[Adopted 12-15-1993 by Ord. No. 520[1]]
[1]
Editor's Note: This ordinance supersedes former
Art. II, Police Pension Fund, adopted 12-8-1962 by Ord. No. 426.
A.
AGE
ANNIVERSARY DATE
AVERAGE APPLICABLE COMPENSATION
BOROUGH
CHIEF ADMINISTRATIVE OFFICER
COMPENSATION
COUNCIL
EARLY RETIREMENT DATE
EFFECTIVE DATE
EMPLOYEE
FUND
MEMBER
NORMAL RETIREMENT DATE
PLAN
PLAN YEAR
SERVICE
TOTAL AND PERMANENT DISABILITY
TRUSTEE
As used in this chapter, the following terms shall
have the meanings indicated:
The age attained by the employee at his or her last birthday.
Any January 1 after the effective date.
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
compensation, actual monthly earnings shall include base pay, longevity
pay, night differential pay (if any) and overtime pay, but shall exclude
reimbursed expenses or payments in lieu of expenses, nonsalary compensation
(including but not limited to fringe benefits provided by the Borough)
or any other payments or allowances (such as uniform allowances).
The Borough of Palmerton, Carbon County, Commonwealth of
Pennsylvania.
The person who has primary responsibility for the execution
of the administrative affairs of this pension plan, or the designee
of that person.
Earnings, including but not limited to base pay, longevity
pay, shift differential (if any) and overtime pay, but shall exclude
reimbursement expenses or payments in lieu of expenses, nonpolice
compensation, including but not limited to fringe benefits provided
by the Borough, and any other allowances paid by the Borough (i.e.,
uniform allowances).
The Council of the Borough of Palmerton.
The first day following the date on which the member completes
20 years of service.
[Amended 10-28-1998 by Ord. No. 570]
January 1, 1993.
Any person in the full-time employ of the Borough Police
Department whose customary employment is for not less than 40 hours
a week.
All assets held by the trust under the trust agreement relating
to this Police Pension Plan.
The first day following the date on which the member completes
25 years of service and the date on which the member attains age 50.
The Police Pension Plan for the Borough of Palmerton, as
herein set forth and as the same may hereafter be amended.
A period of 12 consecutive months commencing on any January
1 and ending on the following December 31.
The aggregate of a 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 he/she 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 of 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.
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 a physician designated by the Borough.
The Council of the Borough of Palmerton or any other agency
or person appointed by such to serve in that capacity as set forth
in the trust agreement.
B.
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.
A.
Contributions by members. Members shall pay into the fund at a rate of 5.0% of compensation. Compensation for this purpose shall be as defined in § 25-5A of this article. 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 6.0% 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.
[Amended 6-26-2003 by Ord. No. 609]
B.
Refund of member's contributions. Any member who for
any reason shall be 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.
C.
Deposits. Contributions by members shall be remitted
to the trustee monthly.
D.
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: to reduce the unfunded liability or, after such liability has been fully funded, 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, to reduce member contributions pursuant to § 25-7A hereof.
E.
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.
F.
Nonintervening military buyback. The plan provides
full service credit for each year of military service or fraction
thereof, not to exceed five years, to a member who was not employed
by the Borough prior to such military service, payable by the member.
The member shall pay the amount for the purchase of credit for military
service other than intervening military service computed by applying
the average normal cost rate for the plan as certified by the Public
Employee Retirement Study Commission, but not to exceed 10%, to the
member's average annual rate of compensation over the first three
years of 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 service to
the date of payment. A member of the plan shall be eligible to receive
service credit for intervening or nonintervening military service,
provided that he/she is not entitled to receive, eligible to receive
then 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
member 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 (relating to retired pay for nonregular
service).
[Amended 6-26-2003 by Ord. No. 609]
G.
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.
A.
Normal retirement.
(1)
Each
member may retire on or at any time after his normal retirement date.
Any member so retiring shall be entitled to receive a monthly pension
commencing as of the first day following his date of actual retirement
and ending with the payment made as of the first day of the month
in which his death occurs. The monthly pension to which such retired
member shall be entitled to under this plan shall be equal to 50%
of such member's average applicable compensation.
(2)
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.
[Amended 11-13-2014 by Ord. No. 711[1]]
[1]
Editor’s Note: This ordinance also provided for an effective
date of 1-1-2015.
B.
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/she actually retires or ceases to be an employee. Any contributions required pursuant to § 25-7A hereof shall continue.
C.
Disability benefit. If a member retires because of
a total and permanent disability, he/she shall be entitled to receive
a pension benefit equal to 50% of his salary at the time the disability
was incurred, offset by any social security disability benefits received
by the member for the same injury. This benefit shall continue until
his death.
[Amended 6-26-2003 by Ord. No. 609]
D.
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 of Palmerton 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 § 25-10A(1). 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.
[Added 10-28-1998 by Ord. No. 570]
A.
Death benefit if no surviving spouse nor independent
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.
B.
Pension benefit to surviving spouse and dependent
children.
[Amended 6-26-2003 by Ord. No. 609]
(1)
If a member dies survived by a spouse or dependent
children, after having become eligible to receive a pension benefit,
(i.e., he/she was eligible because he/she was already receiving a
pension, or he/she met the age and service requirements, but he/she
had not yet retired), then a monthly pension benefit shall be provided.
(2)
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/she had been retired at the time of his death.
(3)
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 § 25-10. 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.
(4)
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 § 25-8D. 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.
(5)
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 and
thereafter born to the member's spouse.
C.
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,[1] 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 Subsection B(5).
A.
If a member leaves the employ of the Borough or ceases to be a member whether by reason of his transfer, resignation or discharge or by reason of disability or retirement other than after becoming eligible for benefits pursuant to § 25-8 or 25-9 of this plan, he/she shall be entitled to a refund of all contributions made by him/her and then on deposit in the fund, plus interest thereon, computed at the rate described in § 25-7A. However, a member who has completed 12 or more years of service may elect either Subsection A(1) or A(2) as described below:
(1)
He/she 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/she must file with the Secretary of the Borough of Palmerton within 90 days of the date he/she 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/she worked until normal retirement date, multiplied by the benefits described in § 25-8A. Years of service shall be measured in years and completed months.
(2)
He/she may elect to receive a refund of all contributions made by him/her and then on deposit in the trust fund, plus interest thereon, computed at the rate described in § 25-7A. If he/she elects to receive the refund of his contributions plus interest, he/she would forfeit the pension benefit outlined in Subsection A(1).
B.
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 a death benefit calculated pursuant to § 25-9B.
A.
It is the duty of the trustee to pay the benefits to members and their beneficiaries, as provided in §§ 25-8, 25-9 and 25-10, in accordance with the instructions received from the Council; provided, however, that the duty of the trustee to make such payments is wholly contingent upon the sufficiency of the fund for such purposes.
B.
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 persons 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.
C.
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.
A.
The plan shall be administered by the Council of the
Borough of Palmerton. The Council shall make and adopt rules and regulations
for the efficient administration of the plan.
B.
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 § 25-12B of this plan.
C.
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.
D.
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.
E.
The Council shall make available to members, retired
members and terminated members and to their beneficiaries, for examination
during business hours, such records as pertain to the person examining.
F.
The Council may enact such rules and regulations for
the administration of the plan as it may consider desirable, provided
that the same shall not be in conflict with any of the provisions
of this article. All rules and regulations shall be adopted by formal
resolution of the Borough Council at a regular advertised meeting.
G.
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 that 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 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.
H.
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.
A.
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.
B.
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.
C.
Nothing contained in the plan shall be held or construed
as a contract or guaranty 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 judgment its best interests so require, and such discontinuance
shall be without regard to this plan.
A.
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
(except that upon termination, such diversion may be made after all
of the fixed and contingent liabilities to members and their beneficiaries
have been met); 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 retiring
officers who retired during the member's participation in this plan.
B.
In the event of termination of this plan, the Council
shall allocate the assets then remaining in the fund as follows:
(1)
Sufficient funds shall be maintained to provide the pension benefits prescribed in § 25-7 for all members who have retired prior to termination or who are eligible for retirement at the time of the termination of this fund.
(2)
Contributions with interest at a rate established by the Council as provided in § 25-9 shall be refunded to any and all members who terminate service at the time of the termination of the fund.
A.
No benefit under this plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge
or encumbrance or 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),[1] 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 orders. Further, to
the extent provided under a qualified domestic relations order, a
former spouse of a member shall be treated as the spouse or surviving
spouse for all purposes under this plan.
[1]
Editor's Note: "Code" refers to the Internal
Revenue Service Code.
B.
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.
C.
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 or their
beneficiaries until all of the actuarial obligations to such member
or member's beneficiaries have been met.
D.
If the Council deems any person incapable of receiving
benefits to which he/she 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.
E.
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.
F.
Headings and captions provided herein are for convenience
only and shall not be deemed part of the plan.
G.
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.
H.
This article repeals all other ordinances prior to
the date of its enactment.
[Added 12-7-2017 by Ord.
No. 734]
A.
Title. This section shall be known as the "Borough of Palmerton Police
Act 44 Retirement Program."
B.
ACT 44 PROGRAM
ACT 44 PROGRAM ACCOUNT
BOROUGH
FUND or PLAN
PARTICIPANT
POLICE OFFICERS
Definitions. When used in this section, the below words shall have
the meanings indicated:
The Act 44 Deferred Retirement Option Program referred to
in the collective bargaining agreement between the Borough of Palmerton
Police Association and the Borough of Palmerton.
Separate ledger account created to accept Act 44 Program
participants' monthly pension benefit while an Act 44 Program participant,
as well as any interest thereon.
Borough of Palmerton, Carbon County, Pennsylvania.
The Police Pension Plan.
A police officer who meets the eligibility for and has executed
the proper documents for participation in the Act 44 Program and has
had such application approved by the Borough.
Police officers of the Police Department.
C.
Eligibility. Eligibility for the Act 44 Program shall be determined
as follows: Police officers who have not retired prior to the implementation
of the Act 44 Program may enter into the Act 44 Program on the first
day of the month following completion of 25 years of credited service
and attaining the age of 50 (the superannuation date as defined by
the pension plan).
D.
Written election. Eligible officers who wish to be participants in
the Act 44 Program must signify that intention, in writing, as follows:
(1)
A police officer electing to participate in the Act 44 Program
must complete and execute an Act 44 Program participation election
form prepared by the Borough, which shall evidence the member's election
to participate in the Act 44 Program. The form must be signed by the
police officer and be notarized and submitted prior to the date on
which the member wishes Act 44 Program participation to commence.
The Act 44 Program participation election form shall include an irrevocable
notice to the Borough, by the police officer member, that the police
officer shall resign from employment with the Police Department effective
on a specific date (the "resignation date") that is no later than
three years from the effective date of the Act 44 Program election
form. A police officer shall cease to work as and may no longer be
employed as a police officer on the officer's resignation date, unless
the Borough properly terminates or honorably discharges the officer
prior to the resignation date. A participant may resign from employment
while in Act 44 Program status, which shall terminate his/her participation
in the Act 44 Program.
(2)
In addition to the above information, the Act 44 Program participation
election form shall also advise the employee of the following: an
explanation of the participant's rights and obligations while in the
Act 44 Program; that, as a condition of Act 44 Program 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 Program participation commences;
and that the Act 44 Program participant's service while in the Act
44 Program will not count as pension service nor will it entitle a
participant to any service increment benefits to which the participant
was not entitled prior to commencing Act 44 Program participation.
An Act 44 Program 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. Once an Act 44 Program participation
election form has been approved by the Borough, it is irrevocable.
Likewise, once an Act 44 Program participant enters the Act 44 Program,
the participant may not subsequently leave and then reenter the Act
44 Program, even if the employee separates from employment and subsequently
begins employment with the Borough again.
E.
Benefit calculation. For all Pension Plan purposes, continuous service
of a police officer participating in the Act 44 Program shall remain
as it existed on the effective date of commencement of participation
in the Act 44 Program. Service thereafter shall not be recognized
or used for the calculation or determination of any benefits payable
by the Borough of Palmerton Police Pension Plan. The average monthly
compensation of the police officer for pension calculation purposes
shall remain as it existed on the effective date of commencement of
participation in the Act 44 Program. Earnings or increases in earnings
thereafter shall not be recognized or used for the calculation or
determination of any benefits payable by the Pension Plan. The pension
benefit payable to the members shall increase only as a result of
cost of living adjustments in effect on the effective date of the
member's participation in the Act 44 Program or by applicable cost
of living adjustments granted thereafter.
F.
Accumulation of the Act 44 Program account. 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 the Act 44 Program,
accumulate to the benefit of that officer and be accounted for on
that police officer's Act 44 Program account. Participants shall not
have the option of self-directed investment of their individual Act
44 Program account while in the Act 44 Program. 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%.
G.
Accrual of nonpension benefits. After a police officer elects to
participate in the Act 44 Program, all other contractual benefits
shall continue to accrue with the exception of those provisions relating
to the Police Pension Plan.
H.
Payout. Upon separation from employment, the Act 44 Program payout
options available to the Act 44 Program participant shall be as follows:
(1)
The balance of the Act 44 Program participant's account, less
withholding taxes, if any, remitted to the Internal Revenue Service,
shall be paid to the participant or the participant's surviving beneficiary.
(2)
The balance of the Act 44 Program participant's account shall
be paid directly to the custodian of an eligible retirement plan as
defined by Internal Revenue Code Section 402(c)(8)(b) or, in the case
of an eligible rollover distribution to the surviving spouse of a
deceased Act 44 Program participant, an eligible retirement plan that
is an individual retirement account or an individual retirement annuity
as defined by Internal Revenue Code Section 402(c)(9).
I.
Service-connected disability during Act 44 Program. If an Act 44
Program participant becomes temporarily incapacitated due to a service-connected
injury during his participation in the Act 44 Program, that police
officer shall continue to participate in the Act 44 Program as if
fully employed. The police officer shall receive disability pay in
the same amount as disabled police officers that are not participating
in the Act 44 Program. In no event shall a police officer on temporary
disability have the ability to draw from his Act 44 Program 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 Program 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 Program
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 Program participant may be reclassified as being on account of
a service-connected disability. In no event shall an Act 44 participant's
monthly retirement benefit be recalculated. The Act 44 participant's
monthly retirement benefit shall remain 50% as calculated at the time
of entry into the Act 44 Program.
J.
Death. If an Act 44 Program participant dies, the participant's eligibility
for the Act 44 Program shall terminate upon the date of death. In
such case, if the Act 44 Program account balances have not yet been
paid out, the participant's legal beneficiary shall have the same
rights and options as the participant to withdraw/roll over the account
balance.
K.
Forfeiture of benefits. Notwithstanding a police officer's status
as an Act 44 Program participant, a current or former participant
who is convicted or pleads guilty to engaging in criminal misconduct
which constitutes a "crime related to public office or public employment,"
as that phrase is defined in Pennsylvania's Pension Forfeiture Act,
43 P.S. §§ 1311-1314, shall forfeit his right to receive
a pension, including any amounts currently deposited in the Act 44
Program account. In such a case, the participant shall only be entitled
to receive the contributions, if any, made by the participant to the
Police Pension Fund, without interest.
L.
Cost of management for Act 44 Program. The police officers and the
Borough agree that any costs or fees associated with the management
of the Act 44 Program accounts shall be paid directly from the Pension
Fund and not by Palmerton Borough.
M.
Amendment. Any amendments to this Act 44 Program section shall be
consistent with the provisions covering individual retirement option
plans set forth in any applicable collective bargaining agreement
and shall be binding upon all future Act 44 Program participants and
upon all Act 44 Program participants who have balances in their individual
retirement option accounts. The Act 44 Program may only be amended
by a written instrument, not by any oral agreement or past practice.
N.
Construal of provisions. A police officer's election to participate
in the Act 44 Program shall in no way be construed as a limitation
on the Borough's right to suspend or to terminate a police officer
for just cause or to grant the police officer an honorable discharge
based upon a physical or mental inability to perform his or her duties.
O.
Severability. The provisions of the Act 44 Program 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 the
Act 44 Program shall not be affected thereby. It is hereby expressly
declared as the intent of the Borough that the Act 44 Program would
have been adopted had such unconstitutional or illegal provision or
provisions not been included herein.
P.
Effective date. The effective date of the Act 44 Program shall be
January 1, 2018.
