[HISTORY: Adopted by the Borough Council of the Borough of
Mount Joy as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Police Department — See Ch.
56.
[Adopted 2-10-1992 by Ord. No. 491 (Ch. 1, Part 7, of the
1992 Code of Ordinances); amended 5-6-2013 by Ord. No. 3-13]
[Amended 6-1-2015 by Ord.
No. 5-15]
There is hereby established the Mount Joy Borough Nonuniformed Employee Pension Plan as set forth in the document entitled "Mount Joy Borough Nonuniformed Employee Pension Plan Originally Effective February 1, 1965, As Amended And Restated Effective January 1, 1997" containing Articles
I, Definitions; II, Participation; III, Retirement Benefits; IV, Death Benefits; V, Termination of Employment Benefits; VI, Contributions; VII, Additional Qualification Rules; VIII, Administration of the Plan; IX, Amendment and Termination of Plan; and X, Miscellaneous Provisions, and amended and supplemented by the Good Faith Compliance Amendment for the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) dated January 14, 2003; Amendment No. 1 dated July 14, 2003; Amendment No. 2 dated July 2, 2004; the Good Faith Amendment to Comply with Code Section 401(a)(31)(B) as amended by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) dated March 32, 2005; and Amendment No. 3 dated May 4, 2015; copies of which documents are presently on file in the Office of the Secretary of the Borough.
Borough Council hereby appoints the Borough Secretary as the
Chief Administrative Officer of the Mount Joy Borough Nonuniformed
Employee Pension Plan pursuant to Pennsylvania Act 205, the Municipal
Pension Plan Funding Standard and Recovery Act.
Borough Council may discontinue, modify, alter, terminate or
repeal the Mount Joy Borough Nonuniformed Employee Pension Plan as
allowed by law.
[Adopted 2-10-1992 by Ord. No. 492 (Ch. 1, Part 6, of the
1992 Code of Ordinances)]
There is hereby established a police pension fund to provide
pension benefits to full-time police officers of the Police Department
of the Borough of Mount Joy. This police pension fund is established
under and shall be administered in accordance with the provisions
of Act 600, Act of May 29, 1956, P.L. (1955) 1804, No. 600, as amended,
53 P.S. § 767 et seq.
A. In the interpretation of this article, words in the singular shall
include the plural, and words in the plural shall include the singular.
The masculine gender shall include the feminine gender and the neuter.
B. The following terms shall have the following meanings when used in
this article:
ACT 600
The Act of May 29, 1956, P.L. (1955) 1804, No. 600, as amended,
53 P.S. § 767 et seq.
BOROUGH
The Borough of Mount Joy, Lancaster County, Pennsylvania.
PARTICIPANT
A full-time police officer of the Borough who is eligible
to participate in the police pension fund.
POLICE PENSION FUND or FUND
The police pension fund established to provide pension benefits
for the full-time police officers of the Borough in accordance with
the requirements of Act 600.
The police pension fund established under the provisions of
this article shall be maintained by:
A. A charge against each full-time member of the police force.
B. Annual appropriations made by the Borough.
C. Payments made by the State Treasurer to the Borough Treasurer from
moneys received from taxes paid upon premiums by foreign casualty
insurance companies for purposes of pension retirement for police
officers.
D. Gifts, grants, devises or bequests granted to the police pension
fund.
[Amended 2-4-2002 by Ord. No. 1-02]
A. Each full-time police officer who has been in the employ of the Borough
as a full-time police officer for 25 years in the aggregate, except
as otherwise provided herein, and who has attained the age of 50 years
may retire and shall, upon his actual retirement from employment with
the Borough, be entitled to receive pension or retirement benefits
as are hereinafter provided.
B. Any full-time member of the police force who has been a regularly
appointed employee of this Borough 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 persons returns or has heretofore returned to his
employment within six months after his separation from the service.
C. Any participant retiring under this article shall be subject to serve,
from time to time, as a police reserve in case of riot, tumult or
preservation of the public peace, until unfitted for such service,
whereupon he may be finally discharged from reserve service by reason
of age or disability.
D. On or after January 1, 1993, a participant may obtain full service
credit for each year of military service or fraction thereof, not
to exceed five years, for military service completed prior to employment
of the participant by the Borough as a full-time police officer. 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 Borough and township police pension plans, as
certified by the Public Employee Retirement Study Commission, but
not to exceed 10%, to the participant's average annual rate of compensation
over the first three years of municipal service and multiplying the
result by the number of years and fraction part of a year of creditable
nonintervening military service being purchased, together with interest
at the rate of 4.75%, compound annual, from the date the participant
became a full-time police officer of the Borough to the date of payment
for the purchase of such credit for military service. Notwithstanding
the foregoing, a participant shall not be able to purchase credit
for nonintervening military service if the participant is 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 government agency, with
the exception of a participant 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 forces,
which retirement pay is payable only upon the attainment of a specified
age and period of service under 10 U.S.C. Chapter 67.
[Amended 2-4-2002 by Ord. No. 1-02]
A. The amount of pension or retirement benefits payable under this article
shall be as follows: Monthly pension or retirement benefits shall
be 1/2 of the monthly average salary of the participant during the
last 36 months of employment. Such retirement benefits shall be payable
monthly during the balance of participant's life following actual
retirement. Pension payments made under the provisions of this article
shall not be a charge on any other fund of the Borough or under its
control save the police pension fund.
B. A length of service increment shall be provided to all participants
who retire under the terms of this article for each completed year
of service beyond 25 years at the rate of $100 per month. Such length
of service increments shall be paid in addition to other monthly pension
benefits.
C. A cost-of-living increment shall be provided to all participants
receiving retirement benefits at the rate of 3%, provided that such
increments shall not exceed the percentage increase in the consumer
price index from the year in which the participant last worked; provided
further that in no case shall the total police pension benefits exceed
75% of the salary for computing retirement benefits; and, provided
further, that the total cost-of-living increase shall not exceed 30%.
No cost-of-living increase shall be granted which would impair the
actuarial soundness of the pension fund.
D. There is hereby established an early retirement benefit which shall
be available to a full-time police officer with 20 or more years of
continuous service who terminates employment prior to the completion
of superannuation retirement age and service requirements and who
files a written application for an early retirement benefit with Borough
Council. The early retirement benefit shall become effective as of
the date the application is filed with Borough Council or the date
designated on the application, whichever is later, and shall be the
actuarial equivalent of a partial superannuation retirement benefit
calculated as follows:
(1) A partial superannuation retirement benefit shall be determined by
applying the percentage that the participant's years of service bear
to the years of service that the participant would have rendered had
the participant continued to be employed until his or her superannuation
retirement date to the gross pension amount calculated using the monthly
average salary during the appropriate period prior to his or her termination
of employment.
(2) The actuarial equivalent of the partial superannuation retirement
benefit shall be determined by actuarially reducing the partial superannuation
retirement benefit to reflect that it will commence on the effective
date of the early retirement rather than on the date on which the
participant would have completed superannuation age and service requirements.
The actuarial reduction shall be calculated using the actuarial assumptions
reported in the last actuarial valuation report filed with the Public
Employee Retirement Commission under the Act of December 18, 1984
(P.L. 1005, No. 205), known as the "Municipal Pension Plan Funding
Standard and Recovery Act" or "Act 205," 53 P.S. § 895.101
et seq.
[Amended 2-2-1998 by Ord. No. 536]
A. A full-time police officer becomes a participant in the fund and
liable for contributions immediately upon employment.
B. Each participant shall contribute monthly into the police pension
fund established hereunder an amount equal to 5% of the participant's
total monthly compensation. All such contributions by the participant
shall be deducted by the Borough from the participant's salary. Any
balance of needed annual contributions shall become the obligation
of the Borough and shall be paid to the pension fund by annual appropriations.
C. If an actuarial study shows that the condition of the police pension
fund of the Borough is such that payments into the fund by members
may be reduced below the minimum percentages hereinbefore prescribed,
or eliminated, and that if such payments are reduced or eliminated,
contributions by the Borough will not be required to keep the fund
actuarially sound, the Borough Council may, on an annual basis by
resolution, reduce or eliminate payments into the fund by police officers.
D. Any payments made by the Commonwealth of Pennsylvania to the Borough
from moneys received from taxes paid upon premiums by foreign casualty
insurance companies for pension purposes shall be used as follows:
(1) To reduce the unfunded liability of the Borough on account of pensions
payable hereunder and after such liability has been funded.
(2) To apply against the annual obligation of the Borough for future
service cost or to the extent that the payment may be in excess of
such obligation and after such liability has been funded.
(3) To reduce the participant's contributions as provided for by Subsection
B herein and after such liability has been funded.
(4) To apply against the annual obligation of the Borough to contribute
to the Borough's nonuniformed employee pension fund.
Any full-time police officer who is totally and permanently
disabled from injuries incurred in service as a police officer of
the Borough shall be entitled to monthly disability benefits which
shall be equal to 1/2 of the monthly average salary of the participant
during the last 36 months of employment.
Upon the death of a participant who is receiving a retirement
benefit, or upon the death of a participant who is eligible to receive
retirement benefits, or upon the death of a participant who is killed
in the performance of police duties, the surviving spouse shall be
entitled, during his or her lifetime or so long as he or she does
not remarry, to receive a pension equal to 50% of the pension the
participant was receiving or would have been receiving had the participant
been retired at the time of the participant's death. If there is no
surviving spouse, or if the surviving spouse subsequently dies or
remarries, then the child or children of the participant under the
age of 18 shall be entitled to receive a pension equal to 50% of the
pension the participant was receiving or would have been receiving
had the participant been retired at the time of death. Such pension
to the child or children shall continue until the child or children
reach the age of 18 years.
A. The Borough shall be the owner of all moneys or property paid into
the fund or annuities or policies purchased from insurance companies
hereunder and the owner and designated beneficiary of any insurance
and retirement income contracts acquired hereunder, and no participant
prior to retirement shall have any right or interest in any portion
of said moneys or property; provided, however, that each participant
who is for any reason whatsoever ineligible to receive a pension after
having contributed any charges to the police pension fund established
pursuant to this article shall be entitled to a refund of all such
moneys paid by him or her into the pension fund, with interest at
a floating rate compounded annually and based on the annual average
of interest rates earned by the total fund through investments, compounded
monthly, immediately upon discontinuance of his or her employment.
If such termination or discontinuance of employment is due to death,
such refund of money shall be paid to the participant's designated
beneficiary or, in the absence thereof, to his or her estate.
B. Notwithstanding any language in this article to the contrary, a vested
benefit as described in this section is hereby authorized, provided
such vested benefit does not impair the actuarial soundness of the
fund as determined by an actuary. For the purposes of this article,
"actuary" shall mean:
(1) A member of the American Academy of Actuaries; or
(2) An individual who has demonstrated to the satisfaction of the Insurance
Commissioner of Pennsylvania that he or she has the educational background
necessary for the practice of actuarial science and has had at least
seven years of actuarial experience; or
(3) A firm, partnership or corporation of which one or more members meets the requirements of Subsection
B(1) or
(2) above.
C. Under the provisions of such benefit, should a police officer, before completing superannuation retirement age and service requirements but after having completed 12 years of total service, for any reason cease to be employed as a full-time police officer by the Borough, he or she shall be entitled to vest his or her retirement benefits by filing with the Borough Council, within 90 days of the date he or she ceases to be a full-time police officer, a written notice of his or her intention to vest. Upon reaching the date which would have been his or her superannuation retirement date if he or she had continued to be employed as a full-time police officer, he or she shall be paid a partial superannuation retirement allowance determined by applying the percentage his or her years of service bears to the years of service which he or she would have rendered had he or she continued to work until his or her superannuation retirement date to the gross pension established by §
46-23 of this article using, however, the monthly average salary during the appropriate period prior to his or her termination of employment. Such pension or retirement benefits for any month shall be up to 1/2 the average monthly salary as set forth in §
46-23 to the extent necessary to bring the total benefits in any month up to his or her partial superannuation retirement allowance as outlined herein. It is the intention of this section to provide a vested benefit as and to the extent authorized by Act No. 1979-99, 53 P.S. § 771.
[Amended 7-6-2020 by Ord. No. 6-20]
The police pension fund shall be maintained under the direction
of the trustees of the police pension fund. The President of Borough
Council, the Borough Manager and the Chairperson of the Administration
and Finance Committee of Borough Council shall serve as the trustees
of the police pension fund. The trustees shall have full responsibility
for the administration of the program established hereunder and shall
hold, invest. reinvest and distribute all funds or other property
received pursuant hereto in trust for the purpose of this article.
The trustees may receive at any time and from time to time gifts,
grants, devises or bequests to the police pension fund or any money
or property. real or personal, or mixed, to be held by them in trust
for the benefit of the fund and in accordance with the provisions
hereof. The trustees shall have full power and authority by a majority
action of the trustees to do all acts. execute, acknowledge and deliver
all instruments, and to exercise for the sole benefit of’ the
participants hereunder any and all powers and discretion necessary
to implement and effectuate the purpose of this article, including,
for purposes of illustration but not limited to, any and all of the
following:
A. To hold, invest and reinvest all funds received pursuant to this
article, in such legal investments as may be authorized as legal investments
under the laws of the Commonwealth of Pennsylvania.
B. To enter into contracts or deposit agreements on behalf of this Borough
with one or more banks, trust companies, savings-and-loan associations
or insurance companies, in order to provide the pension and other
benefits herein set forth, and to pay the premiums and deposits required
by the purchase of said contracts.
C. To retain or purchase as an investment any form of annuity or contracts
of similar nature and to exercise, with respect thereto, any right
or incident of ownership.
D. To retain any property which may at any time become an asset of the
fund, as long as said trustees may consider it advisable.
E. To make distribution of moneys in the fund in accordance with the
terms of this article.
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 participant or his or her designated
beneficiary. No participant or his or her beneficiary shall have any
right to alienate, encumber or assign any assets of the fund held
by the Borough on his or her behalf or any of the benefits or payments
or proceeds of any contract or agreement purchased or acquired by
the Borough hereunder. Any contract or agreement purchased or acquired
pursuant to this article upon the life of such participant shall contain
a provision, in substance, that, to the extent permitted by law, none
of the benefits or payments or proceeds of such contract or agreement
shall be subject to any legal process by any creditor of such participant
or beneficiary of such participant.
All costs and expenses incurred in administering the police
pension fund, including, but not limited to, the compensation paid
to an actuary and to any custodian or trustee of the fund, shall be
paid from the police pension fund.
The Borough Council shall employ or retain the services of an
actuary to conduct and file the actuarial study required to be filed
with the Department of Community and Economic Development of Pennsylvania
pursuant to Act 293 of 1972, as amended.