[Ord. No. 667, §§ 3.01, 3.02; Ord. No. 676, § 1, 8-13-1973; Ord. No. 1375, § 1, 2-11-2002; Ord. No. 1418, § 3, 3-8-2004]
(a) 
Each member who remains in employment until his normal retirement date shall be entitled to receive a monthly pension, payable during his lifetime on the first day of each month following his termination of employment, equal to his accrued monthly pension.
(b) 
If a member, retiring on or after his normal retirement date, who has begun to receive a pension under the plan, dies prior to the time he has received one hundred twenty (120) monthly pension payments, the monthly payments will be continued to the beneficiary named by the member until the number of monthly payments made to such former member and his beneficiary total one hundred twenty (120). If a member who has remained in the employment of the Township beyond his normal retirement date dies prior to the date his pension payments have commenced, one hundred twenty (120) monthly payments equal to the member's accrued monthly pension will be paid to the beneficiary named by the member. If no beneficiary designated by the member is alive to receive such payments, or if the beneficiary designated by the member dies prior to receiving all payments due, the remaining payments will be commuted at four percent (4%) interest compounded annually, and the commuted value paid in a single sum to the estate of the member or such beneficiary, whichever is the last to die.
(c) 
At the conclusion of the one-hundred-twenty-month certain payment period provided for in § 19-44(b) above, 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 such spouse survives and subsequently dies, then the child or children under the age of eighteen years or, if a student, under or attaining the age of twenty-three (23) years, of a member who dies, shall, during such spouse's lifetime, or until reaching the age of eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years, in the case of a child or children, be entitled to receive a pension calculated at the rate of fifty percent (50%) of the pension the member was receiving or would have been receiving had he been retired at the time of his death.
(d) 
Notwithstanding anything to the contrary contained herein, the survivor benefits referred to in § 19-44(b) and (c) shall apply only to officers who began full-time employment before January 24, 2001. For officers who began full-time employment on or after January 24, 2001, the survivor benefits shall be as follows: 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 eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years, may, during his or her lifetime in the case of a spouse or until reaching the age of eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years, in the case of a child or children, be entitled to receive a pension calculated at the rate of fifty percent (50%) of the pension the member was receiving or would have been receiving had he or she been retired at the time of his or her death.
[Ord. No. 667, § 3.04, 12-11-1972; Ord. No. 676, § 1, 8-13-1973; Ord. No. 810, § 2, 3-12-1979; Ord. No. 1090, § 2, 12-9-1991; Ord. No. 1104, § 2, 6-8-1992; Ord. No. 1296, § 1, 7-19-1999; Ord. No. 1297, § 1, 7-19-1999; Ord. No. 1308, § 1, 11-22-1999; Ord. No. 1326, § 2, 4-26-2000; Ord. No. 1375, §§ 2, 3, 2-11-2002; Ord. No. 1418, § 4, 3-8-2004; Ord. No. 1529, § 1, 9-14-2009]
(a) 
Job-related disability pension.
(1) 
Effective January 1, 1995, commencing with the first day of employment on the police force, if the service of a member employed as a police officer is discontinued prior to his/her normal retirement date because of a disability which was caused by the member's service as a police officer for the Township ("job-related permanent disability"), that member shall be entitled to receive a lifetime monthly pension commencing on the first day of the month following termination of employment. The amount of pension payment shall be 75% of the member's monthly salary rate reduced by any workers' compensation payments that the member received that are not endorsed to the Township in accordance with the collective bargaining agreement. In the event that the member received workers' compensation payments that are subsequently settled in a lump sum payment to the member, future disability payments will be reduced by the actuarial equivalent value of such lump sum payment.
(2) 
Upon the death of a member who is then receiving a job-related disability pension prior to the time he/she has received 120 monthly pension payments, the monthly payments that would otherwise have been payable will continue to the beneficiary named by the member until the number of monthly payments to such former member and his/her beneficiary total 120. If no beneficiary designated by the member is alive to receive such payments, or if the beneficiary designated by the member dies prior to receiving all payments due, the remaining payments will be commuted at 4% interest compounded annually, and the commuted value paid in a single sum to the estate of the member or such beneficiary, whomever is the last to die.
(3) 
Notwithstanding the above, effective July 1, 2000, the fixed benefit rate of each disabled police officer who retired on a job-related disability retirement prior to January 1, 2000, at the fifty-percent level will be set at 57% of the member's monthly salary rate. Each disabled police officer who retired on a job-related disability retirement prior to January 1, 2000, at the seventy-five-percent level will be set at 103% of the member's monthly salary rate.
(4) 
Notwithstanding anything to the contrary contained in sec. 19-45(a)(2), the survivor benefits referred to in sec. 19-45(a)(2) shall apply only to Officers who begin full-time employment before January 24, 2001. For Officers who begin full-time employment on or after January 24, 2001, the survivor benefits shall be as follows: The widow or widower of a member of the police force or a member who retires on pension who dies or if no widow or widower survives or if he or she survives and subsequently dies or remarries, then the child or children under the age of eighteen (18) years of a member of the police force, or a member who retires on pension who dies may, during his or her lifetime or so long as he or she does not remarry in the case of a widow or widower or until reaching the age of eighteen (18) years in the case of a child or children, be entitled to receive a pension calculated at the rate of fifty percent (50%) of the pension the member was receiving or would have been receiving had he or she been retired at the time of his or her death.
(5) 
In the case of the payment of pensions for permanent injuries incurred in service, the amount and commencement of the payments shall be fixed by Township Council and shall be calculated at a rate no less than fifty per centum 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 benefits offset or reduced by the amount of such benefits.
(6) 
In the event that Act 600 is amended by the General Assembly of Pennsylvania and signed by the Governor to authorize and permit the benefits as reduced herein for Police Officers hired on or after January 24, 2001, then Police Officers hired on or after January 24, 2001, shall receive the same benefits as officers who began full-time employment before January 24, 2001, under § 19-44 and 19-45 of this plan as set forth herein.
[Ord. No. 667, § 3.05, 12-11-1972; Ord. No. 676, § 2, 8-13-1973; Ord. No. 688, § 1, 11-26-1973; Ord. No. 810, § 3, 3-12-1979; Ord. No. 945, § 1, 3-10-1986; Ord. No. 1090, § 3, 12-9-1991; Ord. No. 1297, § 2, 7-19-1999; Ord. No. 1301, § 1, 9-13-1999; Ord. No. 1304, § 1, 10-11-1999; Ord. No. 1308, § 2, 11-22-1999; Ord. No. 1375, § 4, 2-11-2002; Ord. No. 1418, § 5, 3-8-2004]
(a) 
Upon the death of a retired member receiving a disability pension, where the aggregate pension payments received prior to the death are less than the member's aggregate contribution, if any, to the plan together with credited interest, the excess of such contributions plus interest over and above pension payments will be paid to the member's designated beneficiary. If no beneficiary designation is effective at death, payment will be made to the member's estate.
(b) 
For any member who retired prior to January 1, 2000, upon the death of such retired member of the plan, there shall be paid to his/her designated beneficiary (or to his/her estate if no designation is effective at his/her death) in addition to any benefits payable under sec. 19-44(b), sec. 19-45(a) or sec. 19-45(b) hereof, a lump sum of $3,000.
(c) 
At the conclusion of the one-hundred-twenty-month certain payment period provided for under § 19-44(b) above for retirement, and § 1945(a)(2) above for a member who retires with a job-related permanent disability under § 19-45(a) above, the surviving spouse of such member or of such member who retires on pension who dies, or if no spouse survives, then the child or children under age eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years, of a member who dies shall during such spouse's lifetime, or until reaching the age of eighteen (18) years or, if a student, under or attaining the age of twenty-three (23) years in the case of a child or children, be entitled to receive a pension calculated at the rate of fifty percent (50%) of the pension such member was receiving or would have been receiving had he/she been retired at the time of his/her death.
[Ord. No. 667, § 6.02, 12-11-1972]
If any member or beneficiary shall be physically or mentally incapable of receiving or acknowledging receipt of any payment due under the terms of the plan and no legal representative shall have been appointed for him, the Council may direct that any such payment due him be paid to any person or institution maintaining such member or beneficiary and the release of such person or institution shall be a valid and complete discharge for such payment.
[Ord. No. 667, § 6.03, 12-11-1972]
If the beneficiary of any member shall be a minor and no guardian shall have been appointed for him, the Council may direct that any payment due under the plan for his benefit be retained until he attains majority. Such amount, as authorized by the Council, may be held in cash, deposited in bank or savings accounts, or invested and reinvested in direct obligations of the United States, and the income thereon may be accumulated and invested or the income and principal may be expended and applied directly for the maintenance, education and support of such minor without the intervention of any guardian and without application to any court.
[Ord. No. 1220, § 2, 3-10-1997]
Notwithstanding anything herein to the contrary, each retirement pension that first becomes payable on or after January 1, 1997 shall include a service increment of $100 per month if the police officer has 26 or more years of continuous service at the time of retirement.
[Ord. No. 1220, § 3, 3-10-1997; Ord. No. 1263, § 2, 6-22-1998]
(a) 
Each retirement pension that first becomes payable on or after January 1, 1997, under section 19-44 above, or on or after August 1, 1998, under section 19-53, shall be annually adjusted. Such adjustment shall be made as of each January 1 to reflect the cost of living change in the preceding year, based on 1/2 of the increase in the CPI-W Consumer Price Index of the United States Department of Labor for Philadelphia (urban wage earners and clerical workers) for the twelve-month period ending on the October 31st preceding each such January 1.
(b) 
Notwithstanding the above, the following limitations shall be applicable to all cost-of-living adjustments:
(1) 
No cost-of-living adjustment shall be made in the first year of retirement unless the member was retired for at least six months prior to January 1.
(2) 
The cost-of-living increase shall not exceed 1/2 of the percentage increase in the Consumer Price Index from the year the member last worked.
(3) 
In no case shall the total police pension benefits (including all service increments and automatic cost-of-living adjustments) exceed 75% of the member's monthly plan compensation used for computing retirement benefits.
(4) 
The total aggregate of the cost-of-living increases for all years shall not exceed 15%.
(5) 
No cost-of-living increase shall be granted which shall impair the actuarial soundness of the pension fund.
[Ord. No. 1346, § 1, 3-12-2001]
(a) 
Each retirement pension that first becomes payable on or after January 1, 2000, under Sec. 19-44 or 19-53 shall be annually adjusted. Such adjustment shall be made as of January 1 to reflect the cost of living change in the preceding year, based on the increase in the CPI-W Consumer Price Index of the U.S. Department of Labor for Philadelphia (urban wage earners and clerical workers) for the twelve-month period ending on October 31 preceding each such January 1.
(b) 
Notwithstanding the above, the following limitations shall be applicable to all such cost of living adjustments:
(1) 
No cost of living adjustment shall be made in the first year of retirement unless the member was retired for at least six months prior to January 1;
(2) 
The cost of living increase shall not exceed the percentage increase of the Consumer Price Index for Urban Wage Earners from the year the member last worked;
(3) 
In no case shall the total police pension benefits (including all service increments and automatic cost of living adjustments) exceed 75% of the member's final average earnings based on the last 36 months of service to the Township.
(4) 
The total aggregate of the cost of living increase for all years shall not exceed 30%.
(5) 
No cost of living increase shall be granted which shall impair the actuarial soundness of the pension fund.
[Ord. No. 1375, § 5, 2-11-2002; Ord. No. 1418, § 6, 3-8-2004]
In the event of the death of a member whose employment commenced prior to January 24, 2001, who is entitled to receive an automatic cost-of-living adjustment under § 19-51 or § 19-51.1, any benefits that become payable pursuant to § 19-46 on behalf of such member shall include the automatic cost-of-living adjustment.
[Ord. No. 1248, § 1, 12-8-1997]
Effective January 1, 1998, each retirement pension that first became payable prior to January 1, 1975, shall be increased by an ad hoc cost-of-living increase. This increase shall be equal to 30% of the initial monthly benefit that the eligible pensioner received at the time of retirement less any subsequent ad hoc increases granted prior to January 1, 1998, and shall be payable thereafter for his remaining lifetime.
[Ord. No. 1263, § 3, 6-22-1998]
(a) 
If a member's employment with the Township is terminated after at least 20 years of continuous service but before his normal retirement date (other than for death or for permanent disability), he shall be eligible for an early retirement pension, provided that he files with the board a written application for an early retirement benefit. The early retirement benefit shall become effective as of the date the application is filed with the board or the date designated on the application, whichever is later, and shall be the actuarial equivalent of his deferred vested pension as of the date his employment terminated.
(b) 
The actual equivalent of the deferred vested pension shall be determined by actuarially reducing the deferred vested pension to reflect that it will commence on the effective date of his early retirement rather than on his normal retirement date. The actuarial reduction shall be actuarial assumptions reported in the last actuarial 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.
[1]
Editor's Note: Former § 19-54, Killed in service benefit, added 3-8-2004 by Ord. No. 1418, § 7, was repealed 5-11-2015 by Ord. No. 1605.
[Ord. No. 1418, § 8, 3-8-2004]
(a) 
Effective date. Effective January 1, 2004, members who have not retired prior to the implementation of the DROP program may enter into DROP following completion of twenty-five (25) years of credited service and attaining the age of fifty-two (52.)
(b) 
Written election. A member electing to participate in the DROP must complete and execute a "drop option form" prepared by the Township, which shall evidence the member's participation in the DROP. The form must be signed by the member and notarized and submitted to the Township prior to the date on which the member wishes the DROP option to be effective. The DROP option notice shall include an irrevocable notice to the Township, by the member, that the member shall resign from employment with the Plymouth Township Police Department effective on a specific date (the "resignation date"). In no event shall the resignation date be shorter than twelve (12) months or longer than sixty (60) months from the execution of the DROP option form. An officer shall cease to work as a Township Police Officer on the officer's resignation date, unless the Township terminates or honorably discharges the officer prior to the resignation date. In addition, all retirement documents required by the board must be filed and presented to the board for approval of retirement and payment of pension. Once a retirement application has been approved by the board, it is irrevocable.
(c) 
Limitation on pension accrual. After the effective date of the DROP option, the member shall no longer earn or accrue additional years of continuous service for pension purposes. The member shall no longer be required to make contributions to the plan.
(d) 
Benefit calculation. For all retirement fund purposes, continuous service of a member participating in the DROP shall remain as it existed on the effective date of commencement of participation in the DROP. Service thereafter shall not be recognized or used for the calculation or determination of any benefits payable under the plan. The average applicable compensation of the member for pension calculation purposes shall remain as it existed on the effective date of commencement of participation in the DROP. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable under the 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 DROP or by applicable cost-of-living adjustments granted thereafter.
(e) 
Payments to the DROP account. The monthly retirement benefits that would have been payable had the member elected to cease employment and receive a normal retirement benefit, shall, upon the member commencing participation in DROP, be paid into the separate account established to receive the participant's monthly pension payments. This account shall be designated the DROP account.
(f) 
Accrual of non-pension benefits. After an officer elects to participate in the DROP program, all other contractual benefits shall continue to accrue with the exception of those provisions relating to the plan. An officer may utilize leave time during the DROP period.
(g) 
Payout. Upon the resignation date set forth in the member's drop option notice or such date as the Township separates the member from employment, the retirement benefits payable to the member or member's beneficiary, if applicable, shall be paid to the member or beneficiary and shall no longer be paid to the member's deferred retirement option account. Within thirty (30) days following termination of a member's employment pursuant to their participating in the DROP program, the balance in the member's DROP account shall be paid to the member in a single lump-sum payment or at the member's option, in any fashion permitted by law.
(h) 
Disability during DROP. If a member becomes temporarily incapacitated during his participation in DROP, that member shall continue to participate in the DROP program as if fully employed, and his participation freezes and the time period while on disability does not count towards the sixty-month participation limit. Upon return to duty, membership in DROP shall resume, continuing with the remaining time left in the sixty-month membership period. The member shall receive disability pay in the same amount as disabled members that are not participating in DROP. In no event shall a member on temporary disability have the ability to draw from his DROP account. However, notwithstanding any other provision in this paragraph, if a member 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 employee, member or other person to a continuation of employment nor shall participation in the DROP program supercede or limit in any way the right of the Township to honorably discharge a member based upon an inability to perform his or her full duties as a member. An member participating in the DROP program agrees to waive the right to receive any disability pension benefit under the terms of the plan.
(i) 
Death. If a DROP member dies before the DROP account balances are paid, the participant member's legal beneficiary shall have the same rights as the member to withdraw the account balance.
(j) 
Account manager. The Township and the members will mutually agree upon an investment manager to administer the DROP accounts. The Township and the members further agree that the Township shall not be responsible for any investment loss incurred in the plan or for the failure of an investment to earn a specific or expected return or to earn as much as any other opportunity, whether or not such other investment opportunity was offered or available to participants in the plan.
(k) 
Cost of management for DROP program. The members and the Township agree that any costs or fees associated with the management of the DROP accounts shall be paid directly from the plan and not by the Township.
(l) 
Amendment. Any amendments to the DROP shall be consistent with the provisions covering deferred retirement option plans set forth in any applicable collective bargaining agreement and shall be binding upon all future DROP participants and upon all DROP participants who have balances in their deferred retirement option accounts. The DROP plan may only be amended by a written instrument, not by any oral agreement or past practice.
(m) 
Construal of provisions. A member's election to participate in the DROP program shall in no way be construed as a limitation on the Township's right to promote or to suspend or terminate a member for just cause or to grant the member an honorable discharge based upon a physical or mental inability to perform his or her duties.
(n) 
Severability. The provisions of the DROP plan 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 ordinance shall not be affected thereby. It is hereby expressly declared as the intent of the Plymouth Township Council that the DROP plan would have been adopted had such unconstitutional or illegal provision or provisions not been included herein.
[Ord. No. 1494, 3-10-2008]
Effective July 1, 2008, each retirement pension of a retired police officer who retired prior to June 30, 1993, under § 19-44 (normal retirement) or § 19-53 (early retirement) (eligible pensioner) shall be increased by an ad hoc cost of living increase. This increase shall be equal to 7.5% of the monthly benefit that the eligible pensioner received for the month of June 2008, and shall be payable thereafter for his remaining lifetime.
[Added 7-10-2023 by Ord. No. 1692]
Officers may purchase service credit for up to five (5) years of active military service with the United States Armed Forces that occurred prior to their employment as Township police officers, provided that the officer is not entitled or eligible to receive and is not currently receiving retirement benefits for such service from any retirement system administered and wholly or partially paid for by any other governmental agency. The amount due for the purchase of credit for military service other than intervening military service shall be computed in accordance with Section 4 of Act 600, 53 P.S. § 770. The amount due shall be calculated by applying the average normal cost rate for borough, town, township and regional police pension plans as certified by the Public Employee Retirement Commission, but not to exceed ten percent (10%), to the officer's average annual rate of compensation over the first three (3) years of Township service and multiplying the result by the number of years and fractional part of a year of creditable non-intervening military service being purchased together with interest at the rate of four and three-quarters (4.75%) compounded annually from the date of initial entry into Township service to the date of payment.