Borough of Collingdale, PA Police Pension Plan

The average monthly earnings of the member at any time of reference computed over the last 36 months (or such shorter period as represents the member's total period of continuous employment by the Borough) of his continuous employment by the Borough prior to such date of reference; for purposes of computing average applicable compensation, actual monthly earnings shall be based on W-2 earnings in which all forms of earnings are derived from the terms and conditions of the employee's employment.

BOROUGH

The Borough of Collingdale, Delaware County, Commonwealth of Pennsylvania.

CHIEF ADMINISTRATIVE OFFICER

The person who has primary responsibility for the execution of the administrative affairs of this pension plan, or the designee of that person.

COMMITTEE

Shall consist of not less than five members, who shall be the Borough Secretary/Manager, the Chairman of Council's Financial Committee, the President of Council, the Borough Treasurer and one participant who is a member of the police force and who shall be chosen by a majority vote of the participants in the plan.

COMPENSATION

Shall be based on W-2 earnings in which all forms of earnings are derived from the terms and conditions of the employee's employment.

COUNCIL

The Council of the Borough of Collingdale.

EARLY RETIREMENT DATE

This plan does not provide for a retirement date prior to normal retirement date.

EFFECTIVE DATE

Of this plan, shall be November 11, 1996.

EMPLOYEE

Any sworn police officer in the full-time employ of the Borough Police Department whose customary employment is for not less than 40 hours a week.

FUND

All assets held by the trust under the trust agreement relating to this Police Pension Plan.

MEMBER

Any sworn police officer in the full-time employ of the Borough Police Department who has satisfied the eligibility requirements established in § 63-2 hereof and who is, at the time of reference, or has, prior to their elimination, been making such contributions as may be required pursuant to § 63-3A hereof.

NORMAL RETIREMENT DATE

[Amended 5-2-2016 by Ord. No. 711]

(1)

For those members hired prior to December 31, 2015, the first day following the date on which the member completes 25 years of service and the date on which the member attains age 53.

(2)

For members hired after December 31, 2015, the first day following the date on which the member completes 25 years of service and the date on which the member attains 55 years of age.

PLAN

The Police Pension Plan for the Borough of Collingdale, as herein set forth and as the same may hereafter be amended.

PLAN YEAR

A period of 12 consecutive months commencing on any January 1 and ending on the following December 31.

SERVICE

The aggregate of member's total periods of employment as a full-time employee of the Borough. If a member enters military service, either voluntarily or by conscription, after he has been employed for at least six months, such time spent in the armed forces of the United States during a period of national emergency shall be counted as service for purposes of the plan, provided that such member returns to police service with the Borough within six months after his discharge or release from such active duty in the armed forces of the United States. The time spent in military service due to voluntary extension of such military service during a period of peacetime shall not be included as service for the purposes of this article. Time spent on reserve or National Guard training shall be included as service for purposes of this plan.

TOTAL AND PERMANENT DISABILITY

Any condition arising from service-connected illness or injury which precludes an employee from performing the duties associated with the normal occupational requirements of any position with the Police Department, as certified by a physician designated by the Borough.

TRUSTEE

The Council of the Borough of Collingdale or any other agency or person appointed by such to serve in that capacity as set forth in the trust agreement.

Wherever applicable as used herein, unless the context specifically provides otherwise, the singular and plural shall be interchangeable, and the masculine and feminine pronouns shall include either sex.

§ 63-2 Eligibility.

All persons who are employees (as defined in this article) as of the effective date hereof shall be a member as of the effective date.

Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.

§ 63-3 Contributions.

[Amended 7-7-2003 by Ord. No. 635]

Contributions by members. Member shall pay into the fund at a rate of 5.0% of compensation. "Compensation" for this purpose shall be as defined in § 63-1 of the article. The Council may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members. Individual records of contributions by members shall be maintained, including all interest credited to an individual account. Interest to be credited shall be 6.0% compounded annually. Interest shall be credited from the end of the plan year in which paid to the end of the month after which a refund becomes payable.

Refund of member's contributions. Any member who for any reason shall be ineligible to receive a pension after having made contributions shall be entitled to a refund of his individual account balance; such refund is payable immediately upon discontinuance of his employment with the police force or within a reasonable time (not more than 45 days after discontinuance). If such discontinuance is due to death, then such refund shall be paid to his designated beneficiary or, in the absence thereof, to his estate. If the disabled or retired member is receiving a benefit by reason of disability or retirement, then the refund payable to the beneficiary is equal to the individual account balance at the date of disability or retirement, less any pension payments made to the member.

Deposits. Contributions by members shall be remitted to the trustee monthly.

State aid. The portion of the payments made by the State Treasurer to the Borough and designated by the Council to be allocated to the Police Pension Fund from money received from taxes paid upon premiums by foreign casualty insurance companies for purposes of pension retirement or disability benefits for policemen shall be used as follows:

(1)

To reduce the unfunded liability; or

(2)

After such liability has been fully funded, to apply against the annual obligation of the Borough for future service costs; or

(3)

To the extent that the payment may be in excess of such obligations, to reduce member contributions pursuant to Subsection A of this section.

Borough contributions. Subject to the provisions and limitations set forth in other sections of this article, the Borough shall contribute the amounts certified to be necessary by the fund's actuary to provide the benefits provided by this article.

Contributions by members while on military service. A member who enters the military service during a time of national emergency either voluntarily or by conscription shall continue to make contributions to the plan as outlined in § 63-3A based on the compensation in effect on the last day of service with the Borough's Police Department. These contributions will continue throughout the length of his military service. During military service, the trustee shall continue to contribute to the fund for the officer's benefit. However, no contributions will be made either by or on behalf of a member who voluntarily extends his military service during peacetime.

Other contributions. The fund shall be authorized to receive, by gift, grant, devise or bequest, any money or property, real, personal or mixed, in trust for the benefit of the fund. The trustee of the fund shall be subject to such directions not inconsistent with this article as the donors of such funds and property may prescribe.

§ 63-4 Retirement benefits.

[Amended 7-7-2003 by Ord. No. 635]

Normal retirement. Each member may retire on or at any time after his normal retirement date. Any member so retiring shall be entitled to receive a monthly pension commencing as of the first day following his date of actual retirement and ending with the payment made as of the first day of the month which his death occurs. The monthly pension to which such retired member shall be entitled to under this article shall be equal to 50% of such member's average applicable compensation. In addition to the monthly retirement benefit described above, each member who has completed in excess of 25 years of service shall receive an additional monthly pension benefit for each completed year of service after 25 years of service as follows:

[Amended 4-2-2007 by Ord. No. 656]

(1)

For members who retire between January 1, 2007 and December 31, 2008, the benefits shall be $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. This amount may be paid in addition to the individual's normal retirement benefits.

(2)

For members who retire between January 1, 2009 and December 31, 2011, the benefit shall be $100 per month for each completed year of service in excess of 25 years up to a maximum of $300 per month after three completed years of service in excess of 25 years. This amount may be paid in addition to the individual's normal retirement benefits.

(3)

For members who retire after December 31, 2011, the benefit shall be $100 per month for each completed year of service in excess of 25 years up to a maximum of $100 per month after one completed year of service in excess of 25 years. This amount may be paid in addition to the individual's normal retirement benefits.

(4)

Members who retire after December 31, 2015, shall receive a monthly increase of $100 per month for completing a 26th year of service, and an additional increase of $100 per month for members who complete a 27th year of service. In no event should the maximum service increment exceed $200 per month. This amount may be paid in addition to the individual's normal retirement benefits.

[Added 5-2-2016 by Ord. No. 711]

Postponed retirement. An employee shall be allowed to continue as an employee beyond his normal retirement date. In such case, the employee shall remain a member of the plan until he actually retires or ceases to be an employee. Any contributions required pursuant to § 63-3A hereof shall continue.

Disability benefits. Effective January 1, 2016, if a member retires because of a total and permanent disability, they shall be entitled to receive 100% of their salary at the rate in effect at the time the disability was incurred, if the member receives social security disability (SSD) benefits for the same injury. The disability pension shall be offset by the SSD received by the member.

[Amended 5-2-2016 by Ord. No. 711]

(1)

If a member retires because of a total and permanent disability, they shall receive 70% of the member's salary at the rate in effect at the time the disability was incurred if the member does not receive social security disability (SSD) benefits for the same injury.

(2)

There shall be no offset for workers' compensation benefits received by a member receiving a disability pension.

Cost-of-living adjustment. There shall be a cost-of-living increase provided to all members who retire; provided, however, that such cost-of-living increase shall not exceed the percentage increase in the All Urban Consumers CPI for the Philadelphia area for the year in which the police officer last worked, whichever is less; provided, further, that in no case shall the total police pension benefits exceed 75% of the salary for computing retirement benefits; provided, further, that the total cost-of-living increase shall not exceed 30%. No cost-of-living increase(s) shall be granted which would impair the actuarial soundness of the plan.

§ 63-5 Death benefits.

[Amended 7-7-2003 by Ord. No. 635]

Death benefit if no surviving spouse nor dependent children. If a member dies prior to the commencement of pension benefits, then his designated beneficiary shall be entitled to a refund of his accumulated member's contributions with credited interest. If no beneficiary survives, then the refund is payable to the member's estate.

Pension benefit to surviving spouse and dependent children. If a member dies survived by a spouse or dependent children after having become eligible to receive a pension benefit (i.e., he was eligible because 1) he was already receiving a pension; 2) he met the age and service requirements, but he had not yet retired), then a monthly pension benefit shall be provided. The amount of the monthly pension benefit shall be 50% of the pension the member was receiving or would have been entitled to receive if he had been retired at the time of his death. In the event a member dies after completing 12 or more years of service but was not yet eligible for normal retirement or preretirement survivor benefits, the surviving spouse shall act on behalf of the member in selecting the alternative addressed in § 63-6A. If a vested benefit is selected, the surviving spouse shall receive 50% of the member's vested monthly benefit commencing on the first day of the month following the member's normal retirement date. The monthly pension benefit is payable to the surviving spouse until death, then to surviving dependent children under the age of 18 years or, if attending college, under or attaining the age of 23 years. "Attending college" shall mean the eligible children are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester. "Dependent children" shall include, stepchildren, adopted children, and any child conceived before the time of the member's death and thereafter born to the member's spouse.

Preretirement survivor benefit. In the event a member is killed in service, the member's family shall receive the benefits provided for and subject to the terms of Act 51 of 2009, which benefits are paid exclusively by the Commonwealth of Pennsylvania, with the exception of any pension benefit to which the member was entitled prior to the member's death, solely by virtue of the member's service as a Borough police officer (i.e., either a normal, early or vested pension benefit). It is understood that "family" shall refer to the surviving spouse and dependent children. The benefit is payable to the surviving spouse until death, then to the surviving dependent children under the age of 18 years or, if attending college, under or attaining the age of 23 years. The terms "dependent children" and "attending college" shall be consistent with § 63-5B.

[Amended 5-6-2013 by Ord. No. 691]

§ 63-6 Severance of employment.

If a member leaves the employ of the Borough or ceases to be a member, whether by reason of his transfer, resignation or discharge, or by reason of disability or retirement other than after becoming eligible for benefits pursuant to § 63-4 or 63-5 of this article, he shall be entitled to a refund of all contributions made by him and then on deposit in the fund, plus interest thereon, computed at the rate described in § 63-3A. However, a member who has completed 12 or more years of service may elect either Subsection A or B as described below:

He may elect to leave his contributions, plus interest, in the fund so as to receive a vested pension benefit to start at his normal retirement date. He must file with the Secretary of the Borough of Collingdale within 90 days of the date he ceases to be a full-time police officer, a written notice of his intention to vest. The amount of the vested pension benefit shall be (x) divided by (y), where (x) is the number of years of service at the date of termination and (y) is the number of years of service which the member would have had if he worked until normal retirement date, multiplied by the benefits described in § 63-4A. Years of service shall be measured in years and completed months.

He may elect to receive a refund of all contributions made by him and then on deposit in the trust fund, plus interest thereon, computed at the rate described in § 63-3A. If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit outlined in Subsection A.

§ 63-7 Method of distribution of benefits.

Refund benefits becoming distributable pursuant to § 63-6A and death benefits becoming distributable pursuant to the provision of § 63-5A shall be paid in the form of a lump-sum distribution.

The normal form of all benefits payable hereunder shall be a pension for the life of the member commencing on the date specified and ending with a payment made on the first day of the month in which the member dies, subject, however, to the payment of a death benefit calculated pursuant to § 63-5B.

§ 63-8 Management of fund.

It is the duty of the trustee to pay the benefits to members and their beneficiaries as provided in §§ 63-4, 63-5 and 63-6 in accordance with the instructions received from the Council; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes.

The Borough may employ an actuary, investment advisors, counsel or other professional consultants from time to time in connection with the operation of the fund or of this plan. Such persons or entities shall be compensated by the Borough at such rates as may be agreed upon by the Council. Such compensation may be paid from the fund.

The trustee shall make an annual determination of the fair market value of the fund as of the anniversary date and as of such additional dates as the Council may direct. The fair market value of the fund shall be reported to the actuary, who shall calculate the amount to be contributed to the fund by the Borough with respect to each plan year in accordance with the assumptions most recently adopted by the Council for the purpose of such computations; provided, however, that the liability of the Borough to make such contributions is subject to all of the conditions and limitations set forth elsewhere in this article.

§ 63-9 Borough Council.

The plan shall be administered by the Council of the Borough of Collingdale. The Council shall make and adopt rules and regulations for the efficient administration of the plan.

The Council shall keep all data, records and documents pertaining to the administration of the plan and shall execute all documents necessary to carry out the provisions of the plan, and shall provide all such data, records and documents to the professionals whose services are employed pursuant to § 63-8B of this article.

The Council shall construe the plan, shall determine any questions or fact arising under the plan and shall make all decisions required of it under the plan. Decisions and actions taken thereon in good faith shall be final and conclusive. It may correct any defect or supply any omission or reconcile any inconsistency in such manner and to such extent as it shall be the sole judge of such expediency. The Council shall act uniformly with respect to matters coming before it concerning employees in similar circumstances.

The members of the Council, and each of them, shall be free of all liability for any act or omission except by willful misconduct or gross negligence, and each of them shall be fully indemnified by the Borough against all judgments not involving findings of their respective personal or collective willful misconduct or gross negligence and against all cost, including counsel fees, incurred in defense of actions brought against them.

The Council shall make available to members, retired members and terminated members, and to their beneficiaries, for examination during business hours, such records as pertain to the person examining.

To enable the Council to perform its function, the Borough administration shall supply full and timely information to it on all matters relating to the pay of all members, their retirement, death, termination of employment and such other pertinent facts as the Council may require.

The Council shall enact such rules and regulations for the conduct of its business and for the administration of the plan as it may consider desirable, provided the same shall not be in conflict with any of the provisions of the plan. All actions of the Council shall be taken at meetings at which at least four members shall be present, or by written resolutions concurred in by not less than four of its members, and shall be the action of the entire Council. Written minutes shall be kept of the meetings and action of the Council.

The Secretary, acting on behalf of the Council, shall have the power to execute all documents necessary to carry out the actions of the Council, and any person, partnership, corporation or government agency shall accept such documents over such signature or signatures as if executed by the Council.

§ 63-10 Police Pension Committee.

The Council may appoint a committee, which shall be created to monitor the operation of the fund and plan and to advise the Borough Manager and Council on matters concerning the administration of the fund and plan. The Committee shall review and supervise the investment and expenditures of moneys in the fund and plan.

The Committee so designated shall serve until death, resignation, removal or disqualification. Any committee member may resign upon written notice to the Council and the Committee. Any vacancies in the Committee arising from resignation, death or removal shall be filled by the Council (by the procedure set out herein for the committee whose resignation, death or removal has created the vacancy).

The Committee shall act by such procedure as the Committee shall establish. All decisions of the Committee shall be by majority vote. The Committee may authorize one of its members to execute any document or documents on behalf of the Committee. The Committee may adopt such bylaws and regulations as it deems necessary for the conduct of its affairs and may appoint such accountants, counsel, actuaries, specialists or such other person as it may deem advisable for the proper administration of the plan. No such regulation, bylaw or appointment shall be effective until such is approved by the Council, and the expenses incurred by the retention of such professionals shall be subject to the prior approval of the Council.

The Committee shall keep a record of all proceedings and acts and shall keep all such books of accounts, records and other data as shall be necessary for the proper administration of the plan. All actions of the Committee shall be communicated to the Council.

All books, records, accounts, ledgers, transcripts, bank records, assets and tangible property of value shall be kept and in the custody of employer or any person designated by the President of the Council.

The Committee members shall serve without compensation for their services but shall be reimbursed for all reasonable expenses incurred in the administration of the plan. Such expenses shall be subject to the prior approval of the Council.

No Committee member shall incur any liability for any action or failure to act, accepting only liability for his/her own gross negligence or willful misconduct. The employer shall indemnify each Committee member against any and all claims, loss, damages, expense and liability arising from any action or failure to act, except for such that is the result of gross negligence or willful misconduct of such Committee.

All checks, drafts, order to pay money, deposits of money and all transactions concerning the receipt or disbursement of any money shall be prepared by employer or any person designated by the President of the Council.

§ 63-11 Provisions relating to Borough.

It is the expectation of the Borough that it will continue this pension plan indefinitely, and will, from time to time, contribute to the fund such amounts as may be needed to provide the benefits set forth in the plan.

The provisions of any ordinance establishing, amending or maintaining the plan shall not be a charge on any other fund in the treasury of the Borough or under its control, save the uniformed employees pension fund herein provided for.

Nothing contained in the plan shall be held or construed as a contract or guarantee of employment nor to create any liability upon the Borough to retain any person in its service. The Borough reserves the full right to discontinue the service of any person without any liability except for salary or wages that may be due and paid, whenever in its judgment its best interests so require, and such discontinuance shall be without regard to this article.

§ 63-12 Termination or amendment of plan.

The Borough may amend this plan from time to time as is necessary to maintain its actuarial soundness and to incorporate changes in plan benefits or entitlements. However, no amendment shall be made which will, in any manner, divert any part of the fund to any purpose other than the exclusive benefit of members or their beneficiaries (except that, upon termination, such diversion may be made after all of the fixed and contingent liabilities to members and their beneficiaries have been met); nor shall any amendment be made at any time which will in any manner divest any benefit then vested in a member or reduce or eliminate a benefit to which a member has been given an expectation by virtue of pension ordinance or pension calculations for retiring officers who retired during the member's participation in this plan.

In the event of termination of this plan, the Council shall allocate the assets then remaining in the fund as follows:

(1)

Sufficient funds shall be maintained to provide the pension benefits prescribed in § 63-3 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.

(2)

Contributions with interest at a rate established by the Council as provided in § 63-5 shall be refunded to any and all members who terminate service at the time of the termination of the fund.

(3)

Of the remaining funds, those which can be identified as municipality contributions or contributions other than from members or from the commonwealth allocation shall be distributed as the Council sees fit, provided that such distribution is in compliance with § 63-8.

(4)

All funds in excess of the funds described in Subsection B(1), (2) and (3) above shall be returned to the commonwealth as unused funds pursuant to the Act of May 12, 1943, P.L. 259, as amended, 72 P.S. § 2263.1 et seq.

§ 63-13 Miscellaneous provisions.

No benefit under this article shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance, nor to seizure, attachment or other legal process for the debts of any member or member's beneficiary. This provision shall not apply to a "qualified domestic relations order" defined in Internal Revenue Code Section 414(p), and those other domestic relations orders permitted to be so treated by the Council under the provisions of the Retirement Equity Act of 1984. The Borough shall establish a written procedure to determine the qualified status of domestic relations orders to administer distributions under such qualified orders. Further, to the extent provided under a qualified domestic relations order, a former spouse of a member shall be treated as the spouse or surviving spouse for all purposes under this article.

Any person dealing with the Borough may rely upon a copy of this article and any amendments thereto certified to be true and correct by the trustee.

In no circumstances, whether upon amendment or termination of this plan or otherwise, shall any part of the fund be used or diverted to any purpose other than the exclusive benefit of members or their beneficiaries until all of the actuarial obligations to such member or member's beneficiaries have been met.

If the Council deems any person incapable of receiving benefits to which he is entitled by reason of minority, illness, infirmity or other incapacity, it may make payment directly for the benefit of such person to the guardian or trustee for said person, whose receipt shall be complete acquittance therefor. Such payment shall, to the extent therefor, discharge all liability of the Borough or the fund.

Should any provision of this article be determined to be void by any court, the plan will continue to operate and, to the extent necessary, will be deemed not to include the provision determined to be void.

Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.

This article shall be construed and applied under the laws of the Commonwealth of Pennsylvania where not in conflict with federal laws which shall prevail.

This article repeals all other ordinances prior to the date of its enactment.