[HISTORY: Adopted by the Council of the Borough of Sharon
Hill as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Life insurance for civil employees — See Ch. 27.
[Adopted 4-8-1958 by Ord. No. 794 (Ch. 15, Art. I, of the
1972 Code)]
A police pension fund for the police force of the Borough of
Sharon Hill, established under the provisions of Act No. 600 of the
General Assembly of the Commonwealth of Pennsylvania, approved May
29, 1956, Session of 1955, P.L. 1804,[1] shall be known as the "Police Pension Fund." Such fund
shall be under the direction of Borough Council and applied under
such regulations as it may prescribe or designate by resolution from
time to time.
[1]
Editor's Note: See 53 P.S. § 761 et seq.
The existing Police Pension Fund established under resolution
dated November 12, 1945 by the Borough of Sharon Hill is hereby transferred
to the fund established under the provisions of this article.
The Police Pension Fund shall be maintained:
A.
By a charge against each member of the police force.
B.
By annual contributions made by the Borough.
C.
By payments made by the State Treasurer to the Municipal Treasurer
from the moneys received from taxes paid upon premiums by foreign
casualty insurance companies for purposes of pension retirement.
[Amended 12-28-1972 by Ord. No. 1019; 6-23-1994 by Ord. No. 1237]
The trustee, Southeast National Bank, is changed to First Fidelity
Bank or any other established institution as may be designated from
time to time by Borough Council.
A Police Pension Committee is hereby established, which shall
consist of four members, all of whom shall be appointed by Sharon
Hill Borough Council. They shall consist of one member selected from
Borough Council, one representative recommended by the Police Department,
one citizen of the Borough of Sharon Hill, and the Borough Treasurer.
The Committee members shall serve without compensation for a period
of three years or until their successors are duly designated and appointed
by Borough Council.
[Amended 6-23-1994 by Ord. No. 1237]
The actuary, Huggins & Company, is changed to Hay/Huggins
Company, Inc., or any other established institution as may be designated
from time to time by Borough Council.
A written police pension plan shall be adopted by resolution.
This shall implement this article and shall incorporate therein all
the requirements of Act No. 600, Session of 1955, P.L. 1804, and also
include the continuance, for members of the fund created under resolution
dated November 12, 1945, of their vested rights acquired in that fund.
The Police Pension Committee, with the aid of the actuary and/or
the trustee, when necessary, shall make the necessary determinations
as to what contributions are to be made to the fund and also what
payments are to be made out of the fund in accordance with the pension
plan and the Act of Assembly No. 600, Session of 1955, P.L. 1804,
and written instructions as to such payments shall be given by the
Police Pension Committee to the persons affected.
[Added 3-27-2014 by Ord. No. 1364]
A.
Title. This section shall be known as the "Sharon Hill Police Act
44 Retirement Program."
B.
ACT 44 PROGRAM
ACT 44 PROGRAM ACCOUNT
BOROUGH
FUND or PLAN
PARTICIPANT
POLICE OFFICERS
Definitions. When used in this section, the following words shall
have the meanings indicated:
The Act 44 Deferred Retirement Option Program referred to
in the collective bargaining agreement between Delaware County Lodge
No. 27 of the Fraternal Order of Police and the Borough of Sharon
Hill.
Separate ledger account created to accept Act 44 Program
participants' monthly pension benefit while an Act 44 Program
participant, as well as any interest thereon.
Borough of Sharon Hill, Delaware County, Pennsylvania.
The Police Pension Plan.
A police officer who meets the eligibility for and has executed
the proper documents for participation in the Act 44 Program and has
had such application approved by the Borough.
Police officers of the Police Department.
C.
Eligibility. Eligibility for the Act 44 Program shall be determined
as follows:
(1)
Police officers who have not retired prior to the implementation
of the Act 44 Program may enter into the Act 44 Program on the first
day of any month following completion of 25 years of credited service
and attaining the age of 50.
D.
Written election. Eligible officers who wish to be participants in
the Act 44 Program must signify that intention in writing, as follows:
(1)
A police officer electing to participate in the Act 44 Program must
complete and execute an "Act 44 Program Participation Election Form"
prepared by the Borough, which shall evidence the member's election
to participate in the Act 44 Program. 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 Program participation to commence.
The Act 44 Program 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") that is no later than
three years from the effective date of the Act 44 Program election
form. For all police officers, except for the individual holding the
position of Chief of Police on January 1, 2014, in no event shall
the resignation date be longer than 84 months after the date of normal
retirement that is provided for in the Sharon Hill Police Pension
Plan. A police officer shall cease to work as and may no longer be
employed 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. The individual holding the
position of Chief of Police on January 1, 2014, shall be permitted
three years of participation in the Act 44 Program, effective January
1, 2014, such that, if he enters the Act 44 Program, he shall terminate
employment not later than December 31, 2016. A participant may resign
from employment while in Act 44 Program status, which shall terminate
her/his participation in the Act 44 Program.
(2)
In addition to the above information, the Act 44 Program 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 Program; 2) that, as a condition of Act 44 Program participation,
the participant foregoes active participation in the Police Pension
Plan and foregoes any recalculation of pension benefits to include
salary increases occurring after Act 44 Program participation commences;
and 3) that the Act 44 Program participant's service while in
the Act 44 Program 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 Program participation.
An Act 44 Program participant must also complete any and all 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. Once an Act 44 Program participation
election form has been approved by the Borough, it is irrevocable.
Likewise, once an Act 44 Program participant enters the Act 44 Program,
the participant may not subsequently leave and then reenter the Act
44 Program, even if the employee separates from employment and subsequently
begins employment with the Borough again.
E.
Benefit calculation. For all pension plan purposes, continuous service
of a police officer participating in the Act 44 Program shall remain
as it existed on the effective date of commencement of participation
in the Act 44 Program. 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 Program. 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 Program or by applicable cost of living adjustments
granted thereafter.
F.
Accumulation of the Act 44 Program 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 the Act 44 Program,
accumulate to the benefit of that officer and be accounted for on
that police officer's Act 44 Program account. Participants shall
not have the option of self-directed investment of their individual
Act 44 Program account while in the Act 44 Program. Instead, the monies
shall be invested in a fund to be identified and selected solely by
the Borough in accordance with applicable law so as to generate a
rate of return of no less than 0% and no more than 4.5%.
G.
Accrual of nonpension benefits. After a police officer elects to
participate in the Act 44 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 Program payout
options available to the Act 44 Program participant shall be as follows:
(1)
The balance of the Act 44 Program 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.
(2)
The balance of the Act 44 Program participant's account shall
be paid directly to the custodian of an eligible retirement plan as
defined by Internal Revenue Code Section 402(c)(8)(b), or in the case
of an eligible rollover distribution to the surviving spouse of a
deceased Act 44 Program participant, an eligible retirement plan that
is an individual retirement account or an individual retirement annuity
as defined by Internal Revenue Code Section 402(c)(9).
I.
Disability during Act 44 Program. If an Act 44 Program participant
becomes temporarily incapacitated during his participation in the
Act 44 Program, that police officer shall continue to participate
in the Act 44 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 the Act 44 Program. In no event shall
a police officer on temporary disability have the ability to draw
from his Act 44 Program account. However, notwithstanding any other
provision in this paragraph, 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 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 a Act 44 Program 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 disability pension,
the monthly normal retirement benefit of the Act 44 Program participant
shall end. Instead, the police officer shall receive a service-connected
disability pension, the monthly payment being equal to the amount
which was payable in accordance with the Act 44 Program benefit calculation
and payments.
J.
Death. If an Act 44 Program participant dies, the participant's
eligibility for the Act 44 Program shall terminate upon the date of
death. In such case, if the Act 44 Program 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/rollover
the account balance.
K.
Forfeiture of benefits. Notwithstanding a police officer's status
as an Act 44 Program 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 Public Employee Pension
Forfeiture Act, 43 P.S. §§ 1311 to 1314, shall forfeit
his right to receive a pension, including any amounts currently deposited
in the Act 44 Program 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 Program. The police officers and the
Borough agree that any costs or fees associated with the management
of the Act 44 Program accounts shall be paid directly from the pension
fund and not by the Borough.
M.
Amendment. Any amendments to this Act 44 Program section 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 Program participants and
upon all Act 44 Program participants who have balances in their individual
retirement option accounts. The Act 44 Program 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 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 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 Program shall not be affected thereby. It is hereby expressly
declared as the intent of the Borough that the Act 44 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 Program shall be
the date the Borough approves the collective bargaining agreement
which references the creation of this Act 44 Program.
This article shall become effective May 1, 1958, on which date
it shall supersede the Police Pension Fund created under resolution
dated November 12, 1945. Beginning May 1, 1958, all payments shall
be made from the Police Pension Fund created under this article.
[Adopted 4-8-1958 by Ord. No. 795 (Ch. 15, Art. II, of the
1972 Code)]
A civil employees' pension fund for regular employees (other
than members of the police force) of the Borough of Sharon Hill is
hereby established and shall be known as the "Civil Employees Pension
Fund." Such fund shall be under the direction of Borough Council and
applied under such regulations as it may prescribe or designate by
resolution from time to time.
The Civil Employees Pension Fund shall be maintained:
[Amended 12-28-1972 by Ord. No. 1019; 6-23-1994 by Ord. No. 1237]
The trustee, Southeast National Bank, is changed to First Fidelity
Bank or any other established institution as may be designated from
time to time by Borough Council.
A Civil Employees Pension Committee is hereby established, which
shall consist of four members, all of whom shall be appointed by Sharon
Hill Borough Council. They shall consist of one member selected from
Borough Council, one representative recommended by the regular employees
(other than members of the police force) of the Borough, one citizen
of the Borough of Sharon Hill, and the Borough Treasurer. The Committee
members shall serve without compensation for a period of three years
or until their successors are duly designated and appointed by Borough
Council.
Huggins & Company, consulting actuaries, is designated as
the actuary until its services are no longer required or its designation
as such is terminated by action of Borough Council.
A written civil employees pension plan shall be adopted by resolution.
This shall implement this article.
The Civil Employees Pension Committee, with the aid of the actuary
and/or the trustee, when necessary, shall make the necessary determinations
as to what contributions are to be made to the fund and also what
payments are to be made out of the fund in accordance with the pension
plan, and written instructions as to such payments shall be given
by the Civil Employees Pension Committee to the persons affected.
