[Adopted 8-7-1985 by Ord.
No. 4-85]
A police pension plan is hereby established pursuant to and
in compliance with the Act of May 29, 1956, P.L. 1804, as amended.[1] Such plan shall be under the direction of the Board of
Supervisors of the Township of Cecil and shall be applied under such
regulations as the Board may prescribe.
[1]
Editor's Note: See 53 P.S. § 767.
As used in this article, the following terms shall have the
meanings indicated:
A benefit determined by an actuary to be equivalent in value
to the participant's normal retirement benefit, as defined herein,
provided that such actuarial equivalent is within the limitations
provided herein.
The governing body of the Township of Cecil, hereinafter
referred to as "Board."
The persons appointed to serve in an advisory capacity to
the Board in the administration of the pension plan.
The payroll deductions made monthly from the compensation of the participants and paid to the pension fund; except that contribution in § 32-6 shall mean the total contributions accumulated during the period of employment and participation in this fund.
The Township of Cecil.
The police pension fund established pursuant to this Article I.
The value of participant's benefits which shall accrue by virtue of service in the aggregate rendered subsequent to the enactment of this Article I.
The amount of salary received by a participant in each and
every month, including longevity pay and service increments, etc.,
if any. Overtime is not included within this definition of "monthly
compensation."
Every person duly appointed from time to time by the municipality
as a full-time paid police officer working at least 35 hours per week
at a definite salary, subject to reasonable vacation and sick leave.
Total service, not necessarily continuous.
The cessation of services by the participant for any reason, including disability, resignation, and employer termination. Voluntary leaves of absence without pay shall not be a termination for purposes of this Article I, but no period of such leave shall be computed in the total service in the aggregate for pension benefit purposes. Leaves of absence with pay shall not be considered a termination within the meaning of this Article I, and such leaves may be computed in the total service in the aggregate for pension benefit purposes, provided that the municipality is able to certify to the Department of the Auditor General that such participant on a leave of absence with pay is within the definition of "participant" herein. Death shall not be considered a termination within the meaning of this Article I.
The present value of any participant's benefits accrued prior to the enactment of this Article I by virtue of his/her prior service in the aggregate.
[Amended 11-20-1985 by Res. No. 38-85]
A.
The Board shall administer the police pension plan established by this Article I by such regulations as shall from time to time be necessary for the effective maintenance of the plan, provided that no regulation shall be contrary to the statutes of the commonwealth pursuant to which this plan is established.
B.
The Board may appoint a committee, which shall act as an advisory body to the Board in the administration of the pension plan established by this Article I according to the regulations established pursuant to this section.
C.
The Committee shall consist of five members, which number shall include
three chosen by the Board and two chosen by the participants in the
plan. All persons so designated shall serve at the pleasure of the
Board. Any member may resign upon written notice to the Board and
the Committee. Any vacancies in the Committee arising from resignation,
death or removal shall be filled by the Board by the procedure set
out herein for the member of the Committee whose resignation, death
or removal has created the vacancy. The Committee shall meet no less
than annually, and members shall serve without compensation for their
services.
D.
The Committee shall act by such procedure as the Committee establishes,
provided that all decisions 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 bylaws and regulations
as it deems necessary for the conduct of its affairs and may appoint
such accountants, counsel, specialists, or such other persons as it
may deem desirable for the proper administration of the pension plan,
provided that all such appointments shall be approved by the Board.
E.
The Committee shall keep a record of all its 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 pension
plan.
F.
All such reasonable expenses incurred in the administration of the
plan, including but not limited to fees for the services of specialists,
including actuaries, accountants and legal counsel, shall be paid
directly from the pension fund itself.
G.
No member of the Committee 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
member of the Committee 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 member.
[Amended 1-3-1990 by Ord.
No. 1-90; 4-15-1992 by Ord. No. 1-92; 6-7-2000 by Ord. No. 4-2000]
A.
Eligibility for normal retirement.
B.
Normal retirement benefit.
(1)
A participant who shall complete the age and service requirements as set forth in this Subsection B shall receive a pension for life in an amount equal to 1/2 of the participant's average monthly compensation, based on the participant's last 36 months of compensation, or that percentage and based on that number of months as shall be prescribed by statute of the Commonwealth of Pennsylvania subsequent to the adoption of this section.
(2)
Such pension shall be payable from the assets of the plan, provided
that the amount of the pension shall be reduced by 0% of the amount
of primary social security benefits to which the participant may be
entitled because of the participant's age.
C.
Death prior to retirement or retirement eligibility. The beneficiaries designated by the participant pursuant to § 32-4I herein shall be entitled to the death benefit incidental to a policy of insurance purchased primarily to fund the pension of the participant, provided that the participant, at the time of his/her death, is not retired according to the terms on § 32-4B herein.
D.
Disability benefits. If any participant is permanently injured in
service, and upon the representation and certification of a physician
designated by the Committee that such injury is permanent and service-connected,
then such participant in the case of injury is entitled to a pension
in an amount based on a uniform scale established by the Committee,
subject to prior approval of such scales by the Board, provided that
such pension is to be offset by any benefits which may be received
by the participant through workers' compensation, the Federal Social
Security Program, and/or any disability income policies which may
become payable.
E.
Vested benefit.
(1)
Should a participant, before completing superannuation retirement
age and service requirements but after having completed 12 years of
total service, for any reason ceases to be employed as a full-time
police officer by the Township of Cecil, he/she shall be entitled
to vest his/her retirement benefits by filing with the Board, within
90 days of the date he/she ceases to be a full-time police officer,
a written notice of his/her intention to vest.
(2)
Upon reaching the date which would have been his/her superannuation
retirement date had he/she continued to be employed as a full-time
police officer, he/she shall be paid a partial superannuation retirement
allowance determined by applying the percentage his/her years of service
bear to the years of service which he/she would have rendered had
he/she continued to work until his/her superannuation retirement date
to the gross pension, using however, the monthly average salary during
the appropriate period prior to his/her termination of employment.
F.
Service increments. In addition to the monthly retirement benefit
of 50% of compensation, a service increment pension shall be provided
for all participants who retire under the terms of this article, which
increment shall equal $100 per month for each year of completed service
in excess of 25 years. Such service increment pension shall not exceed
a total of $500 per month after five completed years of service in
excess of 25 years.
[Amended 12-6-2010 by Ord. No. 5-2010]
G.
Survivors benefit.
(1)
In the event of the death of a participant who was receiving a retirement
pension, a disability pension, or who had qualified for a retirement
pension but had not retired, that participant's widow may be entitled
during her lifetime, or so long as she does not remarry, to receive
a pension equal to 50% of the "straight life annuity" pension the
participant was receiving or would have been receiving had the participant
been retired at the time of his death. If no widow survives, or if
she survives and subsequently dies or remarries, then the child or
children under the age of 18 years of the deceased eligible participant
shall be entitled to receive a pension calculated at 50% of the pension
to which the participant was entitled.
(2)
With regard to a police officer killed in service, a police officer's
spouse who has not remarried, or children under 18 years of age, may
be provided with a pension benefit. Said pension shall be based upon
the same formula as if the officer had retired prior to his death.[1]
[1]
Editor's Note: Pursuant to Ord. No. 1-2011, adopted 3-7-2011,
provisions of the Cecil Township Uniformed Pension Plan which provide
for a "killed in service" benefit and sections of Cecil Township ordinances
which established such benefit are hereby repealed such that the plan
will no longer have a "killed in service" provision. Benefits payable
to members of the Cecil Township Police Department who, after the
enactment of this article, are killed in service, as defined by the
Emergency and Law Enforcement Personnel Death Benefits Act, shall
be paid from the Commonwealth's General Fund in accordance with the
provisions of Act 51 of 2009.
H.
Cost of living adjustment. A cost of living adjustment shall be provided
to a retired participant, subject to the limitations as noted hereinafter:
(1)
Such adjustments shall not exceed the percentage increase in the
"All Items Index" of the Consumer Price Index from the month in which
the participant last worked.
(2)
In no case may the participant's total pension benefits exceed 75%
of the retired participant's compensation for computing retirement
benefits.
(3)
The retired participant's total cost of living adjustment shall not
exceed 30% of his/her original pension benefit.
(4)
No cost of living increase(s) shall be granted which would impair
the actuarial soundness of the pension plan.
I.
Designation of beneficiaries. Each participant shall have the right
to name the beneficiary or beneficiaries for preretirement death benefits
incidental to policies of insurance purchased primarily to fund the
participant's pension, provided that the ownership of such policies
shall remain in the municipality's governing body and shall be endorsed
to prevent the assignment of ownership to the insured. If the participant
shall fail to name a beneficiary, such benefits as would have accrued
to his/her beneficiaries shall be paid to the participant's estate.
Each participant may from time to time change the beneficiaries in
such form and manner as shall be prescribed by the Board.
J.
Actuarially equivalent benefits. In lieu of the retirement benefits
contained herein, the participant may elect in writing an actuarial
equivalent as may be provided for by regulation, provided that no
such equivalent benefits may work the effect of providing a lump-sum
amount of money or provide for a pension less than the amount established
by law, unless such amount is reduced to pay the cost of an additional
benefit such as one-hundred-twenty-month certain benefits.
K.
Nonalienation of benefits and vesting.
(1)
No benefit under the plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge.
Nor shall any such benefits be in any manner liable for or subject
to garnishment, attachment, execution, levy or other legal process.
(2)
Further, all benefits granted herein shall vest in the participant
upon completion of the requirements for eligibility, and his/her benefits
shall continue in the amount and in the form in which he/she first
became entitled to them.
A.
Contributions of participants. Where positions covered by the plan are included in an agreement under the Federal Social Security Act, participants shall pay into the fund monthly an amount calculated by subtracting from 5% the product of 3% and the amount of the social security offset established by the Board pursuant to § 32-4B. Such contribution shall be on that portion of monthly compensation on which social security benefits are payable. A contribution of 5% shall be made on that portion of monthly compensation that exceeds the amount on which social security benefits are payable.
B.
Reduction or elimination of participants' contributions. The monthly
contributions of the participants may be reduced or eliminated, if
an actuarial study annually indicates that such reduction or elimination
for that year will not adversely affect the actuarial soundness of
the fund. If the actuarial study so indicates, the reduction or elimination
shall be effected by resolution, and it shall be effective for one
year. No reduction or elimination shall result in increasing the liability
of the municipality to the fund.
C.
Contributions of the municipality.
(1)
Past service liability. It shall be the obligation of the municipality to fund the past service liability as determined by the actuary, provided that such liability may be funded over a period not to exceed 25 years. The 25 years commences with the passage of this Article I.
(2)
Future service cost. The municipality shall have no liability for
the future service cost of the pension fund unless such costs are
not met by the allocation of commonwealth funds and participants'
contributions. The maintenance of the actuarial soundness shall be
the responsibility of the municipality.
(3)
Administrative expenses. It shall be the liability of the municipality
to pay the administrative expenses incurred in the management of the
plan. No funds paid for the purpose of funding pensions shall be used
to pay administrative costs, excepting those costs associated with
the reporting requirements of Act 205 of December 18, 1984.
D.
Allocation of commonwealth funds. The payments made by the State
Treasurer to the municipality from the monies received from the taxes
paid on the premiums of foreign casualty insurance companies for purposes
of pension retirement or disability benefits for police officers shall
be used as follows:
E.
Gifts, bequests and grants. All other monies and property received
by the fund, including gifts, bequests, devises, and grants, shall
unless otherwise specifically provided be applied equally against
the participant and the municipality portions of the future service
cost.
If for any reason a member of the police force of the municipality shall terminate service with the municipality, that member shall be entitled to a refund of contributions plus interest at a rate of 6% per annum. Such interest shall be uniform for all participants. This section will also apply if said termination is the result of death. If a member shall subsequently return to service and return the contributions plus the interest which were refunded to him/her upon termination to the fund, he/she shall be entitled to credit for the prior years of service to the extent of the return of contributions. Nothing in this section shall be construed to allow credit for service not actually given to the municipality except as specifically provided in § 32-7.
Any member of the police force of the municipality for at least
six months, who thereafter shall enter the military service of the
United States, shall have credited to his/her employment record for
pension benefits all of the time spent by him/her in such military
service, provided that such person returns to his/her employment with
the police force of the municipality within six months after his/her
separation from the service.
Upon termination of the fund, the assets shall be distributed
as follows:
A.
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 32-4B for all participants who have retired prior to the termination or who are eligible for retirement at the time of the termination of this fund.
B.
Contributions with interest at the rate of 6%, as provided in § 32-6, shall be refunded to any and all participants who terminate service at the time of the termination of the fund.
C.
Of the remaining funds, those which can be identified as municipality
contributions or contributions other than from participants or from
commonwealth allocation shall be distributed as the Board sees fit,
provided that such distribution is made on a uniform basis.
Neither the establishment of the plan hereby created, nor any
modification thereof, nor the creation of any fund or account, nor
the payment of any benefits shall be construed as giving to any participant
or other person any legal or equitable right against the municipality,
or any officer or employee thereof, or the Board, except as herein
provided. Under no circumstances shall the plan created hereby constitute
a contract for continuing employment for any participant or in any
manner obligate the municipality to continue or discontinue the services
of an employee. This plan has been established and shall be maintained
by the municipality in accordance with the law of the Commonwealth
of Pennsylvania. The plan shall continue for such period as may be
required by such laws, and should such laws provide that the municipality
may, by its own action, discontinue this plan, the municipality reserves
the right to take such action in its sole and absolute discretion.
Upon termination, the municipality shall have no liability hereunder
other than that imposed by law.
All investments by the Board of the assets of the fund shall
comply with the Fiduciary Investment Act of 1949, as amended, and
such regulations as the Board shall establish for the purpose of investing
such funds. The Board may also purchase annuities or other contracts
of insurance which provide a cash value with which to fund pensions,
provided that the Board shall determine the value of any policies
purchased, the company with which the contracts shall be made, and
the time to purchase such policies. The Board shall also have the
obligation to insure that the policies purchased provide benefits
on a uniform scale and that such policies are endorsed to the ownership
of the municipality's pension plan.
The Board reserves the right to amend at any time, in whole or in part, any or all of the provisions of this plan. However, no such amendment shall authorize or permit any part of the fund to be used or diverted to purposes other than for the exclusive benefit of the participants, their beneficiaries or their estates. Nor shall any amendment divest a participant of benefits vested by § 32-4E. All such amendments shall comply with the applicable statutes of the commonwealth, including, but not limited to, the Act of May 29, 1956, P.L. (1955) 1804, as amended, 53 P.S. § 767 et seq.
This plan shall be constructed according to the laws of the
Commonwealth of Pennsylvania and all provisions hereof shall be administered
according to the laws of such commonwealth. Wherever any words are
used herein in the masculine gender, they shall be construed as though
they were also used in the feminine gender in all cases where they
would so apply, and wherever any words are used herein in the singular
form, they shall be construed as though they were also used in the
plural form in all cases where they would so apply. Headings of sections
and paragraphs of this instrument are inserted for convenience of
reference. They constitute no part of this plan and are not to be
considered in the construction hereof.
