[Ord. 314, 11/28/1958, § 1; as amended by Ord.
545, 12/3/1984, § 1; by Ord. 571, 5/4/1987, § 1;
by Ord. 612, 9/8/1992, § 1; by Ord. 664, 10/22/1997, § 1;
and by Ord. 787-11, 6/27/2011, § 1]
Under the provisions of the Act of May 29, 1956, P.L. 1804,
as amended by the Act of July 10, 1957, Act No. 358, and any other
statutes now or hereafter pertaining or applicable thereto and any
ordinances that may be lawfully enacted for the purposes hereof, there
is hereby established a police pension fund or pensions annuities,
hereafter referred to as the "fund." The fund shall be derived from
the following sources:
A.
Police officers shall pay into the fund, monthly, an amount equal
to not less than 5% nor more than 8% of monthly compensation, if not
covered by Social Security.
B.
Borough Council may, on an annual basis, by ordinance or resolution,
reduce or eliminate payments into the fund by police officers. If
the modification to the pension plan contributions does not impair
the actuarial soundness of the plan as contemplated by the Municipal
Pension Plan Funding Standard and Recovery Act and the Police Pension
Fund Act.
C.
Any and all annual appropriations made by the Borough made to said
fund.
D.
Monies received by the Borough from payments made by the State Treasurer
to the Borough Treasurer from the monies received from taxes paid
upon premiums by foreign casualty insurance companies for purposes
of pension retirement for policemen.
E.
Any money or property, real, personal or mixed, received by the Borough
police pension fund by gift, grant, devise or bequest, nevertheless
in trust for the benefit of such fund and the care, management and
investment and disposal of such trust funds or property shall be vested
in the person or persons having the management of such police pension
fund and the said trust funds shall be governed thereby subject to
such directions not inconsistent therewith as the donors of such properties
and funds may prescribe.
[Ord. 314, 11/28/1958, § 2; as amended by Ord.
612, 9/8/1992, § 2]
1.
Every officer or member of the police force of the Borough of Hamburg
who shall have served a minimum period of total service of not less
than an aggregate of 25 years and shall have reached the age of 50
years may be retired from active duty; provided, any person who was
a member of the police force prior to the effective date of the Act
of 1965, P.L. 643, may retire after a period of total service of 20
years after having attained the age of 60 years.
2.
Persons so retired shall be subject to service from time to time
as a police reserve in case of riot, tumult or preservation of the
public peace until such time as they become unfitted for such service
when they may be finally discharged by reason of age or disability.
While on duty as police reserves they shall be paid as wages, in addition
to their regular pension, such sum as the Borough may in each case
determine.
[Ord. 314, 11/28/1958, § 3; as amended by Ord.
545, 12/3/1984, § 2; by Ord. 571, 5/4/1987, § 1;
by Ord. 612, 9/8/1992, § 3; by Ord. 689, 3/13/2000; and
by Ord. 787-11, 6/27/2011, § 2]
1.
Monthly pensions or retirement benefits payable to the police officers
shall be computed on the basis of 1/2 the monthly average salary over
the last 36 months of such member during his employment as a police
officer.
2.
There shall be added to this sum a service increment of $100 per
month for police officers who have served for 26 years or more, as
set forth in Exhibit I to the 1999 Actuarial Study for the Borough
of Hamburg Police Pension Plan, performed pursuant to the laws of
the Commonwealth of Pennsylvania and the regulations of the Office
of the Auditor General of the Commonwealth of Pennsylvania, which
actuarial study is incorporated herein by reference as though the
same were set forth herein at length, and a true and correct copy
of which is available at the Borough Offices.
3.
The aforementioned pension or retirement benefits for any month shall
be computed in accordance with the Acts of Assembly of the Commonwealth
of Pennsylvania, and the regulations of the Office of the Auditor
General of the Commonwealth of Pennsylvania, setting forth the method
of computation.
4.
As used in this Section, the term "monthly average salary" shall
mean the fixed amount paid by the Borough to the police officer at
periodic intervals over a month's time. Such term shall not include
overtime earnings, court pay and/or holiday pay.
[Ord. 314, 11/28/1958, § 4; as amended by Ord.
787-11, 6/27/2011, § 3]
1.
Disability Benefit. Any Borough police officer who becomes totally
and permanently disabled, as determined by Borough Council, through
injuries received or disease contracted while in the performance of
his/her duties and as a direct result thereof, without fault or misconduct
on his/her part, shall be eligible to receive a disability benefit
upon retirement equal to 50% of the officer's base salary at
the time the disability was incurred.
2.
Survivor Benefit (Post-Vesting). The surviving spouse of a member
of the police force or member who retires on pension who dies or if
no spouse survives or if he or she survives and subsequently dies,
then the child or children under the age of 18 years or, if attending
college, under or attaining the age of 23 years, of a member of the
police force or a member who retires on pension who dies, shall, during
her lifetime in the case of a surviving spouse or until reaching the
age of 18 years or, if attending college, under or attaining the age
of 23 years in the case of a child or children, be entitled to receive
a pension calculated at no less than 50% of the pension the member
was receiving or would have been receiving had he been retired at
the time of his death.
3.
Survivor Benefit (Pre-Vesting). The surviving spouse of a member
of the police force who dies before his or her pension has vested
or if no spouse survives or if he or she survives and subsequently
dies, the child or children under the age of 18 years, or if attending
college, under or attaining the age of 23 years, of a member of the
police force shall be entitled to receive repayment of all money which
the member invested in the pension fund plus interest or other increases
in value of the member's investment in the pension fund, unless
the member police officer has designated another beneficiary for this
purpose.
[Ord. 314, 11/28/1958, § 5]
Payments made under the provisions of this Part shall not be
a charge on any other fund in the Treasury of the Borough, or under
its control, save the police pension fund herein provided for.
[Ord. 314, 11/28/1958, § 6; as amended by Ord.
416, 7/10/1973, § 2]
In computing the aggregate of 20 or 25 years service, as the
case may be, any member of the police force employed by the Borough
who has been a regularly appointed employee of the Borough as a policeman
for a period of at least six months and who thereafter shall enter
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 military service.
[Ord. 314, 11/28/1958, § 7]
The fund established shall be used for the purchase of annuity
contracts with insurance companies.
[Ord. 314, 11/28/1958, § 8]
The Borough of Hamburg shall be the owner of all rights under
annuity contracts purchased, except the rights to designate the beneficiary,
to change the beneficiary and to receive the death benefits and retirement
benefits thereunder. When the employment of any policeman is terminated
other than by death or by retirement, the Borough shall apply the
value of such contract to provide for the policeman death pension,
retirement or disability benefits in accordance with the terms and
conditions of the annuity contract.
[Ord. 314, 11/28/1958, § 9]
The pension payments herein provided for shall not be subject
to attachment, execution, levy, garnishment or other legal process
and shall be payable only to the member or his designated beneficiary
and shall not be subject to assignment or transfer.
[Ord. 314, 11/28/1958, § 10; as amended by Ord.
612, 9/8/1992, § 4]
The expenses of administering the provisions of this Part, including
the compensation of an actuary or advisor and the custodian of the
fund, shall be paid out of the pension plan. Should the Borough incur
(or in the event that the Borough has incurred) any expenses on behalf
of the fund administration during the terms of the collective bargaining
agreement in effect as of the date of this Part, such cost shall be
reimbursed to the Borough from the fund.
[Ord. 787-11, 6/27/2011; as amended by Ord. 818-16, 1/25/2016; and by Ord. 831-17, 12/26/2017]
1.
Effective January 1, 2018, a one-year, cost-neutral, deferred retirement
option plan shall be available to all eligible officers. The one-year
deferred retirement option plan ("DROP") shall be administered in
accordance with the following.
A.
Eligibility. Effective January 1, 2018, any police officer who has
reached his/her normal retirement date may elect to become a participant
in the DROP. By doing so, the police officer shall no longer earn
or accrue additional years of service for pension purposes, provided
that all other contractual benefits shall continue to accrue with
the exception of those provisions relating to the Police Pension Plan
and the buyback of accrued but unused sick and vacation time. Prior
to entering the DROP, an officer may request buyback of the unused
time with said payment to be made at the time of retirement. An officer
may utilize such time while in the DROP, but the Borough shall not
be required to buy back any such unused time at the end of the DROP.
B.
Election to Participate. In accordance with Act 44 of 2009, an officer
shall elect participation in the DROP by submitting a notice in writing
to both the Borough Manager and the Chief of Police, which election
shall be effective as of the date of complete submission of the aforementioned
writing. Election to participate in the DROP is irrevocable. The member
shall make the election by using forms and procedures as prescribed
by the Pension Board Trustees or, if none, those prepared by the Borough.
C.
DROP Pension Payments. Upon entry into the DROP, a member's
service and average applicable compensation shall be frozen, and his/her
DROP pension payment shall be calculated as if he/she actually retired
on the date he/she entered the DROP. The monthly DROP pension payment,
plus any applicable COLA, shall be paid to an individual DROP investment
account. A third-party administrator shall maintain the account, independent
of the Borough of Hamburg. There shall be no additional costs to the
Borough of Hamburg under the DROP plan.
D.
Individual DROP Investment Account. Each member shall select the
investments in his/her individual investment account from an array
of options as selected by the Pension Board Trustees, who will select
a third party to provide mutual fund or other investment options,
recordkeeping and reporting to the members and the Trustees. All investment
and administrative costs shall be charged against the individual DROP
investment accounts of the participants.
E.
Employee Contributions. Upon entry into the DROP, all Borough and
employee contributions shall cease, with no additional costs to the
Borough. Any additional costs shall be paid by the Police Pension
Fund and not the Borough. In the event there are additional costs
or expenses to the Borough of Hamburg as a result of the DROP plan,
except for increases in the minimum municipal obligation, the DROP
plan shall be null and void, at the sole option of the Borough of
Hamburg.
F.
Minimum and Maximum Participation. In no event shall the resignation
be shorter than three months from the date of submission of the DROP
notice to the Borough. The maximum period of participation in the
DROP is 12 months. Once the maximum participation has been achieved,
the member must terminate employment and separate from service.
G.
Distribution Options. Commensurate with DROP participation, a member
shall make an election, on forms designated by the Pension Board Trustees
or, if none, those prepared by the Borough, of the payout option(s)
he/she wishes at the termination of the DROP period. This election
may be changed at any time prior to termination. The distribution
options are as follows:
(1)
A full and lump-sum distribution;
(2)
Rollover to another qualified retirement plan (as permitted
by law) or to an IRA;
(3)
Purchase of an annuity;
(4)
Keep the monies in the individual DROP investment account. Monies
kept in the individual DROP investment account may be withdrawn in
any manner desired by the member; or
(5)
Any other distribution provided by the Pension Board Trustees'
third-party administrator.
H.
Beneficiary Designation. Commensurate with DROP participation, a
member shall make an election, on forms designated by the Pension
Board Trustees or, if none, those prepared by the Borough, of the
beneficiary or beneficiaries he/she wishes to receive the monies in
his/her individual DROP investment account in the event of his/her
death before all monies have been distributed.
I.
Disability. A member who becomes permanently disabled during the
DROP period and retires from service shall revert to his/her normal
retirement pension and to directly receive those pension payments
which were being deposited into his/her DROP investment account. The
participant will then have access to the distributions from his/her
Individual DROP investment account.
J.
If the Commonwealth of Pennsylvania passes and implements legislation
governing DROP plans in this state, any plan in effect in the Borough
of Hamburg will be brought into compliance with such legislation when
required.
[Ord. 815-15, 9/28/2015]
Every officer or member of the police force of the Borough of
Hamburg who has completed 12 years of service shall be 100% vested
for retirement or monthly benefits under the Borough of Hamburg Police
Pension Plan. An officer or member of the police force of the Borough
of Hamburg who terminates his/her employment with the Borough at a
time when he/she is not 100% vested shall cease to be a participant
in the Borough of Hamburg Police Pension Plan and shall not be entitled
to any benefits thereunder.
[Added by Ord. 818-16, 1/25/2016; as amended by Ord.
831-17, 12/26/2017]
As of January 1, 2018, a police officer shall be entitled to
purchase full service credit towards police pension eligibility hereunder
for each year or fraction thereof of active duty service with any
branch of the United States military, as evidenced by his/her DD214
form, but not to exceed five years provided that said time of military
service was while the officer was not employed by the Borough of Hamburg.
The cash amount due by the officer to the Borough for the purchase
of credit hereunder shall be computed by applying the average normal
cost rate for the Borough Police Pension Plan as certified by the
Borough Police Pension Plan Actuary, but not to exceed 10%, to the
officer's average annual rate of compensation over the first
three years of service with the Borough Police Department and multiplying
the result by the number of years and fractional part of nonintervening
military service being purchased, together with interest at a rate
of 4.75% compounded annually from the officer's date of hire
to the date of purchase of service credits hereunder.
[Ord. 831-17, 12/26/2017]
An early retirement benefit as authorized by Act 24 of 1998,
codified as 53 P.S. § 771(i), shall be available to a participant,
regardless of age, with 20 or more years of continuous service, who
terminates employment prior to the completion of superannuation retirement
age and service requirements and who files a written application for
an early retirement benefit to the Board. The early retirement benefit
shall become effective as of the date the application is filed with
the Board or the date designated on the application, whichever is
later, and shall be the actuarial equivalent of a partial superannuation
retirement benefit calculated as follows: A partial superannuation
retirement benefit shall be determined by applying the percentage
that the participant's years of service bear to the years of
service that the participant would have rendered had the participant
continued to be employed until his/her superannuation retirement date
to the gross pension amount calculated using the monthly average salary
during the appropriate period prior to his/her termination of employment.
The actuarial equivalent of the partial superannuation retirement
benefit shall be determined by actuarially reducing the partial superannuation
retirement benefit to reflect that it will commence on the effective
date of the early retirement rather than on the date on which the
participant would have completed superannuation age and service requirements.
The actuarial reduction shall be calculated using the actuarial assumptions
reported in the last actuarial valuation report filed with the Public
Employee Retirement Commission under the Act of December 18, 1984
(P.L. 1005, No. 205), known as the "Municipal Pension Plan Funding
Standard and Recovery Act" or "Act 205," 53 P.S. § 895.101
et seq.
