[Ord. 988, 4/7/1993; Ord. No. 1251, 4/2/2025]
Pursuant to the provisions of Act 600 of 1956, the Borough of Quakertown hereby establishes and reenacts a Police Pension Fund (originally passed as Ordinance 591 of 1957, as amended) ("fund" for this Article A of Part 4 of Chapter 1 of the Borough Code) for the benefit of all full-time police officers in the Quakertown Police Department.
[Ord. 988, 4/7/1993; Ord. No. 1251, 4/2/2025]
The fund shall be under the supervision of Council. However, Council may appoint the Borough Manager or a Pension Fund Committee to supervise the activities of the fund and report to Council. In addition, Council may appoint a trustee to manage the fund, and report directly to the Borough Manager, Pension Fund Committee, and/or Council.
[Ord. 988, 4/7/1993; Ord. No. 1251, 4/2/2025]
Every full-time police officer of the Quakertown Police Department shall automatically become a member of the fund after successfully completing his/her probationary period ("member"). In joining the fund, the member agrees to be bound by the provisions of this article of this Part and amendments thereto, and by applicable State statutes including Act 600 of 1956, as amended. For purpose of this article, a full-time police officer is one appointed by Council in conformance with any/all state laws and Borough ordinances, rules, and regulations. Once his/her probationary period is successfully completed, the member's actual beginning date for purposes of calculating benefits shall be his/her first day of full-time employment in the Quakertown Police Department.
[Ord. 988, 4/7/1993; Ord. 1083, 5/7/2003, § 404; Ord. No. 1251, 4/2/2025]
Each member shall pay into the fund an amount equal to but not less than the contribution agreed to in the then applicable labor agreement between the Borough and the union representing the rank and file officers in the Borough Police Department. Such contribution shall be made by deducting this amount from each paycheck the member receives from the Borough. However, Council shall review annually the financial condition of the fund, as prepared by the actuary, and may, by annual resolution, reduce or eliminate contributions by members.
[Ord. 988, 4/7/1993; Ord. 1001, 9/1/1993, § 1; Ord. 1167, 2/3/2010; Ord. No. 1251, 4/2/2025]
A member of the fund who has attained the age of 50 years and who shall have served an aggregate of at least 25 years in the Quakertown Police Department may retire from active duty and start receiving full monthly pension benefits from the fund. The monthly pension benefits shall be computed at 1/2 the average monthly salary of such member during the last 36 months of employment. For purposes of computing this pension benefit, "salary" shall be defined as W-2 wages (including base pay, overtime, longevity, and holiday pay). In addition, the pension benefit will be increased by a service increment of $100 per month for each year of service in excess of 25 years, up to a maximum service increment of $500 per month.
[Ord. 988, 4/7/1993; Ord. No. 1251, 4/2/2025]
Any member who dies, discharged, voluntarily withdraws, or retires on disability with less than 12 years of membership in the fund and has not acquired vested rights in the fund shall be paid all of his/her contributions to the fund, plus 5% interest that has accrued.
[Ord. 988, 4/7/1993; Ord. No. 1251, 4/2/2025]
1. 
All members in the fund shall have the right to vested pension benefits following a minimum of 12 years of membership in the fund. Any member who wishes to vest his/her pension must file his/her intent to do so in writing to Borough Council within 90 days of the date the member ceases to be a full-time police officer for the Borough. The pension benefit shall be payable starting after a projected retirement date, that is, the date the member would have retired had he/she remained in the fund. Upon reaching this projected retirement date, the member shall be paid a monthly retirement benefit determined by applying the percentage of years of service to the years the member would have rendered had the he/she continued to work for the Quakertown Police Department until he/she qualified to receive full pensions benefits as set forth in § 1-405 above, to the full monthly pension benefits. For the purpose of this § 1-407, the monthly pension benefits shall be 1/2 the average monthly salary the member was paid during his/her last 60 months of membership in the fund.
Partial Monthly Pension
=
One-half the member's average monthly salary during his/her last 60 months of employment
X
Actual number of years member was employed in Quakertown Police Department
Total number of years member would have worked to be eligible for a full pension benefit
2. 
Notwithstanding the above, if the Borough's Chief of Police retires on or before March 31, 2027, the pension payable at this early retirement date shall be the benefit described in § 1-405, based upon the maximum 25 years of service.
[Ord. 988, 4/7/1993; Ord. 1045, 8/5/1998, § 1; Ord. 1049, 11/4/1998, § 1; Ord. 1083, 5/7/2003, § 408; Ord. 1167, 2/3/2010; Ord. No. 1251, 4/2/2025]
1. 
A member may, upon written application and approval by Council, be retired on disability and receive a pension benefit as set forth in this § 1-408. Before Council shall review and approve such an application, the member must submit to a physical examination by a physician designated by Council. Based on this examination, this designated physician must certify that the member is too physically and/or mentally incapacitated to fully, properly, and safely perform all the necessary duties of a police officer employed by the Borough; that such incapacity was caused by an incident which occurred while the member was on duty for the Quakertown Police Department; and that retirement of this member is recommended based on such incapacity.
2. 
Once every year Council may require any member retired on disability to undergo a medical examination by a physician designated by Council. Should the physician report and certify to Council that such disabled member is no longer physically or mentally incapacitated for the performance of the member's duties associated with the normal occupational requirements of any position with the Quakertown Police Department, then his/her disability benefits hereunder shall be discontinued. Should such a member refuse to submit to at least one medical examination in any year by a physician designated by Council, the member's disability benefits hereunder shall be discontinued until withdrawal of such refusal, and should such refusal continue for one year or more, then all rights in and to any disability pension benefit shall be forfeited.
3. 
In the event a member is killed in service and his/her surviving spouse and/or dependent children are not eligible for any benefits under § 1-409, the member's designated beneficiary shall be paid all the member's contributions to the fund, plus 5% interest that has accrued.
4. 
A member who retires on disability in accordance with this § 1-408 shall be entitled to receive a pension benefit equal to 50% of his/her monthly salary at the time the disability was incurred, offset by Social Security. For purposes of computing this pension benefit, "salary" shall be defined as W-2 wages (including base pay, overtime, longevity, and holiday pay). This benefit shall continue until the member's death.
[Ord. 988, 4/7/1993; Ord. 1083, 5/7/2003, § 409; Ord. 1191, 4/4/2012; Ord. No. 1251, 4/2/2025]
1. 
If a member dies after having become eligible to receive a pension benefit because the member was already receiving a pension or met the age and service requirements to receive a pension but was not yet retired, and is survived by a spouse and/or dependent children, then a monthly pension benefit shall be provided to the spouse and/or dependent children.
2. 
The amount of the monthly pension benefit to a surviving spouse and/or dependent children shall be 50% of the pension benefit the member, at the time of his/her death, was receiving or would have been entitled to receive if the member had been retired at that time.
3. 
When a member dies before being eligible for normal retirement or preretirement survivor benefits as set forth above under § 1-409(1) and (2), the surviving spouse and/or dependent children may be eligible to receive survivor benefits under the following circumstances:
A. 
If the member dies after completing 12 or more years of service, the surviving spouse may act on behalf of the member to vest the member's pension in accordance with § 1-407. If the pension is vested this way, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following what would have been the member's normal retirement date if he/she had survived to retirement.
B. 
If the member dies after completing 20 or more years of service, the surviving spouse may act on behalf of the member in electing to take an early retirement benefit in accordance with § 1-413. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit commencing on the first day of the month following the election of this benefit.
4. 
The monthly pension benefit is payable to the surviving spouse until his/her death, then to surviving dependent children.
5. 
In the event the member dies (and is not killed in service) before completing 12 years of service, all money which the member invested in the fund plus interest or other increases in the value of the member's investment in the fund shall be payable as one lump sum to the surviving spouse or, if there is no surviving spouse, then to surviving dependent children, unless the member has designated another beneficiary for this purpose.
6. 
For the purposes of this § 1-409, dependent children shall be defined to include the deceased member's biological children, stepchildren, adopted children, and any such children conceived at the time of the member's death, who are under the age of 18 years or if attending school or college, under the age of 24 years. Attending school or college shall mean the eligible children are attending an accredited academic institution for at least four hours a day, five days a week or are registered with and carrying a minimum course load of seven credit hours per semester at an accredited institution of higher learning. This attendance requirement does not apply between semesters or school years, so long as it is shown the child has taken all of the necessary steps to meet these requirements once the next semester/school year starts. A child who ages out of this definition shall no longer be considered a dependent child and shall not be eligible for the survivor benefits set forth above, except for those he/she has already received before aging out.
[Ord. 988, 4/7/1993; Ord. No. 1251, 4/2/2025]
The expenses of administering or managing this fund, including the cost of a Trustee or actuary, shall be paid out of the fund.
[Ord. 988, 4/7/1993; Ord. No. 1251, 4/2/2025]
Each member receiving pension benefits shall be entitled to a cost-of-living increase to commence on the first March 1 after the commencement of his/her pension and on each March 1 thereafter. Such cost-of-living increases shall not exceed the percentage increase as determined by the Department of Labor in the All Urban Consumers Price Index for the Philadelphia Metropolitan Region for the calendar year immediately prior to the increase. In no case shall: the benefit ever decrease; the annual benefit exceed 75% of the member's average annual salary used for computing retirement benefits in § 1-407; nor the total cost-of-living increase shall not exceed 30%. No cost-of-living increase shall be granted which would impair the actuarial soundness of the fund.
[Ord. 988, 4/7/1993; Ord. No. 1251, 4/2/2025]
It is the intention of Borough Council to establish this fund in accordance with Pennsylvania law, in particular, Act 600 and Act 205.[1]
[1]
Editor's Note: See 53 P.S. § 767 et seq. and 53 P.S. § 895.101 et seq., respectively.
[Ord. 1065, 4/9/20001, § 1; Ord. No. 1251, 4/2/2025]
Each member may retire on or at any time after his/her early retirement date. (For purposes of this § 1-413, early retirement date shall mean the first day following the date on which the member completes 20 years of membership in the fund.) Upon termination, the member must file with the Borough Manager a written notice of his/her intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit (as calculated in accordance with § 1-407). The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation filed with the Commonwealth.
[Ord. 1065, 4/9/2001, § 1; Ord. 1191, 4/4/2012; Ord. No. 1251, 4/2/2025]
1. 
The fund may provide full-service credit of one year for each year of military service, not to exceed five years, to any member who was not employed by the Borough prior to such military service. The amount due for the purchase of credit for military service other than intervening military service shall be computed by applying average normal cost rate for the fund, but not to exceed 10%, to the member's average annual rate of compensation over the first three years of service to the Quakertown Police Department and multiplying the result by the number of years and fractional part of a year of creditable nonintervening military service being purchased, together with interest at the rate of 4 3/4% compounded annually from the date of initial membership with the fund to the date of payment. Any member shall be eligible to receive service credit for nonintervening military service, provided that the member is not entitled to receive, eligible to receive now or in the future, or is receiving retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other governmental agency, with the exception of a member eligible to receive or receiving military retirement pay earned by a combination of active duty and nonactive duty with a reserve or National Guard component of the armed forces, which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Chapter 67 (relating to retired pay for nonregular service).
2. 
Any member who has been employed by the Quakertown Police Department as such for at least six months and who enters active military service for the United States shall have credited to his/her employment record for pension or retirement benefits all of the time spent by him/her in such military service, provided that the member return to employment within six months after his/her separation from such military service. Any member shall be eligible to receive service credit for intervening military service, provided that the member is not entitled to receive, eligible to receive now or in the future, or is receiving retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other governmental agency, with the exception of a member eligible to receive or receiving military retirement pay earned by a combination of active duty and nonactive duty with a reserve or National Guard component of the armed forces, which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Chapter 67 (relating to retired pay for nonregular service).
[Ord. 1126, 12/6/2006, § 1; Ord. No. 1251, 4/2/2025]
1. 
Definitions. As used in this § 1-415, the following terms shall have the meanings indicated:
DROP
Deferred retirement option plan.
DROP ACCOUNT
Separate account created to accept DROP Participants' monthly pension benefit check while he/she is participating in DROP.
DROP BENEFICIARY
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.
FUND
The Police Pension Fund for the Borough of Quakertown.
2. 
Eligibility. Members may enter 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 member electing to participate in DROP ("DROP Participant") must complete and file with the Manager the Borough's "DROP option form" which shall evidence the member's desire to participate in DROP. This form must be signed by the member and notarized and submitted to the Manager at least 30 days prior to the date on which the member wishes the DROP option to be effective ("DROP effective date").
B. 
Submission of a fully completed DROP option form shall constitute an irrevocable notice to the Borough by the member, that said member shall retire from the Borough Police Department effective on a specific date ("DROP Retirement Date"). The DROP effective date shall be one day after the DROP retirement date. As such, the member must submit to the Manager with his/her DROP option form, all retirement documents required by the Police Pension Fund Administrator for approval of retirement and payment of pension. Once a retirement application has been approved by the Manager, it is irrevocable. Likewise, once the election is made to participate in DROP, the member, for fund purposes, is considered to be retired with no access to benefit payments until after his/her DROP termination date.
C. 
By submitting a DROP option form, a member will be deemed to have agreed to forgo: (i) active membership in the fund; (ii) any growth in the member's average monthly salary used for calculating the pension benefit in § 1-407; and (iii) any additional pension benefit accrual for retirement purposes, including service increments specified in § 1-405.
D. 
The fully completed DROP option form shall also contain the date the member intends to cease participating in DROP ("DROP termination date"). In no event shall the DROP termination date be less than 12 months or more than 60 months after the DROP effective date. A DROP participant shall cease to work for the Borough Police Department on his/her DROP termination date unless the Borough has terminated or honorably discharged the participant prior to such DROP termination date. A DROP participant may elect to change his/her DROP termination date during DROP participation to an earlier date by informing the Manager in writing of such change at least 30 days prior to the new DROP termination date. A DROP termination date cannot be moved to a later date. No penalty shall be imposed for early termination of DROP participation.
4. 
Pension Contributions. A DROP participant shall not be required to make any contributions to the fund while participating in DROP.
5. 
Limitation on Pension Accrual. After his/her DROP retirement date, the DROP participant shall no longer earn or accrue additional years of continuous service for pension purposes.
6. 
Pension Benefit Calculation. For all fund purposes, a DROP participant shall not accrue additional service time, and the amount of service time accrued by such participant shall remain as it existed on his/her DROP retirement date. The average monthly salary of the DROP participant for pension benefit calculation purposes shall remain as it existed on the DROP retirement date. Earnings or increases in earnings received by a DROP participant shall not be recognized or used for the calculation or determination of any pension benefits payable by the fund.
7. 
Payments to the DROP Account. Beginning on the DROP effective date and ending on the DROP termination date, all monthly pension benefit payments payable to a DROP participant shall be deposited into his/her DROP account.
8. 
Accrual of Non-Pension Benefits. After a member elects to participate in DROP, all other contractual benefits shall continue to accrue with the exception of those provisions relating to the fund and the buyback of accrued, but unused, sick or vacation time. A DROP participant may utilize contractually provided leave time, but the Borough shall not be required to buyback any such unused leave time at the end of DROP.
9. 
Payout. Upon the occurrence of the DROP termination date or such date as the Borough separates the DROP participant from employment, the pension benefits payable to the DROP participant shall be paid directly to the DROP participant and shall no longer be paid to the DROP participant's DROP account. Within 30 days following the DROP termination date, the balance in the DROP participant's DROP account shall be paid to the DROP participant in a single lump sum payment or at the DROP participant's option, in any manner permitted by law. Each DROP participant agrees to hold the Borough harmless for any tax or other consequences flowing from the participant's disposition of the payout under this § 1-415.
10. 
Disability During DROP. If a DROP participant becomes temporarily incapacitated during his/her participation in DROP, the participant shall continue to participate in DROP as if fully employed. The DROP participant shall receive disability pay in the same amount as disabled members that are not participating in DROP. In no event shall a DROP participant on temporary disability have the ability to draw from his/her DROP account. Notwithstanding any other provision in this subsection, if a member is disabled and has not returned to work as of his/her DROP retirement date then such retirement shall take precedence over all other provisions herein and said member shall be required to retire. If a DROP participant becomes permanently disabled while participating in DROP, the participant shall be honorably discharged from employment, which discharge date shall become his/her DROP termination date and, thereafter, commence receiving his/her pension benefit.
11. 
Death. If a DROP participant dies before his/her DROP account balances are paid out, the participant's designated beneficiary shall have the same rights as the DROP participant to such balance. If a DROP participant dies while participating in DROP and the Act 600 killed-in-service death benefit is payable to the deceased participant, then the participant's DROP election shall be revoked and the DROP account shall not be payable to any designated beneficiary. If a DROP participant dies while participating in DROP and the Act 600 killed-in-service death benefit is not payable to the deceased participant, then the participant's designated beneficiary shall be entitled to a lump sum payment of the DROP account balance and any applicable survivor benefit paid by the fund.
12. 
Amendment. Any amendments to this § 1-415 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 DROP accounts. The provisions of this section shall only be amended by ordinance, not by any written or oral agreement or past practice.
13. 
Effect of Provisions. A member's election to participate in DROP or current participation in DROP shall in no way be construed as a limitation on the Borough's right to suspend or to terminate such police officer for just cause or to grant the police officer an honorable discharge based upon a physical or mental inability to perform his/her duties.
14. 
Change in Law. In the event that any provision of this § 1-415 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 not have the right to bargain in accordance with PA Act 111[1] over the amendment or deletion of invalid/illegal provision in accordance with such declaration/determination.
[1]
Editor's Note: See 43 P.S. § 217.1.
[Ord. No. 1251, 4/2/2025]
A member who is convicted of or pleads guilty or nolo contendere to engaging in criminal misconduct which constitutes a "crime related to public office or public employment," as that phrase is defined in Pennsylvania's Public Employee Pension Forfeiture Act, 43 P.S. §§ 1311 to 1314, and interpreted thereunder, shall forfeit his/her right to receive any pension benefit, including any amounts currently deposited in a DROP account. In such a case, the member shall only be entitled to receive the contributions, if any, made by the member to the fund, without interest.
[1]
Editor's Note: Ord. 1166, adopted 2/3/2010, provided that the Borough Pension Plan for full-time employees hired after January 1, 2008, heretofore known as the “Governmental Money Purchase Plan and Trust,” is hereby adopted Borough of Quakertown Governmental Money Purchase Plan and Trust. A copy of said plan and trust is on file in the Borough offices.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
It is the purpose of this article to create rules and regulations for the pension plan for nonuniformed employees of the Borough of Quakertown. The Quakertown Borough Manager has primary responsibility for the execution of the administrative affairs of this pension plan.
[Ord. 1006, 11/2/1994, § 1; Ord. 1068, 10/3/2001, § 1; Ord. No. 1251, 4/2/2025]
AGE
The age attained by the employee on his/her last birthday.
AVERAGE COMPENSATION
The average monthly salary of the employee at any time of reference computed over the final 36 months of active, continuous employment by the Borough (not including any kind of reduced, long-term illness pay) prior to such date of reference.
BOROUGH
The Borough of Quakertown, Bucks County, Commonwealth of Pennsylvania.
COUNCIL
The Borough Council, Borough of Quakertown.
EARLY RETIREMENT DATE
The first day of the month coinciding with or following the date on which the member reaches the age of 55 years old.
EMPLOYEE
Any person in full-time employ of the Borough whose customary employment by the Borough is not less than 35 hours a week. Such employment must be permanent and year-round.
FUND
All assets held by the trustee under the trust agreement relating to this plan.
MEMBER
Any employee who has satisfied the eligibility requirements established in this article and who is, at the time of reference, making such contributions as may be required pursuant to § 1-424.
NORMAL RETIREMENT DATE
The first day of the month coinciding with or following the date on which the member attains the age of 65 years old.
PLAN
The Pension Plan for Nonuniformed Employees of the Borough of Quakertown, as set forth in this article and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1 and ending the following December 31.
SERVICE
The aggregate of a member's total periods of employment as a full-time employee of the Borough. If a member enters active military service, either voluntarily or by conscription, after the member has been employed for at least six months by the Borough, such time spent in the armed forces of the United States shall be counted as service for the purposes of this plan, provided such member returns to service with the Borough within six months after his/her discharge or release from such active military duty in the armed forces of the United States. The time spent in military service due to voluntary extension of such military service during a period of peace time shall not be included as service for the purpose of this plan. Time spent on Reserve or National Guard training shall be included as service for the purposes of this plan.
TRUST AGREEMENT
The contract between the Borough and the trustees establishing the terms by which and under which the fund is invested, distributed, accounted for, and terminated, as the same now exists and as it may hereafter be amended.
TRUSTEE
Council or any other agency or person appointed by Council to serve in that capacity.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
1. 
The following persons are eligible to become members:
A. 
All persons who, prior to January 1, 2007, were employees (as defined in this plan) and members of the Borough's non-uniform bargaining unit.
B. 
All persons who, prior to January 1, 2008, were employees (as defined in this plan) and not members of the Borough's non-uniform bargaining unit.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
1. 
Contributions by Members. Members are required to contribute to the fund as set forth in the then-current contract between the Borough and the non-uniform union representing the members. Individual records of contributions by members shall be maintained including all interest credited to the member's contribution account. Interest to be credited shall be 5% annually.
2. 
Refund of Member's Contributions. Any member who for any reason shall be ineligible to receive a pension benefit after having made contributions to the fund shall be entitled to a refund of his/her contributions to the fund, plus the interest on such contributions. Such refund is payable immediately upon discontinuance of his/her employment with the Borough or within a reasonable time (not more than 45 days after discontinuance). If such discontinuance is due to death, then such refund shall be paid to his/her designated beneficiary or, in the absence thereof, to his/her estate.
3. 
Deposits. Contributions by members (if any) shall be remitted to the trustee at each payroll or shortly after.
4. 
State Aid. Payments made by the State Treasurer from the monies received from taxes upon premiums by foreign casualty insurance companies for purposes of pension retirement or disability benefits for members shall be used as follows: (i) to reduce the unfunded liability, or, after such liability has been fully funded; (ii) to apply against the annual obligation of the Borough for future service costs, or to the extent that the payment may be in excess of such obligation; (iii) to reduce member contributions pursuant to this § 1-424.
5. 
Borough Contributions. Subject to the provisions and limitations set forth in other sections of this article, the Borough shall contribute the amounts certified to be necessary by the fund's actuary to provide the benefits provided by the plan.
6. 
Other Contributions. The fund shall be authorized to receive by gift, grant, devise, or bequest, any money or property, real, personal, or mixed, in trust for the benefit of the fund. The trustee of the fund shall be subject to such directions not inconsistent with this plan as the donors of such funds and property may prescribe.
[Ord. 1006, 11/2/1994, § 1; Ord. 1168, 3/1/2010; Ord. 1204, 8/6/2014; Ord. No. 1220, 9/6/2017; Ord. No. 1221, 10/4/2017; Ord. No. 1251, 4/2/2025]
1. 
Normal Retirement. Each member may retire on or at any time after his/her normal retirement date. Any member vested in the plan so retiring shall be entitled to receive a monthly pension benefit commencing as of the first day of the month coincident with or next following his/her date of actual retirement and ending with the payment made as of the first day of the month in which his/her death occurs. The monthly pension benefit to which such retired members shall be entitled under this plan shall be equal to 1.7% of the member's average compensation multiplied by the member's total years of service to the Borough, measured in years and completed months, subject to a maximum of 25 years.
2. 
Postponed Retirement. A member shall be allowed to continue as an employee beyond his/her normal retirement date. In such case, the employee shall remain a member of the plan until he/she retires or ceases to be an employee. Any member on postponed retirement shall continue to make contributions required pursuant to § 1-424.
3. 
Early Retirement. A member may retire on or after his/her early retirement date. The pension benefit payable to such a member who is vested in the plan after the early retirement date is attained shall be the benefit described in § 1-425(1) reduced by 6 2/3% for each year up to five, and 3 1/3% for each year after five and up to 10, that the member's actual retirement date precedes his/her normal retirement date.
A. 
Notwithstanding the above, if the Borough's Director of Finance retires on or before May 31, 2025, the pension payable at this early retirement date shall be the benefit described in § 1-425(1), based upon the maximum 25 years of service and actuarially reduced for early retirement as set forth in § 1-425(3).
4. 
Cost-of-Living Increases. Retired members shall be eligible for cost-of-living increases to their pension benefit commencing on March 1st first occurring after their actual retirement date and on each March 1st thereafter. Such cost-of-living increase shall be equal to the prior calendar year's percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U) in the Philadelphia area. Such a cost-of-living increase shall not exceed 3% in any single year, and the total cost-of-living increases provided to a single retired member shall not exceed 50% of the pension benefit initially received by such member.
[Ord. 1006, 11/2/1994, § 1; Ord. 1068, 10/3/2001, § 1; by Ord. 1069, 12/5/2001, § 1; Ord. 1181, 7/6/2011; Ord. No. 1251, 4/2/2025]
1. 
If a member, who is vested in the plan and who is eligible for early or normal retirement, dies before he/she starts receiving pension benefits, his/her spouse shall receive a monthly pension as a survivor benefit, payable at the member's earliest retirement date and for the remainder of the spouse's lifetime, equal to 50% of the pension the member would have received if he/she had terminated employment on the date of his/her death and survived until his/her earliest retirement date and elected the 50% survivor life annuity form of pension and then died. If the deceased member's spouse is not alive, this survivor benefit shall be payable, in equal shares, to the member's dependent children, if any. If the deceased member has no living spouse nor any living dependent children, no survivor benefit shall be distributed.
2. 
In lieu of receiving a monthly survivor benefit, the spouse or children eligible to receive this survivor benefit under § 1-426(1) above may instead elect to receive a refund of the member's accumulated contributions to the fund with interest as a lump sum. This election must occur before any monthly survivor benefits are distributed.
3. 
If a member who is vested in the plan dies before early or normal retirement eligibility, the spouse or children eligible to receive a survivor benefit under § 1-426(1) above shall receive a refund of the member's accumulated contributions to the fund with interest as a lump sum.
4. 
If a member dies after he/she starts receiving pension benefits, any survivor benefits will be determined by the method of distribution of benefits chosen by such member at retirement as set forth in § 1-428.
5. 
For the purposes of this § 1-426, dependent children shall be defined to include the deceased member's biological children, stepchildren, adopted children, and any such children conceived at the time of the member's death, who are under the age of 18 years or if attending school or college, under the age of 24 years. Attending school or college shall mean the eligible children are attending an accredited academic institution for at least four hours a day, five days a week or are registered with and carrying a minimum course load of seven credit hours per semester at an accredited institution of higher learning. This attendance requirement does not apply between semesters or school years, so long as it is shown the child has taken all the necessary steps to meet these requirements once the next semester/school year starts. A child who ages out of this definition shall no longer be considered a dependent child and shall not be eligible for the survivor benefits set forth above, except for those he/she has already received before aging out.
[Ord. 1006, 11/2/1994, § 1; Ord. 1009, 4/5/1995, § 1; Ord. No. 1251, 4/2/2025]
1. 
If a member leaves the employ of the Borough due to transfer, resignation, discharge, or retirement before attaining six years of service, and thus, is not eligible for pension benefits pursuant to § 1-425, he/she shall be entitled to a refund of his/her accumulated contributions to the fund with interest as a lump sum pursuant to § 1-424(2). If a member leaving the employ of the Borough after April 7, 2025, has at least six years of service, however, the member may elect to leave his/her contributions, plus interest, in the fund to receive a pension benefit to start on his/her normal retirement date.
2. 
The amount of pension benefit received by a member pursuant to § 1-427(1) shall be computed in accordance with § 1-425(3) as of the date of termination.
3. 
A member becomes vested in the plan after six years of service, and no member shall be eligible for a pension benefit without at least six years of service.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
1. 
Options on Normal, Early Retirement, or Vesting. At the time a member decides to receive a pension benefit, the member must elect in writing the type of benefit to be received from the following options, which election cannot be changed once a pension benefit is received:
A. 
Single Life Annuity. This optional form provides a monthly annuity only for the lifetime of the member. There are no survivor benefits provided. This form must have spousal consent.
B. 
Life Annuity with Certain Period. This optional form provides a monthly annuity for the lifetime of the member. If his/her death occurs before the end of a specified period of five, 10, or 15 years, the balance of the annuity payments for the certain period will be paid to the beneficiary. The specified period must be chosen by the member before his/her retirement date and cannot be subsequently changed once a pension benefit is received. The member may change his/her beneficiary at any time.
C. 
Survivorship Life Annuity. This optional form provides a monthly annuity for the lifetime of the member. Upon his/her death, a percentage of 50%, 66 2/3%, or 100% of the pension benefit will continue to be paid to his/her contingent annuitant for the lifetime of this person. The survivorship percentage and contingent annuitant must be elected in writing by the member before his/her actual retirement date and cannot be changed once a pension benefit is received.
2. 
For options in § 1-428(1)B and C above, the actual amounts of the monthly pension benefit shall be determined by use of an actuarial equivalent table with proper interest percentage that is in effect at the time of retirement of the electing member. Regardless of the prohibition of survivor benefits in § 1-428(1), should a member who has elected a single life annuity die before receiving in annuity payments the full amount of the member's total accumulated contributions to the fund, with interest, as of his/her actual retirement date, the balance of such shall be paid to the member's designated beneficiary.
3. 
No pension benefits shall be distributed until the member has elected in writing the type of benefit to be received in accordance with this § 1-428.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
1. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 1-425, 1-426, 1-427 and 1-428 in accordance with the instructions received from Council; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purpose.
2. 
The Borough may employ an actuary, investment advisors, counsel, and/or other professional consultants from time to time in connection with the operation of the plan and/or the fund. Such persons or entities shall be hired and employed in accordance with Pennsylvania Act 44 of 2009,[1] as amended, and shall be compensated by the Borough at such rates may be agreed upon by Council. Such compensation may be paid by the fund.
[1]
Editor's Note: See 53 P.S. § 895.1101 et seq.
3. 
The trustee shall make an annual determination of the fair market value of the fund as of January 1st of the current year and as of such additional dates as Council may direct. The fair market value of the fund shall be reported to the actuary who shall calculate the amount to be contributed to the fund by the Borough with respect to each plan year in accordance with the assumptions most recently adopted by Council for the purpose of such computations; provided, however, that the liability of the Borough to make such contributions is subject to all of the conditions and limitations set forth elsewhere in this plan.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
1. 
The plan shall be administered by Council and the Borough Manager. Council shall make and adopt rules and regulations for the efficient administration of the plan.
2. 
Council shall keep all data, records, and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provisions of the plan, and shall provide all such data, records, and documents to the trustee, the actuary, and any other professional whose services are employed pursuant to § 1-429.
3. 
Council shall construe the plan; shall determine any questions of fact arising under the plan; and shall make all decisions required of it under the plan or the trust agreement and its construction thereof, and decisions and actions taken thereon in good faith shall be final and conclusive. Council may correct any defect or supply any omission or reconcile any inconsistency in such manner and to such extent as it shall deem expedient to carry the plan into effect, and it shall be the sole judge of such expediency. Council shall act uniformly with respect to matters coming before it concerning employees in similar circumstances.
4. 
Council shall serve without bond except as otherwise required by law and without compensation for its services as such.
5. 
The members of Council, and each of them, shall be free of all liability for any act or omission except by willful misconduct or gross negligence, and each of them shall be fully indemnified by the Borough against all judgments not involving findings of their respective personal or collective willful misconduct or gross negligence and against all costs, including counsel fees, incurred in defense of actions brought against them.
6. 
Council shall make available to members, retired members, terminated members, and their respective spouses, dependent children, and beneficiaries, for examination during business hours, such records concerning the plan and the fund as solely pertain to the person requesting and undertaking such an examination.
7. 
To enable Council to perform its functions, the Borough shall supply full and timely information to it on all matters relating to the pay of all members; their retirement, death, termination of employment; and such other pertinent facts as Council may require. Council shall advise the trustee of such of the foregoing facts as may be pertinent to the trustee's administration of the plan and the fund and shall give proper instructions to the trustee for the carrying out of the purposes of this plan.
8. 
Council shall enact such rules and regulations for the conduct of its business and for the administration of the plan as it may consider desirable; provided, the same shall not conflict with any of the provisions of the plan. All actions of Council shall be taken at public meetings at which a quorum shall be present.
9. 
The Borough Manager, acting on behalf of Council, shall have the power to execute all documents necessary to carry out the actions of Council, and any person, partnership, corporation, or government agency shall accept such documents over such signature as if executed by Council.
10. 
Council shall have the right to appoint the Borough Manager to administer and perform its responsibilities concerning the fund and the plan as they pertain to rules and regulations and disseminating information to members.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
1. 
It is the expectation of the Borough that it will continue this plan indefinitely and will from time to time contribute to the fund such amounts as may be needed to provide the benefits set forth in the plan; but continuance of the plan is not assumed as an obligation of the Borough and the right is reserved by the Borough at any time to reduce, suspend, or discontinue its contributions hereunder.
2. 
The Borough assumes no obligation or responsibility with respect to the operation of the plan and does not guarantee the payment of the benefits therein provided for members of the plan. The Borough shall have no liability with respect to the administration of the fund held by the trustee, and payments made under the provisions of this article establishing, amending, or maintaining the plan shall not be a charge on any other fund of the Borough or under its control, save the Nonuniformed Employee's Pension fund herein provided for.
3. 
Nothing contained in the plan shall be held or construed as a contract or guarantee of employment nor to create any liability upon the Borough to retain any person in its service. The Borough reserves the full right to discontinue the service of any person without any liability except for salary or wages that may be due and unpaid, whenever in its judgment its best interests so require, and such discontinuance shall be without regard to this plan.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
1. 
The Borough may amend, curtail, or terminate this plan at any time; provided, however, that no amendment affecting the trustee shall be made without its consent (other than an amendment having the effect of terminating the plan); nor shall any amendment be made which will, in any manner, divert any part of the fund to any purpose other than the exclusive benefit of the members and their spouses, dependent children, and beneficiaries (except upon termination such diversion may be made after all of the fixed and contingent liabilities to the members and their spouses, dependent children, and beneficiaries have been met); nor shall any amendment be made at any time (other than an amendment having the effect of terminating the plan) which will, in any manner, divest any benefit then vested in a member.
2. 
In the event of termination of this plan, the trustee, upon written instructions from Council, shall allocate the assets then remaining in the fund, to the extent that such assets are sufficient, to members and retired members in the following order of precedence:
A. 
To the members and the retired members in an amount equal to their respective contributions with interest, reduced in the case of retired members by any prior distributions made to them.
B. 
To provide benefits due to members in the proportion that the pension earned by each member bears to the total pensions earned for all such members.
C. 
The remaining assets, if any, to each of the remaining members in the proportion that his/her pension credits earned to the date of termination bears to the total pension credits so earned for all such remaining members.
3. 
After allocation of the fund, Council shall determine whether to operate the fund as the source of whatever payments the money so allocated will provide.
[Ord. 1006, 11/2/1994, § 1; Ord. No. 1251, 4/2/2025]
1. 
No benefit under this plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, or encumbrance, nor to seizure, attachment, or other legal process for the debts of any member or member's spouse, dependent children, or beneficiary. This provision shall not apply to a "qualified domestic relations order" defined in IRS Code Section 414(p), and those other domestic relations orders permitted to be so treated by Council under the provisions of the Retirement Equity Act of 1984.[1]
[1]
Editor's Note: See 29 U.S.C. § 1001 et seq.
2. 
Any person dealing with the trustee may rely upon a copy of this plan and any amendments thereto certified to be a true and correct copy by the trustee.
3. 
Anything heretofore contained in this plan to the contrary notwithstanding, it is the intention of the Borough that any action herein provided to be taken by the trustee shall be taken only in accordance with written instructions of Council given in such detail as to preclude the exercise by the Trustee of discretion in the performance thereof.
4. 
In no circumstance, whether upon amendment or termination of this plan or otherwise, shall any part of the fund be used or diverted to any purpose other than the exclusive benefit of members or their spouses, dependent children, or beneficiaries until all the actuarial obligations to such member or member's spouses, dependent children, and beneficiaries have been met.
5. 
If Council deems any person incapable of receiving benefits to which he/she is entitled by reason of minority, illness, infirmity, or other incapacity, it may direct the trustee to make payment directly for the benefit of such person, or to any person selected by Council to disburse it, whose receipt shall be a complete acquittance thereof. Such payment shall, to the extent therefore, discharge any liability of the Borough, the trustee, and the fund.
6. 
Should any provision of this plan be determined to be unconstitutional, illegal, or void by any court of competent jurisdiction, the plan will continue to operate and, to the extent necessary, will be deemed not to include the provision so deemed unconstitutional, illegal, or void.
7. 
Forfeiture of Benefits. A member who is convicted of or pleads guilty or nolo contendere to engaging in criminal misconduct which constitutes a "crime related to public office or public employment," as that phrase is defined in Pennsylvania's Public Employee Pension Forfeiture Act, 43 P.S. §§ 1311 to 1314, and interpreted thereunder, shall forfeit his/her right to receive any pension benefit. In such a case, the member shall only be entitled to receive the contributions, if any, made by the member to the fund, without interest.