[Ord. 431, 12/7/1992, Article 1; as amended by Ord. 482, 1/10/00, § I]
AGE
The age attained by the employee at his or her last birthday.
ANNIVERSARY DATE
Any January 1 after the effective date.
AVERAGE APPLICABLE SALARY
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 salary, actual monthly earnings shall include base pay, longevity pay and night differential pay (if any), and overtime pay, but shall exclude reimbursed expenses or payments in lieu of expenses, non-police compensation (including, but not limited to, fringe benefits provided by the Borough) or any other payments or allowances (such as uniform allowances).
COMPENSATION
Earnings including, but not limited to, base pay, longevity pay, shift differential (if any), overtime pay, but shall exclude reimbursement expenses or payments in lieu of expenses, non-police compensation, but including, but not limited to, fringe benefits provided by the Borough and any other allowances paid by the Borough (i.e., uniform allowances).
COUNCIL
The Council of the Borough of East Lansdowne.
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.
EARLY RETIREMENT DATE
The first day following the date on which the member completes 20 years' service.
EFFECTIVE DATE
January 31, 1993.
EMPLOYEE
Any person in the full-time employ of the Borough Police Department whose customary employment is for not less than 35 hours a week.
FUND
All assets held by the trust under the trust agreement relating to this police pension plan.
MEMBER
Any person in the full-time employ of the Borough Police Department who has satisfied the eligibility requirements established in § 1-611, 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 § 1-603, Subsection 1, hereof.
NORMAL RETIREMENT DATE
The first day of the month coincident with or next following the date on which the member completes 25 years of service, and the date on which the member attains age 50.
PLAN
The Police Pension Plan for the Borough of East Lansdowne, as herein set forth and as the same may hereafter be amended.
PLAN YEAR
A period of 12 consecutive months commencing on any January 1st and ending on the following December 31.
POLICE PENSION COMMITTEE
Consists of three members, which number shall include one person chosen by the President of Council, one person chosen by the majority of the members in the plan, and one person chosen by both the President of Council and the majority of the members.
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 the 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 or peacetime shall not be included as service for the purposes of this plan. 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 the physician designated by the Borough.
BOROUGH
Borough of East Lansdowne, Delaware County, Commonwealth of Pennsylvania.
TRUSTEE
The Council of the Borough of East Lansdowne. Wherever applicable as used herein, unless the context specifically provides otherwise, the singular and plural shall be interchangeable, and the masculine and feminine pronoun shall include either sex.
[Ord. 431, 12/7/1992, Article 2]
1. 
All persons who are employees (as defined in this plan) as of the effective date hereof shall be a member as of the effective date.
2. 
Any person who becomes an employee after the effective date hereof shall become a member on the first day of service as an employee.
[Ord. 431, 12/7/1992, Article 3; as amended by Ord. 497, 11/11/2002, § 1]
1. 
Contributions by Members. Members shall pay into the fund at a rate of five percent of compensation. Compensation for this purpose shall be as defined in § 1-601 of this Part. 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 his individual account. Interest to be credited shall be 6 1/2% 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.
2. 
Refund of Member's Contributions. Any member who for any reason shall by 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.
3. 
Deposits. Contributions by members shall be remitted to the trustee monthly.
4. 
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, after such liability has been fully funded, (2) to apply against the annual obligation of the Borough for future service costs, or to the extent that the payment may be in excess of such obligations, (3) to reduce member contributions pursuant to § 1-603, Subsection 1, hereof.
5. 
Borough Contributions. Subject to the provisions and limitations set forth in other Sections of this plan, the Borough shall contribute the amounts certified to be necessary by the fund's actuary to provide the benefits provided by this plan.
6. 
Military Service. Any member of the police force employed by the Borough who has been a regularly appointed employee of any such political subdivision for a period of at least six months, and who thereafter shall enter into the military service of the United States, shall have credited to his employment record for pension or retirement benefits all of the time spent by him in such military service, if such person returns or has heretofore returned to his employment within six months after his separation from the service.
7. 
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 plan as the donors of such funds and property may prescribe.
[Ord. 431, 12/7/1992, Article 4; as amended by Ord. 470, 11/10/1997, §§ 1,2; by Ord. 482, 1/10/2000, § I; by Ord. 485, 6/19/2000, § 1; by Ord. 497, 11/11/2002, § 2; and by Ord. 544, 9/13/2010]
1. 
Service Increment. In addition to the monthly retirement benefit, each member who has completed in excess of 25 years of service shall receive an additional monthly pension benefit equal to $100 for each completed year of service in excess of 25 years up to a maximum of $500 per month.
2. 
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 § 1-603, Subsection 1, hereof shall continue.
3. 
Disability Benefit. If a member retires because of a total and permanent disability, he shall be entitled to receive a pension benefit equal to 70% of his salary at the time the disability was incurred, offset by social security. This benefit shall continue until his death.
4. 
Cost-of-Living. Any member who retired prior to the enactment of this Part shall have their cost-of-living adjusted based on the Consumer Price Index, not to exceed a maximum of 3% per year and their entire cost-of-living adjustment not to exceed a total of 15%. Any member who retires on or after the enactment of this Part shall be granted a cost-of-living increase; provided, however, that such cost-of-living increase shall not exceed the percentage increase in the Consumer Price Index of the year in which the member last worked; 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%. In neither of the above cases shall a cost-of-living increase(s) be granted which would impair the actuarial soundness of the plan.
5. 
Early Retirement Benefit. Each member may retire on or at any time after his early retirement date. Upon termination, the member must file with the Secretary of the Borough a written notice of his intention to elect an early retirement benefit. This benefit shall become effective as of the date of the notice or the date designated in the notice, whichever is later. The amount of the early retirement benefit shall be the actuarial equivalent of a vested retirement benefit as computed in § 1-606A. The actuarial equivalent of the vested retirement benefit shall be determined by actuarially reducing the vested retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the member's normal retirement date. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission.
[Ord. 431, 12/7/1992, Article 5; as amended by Ord. 482, 1/10/00, § II; and by Ord. 497, 11/11/2002, §§ 3, 4]
1. 
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.
2. 
Pension Benefit to Surviving Spouse and Dependent Children.
A. 
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 (i) he was already receiving a pension; (ii) he met the age and service requirements, but he had not yet retired], then a monthly pension benefit shall be provided.
B. 
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.
C. 
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 § 1-606 of this Part. 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.
D. 
In the event a member dies after completing 20 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 § 1-604, Subsection 5, of this Part. If an early retirement benefit is selected, the surviving spouse shall receive 50% of the member's monthly early retirement benefit commencing on the first day of the month following the election of this benefit.
E. 
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[1] and thereafter born to the member's spouse.
[1]
Editor's note: Ordinance 497 reads, "date."
3. 
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 that of § 1-605, Subsection 2E.
[Ord. 560, 12/10/2012, § 1]
[Ord. 431, 12/7/1992, Article 6]
If a member leaves the employ of the Borough or ceases to be a member whether by reason of his transfer, resignation or discharge, 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 § 1-603; however, a member who has completed 12 or more years of service may elect either A or B as described below:
A. 
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 East Lansdowne 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 § 1-604. Years of service shall be measured in years and completed months.
B. 
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 § 1-603. If he elects to receive the refund of his contributions plus interest, he would forfeit the pension benefit outlined in A.
[Ord. 431, 12/7/1992, Article 6]
1. 
Refund benefits becoming distributable pursuant to § 1-601 and death benefits becoming distributable pursuant to the provision of § 1-605 shall be paid in the form of a lump-sum distribution.
2. 
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 the death benefit calculated pursuant to § 1-605, Subsection 2.
[Ord. 431, 12/7/1992, Article 8]
1. 
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 1-604, 1-605, and 1-606, in accordance with the instructions received from the Council, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes.
2. 
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 person 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.
3. 
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 plan.
[Ord. 431, 12/7/1992, Article 9]
1. 
The plan shall be administered by the Council of the Borough of East Lansdowne. The Council shall make and adopt rules and regulations for the efficient administration of the plan.
2. 
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 provision of the plan, and shall provide all such data, records and documents to the professionals whose services are employed pursuant to § 1-608, Subsection 2, of this plan.
3. 
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.
4. 
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.
5. 
The Council shall make available to members, retired members and terminated members and to their beneficiaries, for examination during business hours, such records as to pertain to the person examining.
6. 
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.
7. 
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 shall be the action of the entire Council. Written minutes shall be kept of the meetings and action of the Council.
8. 
The Secretary, acting on behalf of the Council, or any four members 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.
[Ord. 431, 12/7/1992, Article 10]
1. 
The Council may appoint a committee which shall administer the plan established by this Part according to the regulations established pursuant to this Part.
2. 
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 Council (by the procedure set out herein for the committee [member] whose resignation, death or removal has created the vacancy).
3. 
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 their members to execute any document or documents on behalf of the committee. The committee may adopt such bylaws and regulations as they deem necessary for the conduct of their affairs and may appoint such accountants, counsel, actuaries, specialists or such other person as they may deem advisable for the proper administration of the plan. No such regulation, by law 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.
4. 
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 monthly.
5. 
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 Borough Council.
6. 
The committee 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.
7. 
No committee member shall incur any liability for any action or failure to act, excepting 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.
8. 
All checks, drafts, orders 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 Borough Council.
[Ord. 431, 12/7/1992, Article 11]
1. 
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.
2. 
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 employee's pension fund herein provided for.
3. 
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 judgement its best interests so require, and such discontinuance shall be without regard to this plan.
[Ord. 431, 12/7/1992, Article 12]
1. 
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; 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 a retiring officer who retired during the members participation in this plan.
2. 
In the event of termination of this plan, the Council shall allocate the assets then remaining in the fund as follows:
A. 
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 1-603 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.
B. 
Contributions with interest at a rate established by the council as provided in § 1-605 shall be refunded to any and all members 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 members or from the Commonwealth allocation, shall be distributed as the Council sees fit; provided, that such distribution is in compliance with § 1-608.
D. 
All funds in excess of the funds described in Subsections A, B, and C 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.
[Ord. 431, 12/7/1992, Article 13]
1. 
No benefit under this plan 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 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 order. Further, to the extent provided under a "qualified domestic relation order," a former spouse of a member shall be treated as the spouse or surviving spouse for all purposes under this plan.
2. 
Any person dealing with the Borough may rely upon a copy of this plan and any amendments thereto certified to be true and correct by the trustee.
3. 
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 of their beneficiaries until all of the actuarial obligations to such member or member's beneficiaries have been met.
4. 
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.
5. 
Should any provision of this plan 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.
6. 
Headings and captions provided herein are for convenience only and shall not be deemed part of the plan.
7. 
This plan shall be construed and applied under the laws of the Commonwealth of Pennsylvania where not in conflict with Federal laws which shall prevail.
[Added by Ord. 573, 4/13/2015]
1. 
Definitions.
ACT 44 PLAN
Act 44 Deferred Retirement Option Plan.
ACT 44 PLAN ACCOUNTS
Separate accounts created for the exclusive purpose of accepting monthly pension checks of Act 44 Plan participants while they are participating in the Act 44 Plan Program.
ACT 44 PLAN NOTICE
The form prescribed by the Borough and the Lodge upon which a member or officer informs the Borough of his or her irrevocable intent to participate in the Act 44 Plan Program pursuant to the terms of this section/agreement. Once submitted to the Borough and approved by the Borough, the Act 44 Plan notice is irrevocable, except as otherwise provided herein.
ACT 44 PLAN PARTICIPANT or PARTICIPANT
A member or officer who has properly submitted an Act 44 Plan notice to participate in the Act 44 Plan or which has been approved by the East Lansdowne Borough Council, and who has commenced his or her Act 44 Plan participation period.
ACT 44 PLAN PARTICIPATION PERIOD
The period from the time of the commencement of the officer's (i.e., participant's) participation in the Act 44 Plan as stated in the officer's Act 44 Plan notice which has been approved by the employer (i.e., the commencement date) until the officer's separation from employment as a police officer of the employer (i.e., the resignation date), which in no event shall be less than 12 months and shall not exceed 36 months.
ACT 44 PLAN PERIOD
The period of time during which an officer can participate in an Act 44 Plan, which in no event shall be less than 12 months or exceed more than 36 months.
ACT 44 PLAN PROGRAM
The program implemented by the Borough and Lodge pursuant to which members of the Borough's Police Department may establish Act 44 Plan accounts while continuing to provide police service for the Borough as described herein. The Act 44 Plan Program is an integral component of the plan.
BENEFICIARY or BENEFICIARIES
The individual or individuals identified by an Act 44 Plan participant to receive the balance of such Act 44 Plan participant's Act 44 Plan account in the event of the death of the Act 44 Plan participant during the Act 44 Plan participation period.
BOROUGH
The Borough of East Lansdowne, Delaware County, Commonwealth of Pennsylvania, including its elected and appointed officials. The Borough is also referred to as "employer."
FORMER ACT 44 PLAN PARTICIPANT
An Act 44 Plan participant who is currently receiving his or her pension following his or her resignation date.
LODGE
The Delaware County Lodge No. 27 of the Fraternal Order of Police, the duly recognized collective bargaining unit representing all eligible full-time police officers of the East Lansdowne Borough Police Department.
MEMBER or OFFICER
A duly sworn police officer employed by the Borough.
PLAN ADMINISTRATOR
The individual(s) charged with supervising the administration of the plan.
PLAN or PENSION PLAN
The East Lansdowne Borough Police Pension Plan.
RESIGNATION DATE
The date specified in the participant's irrevocable Act 44 Plan notice approved by the Borough on which the member or participant shall resign from employment with the East Lansdowne Borough Police, which shall be no less than 12 months and no more than 36 months from the commencement of the officer's Act 44 Plan participation period.
2. 
Eligibility. Any member who has reached 52 years of age with at least 25 years of service may elect to become an Act 44 Plan participant on the first day of any month following the officer's 52nd birthday and attaining 25 years of service. Eligibility shall be for officers employed on January 1, 2014, provided the officers make a written election and begin DROP participation within 90 days from the officer's superannuation retirement date. The ninety-day period from an officer's superannuation retirement date shall be a mandatory enrollment period to participate in DROP. The mandatory enrollment period shall not be extended either expressly or impliedly. Officers who do not elect to participate and enter DROP within the mandatory enrollment period shall not be eligible to participate in DROP. In addition, in order to be eligible to participate in the Act 44 Plan, an officer must:
A. 
Written Act 44 Plan Notice. An officer electing to participate in the Act 44 Plan must complete and execute an Act 44 Plan notice. The Act 44 Plan notice must be signed by the officer and notarized and submitted to the Borough at least 45 days prior to the date on which the officer wishes his/her Act 44 Plan participation period to commence or a shorter period of time if approved by the Borough in its sole discretion, which shall be specified on the Act 44 Plan notice. The Act 44 Plan notice shall include a notice to the Borough by the member that the member shall resign from employment with the East Lansdowne Borough Police Department effective on a specific date (the "resignation date") which shall be no less than 12 months and no more than 36 months from the commencement of the officer's Act 44 Plan participation period. Once approved by the Borough, an officer's resignation date shall be irrevocable. An officer shall cease to work as a police officer on the officer's resignation date, unless the Borough terminates or honorably discharges the officer prior to the resignation date.
In addition to the above information, the Act 44 Plan notice shall also advise the employee of the following: (1) an explanation of the participant's rights and obligations while in the Act 44 Plan participation period; (2) that, as a condition of Act 44 Plan 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 Plan participation commences; and (3) that the Act 44 Plan participant's service while in the Act 44 Plan will not count as pension service nor will it entitle the participant to any service increment benefits to which the participant was not entitled prior to commencing Act 44 Plan participation. An Act 44 Plan 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.
B. 
Finality of Election and Approval by Borough. All retirement documents required by the Police Pension Plan Administrator must be filed and presented to the Borough for approval of retirement, participation in the Act 44 Plan and payment of pension benefits. Once the Borough approves an Act 44 Plan notice, it is irrevocable. Likewise, once an Act 44 Plan participant enters the Act 44 Plan, the participant may not subsequently leave and then reenter the Act 44 Plan, even if the employee separates from employment and subsequently begins employment with the Borough again.
C. 
Early Resignation. During an Act 44 Plan participation period, an Act 44 Plan participant may resign from employment earlier than his or her stated resignation date set forth in an Act 44 Plan notice, which shall terminate his/her participation in the Act 44 Plan on such earlier resignation date.
3. 
Pension Contributions. After an officer's Act 44 Plan participation period commences, the officer shall not be required to make any contributions to the plan during his/her Act 44 Plan participation period.
4. 
Accrual of Nonpension Benefits. After an officer elects to participate in the Act 44 Plan Program, all other contractual benefits shall continue to accrue and be paid in accordance with the collective bargaining agreement, with the exception of those provisions relating to the plan. The Act 44 Plan participant's nonpension benefits, if any, to which he or she is entitled during retirement, after the Act 44 Plan participation period ends, if any, shall be those in effect on the Act 44 Plan participant's resignation date.
5. 
Service-Connected Disability During Act 44 Plan Period. If an Act 44 Plan participant becomes temporarily incapacitated due to a service-connected injury during his or her Act 44 Plan participation period, that police officer shall continue to participate in the Act 44 Plan as if fully employed. The police officer shall receive disability pay in the same amount as disabled police officers that are not participating in an Act 44 Plan. In no event shall a police officer on temporary disability have the ability to draw from his Act 44 Plan account. However, notwithstanding any other provision in this subsection, 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 Plan 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 an Act 44 Plan participant becomes eligible for a service-connected disability pension and his employment is terminated due to an inability to continue in service on grounds that render him eligible for a service-connected disability pension, the monthly normal retirement benefit of the Act 44 Plan participant may be reclassified as being on account of a service-connected disability. In no event shall an Act 44 Plan participant's monthly retirement benefit be recalculated. The Act 44 Plan participant's monthly retirement benefit shall remain 50% as calculated at the time of entry into the Act 44 Plan.
6. 
Death During Act 44 Plan Period. If an Act 44 Plan participant dies during the Act 44 Plan participation period, his or her survivor as defined by the plan shall be entitled to receive benefits and his or her Act 44 Plan account shall be handled according to the following:
A. 
If an Act 44 Plan participant dies during his or her Act 44 Plan participation period and the killed-in-service death benefit is legally payable, the Act 44 Plan participant's legal beneficiary shall have the same rights as the member to withdraw the account balance, and the legally applicable killed-in-service pension benefit shall be payable to the Act 44 Plan participant's survivors, and future monthly pension payments under the plan shall cease.
B. 
If death occurs during the Act 44 Plan period but the killed-in-service death benefit is not legally payable (pursuant to the limitations and requirements of Act 51 of 2009), the Act 44 Plan participant's Act 44 Plan notice shall be revoked, the designated beneficiary shall be entitled to a lump-sum payment of the Act 44 Plan account balance, and the participant's survivors as defined by the plan shall receive the survivor's benefit as defined by the plan.
7. 
Monthly Pension Benefit Calculation and Limitation on Pension Accrual. After the commencement date set forth in an Act 44 Plan notice, the officer shall no longer earn or accrue additional years of service for pension calculation purposes under the plan. No benefit increases that may occur after an Act 44 Plan participant's commencement date, including bargained pension enhancements, mandated pension enhancements through arbitration or pension enhancements mandated by law, will apply to the Act 44 Plan participant and shall not increase the Act 44 Plan participant's frozen pension under the plan, as calculated on the commencement date of the Act 44 Plan participation period as stated in the Act 44 Plan notice. For the period beginning on the commencement date and ending on the officer's or member's resignation date, the participant's monthly pension payment shall not be paid to him or her but shall instead be transferred into the participant's Act 44 Plan account. The average monthly compensation of the participant for pension calculation purposes shall remain, as it existed on the commencement date as stated in the Act 44 Plan notice. Earnings or increases in earnings thereafter shall not be recognized or used for the calculation or determination of any benefits payable by the plan. The pension benefit payable to the member shall increase only as a result of cost-of-living adjustments that may be applicable and in effect under the plan on the commencement date of the member's participation in the Act 44 Plan Program or by applicable cost-of-living adjustments specifically granted to Act 44 Plan participants or retirees therefore.
8. 
Maximum Participation. The maximum period of participation in the Act 44 Plan Program is 36 months. On the participant's resignation date, his or her employment with the Borough (and Act 44 Plan participation period) shall terminate automatically.
9. 
Act 44 Plan Pension Payments. Upon the commencement date of the officer's or member's entry into the Act 44 Plan Program, an Act 44 Plan participant's service and average monthly compensation (as each is defined under the plan) will be frozen, and his or her pension payment will be calculated as if they retired and ceased employment with the employer on the effective date of such officer's Act 44 Plan participation period as stated in the Act 44 Plan notice. The monthly pension payments that would have been made on and after the commencement date and prior to the Act 44 Plan participant's resignation date shall be credited to the Participant's Act 44 Plan account under the pension plan.
10. 
Accumulation of the Act 44 Program Account.
A. 
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 Act 44 Plan, accumulate to the benefit of that officer and be accounted for on that police officer's Act 44 Plan account. Participants shall not have the option of self-directed investment of their individual Act 44 Plan account while in the Act 44 Plan. 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%.
B. 
The Borough shall not be responsible for any investment loss incurred in the Act 44 Plan accounts of each Act 44 Plan participant or for the failure of an investment to earn a specific or expected return or to earn as much as any other investment opportunity.
C. 
All investment and administrative costs shall be charged against the participant's Act 44 Plan accounts. The Lodge and the participants agree that any costs or fees associated with the management of the Act 44 Plan accounts shall be paid directly from the Pension Fund and not by the Borough.
D. 
The Act 44 Plan account established for each participant will be considered a tax-deferred account maintained as part of the plan and, as a result, will be subject to the restrictions established under Section 401(a) et seq. of the Internal Revenue Code ("code"). As a condition of participation in the Act 44 Plan, both the Lodge and the participants collectively and individually acknowledge that the Borough shall have no responsibility for the financial impact and/or consequences of an officer's participation in the Act 44 Plan, including, but not limited to, the investment of the balance of an officer's Act 44 Plan account, the performance of any such investments, or any tax consequences flowing from participation in the Act 44 Plan Program. The parties also acknowledge that Act 44 Plan accounts shall have no guaranteed interest or rate of return and that the employer shall not in any way be responsible for any specific guaranteed rate of return.
E. 
The parties further acknowledge that, as a condition of participation in the Act 44 Plan, if the Internal Revenue Service or any other governmental agency, department or branch of the federal, state or local government determines that the Act 44 Plan accounts do not conform to the qualification requirements of the Internal Revenue Code with respect to the governmental defined benefit pension plans under Section 401(a) et seq. of the code, including, without limitation, any determination that the Act 44 Plan accounts are subject to the limitations of Section 415 of the code with respect to defined contribution plans, such Act 44 Plan accounts shall be amended to comply with such law, but all costs incurred by such amendment shall be borne by the Act 44 Plan participant.
11. 
Distribution Options. Commensurate with Act 44 Plan Program participation, a member must make an election on forms designated by the Borough of the payout option(s) desired upon termination of the Act 44 Plan period. This election may be changed at any time before termination. The distribution options are as follows:
A. 
A lump-sum cash distribution.
B. 
Rollover to another eligible retirement plan (as permitted by law) or to an IRA.
12. 
Beneficiary Designation. Commensurate with Act 44 Plan Program participation, a member must make an election, on forms designated by the Borough, of the beneficiary or beneficiaries they intend to receive the balance of the member's Act 44 Plan account in the event of the member's death before such balance has been distributed.
13. 
Amendment. Any amendments to the Act 44 Plan shall be consistent with the provisions covering the deferred retirement option plan set forth in any applicable collective bargaining agreement and shall be binding upon all future Act 44 Plan participants and upon all Act 44 Plan participants who have balances in their Act 44 Plan accounts. The Act 44 Plan may only be amended by a written instrument signed by an authorized representative of the Borough and the Lodge, not by any oral agreement or past practice.
14. 
Interpretation of Provisions.
A. 
This document shall be interpreted under the laws of the Commonwealth of Pennsylvania and applicable federal law. An officer's election to participate in the Act 44 Plan Program shall in no way be construed as a limitation on the Borough's right to suspend or terminate an officer for just cause or to grant the officer an honorable discharge based upon a physical or mental inability to perform his or her duties. Nothing provided hereunder shall be construed as a change to the parties' practice of calculating pensionable compensation, and except for the ability to establish an Act 44 Plan account and participate in the Act 44 Plan Program, nothing herein is intended to create new pension benefits of any kind which did not exist as of January 1, 2014.
B. 
Nothing provided hereunder shall guarantee any officer or Act 44 Plan participant a specific term of employment. All Act 44 Plan participants shall be subject to the same terms and conditions of employment (except those relating to benefits under the plan and retiree benefits), rules and regulations and disciplinary procedures as other officers and members who are not Act 44 Plan participants.
C. 
Except as provided in this Act 44 Plan document, all Act 44 Plan participants shall be considered to be employees of the Borough and subject to the same terms and conditions of employment contained in all Borough policies, directives, and orders as well as in the collective bargaining agreement between the Borough and the Police, just as all other police officers employed by the East Lansdowne Borough Police Department who are not Act 44 Plan participants.
15. 
Compliance with Future Law. The Borough and the Lodge and all current and future Act 44 Plan participants (as a condition of participating in the Act 44 Plan) recognize that the provisions of the Act 44 Plan 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 this section shall not be affected thereby. It is expressly declared as the intent of the Borough that the Act 44 Plan would have been adopted had such unconstitutional or illegal provision or provisions not been included herein. In the event that the Act 44 Plan, or any part thereof, is declared invalid or illegal by a court of competent jurisdiction or through an administrative determination of the Office of the Auditor General, the police officers shall have the right to bargain in accordance with Act 111 over deletion of this benefit. It is expressly understood that this shall not involve bargaining over a replacement provision.