Oil City, PA Article II Police Pension Fund

[Adopted 7-22-1968 by Ord. No. 2197 (Ch. 41, Art. II, of the 1986 Code)]

§ 55-8 Fund established.

A Police Pension and Retirement Fund shall be and the same is hereby established by the City of Oil City, which shall be known and designated as the "Police Pension Fund" and shall hereinafter be referred to as the "fund."

§ 55-9 Creation of Police Pension Fund Board.

The direction of the fund shall be and is hereby committed, subject to the regulations herein contained and such other regulations as Council may by ordinance hereafter, from time to time, prescribe, to a board which is hereby created and which shall be known as the "Police Pension Fund Board" and shall hereinafter be referred to as the "Board."

§ 55-10 Members of Board; terms of office.

A. The Board shall consist of seven members, viz.:

(1) The Mayor of the City of Oil City, who shall be ex officio Chairman thereof and whose membership on said Board shall be concurrent with his term of office as Mayor.

(2) The City Manager, whose membership on said Board shall be concurrent with his term of office as City Manager.

[Amended 3-26-1979 by Ord. No. 2368]

(3) A member of City Council appointed by the Mayor, who shall be ex officio Treasurer thereof and whose membership on said Board shall be concurrent with his term of office as Councilman.

[Amended 3-26-1979 by Ord. No. 2368]

(4) The City Controller, whose membership on said Board shall be concurrent with his term of office as City Controller.

(5) Three duly appointed, confirmed and active members of the police force of the City of Oil City elected in a manner approved by Council by and from the members of the Police Pension Fund Association, hereinafter created, who are entitled to participate in the fund created hereby, one of whom shall serve for one year, one for two years and one for three years, and whose successors shall be elected for a term of three years. A vacancy occurring during a term shall be filled for the unexpired term by the election of a successor in the same manner as his predecessor.

B. The Council shall also, by resolution, appoint one or more of its members, as the case may be, to serve upon the Pension Fund Board for such periods of time as Council, by said resolution, shall so direct, not to exceed, however, said Councilman's term of office.

[Added 6-12-1972 by Ord. No. 2263]

§ 55-11 Compensation; reimbursement of expenses.

The members of the Board shall serve without compensation and shall be reimbursed from the fund for any necessary expenditures, and no member shall suffer loss of salary or wages through serving on the Board.

§ 55-12 Powers and duties of Board.

The Board may from time to time, subject to the limitations of this article and of law:

A. Adopt rules and regulations for the administration of the fund and the transaction of its business not inconsistent with the provisions of this article or any supplement or amendment thereto duly enacted. All such rules and regulations shall, however, be subject to the approval of Council, and Council may from time to time, by ordinance, alter, modify, change or repeal such rules and regulations and establish new rules and regulations for the administration of the fund by the Board and the transaction of its business.

B. Appoint a Secretary and such medical, clerical and other employees as may be necessary.

C. Determine and fix the compensation of all persons employed by the Board.

D. Care for, manage, invest and dispose of (as part of the fund) all money or property, real, personal or mixed, taken by the City of Oil City by gift, grant, devise or bequest in trust for the benefit of such pension fund, subject to the provisions of this article and future regulations by Council, and subject to such directions not inconsistent herewith as the donors of such funds and property may prescribe.

§ 55-13 Meetings, records and reports of Board.

The Board shall, subject to the limitations of this article and of law:

A. Hold a meeting at least once annually at a time and place selected by the Board and prepare or cause to be prepared an annual report stating the conditions of the investments of the fund and evidencing the receipts, which report shall be made a part of the record of said proceedings, and a copy of which shall be filed with the Council of the City of Oil City.

[Amended 3-26-1979 by Ord. No. 2368]

B. Hold such special meetings as the efficient discharge of its duties may require, and the Chairman may, upon the request of three members of the Board, in writing, call a special meeting of the Board on 24 hours' notice to each member, which notice shall state whether such meeting is to be convened for general or special business; such notice may be waived by the unanimous consent of the members.

C. At the annual meeting, or as soon thereafter as is practicable, designate a depository or depositories for the fund, which designation shall be valid for the period of one year or until such time as another is designated by similar action, and the Treasurer of the Board shall, upon the designation of the depository, immediately deposit all moneys in the fund therein in the name of the fund.

D. Keep all permanent records and accounts and perform all duties as shall be necessary for the efficient execution of this article.

E. Furnish to Council such financial and other reports as it may, from time to time, request.

§ 55-14 Creation of Police Pension Fund Association.

A. An association is hereby constituted and created which shall be known and designated as the "Police Pension Fund Association," herein referred to as the "Association."

B. The membership of the Association shall consist of each regular full-time member of the police force now employed by the City and such persons hereafter employed as regular full-time members of the police force.

[Amended 10-13-2011 by Ord. No. 2804[1]^,[2]]

[1] Editor's Note: This ordinance also repealed original Subsection C, regarding the Police Pension Plan, which immediately followed this Subsection.

[2] Editor's Note: This ordinance also provides that: Any active member of the police force who had been precluded from membership in the Association as a result of the prior Subsection B or C shall immediately become a member of the Association upon payment of the contributions which would otherwise have been due and owing under the terms of the Police Pension Plan if said member contributions had not otherwise previously been made.

C. Each member of the police force hereafter employed shall, at the time of admission to membership in the Association, contribute to the fund in accordance with this article from the date of his or her employment as a member of the police force.

§ 55-15 Powers and duties of Association.

The members of the Association shall, subject to the limitations of this article and of law:

A. Adopt rules and regulations for the administration and transaction of its business.

B. Elect officers in accordance with established rules and regulations to represent the Association.

C. Certify to the Board annually a list of the members of the Association in good standing and the amount of salaries and wages paid to each member as a member of the police force of the City, together with a list of members of the Association who were, during said year, dismissed or who resigned or terminated their service and the date thereof.

D. Furnish to the Board and Council, upon request, such information relative to the subject of this article as the Board or Council shall require.

§ 55-16 Expulsion from Association.

A. Expulsion by members.

(1) A members of the Association may be expelled from membership and deprived of his right of participation in the fund by a 2/3 vote of the members of the Association for one or more of the following causes:

(a) Conviction of a crime or misdemeanor under the laws of the United States or any state or commonwealth.

(b) Becoming a habitual drunkard.

(c) Failing to comply with the provisions of this article or any supplements or amendments thereto or any general regulations adopted pursuant hereto relating to the management of the fund or the transaction of the business of the Association.

(2) No member of the Association shall be expelled pursuant to this section nor deprived of his right to participate in the fund without due notice and full hearing, at which he shall be afforded the opportunity to present witnesses and be represented by counsel if he so desires. In every such case, a written complaint shall be filed with the Association by a member of the Association or some officer of the City of Oil City and, promptly thereafter, a day for hearing shall be fixed by the President of the Association, notice of which hearing and of the filing of the complaint shall be given to each member of the Board and each member of the Association, including the person or persons complained of, by mail addressed to each of their respective post office addresses at least five days prior to the time fixed for hearing.

B. Expulsion by Board.

(1) A member of the Association may likewise be deprived of his right of participation in the fund by a majority vote decision of the members of the Board for one or more of the following causes:

(a) Conviction of a crime or misdemeanor under the laws of the United States or commonwealth.

(b) Becoming a habitual drunkard.

(c) Failing to comply with the provisions of this article or any supplements or amendments thereto or any general regulations adopted pursuant hereto relating to the management of the fund or the transaction of the business of the Association.

(2) No member of the Association shall be expelled pursuant to this section nor deprived of his right to participate in the fund without due notice and full hearing, at which he shall be afforded the opportunity to present witnesses and be represented by counsel if he so desires. In every such case, a written complaint shall be filed with the Board by a member of the Association or a taxpayer of the City of Oil City and, promptly thereafter, a day for hearing shall be fixed by the President of the Board, notice of which hearing and of the filing of the complaint shall be given to each member of the Board and each member of the Association, including the person or persons complained of, by mail addressed to each of their respective post office addresses at least five days prior to the time fixed for hearing. All such hearings shall be open to the public.

§ 55-17 City contributions to fund.

The City of Oil City shall annually, on or before the first day of June of each year, appropriate and pay into the fund a sum of money sufficient to meet the requirements of and to maintain such police fund, which sum in no year shall be less than 1/2 of 1% of all City taxes levied by the City, other than taxes levied to pay interest on or extinguish the debt of the City or any part thereof.

§ 55-18 Association member contributions to fund.

A. Each member of the Association shall contribute to the fund monthly, until retirement, a sum equal to 3% of his monthly wage or salary.

B. The payment of the monthly sum or contribution herein provided for by members of the Association shall cease and determine at the time the member receives the pension hereafter provided for.

C. Each member of the police force of the City of Oil City, by applying for membership in the Association, shall authorize the City to deduct the payments to be made under this section semimonthly from his or her monthly wage or salary and to pay the amount so deducted for and on behalf of such member to the Board herein created for said fund.

D. Should any member of the Association become partially or totally disabled in the course of his employment as an active member of the Police Department of the City of Oil City and receive workers' compensation as a result of the injuries so sustained and no wages or salary from the City of Oil City, no deduction from such payments of compensation shall be made from said member during the period during which he receives only workers' compensation payments, nor shall any contributions by such member to the fund be required during such period.

§ 55-19 Payments to be made from fund moneys.

Payments of pensions or allowances under this article shall be made solely out of the moneys and property in the Police Pension Fund and shall not be a charge on any other fund in the treasury of the City or under its control.

§ 55-20 Maintenance of fund moneys required.

A. There shall at all times be maintained in the fund property or moneys in a sum sufficient to repay in full to all members of the Police Department of the City of Oil City then contributing toward the fund and entitled to participate therein, or their estates, as herein provided, the amount of their total contributions out of salary or wages into the fund, and no person shall be entitled to payments of pension except out of property or moneys in excess of said sum.

B. If at any time the excess over the amount required to repay to the then members of the fund, or their estates, the amount of their contributions into the fund be insufficient to pay in full all pensions which may then be due and payable, such excess shall be apportioned among all of the members then entitled to pension in accordance with the amount of pension due them respectively, and during any such period or periods the amount of pension payable to such persons shall be abated proportionately.

§ 55-21 Benefits.

A. Retirement.

(1) Each member of the Association at any time after he or she shall have served for 20 years as an active member of the police force of the City of Oil City shall, upon application, be retired from service; and after said date, the Board shall, subject to the limitations and restrictions herein contained, pay said member from the fund during the remainder of his or her natural life, in monthly installments, an annual pension in a sum equal to 50% of the annual pay of such member, computed at the monthly rate of such member at the date of his retirement or at the highest average annual salary which the member received during any five years of service preceding the date of retirement, whichever shall be the higher; provided, however, that except as to service increments the payments so made shall not in any case exceed in any one year 1/2 of the annual pay of such member computed at such monthly or average annual rate, whichever is the higher.

[Amended 3-26-1979 by Ord. No. 2368; 3-28-1994 by Ord. No. 2570; 1-26-1998 by Ord. No. 2624]

(2) Each member retired herein shall be subject to service from time to time as a police reserve until unfitted for such service, when he may be finally retired by reason of age or disability.

(3) Each member of the Association who is a member of the Association at the time he attains the age of 70 years and shall have served for 20 years as an active member of the police force of the City of Oil City shall, upon attaining the age of 70 years, be retired from service and shall, subject to the limitations and restrictions herein contained, receive from the fund during the remainder of his or her natural life in monthly installments an annual pension in an amount equal to 50% of the annual pay of such member, computed at the monthly rate of such member at the date of his retirement or at the highest average annual salary which the member received during any five years of service preceding the date of retirement, whichever shall be the higher; provided, however, that except as to service increments the payments so made shall not in any case exceed in any one year 1/2 the annual pay of such member computed at such monthly or average annual rate, whichever is the higher.

[Amended 3-26-1979 by Ord. No. 2368; 3-28-1994 by Ord. No. 2570]

(4) No person shall be entitled to the payments of pension under this section at any time or during any period that the principal of the fund, and the accumulated interest thereon, shall be insufficient to repay in full to all the members of the Police Department of the City of Oil City then contributing toward the fund and entitled to participate therein, or their estates, as herein provided, the amount of their total contributions out of salary or wages into the fund.

(5) If at any time the excess of said fund over and above that required to repay contributions to the members of the Police Department of the City of Oil City then contributing toward the fund and entitled to participate therein, or their estates, is insufficient to pay in full all pensions which may then be due and payable, such excess shall be apportioned among all of the persons then entitled to pensions in proportion to the amount of pension due them respectively, and all pensions then due and payable shall be abated proportionately.

B. Service increment. In addition to the retirement allowance hereinabove provided for, and notwithstanding the limitations therein placed upon such retirement allowances and upon contributions, every contributor who shall become entitled to the retirement allowance shall also be entitled to the payment of a service increment in accordance with and subject to the conditions hereinafter set forth:

(1) Service increment shall be the sum obtained by computing the number of whole years after having served the minimum required by this article during which a contributor has been employed by the City and paid out of the City treasury and multiplying said number of years so computed by an amount equal to 1/40 of the retirement allowance which has become payable to such contributor in accordance with the provisions of this article. In computing the service increment, no employment after the contributor has reached the age of 65 years shall be included, and no service increment shall be paid on excess of $100 per month.

(2) Each contributor shall, in the future and retroactively to August 7, 1967, or to the date of the commencement of his employment as a member of the Police Department, whichever is later, pay into the retirement fund a monthly sum in addition to his or her retirement contribution, which shall be equal to 1/2 of 1% of his or her salary, provided that such payment shall not exceed the sum of $1 per month, and provided that such service increment contribution shall not be paid after a contributor has reached the age of 65 years.

(3) Service increment contributions shall be paid at the same time and in the same manner as retirement contributions and may be withdrawn in full, without interest, by persons who leave the employment of the City, subject to the same conditions by which retirement contributions may be withdrawn, or by persons who retire before becoming entitled to any service increment.

C. Widows.

(1) In addition to the payments authorized to be made hereunder and notwithstanding the limitation placed thereon, the widow of a member of the Association, or if she survives and subsequently dies or remarries, then the child or children under the age of 18 of a member of the Association who has less than 10 years of service and who dies or is killed on or after the effective date of this article shall, during her lifetime or so long as she does not remarry in the case of a widow or until reaching the age of 18 years in the case of a child or children (in the case of children said pension shall be distributed equally among those surviving and qualifying), be entitled to receive a pension of 25% of his annual compensation.

[Amended 5-7-1973 by Ord. No. 2280]

(2) The widow of a member of the Association or a member who retires on pension, or if no widow survives or if she survives and subsequently dies or remarries, then the child or children under the age of 18 of a member of the Association who has 10 full years of service or more or a member who retires on pension who dies or is killed on or after the effective date of this article shall, during her lifetime or so long as she does not remarry in the case of a widow or until reaching the age of 18 years in the case of a child or children (in the case of children, said pension to be distributed equally among those surviving and qualifying), be entitled to receive a pension of 50% of his annual compensation in the case of a member who dies or is killed while in the service or the pension the member was receiving in case of member retired on pension.

[Amended 5-7-1973 by Ord. No. 2280]

(3) Each contributor shall, in the future and retroactively to August 7, 1967, or to the date of the commencement of his employment as a member of the Police Department, whichever is later, pay into the retirement fund a monthly sum in addition to his or her retirement contribution and service increment contribution which shall be equal to 1% of his salary.

(4) Widow's pension contribution shall be paid at the same time and in the same manner as retirement contributions and may be withdrawn in full, without interest, by persons who leave the employment of the City before they become entitled to a pension hereunder, and in the event that the member is killed in the service, leaving no widow to survive him and no child or children eligible to receive payments, the total of the widow's pension contributions paid into the fund by said member shall be paid to the estate of the deceased member.

D. Optional military time.

[Added 11-30-1988 by Ord. No. 2481; amended 1-26-1998 by Ord. No. 2624; 8-14-2014 by Ord. No. 2832]

(1) A member of the Association is hereby granted an option which must be exercised in writing within six months after the member has successfully completed his or her probationary employment period, attaining status as a full-time employee and has become a member of the Association.

The aforementioned request will be made in writing to send to the Police Pension Fund Board, in care of the City Manager of the City of Oil City, 21 Seneca Street, Oil City, PA 16301, requesting a computation of the required contribution. The amount of the required contribution shall then be computed upon the evidence submitted with said request, evidencing full-time active duty service in the United States Armed Forces, rendered prior to the member's employment with the City of Oil City Police Department. Any current member who has not previously utilized the option to purchase pension credit for military service will have 12 months from the date of passage of this article to invoke his or her rights under this section.

After being sent a notice of the required amount of the contribution to effect purchase, a member of the Association must pay the full amount of the required contribution to effectively conclude a purchase of the additional service time for the purpose of computing pension benefits.

The required contribution shall be computed by computing the sum of the amount of a patrolman's contribution added to the amount of the City's contribution during the years the full-time active duty military service occurred.

For the purposes of retirement from service, a member of the Association who has made the required contribution or purchase to the pension fund shall thereafter be entitled to add his or her years of eligible service with the City as a member of the police force, the number of years of military service for which said required contribution of purchase has been made, not to exceed three years of such military service. The member shall be entitled to use any military time purchased hereunder as credit towards his or her minimum service obligation as an active member of the police force with a combined minimum service of 20 years, for the purposes of retirement under City Code, Police Pension, § 55-21D(1).

(2) The right or option hereby granted shall be personal to a member of the Association and may not be elected or effected by a payment or contribution by any person other than the member of the Association electing to effect said purchase as provided under this section of this article.

E. Limited vested benefit.

[Added 4-25-1994 by Ord. No. 2571]

(1) Each member of the association may, before completing the minimum age and minimum period of continuous service requirements but after having completed 12 years of full-time service, be entitled to vest his or her retirement benefits, subject to the following conditions:

(a) The member must file with the Board a written notice of his or her intention to vest;

(b) The member must include in the notice the date the member intends to terminate his or her service as a full-time police officer;

(c) The termination date shall be at least 30 days later than the date of notice to vest;

(d) The member must be in good standing with the Department on the date of notice to vest; and

(e) The Board shall indicate on the notice to vest the rate of the monthly pay of the member as of the date of said notice to vest or the highest average annual salary which the member received during any five years of service preceding said date, whichever is higher.

(2) Upon reaching the date which would have been the member's retirement date had the member continued his or her full-time employment with the Department, the member shall notify the Board, in writing, that the member desires to collect his or her pension. The amount of retirement benefits the member is entitled to receive under this section shall be computed as follows:

(a) The initial determination of the member's base retirement benefits shall be computed on the salary indicated on the notice to vest; and

(b) The portion of the base retirement benefits due the member shall be determined by applying to the base amount the percentage that his or her years of service actually rendered bears to the years of service which would have been rendered had the member continued to be employed by the Department until his or her minimum retirement date.

F. Cost-of-living adjustments (COLA).

[Added 9-25-2000 by Ord. No. 2653; amended 2-11-2002 by Ord. No. 2679]

(1) Monthly benefit increase. Members who, as of January 1, 1999, have been retired at least five years, but less than 10 years, are awarded an increase in their current monthly benefit equal to $25 per month; members who, as of January 1, 1999, have been retired 10 years but less than 15 years are awarded an increase in their current monthly benefit equal to $50 per month; members who, as of January 1, 1999, have been retired 15 years, but less than 20 years, are awarded an increase in their current monthly benefit equal to $75 per month; members who, as of January 1, 1999, have been retired 20 years, but less than 30 years, are awarded an increase in their current monthly benefit equal to $150 per month; and members who, as of January 1, 1999, have been retired 30 years or more are awarded an increase in their current monthly benefit equal to $300 per month. These cost-of-living increases shall be offset by any other COLA(s) awarded to these retirees either by the Commonwealth of Pennsylvania or any other entity, including the City of Oil City.

(2) Annual cost-of-living adjustments. An annual cost-of-living adjustment (COLA) shall be made to all members who have retired after a minimum of 20 years of active service, excluding members that are retired on a disability pension, in which case the minimum years of active service shall not apply. That adjustment shall be equal to and upon the release of the percentage increase in the United States Department of Labor's CPI for the preceding year, with a maximum cap on such increase of 4.0% per year. There shall be an additional restriction that no increase shall allow the pension amount of any retiree to exceed 1/2 of the current salary being paid to a police officer of the highest pay grade. There shall also be a cap on the cumulative increases of the COLA equal to 50% of the original monthly benefit of each retiree. In the event that the minimum municipal obligation (MMO) calculation as required under Pennsylvania Act 205 of 1984 as prepared by the City's Chief Administrative Officer and accepted by City Council indicates that a contribution to the Police Pension Plan is required after application of member contributions, there will be a suspension of the COLA increases until the subsequent MMO calculation indicates that no contribution is required. If a suspension of the COLA increases is required, such suspension shall be effective beginning January 1 of the year following the preparation and acceptance of the MMO calculation. Likewise, COLA increases shall again become effective on January 1 of the year following the preparation and acceptance of the MMO calculation that indicates that no contribution is required. In the event that a COLA suspension is necessary, the Police Pension Board shall be notified in writing of that circumstance. All costs associated with the calculation and administration of this COLA provision will be borne by the fund.

[Amended 4-22-2002 by Ord. No. 2682]

§ 55-22 Disability pension.

[Amended 7-12-1971 by Ord. No. 2249; 5-7-1973 by Ord. No. 2280; 3-28-1994 by Ord. No. 2570]

A. Definition. As used in this section, "total disability" shall mean permanent mental or physical impairment which renders the police officer unable to perform his duties.

B. Work-related disability benefits.

(1) Any police officer who dies or becomes totally disabled due to injuries sustained in the line of duty shall be deemed to be fully vested in the Police Pension Fund, regardless of the annual number of years of credited service and shall be eligible for immediate retirement benefits.

(2) Claims under this section shall be decided by the governing body of the City. Proof of disability shall be competent medical evidence provided by the claimant. The governing body of the City may at any time have the claimant examined by its own physician.

(3) Claims under this section may be brought as the regulations of the City Council prescribe. Hearings and appeals shall be as provided in Title 2 of the Pennsylvania Consolidated Statutes (relating to administrative law and procedure).

(4) The Pension Fund shall be subrogated to the right of the claimant to the extent of any payments made under the Act of June 2, 1915 (P.L. 736, No. 338), known as the "Pennsylvania Workmen's Compensation Act."[1]

[1] Editor's Note: See now the Workers' Compensation Reform Act of 1997, Title 77 of the Pennsylvania Statutes Annotated.

C. Non-work-related disability benefits. Any police officer who has less than 10 years of service and who dies or is totally disabled due to injuries or mental incapacities not in the line of duty and is unable to perform the duties of a police officer shall be entitled to a pension of 25% of his annual compensation. For death or injuries received after 10 years of service, the compensation shall be 50% of his annual compensation.

D. Payment of benefits. The disability pension shall be payable to the police officer during his lifetime, and if he shall die, the pension payment that he is receiving shall be continued to be paid to his spouse if such person survives or, if such person subsequently dies or remarries, then the child or children under the age of 18 years of the police officer.

E. Proof of total and permanent disability shall consist of the sworn statements of three practicing physicians of the City of Oil City, designated by the Board to examine the member, to the effect that such member is in a permanent condition of health which will wholly and permanently disable him from performing the duties of a police officer, and each member making application for such pension shall submit to examination by three physicians designated by the Board before consideration shall be given to his application by the Board. The Board may, in its discretion, require proof in addition to the sworn statements of the three physicians designated by it.

§ 55-23 Refunds.

A. If a member of the Association contributing to the fund shall be dismissed from the police force of the City of Oil City, or for any cause cease to be a member of the force before he or she becomes entitled to a pension hereunder, his or her membership in the Association and his or her right to pension shall forthwith cease, but in such event the total amount of the contributions paid into the fund by such person shall, upon request, be refunded to him or her in full without interest.

B. If such person received a refund, as herein provided, and shall later reenter the employ of the City as a member of the police force, such member may return to the pension fund the amount withdrawn, in which event the period of 20 years herein provided for shall be computed by including the period during which he or she was previously employed as a member of the police force, otherwise the period shall be computed from and after the date of reemployment.

C. In the event of the death of a member of the Association before he or she becomes entitled to the pension herein provided for, the total of the contributions paid into the fund by said member shall be paid to the estate of said deceased employee without interest.

D. In the event of the death of a member of the Association while receiving a pension hereunder, but before the amount of the pension received shall equal the total amount of contributions paid into the fund, the difference between the amount received as pension and the amount contributed to the fund by the deceased member shall be paid to the estate of said deceased employee.

§ 55-24 Nontransferability of pensions.

The pensions herein provided for shall not be subject to attachment or execution and shall be payable only to the beneficiary designated and shall not be subject to assignment or transfer.

§ 55-25 City employees not to qualify.

No person receiving a pension hereunder shall be employed by the City in any capacity, except in an office elected by popular vote, and during the term of said office, said person shall not be entitled to said pension.

§ 55-26 Manner of payment.

No payments shall be made from the funds entrusted to the Board except by check or order signed by the Treasurer and Secretary and countersigned by the Mayor as President of said Board.

§ 55-27 Bond required for Treasurer.

The Treasurer shall give surety bond approved by the Board in such sum as the Board may determine for the faithful performance of his duties. The premium for such bond shall be paid by the Board out of the funds entrusted to it.

§ 55-28 Powers and duties of Treasurer.

It shall be the duty of the Treasurer to keep account of all moneys coming into his hands belonging to the Board and all disbursements of the same. All moneys received by the Treasurer shall forthwith be deposited in the depository chosen by said Board in the name of the Police Pension Fund.

§ 55-29 Audits.

The Board, or someone employed by it, shall at least once each year audit the accounts of the Treasurer, and a written report shall be submitted to the Board and to the Council of the City of Oil City of its financial condition and of the amounts received and paid out during the period audited and of all investments made by the Board and the condition of such investments.

§ 55-30 Disposition of moneys.

A. A sum sufficient to meet current requirements shall be kept on deposit by the Board at the current depository. The balance of the moneys coming into the possession of the Board shall be, as soon as may be convenient, invested by the Board or delivered to such officers of the City or citizens thereof or corporations located therein as Council may direct for the custody and management thereof and investment in:

(1) The bonds or obligations of the United States or the United States Treasury or those for the payment of principal and interest on which the faith and credit of the United States is pledged.

(2) Bonds or other interest-bearing obligations of the Commonwealth of Pennsylvania or those for the payment of principal and interest on which the faith and credit of the commonwealth is pledged.

(3) Bonds or interest-bearing obligations of any county, city, borough, township or school district of the Commonwealth of Pennsylvania or those for the payment of which the faith and credit of such political subdivision is pledged, provided that, at the date of the investment of such bonds or other interest-bearing obligations, such political subdivision is not in default in payment of principal and interest owed by it on any part of its bonded indebtedness.

(4) Mortgages of one or more individuals or corporations securing bonds or other obligations, subject to the following provisions:

(a) At the time of the recording of any such mortgage in the office of the recorder of deeds of the proper county, or at the date of any extension or renewal thereof, such mortgage shall meet the following requirements:

[1] Such mortgage shall be or become a first lien upon improved real estate within the City of Oil City, Venango County, Pennsylvania, prior to all other liens, except taxes previously levied or assessed but not then payable, and except taxes then due payable, or delinquent, for the payment of which taxes provision has been made in the mortgage settlement.

[2] The face amount of the bonds or other obligations secured by such mortgage shall not exceed 2/3 of the estimated fair value of such real estate, as determined by the Board or a committee by the Board appointed to view and value such real estate.

[3] All such mortgages shall be taken and held in the name of the Police Pension Fund Board of Oil City, Pennsylvania.

[4] Such mortgage shall be payable not more than five years after the date thereof or the date of any renewal or extension thereof.

[5] All satisfactions or mortgages or similar documents on payment in full thereof shall be executed on behalf of the Board by the President and attested by the Secretary or Treasurer.

(5) Trust certificates for a fractional interest or interest in a mortgage or in a pool or fund containing mortgages, real estate bonds, railroad obligations, obligations of public utility corporations, obligations of telephone companies, which are legal investments for fiduciaries under the laws of the Commonwealth of Pennsylvania now in force, or which may hereafter be enacted.

(6) Any other investment which is legal for trust funds.

(7) Street or sewer improvement bonds of the City of Oil City, Pennsylvania, secured by liens on real estate and not pledging the general faith and credit of the City; provided, however, that not more than 10% of the fund, including interest accumulations in addition thereto, shall at any time be invested in any one issue of sewer or street bonds of the City of Oil City, payable out of or secured by special assessments made for such improvements.

B. The Board may purchase certificates of deposit in any national bank or trust company organized under the laws of the Commonwealth of Pennsylvania in the City of Oil City, or deposit the funds in its possession in a savings account in the name of the Police Pension Fund Board in any national bank or trust company organized under the laws of the Commonwealth of Pennsylvania in the City of Oil City.