Borough of Springdale, PA
Allegheny County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Borough Council of the Borough of Springdale as indicated in article histories. Amendments noted where applicable.]
[Adopted 7-21-2004 by Ord. No. 1206]
A. 
Pursuant to the provisions of Act 600 and any amendments thereto,[1] the Borough of Springdale hereby establishes a Police Pension Fund.
[1]
Editor's Note: See 53 P.S. § 767.
B. 
The following terms are defined for use throughout this article:
ACCRUED BENEFIT
As of any given date, the benefit determined under § 70-8 , calculated on the basis of 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 projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything to the contrary, in no event shall the fraction exceed 1.0. In no event, however, shall the accrued benefit exceed the maximum limitation of Section 415 of the Internal Revenue Code.[2] All accrued benefits are subject to all applicable limitations, reductions, offsets and actuarial adjustments provided pursuant to the terms of the plan prior to the actual payment thereof.
ACCUMULATED CONTRIBUTIONS
The total amount contributed by the member to this plan, plus interest credited at 5% per annum. Interest shall be credited in the form of a compound interest rate from the midpoint of the calendar year during which contributions were made to the first day of the month preceding or coincident with the date distribution of accumulated contributions shall commence.
COMPENSATION
The total remuneration of the employee, whether salary or hourly wages, including overtime pay, holiday pay, longevity pay and any other form of compensation paid by the Borough for police services rendered. However, compensation is exclusive of any single sum or extraordinary payments made which are not directly attributable to active employment during an averaging period, including, but not limited to, payment for accumulated sick leave, accumulated vacation leave, bonus or payments of a back-pay damage award.
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.
NORMAL RETIREMENT DATE
The first day of the month coincident with or immediately following the later of the member's attainment of age 50 and 25 years of service.
TOTAL AND PERMANENT DISABILITY
A condition of physical or mental impairment due to which a participant is unable to perform the usual and customary duties of a police officer of the Borough, which condition is reasonably expected to continue to be permanent for the remainder of the participant's lifetime. A condition shall not be treated as a total and permanent disability unless such condition is a direct result of and occurs in the line of duty as a police officer of the Borough. Therefore, a participant whose physical or mental impairment does not occur in the line of duty is not entitled to receive disability benefits under the plan.
[2]
Editor's Note: See 26 U.S.C. § 415.
The fund is to be maintained by a charge against each member of the police force by annual appropriates made by the Borough of Springdale, by payments made by the State Treasurer to the Borough of Springdale Treasurer for monies received from taxes paid on premiums by foreign casualty insurance companies for purposes of pension for policemen, and by gifts, grants, devises or bequests granted to such pension fund pursuant to the provisions of such act.
Such Police Pension Fund shall be under the direction of the Borough Council of Springdale Borough and shall be applied under such regulations as the Borough Council may by ordinance or resolution prescribe for the benefit of such members of the Springdale Borough police force as shall receive honorable discharge therefrom by reason of age and service or disability, and for the families of such that may be killed in the service. If any pensions shall be allowed to those who are retired by reason of disabilities, they shall be in conformity with the uniform scale and shall be integrated to make up total payments needed of the Borough liability which may exist due to any previous act or acts of legislature pertaining to such disability.
The Borough of Springdale is hereby authorized to take, by gift, grant, devise or bequest, any money or property, real, personal or mixed, in trust for the benefit of such fund, and the care, management, investment and disposal of such trust funds or property shall be vested in the Borough of Springdale Council, the person, agent and the company 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 funds and property may prescribe.
The Borough of Springdale hereby prescribes a minimum period of total service in the aggregate of 25 years in the Borough of Springdale and shall fix the age of the members of the force at 50 years, after which they may retire from active duty, and such members as are retired shall be subject to service, from time to time, as a police reserve, in cases of riot, tumult or preservation of the public peace until unfitted for such service, when they may be finally discharged by reason of age or disability. Any member who serves the required minimum number of years as a full-time policeman and reaches his eligible retirement age shall retire immediately upon reaching such retirement date. Any member who has reached such eligible retirement date may request the Springdale Borough Council for an extension of full-time employment as a policeman. Such extension shall not be valid once the policeman attains the age of 65.
[Added 3-12-2013 by Ord. No. 1206]
A. 
The Borough of Springdale hereby establishes a retirement window that will allow all active and eligible police officers who are at least 51 years old and have at least 25 years of service to retire and receive their accrued benefit payable immediately and without reduction for early commencement.
B. 
All active and eligible full-time police officers shall elect to make this selection within 30 days from the passage of the within section.
C. 
The early retirement benefit hereby established shall be calculated by a certified actuary at the time an early retirement date is elected by the police officer.
D. 
The monthly early retirement benefit shall be based upon the following: "The early retirement benefit shall reflect the benefit reduction of the normal retirement benefit and the reduction shall be calculated as the sum of the normal retirement benefit reduced by what would have been the officer's superannuation date."
Any member of the police force employed by the Borough of Springdale who has been a regular appointed employee of the Borough of Springdale for a period of at least six months and who thereafter shall enter into the military service of the United States shall have credited to his employment record for pension or retirement benefits all of the time spent by him in such military service, if such person returns or has heretofore returned to his employment within six months after his separation from the service.
A. 
Payments made under the provisions of this article shall not be a charge on any other fund in the treasury of the Borough of Springdale or under its control, save the Police Pension Fund herein provided for. The basis for determining any pension payable under this article following the retirement of any member of the force meeting the service and age qualifications of this article shall be as follows:
B. 
Monthly pension or retirement benefits shall be computed as 1/2 of the monthly average compensation of such member during the last 36 months of employment and shall be payable to the member for as long as he lives. Such pension or retirement benefits for any month shall be computed as the sum of any pension benefits from pension plans heretofore established by a private organization or association for the members of the police force, 0% of the primary benefits under federal social security laws for which the officer may be eligible because of age where positions covered by the fund are included in an agreement under the Federal Social Security Act, [1]and benefits from the Police Pension Fund established pursuant to this article to the extent necessary to bring the total benefits in any month up to 1/2 of the aforesaid monthly average salary.
[1]
Editor's Note: 42 U.S.C. § 301 et seq.
The actuary to be employed by the Borough of Springdale with respect to the Police Pension Fund hereby established shall determine the present value of the liability on account of pensions payable under § 70-8 of this article to original members for service prior to the date of the establishment of this fund, and shall offset the value of such assets transferred to this fund from the previous funds established by the Borough of Springdale to determine the unfunded liability. The actuary shall also determine the amount which shall be contributed annually into the fund for the service of members subsequent to the establishment of the fund, to be known as "future service cost."
A. 
Members shall pay into the fund, monthly, an amount equal to not less than 5% nor more than 8% of monthly compensation. Where positions covered by this fund are included in an agreement under the Federal Social Security Act, members shall pay into the fund, monthly, an amount determined as follows: if the pension plan established under the provisions of this article provides for no offset under § 70-8B, 5% of total compensation; or if such pension plan provides for an offset under § 70-8B:
(1) 
On compensation which social security taxes are payable at a rate calculated by subtracting from 5% the product obtained by multiplying 3% by such offset percentage; and
(2) 
On compensation in excess of that on which social security taxes are payable, if any, 5%.
B. 
The remainder of the needed annual contributions, as determined by the actuary, shall become the obligation of the Borough and shall be paid by it to the pension fund by annual appropriations.
C. 
The Borough may, on an annual basis, by ordinance or resolution, reduce or eliminate contributions into the fund by members. Reduction or elimination of member contributions shall not permit the return of contributions or any interest or fund earnings to be made to members while still an employee.
Should a member of the police force who shall have served in such a capacity for a period of at least 12 years be discharged or voluntarily withdraw from the police force, then such member of the police force shall be entitled to vest his retirement benefits by filing with the Borough a written notice of his intention to vest within 90 days of the date he ceases to be a full-time member of the force. He shall be entitled to a deferred monthly benefit, which shall be equal to his accrued benefit determined as of his separation date. This benefit shall commence upon his normal retirement date.
The existing assets of the present contracts and all other liabilities as may exist with the Borough of Springdale Police Pension Fund shall remain as is.
No person participating in a police pension fund established pursuant to the provisions of this article who becomes entitled to receive a benefit therefrom shall be deprived of his rights to an equal proportionate share therein upon the basis upon which he first became entitled thereto.
A member who terminates employment with less than 12 years of full-time service for any reason other than qualifying for disability under the plan shall be entitled to receive a distribution of his accumulated contributions.
The Springdale Borough Council hereby authorizes and directs the Borough Secretary to make regular annual payments to the fund when due.
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.
That the procedure hereinbefore set forth expressing the intent to provide pensions and other benefits through the purchase of the before-mentioned contracts or make applications for any benefits on the lives of the same or other policemen of the Borough, from time to time and from year to year, may be carried into effect with the necessary and desired factual changes without the necessity to pass any new ordinance or resolution authorizing such purchase.
The Police Pension Fund provided for herein is hereby established.
The proper officers of the Borough of Springdale are hereby authorized and empowered to execute and deliver on behalf of the Borough of Springdale such documents as the Solicitor of the Borough shall determine to be necessary and proper to effectuate and implement the Police Pension Fund hereby established under the provisions of the Act 600 and any amendments thereto.[1]
[1]
Editor's Note: See 53 P.S. § 767.
A. 
Disability retirement. A participant who shall incur a total and permanent disability shall be entitled to a disability retirement benefit as of the disability date.
B. 
Disability retirement benefit.
(1) 
A member who shall be entitled to a disability retirement shall receive a monthly benefit in the amount equal to 50% of the member's monthly salary determined as the time the disability was incurred, provided that any member who receives benefits for the same injuries under the Social Security Act (49 STAT. 620, 42 U.S.C. § 301 et seq.) shall have his disability benefits offset or reduced by the amount of such benefits.
(2) 
For purposes of this section, "salary" shall mean a participant's basic salary, excluding bonus, overtime or any other forms of extra pay, received from the employer.
C. 
Payment of disability benefits.
(1) 
Disability payments shall be made as of the first day of each month coincident with or immediately following the participant's disability date and continuing until the earliest of the death of the participant, cessation of total and permanent disability, or an attainment of normal retirement age as determined under § 70-5 (such a participant who attains normal retirement age shall thereafter receive a normal retirement benefit pursuant to § 70-8).
(2) 
A participant who shall fail to return within three months as an employee of the Borough upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, not be entitled to any distribution of accumulated contributions pursuant to § 70-14 to the extend that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date, and shall not be entitled to any other benefits under the plan on account of any aggregate service as of the disability date.
D. 
Verification of disability. The plan administrator shall, in its sole discretion, determine whether a participant shall have incurred a total and permanent disability. The plan administrator shall rely on the report of a physician acceptable to the plan administrator. If the plan administrator shall determine that the participant who is totally and permanently disabled has recovered sufficiently to resume active employment as a police officer, or if a participant refuses to undergo a medical examination as directed by the plan administrator (such a medical examination may not be required more frequently than once in any given twelve-month period), the payment of disability retirement benefits shall cease.
E. 
Cessation of disability. A participant who is receiving payment of disability retirement benefits under this plan must notify the plan administrator of any change which may cause a cessation of entitlement to receipt of such benefits hereunder. If a participant fails to provide immediate notice to the plan administrator of any such change in status and continues to receive payment of benefits hereunder to which the participant is not entitled, then the plan may take whatever action is necessary to recover any amount of improperly paid amounts, including legal action or offsetting such amounts against any future payments of retirement or other benefits under the plan, including the costs of such actions.
A. 
At the discretion of the Springdale Borough Council, ad hoc cost-of-living increases may be provided to participants who retired before January 1, 2003. Such cost-of-living adjustments shall be determined as of the anniversary date and shall not be in excess of the limitations in Subsection A(1) through (4) listed below:
(1) 
The percentage increase in the consumer price index for the year which the member was last employed as an employee of the Borough;
(2) 
The total retirement benefits payable under this plan shall not exceed 75% of the member's average monthly compensation;
(3) 
The total cost-of-living increase shall not exceed 30% of the member's retirement benefit under this plan;
(4) 
The total cost-of-living increase shall not impair the actuarial soundness of the plan.
B. 
Pursuant to the above, effective January 1, 2003, a $130-per-month increase in pension benefits shall be provided for all participants retired and receiving benefits as of that date who had retired prior to January 1, 2003.
A. 
Calculation. Full service credit is provided for each year of military service or fraction thereof, not to exceed five years, to any member of the police force who was not employed by the Borough prior to such military service. The amount due for the purchase of credit for military service other than intervening military service shall be computed by applying the average normal cost rate for borough and township police pension plans as certified by the Public Employee Retirement Study Commission, but not to exceed 10% of the member's average 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 military service to the date of payment.
B. 
Election period. Active participants as of the enactment date of this article may exercise the option to purchase nonintervening military service within three years of the enactment date. Police becoming active participants after the enactment date of this article may exercise the option to purchase nonintervening military service within three years of their hire date. In either case, no service purchases would be permitted after the later of three years from the enactment date or three years from the date of hire.
C. 
Purchase period. In order to effectuate the purchase, participants must make a lump sum payment of the purchase amount no later than 60 days after the election is made.
Per the repeat finding issued in the most recent state audit in regard to "Pension Benefits Not Authorized By Act 600," effective January 1, 2003, the following retirees will have their monthly benefits reduced by the following amounts.
A. 
Upon the occurrence of the death of a member, there shall be benefits payable in accord with the following. For purposes of this section, the phrase "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.
B. 
The surviving spouse of a member who is killed in service or, if no spouse survives or if the spouse 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 in the case of a child or children shall be entitled to receive a monthly pension calculated at 100% of the monthly member's salary at the time of death. For purposes of this subsection, "salary" shall mean a participant's basic salary, excluding bonus, overtime or any other forms of extra pay, received from the employer. If there are neither a surviving spouse nor surviving children, the member's beneficiary shall be entitled to receive his accumulated contributions.[1]
[1]
Editor's Note: Ord. No. 1231, adopted 11-19-2013, provided that: "Springdale Borough Council shall amend Ordinance No. 1206 to comply with the Auditor General's ruling regarding the "killed in service" benefit under Section 23. The Borough of Springdale therefore elects to void the "killed in service" benefit as recommended in finding No. 2.
C. 
The surviving spouse of a member who retires on pension who dies or, if no spouse survives or if the spouse 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 or a member who retires on pension who dies shall, during his/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 50% of the pension the member was receiving.
D. 
The surviving spouse of a member who dies or, if no spouse survives or if the spouse 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 or a member who retires on pension who dies shall, during his/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 50% of the pension the member would have been receiving had he been retired at the time of his death. If there are neither a surviving spouse nor surviving children, the member's beneficiary shall be entitled to receive his accumulated contributions.
E. 
The surviving spouse of a member who dies before his pension has vested or, if no spouse survives, or if 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 the member shall be entitled to receive his accumulated contributions, unless the member has designated another beneficiary for this purpose.
[Adopted 7-16-2013 by Ord. No. 1216A]
Springdale Borough (the "Borough"), being a member municipality of the Pennsylvania Municipal Retirement System ("the system"), hereby elects to amend its Municipal Pension Plan administered by the system in accordance with Article IV of the Pennsylvania Municipal Retirement Law, 53 P.S. § 881.101 et seq. ("Retirement Law"), and does hereby agree to be bound by all the requirements and provisions of the Retirement Law and the Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. § 895.101 et seq., and to assume all obligations, financial and otherwise, placed upon member municipalities.
As part of this article, the Borough agrees that the system shall administer and provide the benefits set forth in the amended municipal pension plan contract entered into between the Pennsylvania Municipal Retirement Board and the Borough effective June 1, 2013 (the "contract").[1]
[1]
Editor's Note: A copy of the current contract is on file in the Borough offices.
The passage and adoption of this article by the Borough is an official acceptance of the contract and the financial obligations resulting from the administration of the contract.
Payment for any obligation established by the adoption of this article and the contract shall be made by the Borough in accordance with the Retirement Law and the Municipal Pension Plan Funding Standard and Recovery Act. The Borough hereby assumes all liability for any unfundedness created due to the benefit structure set forth in the contract.
The Borough intends this article to be the complete authorization of the contract, and it shall become effective and specifically repeal Ord. No. 1216A, either immediately or on June 1, 2013, which is the effective date of the contract, whichever is later.