[Adopted as Title 2, Ch. 5, Art. 1, of the 1977 Code[1]]
[1]
Editor's Note: This chapter was adopted 12-16-1946 by
Ord. No. 140 and amended 10-23-1951 by Ord. No. 220; 7-13-1953 by
Ord. No. 275; 5-24-1954 by Ord. No. 297; 4-11-1955 by Ord. No. 316;
5-7-1957 by Ord. No. 349; 5-10-1960 by Ord. No. 418; 8-11-1963 by
Ord. No. 519; 11-9-1971 by Ord. No. 720; 11-5-1975 by Ord. No. 832;
1-6-1976 by Ord. No. 840; 9-6-1977 by Ord. No. 872; 4-7-1980 by Ord.
No. 928; 8-3-1981 by Ord. No. 958; 12-21-1981 by Ord. No. 966; 3-1-1982
by Ord. No. 978; 12-6-1982 by Ord. No. 1001; 11-14-1983 by Ord. No.
1033; 2-2-1987 by Ord. No. 1123; 12-3-1990 by Ord. No. 1238; 2-11-1991
by Ord. No. 1248; 6-3-1991 by Ord. No. 1252; 9-9-1991 by Ord. No.
1263; 12-13-1993 by Ord. No. 1311; 3-6-1995 by Ord. No. 1329; 4-8-1996
by Ord. No. 1346; 12-13-1999 by Ord. No. 1406; 2-2-2004 by Ord. No.
1477; 5-3-2004 by Ord. No. 1433; 7-2-2007 by Ord. No. 1545; and 1-11-2016
by Ord. No. 1663.
A.
The Township of Upper Moreland (the "Township") hereby creates, establishes
and reestablishes the Upper Moreland Municipal Police Pension Fund,
a municipal police pension fund (the "Police Pension Plan" or "Plan"),
which Plan shall be maintained by a charge against each member of
the police force; by annual appropriations made by the Township; by
payments made by the Treasurer of the Commonwealth of Pennsylvania
to the Treasurer of the Township, from the monies received pursuant
to the Municipal Pensions Plan Funding Standard and Recovery Act,
Act of December 18, 1984, P.L. 1005, No. 205, 53 P.S. § 895.102
et seq. (the "Act"); and by gifts, grants, devises or bequests granted
to the said Plan.
B.
The terms of the Plan as described herein reflect the terms of the
Police Pension Plan with respect to Plan members who are actively
working as police officers on or after January 1, 2015, the restatement
date. The terms of the Plan as applicable to plan members who terminated
service as police officers prior to January 1, 2015, shall be determined
by the ordinance(s) and collective bargaining agreements establishing
the Plan's terms as of the applicable date of reference.
As used in this article, the following words or terms shall
have the following meanings:
The date in each calendar year that coincides with the date
of the commencement of the police employee's employment as a
full-time sworn police officer for the Township, and each anniversary
thereof.
As the case may be, a police officer retired or discharged
from active service with the Township, or the surviving spouse of
a police officer, or the child or children of a police officer, which
person is entitled to benefits under the provisions of this Police
Pension Plan.
The natural or legally adopted son or sons or daughter or
daughters of a police officer, who have not attained the age of 18
years or 23 years if attending college. For the purpose of this definition,
"attending college" shall be defined as being enrolled in an accredited
institution of higher learning and carrying a minimum course load
of seven credit hours per semester. "Child" shall include any unborn
child of a police officer.
The Internal Revenue Code of 1986, as amended periodically.
For police officers whose commencement of employment as a full-time
police officer is before July 1, 2003, the sum of the police officer's
total earnings, compensation and wages, including base annual salary,
payment for overtime, vacation pay, longevity increment pay, K-9 and
special-duty pay, shift differential, holiday pay, educational incentive
bonus, sick pay, on-call pay or any other direct monetary compensation
paid by the Township of Upper Moreland to such police officer for
the performance of services and duties of a police officer, but excluding
reimbursed expenses, nonmonetary compensation, such as fringe benefits
paid by the Township, and other payments made in lieu of expenses.
For police officers whose commencement of employment as a full-time police officer is on or after July 1, 2003, the sum of the police officer's total earnings, compensation and wages, as set forth above in Subsection A, except that compensation shall not include any lump-sum payments for accrued but unused leave time, including holiday time, which was earned outside of the final 36 months of the police officer's employment included in final average monthly compensation.
The Consumer Price Index, Philadelphia Area, All Urban Consumers,
as published by the Department of Labor of the United States for the
applicable period last preceding the application of such CPI-U to
any benefits under this Police Pension Plan.
Shall be determined as follows:
Each police officer who is employed by the Township for 1,000
hours or more of compensable time from his or her anniversary date
through the date on which he or she retires or separates from service
shall earn one year of credited service for each calendar year that
he or she is employed as a full-time sworn police officer by the Township.
In addition to the above and as provided in § 45-11C, each police officer may purchase up to five years of service credits upon completing five years or more of credited service as a full-time sworn police officer for the Township. Such "acquired service credits" shall constitute credited service for pension plan purposes only, in strict accord with the intervening and nonintervening military service provisions of the Act of May 29, 1956, P.L. (1955) 1804, Section 4, as amended 52 P.S. § 770. The police officer will be required to pay into the trust fund the actuarial cost to obtain the credited service in the manner provided in accordance with approved actuarial standards.
The sum of the police officer's total compensation which
is earned or payable in the police officer's final 36 months
of service divided by 36.
A police officer's wages as defined in Code Section
3401(a) for a plan year for which the Township is required to provide
the plan member a written statement under Code Sections 6041(d), 6051(a)(3)
and 6052. Such 415 compensation shall include any elective deferrals
defined in Code Section 402(g)(3) and all amounts contributed or deferred
at the election of the police officer which are not includible in
the gross income of the plan member by reason of either Code Sections
125A, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b), 414(h)(2) or 457.
The trust maintained in accordance with the trust agreement
through which the benefits under the Plan are funded.
Any wound, damage, impairment or other adverse effect to
or upon the health, physical or mental condition of a police officer.
Fifty years of age.
The duly designated person or entity charged with the administration
of the payment of benefits under the police pension fund.
A participant in the Police Pension Plan.
The duly appointed Chief of Police of the Township Police
Department appointed to that rank by the Board of Commissioners.
A duly appointed and sworn police officer employed by the
Township on a full-time basis, as well as the Police Chief, but shall
not include any police officer employed on a part-time basis by the
Township. A "police officer" does not include any non-police officer
employee of the Township such as, without limitation, school crossing
guards, dispatchers, police matrons, animal control officers, the
Township's Service Officer, and secretarial staff.
Any service (either voluntary or involuntary) by a police
officer in the Uniformed Services if such police officer is entitled
to reemployment rights with the Township with respect to such service
under the Uniformed Services Employment and Reemployment Rights Act
of 1994,[1] as amended.
The regulations, as amended periodically, adopted by the
Internal Revenue Service with respect to the Code.
A former police officer who returns from qualified military
service to employment by the Township within the period of time during
which his reemployment rights are protected by law.
As defined in § 45-16.
A total disability suffered by a police officer that was
incurred in the course of, or as a result of, his or her performance
of duty as a police officer. A total disability will be deemed to
be "service-related" if it is compensable under Pennsylvania's
Workers Compensation Act[2] or the Pennsylvania Occupational Disease Act.[3]
A living person to whom the police officer was legally married
or a living person to whom a retired police officer was legally married
at the time of death of such police officer or retired police officer.
A disability as a result of an injury, disease or condition,
which totally and permanently renders a police officer incapable of
performing the normal duties and functions of a police officer in
the service of the Township.
The Township of Upper Moreland.
The agreement and declaration of trust executed for purposes
of the Plan.
The Armed Forces of the United States, the Army National
Guard and Air National Guard (when engaged in active duty for training,
inactive duty training, or full-time National Guard duty), the commissioned
corps of the Public Health Service, and any other category of persons
designated by the President of the United States in time of war or
emergency.
A.
The Plan shall be administered in accordance with the provisions
of the Act and under the terms of the Trust Agreement, made November
9, 1971, as amended and restated from time to time, approved by the
Board of Commissioners.
B.
The Plan shall be administered by five trustees (the "trustees"),
appointed by the Board of Commissioners. All of the trustees, except
for the police trustee as hereafter provided, shall be residents of
the Township and, except for the of Board of Commissioners' Trustee
as hereafter provided, shall serve a three-year term or until a successor
qualifies. One of the trustees shall be a member of the Board of Commissioners
("Board of Commissioners' trustee") and one of the Trustees shall
be an active duty member of the Police Department ("police trustee").
Both the Board of Commissioners' trustee and the police trustee
shall have alternate members appointed for them, which alternates
may attend and participate in all meetings of the trustees, but shall
have no vote, except in the case of the absence of the appointed trustee
for whom such alternate is appointed. The Chairman of the trustees
shall be selected by a majority vote from the trustees other than
the Board of Commissioners' trustee and the police trustee.
C.
The Board of Commissioners may also appoint a corporate fiduciary
to act as co-trustee.
D.
The trustees, with the approval of the Board of Commissioners, may
also appoint an actuary, all reasonable expense therefor to be paid
by the Township or as an administrative expense of the Plan.
A.
Each police officer who has retired and received an honorable discharge
from the police force will become eligible for a normal retirement
pension benefit upon attaining normal retirement age, provided he
or she has completed at least 25 years of credited service as a police
officer of the Township. Notwithstanding the foregoing, for a police
officer whose commencement of employment as a full-time police officer
is on or after June 1, 2015, to be eligible for the Normal Retirement
Pension Benefit, his or her chronological period of active service
as a full-time police officer must equal or exceed 25 years. The normal
retirement pension benefit beginning at normal retirement age will
be paid as a monthly pension benefit equal to 50% of such police officer's
final average monthly compensation, together with the service increment,
if any.
B.
The normal retirement pension benefit will commence upon the first
day of the month which is either coincident with or which next follows
the retirement of the police officer from active service as a police
officer employed by the Township following attainment of normal retirement
age.
A.
Any active police officer who has reached normal retirement age and
has 25 years of credited service shall be eligible to participate
in the deferred retirement option plan (DROP) at his or her option
in conformance with this section and after providing at least 30 days'
written notice to the Township.
B.
Election to participate by an eligible police officer shall be made
following the date on which the police officer fulfills the minimum
age and service requirements for a normal retirement pension benefit
under the Plan. Once a police officer commences participation in DROP,
he or she may not choose to end participation in DROP and resume contributions
to the Plan.
C.
Election to participate in DROP shall be made by completing the required
request and enrollment forms created by the Township. The elected
DROP entry date shall not be given effect unless such date is at least
30 days following the date that the Township received the required
enrollment forms. The electing eligible police officer shall specify
his or her desired DROP entry date and deferred retirement date. After
review of the completed forms, the Township will provide the eligible
police officer with an enrollment notice confirming his or her elections
and specifying his or her calculated retirement benefit amount. The
enrollment notice shall include a disclaimer of liability with respect
to any tax consequences or investment performance related to a participant's
DROP account. If the eligible police officer does not sign and return
the enrollment notice within 30 days of receipt, his or her election
to enter DROP shall be considered null and void.
D.
The DROP term shall be for a period not more than 48 months from
the date of entry (or 36 months with respect to DROP participants
with a date of entry prior to January 1, 2012). Once enrolled in DROP
the participant can end his or her participation at any time, but
no later than 48 months from date of entry (or 36 months with respect
to DROP participants with a date of entry prior to January 1, 2012).
If a police officer ends his or her participation in the DROP Program
during the DROP term, such action shall constitute a voluntary resignation
from employment. Participation in DROP does not constitute a guarantee
of employment for the DROP term, nor does the Township waive the right
to take disciplinary action, including termination, during the DROP
term for any lawful reason set forth in the civil service section
of the First Class Township Code.
E.
Once enrolled in DROP, the participant shall be retired under the Plan for the purpose of calculating pension benefits and all compensation to be redeemed and/or paid under the collective bargaining agreement upon a police officer's retirement, but not for the purpose of employment with the Upper Moreland Police Department. The DROP participant shall continue to receive all other employee benefits and programs as set forth in the collective bargaining agreement. Once a police officer enters DROP, he or she shall no longer be required to make contributions to the Plan, nor shall be or she be eligible for any further pension benefits other than the pension benefit determined in Subsection F below.
F.
Payments to DROP will be made at the participant's calculated monthly retirement benefit amount at the date the police officer enters DROP. Payments shall be sent to the DROP participant's account with the investment manager on a monthly basis. Payments to DROP shall be increased pursuant to the cost-of-living adjustments as set forth in § 45-15 of this article.
G.
Upon the termination date set forth in the participant's enrollment form, unless a voluntary or involuntary termination occurs sooner, the pension benefits payable to the participant or participant's beneficiary, if applicable, shall be paid to the participant or beneficiary and shall no longer be paid to the participant's DROP account. Between 30 days and 90 days prior to a participant's stated termination date, the participant shall provide instructions to the investment manager mutually selected by the Township and the Upper Moreland Police Benevolent Association (UM PBA) (as described in Subsection H below) regarding the desired disposition of the balance in his or her DROP account. It is understood by the parties that each participant must obtain his or her own professional legal and/or tax advice to determine and analyze the propriety and impact of his or her desired disposition of the DROP account balance under state, federal and local tax laws. The Township assumes no responsibility in this regard whatsoever, and the DROP enrollment form shall contain this disclaimer of liability and must be acknowledged by each participant upon enrollment.
H.
DROP accounts shall be administered by investment manager(s) who
shall be mutually selected by the Township and UM PBA. The costs and
fees associated with the management and administration of the DROP
shall be paid exclusively by the DROP participant. The DROP participant
shall be solely and exclusively responsible for all risks associated
with his or her account with the investment manager. The Township
shall have no responsibility or liability for the performance of a
participant's DROP account, and the enrollment form required
of each participant shall require an acknowledgment of this disclaimer.
I.
The Township has made no representations regarding the manner in
which DROP accounts must be treated for federal, state or local tax
purposes and that the Township shall bear no responsibility, financial
or otherwise, for any tax consequences to the DROP participants. Any
such consequences, including any fines or penalties, as well as any
professional legal and/or tax advice which may be appropriate, shall
be the sole and exclusive responsibility of each DROP participant.
The UM PBA has contractually agreed to hold harmless the Township
for any penalties, fines or costs imposed or assessed by the United
States Internal Revenue Service, the Pennsylvania Department of Revenue,
or any municipality or other governmental agency or entity with taxing
authority, which relate to the manner in which the parties have agreed
to treat DROP accounts as described herein provided it was not caused
by the negligence of the Township. As soon as the Township becomes
aware of any fines or penalties or the possibility thereof, the Township
shall notify the UM PBA and allow the UM PBA to participate in any
defense or appeal of said fines or penalties.
J.
If a participant becomes temporarily disabled, the participant shall
receive disability pay in the same amount as police officers that
are not participating in DROP. If the disability is determined to
be no longer temporary, the Township may honorably discharge that
participant pursuant to the civil service section of the First Class
Township Code, in which case, the date of honorable discharge shall
be deemed that participant's deferred retirement date. No period
of disability shall postpone the deferred retirement date set forth
on a participant's enrollment notice.
K.
If a DROP participant dies during the DROP period and the Act 600
killed-in-service death benefit is payable, then the DROP election
shall be revoked and the DROP account shall not be payable to any
designated beneficiary of the deceased DROP participant. If death
occurs during the DROP period but the Act 600 killed-in-service death
benefit is not payable, then the DROP participant's designated
beneficiary shall be entitled to a lump sum payment of the DROP account
balance.
L.
The DROP shall be interpreted, if possible, to be consistent and not in conflict with any provision of the Constitution or statutes of the federal government or the Commonwealth of Pennsylvania. If, after DROP is instituted, the Internal Revenue Service, any agency of the Commonwealth of Pennsylvania, the Pennsylvania Commonwealth Court, and/or the Pennsylvania Supreme Court issues an official opinion, pension audit finding or pension audit observation indicating that any benefit or component of this DROP is in conflict with Pennsylvania law, the Township shall bargain with the UM PBA in accordance with Act 111, 43 P.S. § 217.1 et seq., over deletion of this benefit or component. In the event any such opinion, audit finding or observation relates specifically to the disability pension provisions under Subsection J above, the relevant provision shall be rendered void, and the Township shall immediately commence bargaining on that issue with the UM PBA. If legislation is passed in Pennsylvania establishing a DROP plan, this section shall be conformed to said legislation. The Township shall further commence bargaining with the UM PBA if necessary to resolve any logistical obstacles that may arise in connection with initially implementing the DROP accounts as described herein.
A.
The Police Pension Plan will provide for a service-related disability
pension, available to each full-time police officer who sustains a
service-related total disability. However, a service-related disability
pension will not be paid if the service-related total disability is
the result of the use of alcohol or habit-forming drugs or if the
injury is self-inflicted.
B.
There shall be no minimum period of credited service required for
a police officer to be eligible for a service-related disability pension.
C.
A police officer who is eligible for a service-related disability
pension will be granted an honorable discharge and then be paid effective
as of the first day of the month coincident with or which next follows
the grant of the honorable discharge a monthly service-related disability
pension benefit as follows:
(1)
Benefits.
(a)
With respect to a police officer whose commencement of employment
as a full-time police officer is prior to June 1, 2015, that sum of
money which shall be equal to 100% of the police officer's final
average monthly compensation, reduced or offset by any payment received
in the calendar month by reason of benefits received by the police
officer pursuant to the Social Security Disability Insurance Act,
42 U.S.C. § 423 (there will be no offset for normal social
security retirement benefits, 42 U.S.C. § 402), the Occupational
Disease Act,[1] any workers' compensation insurance benefits for
loss of wages and any disability insurance payments received under
a policy or plan of insurance purchased or paid for by the Township.
[1]
Editor's Note: See 77 P.S. § 1201 et seq.
(b)
With respect to a police officer whose commencement of employment
as a full-time police officer is on or after June 1, 2015, who suffers
a service-related total disability connected disability, the service-related
disability pension benefit shall be 50% of final average monthly compensation
with no offset for workers' compensation and no cost-of-living
adjustment (COLA) until his or her normal retirement date.
(c)
Should the police officer secure a commutation of his or her
workers' compensation wage loss benefit, then, in that event, the
amount received after deducting attorney's fees and costs paid
to secure the same shall be amortized monthly over the remaining number
of years of the affected police officer's life expectancy using
both the interest rate and the life expectancy tables set forth in
the Plan's actuarial report for the calendar year in which the
commutation is received. The monthly benefit payable from the Plan
shall be reduced by such amortized monthly value of the commutation.
At the expiration of the period fixed by the life expectancy table,
the amortized monthly value of the commutation shall end and the monthly
benefit paid to the police officer will be adjusted upwards. The offset
for the amortized monthly value of the commutation shall not apply
to the surviving spouse or dependent child benefit.
(2)
The service-related disability pension will not be offset for earnings
or compensation received from other gainful employment or by reason
of the normal social security retirement benefit.
(3)
When the disabled police officer attains the age of 65 years, the service-related disability payments shall be recomputed and adjusted to 50% of his or her final average monthly compensation, together with the (as applicable) cost-of-living adjustment increases authorized as of the February 1 that is coincident with or next follows the close of the "wait period," as defined in Subsection C(4) below, from and after the date of his or her honorable discharge up to the maximum monthly COLA-adjusted pension described in § 45-15D.
(4)
The wait period shall close as of the first February 1 which occurs
in the fourth year from the calendar year in which the police officer
is granted an honorable discharge, inclusive, if prior to July 1;
and the fifth year if honorably discharged on or after July 1. For
example, if the police officer is honorably discharged on March 31,
1999, the cost-of-living adjustment herein provided would commence
on February 1, 2002 (i.e., 1999, 2000, 2001 and 2002).
D.
A service-related disability pension requires a finding of permanent
disability. The physical or psychological restrictions or limitations
giving rise to the police officer's honorable discharge as above
is distinguished from the Heart and Lung Act benefits arising by reason
of a disability resulting from a "service-related" injury, accident,
illness, impairment, occupational disease or condition that is temporary
in nature, although the temporary disability may precede total disability.
E.
Determination and eligibility.
(1)
A determination made by the Board of Commissioners that a police
officer is not "totally disabled," as that term is herein defined,
may be reviewed and reconsidered by the Board of Commissioners at
any time with the understanding that a previous rejection of eligibility
for a service-related disability pension will not be evidence or collateral
estoppel in a subsequent preceding involving that police officer.
(2)
A police officer who has been determined to be eligible for a service-related
disability pension may be required by the Township to undergo reasonable
periodic medical evaluations and medical testing. The Board of Commissioners
may reevaluate the disabled police officer's continued eligibility
with competent medical testimony based upon a reasonable degree of
medical certainty, using a clear and convincing evidence standard.
A police officer who is adjudged to be able to perform all of the
normal and usual functions and duties of a police officer will then
be eligible for immediate reinstatement to active service.
A.
Subject to Subsection F below, the surviving spouse of a police officer who is killed in the line of duty will be paid a pension benefit in a monthly amount equal to 100% of his or her monthly salary at the time of death.
B.
Should the surviving spouse die, or should the police officer be killed in the line of duty without having a surviving spouse, then, in that event, the surviving child or children shall receive a monthly pension benefit equal to a pro rata portion of the full benefit that would have been payable under Subsection A above to the surviving spouse of the deceased police officer. Children are eligible for survivor benefits until attaining the maximum age set forth in Act 30 of 2002. As each child of the deceased police officer ceases to be eligible for a share of the benefit described in Subsection A above by reason of attaining the age of 18 years or 23 years of attending college, the share of such child shall be allocated to the remaining children of the deceased police officer who do qualify hereunder.
C.
The pension benefit payable to the surviving spouse or eligible children
of the deceased police officer will not be offset by any Social Security
retirement or disability benefits or by any workers' compensation
benefits payable by reason of the death of the police officer.
D.
The benefits payable to the surviving spouse hereunder will terminate
upon the death of the surviving spouse.
E.
The first monthly pension benefit shall be paid to the eligible beneficiary
on the first day of the month which follows:
F.
Pursuant to the 2011 Act 111 Interest Arbitration Award dated November
8, 2011, the benefit described in this section is eliminated effective
November 8, 2011, with respect to a police officer killed in the line
of duty on or after that date.
A.
Each police officer may retire from the Township's Department of Police upon his or her completion of 12 years of credited service as a full-time police officer. A monthly pro rata pension benefit, beginning as of the first day of the month on or next following the police officer's attainment of normal retirement age, will be payable to a police officer who renders the minimum number of years of credited service required to vest his or her pension benefit. (See § 45-24.). Alternatively, such police officer may elect to receive a refund of all monies paid to him or her into the Plan, together with interest on such monies, as provided in § 45-20 hereof.
B.
Pro rata benefits for pre-2003 retirees.
(1)
For a police officer whose commencement of employment as a full-time
police officer was before July 1, 2003, the basic monthly pro rata
pension benefit will be equal to 50% of the police officer's
final average monthly compensation multiplied by a fraction, the numerator
of which is the total number of years of credited service rendered
by the police officer with the Township and the denominator of which
is 25 years, the minimum number of years of credited service for a
normal retirement pension benefit. For example, a police officer who
renders 20 years of credited service will be eligible for a pro rata
pension benefit calculated as follows:
|
20 years of credited service (numerator)
| |
|
divided by
| |
|
25 years, the minimum for a normal retirement pension benefit
(denominator)
| |
|
equals
| |
|
20/25 or 4/5 or 80% of the normal retirement pension benefit
|
(2)
For police officers whose commencement of employment as a full-time
police officer is on or after July 1, 2003, a police officer's
vested pro-rata pension benefit is equal to 50% of the police officer's
final average monthly compensation multiplied by a fraction, the numerator
of which is the police officer's number of years of credited
service at termination of employment and the denominator of which
is the number of years of credited service that the police officer
would have accumulated had he or she worked until both the age and
service requirements for a normal retirement pension benefit had been
satisfied.
A.
Upon the death of a police officer eligible to receive benefits under the provisions of § 45-4 or § 45-8 hereof, or upon the death of a retired police officer receiving benefits under the provisions of § 45-4, § 45-6, or § 45-8 hereof, the surviving spouse of such police officer shall be paid monthly a pension benefit as follows:
(1)
To a surviving spouse, 65% of the pension benefit which the police
officer would have been eligible to receive or was receiving as of
the police officer's death. This surviving spouse pension benefit
will continue until the death of the surviving spouse.
(2)
If there is no surviving spouse of the deceased police officer, or if the spouse shall die at any time during which benefits were being paid under this section, the death benefits under this section shall be payable to the child or children of the deceased police officer in the total amount of 65% of the pension benefit which the police officer would have been eligible to receive or was receiving as of his or her date of death, until each child of the deceased police officer ceases to be eligible for pension benefits hereunder by reason of attaining the age of 18 years or 23 years if attending college as defined in § 45-2.
B.
The first monthly pension benefit shall be paid to the surviving
spouse or to the eligible child or children, as applicable, on the
first day of the month coincident with or next following:
C.
As each child of the deceased police officer ceases to be eligible
for the death benefit described in this section, that child's
share will then become payable to the remaining eligible children
of the deceased police officer who do qualify hereunder. The monthly
pension benefit formerly paid to an eligible child of the deceased
police officer who either dies or has attained the age of 18 years
if not attending college, or 23 if attending college, will then be
allocated among the remaining surviving eligible children of the deceased
police officer; provided, however, that the aggregate monthly pension
benefit payable to the deceased police officer's eligible children
under this section shall not exceed the monthly spousal benefit that
either had been paid to the surviving spouse or would have been payable.
D.
Further, any child en ventre sa mere at the time of the police officer's
death who is thereafter born to the surviving spouse of the police
officer will be considered to be an eligible "child" hereunder from
the date of his or her birth and such after-born child will be eligible
for inclusion in the monthly survivor's benefit hereinabove provided.
A.
Subject to the limitation in Subsection B below, should a police officer die while employed by the Township by reason of a non-service-related death, and the police officer has rendered 12 years or more of credited service, the pension benefit for that police officer will be deemed vested. In that event, should the police officer leave a spouse to survive him or her, a pro rata pension benefit shall be payable to his or her surviving spouse from the pension plan, equal to 50% of the amount of the police officer's pro rata pension benefit, which shall be paid until the surviving spouse either dies or remarries, whichever event first occurs.
(1)
Should the police officer die and he or she has no surviving spouse
but has left dependent children, the dependent child or children will
be eligible to receive 50% of the police officer's pro rata pension
benefit earned by the deceased police officer, which pension benefit
will be paid as herein provided until such time as the dependent child
shall attain the age of 18 years. As each child of the deceased police
officer ceases to be eligible for the death benefit described in this
section, that child's share will then become payable to the remaining
eligible children of the deceased police officer who do qualify hereunder.
The monthly pension benefit formerly paid to an eligible child of
the deceased police officer who either dies or has attained the age
of 18 years will then be allocated among the remaining surviving eligible
children of the deceased police officer; provided, however, that the
aggregate monthly pension benefit payable to the deceased police officer's
eligible children under this section shall not exceed the monthly
spousal benefit that either had been paid to the surviving spouse
or would have been payable.
(2)
The non-service-related death pension benefit authorized in this
section will commence on the first day of the month which next follows
that month in which the police officer has died.
B.
Notwithstanding the foregoing, the surviving spouse of a police officer whose commencement of employment as a full-time police officer is on or after June 1, 2015, and whose pension benefit vests and which police officer dies before attaining his or her normal retirement age will be entitled to benefits authorized by Act 600 commencing as of the first day of the month coincident with or next following the deceased police officer's normal retirement age. Neither the surviving spouse nor the children of a police officer whose commencement of employment as a full-time police officer is on or after June 1, 2015, shall receive the benefit described in Subsection A.
A.
In the case of reemployment of a police officer as a returning veteran,
notwithstanding any provision of this Plan to the contrary, contributions,
benefits and service credit with respect to qualified military service
will be provided in accordance with Code Section 414(u). The plan
administrator shall establish such rules and procedures as it deems
necessary or desirable to implement the provisions of this section,
consistent with the Uniformed Services Employment and Reemployment
Rights Act of 1994.[1]
[1]
Editor's Note: See 38 U.S.C. § 101 et seq.
B.
Notwithstanding any provision of the Plan to the contrary, in the
case of a police officer who dies while performing qualifying military
service on or after January 1, 2007, the beneficiaries of the police
officer are entitled to any additional benefits (other than benefit
accruals relating to the period of qualifying military service) provided
under the Plan had the police officer resumed and then terminated
employment on account of death. This provision shall be applied in
accordance with guidance issued by the U.S. Treasury Department under
Code Section 401(a)(37).
C.
Provided that any police officer is not eligible to receive retirement
benefits under a retirement system administered by a governmental
unit other than the Township, as a result of any military service,
any police officer, upon completing five years of service with the
Township, may purchase a year of credited service for each year of
military service prior to employment with the Township, of credited
service, up to a maximum of five years, upon payment in accordance
with the provisions of 53 P.S. § 770 or successor law applicable
to the purchase of nonintervening military service credits.
D.
A retired police officer may be temporarily recalled into service
in case of riot, tumult, or the preservation of the public peace until
unfit for such service when he or she may be finally discharged by
reason of age or disability.
Payments made under the provisions of this article shall not
be a charge on any other fund in the treasury of the Township, or
under its control, save the Upper Moreland Municipal Police Pension
Fund herein provided for.
At least annually, any beneficiary, or, in the case of a beneficiary
who is a minor, the guardian of a beneficiary, shall be required to
provide to the Plan Administrator, on a form provided by the Plan
Administrator, a certification of continued eligibility for the payment
of benefits under the plan. Any beneficiary who shall cease to be
eligible for any benefits under the Plan shall inform the Plan Administrator
of such fact and shall refund any payments received for any monthly
period after the first full month following the occurrence of the
event ending eligibility for any benefits under the Plan.
Effective with respect to any police officer with a pension
commencement date on or after January 1, 2003, no offset shall be
made to any form of a pension benefit herein provided for the amount
paid or payable by reason of social security retirement benefits,
or any successor program.
A.
Beginning with the payment in February of the fourth year (as defined in Subsection C below), following commencement of the payment of benefits, the recipient of a pension benefit hereunder with respect to a police officer whose commencement of employment as a full-time police officer was before January 1, 2012, shall have the monthly pension benefit increased by a cost-of-living adjustment (COLA) equal to the annual percentage increase in the CPI-U for the preceding year; provided, however that the maximum COLA in any single year shall not exceed 6% and further provided that maximum COLA adjustments shall be as described in Subsection D below.
B.
Any decrease in the CPI-U shall not result in a decrease in pension
benefits in effect prior to such decrease.
C.
As used in this section, the fourth year following the commencement
of benefits shall mean:
(1)
In the case of a police officer retiring or a beneficiary becoming
entitled to the payment of benefits between January 1 and June 30
of any year, February in the fourth calendar year following such event;
and
(2)
In the case of a police officer retiring or a beneficiary becoming
entitled to the payment of benefits between July 1 and December 31
of any year, February in the fifth calendar year following such event.
D.
Subject to the following sentence, the maximum COLA adjustment to
each monthly pension benefit shall occur when the monthly pension
is equal to 75% of the "final average monthly compensation" that was
used in computing the police officer's basic monthly retirement
benefit [exclusive of any service increment]. In the event the applicable
pension benefit is less than 45% of the police officer's "final
average monthly compensation", the maximum increase in the monthly
pension benefit by reason of the cumulative COLA will be 30% of the
"final average monthly compensation" that was used in order to calculate
the police officer's basic monthly pension amount.
E.
The trustees of the fund shall not be required to pay any COLA which
would impair the actuarial soundness of the fund, and such COLA shall
apply prospectively only. No retroactive payments shall be made.
Police officers who have rendered more than 25 years of credited
service shall receive a length of service increment (the "service
increment") of $50 per month for each year of credited service in
excess of 25 years, up to a maximum service increment of $100 per
month.
The Township may employ an actuary at a rate of compensation
to be determined from time to time by the Board of Commissioners.
In addition to such other duties as the actuary may be requested to
perform, the actuary shall determine the amount which shall be contributed
annually to the fund for the service of police officers subsequent
to the establishment of the Plan.
A.
Police officers shall pay into the trust fund an amount equal to
5% of their compensation. The remainder of the needed annual contributions,
as determined by the actuary, shall become the obligation of the Township
and shall be paid by it to the fund by annual appropriations.
B.
In the event that an actuarial study shows that the condition of the fund is such that payments into the fund by police officers may be reduced below the amount required by Subsection A hereof, or eliminated and that, if such payments are reduced or eliminated, contributions by the Township will not be required to keep the fund actuarially sound, the Board of Commissioners, on an annual basis, by ordinance or resolution, may reduce or eliminate payments into the fund by police officers.
C.
The Township agrees that it will equitably allocate the funds received
from the commonwealth representing what are known as "Foreign Casualty
Insurance Premium Tax funds," under and pursuant to the Municipal
Pension Plan Funding Standards and Recovery Act, Act 205 of December
18, 1984, P.L. 1005, § 101 et seq., as amended, 53 P.S.
§ 895.102 et seq., so as to have all funds received by the
Township, and allocated to it pursuant to credits allowed for its
police officers first deposited to the Police Pension Plan so as to
maintain the actuarial soundness of the Plan for each calendar year.
D.
Effective with respect to contributions required to be made by police
officers on and after January 1, 2016, to fund their benefits under
the Plan, such contributions shall be deemed picked up and contributed
to the Plan by the Township in order to be treated as employer contributions
for the sole purpose of determining tax treatment under Section 414(h)(2)
of the Code. The amount of such contributions shall reduce the cash
compensation payable to each police officer, and no police officer
shall be permitted to choose between having such contributions made
on his or her behalf by the Township or receiving such amounts directly
as additional cash compensation.
A.
Payments by the State Treasurer to the Township Treasurer from the
monies received from taxes paid upon premiums by foreign casualty
insurance companies for purposes of pension retirement or disability
benefits for policemen shall be used as follows:
(1)
To reduce the unfunded liability or after such liability has been
funded;
(2)
To apply against the annual obligation of the Township for future
service cost to or to the extent that the payment may be in excess
of such obligation;
(3)
To reduce the contributions of police officers;
(4)
Any other monies paid into the fund shall be applied equally to reduce
the contributions of police officers and Township portions of the
future service cost.
A.
Any police officer who, for any reason, shall discontinue employment
with the Township and who, for any reason, shall be ineligible to
receive a pension hereunder, after having contributed to the Police
Pension Fund under this article, shall be entitled, immediately upon
discontinuance of employment as a police officer to a refund of all
such contributions paid by into the said fund, together with interest
of 5.5% on such contributions, compounded annually from the date of
the police officer's termination of employment as a police officer.
Such interest shall be calculated with regard to the police officer's
contribution in such a manner so as to disregard fractional pension
plan years during which the police officer's contributions may
have been held in the Plan.
B.
If the discontinuance of service is due to death, and there is any
excess of contributions made by the deceased police officer over any
death benefits that had been paid to any surviving spouse or children
of the police officer, such excess contributions shall be refunded,
together with interest of 5.5% on such excess contributions compounded
annually from the plan year of the police officer's death, to
a person designated, in a writing, on file with the plan administrator
as the beneficiary, or in the absence of such designated beneficiary
to the estate of the police officer.
C.
The refund of contributions paid into the said fund under this section
shall not be subject to attachment or other legal process and shall
be payable only to the police officer, a duly designated beneficiary,
or, in the absence of such designated beneficiary, the estate of such
police officer and shall not be subject to transfer or assignment.
The pension benefits herein provided shall not be subject to
attachment or other legal process and shall be payable only to an
eligible beneficiary and shall not be subject to transfer or assignment.
In the event a police officer or eligible participant qualifies
for more than one form of pension benefit under this article, he or
she will be entitled to elect and be paid the form of pension benefit
that would be payable to him or her, provided that only one form of
pension benefit shall be paid to any beneficiary.
The expenses of administration and management of the fund, including
the compensation of the actuary and the trustees of the fund, may
be paid by the trustees from the fund and to the extent not so payable
shall be paid by the Township of Upper Moreland.
A.
Except as is herein provided in Subsection B below, should a police officer terminate his or her employment with the Township, or otherwise ceases to be a police officer of the Township as defined herein, whether by reason of his or her transfer to another employment position not as a police officer, or to another employer or law enforcement agency, or by resignation, discharge, firing or for any reason whatsoever prior to vesting in the Police Pension Plan, as is hereinafter provided, and unless an authorized leave of absence is duly approved by the Board of Commissioners, that police officer will have caused a break in service and will be entitled to a refund of all contributions made by him or her, then on deposit in the Police Pension Plan, as provided in § 45-20.
B.
A police officer who has been employed by the Township and has completed 12 years of credited service as a full-time police officer with the Township shall be vested in his or her police pension plan benefit. Should a police officer terminate his or her employment with the Township, or should he or she cease to be a police officer of the Township as defined herein, whether by reason of his or her transfer to another employment position other than as a police officer, or to any other employer or law enforcement agency, or by reason of his or her voluntary or involuntary resignation, termination, discharge, removal, furlough or for any reason whatsoever following the completion of 12 years of credited service and after having achieved vesting hereunder but before attaining normal retirement age and before completing the years of credited service necessary for a normal retirement pension benefit as provided in § 45-4, or otherwise before being eligible for a service-related disability pension benefit as provided in § 45-6, that police officer may not withdraw his or her Police Pension Plan contributions or the interest accrued thereon without the express written consent of the Board of Commissioners.
C.
However, should the police officer be subject to the forfeiture of
benefits as is set forth in the Public Employee Pension Forfeiture
Act, 43 Pa.C.S.A. § 1311, notwithstanding vesting and the
credited service rendered, the police officer will forfeit all Police
Pension Plan benefits and will be repaid his or her Police Pension
Plan contributions, without interest, and he or she will not be eligible
for any pension benefit as it will be deemed as though he or she had
not vested hereunder.
D.
The police officer who completes 12 years of credited service as a full-time police officer with the Township and who does not withdraw his or her Police Pension Plan contributions will be vested hereunder, and unless he or she is eligible for a normal retirement benefit, or service-related disability pension benefit, that police officer will be eligible to receive the pro rata pension benefit provided in § 45-8 upon his or her attaining the normal retirement age or upon his or her separation from service and retirement from active service with the Department of Police, whichever event last occurs.
The Plan is intended to be tax-qualified under the applicable
provisions of Section 401(a) of the Internal Revenue Code, as amended,
and shall be construed and applied in a manner consistent with such
intent; accordingly, notwithstanding any contrary provisions of this
article, the following provisions shall apply to the Plan.
A.
Distribution of benefits.
(1)
A plan member's benefits must commence to be paid not later
than April 1st of the calendar year following the later of: the calendar
year in which the Plan member attains age 70 1/2 or the calendar
year in which the Plan member retires. Such distributions must equal
to or exceed the required minimum distribution, and otherwise be made
in a manner consistent with the requirements of Code Section 401(a)(9)
and the regulations thereunder.
(2)
Required distributions must be made over the lifetime or the life
expectancy of the Plan member or the joint lifetimes or joint life
expectancy of the Plan member and the Plan member's designated
beneficiary.
(3)
All benefit distributions to a Plan member or the Plan member's
beneficiary shall be in accordance with the incidental death benefit
requirements of Code Section 401(a)(9)(G) and the related regulations.
B.
Compensation and benefit limitations. The limitations and other requirements
outlined below are intended to comply with Code Section 415 and the
regulations thereunder, the terms of which are specifically incorporated
herein by reference. The maximum compensation limit and benefits limitations
under the Code are as follows:
(1)
The compensation used in calculating a Plan member's benefit
cannot exceed the limits of Code Section 401(a)(17), as adjusted for
cost-of-living increases, per Code Section 415(d).
(2)
General rule. In no event shall the annual retirement benefit payable
to a Plan member under this Plan, together with retirement benefits
provided under all qualified benefit plans maintained or previously
maintained by the Township, for any limitation year, which shall be
the calendar year, exceed the maximum benefit permitted, as adjusted
annually per Code Section 415(d), under Code Section 415(b) (including
any applicable grandfathering rules). This Plan section shall be applied
in accordance with Code Section 415 and the regulations thereunder.
(3)
Special limitation for qualified police or firefighters. For any
Plan member who is a "qualified participant," as defined under Code
Section 415(b)(2)(H), the limitation under Code Section 415(b)(2)(C)
shall not be reduced to an amount less than $50,000 [as adjusted per
Code Section 415(d)] as required by Code Section 415(b)(2)(G).
(4)
Order of defined benefit plan reductions. If the Plan member participates
or participated in any other defined benefit plan of the Township,
and the Plan member's aggregate annual retirement benefit under
this Plan and such other Plan exceeds the limits permitted under Code
Section 415, such Plan member's benefit shall be first reduced
under this Plan.
C.
Vesting.
(1)
Notwithstanding the Plan's vesting schedule, upon any amendment
or restatement of the Plan, a Plan member's vested accrued benefit
shall not be less than the vested accrued benefit immediately preceding
such amendment or restatement.
(2)
Notwithstanding the Plan's vesting schedule a Plan member shall
be 100% vested when the Plan member completes the age and service
requirements for normal retirement at his or her normal retirement
date under the Plan.
(3)
Notwithstanding the Plan's vesting schedule, a Plan member shall
be 100% vested in his or her accrued benefit (to the extent funded)
as of the date of partial or complete Plan termination.
D.
Qualified domestic relations order. Notwithstanding the provisions of § 45-21, the Plan shall recognize any domestic relations order which is determined by the Township to be a qualified domestic relations order (QDRO) within the meaning of Code Section 414(p) with respect to a Plan benefit due to a living plan member. The Plan shall not recognize as a QDRO any domestic relations order that assigns any portion of a survivor benefit with respect to a deceased Plan member. To the extent applicable in accordance with this subsection, any Plan member's benefits, rights or elections shall be subject to any rights afforded to the alternate payee by a QDRO. Further, a distribution to an alternate payee is permitted if authorized by a QDRO, even if the Plan member involved has not separated from service and has not reached the earliest retirement age under the Plan.
E.
Alienation. Except for a QDRO as permitted in Subsection D above, no Plan member or beneficiary shall have the power to subject any benefit or benefits under the Plan to any type of alienation, anticipation, assignment, charge, encumbrance, pledge, sale or transfer. Further, no benefits shall be subject to or liable for any debts, contracts, engagements, liabilities or torts. The only exceptions to this subsection are those in Subsection D above and those referenced in Code Sections 401(a)(13)(C) and (D).
F.
Plan member or beneficiary who cannot be located. If any portion
of a Plan benefit is payable to a Plan member or beneficiary at the
later of the Plan member's 62nd birthday or normal retirement
age and such benefit remains unpaid solely by reason that the Township,
after sending a registered letter, return receipt requested, to the
last known address of such Plan member and after the exercise of due
diligence, cannot locate the Plan member or beneficiary, the actuarial
value of the benefit shall be forfeited and applied towards reducing
Plan costs. If, subsequent to the forfeiture, such Plan member or
beneficiary is located, the actuarial value of the forfeiture at the
time it was forfeited (no adjustments for gains or losses) shall be
restored.
G.
Forfeitures. Forfeitures shall not be applied to increase the benefits
any Plan member would otherwise receive under the Plan.
H.
Actuarial assumptions. As required by Code Section 401(a)(25), the
actuarial assumptions used to calculate benefits under the Plan shall
not be subject to the Township's discretion.
I.
Optional direct transfer of eligible rollover distributions.
(1)
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 paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
(2)
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
For the purposes of this section, the following definitions shall
apply:
A payment by the Plan to the eligible retirement plan specified
by the distributee.
Includes a police officer or former police officer. In addition,
the police officer's or former police officer's surviving
spouse or nonspouse beneficiary are distributees with regard to the
interest of the spouse, former spouse or nonspouse beneficiary.
An individual retirement account described in Code Section
408(a), an individual retirement annuity described in Code Section
408(b), an annuity plan described in Code Section 403(a), an annuity
contract described in Code Section 403(b), a qualified retirement
plan described in Code Section 401(a), or an eligible plan under Code
Section 457(b) 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 provided that such plan or annuity accepts
the distributee's eligible rollover distribution. Effective January
1, 2010, an eligible retirement plan shall also include a Roth individual
retirement plan described in Code Section 408A(b). Notwithstanding
the foregoing, in the case of an eligible rollover distribution to
a distributee who is a nonpouse beneficiary, an eligible retirement
plan is limited to an individual retirement account, an individual
retirement annuity, or a Roth individual retirement account that is
established on behalf of such beneficiary and is treated as an inherited
IRA pursuant to Code Section 402(c)(11).
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 any specified period of 10 years or more; and any distribution to the extent that such distribution is required under § 45-25A hereof 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), provided that a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be paid only to an individual retirement account described in Code Section 408(a) or an individual retirement annuity described in Code Section 408(b), or to a qualified defined contribution plan described in Code Section 401(a) or Code Section 403(a) 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.
Any dispute or controversy by a police officer concerning his
or her pension benefit, any claim or eligibility for benefits or concerning
the police officer's pension contribution rate will be submitted
for resolution under and pursuant to the grievance and arbitration
procedure. However, it is agreed that the time constraints for the
filing and processing of any grievance set forth in the grievance
and arbitration procedure are waived.
Except to the extent superseded by federal law, all questions
pertaining to the validity, construction, and operation of the Plan
shall be determined in accordance with the laws of the Commonwealth
of Pennsylvania.
If the Plan Administrator deems any beneficiary who is entitled
to receive payments hereunder incapable of receiving or disbursing
the same by reason of age, illness, infirmity, or incapacity of any
kind, the Plan Administrator may direct the trustees to apply such
payments directly for the comfort, support, and maintenance of such
beneficiary, or to pay the same to any responsible person caring for
the beneficiary who is determined by the administrator to be qualified
to receive and disburse such payments for the beneficiary's benefit,
and the receipt of such person shall be a complete acquittance for
the payment of the benefit. Payments pursuant to this section shall
be complete discharge to the extent thereof of any and all liability
of the Township, the Plan Administrator, the trustees, and the fund.
The Plan Administrator and the trustees shall have the right
to withhold any and all state, local, and federal taxes which may
be withheld in accordance with applicable law.
