[Amended 12-12-2002 by Ord. No. 652]
A. Contributions by members. Member shall pay into the fund at a rate of 5% of compensation. "Compensation," for this purpose, shall be as defined in §
40-5 of the plan. The Council may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members. Individual records of contributions by members shall be maintained, including all interest credited to each member's individual account. Interest to be credited shall be 6.5% compounded annually. Interest shall be credited from the end of the plan year in which paid to the end of the month after which a refund becomes payable.
B. Refund of member's contributions. Any member who for any reason shall
be ineligible to receive a pension after having made contributions
shall be entitled to a refund of his individual account balance; such
refund is payable immediately upon discontinuance of his employment
with the police force or within a reasonable time (not more than 45
days after discontinuance). If such discontinuance is due to death,
then such refund shall be paid to his designated beneficiary or, in
the absence thereof, to his estate. If the disabled or retired member
is receiving a benefit by reason of disability or retirement, then
the refund payable to the beneficiary is equal to the individual account
balance at the date of disability or retirement, less any pension
payments made to the member.
C. Deposits. Contributions by members shall be remitted to the trustee
monthly.
D. State aid. The portion of the payments made by the State Treasurer to the Borough and designated by the Council to be allocated to the Police Pension Fund from money received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement or disability benefits for policemen shall be used as follows: 1) to reduce the unfunded liability, or, after such liability has been fully funded; 2) to apply against the annual obligation of the Borough for future service costs, or to the extent that the payment may be in excess of such obligations; 3) to reduce member contributions pursuant to §
40-7A hereof.
E. Borough contributions. Subject to the provisions and limitations
set forth in other sections of this plan, the Borough shall contribute
the amounts certified to be necessary by the fund's actuary to provide
the benefits provided by this plan.
F. Contributions by members while on military service. The trustee shall continue to contribute to the fund for the officer's benefit for a member who enters the military service during a time of wartime or general military conflict either voluntarily or by conscription shall continue to make contributions to the plan as outlined in §
40-7A based on the compensation in effect on the last day of service with the Borough's Police Department. However, no contributions will be made either by or on behalf of a member who voluntarily extends his military service during peacetime.
G. Nonintervening military buy back. The plan provides full service credit for each year of military service or fraction thereof, not to exceed five years, to a member who was not employed by the Borough prior to such military service, payable by the member. The member shall pay the amount for the purchase of credit for military service other than intervening military service which shall be computed by applying the average normal cost rate for the plan 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 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 3/4% compounded annually from the date of initial entry into service to the date of payment. A member of the plan shall be eligible to receive service credit for intervening or nonintervening military service, provided that he is not entitled to receive, eligible to receive then 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 who is 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 (relating to retired pay for nonregular service).
H. Other contributions. The fund shall be authorized to receive, by
gift, grant, devise or bequest, any money or property, real, personal
or mixed, in trust for the benefit of the fund. The trustee of the
fund shall be subject to such directions not inconsistent with this
plan as the donors of such funds and property may prescribe.
[Amended 12-12-2002 by Ord. No. 652]
A. Normal retirement. Each member may retire on or at any time after
his normal retirement date. Any member so retiring shall be entitled
to receive a monthly pension commencing as of the first day following
his date of actual retirement and ending with the payment made as
of the first day of the month in which his death occurs. The monthly
pension to which such retired member shall be entitled to under this
plan shall be equal to 50% of such member's average applicable compensation.
In addition to the monthly retirement benefit described above, each
member who has completed 26 years of service shall receive an additional
monthly pension benefit equal to a maximum of $100 per month.
B. Early retirement benefit. Each member may retire on or at any time after his early retirement date. Upon termination, the member must file with the Secretary of the Borough a written notice of his intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit as computed in §
40-10A. The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission.
C. Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any contributions required pursuant to §
40-7A hereof shall continue.
D. Disability benefit. If a member retires because of a total and permanent
disability, he shall be entitled to receive a pension benefit equal
to the greater of 75% of his average applicable compensation or 50%
of his salary at the time the disability was incurred, offset by social
security. This benefit shall continue until his death.
E. Cost-of-living adjustment. There shall be a cost-of-living increase
provided to all members who retire; provided, however, that such cost-of-living
increase shall not exceed the percentage increase in the Consumer
Price Index for All Urban Consumers for the Philadelphia Metropolitan
Area from the year in which the police officer last worked; provided,
further, that in no case shall the total police pension benefits exceed
75% of the salary for computing retirement benefits; provided, further,
that the total cost-of-living increase shall not exceed 30%. No cost-of-living
increase(s) shall be granted which would impair the actuarial soundness
of the plan. All adjustments shall be made in January and calculated
on the twelve-month percentage change in the consumer price index
as of the previous December.
[Amended 2-14-2002 by Ord. No. 643; 12-12-2002 by Ord. No. 652]
A. Death benefits if no surviving spouse nor dependent children. If
a member dies prior to the commencement of pension benefits, then
his designated beneficiary shall be entitled to a refund of his accumulated
member contributions with credited interest. If no beneficiary survives,
then the refund is payable to the member's estate.
B. Pension benefit to surviving spouse and dependent children.
(1) If a member dies survived by a spouse or dependent children after
having become eligible to receive a pension benefit (i.e., he was
eligible because he was already receiving a pension or he met the
age and service requirements, but he had not yet retired), then a
monthly pension benefit shall be provided.
(2) The amount of the monthly pension benefit shall be 50% of the pension
the member was receiving or would have been entitled to receive if
he had been retired at the time of his death.
(3) In the event a member dies after completing 12 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in §
40-10. If a vested benefit is selected, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following the member's normal retirement date.
(4) In the event a member dies after completing 20 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in §
40-8B. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit commencing on the first day of the month following the election of this benefit.
(5) The monthly pension benefit is payable to the surviving spouse until
death, then the surviving dependent children under the age of 18 years
or, if attending college, under or attaining the age of 23 years.
"Attending college" shall mean 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. Dependent
children shall include stepchildren, adopted children and any child
conceived before the time of the member's death and thereafter born
to the member's spouse.
C. Preretirement survivor benefit. In the event a police employee is
killed in service, the police employee's family shall receive the
benefits provided for and subject to the terms of Act 51 of 2009, which benefits are paid exclusively by the Commonwealth
of Pennsylvania with the exception of any pension benefit to which
the police employee was entitled prior to the police employee's death,
solely by virtue of the police employee's service with the Borough
(i.e., either a normal, early, or vested pension benefit). It is understood
that family shall refer to the surviving spouse and dependent children.
The benefit is payable to the surviving spouse until death, then to
the surviving dependent children under the age of 18 years, or if
attending college, under or attaining the age of 23 years.
[Amended 12-14-2017 by Ord. No. 761]
If a member leaves the employ of the Borough or ceases to be a member, whether by reason of his transfer, resignation or discharge, or by reason of disability or retirement other than after becoming eligible for benefits pursuant to §
40-8 or
40-9 of this plan, he shall be entitled to a refund of all contributions made by him and then on deposit in the fund, plus interest thereon, computed at the rate described in §
40-7A. However, a member who has completed 12 or more years of service may elect either Subsection A or B as described below:
A. He may elect to leave his contributions, plus interest in the fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Secretary of the Borough within 90 days of the date he ceases to be a full-time police officer a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y) where (x) is the number of years of service at the date of termination and (y) is the number of years of service which the member would have had if he worked until normal retirement date, multiplied by the benefits described in §
40-8A. Years of service shall be measured in years and completed months.
B. He may elect to receive a refund of all contributions made by him and then on deposit in the Trust Fund, plus interest thereon, computed at the rate described in §
40-7A. If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit outlined in Subsection
A above.
[Added 12-10-2015 by Ord.
No. 747]
A. Title. This section shall be known as the "Trainer Police Act 44
Retirement Program."
B. Definitions. When used in this section, the below words shall have
the meaning indicated.
ACT 44 PLAN
The pension payments plan approved by the Pennsylvania Legislature
September 18, 2009, amending Title 53 as it relates to Municipal Police
Pension Plans.
ACT 44 PLAN ACCOUNT
Separate account created to accept an Act 44 Plan participant's
monthly pension check while an Act 44 Plan participant, as well as
any interest thereon.
BOROUGH
Borough of Trainer, Delaware County, Pennsylvania.
PARTICIPANT
A police officer who meets the eligibility for and has executed
the proper documents for participation in Act 44 Plan and has had
such application approved by the Borough.
C. Eligibility. Eligibility for the Act 44 Plan shall be determined
as follows: Police officers who have not retired prior to the implementation
of the Act 44 Plan program may enter into the Act 44 Plan program
on the first day of any month following completion of 25 years of
credited service and attaining the age of 50. If the officer completed
25 years of credited service and attained the age of 50 prior to the
enactment of this section, then the effective date of entry may be
the date they completed 25 years of credited service and attained
the age of 50, but the date may not be earlier than January 1, 2015.
D. Written election. Eligible officers who wish to be participants in
the Act 44 Plan program must signify that intention in writing as
follows:
(1)
A police officer electing to participate in the Act 44 Plan
program must complete and execute an Act 44 Plan participation election
form prepared by the Borough, which shall evidence the member's election
to participate in the Act 44 Plan. The form must be signed by the
police officer and be notarized and submitted prior to the date on
which the member wishes Act 44 Plan participation to commence. The
Act 44 Plan participation election form shall include an irrevocable
notice to the Borough, by the police officer member, that the police
officer shall resign from employment with the Police Department effective
on a specific date (the "resignation date"). In no event shall the
resignation date be longer than 60 months from the date entry into
the Act 44 program. No member shall be permitted to remain in the
program beyond age 70. A police officer shall cease to work as a police
officer on the officer's resignation date, unless the Borough properly
terminates or honorably discharges the officer prior to the resignation
date. In addition, upon providing the ninety-day notice to the Borough,
which may be waived by the Borough in its sole discretion, a participant
may resign from employment while in Act 44 Plan status.
[Amended 12-14-2017 by Ord. No. 761; 1-13-2023 by Ord. No. 777]
(2)
In addition to the above information, the Act 44 Plan participation
election form shall also advise the employee of the following: 1)
an explanation of the participant's rights and obligations while in
the Act 44 Plan; 2) that, as a condition of Act 44 Plan participation,
the participant foregoes active participation in the Police Pension
Plan and foregoes any recalculation of pension benefits to include
salary increases, or on account of injury in the course of duty, or
otherwise, occurring after Act 44 Plan participation commences; and
3) that the Act 44 Plan participant's service while in Act 44 Plan
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 Plan participation. An Act 44
Plan participant must also complete all necessary and appropriate
retirement documents required by the Police Pension Plan Administrator,
and such documents must be filed and presented to the Borough for
approval of retirement and payment of pension, which approval shall
not be unreasonably withheld. Once an Act 44 Plan participation election
form has been approved by the Borough, it is irrevocable. Likewise,
once an Act 44 Plan participant enters the Act 44 Plan program, the
participant may not subsequently leave and then reenter the Act 44
Plan, even if the employee separates from employment and subsequently
begins employment with the Borough again.
E. Benefit calculation. For all retirement Fund purposes, continuous
service of a police officer participating in the Act 44 Plan shall
remain as it existed on the effective date of commencement of participation
in the Act 44 Plan. Service thereafter shall not be recognized or
used for the calculation or determination of any benefits payable
by the Borough 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 Plan, calculated over the sixty-month period prior to
the officer's entry into the Act 44 Plan for any member hired on or
after January 1, 2015 and 36 months for any member hired before January
1, 2015. 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 pension benefit payable to the members
shall increase only as a result of cost of living adjustments in effect
on the effective date of the member's participation in the Act 44
Plan or by applicable cost of living adjustments granted thereafter.
F. Accumulation of the Act 44 Plan 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 Act 44 Plan, accumulate
to the benefit of that officer and be paid into that police officer's
Act 44 Plan account. Participants shall not have the option of self-directed
investment of their individual Act 44 Plan account while in the Act
44 Plan. Instead, the monies shall be invested in a fund to be identified
and selected solely by the Borough so as to generate a rate of return
of 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 Plan 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 Plan payout options
available to the Act 44 Plan participant shall be as follows:
(1)
The balance of the Act 44 Plan 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;
or
(2)
The balance of the Act 44 Plan participant's account shall be
paid directly to the custodian of an eligible retirement plan as defined
by Internal Revenue Code § 402(c)(8)(b), or in the case
of an eligible rollover distribution to the surviving spouse of a
deceased Act 44 Plan participant, an eligible retirement plan that
is an individual retirement account or an individual retirement annuity
as defined by Internal Revenue Code § 402(c)(9).
(3)
If the Act 44 Plan participant or beneficiary fails to make an election within 60 days following the date of termination of Act 44 Plan participation, then the Borough shall implement Subsection
H(1) above.
I. Service-connected disability during Act 44 Plan. If an Act 44 Plan
participant becomes temporarily incapacitated during his participation
in Act 44 Plan, that police officer shall continue to participate
in the Act 44 Plan 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 Act 44 Plan. In no event shall
a police officer on temporary disability have the ability to draw
from his Act 44 Plan 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 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 Plan Program supersede or limit in any way the right
of the Borough 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 Plan participant becomes eligible for a disability pension
and his employment is terminated due to an inability to continue in
service on grounds that render him eligible for a service-connected
disability pension, the monthly normal retirement benefit of the Act
44 Plan participant shall end. The monthly retirement benefits of
the Act 44 Plan participant shall be reclassified as being on account
of a service-connected disability. An Act 44 Plan participant's monthly
retirement benefit shall not be recalculated (i.e., the benefit shall
remain at 50%, as calculated at the time of entry into the plan, subject
to applicable cost-of-living adjustments).
J. Death. If an Act 44 Plan participant dies, the participant's eligibility
for Act 44 Plan shall terminate upon the date of death. In such case,
if the Act 44 Plan 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 Plan 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. §§ 1311-1314, shall forfeit his right to receive
a pension, including any amounts currently deposited in the Act 44
Plan 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 Plan Program. The police officers and
the Borough agree that any costs or fees associated with the management
of the Act 44 Plan accounts shall be paid directly and solely from
the pension fund and not by the Borough.
M. Amendment. Any amendments to the Act 44 Plan 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 Plan participants and upon all Act
44 Plan participants who have balances in their individual retirement
option accounts. The Act 44 Plan 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 Plan program shall in no way be construed as a limitation
on the Borough'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.
O. Severability. The provisions of the Act 44 Plan program 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 the
Act 44 Plan program shall not be affected thereby. It is hereby expressly
declared as the intent of the Borough that the Act 44 Plan 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 Plan program shall
be the date the Borough approves the collective bargaining agreement,
which references the creation of this Act 44 Plan.