[Adopted 11-24-1958 by Res. No. 1958-19 (Part 2, Ch. 5, Art.
A, of the 1976 Code of Ordinances)]
[Amended 4-23-1984 by Res. No. 1984-19]
A municipal police pension fund is established for Manheim Township
under the Act of 1956, P.L. 1804, No. 600, as amended,[1] to be maintained by:
A.
Annual appropriations by the Township;
B.
Payments made by the State Treasurer to the Township Treasurer from
moneys received from taxes paid upon premiums by foreign casualty
insurance companies for the purpose of pension retirement for policemen;
C.
Gifts, grants, devises or bequests granted to this police pension
fund; and
D.
Receipts from investments of the fund.
[1]
Editor's Note: See 53 P.S. § 767 et seq.
This article shall be known and may be cited as the "Manheim
Township Police Pension Fund Resolution of 1958."
[Amended 4-23-1984 by Res. No. 1984-19]
The municipal police pension fund created by this article, as
amended, shall be managed and administered on behalf of the Township
by three individual trustees, who shall be the President of the Board
of Commissioners, the Commissioner of Public Safety and the Secretary
of the Board of Commissioners; whoever may fill these positions in
the future shall automatically become trustees of the fund. The three
trustees may, with the approval of the Board of Commissioners, appoint
a corporate fiduciary to act with them as co-trustee or may elect
a Secretary who may be but need not be a trustee. The trustees shall
administer the pension fund in accordance with the provisions of a
trust agreement to be executed by the trustees and the Board, which
trust agreement may be amended from time to time by the Board. The
trustees shall each year submit to the Board a report giving a brief
account of the operations of the pension fund during the previous
year. The trustees shall not incur any liability for any action or
failure to act, excepting only liability for gross negligence or wilful
misconduct. The trustees shall not be liable to any member or any
other person for payments of any benefits under the pension fund,
except to the extent expressly provided for and only out of the pension
fund. The trustees may, with the approval of the Board, enter into
agreements or contracts with an insurance company to provide the pensions
as herein provided or may make such pensions available through any
other means as they deem advisable.
All full-time regular salaried officers of the police force
of the Township as of the effective date of the pension fund shall
become and shall be members of the pension fund. New members of the
police force after the effective date of the pension fund shall become
members of the pension fund after serving a six-month probationary
period and receiving their appointment as full-time salaried members
of the police force of Manheim Township.
The benefits of this police pension fund shall be payable to
regular salaried members of the police force of the Township who have
served in this Township for an aggregate total of at least 25 years,
have attained the age of at least 55 years, and shall be members of
the police force and the police pension fund on attaining the retirement
age. Upon retirement from active duty, such members shall be subject
to service, from time to time, as a police reserve, in cases of riot,
tumult or preservation of the public peace, until unfitted for such
service, when they may be finally discharged by reason of age or disability.
A member who will be eligible to retire in the next succeeding year
may make an application to the Board of Commissioners, on or before
October 1 of the current year, for an extension of one year. If the
Board approves, a member may be continued as an active member of the
police force for one year.
Service credit of members of the fund shall include absences
because of illness or disability, a leave of absence from duty not
exceeding six months, properly granted by the Board, unless such a
period shall be extended by a majority vote of the Board, and compulsory
service in the Armed Forces of the United States in time of war, armed
conflict or national emergency, so proclaimed by the President of
the United States, provided the officer returns to duty within six
months of his eligibility for discharge or release from such service,
and he shall not lose any rights to pension or benefits hereunder,
provided that, while absent from duty because of disability, sickness
or leave of absence, he regularly makes a contribution to the fund
in the amount that would be deducted from his pay if he were on active
duty; provided further that the leave of absence shall not be granted
or used for the purpose of obtaining or engaging in other employment,
in which event the leave, if already granted, shall be canceled; provided
further that such leave of absence shall not affect any law, ordinance
or act of the commonwealth providing for sick leave or vacation. During
the period of compulsory service by a member in the Armed Forces of
the United States, the Township shall continue the contributions of
such member to the fund for his benefit, as though he were continuing
in the service of the Township, which payments by the Township shall
terminate on the date such member shall be eligible for discharge
or release from the service.
[Amended 4-23-1984 by Res. No. 1984-19]
The basis for determining any pension payable under this article
and the insurance contract herein provided for, following the retirement
of any member of the police force of this Township meeting the service
and age qualifications and other provisions herein specified, shall
be as follows: Monthly pension or retirement benefits shall be 1/2
the monthly average salary of such member during the last 36 months
of employment; such pension or retirement benefits for any month shall
be computed as the sum of:
A.
Any pension benefits from pension plans heretofore established by
the private organization or association for the members of the police
force;
B.
Primary benefits under the federal social security laws for which
the officer may be eligible because of age; and
C.
Benefits from the police pension fund or the insurance or annuity
contract provided for pursuant to this article to the extent necessary
to bring the total benefits in any month to 1/2 the aforesaid monthly
average salary.
At the time a police officer becomes a member of the fund, the trustee shall apply for a contract on his life providing for not less than a ten-thousand-dollar death benefit to age 60, at which time the life insurance feature shall cease and the policy shall be converted into an annuity and the payments made therefrom to be considered as a portion of the benefits received under § 109-7C above. If a member who is eligible hereunder for a contract submits evidence of his insurability at standard rates satisfactory to the insurer, the contract to be purchased on his life shall, subject to its terms and provisions, provide a death benefit prior to normal retirement date of an amount not less than $10,000. If the member is insurable only with an additional premium to cover extra mortality, the policy shall be issued for such sum payable on death as can be purchased at the normal premium rate for the life policy, provided the member may elect to have the policy issued in the full amount by paying the additional premium. If a member is totally uninsurable, no life insurance need be carried for his benefit. The trustees are hereby empowered and directed to purchase a policy or policies of retirement income annuity insurance, in such an amount or amounts as will provide for the payment of retirement pension or disability allowances provided by this article or required by law and are not limited to the above-stated amount of $10,000. Policies of insurance presently in force under any existing police pension fund may be transferred to this fund, at the sole discretion of the trustees, and if transferred, the trustees are hereby authorized to retain all policies presently in force and to make application for the other necessary annuity contracts and/or contracts of insurance without the necessity of any further resolution or ordinance of the Township. The normal premiums on the policies of insurance shall be paid out of the pension fund.
At the time of application for an insurance contract, and successively
thereafter, the member shall have the right to select the death beneficiary
thereunder, which must be persons related to such member by blood
or marriage. If no death beneficiary is selected by a member, any
death benefit shall be payable in one sum to his executor or administrator.
Each contract issued shall provide that the Township shall be the
owner thereof, with the power to exercise all rights, privileges,
options and elections granted by or permitted by such contract. Each
such contract shall provide for payment of monthly pension benefits
to the member for life, or a ten-year certain period, beginning at
normal retirement date, at which date the death benefits shall cease.
No member shall have any legal right, title or interest in any contract
of insurance issued on his life, and any such member's interests,
beneficial or otherwise, shall be that provided in accordance with
this article and under the contract on such member's life. No death
beneficiary under any contract issued shall have any greater rights
than as provided by the contract. A member shall not be permitted
to anticipate, encumber, alienate or assign any of his rights, claims
or interests in such contract or any part thereof. Neither the contract,
nor any part thereof, nor any payments, benefits, or rights arising
therefrom, shall be in any way subject to the member's debts, contracts
or engagements, nor to any judicial processes to levy upon or attach
the same for payment thereof.
[Amended 4-23-1984 by Res. No. 1984-19]
Should a member be discharged or voluntarily withdraw from service
as a member of the police force of the Township, or otherwise cease
to be a member of the fund, he shall be paid from the fund the full
amount of the deductions from his pay, plus interest as required by
law, and the Township shall have the right and privilege of canceling
the policy of life insurance carried for the benefit of such member,
and the proceeds of which shall be paid into and become a part of
the fund, provided that such member shall have the rights and privilege
of electing to retain said insurance policy by paying the cash surrender
value thereof into the fund, and provided further that any member
of the police force of the Township who, before completing superannuation
retirement age and service requirements but after having completed
12 years of total service, ceases to be employed as a full-time police
officer by the Township shall be entitled to vest his retirement benefits
as provided in the Act of 1979, P.L. 475, No. 99, Section 1, and any
amendments thereto.[1]
[1]
Editor's Note: See 53 P.S. § 771.
Unless otherwise provided for, members of the police force shall
pay into the fund monthly an amount determined annually by the trustees,
equal to not less than 5% nor more than 8% of monthly compensation.
Where positions covered by the fund are included in an agreement under
the Federal Social Security Act, members shall pay into the fund,
monthly, an amount equal to not less than 2% of that portion of monthly
compensation on which social security allowances are payable and 5%
of any monthly compensation in excess of that on which social security
allowances are payable. The Township Manager-Secretary is authorized
to establish a system of payroll deductions necessary to provide for
the contribution to be made hereunder and necessary for the administration
of the fund. Unless otherwise provided for, the remainder of the needed
annual contribution, as determined by the actuary, shall be paid by
the Township, contributing by annual appropriations.
The Township may, in its discretion, designate an actuary and/or may designate an actuary or actuaries of the Massachusetts Mutual Life Insurance Company, or other insurance company, in that capacity. Such actuary or actuaries shall determine the present value of the liability on account of pensions payable under § 109-7 to police officers for service prior to the effective date of this article. From the amount of this present value shall be deducted the value of assets transferred to the pension fund from any existing fund or contract, and the balance shall be known as the unfunded liability of the pension fund as of the effective date of this article. The unfunded liability, unless the assets of any existing fund are turned over to this fund, shall be paid entirely by the Township, provided that it may be funded over a period not to exceed 25 years. The actuary shall also determine the amount which shall be contributed annually into the pension fund for the service of members, subsequent to the effective date of this pension fund (the future service cost).
The payments made by the State Treasurer to the Township Treasurer
from taxes paid upon premiums by foreign casualty insurance companies
for pensions, retirement or disability benefits for policemen shall
be used as follows:
The pension fund shall be authorized to take by gift, grant,
devise or bequest any money or property, real, personal or mixed,
in trust, for the benefit of the pension fund, and the care, management,
investment and disposal of such trust funds or property shall be vested
in the trustees of the pension fund, if the provisions as stipulated
by the donor are not inconsistent with the provisions of Act No. 600,
its supplements and amendments,[1] the pension fund or the resolution creating this police
pension fund. If a donor of funds or property restricts their use
in any manner inconsistent with such provisions, then such fund shall
not be accepted in the pension fund, but shall be set up in a separate
fund. Unless otherwise specifically provided, such monies or the values
of such funds or property, taken into the pension fund, shall be applied
against the future service cost payable by the Township.
[1]
Editor's Note: See 53 P.S. § 767 et seq.
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 police pension fund herein provided for.
No person participating in the police pension fund who becomes
entitled to receive a benefit therefrom shall be deprived of his right
to an equal and proportionate share therein upon the basis upon which
he first became entitled thereto.
Any person participating in the pension fund or who has become
a beneficiary thereof and who is dissatisfied with any ruling or decision
of the trustees in reference to the rights of such a person may, after
notice and at a time fixed by the trustees, personally appear before
the trustees for the purpose of hearing his or her complaint.
The pension payments or any other moneys herein provided for
shall not be subject to attachment, execution, levy, garnishment or
other legal process and shall be payable only to the member or his
designated beneficiary or to his estate and shall not be subject to
assignment or transfer.
The expense of management and administration of the pension
fund, including the compensation of the trustees, if any, of the actuary
and the custodian of the fund, if any, exclusive of the payments of
retirement allowances, shall be paid by the Township by appropriations
made by the Commissioners.
Nothing herein contained shall prevent the Commissioners, in
their discretion, to forego the purchase of annuity contracts, in
whole or in part, for or on behalf of any one or more police officers
and make any required pension payments from other Township funds.
The Township reserves the right, through action of its Board
of Commissioners, in accordance with the law, to amend this article
and change the pension fund without the consent of any member or death
beneficiary.
[Added 5-9-2022 by Ord. No. 2022-08]
A.
Title. This section shall be known as the "Manheim Township Police
Act 44 Retirement Program."
B.
ACT 44 PROGRAM
ACT 44 PROGRAM ACCOUNT
DROP
FUND or PLAN
PARTICIPANT
POLICE OFFICERS
TOWNSHIP
Definitions. When used in this section, the below words shall have
the meanings indicated.
The Act 44 Deferred Retirement Option Program referred to
in the award.
Separate ledger account created to accept Act 44 Program
participants' monthly pension benefit while an Act 44 Program
participant, as well as any interest thereon.
Deferred Retirement Option Program.
The Police Pension Plan.
A police officer who meets the eligibility for and has executed
the proper documents for participation in the Act 44 Program and has
had such application approved by the Township.
Police officers of the Manheim Township Department.
Manheim Township, Lancaster County, Pennsylvania.
C.
Eligibility. Eligibility for the Act 44 Program shall be determined
as follows: Police officers who have not retired prior to the effective
date of the Act 44 Program may enter into the Act 44 Program on the
first day of any month following completion of both 25 years of credited
service and attaining the age of 54 (i.e., superannuation date).
D.
Written election. Eligible officers who wish to be participants in
the Act 44 Program must signify that intention, in writing, as follows:
(1)
A police officer electing to participate in the Act 44 Program
must complete and execute an Act 44 Program participation election
form prepared by the Township, which shall evidence the member's
election to participate in the Act 44 Program. The form must be signed
by the police officer and submitted to the Township Secretary. The
Act 44 Program participation election form shall include an irrevocable
notice to the Township, by the police officer member, that the police
officer shall resign from employment with the Police Department effective
on a specific date ("resignation date") that is no later than 36 months
from the effective date of the Act 44 Program election form. A police
officer shall cease to work as and may no longer be employed as a
police officer on the officer's resignation date unless the Township
properly terminates or honorably discharges the police officer prior
to the resignation date. A participant may resign from employment
while in Act 44 Program status, which shall terminate his/her participation
in the Act 44 Program.
(2)
In addition to the above information, the Act 44 Program participation
election form shall also advise the employee of the following: i)
an explanation of the participant's rights and obligations while
in the Act 44 Program; ii) that, as a condition of Act 44 Program
participation, the participant forgoes active participation in the
Police Pension Plan and forgoes any recalculation of pension benefits
to include salary increases occurring after Act 44 Program participation
commences; and iii) that the Act 44 Program participant's service
while in the Act 44 Program will not count as pension service, nor
will it entitle a participant to any service increment benefits to
which the participant was not entitled prior to commencing Act 44
Program participation. An Act 44 Program participant must also complete
any and all retirement documents required by the Police Pension Plan
Administrator, and such documents must be filed and presented to the
Township for approval of retirement and payment of pension. Once an
Act 44 Program participation election form has been approved by the
Township, it is irrevocable. Likewise, once an Act 44 Program participant
enters the Act 44 Program, the participant may not subsequently leave
and then reenter the Act 44 Program, even if the police officer separates
from employment and subsequently begins employment with the Township
again.
E.
Benefit calculation. For all pension plan purposes, continuous service
of a police officer participating in the Act 44 Program shall remain
as it existed on the effective date of commencement of participation
in the Act 44 Program. Service thereafter shall not be recognized
or used for the calculation or determination of any benefits payable
by the Township Police Pension Plan. The average monthly compensation
of the police officer for pension calculation purposes shall remain
as it existed on the effective date of commencement of participation
in the Act 44 Program. Earnings or increases in earnings thereafter
shall not be recognized or used for the calculation or determination
of any benefits payable by the Pension Plan. The monthly pension benefit
payable to the members shall increase only as a result of cost-of-living
adjustments required by the Police Pension Plan.
F.
Accumulation of the Act 44 Program account. The monthly retirement
benefits that would have been payable had the police officer elected
to cease employment and receive a normal retirement benefit shall,
upon the police officer commencing participation in the Act 44 Program,
accumulate to the benefit of that police officer and be accounted
for on that police officer's Act 44 Program account. Participants
shall not have the option of self-directed investment of their individual
Act 44 Program account while in the Act 44 Program. Instead, the annual
interest credit on the DROP account shall equal the return for that
calendar year on the pension fund. However, the return for any calendar
year shall be no less than 0% and no more than 4.5%.
G.
Accrual of non-pension benefits. After a police officer elects to
participate in the Act 44 Program, all other contractual benefits
shall continue to accrue with the exception of those provisions relating
to the Police Pension Plan.
H.
Payout. Upon separation from employment, the Act 44 Program payout
options available to the Act 44 Program participant shall be as follows:
(1)
The balance of the Act 44 Program participant's account,
less withholding taxes, if any, remitted to the Internal Revenue Service,
shall be paid to the participant or the participant's surviving
beneficiary.
(2)
The balance of the Act 44 Program participant's account
shall be paid directly to the custodian of an eligible retirement
plan as defined by Internal Revenue Code Section 402(c)(8)(b),[1] or in the case of an eligible rollover distribution to
the surviving spouse of a deceased Act 44 Program participant, an
eligible retirement plan that is an individual retirement account
or an individual retirement annuity as defined by Internal Revenue
Code Section 402(c)(9).[2]
I.
Service-connected disability during Act 44 Program. If an Act 44
Program participant becomes temporarily incapacitated due to a service-connected
injury during his participation in the Act 44 Program, that police
officer shall continue to participate in the Act 44 Program as if
fully employed. The police officer shall receive disability pay in
the same amount as disabled police officers that are not participating
in the Act 44 Program. In no event shall a police officer on temporary
disability have the ability to draw from his Act 44 Program account.
However, notwithstanding any other provision in this subsection, if
a police officer is disabled and has not returned to work as of the
date of his required resignation, then such resignation shall take
precedence over all other provisions herein and said police officer
shall be required to resign. Nothing contained in this plan shall
be construed as conferring any legal rights upon any police officer
or other person to a continuation of employment, nor shall participation
in the Act 44 Program supersede or limit in any way the right of the
Township to honorably discharge a police officer based upon an inability
to perform his or her full duties as a police officer. If an Act 44
Program participant becomes eligible for a service-connected disability
pension and employment is terminated due to an inability to continue
in service on grounds that render the police officer eligible for
a service-connected disability pension, the monthly normal retirement
benefit of the Act 44 participant shall be reclassified as being on
account of a service-connected disability. In no event shall an Act
44 Program participant's monthly retirement benefit be recalculated.
The Act 44 participant's monthly retirement benefit shall remain
50% as calculated at the time of entry into the Act 44 Program subject
to applicable cost-of-living adjustments.
J.
Death. If an Act 44 Program participant dies, the participant's
eligibility for the Act 44 Program shall terminate upon the date of
death. In such case, if the Act 44 Program account balances have not
yet been paid out, the participant's legal beneficiary shall
have the same rights and options as the participant to withdraw/roll
over the account balance.
K.
Forfeiture of benefits. Notwithstanding a police officer's status
as an Act 44 Program participant, a current or former participant
who is convicted or pleads guilty to engaging in criminal misconduct
which constitutes a "crime related to public office or public employment,"
as that phrase is defined in Pennsylvania's Pension Forfeiture
Act, 43 P.S. §§ 1311 through 1314, shall forfeit his
or her right to receive a pension, including any amounts currently
deposited in the Act 44 Program account. In such a case, the participant
shall only be entitled to receive the contributions, if any, made
by the participant to the Police Pension Fund, without interest.
L.
Cost of management for Act 44 Program. The police officers and the
Township agree that any costs or fees associated with the management
of the Act 44 Program accounts shall be paid directly by the individual
participants.
M.
Amendment. Any amendments to the Act 44 Program Ordinance shall be
consistent with the provisions covering individual retirement option
plans set forth in any applicable collective bargaining agreement
and shall be binding upon all future Act 44 Program participants and
upon all Act 44 Program participants who have balances in their individual
retirement option accounts. The Act 44 Program may only be amended
by a written instrument, not by any oral agreement or past practice.
N.
Construal of provisions. A police officer's election to participate
in the Act 44 Program shall not be construed in any way:
(1)
As a limitation on the Township's right to suspend or to
terminate a police officer for just cause or to grant the police officer
an honorable discharge based upon a physical or mental inability to
perform his or her duties.
(2)
As a change to the parties' practice of calculating pensionable
compensation, and except for the ability to establish a DROP account
and participate in the DROP Program, nothing herein is intended to
create new pension benefits of any kind which did not exist as of
date.
(3)
As a guarantee to any officer or DROP participant of a specific
term of employment. All DROP participants shall be subject to the
same terms and conditions of employment (except those relating to
benefits under the plan and retiree benefits), rules and regulations
and disciplinary procedures as other officers and members who are
not DROP participants.
(4)
Except as provided herein, all DROP participants shall be considered
to be employees of the Township and subject to the same terms and
conditions of employment contained in all Township policies, directives,
and orders as well as in the collective bargaining agreement between
the Township and the Manheim Township Police Association just as all
other police officers who are not DROP participants.
O.
Severability. The provisions of the Act 44 Program shall be severable.
If any of its provisions shall be held to be unconstitutional or illegal,
the validity of any of the remaining provisions of the Act 44 Program
shall not be affected thereby. It is hereby expressly declared as
the intent of the Township that the Act 44 Program would have been
adopted had such unconstitutional or illegal provision or provisions
not been included herein.
P.
Effective date. The effective date of the Act 44 Program shall be
February 8, 2022.
