[Ord. 965, 12/19/1989, § 1]
There is hereby established in the Borough a Pension Plan and
Pension Fund for the benefit of full-time police officers of the Borough.
The Pension Plan shall be known as the "Borough of Mechanicsburg Police
Pension Plan" (hereinafter "Plan"). The Pension Fund shall be known
as the "Borough of Mechanicsburg Police Pension Fund" (hereinafter
"Fund").
[Ord. 965, 12/19/1989, § 2; as amended by Ord.
1090, 12/19/2006, § 1; and by Ord. 1093, 5/22/2007, § 1]
1. The Council is hereby authorized to enter into an agreement of trust
with a corporate fiduciary, which agreement of trust shall permit
the fiduciary to manage and operate the Fund and to receive, hold,
invest and disburse any sum or sums as may be necessary to carry out
the Plan. The Council shall determine the form and terms of any such
agreement of trust.
2. Effective January 1, 2007, and continuing thereafter until terminated
by the Council, the accompanying joinder agreement and the terms of the Pennsylvania State Association of
Boroughs Master Retirement Trust are adopted by the Borough, to be
known as the Borough of Mechanicsburg Police Pension Plan (the "Plan").
Hereafter, by resolution duly adopted, the Council may amend any provisions
of the trust or joinder agreement relating to the administration and
management of the Plan. Modifications to the Plan relating to contributions,
vesting, member and survivor benefits or other substantive matters
shall be effected only upon amendment of this Part by ordinance duly
enacted by Council.
[Ord. 965, 12/19/1999, § 3]
1. The Borough of Mechanicsburg Police Pension Fund shall be created
and maintained in the following manner:
A. All funds on deposit and held for the pension or retirement benefits
of the Borough of Mechanicsburg police officers shall be transferred
to the Pension Fund created hereby subject to any liabilities which
may exist against such Fund.
B. The allocation by the Council of payments made by the Treasurer of
the Commonwealth from monies received from taxes paid upon premiums
by foreign casualty insurance companies and foreign fire insurance
companies pursuant to the General Municipal Pension System State Aid
Program.
C. Payments made by contributions of the police officers in accordance
with the Borough of Mechanicsburg Police Pension Plan as may be in
effect from time to time.
D. Payments made by other gifts, grants, devises or bequests made to
the fund.
E. Such other payments as may, from time to time, be made by the Council
to the Fund from the general revenue of the Borough.
2. All such payments received shall be deemed to be part of the Pension
Fund and shall not be applied to any other account or disbursed in
any manner except as provided herein.
3. Payments required under the Plan shall be a charge only upon the
Borough of Mechanicsburg Police Pension Fund and not upon other monies
or funds of the Borough.
[Ord. 965, 12/19/1989, § 4]
1. The amounts of the payments made by the Treasurer of the Commonwealth
from the monies received from taxes paid upon premiums by foreign
casualty insurance companies and foreign fire insurance companies,
which are determined by the Council to be deposited in the Pension
Fund, shall be used and applied as follows:
A. To pay expenses incurred for the administration of the Pension Fund
and the Pension Plan.
B. To reduce any unfunded liability, defined as the present value of
liability of the Fund on account of retirement benefits payable under
this Part to police officers for service prior to the date upon which
they first made contributions to the Plan, offset by the value of
any assets in the Fund; or after such liability has been funded.
C. To apply against the annual obligation of the Borough for future
service cost, defined as the amount of money required to be contributed
annually into the Fund on account of benefits payable under the Pension
Plan to police officers for service subsequent to the date of the
establishment of the Plan; or to the extent that the payment made
be in excess of such obligation.
D. To reduce member contributions.
2. Any other monies paid into the Fund shall be applied equally against
member and Borough obligations for future service cost.
[Ord. 965, 12/19/1989, § 5; as amended by Ord.
1090, 12/19/2006, § 2; and by Ord. 1093, 5/22/2007, § 2]
1. The Pension Fund shall be deposited with, managed and invested by
a corporate trustee, designated by the Council, which shall carry
out its responsibilities in accordance with the terms of the Trust
Agreement and further subject to such investment policy and guidance
as the Council shall, from time to time, give to the Trustee for the
investment of the Pension Fund assets.
2. Effective January 1, 2007, and continuing thereafter until terminated
by the Council, the Pension Fund shall be deposited with, managed
and invested pursuant to the accompanying joinder agreement and the terms of the Pennsylvania State Association
of Boroughs Master Retirement Trust. Hereafter, by resolution duly
adopted, the Council may amend any provisions of the Trust or joinder
agreement relating to the administration and management of the Plan.
Modifications to the Plan relating to contributions, vesting, member
and survivor benefits or other substantive matters shall be effected
only upon amendment of this Part by ordinance duly enacted by Council.
[Ord. 965, 12/19/1989, § 6]
The care, management, investment, administration, distribution
and disposal of the fund shall be vested in a committee to be known
as the Police Pension Fund Committee, hereinafter referred to as the
"Committee." The Committee shall consist of two members of the Council
of the Borough of Mechanicsburg, appointed annually by the said Council,
the Mayor of the Borough of Mechanicsburg, and two participants of
the Plan elected annually by the participants of the Plan. The members
of the Committee shall serve without compensation and the administration
of the Plan and the acts of the Committee shall be governed by the
pertinent provisions of the Act of May 26, 1956, P.L. (1955) 1804,
as amended, the provisions of this and any other applicable ordinance
of the Borough. Notwithstanding the above, the said Plan shall remain
under the direction and control of the Council of the Borough of Mechanicsburg.
[Ord. 965, 12/19/1989, § 7]
1. The Plan shall be administered by the Committee.
2. The Secretary-Treasurer of the Committee shall keep minutes of the
proceedings and all dates, records and documents pertaining to the
administration of the Plan. The Committee may employ and suitably
compensate such actuarial and consulting services and advisory, clerical
or other employees and attorneys as it may deem necessary for the
performance of its duties. The expenses of the administration of the
Plan shall be paid from the assets of the Fund.
3. The action of the Committee shall be determined by the vote or other
affirmative expression of its members.
4. The Committee shall make available to participants of the Plan, for
examination during business hours, such of its records as pertain
only to the participant involved. The Committee shall make its records
available to proper governmental officials during business hours and
members of the general public upon 24 hours' notice.
5. The Committee, on behalf of the participants of the Plan, shall enforce
the Plan in accordance with the terms of this Part and shall have
all powers necessary to accomplish that purpose including, but not
limited to, the following:
A. To determine all questions relating to the eligibility of employees
of becoming participants;
B. To compute and certify to the fiduciary the amount and kind of benefits
payable to participants;
C. To select any issuing company and annuity contract which, in the
opinion of the Committee, will best carry out the purposes of the
plan; and
D. To make and publish such rules and regulations for the administration
of the Plan as are not inconsistent with the terms of this Part.
6. The Borough shall supply full and timely information to the Committee
on all matters relating to the pay of all members of the Borough of
Mechanicsburg Police Pension Plan, their retirements, deaths or other
causes for termination of employment and such other pertinent data
as the Committee may require, and the Committee shall advise the fiduciary
with reasonable dispatch of such of the foregoing facts as may be
pertinent to the fiduciary's administration of the Fund.
[Ord. 965, 12/12/1989, § 8; as amended by Ord.
1115, 6/1/2010, § 1]
The plan shall cover all full-time police officers of the Borough
of Mechanicsburg, hereinafter referred to as "member." Every full-time
police officer employed by the Borough shall, upon the commencement
of his employment, be a member covered under this plan and entitled
to the benefits provided hereunder.
[Ord. 965, 12/19/1989, § 9; as amended by Ord.
1115, 6/1/2010, § 2]
1. The normal retirement date of a member shall be the day on which
the member has attained 55 years of age and has completed 25 years
of service; provided, however, effective January 1, 1992, the normal
retirement date of a member shall be the day on which the member has
attained 50 years of age and has completed 25 years of service.
3. Such members as are retired shall be subject to service, from time
to time, as police reserves, in case of riot, tumult or preservation
of the public peace until unfitted for such service, when they may
be finally discharged by reason of age or disability. While on duty
as a police reserve, they shall be paid as wages, in addition to their
regular pension, and such sum as the Council may in each case determine.
[Ord. 965, 12/19/1989, § 10; as amended by Ord.
1115, 6/1/2010, § 3]
The basic pension benefit shall be 50% of the monthly average
salary of such member during the last 36 months of employment. Such
monthly retirement benefit shall be payable during the lifetime of
the retiring police officer. Monthly average salary shall be determined
based on the provisions of the Police Pension Law known as Act 600,
Act of May 29, 1956, P.L. (1955) 1804, as amended, 53 P.S. § 761
et seq., as amended, and guidance or judicial interpretations issued
thereunder.
[Ord. 965, 12/19/1989, § 11; as amended by Ord.
1017, 5/16/2000, § 1; and by Ord. 1093, 5/22/2007, § 3]
In addition to the basic monthly pension benefit and upon the
approval of Borough Council, those members eligible may receive a
length of service increment benefit for each completed year of service
in excess of 25 years, not to exceed $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.
[Ord. 965, 12/19/1989, § 12; as amended by Ord.
1017, 5/16/2000, § 1; by Ord. 1024, 12/19/2000, § 1;
and by Ord. 1115, 6/1/2010, § 4]
Effective January 1, 1991, and for subsequent years, the Borough
of Mechanicsburg will hereby grant a cost of living increase for members
of the police force receiving retirement benefits. The cost of living
increase shall not exceed the percentage increase in the Consumer
Price Index from the year in which the police member last worked,
shall not cause the total police pension benefits to exceed 75% of
the salary for computing retirement benefits and shall not cause the
total cost of living increase to exceed 30%. No cost of living increase
shall be granted which would impair the actuarial soundness of the
Pension Fund.
A. Effective as of January 1, 2000, and subject to the limitations in Subsection
B below, if the assets of the Police Pension Fund exceed the present value of future benefits as 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," a cost of living increase for members of the police force
receiving retirement benefits for 20 or more years may be provided
in excess of the limits herein prescribed.
B. If the total benefits to be paid to a retired member from the Police
Pension Fund exceed $10,000 a year, then the Police Pension Fund shall
not pay benefits to a retired member in excess of 100% of the retired
member's average compensation as defined in § 415 of the
Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 415),
or in any successor statute.
[Ord. 965, 12/19/1989, § 13; as amended by Ord.
1017, 5/16/2000, § 1; by Ord. 1061, 8/17/2004, § 1;
and by Ord. 1115, 6/1/2010, § 5]
1. Upon the death of any member of the police force who was eligible for retirement at the time of his death and who did not die as a result of the performance of his duty, the surviving spouse, 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 such member 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, shall, during the lifetime of such 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 the pension calculated at the rate of 50% of the pension the member would have been receiving had such member been retired at the time of such member's death. Eligibility for pension benefits due to the death of an officer who dies as a result of the performance of his duty and payment of such benefits shall be governed by Subsection
2 below. Pension benefits payable to survivors as a result of the death of an officer who had retired prior to his death shall be payable according to Subsection
3 below.
2. All pension benefits payable because of the death of an officer who
dies as a result of the performance of his duty shall be governed
by, and payable according to, the provisions of the Emergency and
Law Enforcement Personnel Death Benefits Act, Act of June 24, 1976,
P.L. 424, No. 101, 53 P.S. § 891 et seq., as amended, inclusive
of amendments contained in Act 51 of 2009, and, to the extent not
thereby affected, by the Police Pension Law, Act of May 29, 1956,
P.L. (1955) 1804, as amended, 53 P.S. § 767 et seq., as
amended.
3. The surviving spouse of a former member of the police force who,
prior to April 18, 2002, retired on pension and dies subsequent to
retirement or who, after April 16, 2002, retires on pension and dies
subsequent to retirement, 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 such member 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 calculated
at 50% of the pension the member was receiving. Payments shall commence
as of the first day of the month following the member's date of death.
4. For purposes of establishing eligibility to receive a survivor's
benefit of any kind, the phrase "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.
[Ord. 965, 12/19/1989, § 14; as amended by Ord.
1017, 5/16/2000, § 1; and by Ord. 1061, 8/17/2004, § 2]
In order to be eligible to receive a disability pension benefit,
an officer must establish that he or she sustained a permanent injury
incurred in service. Officers who sustain such permanent work-related
disabilities shall receive a monthly disability pension equal to 75%
of the officer's average monthly salary during the last 36 months
of employment at the time the disability was incurred, provided that
any officer 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 disability benefits offset or reduced by the amount
of such benefits.
[Ord. 965, 12/19/1989; as added by Ord. 1017, 5/16/2000,
§ 2]
The early retirement benefit shall be provided to a member of
the police force with 20 or more years of 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 the governing body of the municipality. The early retirement
benefit shall become effective as of the date the application is filed
with the governing body 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:
A. A partial superannuation retirement benefit shall be determined by
applying the percentage that the member's years of service bear to
the years of service that the member would have rendered had the member
continued to be employed until his superannuation retirement date
to the gross pension amount calculated using the monthly average salary
during the appropriate period prior to his termination of employment.
B. 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
member 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."
[Ord. 965, 12/19/1989, § 15; as amended by Ord.
989, 3/21/1995, § 15]
1. Any full-time police officer employed by the Borough who has been
a regularly appointed employee for a period of at least six months
and who shall thereafter 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 he returns to his employment within six months after his
separation from the service.
2. Any full-time police officer employed by the Borough who was not
employed by the Borough prior to such military service may purchase
full service credit for each year of military service or fraction
thereof, not to exceed five years. 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
police pension plans as certified by the Public Employee Retirement
Study Commission, but not to exceed 10%, to 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 into Borough service to the date of payment.
3. Any full-time member of the Borough police force shall be eligible to receive service credit for intervening and nonintervening military service as provided in Subsections
1 and
2; provided that he/she 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 forces which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Ch. 67 (relating to retired pay for nonregular service).
[Ord. 965, 12/19/1989, § 16]
All members of the Plan shall pay into the Fund monthly at least
5% but not more than 8.0% of total compensation.
[Ord. 965, 12/19/1989, § 17]
If an actuarial study shows that the condition of the Fund is
such that payments into the fund by members may be reduced below said
minimum percentage or eliminated, and that if such payments are reduced
or eliminated, contributions from the General Fund of the Borough
will not be required to keep the Fund actuarially sound, the Council
may, by ordinance or resolution, on an annual basis, reduce or eliminate
payments into the Fund by members.
[Ord. 965, 12/19/1989, § 18]
If a member before reaching his normal retirement date and after
having completed 12 years of total service for any reason ceases to
be a police officer of the Borough, he shall be entitled to vest his
retirement benefits until his normal retirement date by filing with
the Committee a written notice of his intention to vest, within 90
days of the date of his termination. Upon reaching the date on which
he would have been eligible for retirement if he had continued to
be employed as a full-time police officer, he shall be paid a partial
retirement benefit determined by applying the percentage his years
of service bears to the years of service which he would have been
rendered had he continued to work until his normal retirement date
to gross pension, which he would have earned had he continued as a
full-time police officer to his normal retirement date, using, however,
the monthly average salary during the appropriate period prior to
his termination of employment.
[Ord. 965, 12/19/1989, § 19; as amended by Ord.
1061, 8/17/2004, § 3]
1. Upon termination of full-time employment before completion of vesting,
a refund shall be made of any monies paid by such police officer,
with interest at the rate of 4% per annum.
2. The surviving spouse of a member of the police force who dies before his pension has vested, or if no spouse survives or if he or she survives and subsequently dies, the member's child or children under the age of 18 years, or if attending college (as defined in §
1-713, Subsection
3, of this Part), under or attaining the age of 23 years, shall be entitled to receive payment 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 purpose.
[Ord. 965, 12/19/1989, § 20]
All payments under the Plan shall be, to the fullest extent
permitted by law, free and clear of any debts, contracts, engagements,
anticipations or liability to levy, attachment, execution or sequestration
against the recipient, and shall not be subject to sale, assignment,
transfer, claim, judgment or bankruptcy proceedings against the recipient
of such payments, whether voluntary or involuntary.
[Ord. 965, 12/19/1989, § 21]
Any member of the Plan shall have the right to:
A. Inquire of the Committee as to his or her status or condition in
the Plan, including prospective benefits to which such member may
be entitled in the future;
B. To examine records of the Committee pertaining to his or her pension
records;
C. To appear personally before the Committee with or without counsel
and to be heard on any matter pertaining to his or her rights under
the Plan.
[Ord. 965, 12/19/1989, § 22]
The Plan and Fund established by this Part may be discontinued,
modified, alternated, terminated or repealed according to law, by
ordinance or resolution.
[Ord. 965, 12/19/1989, § 23]
The provision of this Part are severable, and if any of its
provisions shall be held to be illegal, invalid or unconstitutional,
the decisions of the court so holding shall not affect or impair any
of the remaining provisions of this Part. It is hereby declared to
be the intent of the Borough Council of the Borough of Mechanicsburg
that this Part would have been adopted if such illegal, invalid or
unconstitutional provision or provisions had not been included herein.
[Ord. 965, 12/19/1989, § 24]
The terms and conditions of this Part shall become effective
as of January 1, 1990.