[Res. 338, 2/28/1974, Art. 1; as amended by Ord. 12-90-332,
12/13/1990, 1; by Ord. 10-97-434, 2/23/1997, § I; and by
Ord. 01-2013-581, 1/10/2013]
The governing body of the Township, namely, the Board of
Commissioners.
In General. Except as provided in Subsections B through E, the "compensation" of a participant for a given year, month, or other period for which a determination is being made, shall mean the participant's total federal wages, tips, and other compensation (as required to be so reported on IRS Form W-2) from the employer actually paid, made available, or includible in gross income for the year, month, or other determination period.
Employee Contributions to this Pension Plan. "Compensation"
shall also include amounts not currently includible in the participant's
gross income by reason of the application of Internal Revenue Code
§ 414(h)(2) (relating to employee contributions to governmental
plans that are picked up by the employing unit and thus are treated
as employer contribution).
Employee Contributions to Health Coverage and Payments for Waivers
of Health Coverage. "Compensation" shall also include employee contributions
towards employer-provided health/medical coverage in accordance with
the provisions of the collective bargaining agreement for the Township's
police officers as in effect from time to time, even if not includible
in the participant's federal gross income by reason of the application
of Internal Revenue Code § 125 (relating to cafeteria plans)
or other provisions of the Code. However, "compensation" shall not
include payments made to a participant for waiving health/medical
coverage for himself/herself and/or for his/her spouse or dependents,
even though such payments may be includible in the participant's income
for federal income tax purposes.
[Amended by Ord. 02-2017-610, 2/23/2017]
Heart and Lung Act Payments. "Compensation" shall also include
amounts not currently includible in a participant's federal gross
income but paid as income replacement during a period of temporary
disability under the Heart and Lung Act, 53 P.S. § 637.
Lump Sum Payments for Accumulated Unused Leave. The "compensation"
of any person hired after the June 29, 2005, Act 111 Arbitration Award
in the grievance arbitration between the Township and the Salisbury
Township Police Officers Association shall only include a lump-sum
payment upon retirement for accumulated unused leave (e.g., vacation,
sick, or personal leave) to the extent it was actually earned during
the final three years of employment. This provision is intended to
comply with the Pennsylvania Auditor General's finding in an audit
of the Township's police pension plan.
The payroll deductions made monthly from the compensation
of the participant and paid to the Fund.
The Township.
The Police Pension Fund established by this Part 6.
The value of any participant's benefits which shall accrue
by virtue of service in the aggregate rendered subsequent to the enactment
of this Part 6.
The Ordinance adopted by the Board on February 28, 1974,
to establish a Police Pension Fund for full-time policemen employed
by the Township.
Every person duly appointed from time to time by the Township
as a full-time policeman working at least 40 hours a week at a definite
salary.
This Police Pension Plan.
Total service, not necessarily continuous. Service within
any period of continuous service as a full-time police officer shall
begin on the first day the person performs duties as a full-time police
officer of the employer and continue until the person incurs a separation
from service as a full-time police officer of the employer.
The cessation of services by the participant for any reason,
including disability, death, resignation and employer termination.
Voluntary leaves of absence without pay shall not be a "Termination,"
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," and such leaves may be
computed in the total service in the aggregate for pension benefit
purposes if the Township 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 such participant herein. The inclusion
of this definition herein shall not be construed to establish the
right to take leaves, with or without pay, and the granting of any
such leaves shall remain in the sole discretion of the Board.
The Township of Salisbury, Lehigh County, Pennsylvania.
The present value of any participant's benefits accrued prior
to the enactment of the "Ordinance" by virtue of his prior service
in the aggregate.
[Res. 338, 2/28/1974, Art. 2; as amended by Ord. 11-88-303,
11/22/1988; by Ord. 12-90-332, 12/13/1990, §§ 2, 3,
4 & 5; by Ord. 3-92-352, 4/23/1992, § 1; by Ord. 10-97-434,
2/23/1997, § II; by Ord. 04-2001-489, 4/26/2001, § I;
by Ord. 03-2004-510, 3/11/2004; by Ord. 12-2006-528, 12/14/2006; by
Ord. 06-2007-536, 6/28/2007; by Ord. 04-2010-557, 4/22/2010; and by
Ord. 01-2013-581, 1/10/2013]
1.
Eligibility for Normal Retirement.
A.
Every participant in the fund may retire from active duty, provided
that:
B.
(Reserved)
C.
Every participant who has retired from active duty shall be subject to service from time to time as a police reserve in case of riot, tumult or the preservation of the public peace until such time as he shall be unfit for such service, when he shall be finally discharged by reason of age or disability. This section shall not affect the purpose of Subsection 1B of this § 1-602 to require retirement age at age 65, nor shall said Subsection 1B bar any participant from service as a police reserve.
2.
Normal Retirement. Each participant who shall complete the age and service eligibility requirements as set forth in § 1-602, Subsection 1, shall, upon retirement, receive a pension for life payable in equal monthly installments in an amount equal to 1/2 of the compensation paid to a participant as a full-time police officer for his/her last 36 months of employment, divided by 36. In addition, said plan shall provide for a service increment benefit to said retired officers. Effective January 2, 2007, a police officer who retires with service in excess of 25 years shall have his pension increased by $100 per month for each full year of service in excess of 25 years. The maximum service increment benefit for service over 25 years shall be $500 per month, in accordance with Act 600.
3.
Death Benefits.
A.
Qualification for Death Benefit. The beneficiaries (as defined in Subsection 3D) of a police officer shall be entitled to receive a death benefit if the police officer dies:
(1)
After he/she has begun receiving benefits under a normal retirement
benefit; or
(2)
After he/she has begun receiving disability retirement benefits,
provided that such benefits did not terminate prior to his/her death
because he/she ceased to be disabled; or
(3)
While still employed by the Township and after having met the
age and service requirements for normal retirement; or
(4)
Prior to commencement of any retirement benefit under this section
and was vested in his/her accrued benefit.
B.
Death Benefit-Form and Amount of Payments. The death benefit shall
be paid in a series of monthly payments:
(2)
Beginning on the first day of the month following the expected normal retirement date of the deceased police officer and described in Subsection 3A(4); and
(3)
Continuing on the first day of each succeeding month until there
is no person who qualifies as a beneficiary;
C.
(Reserved)
D.
Beneficiaries.
(1)
In General. Any given payment in the series of payments which
constitutes the death benefit shall be paid to the person(s) who is/are
a beneficiary as of the date for which the payment is being made.
(2)
Definition. For purposes of the death benefit, the beneficiary
of a police officer shall be his/her spouse. If there is no spouse
or if the spouse survives and subsequently dies, then the death benefit
shall be payable to the police officer's child or children who have
not yet attained age 18 (or are attending college and have not yet
attained age 23). For purposes of this subsection, a person is attending
college if he/she is registered at an accredited institution of higher
learning and is carrying a minimum course load of seven credit hours
per semester. The death benefit shall be payable to eligible children
in equal shares.
E.
Death Benefit Return of Accumulated Contributions.
(1)
In General. If a police officer:
(a)
Dies at a time when his/her beneficiaries are not eligible to
receive a death benefit, or has no beneficiaries; and
(b)
Has not received any payments under a normal retirement benefit,
disability retirement benefit, or vested benefit; then the Plan shall
distribute an amount equal to the amount of the police officer's accumulated
contributions plus interest at the rate of 5% per annum to the police
officer's named beneficiaries. If the police officer failed to designate
a beneficiary or if no designated beneficiary shall have survived
the police officer, the distribution shall be made to the estate of
the police officer.
F.
No Other Death Benefits. Except as provided in this section, no police
officer or former police officer and no estate, heir, or beneficiary
of any police officer or former police officer shall receive any payment
or benefit under this Plan or from the Trust due to the death of a
police officer or former police officer.
4.
Designation of Beneficiaries. Each participant shall have the right
to designate the beneficiary or beneficiaries for pre-retirement death
benefits incidental to policies of insurance purchased primarily to
fund the participant's pension. Provided, however, that ownership
of such policies shall remain in the Township and shall be endorsed
to prevent the assignment of ownership to the insured. If the participant
shall fail to name a beneficiary, such benefits that would have accrued
to his beneficiary shall be paid to the participant's estate. All
designations of beneficiaries shall be made in writing and each participant
may from time to time change his designation of beneficiary or beneficiaries.
5.
Disability Retirement Benefit.
A.
If a police officer shall qualify for a permanent and total service-related
disability benefit under the provisions of the Plan, such police officer
shall be eligible to receive a disability benefit from the Plan.
B.
In the event of permanent and total service-related disability, benefits shall become payable to an injured police officer each month in an amount equal to 75% of the compensation paid to the officer as a full-time police officer during the last 36 months of service immediately preceding the officer's last day of actual service, divided by 36 (or, if greater, 50% of the police officer's monthly salary at the time the disability was incurred), provided that the police officer who receives benefits for the same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall have the disability benefit offset or reduced by the amount of such social security benefits. For purposes of this Subsection 5B alone and not for the purposes of Subsection 2 or any other section of this plan, and without any effect on the definition of the term "compensation," a police officer's "monthly salary" on a given date is the officer's base hourly rate of compensation as of that date (without any premium for shift differential, overtime, special duty pay, or any other premium or multiplier), multiplied by 2,080 and divided by 12.
[Amended by Ord. No. 02-2014-585, 2/27/2014]
C.
Total and permanent disability means a physical or mental condition
of a member resulting from bodily injury or disease or mental disorder
contracted, without fault or misconduct on such police officer's part,
from the performance of such officer's duties in the Police Department,
which renders the member incapable of continuing in the employment
as a police officer for the Township.
D.
A determination by the Township or its designated agent that a police
officer is totally and permanently disabled shall be required for
such member to receive a disability benefit under the Plan. Before
making such determination, the Township or its designated agent shall
secure the opinion of one or more practicing physicians licensed to
practice medicine in the Commonwealth of Pennsylvania. The Township
shall have the right to require a physical examination and a redetermination
at its option.
6.
Non Alienation of Benefits and Vesting.
A.
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.
B.
All benefits granted herein shall vest in the participant upon completion
of the requirements for eligibility, and his benefits shall continue
in the amount and in the form in which he first became entitled to
them.
C.
A vested benefit as described in this section is hereby authorized
provided such vested benefit does not impair the actuarial soundness
of the Fund as determined by an approved actuary. For the purposes
of this ordinance "approved actuary" means a person who has at least
five years of actuarial experience with public pension plans and who
is either enrolled as a member of the American Academy of Actuaries
or enrolled as an actuary pursuant to the Federal Employee Retirement
Income Security Act of 1974.
|
Under the provisions of such benefit, should a police officer, before completing superannuation retirement age and service requirements but after having completed 12 years of total service, for any reason cease to be employed as a full-time police officer by the Township, he or she shall be entitled to vest his or her retirement benefits by filing with the Board of Commissioners within 90 days of the date he or she ceases to be full-time police officer, a written notice of his or her superannuation retirement date she had continued to be employed as a full-time police officer, he or she shall be paid a partial superannuation retirement allowance determined by applying the percentage his or her years of service bears to the years of service which he or she would have rendered had he or she continued to work until his or her superannuation retirement date to the gross pension established by § 1-602 of this Part using, however, the compensation during the appropriate period prior to his or her termination of employment. Such pension or retirement benefits for any month shall be the sum of Subsections 1 through 3 of § 1-602 of this Part to the extent necessary to bring the total benefits in any month up to his or her partial superannuation retirement allowance as outlines herein. It is the intention of this section to provide a vested benefit as and to the extent authorized by Act No. 1979-99.
|
7.
Military Service Provisions.
A.
Nonintervening Military Service. Members who have performed military
service prior to employment with the Township shall be permitted to
buy back their service time, consistent with the present provisions
of Act 600.
(1)
A police officer may purchase military service time to be applied
to his/her pension pursuant to the terms and conditions of 53 P.S.
770. Every participant of the Police Pension Plan and of the Township,
who has not served in such employment prior to entering the military
service of the United States of America, shall be entitled to full
service credit for each year of military service or a fraction thereof,
not to exceed five years upon purchasing of credit for such nonintervening
military service to be computed by applying the average normal cost
rate for Borough and Township Police Pension Plans as certified by
the Public Employee Retirement Commission, but not to exceed 10%,
to the participant's averaged annual rate of compensation over the
first three years of municipal service and multiplying the result
by the number of years and fractional part of a year of creditable
nonintervening military service being purchased together with interest
at the rate of 4 3/4% compounded annually from the date of initial
entry into municipal service to the date of payment.
(2)
Participants of the Police Pension Plan shall be eligible to
receive military service credit as provided in this section provided
that he/she is not entitled to receive, eligible to receive now or
in the future, or is receiving retirement benefits for such service
under a retirement system administered and wholly or partially paid
for, by any other governmental agency with the exception of a participant
eligible to receive or receiving military retirement pay earned by
a combination of active duty and nonactive duty with a Reserve or
National Guard component of the armed forces which retirement pay
is payable only upon the attainment of a specified age and period
of service under 10 U.S.C. Ch. 67 (related to retired pay for nonregular
service).
B.
Intervening Military Service.
(1)
With Six Months or More of Prior Service. Members who have been
a regularly appointed employee of the Department for a period of six
months and who thereafter shall enter into the military service of
the United States shall have credited to his or her employment record
for pension or disability benefits all of the time spent by him or
her in such service of the United States military if such person returns
or has heretofore returned to his or her employment within six months
after his or her separation from the service.
(2)
With Less Than Six Months of Prior Service. Members who were
employed by the Department for less than six months before leaving
to enter the military service of the United States shall have such
military service credited for the pension or disability benefits,
provided:
(a)
The person returns to employment with the employer (or any related
employer) at a time when the employer (or any related employer) is
legally obligated to reemploy the person under the Uniformed Services
Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4301
et seq., and any amendments, supplements, or successor legislation;
and
(b)
Such person pays to the plan the amount of employee contributions
that such person would have had to make had he been employed by the
employer during the time he was in military service. Any payment to
the plan shall be made during the period beginning with the date of
reemployment and whose duration is three times the period of the person's
service in the military, not to exceed five years.
[Res. 338, 2/28/1974, Art. 3; as amended by Ord. 11-88-303,
11/22/1988; by Res. 12-90-698, 12/13/1990; by Ord. 12-90-1990, 12/13/1990, §§ 6 &
7; by Ord. 03-2004-501, 3/11/2004; by Ord. 04-2010-557, 4/22/2010;
and by Ord. 01-2013-581, 1/10/2013]
1.
Contributions of Participants. Each participant shall be required
to contribute to the fund not less than 5% nor more than 8% of his/her
monthly compensation. Such contributions may be reduced or eliminated
on an annual basis by resolution or ordinance at the discretion of
the Township Board of Commissioners. Such contributions shall be reduced
or eliminated each year to the extent required under the then-current
collective bargaining agreement between the Township and the Salisbury
Township Police Officers Association.
|
Effective January 1, 2013, the employee contributions under this Subsection 1 which are made via payroll deduction, although designated as employee contribution, shall be treated for federal income tax purposes as salary reductions rather than deductions and thus as being paid by the employer as "pick up" contributions under Internal Revenue Code § 414(h)(2). Under current law, such contributions are not subject to federal income tax at the time of the contributions, but only at the time when plan benefits are paid. (However, these amounts are considered "wages" subject to current FICA taxation and also current income for Pennsylvania state and local income taxes.) A participant shall not have the option of receiving the amount of employee contributions required under this Subsection 1 directly instead of having them paid by the employer to the plan. This subsection shall be construed to include all requirements necessary to satisfy the provisions of Internal Revenue Code § 414(h)(2).
|
2.
Contributions of the Township.
A.
Past Service Liability. It shall be the obligation of the Township
to fund any unfunded past service liability as determined by the actuary.
Such liability may be funded over a period not to exceed 30 years.
B.
Future Service Cost. The Township 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
(if any). The maintenance of the actuarial soundness shall be the
responsibility of the Township.
C.
Administrative Expenses. It shall be the obligation of the Township
to pay the administrative expenses incurred in the management of the
fund and plan out of the police pension fund.
3.
Allocation of Commonwealth Funds. The payments made by the State
Treasurer to the Township 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 policemen shall
be used and allocated as required or permitted by law.
4.
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's and the Township's portion of the Future Service
Cost.
5.
Allocation of Assets of Existing Pension Fund(s). The assets of the
predecessor Pension Fund which had been established by an ordinance
enacted by the Township on February 12, 1959, have already been transferred
to and made a part of the Fund.
[Res. 338, 2/28/1974, Art. 4; as amended by Ord. 12-90-332,
12/13/1990, § 8; and by Ord. 03-2004-510, 3/11/2004]
Any participant who, for any reason whatsoever, shall be ineligible
to receive a pension after having contributed to the Fund, shall upon
discontinuance of his/her employment with the Township's police force,
for whatever reason, be refunded all such contributions, as well as
any contributions made to any predecessor fund whose assets have been
transferred to this fund, together with simple interest at the rate
of 5% per annum on the amount of said contributions. Said interest
shall be calculated on a quarterly basis and all contributions made
in any quarter shall be presumed to have been made on the first day
of the quarter.
[Res. 338, 2/28/1974, Art. 5]
1.
Neither the establishment of the Fund nor this Plan, 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 Township, or
any officer or employee thereof, or the Board, except as herein provided.
Under no circumstances shall the Fund created hereby constitute a
contract for continuing employment for any participant or in any manner
obligate the Township to continue or discontinue the services of a
participant.
2.
The Fund and this Plan have been established and shall be maintained
by the Township in accordance with the laws of the Commonwealth of
Pennsylvania. The Fund and Plan shall continue for such period as
may be required by such laws and should such laws provide that the
Township may, by its own action, discontinue the Fund, the Township
reserves the right to take such action, in its sole and absolute discretion.
Upon termination, the Township shall have no liability hereunder other
than that imposed by law.
[Res. 338, 2/28/1974, Art. 6]
All investments of the assets of the Fund shall be determined
by the Board in accordance with applicable law. The Township may purchase
annuities or other contracts of insurance which provide a cash value
with which to fund pensions and to provide other benefits provided
for under this Plan.
[Res. 338, 2/28/1974, Art. 7]
1.
Administration to be Vested in Board.
A.
The administration of this Plan shall be vested in the Board which
may, in its discretion, appoint a Police Pension Committee and delegate
to such Committee such duties and responsibilities with respect to
the operation of the Plan as it shall determine.
B.
The Board may employ at suitable compensation such attorney, agents,
and employees, including an actuary or actuaries, as it may deem necessary
in administering this Plan. All acts and determinations of the Board
shall be recorded by the Township Secretary, and all records, together
with such other documents as are required for the administration of
the Plan, shall be preserved in the custody of the Secretary.
C.
The Board shall have complete control of the administration of the
Plan and shall have all powers necessary to enable it properly to
carry out its duties, including, but not limited to, the power to
construe this Part 6 and the Plan, to determine all questions relating
to eligibility of participants, and to authorize all disbursements
for benefits to participants and beneficiaries. The decisions of the
Board on all matters within the scope of its authority shall be final
and binding on all parties.
2.
Liability of Board Members. The members of the Board shall be free
from all liability for their acts and conduct in the administration
of the Plan except for willful misconduct, and the Township hereby
agrees to indemnify and save harmless each member of the Board against
any loss or liability by reason of his acts and conduct in his official
capacity, except as aforesaid.
[Res. 338, 2/28/1974, Art. 8]
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 vested benefits or be contrary
to existing law.
[Res. 338, 2/28/1974, Art. 9]
This Plan shall be construed according to the laws of the Commonwealth
of Pennsylvania, and all provisions hereof shall be administered according
to the laws of said commonwealth. Whenever 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, and vice versa. Headings
of sections and paragraphs of this instrument are inserted for convenience
of reference. They constitute no part of this Plan are not to be considered
in the construction hereof.
[Res. 338, 2/18/1974, Art. 10]
This amended Plan repeals and supersedes the "Police Pension
Plan of the Township of Salisbury" adopted by the Board by Resolution
dated December 14, 1967, except for Article I, Section 1(d), thereof
which transferred all funds and assets of the Police Pension Fund
established by Ordinance enacted February 12, 1959, to the Fund. This
Amended Plan does not establish a new Fund but is merely an implementation
of the Fund established by the Ordinance.
