[Ord. 2007-05, 8/7/2007]
1.
Creation of Police Pension Fund. Pursuant to the authority granted
to Plumstead Township (hereinafter "the Township") by the Police Pension
Fund Act, Act of May 25, 1956, P.L. (1955) 1804, as amended, 53 P.S.
§ 767 et seq., ("Act 600"), there is hereby established
the Plumstead Township Police Pension Fund ("Township Police Pension
Fund" or "the Fund") for the benefit of all full-time police officers
employed by the Plumstead Township Police Department.
2.
Definition of "Policeman." As used in this Plan, the term "policeman"
or "police officer" means a regular, full-time, paid policeman who
was appointed by the Plumstead Township Board of Supervisors to serve
as a policeman in the Township Police Department. The word includes
such a policeman who has completed at least six months of service,
regardless of whether the individual has completed his or her probationary
period. Although the word "policeman" and other words of masculine
gender are used in this Plan, the masculine gender is used only for
convenience and brevity, and the masculine gender is intended to include
the feminine gender.
[Ord. 2007-05, 8/7/2007]
2.
Segregation of Plan Assets.
A.
The assets which comprise the Police Pension Fund shall be kept separate
and apart from other assets and funds of the Township; and any proper
payment or distribution from the Police Pension Fund shall not be
a charge on any other asset or fund of the Township.
B.
The assets which comprise the Police Pension Fund shall be deemed
to be assets which are held by the Township in trust for administration,
investment, management and distribution as directed by the Board of
Supervisors in accordance with, and subject to, the provisions of
Act 600, as well as all other applicable Pennsylvania laws.
3.
Employment of Actuary and Auditor. The Township shall employ an actuary
to render the services to be provided by an actuary under the provisions
of Act 600. Likewise, the Township may employ an independent auditor.
4.
Investments. The assets of the Police Pension Fund shall be invested
in such investments as are authorized by Act 600.
5.
Authority to Administer Plan. Although the Township may delegate
to others the authority to administer, invest, manage or distribute
the assets of the Police Pension Fund, the responsibility for the
funding, solvency, administration, investment, management, and actuarial
soundness of the Police Pension Fund in all its aspects cannot be
delegated; and that responsibility shall always remain with the Township
and its governing body. The Township's authority with respect to the
Fund shall include the ability to receive gifts, grants, devises or
bequests to the Fund or any money, real or personal property or mixed.
6.
Additional Audits. In addition to any audit of the Police Pension Fund which is made by the Pennsylvania Department of the Auditor General, the independent auditor appointed by the Township under § 1-602, Subsection 3, of this Part to audit the accounts and records of the Police Pension Fund shall perform an audit at the same time and in the same manner as he audits the other accounts and records of the Township.
7.
Plan Expenses. Except as prohibited by the Pennsylvania Municipal Pension Plan Funding Standard and Recovery Act ("Act 205"), Act of December 18, 1984, P.L. 1005, as amended, 53 P.S. § 895.101 et seq., or by a regulation, directive, opinion, or the like issued by the Pennsylvania Department of the Auditor General, the costs, charges, fees, and other expenses of administering, managing and distributing the assets of the Police Pension Fund (including the charges or fees of the actuary and the independent auditor appointed pursuant to § 1-602, Subsection 3, of this Part, a trustee or fiduciary custodian, an investment advisor, or the like) shall be paid from the Fund.
[Ord. 2007-05, 8/7/2007]
1.
Participation in Fund. Every policeman shall be a participant in
the Fund. A policeman shall join the Fund by signing and filing with
the Township Secretary an agreement in a form prescribed by the Township
and containing not less than the following provisions:
2.
Amount of Contribution. Every policeman shall pay into the Fund a
monthly contribution equal to not more than 5% of his total gross
monthly compensation. The Board of Supervisors may, on an annual basis,
by ordinance or resolution, reduce or eliminate payments into the
Fund by policemen in accordance with the terms of the collective bargaining
agreement, including any interpretation thereof, applicable to members
of the Plan. Reduction or elimination of member contributions shall
not permit the return of contributions or any interest or Fund earnings
to be made to members while actively employed as a Township police
officer.
[Ord. 2007-05, 8/7/2007]
1.
Pension Benefits.
A.
Normal Retirement. For officers hired on or after January 1, 2006, a police officer may retire from the Police Department with a monthly retirement pension benefit upon completing 25 years of total consecutive service in the Police Department and attaining the age 50. Both the service and age requirements must be met in order to receive normal retirement pension benefits. Notwithstanding the forgoing, for a police officer hired before January 1, 2006, and in accordance with § 1-609, Subsection 2, eligibility for a superannuation retirement shall occur upon the member's attainment of 50 years of age or older and completion of at least 12 years of credited service, based upon the number of years of service times 2% times final average salary. For police officers hired before January 1, 1984, and in accordance with § 1-609, Subsection 2, eligibility for a superannuation retirement shall occur upon the member's attainment of 59 years of age or older and completion of at least 11 years of credited service, based upon the number of years of service times 2% times final average salary; provided, however, that in no event shall the basic benefit exceed 50% of the member's final average salary.
[Amended by Ord. 2010-06, 8/17/2010]
B.
Credit for Intervening Military Service. In order to satisfy the service requirement contained in Subsection A of this subsection, any Township policeman who has been a regularly appointed Township police officer for a period of at least six months and who thereafter shall enter into the military service of the United States shall have credited to his employment record for pension or retirement benefits all of the time spent by him in such military service, if such person returns or has heretofore returned to his employment within six months after his separation from the service.
C.
Vesting.
(1)
If a policeman, before meeting both the service and age requirements prescribed by Subsection A above, but after having completed 12 years or more of total consecutive service in the Township Police Department, ceases for any reason to be employed as a policeman in the Township Police Department, he shall be entitled to vest his monthly retirement pension benefit by filing with the Township Secretary (within 90 days after the date on which the policeman ceased to be employed as a policeman) a written notice that his monthly retirement pension benefit is to be deemed to have vested. Upon reaching the date when both the service and age requirements prescribed by Subsection A above would have been met if he had continued to be employed as a policeman, he shall receive a partial monthly retirement pension benefit determined as 50% of the "average monthly salary," as that term is utilized in § 1-604, Subsection 2, that he was paid during the last 36 months of his service in the Police Department prior to his cessation of employment multiplied by a fraction, the numerator of which shall be the number of consecutive years he served in the Police Department prior to his cessation of employment, and the denominator of which shall be the number of consecutive years he served in the Police Department prior to his cessation of employment plus the number of years remaining to the date when both the service and age requirements prescribed by Subsection A would have been met if he had continued to be employed as a policeman. In no event shall the numerator of the fraction be less than 12 years, nor shall the denominator of the fraction be less than 25 years. A policeman who elects to vest his pension shall not be eligible to receive a normal retirement benefit or a refund of contributions.
(2)
For officers hired prior to January 1, 2006, the vested benefit
shall be based on 2% of the member's final average salary multiplied
by the years of credited service; provided, however, that in no event
shall the vested benefit exceed 50% of the member's final average
salary.
2.
Calculation of Benefit.
A.
The monthly retirement pension benefit for a policeman retiring under § 1-604 shall be determined as 50% of the average monthly salary which he was paid during his last 36 months of service in the Police Department, subject to the fraction, if applicable, described under § 1-604, Subsection 1C (Vesting). The monthly benefit for officers hired prior to January 1, 2006, shall be based on 2% of the member's final average salary multiplied by all the years of credited service; provided, however, that in no event shall the basic benefit exceed 50% of the member's final average salary.
B.
For the purposes of computing the average monthly salary under this section and § 1-605, Subsection 2 (Disability Retirement), the term "salary" shall mean and include the following: regular base pay or base salary, longevity salary, overtime pay for overtime worked in the line of duty, holiday shift pay, callback pay, court appearance pay for a court appearance in the line of duty but while off duty, and education pay. However, one-time lump-sum payments for accrued but unused leave time, such as remuneration for unused vacation days or sick time, shall not be counted as salary and shall not be used in making the computation, nor shall any member contributions required under § 1-603, Subsection 2, above be withheld from such sums.
3.
Survivor Benefits.
A.
For all officers hired after January 1, 2006, and for those officers hired prior to January 1, 2006, who have not selected an optional benefit, upon the death of a policeman who is receiving retirement benefits or who is eligible to receive retirement benefits, including a disability pension benefit under § 1-605 herein, the surviving spouse shall be entitled, during his or her lifetime, to receive a survivor benefit equal to 50% of the pension the policeman was receiving or would have been receiving at the time of the policeman's death. If there is no surviving spouse or if the surviving spouse subsequently dies, then the child or children of the policeman shall be entitled to receive a survivor's benefit equal to 50% of the pension which the policeman was receiving or would have been receiving had the policeman retired at the time of death. Such survivor's benefit to the child or children shall continue until the child or children reach the age of 18, or until age 23, if the child is attending college.
B.
For purposes of this section, the phrase "attending college" shall
mean being enrolled in an institution of higher learning and carrying
a minimum course load of seven credits per semester.
4.
Killed in Service. In the event that an officer is killed in service,
the officer's surviving spouse, or, if there is no surviving spouse,
the officer's minor children, shall be entitled to receive benefits
in accordance with the Emergency and Law Enforcement Personnel Death
Benefits Act ("Act 51"), 53 P.S. § 891 et seq.
[Amended by Ord. 2013-02, 3/12/2013]
6.
Social Security Offset. There shall be no offset for any social security payments received by a policeman receiving pension benefits pursuant to this Plan, except as required pursuant to § 1-605 (Disability Pension).
7.
Optional Retirement. No optional form of retirement pension benefit
shall be available for any officer hired after January 1, 2006. For
those officers hired prior to January 1, 2006, the following shall
apply:
A.
A member who has involuntarily terminated after eight years of credited
service or who has separated voluntarily after 24 years of credited
service may retire early. Benefits shall be actuarially reduced for
each year or partial year thereof that early retirement takes place
prior to the applicable retirement age.
B.
At the time a member elects to receive retirement benefits, the benefit
may be payable throughout the member's life, in which case the benefit
is known as a "single life annuity." The member may alternately elect,
at the time of retirement, to receive the actuarial equivalent value
of such an annuity in accordance with the following options. Selection
of any such option by a member hired prior to January 1, 2006, shall
control, and any survivorship benefits other than the option chosen
shall not be operable:
(1)
If the member dies before receiving in payments the present
value of the retirement allowance as it was at the time of retirement,
the balance, if less than $5,000, shall be paid in a lump sum to the
designated beneficiary if living, or if the named beneficiary predeceases
the member or if no beneficiary is named, then to the member's estate.
If the balance is $5,000 or more, the beneficiary may elect, by application
to the Township, to receive payment of such balance in accordance
with the following provisions:
(2)
Upon the annuitant's death, the retirement allowances shall
be continued through the life of and paid to the survivor annuitant,
if then living.
(3)
Upon the annuitant's death, half of the retirement allowance
shall be continued throughout the life of and paid to the surviving
annuitant, if then living.
[Ord. 2007-05, 8/7/2007]
1.
Eligibility. A policeman who is injured in the line of duty with
the Police Department and who then becomes, in the opinion of a physician
selected by the Township, so disabled as a result of that injury as
to be incapable of continuing to perform his normal police duties
permanently shall be honorably discharged from the Police Department
with a monthly disability pension benefit.
2.
Calculation of Monthly Benefit. The monthly disability pension benefit
for a permanently disabled policeman shall be determined as: 50% of
the police officer's salary at the time of permanent disability. Any
police officer who receives benefits for the same injuries under the
Social Security Act, 42 U.S.C. § 301 et seq., shall have
his benefits offset or reduced by the amount of such benefits.
3.
Payment of Benefit. The monthly disability pension benefit determined pursuant to § 1-605, Subsection 2, shall be paid monthly in advance to the disabled policeman during his lifetime. No optional form of disability pension shall be available to officers hired after January 1, 2006. A policeman who receives a disability pension shall not be eligible to receive a retirement pension or a refund of contributions.
[Ord. 2007-05, 8/7/2007]
1.
Amount of Refund. If a policeman ceases to be a member of the Police Department and is ineligible for any reason, including a non-service-related death prior to rendering 12 years of service, to receive a retirement pension under § 1-604 or a disability pension under § 1-605 of the Plan, the policeman shall be entitled to receive a refund of contributions which the policeman made to the Police Pension Fund, together with any interest earned on such contributions. The amount of the refund to which the former policeman is entitled under this section shall be paid from the Fund within 30 days after the policeman ceased to be a member of the Department.
2.
Payment of Refund. Except in the case where the policeman ceased to be a member of the Police Department because of his death, the payment from the Fund shall be made directly to the former policeman. In the case where the policeman ceased to be a member of the Police Department because of his death, the payment from the Fund shall be made to the primary or contingent beneficiaries named by him in the agreement referred to in § 1-603, Subsection 1, or, in the absence of any such beneficiaries, to his estate.
[Ord. 2007-05, 8/7/2007]
1.
Right of Appeal. A policeman or a beneficiary who alleges that an
official, officer, employee, agent or representative of the Township
has made a requirement, order or decision which incorrectly interprets,
administers, applies or enforces a provision of this Plan or a provision
of Act 600 shall have the right to appeal the matter to the Board
of Supervisors or its designee for a decision and shall have the right
to have the Board of Supervisors or its designee hear the appeal pursuant
to the provisions of the Pennsylvania Local Agency Law, 2 Pa. C.S.A. § 101
et seq.
[Ord. 2007-05, 8/7/2007]
1.
Composition of Board. The Township shall form a Police Pension Fund
Board, to be comprised of one representative from the Police Benevolent
Association who is a police employee and also a resident of Plumstead
Township, a representative from the Board of Supervisors, the Township
Manager, and two residents of Plumstead Township chosen by the Board
of Supervisors, knowledgeable in the funding and operation of pension
plans. In the absence of a Township Manager, this position shall remain
vacant.
[Ord. 2007-05, 8/7/2007]
1.
General. To the extent that a provision of this Plan is the same
as or consistent with a provision of Act 600 and was mandated by the
Act, it shall be subject to amendment or repeal by the Board in order
to comply with amendments or repeals of provisions of Act 600. In
addition, a provision of this Plan may be amended or repealed by the
Board if statutory authority is granted therefor or if restrictions
or mandates imposed by Act 600 are removed or alleviated.
2.
Rights of Retirees. Despite anything implied to the contrary in and pursuant to Section 8 of Act 600, 53 P.S. § 774, a change in an eligibility requirement, or a change in the method of determining a benefit under § 1-604 or § 1-605 of this Part, shall not in any way diminish the rights which a policeman serving in the Police Department prior to the effective date of the change expected to have under the requirement, or expected to have in the benefit, or increase the benefit rights of retirees.
[Ord. 2007-05, 8/7/2007]
1.
General. To the fullest extent permitted by law, the interest of
any policeman or beneficiary in the Police Pension Fund or in any
benefit payable therefrom shall not be subject to anticipation, alienation,
transfer, assignment or pledge; shall not be subject to any debts
or obligations of a policeman or beneficiary; and shall not be subject
to bank attachment, garnishment or other legal process.
[Ord. 2007-05, 8/7/2007]
1.
BENEFICIARY
DROP
DROP ACCOUNT
FUND or PLAN
POLICE OFFICERS
Definitions.
The individual identified by a police officer to receive
the contents of an officer's DROP account in the event of the death
of an officer during period in which the officer is participating
in the DROP but before the officer separates from employment.
Deferred Retirement Option Plan.
A separate account created to accept a DROP participant's
monthly pension check while a DROP participant.
The Police Pension Plan for Plumstead Township.
Police Officers of Plumstead Township.
2.
Eligibility. As of the effective date of this Subpart 6A, police
officers who have not retired prior to the implementation of the DROP
Program may enter into DROP on the first day of any month following
completion of 25 years of credited service and attaining the age of
50.
3.
Written Election.
A.
A police officer electing to participate in the DROP must complete
and file with the Township Manager a DROP option form prepared by
the Township which shall evidence the member's participation in the
DROP. The form must be signed by the member and notarized and submitted
to the Township prior to the date on which the member wishes the DROP
option to be effective. The DROP option notice shall include an irrevocable
notice to the Township, by the member, that the member shall resign
from employment with the Plumstead Township Police Department effective
on a specific date (the "resignation date"). In no event shall the
resignation date be shorter than 12 months or longer than 60 months
from the execution of the DROP option form. An officer shall cease
to work as a police officer on the officer's resignation date, unless
the Township terminates or honorably discharges the officer prior
to the resignation date.
B.
In addition, all retirement documents required by the Police Pension
Plan Administrator must be filed and presented to the Township for
approval of retirement and payment of pension. Once a retirement application
has been approved by the Township, it is irrevocable.
4.
Pension Contributions. A police officer shall not be required to
make any contributions to the Fund during his/her DROP period.
5.
Limitation on Pension Accrual. After the effective date of the DROP
option, the police officer shall no longer earn or accrue additional
years of continuous service for pension purposes.
6.
Benefit Calculation. For all Retirement Fund purposes, continuous
service of a police officer participating in the DROP shall remain
as it existed on the effective date of commencement of participation
in the DROP. Service thereafter shall not be recognized or used for
the calculation or determination of any benefits payable by the Police
Pension Plan of Plumstead Township. 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 DROP. 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.
7.
Payments to the DROP Account. The monthly retirement benefits that
would have been payable had the police officer elected to cease employment
and receive a normal retirement benefit, shall, upon the police officer
commencing participation in DROP, be paid into the separate account
established to receive the participant's monthly pension payments.
This account shall be designated as the DROP account. An individual
officer's DROP account shall be a self-directed investment vehicle,
with the officer having exclusive control over the investment of his
or her DROP account monies. The Township accepts no responsibility
and makes no guarantee for the performance of any investments made
by the officer, nor shall the Township guarantee or be required to
guarantee that an officer's DROP account generate a specific amount
of earnings or income or any earnings or income at all. Any investment
losses occurring in an officer's DROP account shall be solely the
responsibility of the officer, and the Township assumes no liability
or responsibility for the same. Likewise, the Township's establishment
of a DROP shall not be construed to endorse any retirement vehicle
or investment manager, nor shall the DROP be construed as providing
tax advice or other information to retirees. By entering into the
DROP, each participating officer holds the Township harmless for any
tax, financial or other consequences of the DROP Program or the officer's
participation therein.
8.
Accrual of Nonpension Benefits. After a police officer elects to
participate in the DROP Program, all other contractual benefits shall
continue to accrue, with the exception of those provisions relating
to the Police Pension Plan.
9.
Payout. Upon the resignation date set forth in the police officer's
DROP option notice or such date as the Township separates the member
from employment, the retirement benefits payable to the police officer
or the police officer's designated beneficiary, if applicable, shall
be paid to the police officer or beneficiary and shall no longer be
paid to the police officer's Deferred Retirement Option Account. Within
30 days following termination of a police officer's employment pursuant
to his or her participating in the DROP Program, the balance in the
police officer's DROP account shall be paid to the police officer
in a single lump-sum payment or, at the police officer's option, in
any manner permitted by law. By participating in the DROP, each officer
agrees to hold the Township harmless for any tax or other consequences
flowing from the officer's disposition of the payout under this section.
10.
Disability During DROP. If a police officer becomes temporarily incapacitated
during his participation in DROP, that police officer shall continue
to participate in the DROP 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 DROP. In no event shall
a police officer on temporary disability have the ability to draw
from his DROP account. However, notwithstanding any other provision
in this subsection, if a police officer is disabled and has not returned
to work as of his required resignation date, then such resignation
shall take precedence over all other provisions herein, and said officer
shall be required to resign. If a police officer becomes permanently
disabled during the DROP period, the officer shall be honorably discharged
from employment on the date that the police officer may obtain the
contents of his DROP account and thereafter commence receiving his
normal pension benefit.
11.
Death. If a DROP participant dies before the DROP account balances
are paid, the participant member's designated beneficiary shall have
the same rights as the police officer to withdraw the account balance.
12.
Forfeiture of Benefits. Notwithstanding a police officer's participation
in the DROP Plan, a police officer who is convicted or pleads guilty
to engaging in criminal misconduct, which constitutes a "crime related
to public office or public employment," as that phrase is defined
in Pennsylvania's Pension Forfeiture Act, 43 P.S. §§ 1311
through 1314, and interpreted thereunder, shall forfeit his right
to receive a pension, including any amounts currently deposited in
the DROP account. In such a case, the police officer shall only be
entitled to receive the contributions, if any, made by the police
officer to the Fund, without interest.
13.
Amendment. Any amendments to the this § 1-610.1 shall be consistent with the provisions covering Deferred Retirement Option Plans set forth in any applicable collective bargaining agreement and shall be binding upon all future DROP participants and upon all DROP participants who have balances in their Deferred Retirement Option Accounts. The DROP Plan may only be amended by a written instrument, not by any oral agreement or past practice.
14.
Effect of Provisions. A police officer's election to participate
in the DROP 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.
15.
Change in Law. In the event that the DROP provision is declared invalid
or illegal by a court of competent jurisdiction or through an administrative
determination of the Office of the Auditor General, the police officers
shall have the right to bargain in accordance with Act 111 over deletion
of this benefit. It is expressly understood that any such bargaining
shall not involve bargaining over a replacement provision.
[Ord. No. 2008-06, 4/1/2008; as amended by Ord. No. 2020-02, 7/14/2020]
Plumstead Township (the "Township"), having established a Nonuniform
Pension Plan administered by the Pennsylvania Municipal Retirement
System (the "System"), hereby elects to amend its Nonuniform Pension
Plan administered by the System in accordance with Article IV of the
Pennsylvania Municipal Retirement Law, 53 P.S. § 881.101
et seq., ("Retirement Law"), and does hereby agree to be bound by
all the requirements and provisions of the Retirement Law and the
Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101
et seq., and to assume all obligations, financial and otherwise, placed
upon member municipalities.
[Ord. No. 2008-06, 4/1/2008; as amended by Ord. No. 2020-02, 7/14/2020]
As part of this Subpart 6B, the Township agrees that the System
shall administer and provide the benefits set forth in the amended
Nonuniform Pension Plan Document entered into between the Pennsylvania
Municipal Retirement Board and the Township effective as of the date
specified in the adoption agreement (the "contract").
[Ord. No. 2008-06, 4/1/2008; as amended by Ord. No. 2020-02, 7/14/2020]
The Township acknowledges that, by passage and adoption of this
Subpart 6B, the Township officially accepts the contract and the financial
obligations resulting from the administration of the contract.
[Ord. No. 2008-06, 4/1/2008; as amended by Ord. No. 2020-02, 7/14/2020]
Payment for any obligation established by the adoption of this
Subpart 6B and the contract shall be made by the Township in accordance
with the Retirement Law and the Municipal Pension Plan Funding Standard
and Recovery Act. The Township hereby assumes all liability for any
unfundedness created due to the benefit structure set forth in the
contract.
[Ord. No. 2008-06, 4/1/2008; as amended by Ord. No. 2020-02, 7/14/2020]
The Township intends this Subpart 6B to be the complete authorization
of the contract, as amended, and it shall become effective as of the
date specified in the adoption agreement, which is the effective date
of the contract, as amended.
[Ord. No. 2008-06, 4/1/2008; as amended by Ord. No. 2020-02, 7/14/2020]
A duly certified copy of this Subpart 6B and an executed contract
shall be filed with the System.
