The Commissioners of the Township of South Whitehall established
a pension plan and trust fund for its police officers by Ordinance
No. 149, enacted June 14, 1971. The plan and trust have been amended
from time to time thereafter. Effective as of January 1, 2010, the
Commissioners hereby continue said plan as the "South Whitehall Township
Police Pension Plan" and amend and restate it in its entirety. The
pension benefits of any participant who terminated his employment
with the Township prior to January 1, 2010, shall be determined solely
under the provisions of the plan in effect at the time of his termination.
When used in §§
58-28 through
58-43, with initial capital letters, the following terms shall have the meanings set forth below, unless a different meaning is plainly required by the context:
ATTENDING COLLEGE
The eligible child or children of a Participant is or are
registered at an accredited institution of higher learning and are
carrying a minimum course load of seven credit hours per semester.
COMMISSIONERS
The Board of Commissioners of the Township of South Whitehall.
COMMITTEE
The committee appointed by the Commissioners under §
58-40 to administer the Plan.
COMPENSATION
Of an employee for a given year (or other period for which
a determination is being made), the amount of Compensation actually
paid, made available, or includible in gross income for the year (or
other determination period). [In the case of a period during which
an employee is serving in the uniformed forces of the United States,
or during the term of any other approved leave of absence, the employee's
Compensation shall be computed (A) at the rate the employee would
have received but for the uniformed service or other leave of absence,
or (B) in the case that the determination of such rate is not reasonably
certain, on the basis of the employee's average rate of compensation
during the twelve-month period immediately preceding the period of
uniformed service or leave of absence (or, if shorter, the period
of employment immediately preceding such period)]. However, Compensation
shall not include any compensation in excess of the amount in effect
for such year under Section 401(a)(17) of the Internal Revenue Code
of 1986, as amended (the "Code"). If Compensation is ever required
to be determined for a period of time which contains fewer than 12
months, the amount in effect for such period under Code Section 401(a)(17)
shall be equal to the amount in effect under Code Section 401(a)(17)
for the calendar year in which the period begins, multiplied by a
fraction whose numerator is equal to the number of months in the period,
and whose denominator is 12.
DISABLED
A person shall be considered "Disabled" if he has a physical
or mental condition which renders him permanently and totally disabled
from substantially performing police work for the Employer due to
injuries incurred while performing police duties for the Employer,
and such condition is established by a licensed physician satisfactory
to the Committee.
DISQUALIFYING EVENT
With respect to any given person, each of the following shall
be a "Disqualifying Event":
A.
The voluntary or involuntary termination of the person's
employment with the Employer, unless the termination occurs due to
the conscription, enlistment or appointment of the person to service
in the Armed Forces of the United States, or because of a condition
which renders the person Disabled. However, if the Employer shall
terminate the person's employment due to insufficient work for
such person or shall indicate that the termination is temporary, such
termination shall be considered a "layoff" and not a "termination"
unless the layoff continues for a period in excess of six months.
The mere cessation of a person's status as a Qualified Employee
shall not constitute a "termination" under this subsection; only a
termination from all employment with the Employer shall be a "termination";
B.
The person's failure to return to work at the end of any
leave of absence, after ceasing to be Disabled, or upon recall following
a layoff;
C.
The lapse of the person's right under the then-effective
laws of the United States to reinstatement of employment with the
Employer following a period of service with the Armed Forces of the
United States, unless the person was reinstated before such lapse;
or the failure of the person to qualify for reinstatement rights following
a period of service with the Armed Forces of the United States.
DROP PROGRAM
The Deferred Retirement Option Program as reflected in the Articles of Agreement between Police Services of South Whitehall Township and the Board of Commissioners of South Whitehall Township dated as of December 20, 2006 (for the period January 1, 2006, through December 31, 2007), and the Arbitration Award between South Whitehall Police Bargaining Unit and South Whitehall Township (for the period May 1, 2009, through October 31, 2011), which program permits a Participant who has met the age and service requirements of §
58-32 of the Plan to become a former Participant but continue in active employment with the Employer for up to four years. From the period of time a Participant enters into the DROP Program until the person ceases active employment with the Employer, such Participant's normal retirement benefit shall be segregated within the Plan without interest for the former Participant's benefit upon ceasing active employment with the Employer. During the period of time a former Participant participates in the DROP Program, the former Participant shall not be classified as a Qualified Employee under the Plan and shall not accrue Years of Vesting Service or Years of Benefit Accrual Service under the Plan.
EMPLOYER
The Township of South Whitehall, a Pennsylvania First Class
Township and municipal corporation, located in Lehigh County, Pennsylvania.
EQUIVALENT ACTUARIAL VALUE
The equivalent value when computed on the basis of the following
actuarial assumptions:
A.
Mortality: UP-1984 Table.
FINAL AVERAGE MONTHLY COMPENSATION
Of a Participant or former Participant, the Compensation
paid to the Participant or former Participant during the thirty-six-month
period ending on his Final Police Date, divided by 36. However, if
a Participant or former Participant shall not have been a Qualified
Employee throughout the thirty-six-month period, his Final Average
Monthly Compensation shall be his Compensation during his last 36
months of employment as a Qualified Employee through the Final Police
Date (regardless of whether consecutive or not), divided by 36; and
if he shall not have been a Qualified Employee of the Employer for
a total of at least 36 months before his Final Police Date (whether
consecutive or not), his Final Average Monthly Compensation shall
be his Compensation during all periods of employment with the Employer
through the Final Police Date (regardless of whether he was employed
as a Qualified Employee or otherwise), up to a maximum of 36, divided
by the number of months of his employment with the Employer through
the Final Police Date (rounded to the nearest 0.001 of a month), up
to a maximum of 36.
FINAL POLICE DATE
A.
For purposes of computing the normal retirement benefit under §
58-32, the "Final Police Date" shall be the last date the person performed work for the Employer as a Qualified Employee on or before the date of retirement;
B.
For purposes of computing the disability benefit under §
58-33, the "Final Police Date" shall be the last date the person performed work for the Employer as a Qualified Employee on or before the date he became Disabled;
C.
For purposes of computing the vested benefit under §
58-34A, the "Final Police Date" shall be the last date the person performed work for the Employer as a Qualified Employee on or before the date of the Disqualifying Event;
D.
For purposes of computing the death benefit under §
58-35B, the "Final Police Date" shall be the last date the deceased Participant performed work for the Employer as a Qualified Employee on or before the date of his death.
PARTICIPANT
Any person who is a Participant in the Plan under the requirements of §
58-31.
PLAN
The South Whitehall Township Police Pension Plan as described
herein or as hereafter amended.
PLAN YEAR
Each one-year period beginning on January 1 and ending on
the following December 31.
QUALIFIED EMPLOYEE
A.
An employee holding a full-time position in the police department
of the Employer for a stated salary or compensation and who is included
within the bargaining unit of police officer employees represented
by the Fraternal Order of Police;
C.
Any person employed in a full-time police position that was
removed or excluded from the bargaining unit due to the managerial
nature of the position. For purposes of this definition, a "full-time"
position is one for which work is regularly scheduled for an average
of not less than 40 hours per week (including vacation days, sick
days and holidays). Notwithstanding the foregoing, a person shall
cease to be a Qualified Employee on the date he or she enters the
DROP Program.
SALARY
All remuneration paid to an employee for services rendered
during any applicable period.
TRUST
The trust described in §
58-40B to hold the funds to be used to provide benefits under the Plan, and designated the South Whitehall Township Police Pension Trust.
A Participant or former Participant shall be entitled to receive
a normal retirement benefit if he retires from all employment with
the Employer or enters the DROP Program after having attained the
age of 50 years and at a time when he has at least 25 Years of Benefit
Accrual Service. The normal retirement benefit shall be paid in the
following form: a series of equal monthly payments beginning on the
first day of the month following retirement and ending on the first
day of the month following the month during which the recipient's
death occurs, in an amount equal to 50% of his Final Average Monthly
Compensation. No actuarial adjustment shall be made to the amount
of the normal retirement benefit if the Participant defers retirement
beyond the first day he is entitled to retire with a normal retirement
benefit (except that Final Average Monthly Compensation shall still
be based on the last months of actual employment as a Qualified Employee,
not the last months before the earliest normal retirement date), and
no benefits shall be paid before actual retirement. Notwithstanding
the foregoing, effective January 1, 2006, if a Participant retires
from all employment with the Employer and is entitled receive a normal
retirement benefit, such Participant shall receive a monthly service
increment of $100 per month for each Year of Benefit Accrual Service
in excess of 25; provided, however, that the payment of such service
increments shall not exceed $400 per month after completing four Years
of Benefit Accrual Service in excess of 25.