be reimbursed
for the payment thereof, from the pension fund.
E.
Periodic accounting. If a trustee is appointed, the pension fund
shall be evaluated annually, or at more frequent intervals, by the
trustee and a written accounting rendered as of each fiscal year end
of the fund, and as of the effective date of any removal or resignation
of the trustee, and such additional dates as requested by the employer,
showing the condition of the fund and all receipts, disbursements
and other transactions effected by the trustee during the period covered
by the accounting, based on fair market values prevailing as of such
date.
F.
Value of the pension fund. All determinations as to the value of
the assets of the pension fund, and as to the amount of the liabilities
thereof, shall be made by the employer or its appointed trustee, whose
decisions shall be final and conclusive and binding on all parties
hereto, the participants and beneficiaries and their estates. In making
any such determination, the employer or trustee shall be entitled
to seek and rely upon the opinion of or any information furnished
by brokers, appraisers and other experts, and shall also be entitled
to rely upon reports as to sales and quotations, both on security
exchanges and otherwise as contained in newspapers and in financial
publications.
A.
Amendment of the plan. The employer may amend this article at any
time or from time to time by an instrument in writing executed in
the name of the employer under its municipal seal by officers duly
authorized to execute such instrument and delivered to the Board for
enactment as an ordinance or resolution; provided, however:
(1)
That no amendment shall deprive any participant or any beneficiary
of a deceased participant of any of the benefits to which such person
is entitled under this article with respect to contributions previously
made;
B.
Termination of the plan. The employer shall have the power to terminate
this article in its entirety at any time by an instrument in writing
executed in the name of the employer.
C.
Automatic termination of contributions. Subject to the provisions
of the Act governing financially distressed municipalities, the liability
of the employer to make contributions to the pension fund shall automatically
terminate upon liquidation or dissolution of the employer, upon its
adjudication as a bankrupt or upon the making of a general assignment
for the benefit of its creditors.
D.
Distribution upon termination.
(1)
In the event of the termination of the plan, all amounts of vested
benefits accrued by the affected participants as of the date of such
termination, to the extent funded on such date, shall be nonforfeitable
hereunder. In the event of termination of the plan, the employer shall
direct either (a) that the plan administrator continue to hold the
vested accrued benefits of participants in the pension fund in accordance
with the provisions of the plan (other than those provisions related
to forfeitures) without regard to such termination until all funds
have been distributed in accordance with the provisions; or (b) that
the plan administrator immediately distribute to each participant
an amount equal to the vested accrued benefit to the date.
(2)
If there are insufficient assets in the pension fund to provide for
all vested accrued benefits as of the date of plan termination, priority
shall first be given to the distribution of any amounts attributable
to mandatory or voluntary employee contributions before assets are
applied to the distribution of any vested benefits attributable to
other sources hereunder.
(3)
All other assets attributable to the terminated plan shall be distributed
and disposed of in accordance with the provisions of applicable law
and the terms of any instrument adopted by the employer which effects
such termination.
E.
Residual assets. If all liabilities to vested participants and any
others entitled to receive a benefit under the terms of the plan have
been satisfied and there remain any residual assets in the pension
fund, such residual assets remaining shall be returned to the employer
insofar as such return does not contravene any provision of law, and
any remaining balance, in excess of employer contributions, shall
be returned to the commonwealth.
F.
Exclusive benefit rule. In the event of the discontinuance and termination
of the plan as provided herein, the employer shall dispose of the
pension fund in accordance with the terms of the plan and applicable
law. At no time prior to the satisfaction of all liabilities under
the plan shall any part of the corpus or income of the pension fund,
after deducting any administrative or other expenses properly chargeable
to the pension fund, be used for or diverted to purposes other than
for the exclusive benefit of the participants in the plan, their beneficiaries
or their estates.
A.
Actuarial valuations.
(1)
The plan's actuary shall perform an actuarial valuation at least
biennially.
(2)
Such biennial actuarial valuation report shall be made as of the
beginning of each plan year occurring in an odd-numbered-calendar
year, beginning with the year 1985, and shall be prepared and certified
by an approved actuary, as such term is defined in the Act.
(3)
The expenses attributable to the preparation of any actuarial valuation
report or investigation required by the Act or any other expense which
is permissible under the terms of the Act and which are directly associated
with administering the plan shall be an allowable administrative expense
payable from the assets of the pension fund. Such allowable expenses
shall include but not be limited to the following:
(a)
Investment costs associated with obtaining authorized investments
and investment management fees;
(b)
Accounting expenses;
(c)
Premiums for insurance coverage on fund assets;
(d)
Reasonable and necessary counsel fees incurred for advice or
to defend the fund; and
(e)
Legitimate travel and education expenses for plan officials;
provided, however, that the municipal officials of the employer; in
their fiduciary role, shall monitor the services provided to the plan
to ensure that the expenses are necessary, reasonable and benefit
the plan; and further provided that the plan administrator shall document
all such expenses item by item, and where necessary, hour by hour.
B.
Duties of Chief Administrative Officer.
(1)
Such actuarial reports shall be prepared and filed under the supervision
of the Chief Administrative Officer.
(2)
The Chief Administrative Officer of the plan shall determine the
financial requirements of the plan on the basis of the most recent
actuarial report and shall determine the minimum municipal obligation
of the employer with respect to funding the plan for any given plan
year. The Chief Administrative Officer shall submit the financial
requirements of the plan and the minimum municipal obligation of the
employer to the Board annually and shall certify the accuracy of such
calculations and their conformance with the Act.
C.
Benefit plan modifications. Prior to the adoption of any benefit
plan modification by the employer, the Chief Administrative Officer
of the plan shall provide to the Board a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
actuary, which estimate shall disclose to the Board the impact of
the proposed benefit plan modification on the future financial requirements
of the plan and the future minimum municipal obligation of the employer
with respect to the plan.
A.
Plan not a contract of employment. No police officer of the employer
nor anyone else shall have any rights whatsoever against the employer
or the plan administrator as a result of this article except those
expressly granted to them hereunder. Nothing herein shall be construed
to give any police officer the right to remain on the police force
of the employer.
B.
Masculine/feminine; singular/plural. For purposes of this article,
the masculine shall be read for the feminine and the singular shall
be read for the plural, wherever the person or context shall plainly
so require.
C.
Construction of document. This article may be executed and/or conformed
in any number of counterparts, each of which shall be deemed an original
and shall be construed and enforced according to the laws of the Commonwealth,
excepting such Commonwealth's choice of law rules.
D.
Headings. The headings of articles are included solely for convenience
of reference, and if there be any conflict between such headings and
the text of the plan, the text shall control.
E.
Severability of provisions. In case any provisions of this article
shall be held illegal or invalid for any reason, said illegality or
invalidity shall not affect the remaining parts of this article, and
the plan shall be construed and enforced as if said illegal and invalid
provisions had never been inserted therein.
F.
Incapacity of participant. If any participant shall be physically
or mentally incapable of receiving or acknowledging receipt of any
payment of pension benefits hereunder, the plan administrator, upon
the receipt of satisfactory evidence that such participant is so incapacitated
and that another person or institution is maintaining him, may provide
for such payment of pension benefits hereunder to such person or institution
so maintaining him, and any such payments so made shall be deemed
for every purpose to have been made to such participant.
G.
Liability of officers of the plan administrator and/or employer.
Subject to the provisions of the Act and unless otherwise specifically
required by other applicable laws, no past, present or future officer
of the employer shall be personally liable to any participant, beneficiary
or other person under any provision of the plan.
H.
Assets of the fund. Nothing contained herein shall be deemed to give
any participant or beneficiary any interest in any specific property
of the pension fund or any right except to receive such distributions
as are expressly provided for under the plan.
I.
Pension fund for sole benefit of participants. The income and principal
of the pension fund are for the sole use and benefit of the participants
covered hereunder and, to the extent permitted by law, shall be free,
clear and discharged from and are not to be in any way liable for
debts, contracts or agreements, now contracted or which may hereafter
be contracted, and from all claims and liabilities now or hereafter
incurred by any participant or beneficiary.
A.
DROP
DROP PARTICIPANT
DROP PARTICIPANT ACCOUNT
NORMAL RETIREMENT BENEFIT
ROBINSON TOWNSHIP POLICE PENSION PLAN or PLAN
SUBSIDIARY DROP PARTICIPANT ACCOUNT
Definitions. The following words and phrases when used in this § 46-13 shall have the meanings given to them in this section only, unless the context clearly indicates otherwise:
A deferred retirement option plan established and being operated
by the Robinson Township, Allegheny County, Pennsylvania, effective
as of March 27, 2015.
The pension trust fund ledger account.
The retirement benefit payable to a participant of a defined
benefit pension plan at the point in time when the participant satisfies
the age and service requirements for full, unreduced retirement benefits.
The Robinson Township Police Pension Plan.
The separate, interest bearing, subsidiary DROP participant account established for a DROP participant under § 46-13E(2).
B.
Eligibility and participation.
(1)
Eligibility of employee to participate in DROP.
(a)
Effective March 27, 2015, members of the Robinson Township police
officers' bargaining unit that have not retired prior to the
implementation of the DROP program may enter into the DROP on the
first day of any month following the attainment of age 50 and the
completion of 25 or more years of credited service with the Robinson
Township Police Department. Any member of the Robinson Township police
officer's bargaining unit who will reach normal retirement eligibility
under the current collective bargaining agreement between the Robinson
Township Police Association and the Township of Robinson, which expires
on December 31, 2017, and reach the age of 50 before December 31,
2018, shall also be eligible for the DROP plan.
(b)
An eligible member of the plan electing to participate in the
DROP must complete, execute and file a DROP election form with the
retirement plan administrator during the twenty-one-day election period
beginning on October 12, 2015, and ending on November 2, 2015. The
written election form completion and submittal must not exceed 30
days from the date on which the member wishes the DROP election to
be effective, with the exception of those members who will become
eligible for retirement under the current collective bargaining agreement
but will not reach the age of 50 until the year 2018. These members
shall provide their written election during the twenty-one-day period
established by the Township with a DROP commencement beginning on
the day following their 50th birthday.
(2)
Participation in DROP. An eligible participant may elect to participate
in this DROP for a period not to exceed 36 months. Upon deciding to
participate in a DROP, a participant must submit, on forms provided
by the Township, all of the following:
(a)
A binding and irrevocable letter of resignation from regular
employment with the Robinson Township which discloses the participant's
intent to retire and specifies the participant's retirement date.
(b)
An irrevocable written election to participate in the DROP which must specify the effective date of DROP participation that shall be one day after the participant's specified retirement date, specify the DROP termination date which satisfies the limitation in § 46-13B(5), detail a DROP participant's rights and obligations under the DROP and include an agreement to forgo:
(c)
The DROP participant shall be required to provide any other
information required by the Township.
(3)
Eligibility for disability. If a DROP participant becomes eligible
for a disability benefit provided under the Robinson Township Pension
Plan, if applicable, and terminates employment, the monthly normal
retirement benefit of the DROP participant shall terminate.
(4)
Effective dates of DROP participation. A retired participant's
effective date of participation in a DROP shall begin on the day following
the effective date of the participant's retirement, and a retired
participant's participation in a DROP shall end on the last day
of the participation period specified in the resolution establishing
the DROP based on the effective date of the retired participant's
participation in the DROP.
(5)
DROP participation termination. A DROP participant may change the DROP termination date to an earlier date within the limitations of § 46-13B(3), but may not change it to a later date than elected at the time of initial DROP participation. No penalty shall be imposed for early termination of DROP participation. Upon either early or regular termination of DROP participation, the DROP participant shall be separated from employment by the Robinson Township and the plan shall pay the balance in the DROP participant's subsidiary DROP participant account to the terminating participant as provided in § 46-13C(2). The DROP participant shall be ineligible to re-enroll in the DROP thereafter even if the former DROP participant is re-employed by the Robinson Township with renewed active membership in the Robinson Township Pension Plan.
(6)
DROP participant contributions. DROP participants shall neither be
required nor permitted to pay contributions into the plan during the
DROP participation period.
C.
DROP benefits.
(1)
Fixed retirement benefits, retirement date and DROP dates. Effective with the date of retirement, which must be the day before the effective date of DROP participation, the participant's monthly, late retirement benefit as calculated under § 46-4C of the plan, the participant's effective date of retirement and the participant's effective dates of beginning and terminating participation in the DROP shall be fixed. There shall be no further retirement benefit accruals after the participant's effective date of retirement.
(2)
Normal retirement benefit payments and accruals. The retired participant's
monthly retirement benefit shall be credited to the DROP participant's
subsidiary DROP participant account in the pension trust fund. The
DROP participant's subsidiary account shall not contain a guaranteed
interest rate but shall be credited with interest at the actual rate
earned by the pension fund but shall not be less than 0% nor greater
than 4.5%, and shall be compounded monthly as of the first day of
the month coincident with or following the participant's retirement
date. The participant's monthly retirement benefit shall be credited
to the account after the interest has been credited to the existing
account balance in the DROP participant's subsidiary DROP participant
account. The participant's retirement benefit and interest on
that benefit shall continue to accrue in this manner on the first
day of each month thereafter during the participant's DROP participation.
A separate accounting of the DROP participant's accrued benefit
accumulation under the DROP shall be calculated annually and provided
to the participant.
(3)
Payment of DROP benefits. On the effective date of a DROP participant's
termination of employment with the Township as a DROP participant,
participation in the DROP shall cease; and the plan shall calculate
and pay to the participant the participant's total accumulated
DROP benefits in the DROP participant's subsidiary DROP participant
account subject to the following provisions:
(a)
The terminating DROP participant or, if the participant is deceased,
the participant's named beneficiary shall elect on a form provided
by the plan administrator to receive payment of the DROP benefits
in accordance with one of the following options:
[1]
The balance in the DROP participant's subsidiary DROP participant
account, less withholding taxes, if any, remitted to the Internal
Revenue Service, shall be paid within 45 days of the receipt of the
election form, by the plan from the account to the DROP participant
or surviving beneficiary.
[2]
The balance in the DROP participant's subsidiary DROP participant
account shall be paid within 45 days of the receipt of the election
form, by the plan from the account directly to the custodian of an
eligible retirement plan as defined in § 402(c)(8)(B) of
the Internal Revenue Code of 1986 or in the case of an eligible rollover
distribution to the surviving spouse of a deceased participant to
an eligible retirement plan which is an individual retirement account
or an individual retirement annuity as described in § 402(c)(9)
of the Internal Revenue Code of 1986.
[3]
The plan administrator shall arrange for the purchase of an
annuity equal in value to the balance in the DROP participant's
subsidiary DROP participant account.
[4]
If the DROP participant or beneficiary fails to elect a method of payment within 60 days after the participant's termination date, the plan shall pay the balance directly to the custodian of an eligible retirement plan as provided in Subsection C(3)(a)[2].
[5]
The form of payment selected by the DROP participant or surviving
beneficiary shall comply with the minimum distribution requirements
of the Internal Revenue Code of 1986.
(b)
The terminating DROP participant shall commence receipt of the
monthly retirement benefit directly starting with the first day of
the month coincident with or next following termination of employment
with the Township.
(c)
The monthly retirement benefits that would have been payable
had the DROP participant elected to cease employment and receive a
normal retirement benefit or late retirement benefit shall, upon the
DROP participant commencing participation in the DROP program, be
credited on the first day of each month into a separate ledger account
established by the plan administrator to track and accumulate the
participant's DROP benefits. This account shall be designated
the DROP account. The DROP account shall not contain a guaranteed
interest rate but shall be credited with interest at the actual rate
earned by the pension fund but shall not be less than 0% nor greater
than 4.5%, and shall be compounded monthly. All earnings credited
to the DROP account will be included in the final cash settlement.
(d)
The DROP shall at all times comply with the annual benefit limitations
of Code § 415 and the regulations thereto.
(4)
Pre-retirement benefits. Except for those benefits specified in § 46-13B(2)(b) as forgone by the member, a DROP participant shall be eligible for any employee benefits provided to active employees before retirement by Robinson Township and those otherwise provided by law, including but not limited to, benefits under the act of June 2, 1915 (P.L. 736, No. 338), known as the Workers' Compensation Act; the act of June 28, 1935 (P.L. 477, No. 193), referred to as the Enforcement Officer Disability Benefits Law; the act of December 5, 1936 (2nd Sp. Sess., 1937 P.L. 2897, No. 1), known as the Unemployment Compensation Law; the act of June 24, 1976 (P.L. 424, No. 101), referred to as the Emergency and Law Enforcement Personnel Death Benefits Act; and the Public Safety Officers' Benefit Act of 1976 (Public Law 94-430, 42 U.S.C. § 90 stat. 1347).
D.
DROP death benefits.
(1)
DROP benefits for designated beneficiary. If a DROP participant dies, the participant's designated beneficiary shall be entitled to apply for and receive the benefits accrued in the DROP participant's subsidiary DROP participant account as provided in § 46-13C(2).
(2)
Final credited monthly retirement benefit. The monthly retirement
benefit accrued in the DROP participant's DROP participant account
during the month of a DROP participant's death shall be the final
monthly retirement benefit credited for DROP participation.
(3)
DROP eligibility terminates upon participant's death. A DROP
participant's eligibility to participate in the DROP terminates
upon the death of the DROP participant. If a DROP participant dies
on or after the effective date of participation in the DROP but before
the initial monthly retirement benefit of the participant accruable
for the month has accrued in the DROP participant's subsidiary
DROP participant account, the Robinson Township shall pay the monthly
retirement benefit as though the participant had not elected DROP
participation and had died after the employee's effective date
of retirement, but before receipt of the retired participant's
first normal retirement benefit.
(4)
Survivors ineligible for active employee's death benefit. The
survivors of a DROP participant who dies shall not be eligible to
receive retirement death benefits payable in the event of the death
of an active employee.
E.
Administrative provisions.
(1)
Subsequent employment and renewal of active membership. After both the termination of the participant's employment as a DROP participant by the Robinson Township and the expiration of the DROP participation period, a former DROP participant shall be subject to such re-employment limitations as other retired employees and shall be eligible for renewed membership as an active participant in the plan and the DROP participant shall be ineligible to re-enroll in the DROP pursuant to § 46-13B(4).
(2)
DROP participant account.
(a)
As the Robinson Township establishes a DROP, it shall establish
a DROP participant account as a separate interest-bearing, ledger
account in its pension trust fund for each DROP participant. The account
balance shall be accounted for separately but need not be physically
segregated from other pension trust fund assets. A separate, interest-bearing,
subsidiary DROP participant account shall be established for each
DROP participant.
(b)
While a retired participant is employed as a DROP participant, the participant's monthly, retirement benefit and interest on that benefit shall be credited to the DROP participant account under § 46-13C(2). When a DROP participant terminates employment with the Robinson Township as a DROP participant, the participant's total accumulated benefits shall be calculated, charged to the DROP participant account and paid out of the pension trust fund under § 46-13C(3).
(c)
The balance in the DROP participant's account shall be excluded from actuarial valuation reports of the plan prepared and filed under this legislation. The DROP participant's account shall be held in trust for the exclusive benefit of DROP retired participants who are or were DROP participants and for the beneficiaries of these participants or an alternate payee pursuant to § 46-13C(3).
(3)
State Law. This ordinance has been drafted to comply with the terms
and provisions of Act No. 44 of 2009, 53 P.S. § 895.1101-895.1131.
In the event that any such terms are deemed to conflict with the mandates
of Act 44, as it shall be amended from time to time, this ordinance
shall be amended in order to meet the mandatory compliance so long
as the individual legal rights of members and DROP participants are
adversely affected.