[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.
[1]
Editor's Note: Former § 109-21.1, Act 44 Deferred
Retirement Option Program, added 5-9-2022 by Ord. No. 2022-08, was
repealed 2-27-2023 by Ord. No. 2023-05.
