[Ord. 35, 2/17/1975, § 1; as amended by Ord. 119, 4/14/1998]
1. 
There is hereby established in Ralpho Township a Police Pension Fund to be maintained by a charge against each member of the police force, by annual appropriations made by the Township, by payments made by the State Treasurer to the Township from monies received from taxes paid upon premiums by foreign casualty insurance companies for the purposes of pension retirement for policemen, and by gifts, grants, devises or bequests granted to the pension fund pursuant to § 202 hereof.
2. 
Such funds shall be under the direction of the Ralpho Township Supervisors and shall be applied for the benefit of such members of the police force as shall receive honorable discharge therefrom by reason of age and service and for death benefits as hereinafter provided.
[Ord. 35, 2/17/1975, § II]
The Police Pension Fund is hereby authorized to take, by gift, grant, devise or bequest, any money or property, real, personal or mixed, in trust, for the benefit of such funds, and the care, management, investment and disposal of such trust funds or property shall be vested in the Township Supervisors, and the said trust fund shall be governed by regulations prescribed by the Township Supervisors, subject to such directions not inconsistent therewith as the donors of such funds and property may prescribe.
[Ord. 35, 2/17/1975, § III]
1. 
In order to become entitled to benefits, a member shall have a minimum period of total police service not less than an aggregate of 25 years in Ralpho Township and shall have attained the age of 55 years, or if the fund is actuarially sound and the Supervisors, in their absolute discretion, by resolution so determine, the retirement age may be 50 years (with the stated period of minimum service) after which he may retire from active duty, and such members as are retired 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 unfit for such service, when they shall be finally discharged by reason of age or disability.
2. 
If the 25 years of service of a member is not continuous service, then such member shall receive no credit for service prior to his most recent continuous term of service, unless and until such member shall have paid back to the Pension Fund all charges refunded to him under § 204 hereof.
3. 
No person shall be regarded as a member of the police force for the purposes of this Part, nor shall he be a member of the retirement plan herein established, nor shall be have any rights under this Part, until he shall have been employed as a full-time policeman by Ralpho Township for a minimum period of six months.
[Ord. 35, 2/17/1975, § IV; as amended by Ord. 46, 3/11/1980; by Ord. 102, 2/14/1994; by Ord. 121, 8/11/1998, §§ 1-4; by Ord. 140, 9/10/2002, §§ 1-4; and by Ord. 171, 1/5/2009]
1. 
Payments made under the provisions of this Part shall not be charged on any other fund in the Treasury of Ralpho Township, or under its control, save the Police Pension Fund herein provided for.
2. 
The basis for determining any pension payable under this Part, following retirement of any member of the force meeting the service and age qualifications above provided, shall be as follows:
A. 
A member who shall complete the age and service requirements set forth in this Part shall receive a pension for life in the amount equal to 1/2 of the member's average monthly salary over the member's last 36 months of employment, or that percentage and based on that number of months as shall be prescribed by statute of the Commonwealth of Pennsylvania subsequent to the adoption of this Section.
B. 
Definitions.
ATTENDING COLLEGE
The eligible children are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester.
SALARY
The amount of compensation received by a member in each and every month, including base pay, overtime pay, longevity pay, night differential and any other increments. The term "salary" shall include regular payments made for vacation time, sick time, compensation time, personal days and bereavement leave but shall not include lump-sum payments for any unused days for any of the foregoing listed benefits.
C. 
Subject further to those limitations imposed by the statutes of the Commonwealth of Pennsylvania, no offset or reduction from the benefit here provided for shall be made for any Social Security retirement benefits, workmen's compensation or other benefits to which the member is also entitled.
D. 
The benefit herein provided shall be payable solely from the assets of the plan.
E. 
Monthly pension or retirement benefits shall be 1/2 of the monthly average base 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 the benefits from the Police Pension Fund established pursuant to this Part to the extent necessary to bring the total benefits in any month up to 1/2 of the aforesaid average salary.
3. 
Death Benefits. In the case of a death of a member, from any cause other than being killed in service, during such time as he or she shall be actively employed as a member of the Ralpho Township police force, the member's designated beneficiary, or the member's estate, as the case may be, shall receive such death benefits as are hereinafter described by policies issued pursuant to the plan.
[Amended by Ord. 176, 3/8/2011]
4. 
Disability retirement.
A. 
If a member is totally and permanently disabled in the line of duty, he may, upon application or an application of one acting in his behalf, be retired by the Board on a disability pension prior to his normal retirement date if the physician designed by the Board, after medical examination of the member made at the place of residence of the member or at a place mutually agreed upon, shall certify to the Board that the member is unable to perform the duties of a police officer and that said member ought to be retired.
B. 
The permanently injured member shall receive a pension calculated at a rate of 50% of the member's salary at the time the disability was incurred, provided that any member who receives benefits for the same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall have his or her disability benefit offset or reduced by the amount of such benefit.
5. 
In addition to other monthly pension or retirement allowances, subject to those limitations imposed by the statutes of the Commonwealth of Pennsylvania, those members who have completed in excess of 25 years of service shall receive an additional $100 per month for each completed year of service in excess of 25 years, up to a maximum of $500 per month after five completed years of service in excess of 25 years.
6. 
The surviving spouse of a member of the police force or a member who retires on pension who dies, or if no spouse survives, or if he or she survives and subsequently dies, then the child or children under the age of 18 years, or if attending college, under or attaining the age of 23 years, of a member of the police force or a member who retires on pension who dies shall, during his or her lifetime, in the case of a surviving spouse, or until reaching the age of 18 years, or if attending college, under or attaining the age of 23 years, in the case of a child or children, be entitled to receive a pension equal to 50% of the pension the member was receiving or would have been receiving had he or she been retired at the time of death.
7. 
A vested deferred monthly benefit shall be provided for any member whose termination date occurs prior to the member's normal retirement date, provided that the member shall have completed a minimum of 12 years of service with Ralpho Township and shall have notified Ralpho Township in writing of such intention to vest within 90 days of the member's date of termination. The amount of the vested deferred monthly benefit shall be determined in accordance with the provisions of Act 600, 53 P.S. § 771. Such vested deferred monthly benefit shall be paid to the member upon attainment of that participant's normal retirement age as set forth in this Part.
[Ord. 35, 2/17/1975, § V]
1. 
For the purpose of providing benefits from the Police Pension Fund, the Township shall apply and use the monies in the said fund (1) to purchase annuity policies and endowment policies, said policies respectively designating as insured each of the members of the police force and as beneficiaries such persons, if any, as the respective insured may select within the requirements of the law; and (2) to invest in lawful securities or investments as a funded reserved to meet any pension obligation not funded through annuity or endowment policies.
2. 
Any annuity or endowment policy shall be purchased only from life insurance companies duly qualified and authorized to do business within the Commonwealth of Pennsylvania. The Township shall be the owner of all such policies and shall retain all rights of ownership, including but not limited to all rights of converting and electing options thereunder.
3. 
Annuity policies and/or endowment policies aggregating a sufficient value to guarantee each member, as insured thereunder, the principal benefits as provided in §§ 203 and 204 hereof shall be purchased by the Township as aforesaid.
[Ord. 35, 2/17/1975, § VI]
The Township Secretary shall, on or about the first day of February of each year, upon the retirement of each member, and at such other times as he shall deem proper, review and examine the salary of each member, his probable ultimate Social Security benefits, and all other factors which may be in existence in presently estimating the retirement benefits ultimately payable to him; and at the same time, the Township's Secretary shall also examine and review the annuity coverage applicable to each member. The Township's Secretary shall thereupon and from time to time increase, reduce or otherwise revise the said coverage applicable to each member as and if indicated by the aforesaid review and examination.
[Ord. 35, 2/17/1975, § VII; as amended by Ord. 140, 9/10/2002, § 5]
Any member who, for any reason whatsoever, shall be ineligible to receive a pension upon the termination of his employment as a police officer of the Township after having contributed any charges to the fund established pursuant to this Part shall be entitled to payment upon the termination of such employment in the following manner:
A. 
If the termination of employment is due to death, the surviving spouse of a member of the police force who dies before his or her pension has vested, or if no spouse survives, or if he or she survives and subsequently dies, the child or children under the age of 18 years, or if attending college, under or attaining the age of 23 years, of the member of the police force shall be entitled to receive repayment of all money which the member invested in the Pension Fund, plus interest or other increases in value of the member's investment in the Pension Fund, unless the member has designated another beneficiary for this purposes. Notwithstanding the above, the face amount of any and all annuity policies providing for additional death benefits, if any, shall be paid to the member's designated beneficiary, or in the absence thereof, to his estate, in accordance with the terms of the said policy.
B. 
If the termination of employment as a Township police officer shall be due to any reason other than his death, all annuity policies purchased on his account shall be cashed by the Township. However, such former member shall, immediately upon the cashing of said policies, be paid out of the cash proceeds thereof an amount equal to the total of the charges contributed by him, with (except in the cases of members who are dishonorably discharged) simple interest of not less than 2 1/2% per annum, and the balance of the cash proceeds shall become a part of the general assets of the Pension Fund.
[Ord. 35, 2/17/1975, § VIII; as amended by Ord. 182, 12/9/2014[1]]
1. 
Members shall pay into the fund, monthly, an amount equal to not less than 5% nor more than 8% of monthly compensation. The aforesaid member contributions, together with the other sources of revenue as herein provided, shall be devoted exclusively to the purposes of this Part. All funds not required for the purchase of annuity policies shall be retained as a reasonable reserve for the purchase of additional annuity coverage and, pending expenditure for such purposes, shall be invested in such securities as the Township Supervisors shall, from time to time, direct.
2. 
Any additional funds necessary for the purchase of annuities or for the establishment and maintenance of adequate reserves for the provision of the minimum required benefits under Act 600 shall be the obligation of the Township and shall be paid by the pension fund by annual appropriations. As more fully set forth in the respective contracts and bargaining agreements, enhanced benefits which were provided by the Township, and are not covered by state aid, shall remain the sole obligation of the member.
3. 
The payments made by the State Treasurer to the Township for monies received from taxes paid upon premiums by foreign casualty insurance companies for the purchase of pension retirement benefits for policemen shall be used as follows: to apply against the annual obligation of the Township for the maintenance and operation of the pension plan hereby established or, to the extent that the payment may be in excess of such obligation, to reduce member contributions. Unless otherwise specifically provided, any other monies paid into the Police Pension Fund shall be applied equally against the member and municipal portions of the said cost of operation.
4. 
The Supervisors may, by resolution, if the police fund is actuarially sound, waive or reduce the necessity of contributions by the members of the police force and appropriations from the Township General Fund.
[1]
Editor's Note: This ordinance provided that it shall be effective 1/1/2015.
[Ord. 35, 2/17/1975, § IX]
Harold Benning shall not be a member of the Police Pension Fund created hereunder. However, he shall remain a member of the police retirement plan previously in effect in Ralpho Township and shall be entitled to the benefits thereunder in accordance with the terms and conditions of said retirement plan.
[Ord. 35, 2/17/1975, § X]
No person participating in the Police Pension Fund established pursuant to this Part who becomes entitled to receive a benefit therefrom shall be deprived of his right to an equal proportionate share therein upon the basis upon which he first became entitled thereto.
[Ord. 35, 2/17/1975, § XI]
The pension payments 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 and shall not be subject to assignment or transfer.
[Ord. 35, 2/17/1975, § XII; as amended by Ord. 88, 1/7/1991, § 1]
The expense of the administration of this fund, exclusive of the payment of retirement allowances, shall be paid from the assets of this fund.
[Ord. 35, 2/17/1975, § XIII; as amended by Ord. 121, 8/11/1998, § 5]
1. 
Any member of the police force who has been a regularly appointed employee of the Township for a period of at least six months and who thereafter shall enter into the military service of the United States shall have credited to his employment record for pension or retirement benefits all of the time spent by him in such military service if such person returns or has heretofore returned to his employment within six months after his separation from the service.
2. 
A service credit shall be provided for each year of military service or fraction thereof, not exceed five years, to any member who was employed by Ralpho Township prior to such military service. The amount due for the purchase of credit for military service, other than intervening military service, shall be computed by applying the average normal cost rate for Township police pension plans, as certified by the Public Employee Retirement Study Commission, but not to exceed 10%, to the member's average annual rate of compensation over the first three years of municipal service and multiplying the result by the number of years and fractional part of a year of creditable nonintervening military service being purchased, together with interest at the rate of 4.75% compounded annually from the date of initial entry of municipal service to the date of payment.
3. 
Any member shall be eligible to receive service credit for intervening or nonintervening military service as provided herein; provided that the member is not entitled to receive, eligible to receive now or in the future or is receiving retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other governmental agency with the exception of a member eligible to receive or receiving military retirement pay earned by a combination of active duty and nonactive duty with a reserve or National Guard component of the armed services, which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C., Chapter 67 (relating to retired pay for nonregular services).
[Ord. 35, 2/17/1975, § XIV]
The Supervisors may, by resolution, appoint an actuary to examine the fund from time to time for compiling a report to any agency of the commonwealth and shall fix his compensation to be paid from the Township General Fund.
[Added by Ord. 187, 3/8/2016]
1. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
DROP
The Deferred Retirement Option Plan created as an optional form of benefit under the Police Pension Plan.
DROP PARTICIPANT ACCOUNT
A separate ledger account created to accumulate the DROP pension benefit for a DROP participant.
PARTICIPANT
The Ralpho Township Chief of Police who is eligible for normal retirement and who is entitled by contract to participate and has elected to participate in the DROP program.
PLAN
The Ralpho Township Police Pension Plan adopted pursuant to Act 600.
2. 
DROP Provisions.
A. 
Eligibility. Effective January 1, 2016, the eligible DROP participant, who has not yet retired prior to the implementation of the DROP program, may enter into the DROP on the first day of any month following the attainment of age 50 and the completion of 25 or more years of credited service with Ralpho Township.
B. 
Written Election.
(1) 
An eligible DROP participant must complete and execute a "DROP election form" prepared by Ralpho Township and/or the pension plan administrator, which shall evidence the participant's participation in the DROP program, and document the Participant's rights and obligations under the DROP. The form must be signed by the participant and the Chairman of the Ralpho Township Board of Supervisors and submitted to Ralpho Township at least 30 days prior to the participant's effective date of retirement. The DROP election form shall include an irrevocable notice to Ralpho Township, by the participant, that the participant shall terminate from employment with the Ralpho Township Police Department effective on a specific date not less than one year nor more than five years from the effective date of the DROP election. In addition, all retirement documents required by the Ralpho Township Police Pension Plan administrator must be filed and presented to the Board of Supervisors of Ralpho Township for approval of retirement and commencement of the monthly pension benefit. Once the retirement application has been approved by the Supervisors, it shall become irrevocable.
(2) 
After a participant enters the DROP program, contributions to the pension plan by the Participant and Ralpho Township will cease, and the amount of monthly benefits will be frozen.
(3) 
Participants shall be advised to consult a tax advisor, of their choice, prior to considering the DROP program, as there may be serious tax implications and/or consequences to participating in the DROP program.
C. 
Limitation on Pension Accrual. After the effective date of the DROP election, the participant shall no longer earn or accrue additional years of continuous service for pension purposes.
D. 
Benefit Calculation. For all plan purposes, continuous service of a participant participating in the DROP program shall remain as it existed on the effective date of commencement of participation in the DROP program. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Police Pension Plan. The average monthly pay of the participant for pension calculation purposes shall remain as it existed on the effective date of commencement of participation in the DROP program. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the Plan.
E. 
Payments to DROP Participant Account.
(1) 
The monthly retirement benefits that would have been payable had the participant elected to cease employment and receive a normal retirement benefit shall, upon the participant commencing participation in the DROP program, be credited on the first day of each month into a separate ledger account established by the plan administrator to track and accumulate the participant's monthly pension benefits. This account shall be designated the "DROP participant account."
(2) 
The monthly DROP interest credited shall be dependant upon the monthly rate of return credited to the Ralpho Township Police Pension Fund as determined by the plan administrator. The DROP interest credited each month shall not be less than 0% nor more than 0.367% per month, and in no event shall it exceed the statutory limit of 4.5% annually. In the event the Ralpho Township Police Pension Fund earns in any month less than 0%, the monthly DROP interest credited to each DROP participant account shall be 0%. In the event the Ralpho Township Police Pension Fund earns in any one month more than 0.367%, the DROP interest credited to the DROP participant account shall be 0.367%.
(3) 
Interest earnings in excess of 0.367% in any one month shall be maintained in the Police Pension Fund as unallocated investment earnings that shall be used to offset any unfunded liability resulting from the fund earning less than what is necessary to credit DROP interest at 0%. All interest credited to the DROP participant account shall be included in the final cash settlement.
F. 
Early Termination. A participant may withdraw from the DROP program at any time, and no penalty shall be imposed for early termination of DROP participation. However, the participant shall not be permitted to make any withdrawals from the DROP participant account until DROP participation has ended. As set forth in the participant's application, withdrawal from DROP participation results in the termination of actual employment from Ralpho Township. Upon either early or regular termination of DROP participation, the DROP participant shall be separated from employment with Ralpho Township.
G. 
Payout. Upon the termination date set forth in the DROP election form or on such date as the participant withdraws or is terminated from the DROP program, if earlier, the normal retirement benefits payable to the participant or the participant's beneficiary, if applicable, shall be paid directly to the participant or beneficiary and shall no longer be credited to the DROP participant account. Within 45 days following the actual termination of a participant's employment with Ralpho Township, the accumulated balance in the DROP participant account shall be paid to the participant in a single lump-sum payment. Such payment shall be made either in cash, subject to any federal withholding as may be required, or as a direct rollover to an individual retirement account (IRA). If the participant or beneficiary fails to elect a method of payment within 60 days after the participant's termination date, the retirement system shall pay the balance as a lump sum.
H. 
Disability During DROP. If a participant becomes temporarily disabled during the DROP period, the participation freezes and the time period while on temporary disability does not count towards the selected DROP participation period. Upon return to duty, the DROP period shall resume, continuing with the remaining time left in the DROP period. The participant shall receive disability pay in the same manner as disabled police officers that are not participating in DROP. In no event shall a participant on temporary disability have the ability to draw from the DROP participant account. However, notwithstanding any other provision in this subsection, if an officer is disabled and has not returned to work as of the date of the required resignation, then such resignation shall take precedence over all other provisions herein, and said officer shall be required to resign. If a DROP participant becomes eligible for a disability pension benefit due to a permanent, service-related disability under the Ralpho Township Police Pension Plan and terminates employment, the monthly normal retirement benefit shall cease.
I. 
Death. If a participant dies before the DROP participant account balance is paid, the participant's beneficiary shall have the same rights under the Ralpho Township Police Pension Plan as the participant to withdraw the DROP participant account balance. The monthly benefit credited to the participant's DROP participant account during the month of the participant's death shall be the final monthly benefit for DROP participation.
J. 
Killed-In-Service Survivor Benefit. If a participant is killed in service, the participant's beneficiaries under the Ralpho Township Police Pension Plan shall be entitled to apply to the Commonwealth of Pennsylvania and receive a recalculation for payment of survivor benefits at 100% of the participant's salary at the time of death.
K. 
Amendment. Any amendments to this DROP section shall be consistent with the provisions covering deferred retirement option plans set forth in any applicable collective bargaining agreement or state or federal law and shall be binding upon all future participants and upon all participants who have balances in their DROP participant accounts.
3. 
Effective Date. The effective date of this section is January 1, 2016.
4. 
Severability. The provisions of this section shall be severable; and if any of its provisions shall be held to be unconstitutional or illegal, the validity of any of the remaining provisions of this section shall not be affected thereby. It is hereby expressly declared as the intent of Ralpho Township, Pennsylvania, that this section has been adopted as if such unconstitutional or illegal provision or provisions had not been included herein.
5. 
Pending Legislation. In the event that the DROP provision is declared invalid or illegal by a court of competent jurisdiction or through an administrative determination of the Office of the Auditor General, the participant shall have the right to bargain in accordance with Act 111 over deletion of this benefit. It is expressly understood that this shall not involve bargaining over a replacement provision. The provisions of this section are written to comply with Chapter 11 of Act 44 of 2009.