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A cafeteria plan (excludable under IRC Section 125 and as provided
in Section 1108.a(5)(c));
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A tax sheltered annuity (excludable under IRC Section 403(b));
or
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A deferred compensation plan (excludable under IRC Section 457).
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Picked-up contributions under IRC Section 414(h)(2) shall be
included in the participant's compensation.
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Any reference in this plan to compensation shall be a reference
to the definition in this section 1102.c, unless the plan reference
specifies a modification to this definition. The plan administrator
shall take into account only compensation actually paid by the employer
for the relevant period. A compensation payment includes compensation
by the employer through another person under the common paymaster
provisions in IRC Sections 3121 and 3306. Compensation from a related
employer that is not a participating employer under this plan shall
be excluded.
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Unused vacation, personal day, and sick pay paid on account
of termination of employment
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Any lump sum payment made upon termination of employment
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(1)
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(a)
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Year of Vesting Service. For purposes of determining the nonforfeitable
interest in the participant's accrued benefit, the employee shall
receive credit for the aggregate of all time periods commencing with
the employee's first day of employment or re-employment as a police
officer and ending on the date a break in service begins, except for
periods of service disregarded below. The first day of employment
or re-employment is the first day the employee performs an hour of
service. Fractional periods of a year will be expressed in terms of
days. One year of vesting service shall be credited for each three-hundred-sixty-five-day
period.
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(b)
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Break in Service Rules.
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(i)
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Vested Participant. A former participant who had a nonforfeitable
right to all or a portion of his accrued benefit derived from employer
contributions at the time of his termination from service and who
did not receive a distribution of his accumulated contributions shall
retain credit for all years of vesting service prior to a break in
service.
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(ii)
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Nonvested Participant or Employee. In the case of a former participant
or employee who did not have any nonforfeitable right to his accrued
benefit derived from employer contributions at the time of his termination
from service or who received a distribution of his accumulated contributions,
years of vesting service before a break in service shall not be taken
into account in computing service, except as provided in Section 1106.c.
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(2)
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Year of Benefit Service. For the purpose of determining the
participant's benefit under the pension benefit formula, the participant
shall receive credit for the aggregate of all time periods commencing
with the participant's first day of active participation or active
reparticipation and ending on the date a break in service begins or
the participant is no longer a member of an eligible class of employees,
except for periods of service disregarded herein. One year of benefit
service shall be credited for each three-hundred-sixty-five-day period.
Any years of service disregarded under Section 1106.c Accumulated
Contribution Distribution and Restoration shall be disregarded for
this purpose.
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(1)
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(a)
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Normal Retirement Age. The normal retirement age of each participant
shall be the day on which he satisfies both of the following requirements:
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(i)
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He attains age 50; and
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(ii)
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He completes 25 years of vesting service.
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However, in the case of a participant who was employed prior
to January 1, 2001, his normal retirement age shall be the day on
which he satisfies both of the following requirements:
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(i)
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He attains age 50; and
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(ii)
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He completes 20 years of vesting service.
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Provided further, in the case of a participant hired on or after
January 1, 2016, his normal retirement age shall be the day on which
he satisfies both of the following requirements:
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(i)
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He attains age 55; and
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(ii)
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He completes 25 years of vesting service.
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An actively employed participant's right to his normal retirement
benefit shall be 100% vested and nonforfeitable upon attainment of
the normal retirement age, notwithstanding the plan's vesting schedule.
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Retired participants shall be subject to service, from time
to time, as a police reserve, in cases of riot, tumult, or preservation
of public peace until unfitted for such service, when they may be
finally discharged by reason of age or disability.
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(b)
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Normal Retirement Date. The normal retirement date of each participant
shall be the first day of the month coincident with or next following
the day on which he attains his normal retirement age as defined in
§ 1-1104.b(1)(a).
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(2)
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(a)
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Normal Retirement Benefit. The normal retirement benefit of
each participant shall not be less than the largest periodic benefit
that would have been payable to the participant upon separation from
service at or prior to his normal retirement date under the plan exclusive
of social security supplements, premiums on disability or term insurance,
and the value of disability benefits not in excess of the normal retirement
benefit, but taking into account any decrease in average monthly compensation.
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(b)
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Normal Form of Payment. The normal form of retirement benefit
for each participant shall be a level monthly pension payable during
the participant's lifetime, with payments commencing on his normal
retirement date, and continuing after the participant's death during
the lifetime of his spouse, if any, at the rate of 50% of the amount
payable to the participant.
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(3)
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Pension Benefit Formula. Each eligible participant shall receive
a monthly benefit payable at his normal retirement date equal to 50%
of average monthly compensation.
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(4)
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Social Security Offset for Officers Hired On or After January
1, 2016. Benefits distributed under this Plan to officers hired on
or after January 1, 2016 shall be offset by 75% of the Social Security
normal retirement benefit for which they are eligible to receive based
on their employment with the Borough. Such offset will occur on the
participant's Social Security normal retirement date.
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(5)
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Service Increment Benefit. Each eligible participant shall receive
a service increment benefit of $20 per month for each completed year
of benefit service in excess of 25. The total service increment benefit
shall not exceed $100 per month. This benefit shall be payable in
addition to the monthly benefit payable under the pension benefit
formula, provided the participant is eligible.
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However, in the case of a participant who was employed prior
to January 1, 2001, the service increment benefit shall be equal to
2.0% of average monthly compensation for each completed year of benefit
service in excess of 20. The total service increment benefit shall
not exceed 20.0% of average monthly compensation.
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Provided further, participants hired on or after January 1,
2016 shall not receive a service increment benefit in addition to
their normal retirement benefit.
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(6)
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IRC Section 415 Limitation on Benefits. Notwithstanding the
benefits set forth in this section, the annual benefit otherwise payable
to a participant under this plan at any time shall be limited as provided
in § 1-1108.a.
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The specific reasons for denial;
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Reference to provisions on which the denial is based;
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A description of and reason for any additional information needed
to process the claim; and
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An explanation of the claims procedure.
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Request a review of the participant's case in writing to the
employer;
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Review pertinent documents;
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Submit issues and comments in writing.
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The written request for review must be submitted no later than
60 days after receiving written notification of denial of benefits.
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