CROSS REFERENCES
Police pension funds — See 3rd Class § 4301
et seq. (53 P.S. § 39301 et seq.).
Bureau of Police — See ADM. Art. 133.
[Ord. 4-2011, passed 1-19-2011; Ord. 23-2013, passed 8-7-2013]
The following words and phrases as used in this Plan shall have
the meaning set below unless a different meaning is clearly required
by the context:
(a)
ACCRUED RETIREMENT BENEFIT — The amount of Retirement Benefit credited to the Participant as of any date pursuant to Section 147.05(a) calculated on the basis of the Participant's Final Pay determined as of such date and multiplied by a fraction not to exceed 1.0, the numerator of which shall be the Participant's completed years of Service as of such date and the denominator of which shall be the number of years of Service which the Participant would complete as of his/her Normal Retirement Date under the Plan, assuming no interruption of Service to his/her Normal Retirement Date.
(b)
ACT 205 — The Municipal Pension Plan Funding Standard and Recovery
Act, enacted as P.L. 1005 (Act 205 of 1984), 53 P.S. § 895.101
et seq, as the same may be amended from time to time.
(c)
ACTUARIAL EQUIVALENT — A benefit or amount
of equivalent actuarial value computed, except as otherwise specified
herein, on the basis of the RP-2014 total data set mortality adjusted
to 2006 for base rates and projected to the year of the calculation
using the MP mortality improvement scale, and interest at 6% per annum.
[Amended by Ord. 80-2019, passed 12-18-2019]
(d)
ACTUARIALLY SOUND — A Plan that is being funded annually at
a level not lower than the financial requirements of the Plan pursuant
to Act 205.
(e)
ACTUARY — The person, partnership, association or corporation
that at any given time serves as Actuary to the plan; provided that
such Actuary must be an "Approved Actuary" as defined in Act 205.
(f)
AGE — The age of a Participant calculated as of his last birthday.
(g)
ANNIVERSARY DATE — January 1st of each year following the Effective
Date of the Plan.
(h)
ASSOCIATION — The Police Relief and Pension Association of
Erie, Pennsylvania.
(j)
BYLAWS — The bylaws of the Association which shall govern the
internal operations of the Association.
(k)
CITY COUNCIL or COUNCIL — The governing body of the Employer.
(l)
CODE — The Internal Revenue Code of 1986, as amended or replaced
from time to time.
(m)
COMPENSATION — With respect to any Participant means such Participant's wages as defined in Code Section 3401(a) and all other payments of compensation by the City (in the course of the City's business) for a Plan Year for which the City is required to furnish the Participant a written statement under Code Sections 6041(d), 6051(a)(3) and 6052. "Compensation" must be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401(a)(2)). Compensation shall include contributions "picked up" under Section 147.03(b).
(n)
DISABILITY — The total and permanent inability of a Participant
to perform adequately and reasonably the Participant's duties
as a police officer.
(p)
EFFECTIVE DATE — The effective date of this Amendment and Restatement of the Plan is January 1, 2010 except where otherwise specified in this Plan. The Partial Lump-Sum Distribution Option of Subsection 147.10 is effective December 1, 2003.
(q)
EMPLOYEE — Any duly appointed and sworn member of the police
force of the Employer.
(r)
EMPLOYER — The City of Erie.
(s)
FINAL PAY — A Participant's Compensation paid by the City in the form of regular pay, longevity increments, holiday pay and contributions to the Plan by the Participant which are "picked up" by the City under Code Section 414(h)(2), but excluding Compensation for overtime, shift differential, clothing allowance and cleaning allowance, at the greater of: (1) the annual rate in effect at the earlier of the time of the Participant's termination of employment or retirement under the Plan or the Pension Lookback Date which the Participant selects under Section 147.10 hereof, or (2) the highest annual Compensation within the meaning of Sub-paragraph (m) which the Participant received during any of the five Plan Years prior to the Participant's termination of employment or retirement or the Pension Lookback Date which the Participant selects under Section 147.10 hereof. Effective as of 1-1-1998, Final Pay includes elective amounts of Compensation not included in income by reason of Code Sections 125, 132(f)(4), 401(k), 402(g)(3), 403(b) or 457(b).
The Final Pay which is taken into account in determining benefit
accruals in any Plan Year for each Employee who first became a participant
in the Plan on or after 1-1-1989 is subject to the annual limits of
Code Section 401(a)(17), which specifies $200,000 for Plan Year 1989,
$209,200 for Plan Year 1990, $222,220 for Plan Year 1991, $228,860
for Plan Year 1992, $235,840 for Plan Year 1993, reduced by OBRA-1993
to $150,000 for Plan Years 1994 through 1996, increased to $160,000
for Plan Years 1997 through 1999, increased to $170,000 for Plan Years
2000 and 2001, and increased to $200,000 for the 2002 Plan Year. The
$200,000 limit on Compensation included in Final Pay shall be adjusted
after the 2002 Plan Year for cost-of-living increases in accordance
with Code Section 401(a)(17)(B). Family Aggregation Rules do not apply
for Plan Years beginning after 12-31-1996.
(t)
INTERVENING UNIFORMED SERVICE — Honorable active duty service
in the Uniformed Services by a Participant for up to five years (subject
to extension of such five-year period as permitted by USERRA), whether
on a voluntary or involuntary basis, and who returns to the employ
of the Employer at the conclusion of such Uniformed Service within
the Report-Back Period permitted by USERRA.
(v)
NORMAL RETIREMENT DATE — The date on which a Participant shall
have accrued 20 years of Service on active duty as a police officer
with the Employer and who shall have attained the age of 50 years.
(x)
PENSION FUND — The assets of this Plan administered under the
terms of this Plan and Act 205, and which shall include all money,
property, investments, policies and contracts that are a part of the
Plan, which shall be held in trust by the City according to the laws
of the Commonwealth of Pennsylvania.
(y)
PICK-UP CONTRIBUTIONS — Employee Contributions otherwise due
from Participants in the Plan that are made by the City on a pre-federal
(but not pre-Pennsylvania) income tax basis pursuant to Section 414(h)
of the Code commencing 1-1-1994.
(z)
PLAN — The defined benefit pension plan set forth in this Article
147 (including any trust forming a part hereof), as amended and supplemented
from time to time, all of which shall be known as the City of Erie
Police Pension Plan.
(aa)
PLAN ADMINISTRATOR — Shall be the Board which is designated as the Plan Administrator in Subsection 147.09(a) below.
(bb)
PLAN YEAR — Each twelve-month period beginning on January
1st and ending on the following December 31st.
(cc)
PREPARATION TIME — The reasonable period that the Employee
may need after leaving his/her position with the Employer to put his/her
affairs in order, or to prepare or travel for duty in one of the Uniformed
Services as allowed under USERRA.
(dd)
PRIOR MILITARY SERVICE — Service on active duty in the
U.S. Armed Forces completed prior to the Participant's initial
employment by the Employer as an Employee, as evidenced by a Department
of Defense Form 214 issued to the Participant.
(ee)
REPAYMENT PERIOD — The period following the re-employment
by the Employer of a Participant after Intervening Uniformed Service
within which the Participant must repay to the Plan (1) any Employee
Contributions which the Participant withdrew from the Plan in connection
with such Intervening Uniformed Service, with interest at the annual
rate of return on Plan assets which is calculated by the Plan Actuary,
compounded annually from the date of withdrawal to the date of repayment,
and (2) the amount of any Employee Contributions otherwise due to
the Plan during the Participant's Intervening Uniformed Service
and related Report-Back Periods (beyond the first 12 months), without
interest, provided that the Participant remains employed with the
Employer throughout such Repayment Period. This Repayment Period equals
three times the period of the Participant's Uniformed Service,
but not more than five years.
(ff)
REPORT-BACK PERIOD — The period allowed under USERRA for
a Participant to report back to work or apply for re-employment with
the Employer after completion of Intervening Uniformed Service. Depending
on the length of the Participant's Intervening Uniformed Service,
s/he is allowed up to 90 days following completion of Intervening
Uniformed Service to apply for re-employment or report back to work
at the Employer. This Report-Back Period is extended for the period
that is necessary (up to two years) for a Participant to recover from
an illness or injury incurred in or aggravated during Uniformed Service.
(hh)
RETIREMENT DATE — The first day coincident with or following
a Participant's 50th birthday and termination of employment with
a Vested Retirement Benefit or a Vested Reduced Retirement Benefit.
(ii)
SERVICE — The total number of full years during which a Participant was an Employee of the Employer and made the required contributions to the Plan from Compensation paid by the City or with respect to Prior Military Service or Intervening Uniformed Service which the Participant purchased or was credited under Sections 147.03(c) or (d) below. Service does not include any period for which the Participant's contributions were refunded and not timely repaid to the Fund. Periods of layoff, suspension or leave of absence do not interrupt Service, but are not credited to the accrual of Retirement Benefits payable under the Plan except as provided in the case of purchase of Prior Military Service or Intervening Uniformed Service under Sections 147.03(c) or (d) below. No participant may purchase Service credit for any period of active duty Military or Uniformed Service under this Plan with respect to which s/he purchases or has purchased similar credit under any other pension plan of the Commonwealth of Pennsylvania or its subdivisions in which s/he is a Participant.
(jj)
SERVICE-CONNECTED DISABILITY — A disability resulting
from an injury, illness or mental incapacity suffered while in the
performance of or related to the performance of the Participant's
duties as a police officer for The City of Erie Police.
(kk)
SERVICE INCREMENT — The component of monthly Retirement Benefit attributable to full years of Service above 20, pursuant to Section 147.05(a)(2) below, not to exceed $500 per month.
(ll)
SURVIVING SPOUSE — If married prior to retirement - a
living individual who was legally married to the Participant and is
married to the Participant at the time of the Participant's death.
If married post-retirement-a living individual who was legally married
to the Participant and is married to the Participant at the time of
the Participant's death and for the 12 months immediately preceding
the Participant's death.
(mm)
SURVIVOR — The Participant's Surviving Spouse. If
there is no Surviving Spouse following the death of the Participant,
or at the subsequent death of the Surviving Spouse, "Survivor" shall
mean the surviving children of the deceased Participant in equal shares
so long as they are under the age of 18.
(nn)
TRAUMATIC EVENT — An event that:
(1)
Is identifiable and documented as to both time and place;
(2)
Occurred during and as a result of the Participant's regular
or assigned duties;
(3)
Occurred when the Participant was involuntarily confronted with
the object or matter that was the source of harm; and
(4)
Causes physical harm that requires prompt treatment from a licensed
medical provider.
(oo)
UNIFORMED SERVICE and UNIFORMED SERVICES — Active duty
in the Armed Forces of the United States (which include the Army,
Navy, Marine Corps, Air Force, Coast Guard, and National Guard and
their Reserve components), the Army National Guard and the Air National
Guard when engaged in active duty training or full-time National Guard
duty, the commissioned corps of the Public Health Service, and any
other category of persons designated by the President in time of war
or national emergency, or specified in regulations promulgated under
USERRA, together with any period for which an Employee is absent from
the employ of the Employer for a determination of the Employee's
fitness to perform any such duty or for the purpose of performing
funeral honors duty as authorized by 10 USCS § 12503 or
32 USCS § 115. Uniformed Service shall also include any
related Preparation Time. If an Employee is dismissed or separated
from Uniformed Service under other than honorable conditions that
related period of Uniformed Service shall not be credited as Service
under the Plan.
(pp)
USERRA — The Uniformed Services and Reemployment Rights
Act of 1994, 38 USC §§ 4301 et seq., as amended from
time to time.
(qq)
VESTED BENEFIT and VESTED REDUCED BENEFIT — Participants
shall be vested in the Retirement Benefit that they have accrued in
the Plan after at least 12 years of Service. Being "vested" means
that the Accrued Retirement Benefit to which the Participant is credited
as of any date cannot be forfeited unless the Participant dies without
a Survivor. In that event any undistributed Employee Contributions
shall be refunded to the Participant's Estate, without interest.
Periods of layoff, suspension or leave of absence do not interrupt
Service, but are not credited to the accrual of Retirement Benefits
payable under the Plan, except as required by USERRA.
The Vested Reduced Benefit to which a Participant who has completed
the minimum number of years of Service required for vesting is calculated
by multiplying the Normal Retirement Benefit to which the Participant
would be entitled at age 50 if s/he had completed 20 years of Service
(but using the actual Final Pay which the Participant had received
to the date his/her employment by the City was terminated) by the
fraction determined by dividing the Participant's actual full
years of Service by 20. In the event that the City terminates the
Plan or discontinues making contributions to it, the Accrued Retirement
Benefit of all Participants shall become fully vested, to the extent
funded, regardless of the Participant's years of Service.
[Ord. 4-2011, passed 1-19-2011]
(a)
Eligibility requirements. Any Employee who was a Participant as of the Effective Date of this amendment and restatement of the Plan shall continue to participate in the Plan. Thereafter, any Employee upon his admission to the Association pursuant to Subsection 147.02(b) will become a Participant provided that such Employee contributes to this Plan pursuant to Subsection 147.03(b).
(b)
Membership in Association. Each policeman of the City shall be required
to become a member of the Police Relief and Pension Association (Association)
immediately upon receipt of his/her appointment as a police officer.
Upon the commencement of his/her service as a policeman, the Secretary
of the Association shall notify the City Treasurer of each new police
appointment and of the fact that such appointed policeman has commenced
his/her service with the Bureau of Police. The Secretary shall thereupon
demand that the City Treasurer thereafter make regular monthly deductions
from the policeman's pay to the extent of all dues, fees and
assessments levied in accordance with the Bylaws of the Association
and this Plan.
(c)
Board of Directors of Association. Twelve Directors shall be elected
by the members of the Association from among active members of the
Association, in four classes comprised of three Directors in each
class. Each class shall be elected for a term of four years, or until
their successors shall have been duly elected and qualified. The terms
of each class of Directors shall expire in successive years. The members
of the Association shall elect one class of Directors at each annual
meeting of the Association, to succeed the class of Directors whose
terms are expiring. In the event of a vacancy on the Board of Directors,
the remaining members of the Board shall elect a member of the Association
to fill that vacancy for the remainder of its term.
The following elected officials, or their designee, shall be
ex officio members of the Board, by virtue of their offices, with
full voting rights, to comprise the total membership on the Board
of 15 Directors:
The Mayor.
The City Controller.
The President of City Council.
(1)
From the 12 Directors who are elected by the members of the
Association to serve as the Board of Directors, there shall be elected
four individuals to serve as Officers of the Board of Directors. Said
officers shall be a President, Vice-President, Secretary and Treasurer,
each serving a term of two years.
A.
In the event that there remain unresolved and outstanding issues
pending before the Association and Board at the expiration of the
term of any of the officers, the officer's term may be renewed
for one year and thus enable the officer to remain and serve in his/her
capacity as an officer of the Board due to said outstanding issues
and the officer's familiarity with same.
The aforementioned one year term shall be renewable at one year
increments at the discretion of the Board of Directors of the Association
and said renewal will not have to be re-approved by City Council whenever
this section is invoked. Moreover, as a result of the officer's
term being extended, his/her position as a Board member will also
be extended accordingly. At the time when the officer's term
is not renewed, his/her Board vacancy will be filled pursuant to normal
operating procedures.
[Ord. 4-2011, passed 1-19-2011]
(a)
Contributions by employer. The Employer shall contribute to the Pension
Fund for investment at least such amounts each year as are necessary
to satisfy the minimum funding standards of Act 205.
(b)
Participant contributions. Participant contributions to the Pension
Fund shall be made as follows:
(1)
Participants who were hired before January 1, 1981 shall contribute
monthly an amount equal to: 5% of monthly Compensation, but excluding
overtime, shift differential and clothing and cleaning allowance,
plus $1 per month for the Service Increment.
(2)
Participants who were hired on or after January 1, 1981 shall
contribute 6% of monthly Compensation, but excluding overtime, shift
differential and clothing and cleaning allowance, plus $1 per month
for the Service Increment.
(3)
No Participant shall have the option of choosing to receive
these contributions in cash instead of having them paid by the Employer
to the Plan.
(4)
Commencement of contributions. Contributions shall commence by payroll deductions in accordance with Subsection 147.02(b).
(5)
Termination of contributions. Contributions shall terminate
at Retirement, permanent disability, death or termination of employment.
(6)
Refund of contributions. If a Participant terminates Service prior to accruing a Vested Benefit in the Plan, s/he shall be entitled to the refund of his/her Participant Contributions, without interest, in accordance with the provisions of Subsection 147.07(b).
(7)
Pick-up contributions. Effective January 1, 1994, contributions
to the Pension Fund by Participants shall be picked-up by the City
under Code Section 414(h)(2). Contributions picked-up under this Code
Section shall be considered Employee contributions for all other purposes.
(c)
Purchase of prior military service.
(1)
Any Participant who is a contributor to the Plan and who has
served in the Armed Forces of the United States subsequent to September
1, 1940, but who was not a Participant in the Plan prior to such Military
Service, shall be entitled to purchase Military Service for credit
toward the accrual of a full pension under the Plan in accordance
with the definition of Normal Retirement Benefit and the provisions
of this subparagraph for each year or fraction thereof, not to exceed
five years of such Prior Military Service. Credit for Service under
the Plan for Prior Military Service shall be given only upon payment
to the Pension Fund by the Participant of an amount equal to (i) that
which the Participant would have paid had s/he been a Participant
in the Plan during the period of Prior Military Service for which
the Participant desires credit for Service under the Plan, and (ii)
the contributions which the City would have otherwise paid on account
of such Prior Military Service. Participants electing to purchase
Service credit for Military Service in the Armed Forces of the United
States subsequent to September 1, 1940, shall make such election in
writing within six months of employment by the City, and shall pay
the total sum to the Pension Fund within 24 months of the date of
their election.
(2)
However, such purchased Prior Military Service shall not be
credited towards the accrual of a Normal Retirement Benefit, a Vested
Benefit, or a Vested Reduced Benefit until the Participant has accrued
at least 12 years of non-Military and non-Uniformed Service.
(d)
Credit for and purchase of intervening uniformed service.
(1)
A former Participant who serves more than five years in Intervening
Uniformed Service (not counting any related Report-Back Period and
necessary Preparation Time included in such Uniformed Service) does
not have any right to be re-employed by the Employer or to receive
Service credit under the Plan for such Uniformed Service. However,
the five-year service limit is extended under the Final Regulations
issued by the Department of Labor under USERRA for additional periods
of active duty in the Uniformed Services required by military necessity,
national emergency or in support of a critical mission of the Uniformed
Service, and not within the control of the former Participant.
(2)
Upon re-employment by the Employer of a Participant after completing
a period of Intervening Uniformed Service following application within
the Report-Back Period the Participant has the option (i) to repay
any amounts previously withdrawn by the Participant from the Plan
in connection with such Uniformed Service, with interest at the annual
rate of return on Plan assets which is calculated by the Plan Actuary,
compounded annually from the date of withdrawal to the date of repayment,
and (ii) to make-up any Employee Contributions that would have been
due to the Plan after the first twelve-month of Intervening Uniformed
Service and related Report Back Period, without interest. The City
shall make all contributions to the Plan necessary for the Participant
to receive credit for Service under the Plan with respect to the first
12 months of such intervening Uniformed Service and related Report-Back
Period.
(3)
The Employee's rate of pay and required contribution rate
during said Intervening Uniformed Service and Report-Back Periods
shall be calculated using the rate of pay that the Employee would
have received and the contribution rate that the Employee would have
been required to make had s/he not been absent during such intervening
Uniformed Service and Report-Back periods, or if not reasonably certain,
then it shall be the Employee's average level of Compensation
and rate of contribution during the twelve-month or shorter period
of employment immediately preceding his/her Intervening Uniformed
Service.
(4)
The Participant has the Repayment Period within which to repay
to the Plan any such Employee withdrawals with interest and such Employee
make-up Contributions without interest.
(5)
At the time of, and to the extent of, the Participant's
repayment to the Plan of any such Employee withdrawals with interest
and of such Employee make-up Contributions without interest, the Employer
shall pay the Employer Contributions to the Plan that relate to and
are contingent upon the Participant's restoration to the Plan
of the Employee Contributions withdrawn in connection with or otherwise
due during such Intervening Uniformed Service and Report-Back Periods.
(6)
However, any Intervening Uniformed Service for which the Participant
makes up Employee Contributions within the Repayment Period shall
not be credited towards the accrual of a Normal Retirement Benefit,
a Vested Benefit, or a Vested Reduced Benefit until the Participant
has accrued at least 12 years of non-Military and non-Uniformed Service.
(7)
To the extent that the preceding conditions are met within the
Repayment Period the effect of intervening Uniformed Service and related
Report-Back Periods upon the Retirement Benefit of a Participant retiring
from the Plan shall be the same as though the Participant had remained
continuously employed by the Employer during such Periods.
[Ord. 4-2011, passed 1-19-2011]
(a)
Normal retirement. Each Participant who retires from the employ of the Employer on the first day of the calendar month coincident with or next following his Normal Retirement Age ("Normal Retirement Date") shall be entitled to receive the benefits provided for in Subsection 147.05(a).
[Ord. 4-2011, passed 1-19-2011; Ord. 23-2013, passed 8-7-2013; Ord. 23-2016, passed 8-3-2016]
(a)
Normal retirement benefit. The amount of monthly retirement benefit
to be provided for each Participant who retires on his Normal Retirement
Date (which benefit is herein called his Normal Retirement Benefit)
shall be equal to:
(c)
Late retirement benefit. A Participant who remains in the employ of the Employer beyond his Normal Retirement Date shall be entitled to receive, commencing on his Late Retirement Date, his benefit calculated pursuant to Subsection 147.05(a) considering his Final Pay as of his Late Retirement Date.
(d)
Vested benefit or vested reduced benefit. Where a Participant has completed 12 years or more of Service, excluding Military or Uniformed Service purchased prior to the completion of 12 years of non Uniformed Service, unless otherwise provided by applicable law, and his/her tenure of office or employment shall be terminated before the expiration of 20 years of Service, or before his/her attainment of age 50 s/he shall, in such event, after attaining the age of 50 years, during the remainder of his/her life, be entitled to receive such portion of the full pension as the period of his/her Service (counting Prior Military Service and Intervening Uniformed Service purchased for credit as Service under Sections 147.03(c) and (d) after completion of 12 years of non-Uniformed Service) to the date of its termination bears to the full twenty-year period of Service for a Normal Retirement Benefit. The continuity of 12 years of Service shall not be affected by interruptions of Service for suspension, leave of absence or layoff of less than 31 days in the aggregate.
(e)
Disability retirement pension.
(1)
Disability- not service-connected.
A.
Eligibility for and calculation of pension payment.
1.
Less than 10 years of service. Any Participant who accrues less
than 10 years of Service and who is totally and permanently disabled
due to a Non Service-Connected injury, illness or mental incapacity
shall be entitled to a Disability Retirement Pension of 25% of the
Participant's Final Pay at the time such Disability is finally
determined, payable at the rate of 1/112 of such amount per month.
2.
Ten or more years of service. Any Participant who is totally
and permanently disabled due to Non Service-Connected injury, illness
or mental incapacity incurred after 10 years of Service shall be entitled
to a Disability Retirement Pension of 50% of the Participant's
Final Pay at the time such Disability is finally determined, payable
at the rate of 1/12 of such amount per month plus Service Increments.
B.
Duration of payments. The Disability Retirement Pension payable under this Section 147.05(e)(1), shall be payable to the Participant during the Participant's lifetime and if the Participant shall die, the Disability Retirement Pension payment that the Participant was receiving shall be continued to be paid to the Participant's Surviving Spouse. If the Participant's Surviving Spouse subsequently dies or if the Participant does not have a Surviving Spouse, the Disability Retirement Pension shall be payable to and divided equally between the Participant's surviving children under the age of 18 years until they reach their 18th birthday. Where a Participant who has received benefits under this section dies and there is no Survivor eligible for benefits under this section, no further benefits shall be payable from the Pension.
(2)
Service-connected disability.
A.
Eligibility for and calculation of pension payment.
1.
Standard service-connected disability retirement pension. Any
Participant who is totally and permanently disabled due to a Service-Connected
injury, illness or mental incapacity shall be entitled to a Standard
Service-Connected Disability Retirement Pension of 50% of the Participant's
Final Pay at the time such Disability is finally determined, payable
at the rate of 1/12 of such amount per month plus Service Increments.
2.
Enhanced service-connected disability retirement pension. Any
Participant who suffers a Service-Connected Disability shall be eligible
to receive an Enhanced Service-Connected Disability Retirement Pension
if all of the following criteria are met:
a.
The Disability is physical in nature;
b.
The Disability is the result of a Traumatic Event;
c.
The Disability was not induced by the stress or strain of normal
work effort of a police officer;
d.
The Disability was unexpected to, and not intended by, the Participant;
e.
The Disability originated from a source other than the Participant
and was caused by a circumstance external to the Participant (not
the result of pre-existing disease that is aggravated or accelerated
by the Participant's performance of the duties of a police officer);
f.
The Disability was not the result of the Participant's
willful or reckless conduct or the performance of an illegal act;
g.
The onset of the Disability is immediate such that at no time
following the Traumatic Event was the Participant able to return to
work and reasonably perform the duties of a police officer as unanimously
confirmed by a panel comprised of three physicians (M.D. or D.O.)
with one selected by the Participant, one selected by The City of
Erie, and one selected by The City of Erie Police Pension Board. The
Enhanced Service-Connected Disability Retirement Pension shall be
75% of the eligible Participant's Final Pay at the time such
Disability is finally determined, payable at the rate of 1/12 of such
amount per month. The amount of the Enhanced Service-Connected Disability
Retirement Pension shall not be increased by Service Increments. The
amount of the Enhanced Service-Connected Disability Retirement Pension
shall not be increased by any cost of living adjustments (COLA) until
such time that it is equal to or less than the amount of a Class A
Officer's Standard Service-Connected Disability Retirement Pension,
exclusive of any Service Increments; and
h.
The Disability is not a mental disability nor any physical condition
related to or caused by such mental disability. This Subsection h.
shall not disqualify a Participant who suffers both an otherwise qualifying
physical Disability and a mental Disability resulting from the same
Traumatic Event.
B.
Duration of payments.
1.
Standard service-connected disability retirement pension. The
Standard Service-Connected Disability Retirement Pension shall be
payable to the Participant during the Participant's lifetime.
Upon the death of a Participant receiving a Standard Service-Connected
Disability Retirement Pension, the Standard Service-Connected Disability
Retirement Pension shall continue be paid to the Participant's
Surviving Spouse. If the Participant's Surviving Spouse subsequently
dies or if the Participant does not have a Surviving Spouse, the Standard
Service-Connected Disability Retirement Pension shall be payable to
and divided equally between the Participant's surviving children
under the age of 18 years until they reach their 18th birthday. Where
a Participant who has received a Standard Service-Connected Disability
Retirement Pension dies and there is no Survivor eligible for benefits,
no further benefits shall be payable from the Pension.
2.
Enhanced service-connected disability retirement pension. The Enhanced Service-Connected Disability Retirement Pension shall be payable to the Participant during the Participant's lifetime. Upon the death of a Participant receiving an Enhanced Service-Connected Disability Retirement Pension, the Enhanced Service-Connected Disability Retirement Pension shall continue be paid to the Participant's Surviving Spouse only if he or she was married to the Participant at the time of the onset of the Participant's Disability. In cases where the Surviving Spouse married the Participant after the date of the onset of the Participant's Disability, the Standard Service-Connected Disability Retirement Pension shall be paid to the Participant's Surviving Spouse pursuant to Section 147.05 (e)(2)B.1. If the Participant's Surviving Spouse subsequently dies or if the Participant does not have a Surviving Spouse, a Standard Service-Connected Disability Retirement Pension shall be payable to and divided equally between the Participant's surviving children under the age of 18 years until they reach their 18th birthday. The dollar amount difference between the Participant's Enhanced Service-Connected Disability Retirement Pension and a Standard Service-Connected Disability Retirement Pension shall be payable to and divided equally between the Participant's surviving children under the age of 18 years until they reach their 18th birthday provided that said children were born on or before the date of the onset of the Participant's Disability. Where a Participant who has received an Enhanced Service-Connected Disability Retirement Pension dies and there is no Survivor eligible for benefits, no further benefits shall be payable from the Pension.
(3)
Ineligibility for deferred retirement option programs. Any Participant
accepting a Disability Retirement Pension payable under this section
shall be ineligible to participate in any Deferred Retirement Option
Programs (D.R.O.P.) offered by the City of Erie.
(g)
Cost of living adjustments. Cost-of-living adjustments shall be provided
under either (1) or (2) below, as applicable:
(1)
Participants who were appointed police officers prior to January
1, 1981, or the individuals receiving survivor benefits under the
Plan as the result of the death of an individual appointed as a police
officer of the City prior to January 1, 1981, and who receive retirement
benefits under the Plan by reason of and after the termination of
the Service of any such Participant, shall have such retirement benefits
increased by the percentage increase in the cost of living index for
the month of October, 1970, and subsequent Octobers thereafter as
compared with the cost of living index for the month of October, 1969.
The increase shall become effective initially on the first day of
the month after the passage of this section (September 1, 1971), and
on the first day of January of each and every year thereafter, provided,
however, that the total of any such allowance shall not at any time
exceed one-half of the current monthly salary being paid a patrolman
of the highest pay grade.
The cost of living index referred to above shall be that published
by the United States Department of Labor, Bureau of Labor Statistics,
which index shows the changing average cost of living based on the
Consumer Price Index, U.S. City Average, all items, for the years
1957-1959 base.
(2)
Participants who are appointed police officers of the City of Erie on or after January 1, 1981, or individuals receiving survivor benefits under the Plan as the result of the death of an individual appointed as a police officer of the City on or after January 1, 1981 and who retire on or after January 1, 2001, shall in future years receive such increases to their allowances under the Pension Plan so that their Retirement Benefits shall not fall below 50% of the basic monthly salary currently being paid to a Class A patrolman of the City, except that the monthly pension payable to Participants who qualify for a Disability Retirement Benefit for Disability Not in Line of Duty after less than 10 years of Service, and to their Survivors, shall be adjusted for the Cost of Living so that their pensions shall not fall below 25% of the basic monthly salary currently being paid to a Class A patrolman. Participants receiving a Vested Reduced Benefit pursuant to Section 147.05(d) who are otherwise entitled to a cost of living increase under this Section 147.05(g)(2) shall be entitled to receive only such portion of 50% of the basic monthly salary of a Class A patrolman as his/her years of Service to the date of termination bears to the full 20 years of Service required for a Normal Retirement Benefit.
[Ord. 4-2011, passed 1-19-2011]
(a)
Death benefits. The surviving spouse of a Participant who has retired or is eligible to retire on pension on or after January 1, 1962, and who dies on or after August 1, 1963, shall, during his or her lifetime be entitled to receive the pension the Participant was receiving or would have been receiving had s/he been retired at the time of his/her death. For a Participant who dies while entitled to a Vested Reduced Benefit pursuant to Section 147.05(d), but before s/he has commenced the receipt of retirement benefits, the Survivor Benefit shall not be payable to the Participant's Survivor until the date that the Participant would have been eligible to commence to receive retirement benefits had s/he not died.
(b)
Killed in line of duty benefit. The surviving spouse of a Participant
who is killed in the line of duty on or after February 25, 1970 shall
receive during his or her lifetime a pension equal to 50% of the Compensation,
but excluding overtime, shift differential, and clothing and cleaning
allowance, the Participant was receiving at the time of his/her death,
payable at the rate of 1/12 of such amount per month.
(c)
Survivor benefit. The survivor benefit paid pursuant to Sections 147.06(a) or (b) shall be paid to the surviving spouse until the date of death of the surviving spouse. Upon the death of the surviving spouse of a Participant, the survivor benefit shall be paid monthly in equal shares to the surviving children of the deceased Participant until the earliest of the death or attainment of age 18 of each child. The share payable to the surviving children shall be adjusted as each child ceases to be eligible to receive a share of the benefit hereunder due to death or attainment of age 18. The payee above, whether the spouse or the children, shall be defined herein as the Survivor.
(d)
Distribution on behalf of minor beneficiary. In the event a distribution
is to be made to a minor, then the Board shall direct that such distribution
be paid to the guardian of the estate of, or if none, to the trustee
for, or if none, to a parent of, such minor, or if no parent survives,
then to a responsible adult with whom such minor maintains his residence.
Payment to such guardian, trustee or parent of a minor, or responsible
adult with whom the minor resides, shall fully discharge the Board,
Employer and Plan from liability on account thereof.
[Ord. 4-2011, passed 1-19-2011]
(a)
Forfeitures. Upon the forfeiture of any non-vested portion of a Participant's
Accrued Benefit, the amount of such forfeiture shall be credited against
the future contributions of the Employer under the Plan.
(b)
Refund of contributions to terminated non-vested participants. A
Participant who terminates employment for causes other than death
or disability prior to becoming vested in a Vested Benefit hereunder,
shall be entitled to receive the refund of the total amount of the
contributions paid into the Pension Fund by such Participant, including
Pick-up Contributions, but without interest.
(c)
No right to return contributions upon re-employment of a terminated
non-vested participant. A non-vested Participant who receives a refund
of his/her contributions to the Pension Fund upon termination of employment
shall have no right to return such refunded contributions to the Pension
Fund in the event of re-employment by the City, and the years of Service
which such non-vested Participant had accrued prior to termination
of employment shall not receive any credit under the Plan under any
circumstance.
(d)
Refund of participant's undistributed contributions upon death.
In the event of the death of a Participant, and in the case of a married
Participant, the death of his/her surviving spouse or the death of
his/her/their surviving children prior to their attaining age 18,
any excess of the total amount of the Participant's contributions
to the Plan, including Pick-Up Contributions, without interest, over
the total of all benefits distributed from the Plan to the Participant,
to his/her surviving spouse and to his/her their surviving children
prior to the death of the last survivor, shall be paid to the Participant's
designated beneficiary, and if no beneficiary has been designated,
to his/her estate, provided, that in case payment of the deceased
Participant's retirement benefits is subject to a domestic relations
order in favor of a former spouse, no refund of the benefits undistributed
from the Plan shall be made to the Participant's designated beneficiary
or estate until all obligations of the Plan to the Participant's
former spouse under the domestic relations order are satisfied, and
the amount of refund owing from the Plan to the Participant's
designated beneficiary or estate for undistributed benefits under
this paragraph shall be calculated after deducting all payments made
from the Plan to the Participant's former spouse under the domestic
relations order, as well as the payments made from the Plan to the
Participant, his/her surviving spouse and his/her/their surviving
children prior to the death of the last survivor.
[Ord. 4-2011, passed 1-19-2011; Ord. 36-2016, passed 12-21-2016]
(a)
Qualification of plan under Internal Revenue Code. In order to be
entitled to favorable income tax treatment available under federal
law, this Plan is intended to be qualified under the provisions of
the Internal Revenue Code of 1986 (the "Code"). In the event of any
inconsistency between the provisions of this section and any other
provisions of Article 147, this section shall control, and shall apply
to all Participants regardless of whether they retired under the Plan
or terminated their employment with the City before the Effective
Date.
(b)
Limitations on benefits - Code Section 415.
(1)
This section 147.08(b) is intended to comply with the limitations of Code Section 415 as interpreted by final regulations issued on April 5, 2007 generally effective for Limitation Years beginning on and after July 1, 2007, and this Section 147.08(b) shall be applied and interpreted accordingly. Notwithstanding any contrary provisions, and in accordance with said final regulations under Code Section 415, the application of this Section 147.08(b) shall not reduce the amount of Accrued Retirement Benefit below the amount of benefit payable or accrued as of the last day of the Limitation Year immediately prior to the effective date of said final regulations for the Plan, as determined under the provisions of the Plan adopted and in effect before April 5, 2007 to the extent the same were in compliance with the requirements of Code Section 415 in effect prior to the effective date of said final regulations for the Plan.
(2)
The following words and phrases used in this Section 147.08(b) shall have the meaning set forth below unless a different meaning is clearly required by the context:
A.
Annual Addition means any Employee Contributions, other than
Pick-Up Contributions, and other amounts treated as annual additions
made to a Defined Contribution Plan under Code Section 415.
B.
Code Section 415 Affiliated Employer means any entity required
to be included with the Employer in a controlled group under Code
Section 415(g) and (h).
C.
Defined Benefit Plan means a plan described in Code Section
414(j) (and qualified under Code Section 401(a)).
D.
Defined Contribution Plan means a plan described in Code Section
414(i) (and qualified under Code Section 401(a)).
E.
Limitation Year means the Plan Year.
F.
Section 415 Compensation means compensation determined as follows:
1.
Section 415 Compensation means all amounts actually paid or
made available to the Employee for services rendered to the Employer
or a Code Section 415 Affiliated Company which are wages within the
meaning of Code Section 3401(a) and all other payments of compensation
for which the Employer is required to furnish a written statement
to the Employee under Code Sections 6041(d), 6051(a)(3) and 6052 (for
purposes of income tax reporting) determined without regard to any
rules under Code Section 3401(a) that limit the remuneration included
in wages based on the nature or location of the employment or services
performed, plus elective deferrals and similar amounts that would
have otherwise been wages and reportable but for Code Sections 125
(including "deemed Section 125 compensation" as provided for and within
the meaning of Revenue Ruling 2002 27), 132(f)(4), 402(e)(3), 402(h),
402(k), 403(b), and 457(b).
2.
Except as otherwise provided herein, Section 415 Compensation
shall include only amounts paid or treated as paid under Code Section
415 before a severance of employment with the Employer and Code Section
415 Affiliated Employer.
3.
An amount paid to an Employee after a severance of employment
with the Employer and/or Code Section 415 Affiliated Employer that
would otherwise be Section 415 compensation and that is paid by the
later of 2 1/2 months after the severance from employment or
the end of the calendar year that includes the date of severance from
employment shall be included in Section 415 compensation if: (1) the
amount is regular compensation for services during the Employee's
regular working hours, or compensation for services outside of the
Employee's regular working hours (such as overtime or shift differential),
commissions, bonuses or other similar payments, and the amount would
have been paid to the Employee before a severance from employment
if the Employee had continued in employment with the Employer and/or
Code Section 415 Affiliated Employer; (2) the amount is payment for
unused accrued bona fide sick, vacation, or other leave, and the employee
would have been able to use the leave if the Employee had continued
in employment with the Employer and/or Code Section 415 Affiliated
Employer; or (3) the amount is received pursuant to a nonqualified
unfunded deferred compensation plan and would have been paid at the
same time if the Employee had continued in employment with the Employer
and/or Code Section 415 Affiliated Employer, but only to the extent
said amount is includible in the Employee's gross income.
4.
Notwithstanding the foregoing, the Section 415 Compensation
taken into account for each Limitation Year shall not exceed $200,000,
with said dollar amount proportionately reduced for any Limitation
Year shorter than 12 months and adjusted at the same time and in the
same manner as provided by Code Section 401(a)(17).
(3)
The annual amount of Accrued Retirement Benefit payable to a
Participant that is attributable to contributions of the Employer
shall not exceed $160,000 (and for this purpose, the annual amount
of Accrued Retirement Benefit attributable to Employee Contributions
shall be determined under Code Section 411(c) to the extent and in
the manner required by Code Section 415).
(4)
The annual amount of Accrued Retirement Benefit payable to a Participant that is attributable to contributions of the Employer shall be deemed not to exceed the general limitation described in Section 147.08(b)(3) if:
A.
Such Accrued Retirement Benefit does not exceed $10,000 at any
time during the Limitation Year; and
B.
The Participant has never participated in a Defined Contribution
Plan maintained by the Employer or Code Section 415 Affiliated Employer
(and for this purpose, and as provided for in final regulations under
Code Section 415, the Employee Contributions shall not be considered
to be a separate Defined Contribution Plan).
(5)
If a Participant's benefit commencement date is before attainment of age 62, the general dollar limitation described in Section 147.08(b)(3) shall be adjusted to an "age 62 dollar limit" equal to the amount of a single life annuity payable as of the benefit commencement date that has the same actuarial equivalent present value of said dollar limitation payable as a deferred single life annuity at age 62, with the actuarial equivalent present value determined on the basis of the applicable mortality table prescribed by the Commissioner of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes of the adjustment of the Code Section 415 limitation for defined benefit plans and interest at the rate of 5% per annum; provided however:
A.
If the Plan has an immediate single life annuity payable both at age 62 and the age at benefit commencement, the "age 62 dollar limit" (if less than the foregoing age 62 dollar limit) shall be equal to the general dollar limitation described in Section 147.08(b)(3) multiplied by the ratio of the amount of the immediate single life annuity payable under the Plan to the amount of single life annuity payable under the Plan at age 62, with both said amounts determined without applying the limitations of Code § 415;
B.
For purposes of determining the age 62 dollar limit, no adjustment
shall be made for the probability of the Participant's death
after the benefit commencement date and before age 62 to the extent
a forfeiture does not occur upon the participant's death before
the benefit commencement date;
C.
The reduction for payment before age 62 shall not apply to any
benefit payable on account of the death of a Participant or on account
of a Participant becoming disabled by reason of personal injuries
or sickness;
D.
The reduction for payment before age 62 shall not apply to a
Participant who has at least 15 years of Service (taken into account
for purposes of determining the amount of the Participant's Accrued
Retirement Benefit) as a full-time employee of the police department
or fire department of the Employer (regardless of job classification
during said employment) or as a member of the Armed Forces of the
United States; and
E.
The age 62 dollar limit shall not decrease on account of an
increase in age or the performance of additional service.
(6)
If a Participant's benefit commencement date is before attainment of age 65, the general dollar limitation described in Section 147.08(b)(3) shall be adjusted to an "age $65 limit" equal to the amount of single life annuity payable as of the benefit commencement date that has the same actuarial equivalent present value of said dollar limitation payable as a single life annuity at age 65, with the actuarial equivalent present value determined on the basis of the applicable mortality table prescribed by the Commissioner of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes of the adjustment of the Code Section 415 limitation for defined benefit plans and interest at the rate of 5% per annum; provided however,
A.
If the Plan has an immediate single life annuity payable both at the benefit commencement date and at age 65, the "age $65 limit" (if less than the foregoing age $65 limit) shall be equal to the general dollar limitation described in Section 147.08(b)(3) multiplied by the ratio of (1) the amount of the immediate single life annuity payable to the Participant, computed disregarding the accruals after age 65, but including any actuarial adjustments, and without applying the limitations of Code Section 415 to (2) the amount of single life annuity that would be payable to an age 65 hypothetical participant with the same accrued benefit (with no increases for commencement after age 65) as the Participant, determined disregarding the accruals after age 65 and without applying the limitations of Code Section 415; and
B.
For purposes of determining the age $65 limit, no adjustment
shall be made for the probability of the Participant's death
after age 65 and before the benefit commencement date to the extent
a forfeiture does not occur upon the participant's death before
the benefit commencement date.
(7)
If a Participant's Accrued Retirement Benefit is paid in a form other than a single life annuity (as otherwise may be provided for in the Plan), it shall be adjusted as follows to its actuarial equivalent on a single life annuity basis for the purpose of applying the general dollar limitation described in Section 147.08(b)(3), except that no adjustment shall be made for any joint and survivor annuity form of payment (where the spouse is the survivor annuitant) and for the value of any ancillary benefits:
A.
For payment of Accrued Retirement Benefit in a form not subject
to Code Section 417(e)(3) (assuming Code Section 417(e)(3) applies
to the Plan to the extent and in the manner required by Code Section
415), the actuarial equivalent single life annuity for this purpose
shall be the greater of:
1.
The amount that would be payable to the Participant as of the
same benefit commencement date under the single life annuity form
of payment of the Plan; and
2.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity if determined
on the basis of the applicable mortality table prescribed by the Commissioner
of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes
of the adjustment of the Code Section 415 limitation for defined benefit
plans and interest at the rate of 5% per annum.
B.
For payment of Accrued Retirement Benefit in a form subject
to Code Section 417(e)(3) (assuming Code Section 417(e)(3) applies
to the Plan to the extent and in the manner required by Code Section
415), the actuarial equivalent single life annuity for this purpose
shall be the greatest of:
1.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment when determined
on the basis of the Plan's Actuarial Equivalent factors;
2.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment when determined
on the basis of the applicable mortality table prescribed by the Commissioner
of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes
of the adjustment of the Code Section 415 limitation for defined benefit
plans and interest at the rate of 5 1/2% per annum; and
3.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment (computed by
using the applicable mortality table and applicable interest rate),
divided by 1.05.
C.
Notwithstanding any contrary provisions, for payment of Accrued
Retirement Benefit in a form subject to Code Section 417(e)(3) (assuming
Code Section 417(e)(3) applies to the Plan to the extent and in the
manner required by Code Section 415) with a benefit commencement date
falling in the Plan Years beginning in 2004 and 2005 (except as provided
in Section 101(d)(3) of the Pension Funding Equity Act of 2004), the
actuarial equivalent single life annuity for this purpose shall be
the greater of:
1.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment when determined
on the basis of the Plan's Actuarial Equivalent factors; and
2.
The amount that would be payable to the Participant as of the
same benefit commencement date under a single life annuity that has
the same present value as the actual form of payment when determined
on the basis of the applicable mortality table prescribed by the Commissioner
of Internal Revenue under Code Section 415(b)(2)(E)(v) for purposes
of the adjustment of the Code Section 415 limitation for defined benefit
plans and interest at the rate of 5 1/2% per annum.
(8)
If a Participant has less than 10 years of service, the general dollar limitation described in Section 147.08(b)(3) and the special dollar limitation described in Section 147.08(b)(4) shall each be multiplied by the ratio of the Participant's years of service to 10 but not by less than one tenth; provided, however, this adjustment shall not apply to any benefit payable on account of the death of a Participant or on account of a Participant becoming disabled by reason of personal injuries or sickness. For this purpose, a year of service shall be credited for each annual computation period in which the Participant is credited with the service required to accrue a benefit for the period taking into account service with the Employer (or a predecessor employer) and a Code Section 415 Affiliated Company.
(9)
The general dollar limitation described in Section 147.08(b)(3) shall be adjusted by substituting as of January 1 of each calendar year and effective for the Limitation Year that ends in or with said calendar year, the limitation determined by the Commissioner of Internal Revenue pursuant to Code Section 415(d)(1). Such adjusted limitation shall apply to all Participants. Said adjustment shall be made for purposes of applying the limitations of this section, regardless of whether the Plan actually provides for any cost-of-living adjustments for retirement benefits.
(10)
If a Participant has multiple "annuity starting dates" within
the meaning of Code Section 415, the limitations of this section shall
be applied as of each of the annuity starting dates taking into account
the benefits that have been or will be provided at all of the annuity
starting dates to the extent and in the manner required by Code Section
415.
(11)
Notwithstanding any contrary provisions, the Annual Additions
allocated to a Participant for any Limitation Year shall not exceed
the lesser of:
A.
$40,000, provided that as of January 1 of each calendar year
and effective for the Limitation Year ending in or with said calendar
year, the dollar amount as adjusted for cost of living increases by
the Commissioner of Internal Revenue pursuant to Code Section 415(d)(1)
shall be substituted for this specified dollar amount, and provided
further, that said dollar amount for any Limitation Year shorter than
12 months shall be proportionately reduced; and
B.
100% of the Participant's Section 415 Compensation for
the Limitation Year, (whether or not he is a Participant during the
entire Limitation Year).
(12)
For the purpose of applying the limitations of this Section 147.08(b), all Defined Benefit Plans, whether or not terminated, of the Employer and any Code Section 415 Affiliated Employer shall be treated as one Defined Benefit Plan, and all Defined Contribution Plans, whether or not terminated, of the Employer and any Code Section 415 Affiliated Employer shall be treated as one Defined Contribution Plan.
(13)
If the Employer or any Code Section 415 Affiliated Employer
maintains a multiemployer plan as defined in Code Section 414(f) (and
qualified under Code § 401(a)), benefits under said multiemployer
plan shall be taken into account only to the extent provided by contributions
of the Employer or Code Section 415 Affiliated Employer.
(14)
If this Plan is aggregated with a plan that is subject to the special limitation and/or transitional rules with respect to Code Section 415, satisfaction of the requirements of Code Section 415 shall be determined by reference to the larger of the limitations set forth in this Section 147.08(b) or the limitations applicable to said other plan in the manner provided for in Code Section 415.
(15)
If the limitations imposed by this Section 147.08(b) and Code Section 415 are exceeded by reason of the aggregation of this Plan with a plan not previously required to be aggregated, said limitations may be exceeded, provided that the requirements of Code Section 415 for doing so are satisfied.
(16)
If a Participant's Accrued Retirement Benefit must be reduced to satisfy the requirements set forth in this Section 147.08(b) and in Code Section 415, such reduction shall be accomplished first by reducing the Participant's Accrued Retirement Benefit under the Defined Benefit Plan in which the Participant is an active participant and then by reducing the Participant's retirement benefit under the other Defined Benefit Plans in which the Participant was an active participant, starting with the Defined Benefit Plan in which the Participant was last an active participant and moving, successively, and to the extent necessary, to the next preceding Defined Benefit Plan and so forth.
(17)
If a Participant's Annual Additions must be reduced to satisfy the requirements set forth in this Section 147.08(b) and in Code Section 415, the Annual Addition last allocated shall be reduced. For the purposes of and as required by Section 415, such reduction shall only apply to limitation years beginning before July 1, 2007.
(c)
Required payment provisions - Code Section 401(a)(9).
(1)
Notwithstanding any contrary provisions, the payment of benefits under the Plan shall be made in accordance with a reasonable good faith interpretation of Code § 401(a)(9). The provisions in this Section 147.08(c) shall be applicable to the extent a benefit is otherwise payable under the applicable substantive provisions of the Plan, and to the extent applicable, the provisions in this Section 147.08(c) shall supersede any inconsistent benefit payment provisions in the Plan.
(2)
Payment of benefits to a Participant shall begin no later than
the required beginning date of April 1 of the calendar year following
the later of (i) the calendar year in which the Participant attains
age 70 1/2% or (ii) the calendar year in which the Participant
retires from employment by the Employer.
(3)
A joint and survivor annuity form of payment with a survivor
annuitant not the Participant's spouse shall be available to
a Participant only if the percentage of the pension payable to the
survivor annuitant on or after the Participant's required beginning
date and following the Participant's death does not exceed the
applicable percentage determined under Treas. Reg. § 1.401(a)(9)-6
in the manner specified thereunder.
(4)
A certain and life annuity form of payment shall be available
to a Participant only if the certain period does not exceed the applicable
distribution period under the Uniform Lifetime Table Treas. Reg. § 1.72
9 determined under Treas. Reg. § 1.401(a)(9)-6 in the manner
specified thereunder.
(5)
If a Participant dies before the required beginning date, payment
of benefits to a beneficiary:
A.
If made to a designated beneficiary (within the meaning of Code
Section 401(a)(9)) who is the Participant's spouse and the sole
designated beneficiary, shall be made or begin no later than the later
of December 31 of the calendar year following the calendar year in
which the Participant to whom such spouse was married died or December
31 of the calendar year in which such Participant would have attained
age 70 1/2;
B.
If made to a designated beneficiary (within the meaning of Code
Section 401(a)(9)) who is not the Participant's spouse, or if
the Participant's spouse is not the sole designated beneficiary,
shall be made no later than December 31 of the calendar year in which
falls the fifth anniversary of the Participant's death, or if
paid for the life of, or for a period not exceeding the life expectancy
of, the beneficiary, shall begin no later than December 31 of the
calendar year following the calendar year in which the Participant
died; and
C.
If there is no designated beneficiary (within the meaning of
Code Section 401(a)(9) as of September 30 of the calendar year following
the calendar year in which the Participant died), shall be made no
later than December 31 of the calendar year in which falls the fifth
anniversary of the Participant's death.
(6)
If the designated beneficiary is the Participant's surviving spouse and is the sole designated beneficiary, and if the spouse dies after the Participant but before payment to the Participant's spouse is required to begin under this Section 147.08(c), this section shall apply to the spouse as if the spouse were a participant without a spouse.
(7)
If a Participant dies after payment has commenced to him/her
under an annuity form of payment, any payments to be made thereafter
shall continue in accordance with the requirements of Code Section
401(a)(9).
(d)
Direct rollovers - Code Section 401(a)(31).
(1)
A Distributee who is eligible to receive a distribution from
the Plan which is an Eligible Rollover Distribution may elect to transfer
said distribution to an Eligible Rollover Plan specified by the Distributee
in a Direct Rollover.
(2)
Notwithstanding any contrary provisions of this Section 147.08(d) (except as otherwise required by Code Section 401(a)(31)), (i) a Direct Rollover can be elected for part of an Eligible Rollover Distribution only if the amount so elected is at least $500, (ii) only one Eligible Rollover Plan may be designated for a Direct Rollover, (iii) a Direct Rollover election made with respect to one payment in a series of payments shall apply to all subsequent payments until another election is made by the Distributee, and (iv) no Direct Rollover election is required to be provided for an Eligible Rollover Distribution of less than $200 (when aggregated with all other Eligible Rollover Distributions for the taxable year).
(3)
For purposes of this Section 147.08(d), the following words and phrases shall have the meaning set forth below unless a different meaning is clearly required by the context:
A.
Direct Rollover means a payment by the Plan to the Eligible
Rollover Plan specified by the Distributee.
B.
Distributee means (i) an employee or former employee and (ii)
the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse
who is an alternative payee under a qualified domestic relations order,
as defined in Code § 414(p), with respect to the interest
of the spouse or former spouse.
C.
Eligible Rollover Plan means an individual retirement account
described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), a Roth IRA described in Code Section
408A (effective January 1, 2008), a qualified trust described in Code
Section 401(a), an annuity plan described in Code Section 403(a),
an annuity contract described in Code Section 403(b), and an eligible
deferred compensation plan described in Code Section 457(b) maintained
by a state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state that will separately
account for a direct rollover (from this Plan).
D.
Eligible Rollover Distribution means any distribution of all
or any portion of the balance to the credit of the Distributee under
the Plan, but excluding (as applicable) (i) any distribution which
is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life or life expectancy of
the Distributee and the Distributee's designated beneficiary
or for a specified period of 10 years or more, (ii) any distribution
to the extent such distribution is required under Code Section 401(a)(9),
(iii) the portion of any distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities), and (iv) any hardship
distribution; provided, however, the portion of a distribution that
is not includible in gross income shall not fail to be treated as
an Eligible Rollover Distribution merely because that portion is not
includible in gross income, but only with respect to (i) prior to
January 1, 2007, an Eligible Retirement Plan that is an individual
retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), or a qualified
defined contribution plan described in Code Section 401(a) or Code
Section 403(a) that will separately account for such a Direct Rollover
and (ii) from and after January 1, 2007, an Eligible Retirement Plan
that is an individual retirement account described in Code Section
408(a), an individual retirement annuity described in Code Section
408(b), or a qualified trust, annuity plan or annuity contract described
in Code Section 401(a), 403(a) or 403(b) respectively that will separately
account for such a Direct Rollover.
(4)
Effective January 1, 2010, and in conformance with Code Section
402(c)(11), a beneficiary eligible to receive a distribution from
the Plan on account of a Participant's death may elect to transfer
said distribution in a direct rollover to an individual retirement
plan (described in clause (i) or (ii) of Code Section 402(c)(8) and
including a Roth IRA) established by the beneficiary for this purpose,
provided that (i) the beneficiary is not otherwise a Distributee,
(ii) the beneficiary is a designated beneficiary as defined in Code
Section 401(a)(9)(E), and (iii) the distribution would otherwise be
an Eligible Rollover Distribution but for the requirement that the
distribution be made to a Distributee.
(5)
Said election and Direct Rollover shall be made in accordance
with procedures established under the Plan in accordance with Code
Section 401(a)(31).
(e)
Rollovers from other plans. Effective January 1, 2007, the Plan will
accept Participant rollover contributions and direct rollovers of
eligible rollover distributions from the following types of plans,
contracts and accounts for the purpose of purchasing service credit
(including military service credit) under this Plan or repaying a
cash-out of contributions refunded under this Plan, but only to the
extent otherwise permitted under this Plan:
(1)
A qualified plan described in Code Section 401(a) or 403(a),
including employee after-tax contributions.
(2)
An annuity contract described in Code Section 403(b), excluding
employee after-tax contributions.
(3)
An eligible plan under Code Section 457 which is maintained
by a state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state.
(4)
The portion of a distribution from an individual retirement
count or annuity described in Code Sections 408(a) or (b) that is
eligible to be rolled over and would otherwise be includible in the
Participant's gross income.
(f)
Death in qualified military service - Code Section 401(a)(37). As
and to the extent required by Code Section 401(a)(37), a Participant
who dies on or after January 1, 2007 while performing qualified military
service (within the meaning of Code Section 414(u)) and who would
have been entitled to reemployment rights under the Plan under the
Uniformed Services Employment and Reemployment Rights Act of 1994
at death shall be treated as follows:
(1)
Years of Service shall be credited for the period of the Participant's
qualified military service to determine whether the Participant is
vested in a benefit under the Plan for purposes of the death benefits
payable under the Plan; and
(2)
The Participant shall be treated as if death had occurred while
employed by the Employer for purposes of the death benefits payable
under this Plan.
(g)
Credit for qualified military service - Code Section 414(u). Contributions,
benefits and service credit with respect to qualified military service
shall be provided under the Plan in accordance with Code Section 414(u)
and the Uniformed Services Employment and Reemployment Rights Act
of 1994 ("USERRA"), 38 U.S.C. Section 4318. Upon a Participant's
return to employment by the City following a period of qualified military
service, the City shall make the contributions to this Plan with respect
to the first 12 months of such qualified service that the Participant
would otherwise be required to make pursuant to this Plan, Code Section
414(u) and USERRA in order to be entitled to service credit under
this Plan for the first 12 months of such qualified military service.
Such Participant shall be required to make contributions to this Plan
pursuant to Code Section 414(u), USERRA and 51 Pa.C.S.A. Section 7306
in order to be entitled to service credits under this Plan for qualified
military service in excess of 12 months.
(h)
Domestic relations orders.
(1)
Notwithstanding any contrary provisions, to the extent permitted
by law, all or a part of a Participant's benefits may be assigned
and paid to an "alternate payee" to the extent required and in the
manner determined by the Plan with respect to a "qualified domestic
relations order". For this purpose, an "alternate payee" and "qualified
domestic relations order" shall be determined by the Plan Administrator
who may use as guidance Code Section 414(p).
(2)
The Plan may establish such procedures as it deems necessary
or desirable to review domestic relations orders and to administer
payments under domestic relations orders.
(i)
Exclusive benefit - Code Section 401(a)(2). All contributions made
by the City to the Plan shall be used and applied for the exclusive
benefit of Participants and their beneficiaries, and such contributions
shall not be used for, nor diverted to, purposes other than for such
exclusive benefit of the Participants and their beneficiaries; provided,
that, for this purpose, payment of administrative expenses by the
Plan to the extent not paid by the City, shall be considered paid
for such exclusive benefit.
(j)
Forfeitures - Code Section 401(a)(8). Forfeitures arising under the
Plan because of a severance of Service before a Participant becomes
eligible for a retirement allowance, or for any other reason, shall
be applied to reduce the cost of the Plan, and not to increase the
benefits otherwise payable to Participants.
(k)
Vesting upon termination - Code Section 401(a)(7) (as in effect September
1, 1974). Upon a complete or partial termination of the Plan, or upon
the complete discontinuance of contributions, as and to the extent
required by the Code, each affected Participant shall be fully vested
in his or her accrued benefit as of the date of such termination,
partial termination or discontinuance to the extent then funded. In
the event of a complete termination of the Plan, the Plan assets shall
be allocated and paid in accordance with applicable law and regulations,
and upon satisfaction of all liabilities of the Plan to Participants
and their beneficiaries, any residual assets of the Plan shall be
returned to the City.
(l)
Leased employees - Code Section 414(n).
(1)
A person who is a leased employee shall be treated as in employment
with the Employer, but shall not participate in the Plan or accrue
any benefits under the Plan except as specifically provided for in
the Plan. If a person is eligible for benefits under the Plan as a
leased employee, to the extent and in the manner prescribed by Code
§ 414(n), the benefits provided by the leasing organization
to said person shall be taken into account in determining benefits
under the Plan.
(2)
For this purpose a Leased Employee means, for Plan Years beginning
on and after January 1, 1997, as determined in accordance with Code
Section 414(n), any person who is not an employee of the Employer
and who, pursuant to an agreement between a leasing organization and
the Employer, performs services for the Employer on a substantially
full-time basis for a period of at least one year under the primary
direction or control of the Employer, but excluding any such person
if (i) such person is covered under a money purchase pension plan
maintained by the leasing organization that provides for a 10% nonintegrated
employer contribution for each of its participants, full and immediate
vesting, and immediate participation for each non excluded employee
of the leasing organization, and (ii) leased employees (determined
without regard to this exclusion) do not constitute more than 20%
of the Employer's nonhighly compensated employee workforce.
[Ord. 4-2011, passed 1-19-2011]
(a)
Designation, powers and duties of the plan administrator. The Board
of Directors ("Board") of the Police Relief and Pension Association
("Association") is hereby designated to be the Administrator of the
Plan. The Board shall have primary responsibility to administer the
Plan for the exclusive benefit of the Participants and their Survivors,
subject to the specific terms of the Plan. The Board shall administer
the Plan in accordance with its terms and shall have the power and
discretion to construe the terms of the Plan and to determine all
questions arising in connection with the administration, interpretation,
and application of the Plan. Any such determination by the Board shall
be conclusive and binding upon all persons. The Board may establish
procedures, correct any defect, supply any information, or reconcile
any inconsistency in such manner and to such extent as shall be deemed
necessary or advisable to carry out the purposes of the Plan; provided,
however, that any procedure, discretionary act, interpretation or
construction shall be done in a nondiscriminatory manner based upon
uniform principles consistently applied and shall be consistent with
the intent that the Plan shall continue to be deemed a qualified plan
under the terms of Code Section 401(a), and shall comply with the
terms of Act 205 and all regulations issued pursuant thereto. The
Association shall have all powers necessary or appropriate to accomplish
the Association's duties as Administrator under the Plan.
The Board shall be charged with the duties of the general administration
of the Plan as set forth under the terms of the Plan, including, but
not limited to, the following:
(1)
The discretion to determine all questions relating to the eligibility
of Employees to participate or remain a Participant hereunder and
to receive benefits under the Plan;
(2)
To compute, certify, and direct the custodian or trustee of
the Pension Fund with respect to the amount and the kind of benefits
to which any Participant shall be entitled hereunder;
(3)
To authorize and direct the custodian or trustee of the Pension
Fund with respect to all discretionary or otherwise directed disbursements
from the Pension Fund;
(4)
To maintain all necessary records for the administration of
the Plan;
(5)
To interpret the provisions of the Plan and to make and publish
such rules for regulation of the Plan as are consistent with the terms
hereof;
(6)
To determine the size and type of any contract to be purchased
from any insurer and to designate the insurer from which such contract
shall be purchased;
(7)
To compute and certify to the Employer and to the custodian
or trustee of the Pension Fund from time to time the sums of money
necessary or desirable to be contributed to the Plan;
(8)
To consult with the Employer and the Aggregate Pension Board
(referred to in Subparagraph (j) below) regarding the short and long-term
liquidity needs of the Plan in order that the Aggregate Pension Board
can exercise any investment discretion in a manner designed to accomplish
specific objectives;
(9)
To determine the validity of, and take appropriate action with
respect to, any domestic relations order received by it, whether or
not "qualified" within the meaning of the Code; and
(10)
To assist any Participant regarding the Participant's rights,
benefits, or elections available under the Plan.
(b)
Bylaws, meetings, records and reports. The Board shall adopt Bylaws
regulating its organization and operations and shall hold such meetings
as the efficient discharge of its duties may require. The Board shall
keep a record of all actions taken and shall keep all other books
of account, records, policies, and other data that may be necessary
for proper administration of the Plan and shall be responsible for
supplying all information and reports to the Internal Revenue Service,
Participants, Survivors and others as required by law.
(c)
Appointment of advisors. The Board may appoint counsel, actuaries,
accountants, physicians, specialists, advisors, agents (including
nonfiduciary agents) and other persons as the Board deems necessary
or desirable in connection with the administration of this Plan, including
but not limited to agents and advisors to assist with the administration
and management of the Plan, and thereby to provide, among such other
duties as the Board may appoint, assistance with maintaining Plan
records and the providing of investment information to the Investment
Managers (defined in Subparagraph (h)(12) below) of the Pension Fund.
(d)
Payment of expenses. All expenses of administration that are approved
by the Board may be paid out of the Pension Fund unless paid by the
Employer. Such expenses shall include any expenses incident to the
functioning of the Association, or any person or persons retained
or appointed by the Board incident to the exercise of their duties
under the Plan, including, but not limited to, fees of accountants,
actuaries, counsel, Investment Managers, and other specialists and
their agents, the costs of any bonds required pursuant to law, and
other costs of administering the Plan.
(e)
Claims procedure. Claims for benefits under the Plan may be filed
in writing with the Board. Written notice of the disposition of a
claim shall be furnished to the claimant within 60 days after the
application is filed, or such other period as may be required by applicable
law. In the event the claim is denied, the reasons for the denial
shall be specifically set forth in the notice in language calculated
to be understood by the claimant, pertinent provisions of the Plan
shall be cited, and, where appropriate, an explanation as to how the
claimant can perfect the claim will be provided. In addition, the
claimant shall be furnished with an explanation of the Plan's
claims review procedure.
(f)
Claims review procedure. Any Participant, former Participant, or
Survivor of either, who has been denied a benefit by a decision of
the Board pursuant to Subparagraph (e) shall be entitled to request
the Board to give further consideration to a claim by filing with
the Board a written request for a hearing. Such request, together
with a written statement of the reasons why the claimant believes
the claim should be allowed, shall be filed with the Board no later
than 30 days after receipt of the written notification provided for
in Subparagraph (e). The Board shall then conduct a hearing within
the next 30 days, at which the claimant may be represented by an attorney
or any other representative of such claimant's choosing and expense
and at which the claimant shall have an opportunity to submit written
and oral evidence and arguments in support of the claim. At the hearing
(or prior thereto upon five business days' written notice to
the Board) the claimant or the claimant's representative shall
have an opportunity to review all documents in the possession of the
Association which are pertinent to the claim at issue and its disallowance.
Either the claimant or the Board may cause a court reporter to attend
the hearing and record the proceedings. In such event, a complete
written transcript of the proceedings shall be furnished to both parties
by the court reporter. The full expense of any such court reporter
and such transcripts shall be borne by the party causing the court
reporter to attend the hearing. A final decision as to the allowance
of the claim shall be made by the Board within 60 days of receipt
of the appeal (unless there has been an extension of 60 days due to
special circumstances, provided the delay and the special circumstances
occasioning it are communicated to the claimant within the sixty-day
period). Such communication shall be written in a manner calculated
to be understood by the claimant and shall include specific reasons
for the decision and specific references to the pertinent Plan provisions
on which the decision is based.
(g)
Claims appeal procedure. Any Participant, former Participant or Survivor
of either, who is aggrieved by a decision of the Board affecting his
or her benefit under the Plan may appeal such decision to the Court
of Common Pleas of Erie County in accordance with the provisions of
the Local Agency Law, 2 Pa.C.S.A. § 752, and the Judicial
Code, 42 Pa.C.S.A. §§ 933(a)(2) and 5571(b), or their
respective successor provisions and amendments, within the time established
by law for filing an appeal from the decision of a local agency.
(h)
Investment powers and duties of the Board. The Board shall have the
following powers, rights and duties with respect to the Pension Fund,
subject to Subparagraph (j) below:
(1)
To retain in cash so much of the Pension Fund as it deems advisable
and to deposit any cash so retained in any bank or similar financial
institution (including any such institution which may be appointed
to serve as trustee hereunder), and shall include the right to hold
funds on a temporary basis in accounts or investments that do not
bear interest.
(2)
To invest and reinvest the principal and income of the Pension
Fund and keep said Fund invested, without distinction between principal
and income, in securities which are at the time legal investments
for fiduciaries under the Pennsylvania Fiduciaries Investment Act,
or as the same may be subsequently modified or amended.
(3)
To sell property held in the fund at either public or private
sale for cash or on credit at such times as it may deem appropriate;
to exchange such property; to grant options for the purchase or exchange
thereof.
(4)
To consent to and participate in any plan of reorganization,
consolidation, merger, extension or other similar plan affecting property
held in the fund; to consent in any contract, lease, mortgage, purchase,
sale or other action by any corporation pursuant to any such plan.
(5)
To exercise all conversion and subscription rights pertaining
to property held in the fund.
(6)
To exercise all voting rights with respect to property held
in the fund and in connection therewith to grant proxies, discretionary
or otherwise.
(7)
To place money at any time in a deposit bank deemed to be appropriate
for the purposes of this Plan no matter where situated, including
in those cases where a bank has been appointed to serve as trustee
hereunder, the savings department of its own commercial bank.
(8)
In addition to the foregoing powers, the Board shall also have
all of the powers, rights, and privileges conferred upon trustees
by the Pennsylvania Fiduciaries Investment Act, or as the same may
be subsequently modified or amended, and the power to do all acts,
take all proceedings and execute all rights and privileges, although
not specifically mentioned herein, as the Association may deem necessary
to administer the Pension Fund.
(9)
To maintain and invest the assets of this Plan on a collective
and commingled basis with the assets of other pension plans maintained
by the Employer, provided that the assets of each respective plan
shall be accounted for and administered separately.
(10)
To invest the assets of the Pension Fund in any collective commingled
trust fund maintained by a bank or trust company, including any bank
or trust company that may act as a trustee hereunder. In this connection,
the commingling of the assets of this Plan with assets of other eligible,
participating plans through such a medium is hereby specifically authorized.
Any assets of the Plan which may be so added to such collective trusts
shall be subject to all of the provisions of the applicable declaration
of trust, as amended from time to time, which declaration, if required
by its terms or by applicable law, is hereby adopted as part of the
Plan, to the extent of the participation in such collective or commingled
trust fund by the Plan.
(11)
To make any payment or distribution required or advisable to
carry out the provisions of the Plan, provided that if a trustee is
appointed by the Association, such trustee shall make such distribution
only at the direction of the Association.
(12)
To retain the services of one or more Investment Managers to
manage (with the power to acquire and dispose of) all or any part
of the Pension Fund assets, provided that each of such Investment
Managers is registered as an investment advisor under the Investment
Advisors Act of 1940, is a bank (as defined in that act), or is an
insurance company qualified to manage, acquire or dispose of pension
trust assets under the laws of more than one state; in such event,
the Employer shall follow the directions of such Investment Manager
or Managers with respect to the acquisition and disposition of fund
assets, but shall not be liable for the acts or omissions of such
Investment Manager or Managers with respect to the acquisition and
disposition of fund assets, nor shall it be under any obligation to
review or otherwise manage any Pension Fund assets which are subject
to the management of such Investment Manager or Managers.
(i)
Gifts, bequests and fees to the Pension Fund. The Board is authorized
to:
(1)
Take and accept by gift, grant or bequest, money and property,
real, personal and mixed, for the benefit of the Pension Fund, in
trust, to be added to the Fund, subject to such directions as the
donors of such money and property may prescribe.
(2)
Deposit into the Pension Fund all rewards, fees, gifts, testimonials
and emoluments that may be presented, paid or given to any member
or to the Pension Fund on account of police services, except such
as may under the law be payable to the City; all bequests, legacies,
gifts or donations made to the Pension Fund or the City in trust,
for the benefit of the Bureau of Police for the period of one year
or more, and for which there shall be no lawful claimant, and all
income resulting from activities conducted by or under the supervision
of the Bureau of Police, by and with the approval of Council, except
money obtained from entertainment sponsored by the Erie Fraternal
Order of Police, Lodge 7.
(j)
Aggregate Pension Board. Effective November 25, 1987, the assets
of the Pension Fund were transferred to a trust fund under the control
of the Aggregate Pension Board as set forth in Article 173 of the
City of Erie Codified Ordinances. The Aggregate Pension Board shall
establish investment guidelines and be responsible for the investment
of all assets of the Pension Fund. In the event that Article 173 is
repealed and the assets of the Pension Fund are no longer under the
control of the Aggregate Pension Board, control of the assets of the
Pension Fund will revert to the Association which shall have the investment
powers and duties set forth in Paragraph (h) above.
(k)
Value of the Pension Fund. All determination as to the value of the
assets of the Pension Fund, and as to the amount of the liabilities
thereof, shall be made by the Board or its appointed trustee, whose
decisions shall be final. In making any such determination, the Board
or trustee shall be entitled to seek and rely upon the opinion of
or any information furnished by brokers, appraisers and other experts,
and shall also be entitled to rely upon reports as to sales and quotations,
both on security exchanges and otherwise as contained in newspapers
and in financial publications.
(l)
Provisions to comply with the Municipal Pension Plan Funding Standard
and Recovery Act of 1984, elsewhere referred to herein as Act 205.
(1)
Actuarial evaluations. The Plan's Actuary shall perform
an actuarial valuation at least biennially unless the Employer is
applying or has applied for supplemental state assistance pursuant
to Section 603 of Act 205, whereupon actuarial valuation reports shall
be made annually. Such biennial actuarial valuation report shall be
made as of the beginning of each Plan Year occurring in an odd-numbered
calendar year, beginning with the year 1985. Such actuarial valuation
shall be prepared and certified by an Approved Actuary, as such term
is defined in Act 205.
The expenses attributable to the preparation of any actuarial
valuation report or experience investigation required by Act 205 or
any other expenses which is permissible under the terms of the Act
and which are directly associated with administering the Plan shall
be an allowable administrative expense payable from the assets of
the Pension Fund. Such allowable expenses shall include, but not be
limited, to the following:
A.
Investment costs associated with obtaining authorized investments
and investment management fees;
B.
Accounting expenses;
C.
Premiums for insurance coverage on Fund assets;
D.
Reasonable and necessary counsel fees incurred for advice or
to defend the Fund; and
E.
Legitimate travel and education expense for pension plan officials;
provided, however, that the municipal officials of the Employer, in
their fiduciary role, shall monitor the services provided to the Plan
to ensure that the expenses are necessary, reasonable, and benefit
the pension plan and, further provided, that the Plan Administrator
shall document all such expenses item by item, and where necessary,
hour by hour.
(2)
Act 205 reports. The actuarial reports required by Subparagraph
(1)(l) above shall be prepared and filed under the supervision of
the Chief Administrative Officer, which shall be the Mayor of the
City or his/her designee.
The Chief Administrative Officer shall determine the financial
requirements of the plan on the basis of the most recent actuarial
report and shall determine the "Minimum Municipal Obligation" (as
defined in Act 205) of the Employer with respect to funding the plan
for any given Plan Year. The Chief Administrative Officer shall submit
the financial requirements of the Plan and the Minimum Municipal Obligation
of the Employer to the Council annually and shall certify the accuracy
of such calculations and their conformance with Act 205.
(3)
Benefit modifications. Prior to the adoption of any benefit
plan modification by the Employer, the Chief Administrative Officer
of the Plan shall provide to the Council a cost estimate of the proposed
benefit plan modification. Such estimate shall be prepared by an approved
Actuary, which estimate shall disclose to the Council the impact of
the proposed benefit plan modification on the future financial requirements
of the Plan and the future Minimum Municipal Obligation of the Employer
with respect to the Plan.
[Ord. 4-2011, passed 1-19-2011]
(a)
Effective as of December 1, 2003, every full-time active police officer (hereinafter "Participant") that is participating in the Plan who shall have accrued at least 21 years of Service on active duty as a police officer and who shall have attained the age of 51 years or more, and who is otherwise eligible for the Normal Retirement Benefit provided under Subsection 147.05 hereof, may elect the Partial Lump Sum Distribution Option ("PLSDO") provided by Subparagraph (c) below in lieu of any other benefits under the Plan.
(b)
A Participant may elect the PLSDO at any time after six months following
attainment of his/her Normal Retirement Date by delivering to the
Association and the Employer a written notice stating his/her intention
to terminate his/her employment with the City on an Employment Termination
Date which follows by at least six months the date of delivery of
such notice to the Association and the Employer, and his/her intention
to retire under the Plan as of a Pension Lookback Date which precedes
his/her selected Employment Termination Date by either 12, 24 or 36
months, as selected by the Participant in such Notice, which is hereinafter
referred to as the "PLSDO Notice". (This six months' advance
notice period for selecting an Employment Termination Date shall be
waived for those Participants who submit their PLSDO Notice to the
Association and the Employer during the first full calendar month
following the adoption of the Ordinance containing this PLSDO.) A
Participant may not select a Pension Lookback Date in his/her PLSDO
Notice which precedes his/her selected Employment Termination Date
by 12 months unless he/she shall have accrued at least 21 years of
Service under the Plan and shall have attained at least age 51 at
his/her selected Employment Termination Date. A Participant may not
select a Pension Lookback Date in his/her PLSDO Notice which precedes
his/her selected Employment Termination Date by 24 months unless he/she
shall have accrued at least 22 years of Service under the Plan and
shall have attained at least age 52 at his/her selected Employment
Termination Date. A Participant may not select a Pension Lookback
Date in his/her PLSDO Notice which precedes his/her selected Employment
Termination Date by 36 months unless he/she shall have accrued at
least 23 years of Service and shall have attained at least age 53
at his/her selected Employment Termination Date. A Participant may
revoke his/her notice of intention to terminate employment with the
City and to retire under the Plan by delivery of another written notice
to the Association and the Employer to that effect at any time prior
to the Employment Termination Date stated in his/her previous PLSDO
Notice.
(c)
A Participant who elects the PLSDO pursuant to Paragraph (b) above
shall receive, commencing with or within 30 days following the Employment
Termination Date selected in his/her PLSDO Notice:
(1)
His/her Normal Retirement Benefit determined as of the Pension
Lookback Date specified in his/her PLSDO Notice; and
(2)
A lump sum cash distribution equal to the monthly retirement benefit provided in (1) above, multiplied by the number of months, 12, 24 or 36, specified in the Participant's PLSDO Notice, or the number of months which elapsed from the Pension Lookback Date which the Participant selected in his/her PLSDO Notice to the last day of the month in which occurs his/her death or actual termination of employment, if earlier. This lump sum cash distribution shall be eligible for rollover to the Participant's Individual Retirement Account or to another qualified plan pursuant to Subsection 147.08(d) hereof, subject to the limitations and requirements of the Internal Revenue Code.
|
After commencement of payment to a Participant pursuant to his/her
PLSDO election, such Participant shall not be eligible for any other
benefit under the Plan.
|
(d)
The Cost of Living Adjustment provided by Subsection 147.05(g)(1) hereof (applicable to Participants hired prior to January 1, 1981) to the Normal Retirement Benefit provided under (c)(1) above shall be calculated as of the prior month, which is determined from time to time by the number of months, 12, 24 or 36 by which the Pension Lookback Date specified in the Participant's PLSDO Notice precedes the Employment Termination Date specified in such Notice, or the number of months which elapsed from the Pension Lookback Date specified in such Notice to the last day of the month in which occurs his/her death or actual termination of employment, if earlier. The Cost of Living Adjustment provided by Subsection 147.05(g)(2) hereof (applicable to Participants hired on or after January 1, 1981) to the Normal Retirement Benefit provided under (c)(2) above shall be based upon the basic monthly salary paid to a Class A patrolman of the City at a prior month, which is determined from time to time by the number of months, 12, 24 or 36, by which the Pension Lookback Date specified in the Participant's PLSDO Notice precedes the Employment Termination Date specified in such Notice, or the number of months which elapsed from the Pension Lookback Date specified in such Notice to the last day of the month in which occurs his/her death or actual termination of employment, if earlier. No Cost of Living Adjustment shall be calculated or credited under Subsection 147.05(g)(1) or (2) hereof with respect to any period prior to a Participant's Employment Termination Date.
(e)
A Participant who delivers a PLSDO Notice to the City and who subsequently becomes permanently and totally disabled and eligible for a Disability Retirement Benefit under Subsections 147.05(e) or (f) hereof prior to the Employment Termination Date specified in such PLSDO Notice may revoke such Notice prior to the Employment Termination Date, in which case it shall be deemed of no effect, and the Participant shall retire with the Disability Retirement Benefit for which s/he is eligible under the Plan.
(f)
In the event that a Participant who delivers a PLSDO Notice to the
City dies prior to the actual payment of the lump sum cash distribution
required by his/her election of a PLSDO and Subparagraph (c)(2) above,
then it shall be paid to his/her surviving spouse, or if none, to
his/her surviving children per stirpes or if none, to his/her estate,
but the amount of such lump sum cash distribution shall be calculated
by multiplying the monthly retirement benefit provided in Subparagraph
(c)(1) above by the number of whole months which elapsed from the
Pension Lookback Date which the Participant selected in his/her PLSDO
Notice to the last day of the month in which his/her death occurs.
In the event that a Participant who delivers a PLSDO Notice to the
City suffers a total and permanent disability which results in the
termination of his/her employment prior to the Employment Termination
Date selected in such Notice and does not revoke his/her PLSDO Election,
then the amount of such lump sum cash distribution shall be calculated
by multiplying the monthly retirement benefit provided in Subparagraph
(c)(1) above by the number of whole months which elapsed from the
Pension Lookback Date which the Participant selected in his/her PLSDO
Notice to the last day of the month in which his/her termination of
employment occurs. Further, in the event of the death of a Participant
prior to his/her receipt of a lump sum cash distribution required
by his/her election of the PLSDO, such Participant's surviving
spouse shall have the option of voiding the Participant's election
of the PLSDO, forfeiting the lump sum cash distribution and receiving
the retirement benefits provided by the Plan to the surviving spouse
as though the Participant had never elected the PLSDO. In the event
such Participant's surviving spouse elects to receive the lump
sum cash distribution elected by the Participant prior to his/her
death and in accordance with Subparagraph (c)(2) above, then the monthly
retirement benefit payable to such surviving spouse shall be reduced
in accordance with the deceased Participant's election of a PLSDO
and Subparagraph (c)(1) above.
(g)
Any lump sum cash distribution payable in accordance with this Section 147.10 shall be subject to applicable Federal and State Income tax Regulations and withholding and excise taxes.
(h)
A Participant who elects a PLSDO shall continue to make all required
Participant Contributions to the Plan until his/her selected Employment
Termination Date.
[Ord. 4-2011, passed 1-19-2011; Ord. 23-2016, passed 8-3-2016]
(a)
Funding policy. The Employer shall make contributions to the Pension Fund in accordance with Subsection 147.03(a) and the Association shall invest the Pension Fund in accordance with the terms of the Plan and Act 205.
(b)
Other City funds not liable. So long as the City funds the Plan in
conformance with Act 205, payment of pensions and allowances as provided
under this Plan shall not be a charge on any other fund of the Employer
or account under its control, other than the Fund related to the Police
Pension Plan established hereunder.
(c)
Information to be furnished by the employer. The Employer shall furnish
to the Board such information in the Employer's possession as
the Association requires from time to time to perform its duties under
the Plan.
(d)
Prohibition against diversion of funds:
(1)
Except as provided below and otherwise specifically permitted
by law, it shall be impossible by operation of the Plan or of the
Pension Fund, by termination of either, by power of revocation or
amendment, by the happening of any contingency, by collateral arrangement
or by any other means, for any part of the corpus or income of the
Pension Fund maintained pursuant to the Plan or any Funds contributed
thereto to be used for, or diverted to, purposes other than the exclusive
benefit of Participants, former Participants or their Survivors.
(2)
In the event the Employer shall make an excessive contribution
under a mistake of fact, the Employer may demand repayment of such
excessive contribution at any time within one year following the time
of payment and the trustee or custodian of the Pension Fund shall
return such amount to the Employer within the one year period. Earnings
of the Plan attributable to the contributions may not be returned
to the Employer but any losses attributable thereto must reduce the
amount so returned.
(e)
Participant's rights. This Plan shall not be deemed to constitute
a contract between the Employer and any Participant or to be a consideration
or an inducement for the employment of any Participant or Employee.
Nothing contained in this Plan shall be deemed to give any Participant
or Employee the right to be retained in the service of the Employer
or to interfere with the right of the Employer to discharge any Participant
or Employee at any time regardless of the effect which such discharge
shall have upon the Employee as a Participant in this Plan.
(f)
Anti-alienation provision:
(1)
Subject to the exceptions provided below, no benefit which shall
be payable out of the Pension Fund to any person (including a Participant
or any Survivor) shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, charge, or claim
of any creditor. Any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber, or charge the same shall be void; and no
such benefit shall in any manner be liable for, or subject to, the
debts, contracts, liabilities, engagements, or torts of any such person,
nor shall it be subject to attachment or legal process for or against
such person, and the same shall not be recognized by the Board, except
to such extent as may be required by law.
(2)
Subparagraph (1) shall not apply to a "qualified domestic relations
order" defined in Code Section 414(p), and those other domestic relations
orders permitted to be so treated by the Administrator under the provisions
of the Retirement Equity Act of 1984 or other federal or state law.
The Administrator shall establish a written procedure to determine
the qualified status of domestic relations orders and to administer
distributions under such qualified orders. Further, a former spouse
of a Participant shall not be treated as the spouse or surviving spouse
for any purposes under the Plan.
(g)
Incapacity of recipient of benefits. If any person entitled to receive
benefits shall be physically or mentally incapable of receiving or
acknowledging receipt of any payment of benefits, the Board of Directors,
upon the receipt of satisfactory evidence that such person is so incapacitated
and that another person or institution is maintaining him/her and
that no guardian or committee has been appointed for him/her, may
provide for the payment of benefits hereunder to such person or institution
so maintaining him/her, and any such payments so made shall be deemed
for every purpose to have been made to or for the benefit of such
incapacitated person.
(h)
Ownership of plan assets. Nothing contained herein shall be deemed
to give any Participant or his/her beneficiary any interest in any
specific property of the Plan or any right except to receive such
distributions as are expressly provided for in this Plan.
(i)
Legal action. In the event any claim, suit or proceeding is brought
regarding the Pension Fund and/or the Plan established hereunder to
which the Employer, the Association or the members of the Association
may be a party, and such claim, suit or proceeding is resolved in
favor of the Employer, the Association, or the members of the Association,
they shall be entitled to be reimbursed from the Pension Fund for
any and all costs, attorney's fees, and other expenses pertaining
thereto incurred by them for which they shall have become liable.
(j)
Indemnification of fiduciaries. To the fullest extent allowed by
Act 205, the Employer shall defend and hold harmless Council, the
Board, the Association and their members, and shall indemnify the
same, against any and all claims or liabilities which may be asserted
against any of them by reason of any action or omission in the administration
or operation of the Plan, except in the case of any criminal liability,
fraud or willful wrongdoing.
(k)
Headings. The headings and subheadings of this Plan have been inserted
for convenience of reference and are to be ignored in any construction
of the provisions hereof.
(l)
Gender and number. Wherever any words are used herein in the masculine,
feminine or neuter gender, they shall be construed as though they
were also used in another gender in all cases where they would so
apply, and whenever any words are used herein in the singular or plural
form, they shall be construed as though they were also used in the
other form in all cases where they would so apply.
(m)
Receipt and release for payments. Any payment to a Participant, the
Participant's legal representative, Survivor, or to any guardian
or committee appointed for such Participant or Survivor in accordance
with the provisions of the Plan, shall, to the extent thereof, be
in full satisfaction of all claims hereunder against the Association
and the Employer, either of whom may require such Participant, legal
representative, Survivor, guardian or committee, as a condition precedent
to such payment, to execute a receipt and release thereof in such
form as shall be determined by the Association or the Employer.
(n)
Governing law to prevail over inconsistent plan provisions. The Plan
shall be governed by, and construed in accordance with Act 205 and
the laws of the Commonwealth of Pennsylvania except to the extent
that such laws have been specifically preempted by the Code or other
Federal legislation. Notwithstanding any provision of this Plan to
the contrary, contributions, benefits and service credit with respect
to qualified military service will be provided in accordance with
Section 414(u) of the Internal Revenue Code and regulations duly promulgated
thereunder. The plan and benefits hereunder shall be conformed and
amended to the extent necessary to comply with all applicable laws.
