[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. 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.
[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.