[Adopted 3-25-2004 by Ord. No. 04-2]
As used in this Part 4, Subpart A, the following terms shall
have the meanings indicated:
ACCRUED BENEFIT
As of any given date, the benefit determined under § 1-405.2,
calculated on the basis of final monthly average salary as of the
date of determination and multiplied by a fraction, the numerator
of which shall be the participant's aggregate service determined as
of such date and the denominator of which shall be the aggregate service
which would be credited to the participant as of his normal retirement
date if he were to continue to be employed as an employee until such
date. In no event shall such fraction exceed 1.0.
ACCUMULATED CONTRIBUTIONS
The total amount contributed by any participant to this fund
or its predecessor by way of payroll deduction or otherwise, plus
interest credited at 6% per annum. Such interest shall be credited
annually in the form of a compound interest rate up to the date on
which the participant's employment is terminated.
ACT
The Municipal Pension Plan Funding Standard and Recovery
Act, enacted as P.L. 1005 (Act 205 of 1984), as amended.
ACTUARIAL EQUIVALENT
Two forms of payment of equal actuarial present value on
a specified date based on mortality according to the UP-1984 Table
and an interest rate of 6%.
ACTUARY
The person, partnership, association or corporation which
at any given time is serving as actuary, provided that such actuary
must be an "approved actuary," as defined in the Act.
AGGREGATE SERVICE
The total period or periods of the participant's employment
with the employer, whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of his accumulated contributions with respect to a period of employment,
such period of employment shall not be included in his aggregate service
thereafter unless, at the commencement of his next period of employment,
he repays to the fund the amount of such withdrawal with interest.
For purposes of this definition, interest shall accrue as of the date
the employee receives a refund of his accumulated contributions and
shall be computed at the same rate and in the same manner as described
in the definition of "accumulated contributions."
BASIC MONTHLY EARNINGS
The total compensation of the employee, whether salary or
hourly wages, including overtime pay, holiday pay, longevity pay and
any other form of compensation paid by the employer for police services
rendered. Basic monthly earnings shall also include fixed periodic
amounts paid for periods during which the participant is not actively
employed as a member of the employer's regular full-time police force,
which amounts are paid directly by the employer or through a program
to which the employer has made contributions on behalf of the employee
other than under this plan (including, without limitation, a worker's
compensation program or payments made under the Pennsylvania Heart
and Lung Act).
BENEFICIARY
The person or entity designated by the participant to receive
a refund of the participant's accumulated contributions should the
participant die prior to becoming entitled to a retirement benefit.
In the event that a participant does not designate a beneficiary or
his beneficiary does not survive him, his beneficiary shall be his
surviving spouse, or if there is no surviving spouse, his issue per
stripes, or if there is no surviving issue, his estate.
CODE
The Internal Revenue Code of 1986, as amended.
COUNCIL
The Council of the Borough of Sharpsburg, which shall direct
and supervise the plan.
DISABILITY DATE
The date when a participant is determined by the plan administrator
to be incapacitated due to "total and permanent disability" or the
date when the participant's employment terminates due to such total
and permanent disability, if later.
EMPLOYEE
Any individual employed by the employer on a permanent full-time
basis as a member of the employer's police force.
EMPLOYER
The Borough of Sharpsburg, Allegheny County.
EMPLOYMENT
For purposes of determining aggregate service, means the
following:
1.
The period of time for which an employee is directly or indirectly
compensated or entitled to compensation by the employer for the performance
of duties as a police officer;
2.
Any period of time for which an employee is paid a fixed, periodic
amount in the nature of salary-continuation payments for reasons other
than the performance of duties (such as vacation, holidays, sickness,
entitlement to benefits under worker's compensation or similar laws),
either directly by the employer or through a program to which the
employer has made contributions on behalf of the employee;
3.
Any period during which an employee is entitled to disability
benefits under this plan, provided that the employee returns to employment
within three months of the date on which it is determined that he
is no longer totally and permanently disabled, if such determination
occurs prior to the participant's normal retirement date; or
4.
Any period of voluntary or involuntary military service with
the armed forces of the United States of America, provided that:
A.
The participant has been employed as a regular, full-time member
of the employer's police force for a period of at least six months
prior to the period of military service; and
B.
The participant returns to employment within six months following
his discharge from military service or within such longer period during
which his employment rights are guaranteed by applicable law or under
the terms of a collective bargaining agreement with the employer.
FINAL MONTHLY AVERAGE SALARY
The average monthly salary earned by the participant and
paid by the employer for employment as defined in Subsection 2 of
the definition of "employment" during the final 36 months immediately
preceding retirement which are included in the averaging period. The
term "salary" shall include the total compensation of the employee,
whether salary or hourly wages, including overtime pay, holiday pay,
longevity pay and any other form of compensation paid by the employer
for police services rendered and shall exclude lump-sum payments for
accumulated sick time or back pay damages, awards or settlements.
NORMAL RETIREMENT DATE
The date on which the participant has completed 25 years
of aggregate service with the employer and attained age 50.
[Amended 3-11-2008 by Ord. No. 08-01]
PARTICIPANT
An employee who has met the eligibility requirements to participate
in the plan as provided in § 1-403.1 and who has not for
any reason ceased to be a participant hereunder.
PENSION FUND or FUND
The police pension fund administered under the terms of this
plan and which shall include all money, property, investments, policies
and contracts standing in the name of the plan.
PENSION TRUST COMMITTEE
The committee, which shall consist of nine persons, one of
whom shall be a police officer selected by the employees, as defined
in the definition of "employee;" six of whom shall be members of Council
excluding the President of Council, one of whom shall be the Secretary
of the employee, as defined in this section; and one of whom shall
be the Mayor of the employer.
PENSION TRUSTEE
The Mayor of the employer and duly appointed successors holding
that office.
PLAN
The plan set forth herein, as amended from time to time,
and designated as the "Borough of Sharpsburg Police Pension Plan."
PLAN ADMINISTRATOR
The Pension Trust Committee or pension trustee, if so authorized
by the Pension Trust Committee, selected to administer the provisions
of the plan. In the event that no such Pension Trust Committee is
chosen, the plan administrator shall be the Council.
PLAN YEAR
The twelve-month period beginning on January 1 and ending
on December 31 of each year.
POLICY or CONTRACT
A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of the Act and P.L. 1804, as amended (53 P.S. § 767).
RESTATEMENT DATE
January 1, 2002, the date upon which this amendment and restatement
of the plan becomes effective.
TOTAL AND PERMANENT DISABILITY
A condition of physical or mental impairment due to which a participant is unable to perform any and every duty of his usual and customary occupation, which condition, to a reasonable degree of medical certainty, is expected to continue to be permanent for the remainder of the participant's lifetime. For purposes of this definition and §
1-406, a condition shall not be treated as a total and permanent disability unless such condition results from the participant's performance in the line of the employee's duty as a member of the employer's police force. Therefore, an employee whose physical or mental impairment does not occur in the line of duty is not entitled to receive disability benefits under the plan.
[Adopted 4-8-2002 by Ord.
No. 02-3]
Sharpsburg Borough (hereinafter "Borough"), being a member municipality
of the Pennsylvania Municipal Retirement System (hereinafter "System"),
hereby elects to change its member benefits in that system as authorized
by the Pennsylvania Municipal Retirement Law, as amended (hereinafter "the Law"), and does hereby agree
to be bound by all the requirements and provisions of said article
and the law, as the case may be, and to assume all obligations, financial
and otherwise, placed upon member municipalities by said amendment,
as the case may be. All references hereafter shall be based on benefits
negotiated between the Pennsylvania Municipal Retirement Board (hereinafter
"Board") and the Borough under the provisions of Article IV of the
Law.
Membership in the System shall be mandatory for all permanent,
municipal employees of the Borough. Membership for elected officials
and employees hired on a temporary or seasonal basis is prohibited,
as is membership for individuals paid only on a fee basis.
Credit for prior service for original members is granted for
each year or partial year thereof that the member was employed by
the Borough from original date of hire. Benefits provided to members
in the Sharpsburg Borough Municipal Employee Plan Agreement (hereinafter
"Agreement") dated April 8, 2002, shall accrue based on all credited
service granted and earned in accordance with this section.
Payment for any obligation established by the adoption of this
part and the agreement between the System and Borough shall be made
by the Borough in accordance with the Law and Act 205 of 1984, the
Municipal Pension Plan Funding Standard and Recovery Act.
As part of this part, the Borough agrees that the System shall
provide the benefits set forth in the agreement between the Board
and Borough dated April 8, 2002. The passage and adoption of this
part by the Borough is an official acceptance of said agreement and
the financial obligations resulting from the administration of said
benefit package. The Borough hereby assumes all liability for any
unfundedness created or which may be created due to the acceptance
of the benefit structure outlined in the above-referenced agreement.
The Borough intends this part to be the complete authorization
of the Borough's amended plan and, therefore, specifically repeals
the previous agreement and Ordinance No. 491 of 1991, and substitutes
the amended agreement dated April 8, 2002, with an effective date
of January 1, 2002, in its place. A complete and true copy of said
agreement is attached hereto, and all the terms of which are incorporated
herein.
Duly certified copies of all ordinances, including this part
and the referenced agreement, shall be filed with the System of the
Commonwealth of Pennsylvania. Membership for the municipal employees
of the Borough in the System shall be effective the first day of October
1965, with the revised plan structure reflected in the agreement dated
April 8, 2002, effective the first day of January, 2002.