[HISTORY: Adopted by the Board of Commissioners of the Township of Stowe as indicated in article histories. Amendments noted where applicable.]
[Adopted 9-9-1985 by Ord. No. 687 (Ch. 1, Part 5, of the 1993 Code of Ordinances)]
Pursuant to the provisions of Act 600[1] and any amendments thereto, the Township of Stowe hereby establishes a police pension fund to be funded through the purchase of a group annuity contract or other permissible funding vehicle through the HDH Group, Inc.
[1]
Editor's Note: See 53 P.S. § 767 et seq.
The fund is to be maintained by a charge against each member of the police force, by annual appropriation made by the Township of Stowe, by payment made by the State Treasurer to the Township of Stowe Treasurer, from monies received from taxes paid on premiums by foreign casualty insurance companies for purposes of pension, for policemen, and by gifts, grants, devises, or bequests granted to such pension fund pursuant to the provision of such Act.
Such Police Pension Fund shall be under the direction of the Township of Stowe Board of Commissioners and shall be applied under such regulations as the Board of Commissioners may, by ordinance or resolution, prescribe for the benefit of such members of the Township of Stowe police force as shall receive honorable discharge therefrom by reason of age and service.
The Township of Stowe is hereby authorized to take, by gift, grant, devise or bequest, any money or property real, personal or mixed, in trust of benefit of such funds, and the care, management, investment and disposal of such trust funds or property shall be vested in the Township of Stowe, the person, the agent and the company having the management of such police pension funds, and the said trust funds shall be governed thereby, subject to such directions not inconsistent therewith as the donors of such funds and property may prescribe.
[Amended 3-16-1993 by Ord. No. 753]
The Township of Stowe hereby prescribes a minimum period of total service in the aggregate of 25 years in the Township of Stowe and shall fix the age of the members of the force at 50 years, after which they may retire from active duty, and such members as are retired shall be subject to service, from time to time, as a police reserve in cases of riot, tumult or preservation of the public peace until unfitted for such service, when they may be finally discharged by reason of age or disability. Any member who serves the required number of years as a full-time policeman and reaches his eligible retirement age shall retire immediately upon reaching retirement age. Any member who has reached such eligible retirement age may request the Township of Stowe Board of Commissioners for an extension of full-time employment as a policeman. Such extension may be granted by the Board of Commissioners from year to year.
A. 
Any member of the police force employed by the Township of Stowe who has been a regular appointed employee of the Township of Stowe for a period of at least six months who thereafter shall enter into the military service of the United States shall have credited to his employment record for pension or retirement benefits all of the time spent by him in such military service, if such person returns or has heretofore returned to his employment within six months after his separation from the service.
B. 
Any member of the police force employed by the Township of Stowe may be entitled to receive full service credit for each year of military service or fraction thereof, not to exceed five years, to any member who was not employed by the Township prior to such military service. The amount due for the purchase of credit for military service other than intervening military service shall be computed by applying the average normal cost rate for borough, town, township and regional police pension plans as certified by the Public Employee Retirement Commission, but not to exceed 10%, to the member's average annual rate of compensation over the first three years of municipal service as a full-time police officer and multiplying the result by the number of years or fractional part of a year of creditable, nonintervening military service being purchased, together with interest at the rate of four and 3/4% compounded annually from the date of initial employment as a full-time police officer to the date of payment.
[Added 12-10-2002 by Ord. No. 854]
C. 
Any member of the police force shall be eligible to receive credit for intervening or nonintervening military service as provided in Subsections A and B, provided that he is not entitled to receive, eligible to receive now or in the future or is receiving retirement benefits for such service under a retirement system administered and wholly or partially paid for by any other government agency, with the exception of a member eligible to receive or receiving military retirement pay earned by a combination of active duty and non-active duty with a reserve or national guard component of the armed forces, which retirement pay is payable only upon the attainment of a specified age and period of service under 10 U.S.C. Ch. 67 (relating to retired pay for nonregular service).[1]
[Added 12-10-2002 by Ord. No. 854]
[1]
Editor's Note: See now 10 U.S.C. § 12731 et seq.
A. 
Payments made under the provisions of this article shall not be a charge on any other fund in the treasury of the Township of Stowe or under its control, save the Police Pension Fund herein provided for. The basis for determining any pension payable under this article following the retirement of any member of the force meeting the service and age qualifications of this article shall be as follows:
(1) 
Monthly pension or retirement benefits, other than length-of-service increments, shall be computed at no more than 1/2 of the average monthly salary of such member during the last 36 months of employment. Such pension or retirement benefits for any month shall be computed as a sum of:
(a) 
Any pension benefits from pension plans heretofore established by a private organization or association for the members of the police force.
(b) 
Twenty-five percent of the member's full social security old age insurance benefits, calculated in accordance with the provisions of the Federal Social Security Act,[1] in effect on the date of the member's termination of employment, except that such amount shall be included only upon attainment of the age at which the officer would be eligible to receive full social security old age insurance benefits, and in determining such eligibility and in such amount, only compensation for services actually rendered by the officer and covered by the Police Pension Fund shall be included.
[1]
Editor's Note: See 42 U.S.C. § 301 et seq.
(c) 
Benefits from the Police Pension Fund established pursuant to this Act to the extent necessary to bring the total benefit in any month up to 1/2 the aforesaid monthly average salary; provided, however, that any officer who receives pension or retirement benefits from any plan established at any time pursuant to this Act and who is also entitled to receive social security old age insurance benefits shall not, regardless of when the officer retired from active service, have his pension or retirement benefits offset or reduced by more than 25% of the social security old age insurance benefit which he receives.
B. 
The fund hereby provides for an early retirement benefit. The early retirement benefit shall be provided to a police officer of the police force with 20 or more years of service who terminates employment prior to the completion of superannuation retirement age and service requirements and who files a written application for an early retirement benefit with the Board of Commissioners. The early retirement benefit shall become effective as of the date the application is filed with the Board or the date designated on the application, whichever is later, and shall be the actuarial equivalent of a partial superannuation retirement benefit, calculated as follows:
[Added 12-10-2002 by Ord. No. 854]
(1) 
A partial superannuation retirement benefit shall be determined by applying the percentage that the police officer's years of service bear to the years of service that the police officer would have rendered had he continued to be employed until his superannuation retirement date to the gross pension amount calculated using the monthly average salary during the appropriate period prior to his or her termination of employment.
(2) 
The actuarial equivalent of the partial superannuation retirement benefit shall be determined by actuarially reducing the partial superannuation retirement benefit to reflect that it will commence on the effective date of the early retirement rather than on the date on which the police officer would have completed superannuation age and service requirements. The actuarial reduction shall be calculated using the actuarial assumptions reported in the last actuarial valuation report filed with the Public Employee Retirement Commission under the Act of December 18, 1984 (P.L. 1005, No. 205), known as the "Municipal Pension Plan Funding Standard and Recovery Act."[2]
[2]
Editor's Note: See 53 P.S. § 895.101 et seq.
[Amended 7-11-2000 by Ord. No. 826]
The Township of Stowe hereby prescribes that length of service increments be payable to the member at retirement at the rate of $100 per month at the completion of the 26th year of service.
The Township of Stowe hereby prescribes that cost-of-living allowances shall be payable to retired members; however, such amount shall not exceed the percentage increase in the consumer price index from the year in which the police member last worked; provided further that in no case shall the total police pension benefit exceed 75% of the salary for computing retirement benefits; and provided further that the total cost-of-living increase shall not exceed 30%. No cost-of-living increase shall be granted which would impair the actuarial soundness of the pension fund.
[Amended 12-10-2002 by Ord. No. 854]
A. 
The Township of Stowe hereby prescribes that if a member who is eligible to receive or is receiving retirement benefits dies, the benefit shall be paid to the surviving spouse or, if no spouse survives or if he or she survives and subsequently dies, then the child or children under the age of 18 years or, if attending college, under or attaining the age of 23 years, in the case of a child or children, in the amount of 50% of the pension the member was receiving or would have been receiving had he been retired at the time of his death. Payments to surviving children shall be paid in equal shares. Notwithstanding anything to the contrary, if anyone receives benefits under this section, no other benefits shall be payable from the plan.
B. 
The phrase "attending college" shall mean the eligible children are registered at an accredited institution of higher learning and are carrying a minimum course load of seven credit hours per semester.
C. 
Payments to survivors shall commence the month following the member's date of death and be paid on the same day of the month as that of the deceased member.
A. 
The Township of Stowe hereby prescribes that should a member, before completing his superannuation retirement age and service requirements but after completing 12 years of total service, for reasons other than death, cease to be employed as a police officer by the Township of Stowe Board of Commissioners, he shall be entitled to vest his retirement benefits by filing with the Board of Township Commissioners, within 90 days of the date his employment terminates, a written notice of his intention to vest. Upon reaching the date which would have been his superannuation retirement date if he had continued to be employed as a full-time police officer, he shall be paid a partial superannuation retirement allowance determined by applying the percentage his years of service bear to the years of service which he would have rendered had he continued to work until his superannuation retirement date to the gross pension, using, however, the monthly average salary during the appropriate period prior to his termination of employment. Such pension or retirement benefit for any month shall be the sum of all benefits established in this article and to the extent necessary to bring the total benefit in any month up to his partial superannuation retirement allowance outlined above. The above vesting provision shall remain in effect continuously and up to the time that this provision does not impair the actuarial soundness of the Police Pension Fund.
B. 
To the extent required by law, the survivor of a member who dies after receiving a deferred vested benefit or after eligible to receive a deferred vested benefit will be paid a survivor benefit at the rate of 50% of the deferred vested benefit; however, commencement of payments shall occur no earlier than required by law. Notwithstanding anything to the contrary, if anyone receives benefits under this section, no other benefits shall be payable from the plan.
[Added 12-10-2002 by Ord. No. 854]
Any member of the police force of the Township of Stowe who, for any reason whatsoever, shall be ineligible to receive a pension after having contributed any charges to a police pension fund established pursuant to the provisions of this article, he or his named beneficiary, in the case of death, shall be entitled to a refund of such money paid by him into such fund, plus 2 1/2% interest.
The actuary to be employed by the Township of Stowe with respect to the Police Pension Fund hereby established shall be provided through the HDH Group, Inc., and shall make recommendations as to the amount which shall be contributed annually into the fund in accordance with the provisions of Act 205.[1]
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
[Amended 7-11-2000 by Res. No. 16; 7-11-2000 by Ord. No. 826; 12-10-2002 by Ord. No. 854]
A. 
Each member shall as a requirement of participation in the Police Pension Plan pay regular contributions, by way of payroll deduction, to the Police Pension Plan in an amount equal to 4.25% of the member's compensation.
B. 
The Township may, on an annual basis by ordinance or resolution, reduce or eliminate payments into the Police Pension Plan by members. The reduction or elimination of member contributions shall not permit the return of contributions or any interest or plan earnings to be made to members while actively employed as a police officer.
[Amended 3-16-1993 by Ord. No. 753; 3-16-1993 by Ord. No. 754]
As used in this article, the following terms shall have the meanings indicated:
COMPENSATION
The total remuneration of the member/employee, whether salary or hourly wages, including overtime pay, holiday pay, longevity pay and any other form of remuneration, excluding reimbursement for expenses, paid by the Township/employer for police services rendered.
[Amended 5-17-2001 by Ord. No. 840]
FINAL MONTHLY AVERAGE SALARY
[Amended 5-17-2001 by Ord. No. 840]
A. 
For calculating pension benefits and contributions, shall mean the average monthly salary earned by the member/employee and paid by the Township/employer during the final 36 months immediately preceding termination of active employment. Salary shall include the member's/employee's compensation (as defined above) to which the member/employee is entitled for the rendering of police services but shall exclude for this purpose a single sum or extraordinary payments made which are not directly attributable to active employment during the averaging period, including but not limited to payment for accumulated sick and vacation leave, payment of a longevity bonus, or payment of a back-pay damage award.
B. 
Final monthly average salary shall be calculated by taking into account only those periods during which a member/employee receives salary, as that term is defined in this section or those periods during which workers' compensation benefits are received, if applicable.
FULL-TIME MEMBER
Those persons who are regularly employed to work an average work week of 40 hours or more.
No person participating in a police pension fund established pursuant to the provisions of this article who becomes entitled to receive a benefit therefrom shall be deprived of his right to an equal proportionate share therein upon the basis upon which he first became entitled thereto.
The pension payments herein provided for shall not be subject to attachment, execution, levy, garnishment, or other legal process and shall be payable only to the member or his designated beneficiary and shall not be subject to assignment or transfer.
The procedure hereinbefore set forth expressing the intent to purchase a group annuity contract, or other permissible funding vehicle, or make applications therefore on the lives of the same or other policemen of the Township, from time to time and from year to- year, may be carried into effect with the necessary and desired factual changes required to implement the terms of this article without necessity to pass any new ordinance or resolution authorizing such purchase.
The proper officers of the Township of Stowe are hereby authorized and empowered to execute and deliver on behalf of the Township of Stowe such documents as necessary and proper to effectuate and implement the Police Pension Fund hereby established under the provisions of Act 600 and any amendments thereto.[1]
[1]
Editor's Note: See 53 P.S. § 767 et seq.
[Added 3-16-1993 by Ord. No. 753; amended 12-10-2002 by Ord. No. 854; 10-12-2010 by Ord. No. 935]
A. 
Any member of the police force of the Township who is injured in the line of duty while in the employ of the Township, and is subsequently determined to be permanently disabled by a majority of the Board of Commissioners, shall be entitled to a monthly disability benefit commencing on the first day of the calendar month coincident with or following the date on which the determination of disability is made by the Board of Commissioners.
B. 
The monthly disability benefit shall be calculated at the rate of 50% of the member's salary at the time the disability was incurred, provided that any member who receives benefits for the same injuries under the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.) shall have his disability benefits offset or reduced by the amount of such social security benefits.
C. 
A full-time member of the police force is deemed to be disabled under this section if, as a result of a service related bodily injury, the member is totally unable to perform the duties of a police officer. The determination of permanent disability shall be made by the Board of Commissioners based in part upon the results of medical examinations which may be conducted by one or more physicians or vocational specialists as designated by the Township. Determination by the Social Security Administration that such member of the police force is entitled to disability benefits under the Federal Social Security Act may also be considered by the Board as evidence of permanent disability, although such entitlement is not conclusive.
D. 
A survivor benefit of 100% of the monthly salary of any police officer who dies as a result of his/her duties shall be paid to his/her eligible beneficiary or beneficiaries. A death due to a fatal heart attack or stroke while on duty or not later than 24 hours after participating in a physical training exercise or responding to an emergency is presumed to be a death as a result of the performance of his/her duties. The eligible beneficiary shall continue to receive such monthly payments until there is no eligible beneficiary to receive them. "Eligible beneficiary" means the surviving spouse or the child or children under the age of 18 years, or if attending college, under the age of 23 years, of the police officer who died as a result of the performance of his duty. The survivor benefit provided herein shall be funded directly by the Commonwealth of Pennsylvania. However, the benefit is offset by any pension benefits payable and any workers' compensation benefits payable. Act 51 of 2009[1] does not repeal the general survivor benefit that is payable from an Act 600[2] plan.
[1]
Editor's Note: See 53 P.S. § 891 et seq.
[2]
Editor's Note: See 53 P.S. § 767 et seq.
E. 
The term "salary" as used in this section shall mean the compensation earned by the member in the 12 months immediately preceding the date of disability or the date killed in service, or lesser period if not employed for 12 months. Notwithstanding anything to the contrary, if anyone receives benefits under this section, no other benefits shall be payable from the plan.
[Adopted 3-8-2016 by Ord. No. 992]
A participant may enter the DROP on the first day following the attainment of the later of age 53 and 25 years of service or January 2025. No participant may enter the DROP during the first six months of any calendar year.
A. 
An eligible participant in the plan electing to participate in the DROP program must complete and execute the "DROP election form" prepared by the Stowe Township Chairman and/or pension plan administrator, which shall evidence the DROP participant's participation in the DROP program, the DROP participant's election to forego active membership in the plan and document the DROP participant's rights and obligations under the DROP. The form must be signed by the DROP participant and the Chief Administrative Officer of the plan and submitted to the employer at least 30 days prior to the date on which the DROP participant elects to enter the DROP (election date). The DROP election form shall include an irrevocable notice to the employer by the DROP participant that the DROP participant shall terminate from employment with the employer effective on a specific date not more than three years from the effective date of the DROP participant's entry in the DROP. In addition, all retirement documents required by the plan administrator must be filed and presented to the Stowe Township Board of Commissioners for approval of retirement and commencement of the monthly pension benefit. Once the retirement application has been approved by the Board of Commissioners, it shall become irrevocable. A DROP participation shall become effective the day following his election date.
B. 
After the DROP participant enters the DROP program, contribution to the plan by the participant will cease and the amount of the monthly benefits will be frozen except for any applicable cost-of-living adjustments (COLA) increased awarded to all pension recipients.
C. 
Participants may consult a tax adviser of their choice prior to considering the DROP program, as there may be serious tax implications and/or consequences to participating in the DROP.
After the effective date of the DROP program, the participant shall no longer earn or accrue additional years of services for the pension purposes, including the calculation of any service increment should such a service increment become available to active participants in the plan. The DROP participants shall also forgo any growth in salary after the election date for the purpose of calculating retirement benefits under the plan.
For all plan purposes, service of a DROP participant shall remain as it existed on the effective date of commencement of a participation in the DROP program. Service thereafter shall not be recognized or used for the calculation or determination of any benefit payable by the plan, including any service increments that may be available. The final monthly average salary of the DROP participant for pension calculation purposes shall remain as it existed on the effective date of commencement of participation in the DROP program. Earnings or increases in earnings thereafter shall be recognized or used for the calculation or determination of any benefit payable to the participant and shall increase only as a result of cost-of-living adjustments (COLAs) effective on or after the date of the DROP participant's participation in the DROP.
A. 
The monthly retirement benefits that would have been payable had the DROP participant elected to cease employment and receive a retirement benefit shall, upon the DROP participant commencing participation in the DROP program, be credited on the first day of each month in to a separate ledger account established by the plan administrator to track and accumulate the participant's monthly pension benefits. This account shall be designated the "DROP account." The DROP account shall not contain a guarantee interest rate, but shall be credited with interest at the actual rate earned by the DROP account, but shall not be less than the actual rate earned shall not be less than 0% nor greater than 4.5% per annum, and shall be compounded monthly. The DROP account shall be a segregated account into which each DROP participant's monthly retirement benefit shall be deposited. All earning or losses credited to the DROP account will be included in the final cash settlement. The DROP account shall be invested in a money market fund. All earnings or losses credited to the DROP account will be included in the final case settlement.
B. 
The DROP shall at all timed comply with the annual benefit limitations of IRC s-415 and the regulations thereto.
A DROP participant may withdraw from the DROP program at any time and effectuate a complete retirement from service. No penalty shall be imposed for early termination of DROP participants. However, the DROP participant shall not be permitted to make any withdraws from the DROP account until DROP participation has ended.
A. 
Upon the termination date set forth in the DROP election form or on such date as the DROP participant withdraws or is terminated from the DROP program, if earlier, the retirement benefits payable to the participant shall be paid directly to the participant and shall no longer be credited to the DROP account. Within a period not to exceed 45 days following the actual termination of participant's employment with Stowe Township, the DROP participant or the DROP participant's designated beneficiary, where applicable, shall elect one of the following options: The accumulated balance in the DROP account, less any withholding taxes required to be remitted to the Internal Revenue Service, shall be paid to the DROP participant or his designated surviving beneficiary in a single lump sum payment; or the balance of the DROP participant's DROP account shall be paid within 45 days directly to the custodian of an eligible retirement plan as defined in Section 402(c)(8)(b) of the Internal Revenue Code of 1986 (IRC) or, in the case of an eligible rollover distribution to the surviving spouse of a deceased DROP participant, an eligible retirement plan that is an individual retirement account or an individual retirement annuity as described in IRC Section 402(c)(9). If the DROP participant or designated beneficiary fails to elect a method or payment within 60 days after the DROP participant's termination date, the DROP participant's DROP account shall be paid in a lump sum as provided above. All distribution of the DROP account shall comply with the IRC Section 401(a)(9).
B. 
Under this § 103-31, a distributee may elect to have an eligible rollover distribution paid directly to an eligible retirement plan by the way of direct rollover. For purposes of this section, an "a distribute" includes a DROP participant, a DROP participant survivor as provided by Act 600 of 1956, 53 P.S. § 767 et seq., or, in lieu thereof, the DROP participant's designated beneficiary, and a DROP participant's former spouse is an alternate payee under a qualified domestic relations order. For purposes of this section "eligible rollover distribution" has the meaning given the term by IRC Section 402(f)(2)(A) except that a qualified trust shall be considered an eligible plan only if it accepts that distributee's eligible rollover distribution and, in the case of an eligible rollover distribution to a surviving spouse, an eligible retirement plan is an "individual retirement account" or an "individual retirement annuity" as those terms defined in IRC Section 408(a) and (b).
A. 
A DROP participant's eligibility to be a participant in the DROP terminates upon the death of the DROP participant. If a DROP participant dies on or after the effective date of participation in the DROP but before the first monthly retirement benefit due the DROP participant for that month has been credited to his DROP account, the plan shall pay the monthly retirement benefit as though the DROP participant had not elected DROP participation and had died after the DROP participant's effective date of retirement but before receipt of the DROP participant's first regular retirement benefit. If a DROP participant dies while participating in the DROP and after his monthly retirement benefits have begun to have been credited to his DROP account, the monthly retirement benefit to the DROP participant's DROP account during the month of the DROP participant's death shall be the final monthly retirement benefit from the plan credited to his DROP account.
B. 
Except for those benefits specifically payable as a result of death incurred in the course of performing a hazardous public duty, the survivor of the DROP participant who dies shall not be eligible to receive retirement system death benefits payable in the event of the death of an active member. The DROP participant survivor(s) shall be eligible to receive benefits normally payable in the event of the death of a retired participant.
If a DROP participant becomes eligible for a disability benefit from the plan and terminates employment, the monthly nondisability retirement benefit of the DROP participant shall terminate.
Except for benefits specifically foregone by the DROP participant pursuant to § 103-26, a DROP participant shall be eligible for the employee benefits provided to active employees that is appended to this agreement.
A DROP participant shall be eligible for all preretirement benefits for employees otherwise provided by law, including, but not limited to, the following:
A. 
The Workers Compensation Act [the Act of June 2, 1915 (P.L. 736, No. 338)];[1]
[1]
Editor's Note: See 77 P.S. § 1 et seq.
B. 
The Enforcement Officer Disability Benefits Law [the Law of June 28, 1935 (P.L. 477, No. 193)];[2]
[2]
Editor's Note: See 53 P.S. §§ 637 and 638.
C. 
The Unemployment Compensation Law [the Act of December 5, 1936, Second Sp. Sess., 1937 P.L. 2897, No. 1)];[3]
[3]
Editor's Note: See 43 P.S. § 751 et seq.
D. 
The Emergency and Law Enforcement Personnel Death Benefits Act [the Act of June 24, 1976 (P.L. 424, No. 101)];[4] and
[4]
Editor's Note: See 53 P.S. § 891 et seq.
E. 
The Public Safety Officers' Benefit Act of 1976 (Public Law 94-430, 42 U.S.C. § 90, Stat. 1347).[5]
[5]
Editor's Note: See now 34 U.S.C. § 10281 et seq.
A DROP participant may designate a DROP beneficiary who shall be entitled to apply for and receive the DROP participant's DROP account in the event of the DROP participant's death while participating in the DROP. In the event that a DROP participant does not designate a beneficiary and dies while participating in the DROP, his DROP account will be paid to his survivor(s) as determined under Act 600 of 1956,[1] and if no such survivors exist, then to his estate.
[1]
Editor's Note: See 53 P.S. § 767 et seq.
Any amendment to the DROP shall be consistent with the provisions covering deferred retirement option plans set forth in any applicable collective bargaining agreement or state or federal law and shall be binding upon all future participants who have a balance in their DROP accounts.
Except as provided in this section, the right of a DROP participant to any benefit or right accrued or accruing under the provisions of this Article II and monies in the DROP participant's DROP account are exempt from any state or municipal tax, levy and sale, garnishment, attachment, spouse election or any other process whatsoever. Rights and benefits under this Article II shall be subject to forfeiture as provided by the Public Employee Pension Forfeiture Act [the Act of July 8, 1978 (P.L. 752, No. 140)].[1] Forfeitures under this section or under any other provisions of law may not be applied to increase the benefits that any DROP participant otherwise would receive under this Article II. Rights under this Article II shall be subject to attachment in favor of an alternate payee as set forth in a qualified domestic relations order.
[1]
Editor's Note: See 43 P.S. § 1311 et seq.
A DROP participant's DROP account shall be held in trust for the exclusive benefit of plan participants who are or were DROP participants and for their beneficiary.
The provisions of this Article II shall be severable, and if any of its provisions shall be held to be unconstitutional or illegal, the validity of any of the remaining provisions of this Article II shall not be affected thereby. It is hereby expressly declared as the intent of the Township that this Article II has been adopted as if such unconstitutional or illegal provision or provisions have not been included herein.
If the Auditor General issues a finding of noncompliance with the provisions of Act 44 of 2009[1] that govern this DROP, the Township shall be authorized to reform this Article II to bring in to compliance with the DROP within 90 days of the date the Auditor General's finding becomes final.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.